Arlo Technologies (NYSE:ARLO) Posts Earnings Results, Beats Estimates By $0.06 EPS

Arlo Technologies (NYSE:ARLO) issued its earnings results on Thursday. The company reported $0.22 earnings per share for the quarter, beating analysts’ consensus estimates of $0.16 by $0.06, FiscalAI reports. The firm had revenue of $141.30 million for the quarter, compared to analyst estimates of $135.57 million. Arlo Technologies had a net margin of 2.82% and a return on equity of 11.01%. The company’s quarterly revenue was up 16.2% on a year-over-year basis. During the same quarter last year, the business posted $0.10 earnings per share. Arlo Technologies updated its Q1 2026 guidance to 0.170-0.230 EPS.

Here are the key takeaways from Arlo Technologies’ conference call:

• Arlo materially beat guidance in Q4 and FY‑2025 — Q4 revenue $141M, Q4 adjusted EBITDA $23M (+138% YoY), Q4 non‑GAAP EPS $0.22, FY‑2025 non‑GAAP EPS $0.70 — and guided 2026 revenue to $550M–$580M with non‑GAAP EPS of $0.75–$0.85.
• The subscription/services engine is the growth driver — services were $316M in 2025 (60% of revenue), Q4 services $89M (+~40% YoY), ARR $330M (+28% YoY), monthly churn ~1% (99% retention), ARPU $15.30, LTV ~$917 and LTV:CAC ~4.0, with service gross margin ≈84%.
• New strategic partnerships could be transformational — Arlo will power Samsung’s SmartThings Safe Premium, has a major Comcast/Xfinity agreement, and is integrating with ADT; management expects these to begin contributing in 2026 and materially ramp in 2027+.
• Board-approved capital allocation supports shareholder returns and growth — management repurchased ~$45.5M in 2025, approved an additional $50M buyback, invested in Origin AI, and plans continued organic R&D plus targeted M&A.
• Risks to margins and timing remain — management is conservatively assuming the 20% tariff structure will persist amid legal uncertainty, Q4 included ~$4M of lower‑margin NRE revenue, and memory cost pressures exist (though described as manageable), which could weigh on near‑term margins or cash flow.

Arlo Technologies Price Performance

NYSE:ARLO opened at $15.74 on Friday. Arlo Technologies has a one year low of $7.84 and a one year high of $19.94. The company has a market cap of $1.67 billion, a PE ratio of 121.09 and a beta of 1.66. The firm has a 50-day moving average of $13.07 and a 200-day moving average of $15.32.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on ARLO shares. BWS Financial reissued a “buy” rating and set a $26.00 price target on shares of Arlo Technologies in a research note on Tuesday, November 11th. Weiss Ratings downgraded shares of Arlo Technologies from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, February 20th. Finally, Zacks Research cut shares of Arlo Technologies from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 6th. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Arlo Technologies has a consensus rating of “Hold” and an average target price of $23.33.

Arlo Technologies News Summary

Here are the key news stories impacting Arlo Technologies this week:

• Positive Sentiment: Q4 beat: Arlo reported $0.22 EPS vs. $0.16 expected and revenue of $141.3M vs. ~$135.6M expected, driving the immediate positive reaction. Zacks: ARLO Q4 Earnings
• Positive Sentiment: Subscription & ARR acceleration: Subscription sales surged ~39% y/y with ARR and subscriptions up ~30%, and management highlighted a large improvement in non‑GAAP gross margins — evidence that recurring revenue is lifting profitability. BusinessWire: Q4 & Full-Year Results
• Positive Sentiment: Raised near-term guide: Arlo gave Q1 FY2026 EPS guidance of $0.170–$0.230 (consensus ~$0.12) and revenue guidance above Street forecasts, signaling confidence in demand and margin trends. MarketBeat: Guidance & Call
• Neutral Sentiment: Earnings call & transcript highlight strategy: Management emphasized product roadmap, privacy positioning and subscription bundling as growth drivers — items that support the thesis but will take time to fully monetize. Yahoo: Q4 Transcript
• Neutral Sentiment: Analyst previews and coverage: Several outlets flagged the company’s “privacy edge” narrative heading into earnings—interesting for differentiation but not an immediate financial catalyst. Investing.com: Privacy Angle
• Negative Sentiment: Valuation and profitability caveats: Trailing P/E is extremely high and reported net margin/ROE remain modest (net margin ~0.8%, ROE ~2%), while some consensus figures still show a negative full‑year EPS view—risks if subscription growth slows. MarketBeat: Stock Metrics

Insider Buying and Selling

In other Arlo Technologies news, CFO Kurtis Joseph Binder sold 55,043 shares of the firm’s stock in a transaction on Friday, January 9th. The stock was sold at an average price of $13.69, for a total transaction of $753,538.67. Following the transaction, the chief financial officer directly owned 460,970 shares in the company, valued at approximately $6,310,679.30. This trade represents a 10.67% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, General Counsel Brian Busse sold 31,407 shares of the business’s stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $12.29, for a total transaction of $385,992.03. Following the transaction, the general counsel owned 552,850 shares in the company, valued at approximately $6,794,526.50. This trade represents a 5.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 684,286 shares of company stock worth $9,202,544. 5.20% of the stock is owned by corporate insiders.

Institutional Trading of Arlo Technologies

A number of large investors have recently added to or reduced their stakes in the stock. Invesco Ltd. grew its position in shares of Arlo Technologies by 27.7% during the 4th quarter. Invesco Ltd. now owns 452,697 shares of the company’s stock valued at $6,333,000 after acquiring an additional 98,269 shares during the period. Mackenzie Financial Corp lifted its stake in Arlo Technologies by 17.4% in the fourth quarter. Mackenzie Financial Corp now owns 88,651 shares of the company’s stock valued at $1,230,000 after purchasing an additional 13,167 shares during the last quarter. XTX Topco Ltd bought a new position in Arlo Technologies during the fourth quarter valued at $1,776,000. Susquehanna Fundamental Investments LLC increased its position in Arlo Technologies by 12.3% in the fourth quarter. Susquehanna Fundamental Investments LLC now owns 96,008 shares of the company’s stock worth $1,343,000 after buying an additional 10,507 shares during the last quarter. Finally, Numerai GP LLC bought a new stake in shares of Arlo Technologies in the fourth quarter valued at $404,000. Hedge funds and other institutional investors own 83.18% of the company’s stock.

About Arlo Technologies

Arlo Technologies, Inc (NYSE: ARLO) is a provider of smart home security products and services designed for residential and small business customers. The company offers a portfolio of wireless and Wi-Fi-enabled security cameras, video doorbells, smart lighting solutions, and associated accessories. Arlo integrates advanced video analytics, motion detection, cloud storage, and two-way audio capabilities to deliver end-to-end security and monitoring solutions accessible through mobile applications and web interfaces.

Founded as a division of Netgear, Inc in 2014 and spun off as an independent public company in 2018, Arlo Technologies has established a presence in North America, Europe, Australia and parts of Asia.