Arlo Technologies (NYSE:ARLO) Issues Earnings Results, Beats Expectations By $0.09 EPS

Arlo Technologies (NYSE:ARLO) posted its quarterly earnings results on Thursday. The company reported $0.28 earnings per share for the quarter, beating analysts’ consensus estimates of $0.19 by $0.09, FiscalAI reports. Arlo Technologies had a return on equity of 19.94% and a net margin of 5.47%.The business had revenue of $150.38 million for the quarter, compared to analysts’ expectations of $139.73 million. During the same quarter in the prior year, the business earned $0.15 EPS. The firm’s revenue for the quarter was up 26.3% on a year-over-year basis. Arlo Technologies updated its Q2 2026 guidance to 0.17-0.230 EPS.

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

• Arlo reported a record Q1 with total revenue of $150.4M (up 26% YoY) and non-GAAP EPS of $0.28 (up 86% YoY), coming in above the top end of guidance.
• Subscription momentum drove net additions of 318,000 paid accounts (surpassing 6 million paid accounts earlier than expected), ARPU of $15.60, and ARR of $357M (up 29% YoY).
• Profitability and cash generation improved materially: consolidated non-GAAP gross margin reached ~50% (up 460 bps), adjusted EBITDA was $30.4M (85% YoY increase), and free cash flow was $25.4M with $167.5M in cash and short-term investments.
• Strategic partnerships are advancing with imminent commercial launches for ADT and Samsung and a Comcast integration expected to materially impact 2027, expanding Arlo’s addressable market.
• Supply-cost headwinds remain: tariffs created a ~430 bps gross margin drag and memory costs have risen sharply (management cites ~160% increases), with tariff-relief eligibility and timing still uncertain.

Arlo Technologies Price Performance

NYSE ARLO traded up $0.34 on Friday, reaching $15.24. The stock had a trading volume of 4,022,415 shares, compared to its average volume of 1,129,915. The firm has a fifty day moving average of $14.20 and a two-hundred day moving average of $14.24. Arlo Technologies has a 1-year low of $11.05 and a 1-year high of $19.94. The company has a market cap of $1.66 billion, a P/E ratio of 56.45 and a beta of 1.60.

Arlo Technologies declared that its Board of Directors has approved a share repurchase plan on Wednesday, March 4th that permits the company to repurchase $50.00 million in outstanding shares. This repurchase authorization permits the company to purchase up to 3.1% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Analyst Ratings Changes

A number of research firms recently weighed in on ARLO. Weiss Ratings upgraded Arlo Technologies from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, March 6th. Raymond James Financial restated an “outperform” rating and issued a $19.00 price target on shares of Arlo Technologies in a research note on Friday. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $22.33.

Insider Buying and Selling at Arlo Technologies

In other Arlo Technologies news, CEO Matthew Blake Mcrae sold 153,433 shares of the company’s stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $13.78, for a total value of $2,114,306.74. Following the transaction, the chief executive officer directly owned 1,168,866 shares of the company’s stock, valued at $16,106,973.48. This represents a 11.60% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, General Counsel Brian Busse sold 25,525 shares of the company’s stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $13.78, for a total value of $351,734.50. Following the completion of the transaction, the general counsel directly owned 583,364 shares in the company, valued at approximately $8,038,755.92. This represents a 4.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 465,478 shares of company stock valued at $6,522,193 in the last ninety days. 2.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Arlo Technologies

Several large investors have recently modified their holdings of the stock. Wasatch Advisors LP grew its holdings in shares of Arlo Technologies by 17.7% during the 3rd quarter. Wasatch Advisors LP now owns 5,505,467 shares of the company’s stock worth $93,318,000 after purchasing an additional 826,587 shares in the last quarter. State Street Corp grew its holdings in shares of Arlo Technologies by 5.3% during the 2nd quarter. State Street Corp now owns 4,272,925 shares of the company’s stock worth $72,469,000 after purchasing an additional 215,867 shares in the last quarter. Marshall Wace LLP grew its holdings in shares of Arlo Technologies by 69.1% during the 3rd quarter. Marshall Wace LLP now owns 2,554,457 shares of the company’s stock worth $43,298,000 after purchasing an additional 1,043,854 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of Arlo Technologies by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 2,391,732 shares of the company’s stock worth $33,467,000 after purchasing an additional 28,861 shares in the last quarter. Finally, Renaissance Technologies LLC grew its holdings in shares of Arlo Technologies by 24.7% during the 4th quarter. Renaissance Technologies LLC now owns 2,289,759 shares of the company’s stock worth $32,034,000 after purchasing an additional 454,000 shares in the last quarter. 83.18% of the stock is owned by institutional investors and hedge funds.

Arlo Technologies News Summary

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

• Positive Sentiment: Arlo reported Q1 EPS of $0.28, beating the consensus estimate of $0.19, while revenue of $150.38 million also came in above expectations. Arlo Reports First Quarter 2026 Results
• Positive Sentiment: Management said subscriptions and services revenue reached a record $90 million and annual recurring revenue rose to $357 million, both up about 30%, signaling strong recurring revenue momentum. Arlo Reports First Quarter 2026 Results
• Positive Sentiment: Arlo also issued Q2 guidance for EPS of $0.17 to $0.23 and revenue of $145 million to $155 million, which brackets or exceeds analyst estimates and suggests the company expects continued solid execution. Arlo Reports First Quarter 2026 Results
• Neutral Sentiment: Analysts and commentary around the report focused on key metrics and the earnings call transcript, but no major downside issue stood out in the available updates. Arlo Technologies, Inc. (ARLO) Q1 2026 Earnings Call Transcript

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.