Arlo Technologies (NYSE:ARLO) Announces Earnings Results

Key Points

• Arlo Technologies beat Q1 expectations, reporting EPS of $0.28 versus the $0.19 consensus and revenue of $150.38 million versus $139.73 million expected. Revenue rose 26.3% year over year, and the company’s net margin and return on equity were also solid.
• Recurring revenue momentum remains strong, with 318,000 net new paid accounts, paid accounts surpassing 6 million earlier than expected, and annual recurring revenue rising to $357 million. Management also highlighted record subscriptions and services revenue of $90 million.
• Guidance and strategic launches point to continued growth, as Arlo raised Q2 2026 EPS guidance to $0.17-$0.23 and revenue guidance to $145 million-$155 million. The company also noted upcoming partnerships with ADT, Samsung, and Comcast that could expand its market opportunity.

Arlo Technologies (NYSE:ARLO - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.28 earnings per share (EPS) 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 company had revenue of $150.38 million during the quarter, compared to the consensus estimate of $139.73 million. During the same period in the previous year, the company posted $0.15 earnings per share. Arlo Technologies'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 Stock Up 2.3%

Shares of Arlo Technologies stock traded up $0.34 on Friday, reaching $15.24. The company's stock had a trading volume of 4,022,415 shares, compared to its average volume of 1,129,915. The company has a market capitalization of $1.66 billion, a P/E ratio of 56.45 and a beta of 1.60. Arlo Technologies has a 52-week low of $11.05 and a 52-week high of $19.94. The stock has a 50-day moving average price of $14.20 and a 200-day moving average price of $14.24.

Insider Activity

In related news, CFO Kurtis Joseph Binder sold 25,000 shares of the business's stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $15.19, for a total transaction of $379,750.00. Following the completion of the sale, the chief financial officer directly owned 564,885 shares in the company, valued at approximately $8,580,603.15. The trade was a 4.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Brian Busse sold 25,525 shares of the business's stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $13.78, for a total value of $351,734.50. Following the sale, the general counsel owned 583,364 shares of the company's stock, valued at $8,038,755.92. The trade was a 4.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 465,478 shares of company stock worth $6,522,193 over the last three months. 2.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Arlo Technologies

Several large investors have recently made changes to their positions in ARLO. Arrowstreet Capital Limited Partnership increased its position in shares of Arlo Technologies by 778.8% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,884,616 shares of the company's stock worth $31,944,000 after purchasing an additional 1,670,156 shares in the last quarter. Wasatch Advisors LP increased its position in shares of Arlo Technologies by 30.1% during the second quarter. Wasatch Advisors LP now owns 4,678,880 shares of the company's stock worth $79,354,000 after purchasing an additional 1,082,443 shares in the last quarter. Marshall Wace LLP increased its position in shares of Arlo Technologies by 69.1% during the third 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. Goldman Sachs Group Inc. increased its position in shares of Arlo Technologies by 115.1% during the first quarter. Goldman Sachs Group Inc. now owns 1,552,652 shares of the company's stock worth $15,325,000 after purchasing an additional 830,770 shares in the last quarter. Finally, Millennium Management LLC increased its position in shares of Arlo Technologies by 96.4% during the third quarter. Millennium Management LLC now owns 1,230,312 shares of the company's stock worth $20,854,000 after purchasing an additional 604,018 shares in the last quarter. 83.18% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

ARLO has been the subject of a number of recent analyst reports. Raymond James Financial restated an "outperform" rating and issued a $19.00 price objective on shares of Arlo Technologies in a research report on Friday. Weiss Ratings upgraded Arlo Technologies from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, March 6th. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $22.33.

Arlo Technologies announced that its board has approved a share buyback plan on Wednesday, March 4th that allows the company to repurchase $50.00 million in shares. This repurchase authorization allows the company to repurchase up to 3.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board of directors believes its shares are undervalued.

Arlo Technologies News Roundup

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.

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