Arlo Technologies, Inc.
- Open
- 12.85
- Day high
- 13.45
- Day low
- 12.74
- Prev close
- 13.08
- Volume
- 1.3M
- Mkt cap
- $1.4B
- P/E (TTM)
- 46.2
- EPS (TTM)
- $0.29
- P/B
- 9.1
- P/S
- 2.6
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$1.7M over the last 3 months (0 open-market buys, 4 sales)
- 🏛Institutions accumulating (13F)
Arlo Technologies, Inc. (ARLO) is a Industrials company listed on NYSE. The stock is down 19% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 4 sales (SEC Form 4).
Arlo Technologies, Inc. (ARLO) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ARLO earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $0.19 | $0.28 | +47.4% | $150M | +7.6% |
| Nov 6, 2025 | $0.15 | $0.16 | +6.7% | $140M | +2.9% |
| Aug 7, 2025 | $0.16 | $0.17 | +6.3% | $129M | -4.1% |
| May 8, 2025 | $0.12 | $0.15 | +25.0% | $119M | +0.6% |
| Feb 27, 2025 | $0.10 | $0.10 | +0.0% | $122M | +0.2% |
| Nov 7, 2024 | $0.10 | $0.11 | +10.0% | $138M | +13.4% |
| May 9, 2024 | $0.09 | $0.09 | +0.0% | $124M | +0.7% |
| Feb 29, 2024 | $0.08 | $0.11 | +37.5% | $135M | +0.4% |
| Nov 9, 2023 | $0.06 | $0.09 | +50.0% | $130M | -3.4% |
| May 11, 2023 | $-0.05 | $0.01 | +120.0% | $111M | +5.8% |
| Mar 7, 2023 | $-0.11 | $-0.04 | +63.6% | $119M | +10.3% |
| Aug 9, 2022 | $-0.06 | $0.01 | +116.7% | $119M | +7.8% |
ARLO insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 6, 2026 | Binder Kurtis Josephofficer: CHIEF FINANCIAL OFFICER | Sell | 16,507 | $12.83 |
| Jun 23, 2026 | Rothstein Amy Mdirector | Sell | 5,260 | $13.02 |
| Jun 22, 2026 | Faison Ralph Edirector | Grant | 14,931 | — |
| Jun 22, 2026 | Fallon Catriona Mdirector | Grant | 14,931 | — |
| Jun 22, 2026 | Rothstein Amy Mdirector | Grant | 14,931 | — |
| Jun 22, 2026 | Aggarwal Prashantdirector | Grant | 14,931 | — |
| Jun 22, 2026 | Summers Gradydirector | Grant | 14,931 | — |
| Jun 22, 2026 | Carter Miller Jocelyndirector | Grant | 14,931 | — |
| May 11, 2026 | Binder Kurtis Josephofficer: CHIEF FINANCIAL OFFICER | Sell | 65,000 | $15.70 |
| Apr 21, 2026 | Binder Kurtis Josephofficer: CHIEF FINANCIAL OFFICER | Sell | 25,000 | $15.19 |
| Apr 7, 2026 | Binder Kurtis Josephofficer: CHIEF FINANCIAL OFFICER | Sell | 25,000 | $13.99 |
| Mar 12, 2026 | Busse Brianofficer: GENERAL COUNSEL | Sell | 25,525 | $13.78 |
| Mar 12, 2026 | Binder Kurtis Josephofficer: CHIEF FINANCIAL OFFICER | Sell | 179,419 | $13.78 |
| Mar 12, 2026 | MCRAE MATTHEW BLAKEdirector, officer: CEO | Option | 288,824 | — |
| Mar 12, 2026 | MCRAE MATTHEW BLAKEdirector, officer: CEO | Sell | 153,433 | $13.78 |
Source: ARLO SEC Form 4 filings, latest Jul 6, 2026. For informational purposes only — not investment advice.
See the full ARLO insider & 13F page →Arlo Technologies, Inc. company profile
Overview
Arlo Technologies, Inc. (NYSE:ARLO) is a cloud-based smart home security company founded in 2018 as a spin-off from Netgear. Headquartered in Carlsbad, California, the company has transformed from a traditional hardware manufacturer into a services-first business focused on subscription-based security solutions. Arlo operates globally across the Americas, Europe, the Middle East, Africa, and Asia Pacific regions, serving both consumer and commercial markets with its integrated platform of smart cameras, cloud infrastructure, and mobile applications.
Business
Arlo operates in the smart home security industry, providing a comprehensive ecosystem of wireless security cameras, cloud-based video storage, and AI-powered monitoring services. The company's core offering centers around Arlo Secure, a subscription service that combines cloud storage, advanced AI detection capabilities, and emergency response features with various smart connected devices. The product portfolio includes multiple camera lines designed for different use cases. The Arlo Pro series represents the premium tier with features like integrated spotlights, color night vision, and two-way audio. The Arlo Essential series targets price-conscious consumers with basic security functionality. Specialized products include the Arlo Go LTE-enabled cameras for remote locations, Arlo Video Doorbell for front door monitoring, and Arlo Baby monitors with air quality sensors. The business operates through two primary segments: 1. Product sales (approximately 42% of revenue) encompassing hardware devices and accessories, and 2. Services and subscriptions (approximately 58% of revenue) including cloud storage plans, AI-powered detection features, and emergency response services. The services segment has grown rapidly, with subscription revenue increasing over 20% annually as the company transitions from a hardware-centric to a recurring revenue model. Arlo's platform differentiates itself through advanced artificial intelligence capabilities that can distinguish between people, vehicles, animals, and packages, reducing false alerts. The Arlo Secure 6 platform introduces third-party device integration, enhanced AI event descriptions, and threat assessment capabilities, positioning the company as a comprehensive smart home security hub rather than just a camera provider.
Revenue model
Arlo generates revenue through two primary channels: product sales and subscription services. Hardware sales include security cameras, doorbells, accessories, and mounting equipment sold through major retailers like Walmart, Best Buy, and Amazon, as well as through wireless carriers, security solution providers, and the company's direct-to-consumer website. Products typically range from entry-level Essential cameras around $100 to premium Pro series devices exceeding $300. The more strategic revenue stream comes from Arlo Secure subscriptions, which provide cloud video storage, AI-powered detection features, and emergency response services. Subscription plans are tiered, with basic plans starting around $3-5 monthly per camera and premium plans reaching $15-20 monthly for unlimited cameras and advanced features. The company has achieved an Average Revenue Per User (ARPU) of approximately $13.48, with newer subscribers showing ARPU exceeding $14. Several factors influence Arlo's profitability margins. Positive drivers include the shift toward higher-margin subscription services (83% gross margins), economies of scale in cloud infrastructure, and premium feature adoption driving ARPU expansion. The company benefits from network effects as customers with multiple devices tend to subscribe to higher-tier plans. Strategic partnerships with insurance companies like Allstate create new customer acquisition channels and potential revenue sharing opportunities. Margin pressures come from intense competition in the hardware market, requiring aggressive promotional pricing to drive household penetration. Manufacturing costs are subject to component price volatility and potential tariff impacts, as most devices are produced in Asia. Customer acquisition costs through retail channels and digital marketing represent ongoing investments. The company must balance hardware pricing to drive subscriber growth while maintaining acceptable product margins, often accepting near-zero hardware margins to maximize long-term subscription value.
Competitive moat
Arlo's competitive moat is moderate and primarily built around its integrated ecosystem and data network effects. The company's strongest defensive position lies in its installed base of over 5 million subscribers and the switching costs associated with replacing an entire security system. Once customers invest in Arlo cameras and establish monitoring routines, they face inconvenience and additional costs to migrate to competing platforms. The company's proprietary AI algorithms, trained on millions of hours of video data from its user base, create a modest technical advantage in reducing false alerts and improving detection accuracy. Arlo's cloud infrastructure and mobile app integration provide a seamless user experience that becomes more valuable as customers add devices and features. Strategic partnerships with insurance companies and emergency response services add unique value propositions not easily replicated by pure hardware competitors. However, Arlo's moat faces significant challenges. The smart home security market is intensely competitive, with well-funded rivals including Amazon's Ring, Google's Nest, and traditional security companies like ADT expanding into DIY solutions. Large technology platforms have substantial advantages in AI development, cloud infrastructure costs, and customer acquisition through their existing ecosystems. The hardware component of Arlo's business is particularly vulnerable to commoditization, as camera technology becomes increasingly standardized and manufacturing barriers remain low. The company's subscription model, while providing recurring revenue, is not unique in the industry. Competitors offer similar cloud storage and AI features, making customer retention dependent on execution rather than structural advantages. Arlo's relatively small scale compared to technology giants limits its ability to invest in cutting-edge AI research and infrastructure improvements at the pace of larger competitors.
Risks & safety
Arlo demonstrates reasonable financial stability with manageable near-term risks, though profitability remains elusive. • **Liquidity position**: $84 million cash with $73 million net current assets provides adequate short-term cushion • **Debt levels**: Low debt-to-equity ratio of 0.17 indicates minimal leverage risk • **Cash flow**: Positive free cash flow of $28 million in Q1 2025 shows operational improvement • **Burn rate**: Near breakeven with minimal net losses (-$0.8 million in Q1 2025) versus historical losses • **Valuation metrics**: Trading at 9.8x book value appears elevated for a marginally profitable company • **Revenue multiple**: Enterprise value represents reasonable multiple given 20%+ subscription growth • **Profitability trajectory**: Approaching sustainable profitability with services margin expansion • **Other considerations**: Subscription model provides revenue visibility; tariff exposure manageable due to services focus; competitive pressures on hardware margins require ongoing promotional spending
Recent development
Over the past three years, Arlo has executed a fundamental business model transformation from hardware-focused to services-first operations. The company achieved its target of reaching 5 million paid subscribers ahead of schedule, with subscription revenue now representing 58% of total revenue compared to less than 30% in 2022. This shift has dramatically improved gross margins, with services achieving 83% margins versus low single-digit hardware margins. The technology platform has evolved significantly with the launch of Arlo Secure 5 and the upcoming Arlo Secure 6. These platforms introduce advanced AI capabilities including custom private models, person and vehicle recognition, threat assessment, and third-party device integration. The company has simplified its subscription structure to two tiers (Plus and Premier) to reduce customer confusion and drive premium plan adoption. Strategic partnerships have become increasingly important, with renewed five-year agreements with Verisure and expanded relationships with Allstate insurance covering 6 million home insurance customers. These partnerships provide new customer acquisition channels and validate Arlo's expansion into adjacent markets like InsureTech. The company is exploring advertising capabilities within its platform and considering new revenue streams from data insights while maintaining privacy commitments. Product development has focused on cost optimization and market expansion. The Essential product line targets price-sensitive consumers while maintaining subscription conversion rates. Arlo is preparing what management describes as the "largest product launch in company history" for the 2025 holiday season, suggesting significant hardware innovation. The company has also implemented a $50 million share buyback program, indicating confidence in its transformation progress.
ARLO company profile · for informational purposes only — not investment advice.
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