Arlo Technologies, Inc. Q1 FY2026 earnings call

1. Partnership with Samsung: Samsung will roll out a safety services widget and application button across devices, starting on mobile phones and tablets, with a small subscription component. It's the first partnership deal where the rolled-out part is purely service and software. The SmartThings platform from Samsung is broadening, and Matter platform support by Samsung opens up additional partnership opportunities. A small co-branded subscription service will be rolled out soon.
2. Comcast and other strategics: Comcast will be more commercial in 2027, with integration going through 2026 and likely launching in early 2027 to impact 2027. The company has a strong trajectory in 2026 and 2027, with a pipeline of partners beyond current announcements.
3. Small business market: Still consumer-focused across channels, but starting to explore the small business market, building a technology stack and solutions for it, with a potential market size of tens of billions of dollars, fragmented, and likely to leverage partners to address this market in 2027.

1. ADT and Samsung will launch relatively soon, ramp through the second half of 2026, and have full year impact in 2027.
2. Comcast integration goes through 2026, likely launches in early 2027 and impacts 2027.
3. Expect to announce one or two small to medium size or medium to large partners in the next 12 to 18 months, with revenue from these potentially in the second half of 2027 and leading into 2028.
4. Starting to explore the small business market, with potential formality in 2027.

1. Memory cost: Memory is a small percentage of BOM costs, but cost has gone up, seen as a modest increase in overall CAC.
2. Tariffs: Placed claims for tariff relief shortly after the portal was open, still evaluating eligibility, with uncertainty around processing and timing.

Q: How are you guys looking at the business customers, like enterprise customers versus general consumer plans, maybe how you expect those to grow over the next year or two with the partnerships and without?

A: Still very consumer-focused across all channels including partnerships. When looking at partnerships like with ADT and Comcast, they're primarily targeting additional consumer households initially. Have started to look at building a technology stack and solutions for the small business space, with potential formality in 2027 and leveraging partners to address the fragmented small business market.

Q: How do you, will you get, do you anticipate getting tariff relief? How do you view tariffs?

A: View tariff cost as a portion of overall CAC and have managed it well. Actually placed claims for tariff relief shortly after the portal was open, still in the process of evaluating eligibility, with uncertainty around processing and timing.