Arlo Technologies (ARLO) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.1 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +34.39%. A quarter ago, it was expected that this maker of smart connected devices would post earnings of $0.15 per share when it actually produced earnings of $0.16, delivering a surprise of +6.67%.Over the last ...

Arlo Technologies (NYSE:ARLO) Q4 2025 Earnings call February 26, 2026 05:00 PM ET Company ParticipantsHamed Khorsand - Principal and Director of ResearchKurt Binder - COO and CFOMatthew McRae - CEOTahmin Clarke - Head of Investor RelationsConference Call ParticipantsJacob Stephan - Senior Research AnalystLogan Katzmar - AnalystScott Searle - Managing Director and Senior Research AnalystNone - AnalystOperatorLadies and gentlemen, thank you for standing by. At this time, all participants are in a listen-only ...

Arlo Technologies (NYSE:ARLO) Q4 2025 Earnings call February 26, 2026 05:00 PM ET Company ParticipantsHamed Khorsand - Principal and Director of ResearchKurt Binder - COO and CFOMatthew McRae - CEOThamin Clark - Director of Investor RelationsConference Call ParticipantsJacob Stephan - Senior Research AnalystScott Searle - Managing Director and Senior Research AnalystNone - AnalystNone - AnalystOperatorLadies and gentlemen, thank you for standing by. At this time, all participants are in a listen-only mode. ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $141 million, slightly above the high end of guidance, driven by product launches and strong service performance [5] - Service revenue reached $89 million, accounting for 63% of total revenue and growing 39% year-over-year [5][19] - Annual recurring revenue (ARR) increased to $330 million, up 28% year-over-year [5][18] - Q4 EBITDA was $23 million, a 138% increase year-over-year, resulting in non-GAAP EPS of $0.22, exceeding guidance [6][25] - Non-GAAP gross margin improved to 47.8%, up over 1,000 basis points year-over-year [11][21] Business Line Data and Key Metrics Changes - SaaS performance metrics showed a monthly churn rate of 1%, indicating a 99% retention rate [9] - Average monthly revenue per user (ARPU) grew to $15.30, with subscriptions generating a 94% gross margin [10][20] - Lifetime value (LTV) per subscriber increased to $917, up 23% from the previous year [10] Market Data and Key Metrics Changes - Retail point of sale (POS) volume increased by 23%, aligning with the growth in paid accounts [17] - The installed base of paid accounts grew to 5.7 million, a 24% increase year-over-year [17] Company Strategy and Development Direction - The company aims to continue faster-than-market growth in retail and direct channels, with plans to launch new retailers [29] - A robust pipeline of new features and AI capabilities is set to roll out, enhancing the service offerings [30] - The company is exploring new market segments, including small business and aging-in-place markets, to expand its total addressable market (TAM) [31][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate global volatility and execute its strategic plan [32] - The company expects Q1 2026 consolidated revenue to be between $135 million and $145 million, with full-year revenue projected at $550 million to $580 million [40] - Service revenue for 2026 is anticipated to be between $375 million and $385 million, with a focus on improving customer retention and conversion [41] Other Important Information - The company reported a free cash flow of $66.9 million for 2025, up 38% year-over-year, with a free cash flow margin of 12.6% [25][26] - The company has approved an additional $50 million for share repurchase, reflecting confidence in its valuation [36] Q&A Session Summary Question: Insights on strategic partnerships with Comcast and ADT - Management indicated that the ADT partnership is progressing well, with technical integration completed and go-to-market planning underway [51] - The Comcast partnership is expected to take 9 to 12 months for integration, with significant potential for revenue growth [53] Question: New hardware products and market opportunities - The company plans to refresh its product lineup and explore new form factors, with a focus on the smart home and small business markets [55][57] Question: Contribution of service revenue and strategic accounts - Management noted that service revenue growth is primarily driven by core business expansion, with additional contributions expected from strategic partnerships [71]

Investor Presentation February 26, 2026 ©2026 – ALL RIGHTS RESERVED SAFE HARBOR DISCLOSURE This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words "anticipate," "expect," "believe," "will," "may," "should," "estimate," "project," "outlook," "forecast" or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. ...

NEWS RELEASE Arlo Reports Fourth Quarter and Full Year 2025 Results Annual recurring revenue (ARR) ended at $330 million, growing 28% year over year (1) Q4 2025 Financial Summary Full Year 2025 Financial Summary Page 1 • Ended with ARR of $330.5 million, growing 28.4% year over year. (1) • Record subscriptions and services revenue of $89.4 million, an increase of 39.4% year over year, accounting for 63.3% of total revenues. • GAAP subscriptions and services gross margin of 82.8% and non-GAAP subscriptions a ...

Core Insights - Arlo Technologies (ARLO) is set to report its fourth-quarter 2025 results on February 26, with expected revenues between $131 million and $141 million and non-GAAP earnings per share ranging from 13 cents to 19 cents [1][9] - The Zacks Consensus Estimate for fourth-quarter 2025 revenues is $135.56 million, indicating an 11.5% growth compared to the same quarter last year [1] - The consensus for earnings per share is 16 cents, reflecting a 60% year-over-year increase [2] Revenue and Earnings Expectations - Arlo Technologies anticipates a revenue range of $131 million to $141 million for Q4 2025, with earnings per share projected between 13 to 19 cents [1][9] - The Zacks Consensus Estimate for revenues stands at $135.56 million, suggesting an 11.5% increase from the previous year [1] Performance Drivers - The company's services-first strategy is expected to enhance annual recurring revenues, supported by high-margin subscription offerings like Arlo Secure [3] - A growing subscriber base and the adoption of AI-powered premium features are likely to boost Annual Recurring Revenue and operating leverage [3] - The Secure 6 platform, featuring advanced capabilities, is anticipated to improve customer engagement and conversion rates [4] Product Developments - Arlo Technologies has undergone its largest product refresh, introducing over 100 new SKUs across its camera lines, which has contributed to a 30% year-over-year unit sales growth in the third quarter [5] - The introduction of Pan-Tilt Zoom designs has reduced bill of materials (BOM) costs by 20-35% [5] Challenges - The global tariff environment is expected to negatively impact Arlo's performance, as reliance on overseas manufacturing may lead to increased import duties and higher product costs [6] - Tariff volatility is likely to constrain overall margin expansion in the upcoming quarter [6] Earnings Prediction Model - Current analysis indicates that Arlo Technologies does not have a strong prediction for an earnings beat, with an Earnings ESP of 0.00% and a Zacks Rank of 3 [7]

Core Viewpoint - Arlo Technologies (ARLO) has consistently beaten earnings estimates and is well-positioned for future earnings reports, particularly with a recent average surprise of 6.46% over the last two quarters [1]. Earnings Performance - In the most recent quarter, Arlo Technologies reported earnings of $0.16 per share, exceeding the expected $0.15 per share, resulting in a surprise of 6.67% [2]. - For the previous quarter, the company reported $0.17 per share against an estimate of $0.16 per share, achieving a surprise of 6.25% [2]. Earnings Estimates and Predictions - Recent estimates for Arlo Technologies have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5]. - The Zacks Earnings ESP for Arlo Technologies is currently +4.48%, suggesting that analysts are optimistic about the company's earnings prospects [8]. Zacks Rank and Success Rate - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high probability of beating consensus estimates, with historical data indicating that nearly 70% of stocks with this combination achieve positive surprises [6][8].

Core Viewpoint - The market is starting 2026 positively, with the S&P 500 maintaining last year's gains, but a significant rotation in large-cap stocks is anticipated this year [1]. Group 1 - The S&P 500 is holding onto last year's gains as 2026 begins [1]. - Investors are advised to prepare for a sizable rotation in the market, particularly among large-cap stocks [1]. - Gary Alexander has extensive experience in technology sectors, both on Wall Street and in Silicon Valley, influencing current industry themes [1].

Core Insights - Arlo Technologies reported an insider sale by Brian Busse, the general counsel, involving the exercise of 50,000 options and the sale of 18,841 shares, indicating ongoing drawdown in executive holdings [1][9] Transaction Summary - The transaction involved the sale of 18,841 shares valued at approximately $257,920.10, with a post-transaction direct ownership of 551,014 shares valued at $7,482,770.12 [2] - The shares were sold at a weighted average price of $13.69, close to the market close price of $13.58 on January 9 [2][6] Company Overview - As of January 9, Arlo Technologies had a market capitalization of $1.42 billion, with a trailing twelve months (TTM) revenue of $509.57 million and a net income of $4.30 million [4] Business Model and Strategy - Arlo Technologies offers a range of smart security devices and generates revenue through device sales and recurring subscription services, targeting residential and small business customers across North America, EMEA, and Asia Pacific [7][8] - The company focuses on delivering user-friendly, connected security products with value-added subscription services, leveraging a cloud-first approach and integrated hardware-software solutions [8] Financial Performance - Arlo's annual recurring revenue reached $323 million, reflecting a nearly 34% year-over-year increase, with subscriptions and services contributing to over half of total revenue [10] - The gross margin for subscriptions and services improved to approximately 85%, up 770 basis points year-over-year, while adjusted EBITDA increased by 50% to about $17 million [10]