Arlo Technologies ( (ARLO) ) has released its Q3 earnings. Here is a breakdown of the information Arlo Technologies presented to its investors.
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Arlo Technologies, Inc., headquartered in Carlsbad, California, is a prominent player in the smart home security industry, offering advanced security solutions powered by AI and cloud services. The company is known for its innovative wireless security cameras and subscription services like Arlo Secure and Arlo Safe.
In its third-quarter earnings report for 2025, Arlo Technologies showcased significant growth, with annual recurring revenue (ARR) reaching $323 million, marking a 33.8% increase year-over-year. The company also reported record subscriptions and services revenue of approximately $80 million, a 29.2% rise from the previous year, and achieved a record non-GAAP subscriptions and services gross margin of 85.1%.
Key financial highlights include an adjusted EBITDA of $17 million and a margin of 12.2%, alongside a record GAAP earnings per share (EPS) of $0.07 and non-GAAP EPS of $0.16. The company ended the quarter with $165.5 million in cash and short-term investments, reflecting a $19 million increase year-over-year. Additionally, cumulative paid accounts grew by 27.4% to 5.4 million.
Looking ahead, Arlo Technologies is optimistic about its growth prospects, driven by the launch of its refreshed product portfolio and the AI-driven Arlo Secure 6 platform. The company is well-positioned for the upcoming holiday season and anticipates continued growth in subscriptions and services revenue into 2026.