Arlo Technologies: Product Momentum, Subscription Growth, and Strong Balance Sheet Underpin Buy Rating and $26 Target

BWS Financial analyst Hamed Khorsand has maintained their bullish stance on ARLO stock, giving a Buy rating today.

Hamed Khorsand has given his Buy rating due to a combination of factors tied to Arlo Technologies’ product momentum and subscription growth outlook. He notes that Arlo finished 2025 by launching multiple new devices and running an assertive holiday marketing campaign, which he expects will translate into a meaningful increase in paid subscribers by early 2026. The company intentionally discounted and cleared older inventory ahead of these launches, positioning its product lineup more favorably for future sales. With about 5.4 million paying users at the end of the third quarter of 2025, Khorsand anticipates continued subscriber expansion, reflecting the growing appeal and stickiness of Arlo’s ecosystem.

In his analysis, Khorsand projects that Arlo will add roughly 190,000 paid accounts in the last quarter of 2025 and around 250,000 more in the first quarter of 2026, underscoring confidence in the company’s recurring revenue trajectory. He maintains his existing estimates for the fourth quarter of 2025 and makes modest upward revisions beyond that period, suggesting that the recent strategic moves should support better-than-previously-expected performance. The company’s strong balance sheet, with substantial cash and no debt, further supports his positive stance by providing financial flexibility and reducing risk. Collectively, these elements lead him to see the current share price as attractive relative to his $26 twelve-month target, justifying a Buy recommendation.

According to TipRanks, Khorsand is a 5-star analyst with an average return of 13.2% and a 57.26% success rate. Khorsand covers the Technology sector, focusing on stocks such as Innodata, Adeia, and Xperi Inc.