Arlo Technologies (ARLO) AI Stock Analysis

• Market Cap: $1.82B
• Dividend Yield: N/A
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: 0.27%
• EPS Growth: -18.75%
• Country: US
• Employees: 360
• Sector: Industrials
• Sector Strength: 86
• Industry: Security & Protection Services
• EPS (TTM): 0.15
• Shares Outstanding: 103,400,955
• 10 Day Avg. Volume: 1,727,936
• 30 Day Avg. Volume: 1,245,444
• PEG Ratio: 1.22
• Price to Book (P/B): 3.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.37
• Enterprise Value/Market Cap: 0.13
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 1.27
• Enterprise Value/Ebitda: -2.34
• 1Y Price Target: $20.00
• Price Target Upside: 13.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: $18.00 ▲(2.27%Upside)

Arlo Technologies' stock score is driven by strong technical indicators and positive earnings call sentiment, reflecting robust growth in subscriptions and services. However, profitability challenges and a high P/E ratio weigh on the overall score.

Positive Factors

Market Position and Strategy

ARLO is positioning itself as a leading SaaS provider in the growing DIY home security market, which could reward investors with strengthening profitability and recurring revenue growth.

Profitability and Cash Flow

The growth in service revenue has resulted in ARLO becoming free cash flow positive.

Recurring Revenue Growth

Arlo Technologies surpassing $300 million in annualized recurring revenue puts the Company on a faster growth trajectory than forecasted.

Negative Factors

Competitive Threats

Arlo Technologies (ARLO) has a new competitor poised to take share in an already crowded space.

Hardware Pricing Strategy

Arlo Technologies has managed to maintain an elite LTV/CAC ratio of 4:1 despite negative gross margins from its hardware pricing strategy.

Stock Valuation Concerns

Arlo Technologies' stock has yet to benefit from the continued gains the company has achieved in having a recurring revenue.

Arlo Technologies Business Overview & Revenue Model

Company Description

Arlo Technologies, Inc., together with its subsidiaries, provides a cloud-based platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions. It combines an intelligent cloud infrastructure and mobile app with various smart connected devices. The company offers Arlo essential indoor camera; Arlo Go 2 LTE/Wi-Fi security camera; Arlo Q and Arlo Q Plus, an indoor wired solution that allows users to monitor their surroundings; and Arlo Go, an LTE-enabled wire-free camera that provides untethered mobile security. It also provides Arlo Baby, a baby monitor with air quality and temperature sensors, motion and audio detection, and advanced night vision; Arlo Chime that pairs with the Arlo Video Doorbell to play a variety of ringtones or act as a siren; Arlo Ultra, an integrated spotlight and crystal-clear two-way audio with advanced noise cancellations camera; Arlo Pro 3, an integrated spotlight with color night vision camera; Arlo Video Doorbell delivers direct-to-mobile video calls and personalized alerts; Arlo Floodlight Camera, a wire-free variant LED camera, as well as Arlo Essential Spotlight; Arlo Ultra 2; Arlo Essential XL Spotlight; Arlo Essential Wire-Free Video Doorbell; and Arlo Pro 4 Wire-Free Spotlight. In addition, it provides Arlo accessories, such as charging accessories, device mounts, and device skins. Further, it offers Arlo app for iOS and Android devices that allow users to connect various devices; and Arlo Secure, with coverage for unlimited cameras and an enhanced emergency response solutions. The company offers its products through retailers, wholesale distributors, broadcast channels, wireless carriers, and security solution providers, as well as through its website. Arlo Technologies, Inc. was incorporated in 2018 and is headquartered in Carlsbad, California.

How the Company Makes Money

Arlo Technologies generates revenue primarily through the sale of its smart home security products, including wireless cameras, doorbells, and related accessories. The company also earns money from subscription services that provide users with enhanced features such as cloud storage, advanced AI capabilities, and emergency response services. Key revenue streams include direct product sales through retail partners and online platforms, as well as recurring revenue from subscriptions to Arlo's various service plans. Strategic partnerships with major retailers and technology companies further bolster Arlo's market reach and contribute to its earnings.

Arlo Technologies Financial Statement Overview

Summary

Arlo Technologies shows robust revenue growth and improved cash flow management, with a strong balance sheet and better debt metrics. However, persistent net losses and negative profit margins remain challenges for achieving profitability.

Income Statement

Arlo Technologies has shown consistent revenue growth over the years, with improvements in gross profit margins, despite persistent net losses. The TTM data indicates a slight decline in revenue compared to the previous annual period and negative EBIT and EBITDA margins. While the company is making strides in reducing its EBIT and EBITDA losses, the net profit margin remains negative, indicating ongoing challenges in achieving profitability.

Balance Sheet

The company maintains a strong equity base with a debt-to-equity ratio that has improved over time, suggesting a low reliance on debt financing. The equity ratio is stable, reflecting a solid financial position despite the negative net income. Return on equity remains negative due to ongoing net losses, but the reduction in total liabilities over time is a positive indicator of financial stability.

Cash Flow

Arlo Technologies has shown significant improvement in cash flow management, with a positive free cash flow and operating cash flow in the TTM period. The operating cash flow to net income ratio is strong, indicating efficient cash conversion despite net losses. The free cash flow to net income ratio is also positive, reflecting effective capital expenditure management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	505.75M	510.89M	491.18M	490.41M	435.14M	357.15M
Gross Profit	192.85M	187.50M	167.56M	136.03M	108.03M	55.39M
EBITDA	-23.32M	-31.69M	-20.24M	-50.88M	-45.05M	-94.66M
Net Income	-21.70M	-30.50M	-22.04M	-56.63M	-56.03M	-101.25M
Balance Sheet
Total Assets	296.57M	298.40M	285.54M	272.20M	347.49M	413.97M
Cash, Cash Equivalents and Short-Term Investments	153.11M	151.45M	136.50M	113.72M	175.75M	206.12M
Total Debt	17.44M	18.36M	17.02M	23.47M	21.47M	25.03M
Total Liabilities	193.20M	197.49M	182.26M	184.51M	234.84M	280.20M
Stockholders Equity	103.37M	100.91M	103.28M	87.69M	112.65M	133.77M
Cash Flow
Free Cash Flow	57.28M	48.62M	35.45M	-47.97M	-25.46M	-50.42M
Operating Cash Flow	62.42M	51.31M	38.30M	-45.96M	-23.20M	-46.53M
Investing Cash Flow	-3.07M	10.84M	-50.69M	-31.77M	17.73M	-3.98M
Financing Cash Flow	-41.58M	-40.77M	-15.14M	-13.94M	-4.97M	-23.00K

Arlo Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARLO, the sentiment is Positive. The current price of 17.6 is above the 20-day moving average (MA) of 17.03, above the 50-day MA of 14.18, and above the 200-day MA of 12.02, indicating a bullish trend. The MACD of 0.82 indicates Positive momentum. The RSI at 69.86 is Neutral, neither overbought nor oversold. The STOCH value of 63.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARLO.

Arlo Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	79 Outperform	$1.07B	24.54	27.48%	1.86%	-1.05%	-2.78%
SNT	79 Outperform	$117.57M	65.29	-3.47%	―	―	―
REZI	77 Outperform	$3.58B	60.92	2.58%	―	14.02%	-69.91%
ARLO	73 Outperform	$1.82B	―	-21.34%	―	0.27%	-18.75%
ADT	72 Outperform	$7.09B	14.49	16.26%	2.60%	-5.44%	-16.05%
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%
EVLV	54 Neutral	$987.26M	―	-33.80%	―	36.53%	52.99%

Arlo Technologies Corporate Events

Arlo Technologies Holds Annual Stockholders Meeting

On June 20, 2025, Arlo Technologies held its Annual Meeting of Stockholders where key decisions were made. Stockholders elected Ralph Faison and Jocelyn Carter-Miller as Class I directors to serve until 2028, ratified Deloitte & Touche LLP as the independent registered public accounting firm for 2025, and approved the compensation of named executive officers.

The most recent analyst rating on (ARLO) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Arlo Technologies stock, see the ARLO Stock Forecast page.