Arlo Technologies (ARLO) AI Stock Analysis

• Market Cap: $1.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.84
• Revenue Growth: -1.75%
• EPS Growth: 68.19%
• Country: US
• Employees: 360
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.16
• Shares Outstanding: 104,370,650
• 10 Day Avg. Volume: 1,192,961
• 30 Day Avg. Volume: 1,038,866
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 3.38
• Enterprise Value/Gross Profit: 8.41
• Enterprise Value/Ebitda: -250.12
• 1Y Price Target: $23.50
• Price Target Upside: 38.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $17.50 ▲(3.31% Upside)

Arlo Technologies' overall stock score reflects strong service revenue growth and strategic partnerships, which are positive indicators for future performance. However, ongoing profitability challenges, bearish technical indicators, and a negative P/E ratio weigh down the score. The company's strategic shift and partnerships offer potential upside, but current financial and valuation metrics present significant risks.

Positive Factors

Service Revenue Growth

The strong growth in service revenue indicates a successful shift towards a services-first business model, enhancing recurring revenue and financial stability.

Strategic Partnerships

The partnership with ADT, a major player in security, is likely to enhance market reach and drive future revenue growth, strengthening competitive positioning.

Subscription Growth

The significant increase in subscriptions boosts recurring revenue and indicates strong customer retention and product adoption, supporting long-term growth.

Negative Factors

Decline in Product Revenue

The decline in product revenue suggests challenges in maintaining hardware sales, which could impact overall revenue growth if not offset by service revenue.

Profitability Challenges

Ongoing profitability issues, indicated by negative margins, highlight operational inefficiencies that could hinder financial performance if not addressed.

Negative Cash Flow Growth

Negative cash flow growth suggests potential difficulties in sustaining cash generation, which could limit investment capacity and financial flexibility.

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 through multiple streams, primarily from the sale of its hardware products, including security cameras and accessories. A significant portion of its income also comes from subscription services, which offer customers advanced features such as cloud storage, professional monitoring, and enhanced security options. These subscription plans, which include Arlo Smart, create a recurring revenue model that bolsters the company's financial stability. Additionally, Arlo has established partnerships with other technology and retail companies, expanding its market reach and enhancing its product offerings, further contributing to its earnings.

Arlo Technologies Financial Statement Overview

Summary

Arlo Technologies shows robust revenue growth and improved cash flow management, but persistent net losses and negative profit margins remain challenges. The strong balance sheet and improving debt metrics provide a stable foundation for future growth.

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	507.71M	510.89M	491.18M	490.41M	435.14M	357.15M
Gross Profit	204.07M	187.50M	167.56M	136.03M	108.03M	55.39M
EBITDA	-6.86M	-31.69M	-20.24M	-50.88M	-45.05M	-94.66M
Net Income	-7.01M	-30.50M	-22.04M	-56.63M	-56.03M	-101.25M
Balance Sheet
Total Assets	319.74M	298.40M	285.54M	272.20M	347.49M	413.97M
Cash, Cash Equivalents and Short-Term Investments	160.40M	151.45M	136.50M	113.72M	175.75M	206.12M
Total Debt	16.60M	24.04M	17.02M	23.47M	26.08M	29.43M
Total Liabilities	201.47M	197.49M	182.26M	184.51M	234.84M	280.20M
Stockholders Equity	118.27M	100.91M	103.28M	87.69M	112.65M	133.77M
Cash Flow
Free Cash Flow	56.97M	48.62M	35.45M	-47.97M	-25.46M	-50.42M
Operating Cash Flow	64.79M	51.31M	38.30M	-45.96M	-23.20M	-46.53M
Investing Cash Flow	-25.56M	10.84M	-50.69M	-31.77M	17.73M	-3.98M
Financing Cash Flow	-34.53M	-40.77M	-15.14M	-13.94M	-4.97M	-23.00K

Arlo Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARLO, the sentiment is Negative. The current price of 16.94 is below the 20-day moving average (MA) of 18.23, below the 50-day MA of 17.82, and above the 200-day MA of 14.50, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 38.30 is Neutral, neither overbought nor oversold. The STOCH value of 9.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARLO.

Arlo Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	81 Outperform	$1.58B	36.15	25.03%	1.30%	-2.28%	-9.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SNT	63 Neutral	$112.43M	―	―	―	―	―
ARLO	58 Neutral	$1.85B	―	-6.45%	―	-1.75%	68.19%
BAER	54 Neutral	$92.73M	―	-1.79%	―	72.69%	65.51%
EVLV	51 Neutral	$1.25B	―	-71.94%	―	35.63%	-335.37%
KSCP	38 Underperform	$44.19M	―	-236.56%	―	-6.61%	40.20%

Arlo Technologies Corporate Events

Arlo Technologies Reports Strong Q3 2025 Results

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.

Arlo Technologies’ Earnings Call Highlights Growth and Strategy

Arlo Technologies’ recent earnings call painted a positive picture of the company’s financial health and strategic direction. The sentiment was largely optimistic, underscored by strong revenue growth, increased profitability, and strategic partnerships. Despite facing challenges such as declining product revenue and tariff impacts, Arlo’s focus on subscriptions and services has been a key driver of its impressive financial performance.

Arlo Technologies Achieves Record Growth in Q2 2025

Arlo Technologies, Inc. is a prominent smart home security platform company known for its advanced security solutions, including AI-powered analytics and cloud services, which provide users with real-time protection and connectivity.