Arlo Technologies Inc (ARLO)
NYSE:ARLO
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Arlo Technologies
(NYSE:ARLO)
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Rating:69Neutral
Price Target:
$15.00
▲(14.33% Upside)
Action:DowngradedDate:04/08/26
The score is led by improving fundamentals—especially strong recent free cash flow, low leverage, and a profitability turn in 2025—reinforced by constructive 2026 guidance focused on higher-margin services and ARR growth. Offsetting these positives are a demanding valuation (very high P/E) and only mixed technical signals, which reduce near-term risk-adjusted attractiveness.
Positive Factors
Recurring services & ARR expansion
Arlo's ARR and services mix growth indicate a structural shift toward higher-margin, recurring revenue. A rising ARPU, improved LTV:CAC and management guidance targeting >65% services revenue imply more predictable cash flows and stronger margin sustainability over the next 2–6 months.
Negative Factors
Negative product gross margins
Consistent negative product margins force the company to subsidize hardware to build an install base, pressuring consolidated profitability. If services growth slows, hardware losses could materially erode operating margins and cash conversion over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring services & ARR expansion
Arlo's ARR and services mix growth indicate a structural shift toward higher-margin, recurring revenue. A rising ARPU, improved LTV:CAC and management guidance targeting >65% services revenue imply more predictable cash flows and stronger margin sustainability over the next 2–6 months.
Read all positive factors
Arlo Technologies (ARLO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.40B
Dividend YieldN/A
Average Volume (3M)1.53M
Price to Earnings (P/E)97.7
Beta (1Y)1.83
Revenue Growth-2.83%
EPS GrowthN/A
CountryUS
Employees360
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)0.22
Shares Outstanding106,855,415
10 Day Avg. Volume901,338
30 Day Avg. Volume1,531,437
Financial Highlights & Ratios
PEG Ratio-0.67
Price to Book (P/B)11.40
Price to Sales (P/S)2.75
P/FCF Ratio21.79
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue2.38
Enterprise Value/Gross Profit5.42
Enterprise Value/Ebitda68.30
Forecast
1Y Price Target
$23.00Price Target Upside75.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.81
Revenue Forecast (FY)$565.00M
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 sm...
How the Company Makes Money
Arlo primarily makes money through a mix of (1) product sales and (2) subscription and service revenue.
1) Product revenue (hardware): Arlo sells smart security devices such as indoor/outdoor cameras, video doorbells, and related accessories. Re...
Arlo Technologies Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call emphasized broad and material progress: strong revenue and ARR growth, exceptional services expansion and gross-margin improvement, substantial EBITDA and free cash flow growth, successful large product launch, and new strategic partnerships with Samsung, Comcast and ADT that position the company for additional SaaS-led expansion. Key operational challenges remain (negative product gross margins, tariff uncertainty, memory cost pressure and some lower-margin NRE revenue), but management has articulated clear mitigation plans and conservative assumptions in guidance. Overall, positives materially outweigh the limited operational and macro risks discussed.Positive Updates
Record Q4 and Full-Year Revenue
Q4 total revenue of $141.0M (slightly above the high end of guidance) and full-year consolidated revenue of ~$530M, with 2026 revenue guidance of $550M–$580M.
Negative Updates
Product Gross Margin Pressure
Product gross margin remained negative in Q4 (reported ~-14.4% for product), driven in part by legacy product EOL costs and promotional activity; product margin rebound noted versus Q3 (~300 bps improvement) but still a drag on consolidated product results.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Q4 and Full-Year Revenue
Q4 total revenue of $141.0M (slightly above the high end of guidance) and full-year consolidated revenue of ~$530M, with 2026 revenue guidance of $550M–$580M.
Read all positive updates
Company Guidance
Arlo guided Q1 2026 consolidated revenue of $135–$145 million with GAAP EPS of $0.01–$0.07 and non‑GAAP net income per diluted share of $0.17–$0.23; for full‑year 2026 it expects consolidated revenue of $550–$580 million, service revenue greater than 65% of total (service revenue of $375–$385 million), is targeting more than 20% service‑revenue growth, and expects non‑GAAP net income per diluted share of $0.75–$0.85. Management said product margins should rebound from Q4, anticipates continued ARR growth and expanding profitability with ongoing free‑cash‑flow generation, and noted the outlook assumes the 20% tariff structure remains in place pending further clarity.Arlo Technologies Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
74
Positive
Cash Flow
82
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 529.30M | 510.89M | 491.18M | 490.41M | 435.14M |
| Gross Profit | 232.84M | 187.50M | 167.56M | 136.03M | 108.03M |
| EBITDA | 19.60M | -31.69M | -20.24M | -52.11M | -45.05M |
| Net Income | 14.93M | -30.50M | -22.04M | -56.63M | -56.03M |
Balance Sheet | |||||
| Total Assets | 310.55M | 298.40M | 285.54M | 272.20M | 347.49M |
| Cash, Cash Equivalents and Short-Term Investments | 166.43M | 151.45M | 136.50M | 113.72M | 175.75M |
| Total Debt | 6.74M | 18.36M | 17.02M | 23.47M | 26.08M |
| Total Liabilities | 182.71M | 197.49M | 182.26M | 184.51M | 234.84M |
| Stockholders Equity | 127.84M | 100.91M | 103.28M | 87.69M | 112.65M |
Cash Flow | |||||
| Free Cash Flow | 66.90M | 48.62M | 35.45M | -47.97M | -25.46M |
| Operating Cash Flow | 78.72M | 51.31M | 38.30M | -45.96M | -23.20M |
| Investing Cash Flow | 27.75M | 10.84M | -50.69M | -31.77M | 17.73M |
| Financing Cash Flow | -42.07M | -40.77M | -15.14M | -13.94M | -4.97M |
Arlo Technologies Technical Analysis
Negative
13.12
Price Trends
13.33
Negative
13.57
Negative
15.37
Negative
Market Momentum
-0.05
Positive
42.44
Neutral
13.40
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 13.12 is below the 20-day moving average (MA) of 14.04, below the 50-day MA of 13.33, and below the 200-day MA of 15.37, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 42.44 is Neutral, neither overbought nor oversold. The STOCH value of 13.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARLO.
Arlo Technologies Risk Analysis
Arlo Technologies disclosed 58 risk factors in its most recent earnings report. Arlo Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arlo Technologies Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.52B | 27.53 | 27.45% | 1.29% | -2.28% | -9.94% | |
69 Neutral | $1.40B | 97.67 | 12.47% | ― | -2.83% | ― | |
67 Neutral | $70.91M | 28.93 | 12.02% | ― | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $1.07B | -36.39 | -30.45% | ― | 41.61% | -1.76% | |
56 Neutral | $123.59M | 23.99 | 7.38% | ― | 54.35% | 70.17% | |
49 Neutral | $54.87M | -1.01 | -153.81% | ― | 5.50% | 51.32% |
* Industrials Sector Average
ARLO
Arlo Technologies
13.12
4.24
47.75%
SNT
Senstar Technologies
3.04
-0.06
-1.94%
NSSC
Napco Security Technologies
42.75
21.48
101.02%
EVLV
Evolv Technologies Holdings
5.96
2.60
77.38%
BAER
Bridger Aerospace Group Holdings
2.21
0.62
38.99%
KSCP
Knightscope Inc Class A
3.37
0.46
15.81%
Arlo Technologies Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Arlo Technologies Updates Bylaws, Enhancing Corporate Governance Framework
Positive
Apr 7, 2026
On April 3, 2026, Arlo Technologies, Inc.’s board adopted amended and restated bylaws that modernize corporate governance mechanics, expand use of electronic communications, and clarify procedures for stockholder meetings and board and commi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.