Arlo Technologies (ARLO) AI Stock Analysis

• Market Cap: $1.89B
• Dividend Yield: N/A
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: -1.75%
• EPS Growth: 68.19%
• Country: US
• Employees: 360
• Sector: Industrials
• Sector Strength: 83
• Industry: Security & Protection Services
• EPS (TTM): 0.17
• Shares Outstanding: 104,370,650
• 10 Day Avg. Volume: 2,107,074
• 30 Day Avg. Volume: 1,416,500
• 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: 0.91
• Enterprise Value/Revenue: 3.38
• Enterprise Value/Gross Profit: 8.41
• Enterprise Value/Ebitda: -250.12
• 1Y Price Target: $22.42
• Price Target Upside: 35.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 65 Neutral
• Price Target: $18.50 ▲(11.45% Upside)

Arlo Technologies' strong earnings call and technical indicators are the most significant factors driving the score, highlighting robust growth and strategic partnerships. However, financial performance challenges and valuation concerns, such as negative profitability metrics and lack of dividend yield, weigh down the overall score.

Positive Factors

Market Positioning

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.

Revenue Performance

Arlo reported second quarter revenue of $129.4 million compared to an estimate of $122.0 million.

Subscriber Growth

Arlo Technologies demonstrated the ability to secure more paid subscribers leading to revenue outpacing expectations.

Negative Factors

Competition

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

Market Dynamics

Roku (ROKU) has introduced a lineup of security cameras.

Stock Valuation

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. is a leading provider of smart home security products, specializing in wireless security cameras, video doorbells, and other connected devices that enhance home safety and security. Founded in 2014 and headquartered in San Jose, California, Arlo operates primarily in the consumer electronics sector, focusing on innovative technology solutions for both residential and commercial markets. The company's core offerings include high-definition video surveillance, smart alerts, and integration with various smart home ecosystems, making it a prominent player in the growing Internet of Things (IoT) space.

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: Neutral
• Last Price: 16.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARLO, the sentiment is Neutral. The current price of 16.6 is above the 20-day moving average (MA) of 16.48, below the 50-day MA of 16.63, and above the 200-day MA of 12.73, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 50.99 is Neutral, neither overbought nor oversold. The STOCH value of 48.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$1.11B	25.32	27.48%	1.66%	-1.05%	-2.78%
SNT	79 Outperform	$95.41M	65.29	-3.47%	―	―	―
ADT	76 Outperform	$7.07B	12.75	17.13%	2.54%	3.80%	-3.18%
REZI	74 Outperform	$4.75B	64.31	-26.27%	―	20.00%	-547.75%
Sector *	66 Neutral	£2.67B	13.00	3.30%	3.25%	2.40%	-22.21%
ARLO	65 Neutral	$1.89B	―	-6.45%	―	-1.75%	68.19%
EVLV	60 Neutral	$1.21B	―	-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.