Arlo Technologies (NYSE:ARLO) Releases Quarterly Earnings Results, Beats Estimates By $0.08 EPS

Arlo Technologies (NYSE:ARLO) issued its quarterly earnings results on Thursday. The company reported $0.28 EPS for the quarter, topping analysts’ consensus estimates of $0.20 by $0.08, FiscalAI reports. Arlo Technologies had a return on equity of 18.66% and a net margin of 5.47%.The business had revenue of $155.94 million for the quarter, compared to analyst estimates of $148.94 million. During the same period last year, the company posted $0.17 earnings per share. Arlo Technologies’s quarterly revenue was up 20.5% compared to the same quarter last year. Arlo Technologies updated its FY 2026 guidance to 0.900-1.000 EPS and its Q3 2026 guidance to 0.170-0.230 EPS.

Here are the key takeaways from Arlo Technologies’ conference call:

• Q2 results set records, with total revenue of $155.9 million, up 21% year over year, service revenue of $93 million, adjusted EBITDA up 70% to $30.6 million, and non-GAAP EPS of $0.28.
• Paid accounts increased by nearly 300,000 to 6.3 million, while improving ARPU, lower churn, stronger renewals, and a 15% rise in account lifetime value to $967 supported subscription momentum.
• Arlo significantly raised its 2026 outlook to $580 million–$600 million in revenue and $0.90–$1.00 in non-GAAP EPS; management also expects Secure 7, a higher-priced subscription tier, and partnerships with ADT and Comcast to support future growth.
• Product gross margin remains structurally negative, at roughly negative mid- to high-single digits or potentially the teens, as Arlo uses hardware promotions to acquire subscribers; Q2 profitability also benefited from an $8 million tariff refund and Q3 is expected to receive another roughly $6 million refund.
• Management plans additional share repurchases after buying back more than $20 million of stock in Q2, while Aloe Care’s Home Helpers deployment and planned care and small-business market tests could create new growth opportunities in 2027.

Arlo Technologies Price Performance

Arlo Technologies stock traded down $0.49 during mid-day trading on Thursday, hitting $15.44. The company’s stock had a trading volume of 1,259,744 shares, compared to its average volume of 1,035,424. The business has a 50 day moving average price of $13.35 and a 200-day moving average price of $13.45. Arlo Technologies has a 12 month low of $11.05 and a 12 month high of $19.94. The stock has a market cap of $1.68 billion, a price-to-earnings ratio of 57.20 and a beta of 1.56.

Insider Transactions at Arlo Technologies

In other news, CFO Kurtis Joseph Binder sold 65,000 shares of the stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $15.70, for a total transaction of $1,020,500.00. Following the completion of the sale, the chief financial officer owned 499,885 shares of the company’s stock, valued at approximately $7,848,194.50. This represents a 11.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 122,775 shares of company stock worth $1,865,639. 2.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Arlo Technologies

Several hedge funds have recently made changes to their positions in the business. Quarry LP boosted its holdings in Arlo Technologies by 42.0% in the third quarter. Quarry LP now owns 2,649 shares of the company’s stock valued at $45,000 after acquiring an additional 783 shares in the last quarter. Strs Ohio bought a new position in Arlo Technologies in the first quarter worth about $66,000. Quadrant Capital Group LLC bought a new position in Arlo Technologies in the third quarter worth about $86,000. EverSource Wealth Advisors LLC lifted its holdings in Arlo Technologies by 1,682.9% in the second quarter. EverSource Wealth Advisors LLC now owns 5,616 shares of the company’s stock worth $95,000 after buying an additional 5,301 shares during the period. Finally, Quantbot Technologies LP bought a new stake in Arlo Technologies during the 2nd quarter valued at approximately $132,000. 83.18% of the stock is owned by hedge funds and other institutional investors.

Key Arlo Technologies News

Here are the key news stories impacting Arlo Technologies this week:

• Positive Sentiment: Q2 results beat estimates: Arlo reported adjusted earnings of $0.28 per share, above the $0.20 consensus and up from $0.17 a year earlier. Revenue increased 20.5% year over year to $155.94 million, exceeding estimates of $148.94 million. Arlo Technologies Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management raised the outlook above Wall Street expectations: Third-quarter EPS guidance of $0.17–$0.23 and revenue guidance of $140 million–$150 million exceed consensus estimates of $0.14 and $133.2 million, respectively. Full-year 2026 EPS guidance of $0.90–$1.00 and revenue guidance of $580 million–$600 million also surpass consensus estimates of $0.71 and $565.7 million. This points to continued demand for Arlo’s smart-home security products and services.
• Neutral Sentiment: Profitability remains positive but relatively modest: Arlo reported a 5.47% net margin and an 18.66% return on equity. The earnings beat and higher guidance improve the fundamental picture, although the stock’s valuation remains elevated at roughly 57 times earnings based on the provided data. Arlo Technologies Earnings Report and Conference Call
• Negative Sentiment: CFO selling could pressure sentiment: CFO Kurtis Joseph Binder sold 27,297 shares for approximately $423,649 and another 13,971 shares for approximately $209,705. Both transactions were made under a pre-arranged Rule 10b5-1 plan, reducing their significance as a signal of deteriorating business prospects, but the sales may nevertheless encourage profit-taking.

Analyst Ratings Changes

A number of research analysts have recently commented on ARLO shares. Oppenheimer initiated coverage on Arlo Technologies in a research report on Monday, May 18th. They set an “outperform” rating and a $20.00 price target on the stock. William Blair initiated coverage on Arlo Technologies in a research note on Tuesday, July 7th. They issued an “outperform” rating on the stock. Piper Sandler assumed coverage on shares of Arlo Technologies in a report on Sunday, July 26th. They set an “overweight” rating and a $17.00 price objective on the stock. Raymond James Financial reiterated an “outperform” rating and set a $19.00 target price on shares of Arlo Technologies in a research report on Friday, May 8th. Finally, UBS Group set a $20.00 target price on shares of Arlo Technologies in a research note on Monday, May 18th. Six analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $20.67.

About Arlo Technologies

Arlo Technologies, Inc (NYSE: ARLO) is a provider of smart home security products and services designed for residential and small business customers. The company offers a portfolio of wireless and Wi-Fi-enabled security cameras, video doorbells, smart lighting solutions, and associated accessories. Arlo integrates advanced video analytics, motion detection, cloud storage, and two-way audio capabilities to deliver end-to-end security and monitoring solutions accessible through mobile applications and web interfaces.

Founded as a division of Netgear, Inc in 2014 and spun off as an independent public company in 2018, Arlo Technologies has established a presence in North America, Europe, Australia and parts of Asia.