Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Arlo Technologies (ARLO) , which belongs to the Zacks Internet - Software industry, could be a great candidate to consider.This maker of smart connected devices has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 6.46%.For the most recent quarter, ...

Core Viewpoint - The market is starting 2026 positively, with the S&P 500 maintaining last year's gains, but a significant rotation in large-cap stocks is anticipated this year [1]. Group 1 - The S&P 500 is holding onto last year's gains as 2026 begins [1]. - Investors are advised to prepare for a sizable rotation in the market, particularly among large-cap stocks [1]. - Gary Alexander has extensive experience in technology sectors, both on Wall Street and in Silicon Valley, influencing current industry themes [1].

Core Insights - Arlo Technologies reported an insider sale by Brian Busse, the general counsel, involving the exercise of 50,000 options and the sale of 18,841 shares, indicating ongoing drawdown in executive holdings [1][9] Transaction Summary - The transaction involved the sale of 18,841 shares valued at approximately $257,920.10, with a post-transaction direct ownership of 551,014 shares valued at $7,482,770.12 [2] - The shares were sold at a weighted average price of $13.69, close to the market close price of $13.58 on January 9 [2][6] Company Overview - As of January 9, Arlo Technologies had a market capitalization of $1.42 billion, with a trailing twelve months (TTM) revenue of $509.57 million and a net income of $4.30 million [4] Business Model and Strategy - Arlo Technologies offers a range of smart security devices and generates revenue through device sales and recurring subscription services, targeting residential and small business customers across North America, EMEA, and Asia Pacific [7][8] - The company focuses on delivering user-friendly, connected security products with value-added subscription services, leveraging a cloud-first approach and integrated hardware-software solutions [8] Financial Performance - Arlo's annual recurring revenue reached $323 million, reflecting a nearly 34% year-over-year increase, with subscriptions and services contributing to over half of total revenue [10] - The gross margin for subscriptions and services improved to approximately 85%, up 770 basis points year-over-year, while adjusted EBITDA increased by 50% to about $17 million [10]

Core Insights - Arlo Technologies is recognized for its innovative security solutions, including wireless cameras and smart home products, and competes in the security and smart home industry [1] Stock Transactions - CEO Matthew Blake McRae sold 90,089 shares of Arlo's common stock at approximately $13.69 each on January 9, 2026, totaling around $1.23 million, which represents an 8.13% decrease in his ownership [2] - This sale follows previous transactions where McRae sold 257,242 shares at an average price of $14.28 on December 1, totaling approximately $3.67 million, and 18,645 shares at an average price of $17.86 on November 4 [3] Current Stock Performance - As of the latest data, Arlo's stock price is $13.58, reflecting a decrease of 1.88% or $0.26, with a trading range between $13.52 and $13.94 for the day [4] - Over the past year, Arlo's stock has reached a high of $19.94 and a low of $7.84, with a market capitalization of about $1.4 billion and a trading volume of 1,158,613 shares [4]

Arlo Smart Security SaaS Platform to Power New Samsung SmartThings Service Offering for Added Peace of Mind and ProtectionSAN JOSE, Calif., Jan. 5, 2026 /PRNewswire/ -- Arlo Technologies, Inc. (NYSE: ARLO), a leading provider of smart home security services, announced today it has entered into an agreement with Samsung SmartThings to bring new capabilities from Arlo's Smart Security Platform to SmartThings users. Together, the two technology leaders will collaborate to address the growing consumer demand f ...

Group 1 - Arlo Technologies (ARLO) has shown a year-to-date performance increase of approximately 25.6%, outperforming the average return of 25.2% for the Computer and Technology sector [4] - The Zacks Consensus Estimate for ARLO's full-year earnings has increased by 228.6% over the past quarter, indicating a positive trend in analyst sentiment [4] - Arlo Technologies is ranked 1 (Strong Buy) in the Zacks Rank system, which focuses on earnings estimates and revisions [3] Group 2 - Arlo Technologies is part of the Internet - Software industry, which consists of 168 companies and is currently ranked 53 in the Zacks Industry Rank [6] - The Internet - Software industry has gained an average of 9.7% year-to-date, with ARLO outperforming this average [6] - In comparison, Lam Research (LRCX), another stock in the Computer and Technology sector, has returned 138.5% year-to-date and is part of the Electronics - Semiconductors industry, which is ranked 90 [5][6]

Core Insights - The smart home security market is experiencing a significant transformation as AI evolves from a mere buzzword to a key business driver [2] Company Summaries - **ADT**: Operates a traditional monitoring model with 6.5 million customers, generating $5.11 billion in annual revenue, including $1.10 billion from recurring monitoring subscriptions. The company is focusing on the ADT+ platform, integrating AI through a partnership with Google [3][7] - **Resideo Technologies**: Offers hardware solutions under brands like Honeywell Home and First Alert, with annual revenue of $7.44 billion. The company focuses on HVAC controls and home safety equipment rather than monitoring services [4][9] - **Arlo Technologies**: Specializes in security cameras with Wi-Fi and cellular connectivity, generating $510 million in annual revenue from camera sales and optional cloud storage subscriptions [5] - **Google**: Functions as both a competitor and collaborator in the smart home market, with its Nest product line competing in hardware while partnering with ADT to provide AI capabilities. Google's involvement is relatively minor compared to its overall business [6] Business Model Comparisons - Revenue stability is a key differentiator among these companies. ADT's monitoring business yields predictable monthly income with 25.7% operating margins, resulting in $2.66 billion in EBITDA over the past year [7] - Google's stock has increased by 60% year-to-date, while ADT's stock has risen by 21%, indicating market preference for AI providers over traditional monitoring operators [8] - ADT's recurring monitoring generates $1.10 billion with 25.7% operating margins, while Arlo's $510 million revenue results in only 0.84% profit margins. ADT's earnings growth of 24.7% surpasses its revenue growth of 4.4%, suggesting that AI enhances profitability more than expansion [8]

Summary of Arlo Technologies Conference Call Company Overview - **Company**: Arlo Technologies - **Industry**: Connected devices, specifically in the DIY security market - **Background**: Originally a product line within NETGEAR, spun out as an independent company in 2018 [4][7] Key Points and Arguments Market Opportunity and Transformation - Arlo started as a hardware product family with a focus on DIY security solutions, transitioning to a services-first model [7][8] - The company has over 5 million paid subscribers globally, with annual recurring revenue (ARR) exceeding $320 million [8][68] - 60% of Arlo's revenues now come from paid accounts, showcasing a shift from hardware to subscription services [8][68] Financial Performance - Gross margins have improved significantly, with blended gross margin rising from negative 20% to over 40% [13][14] - Operating income has turned positive, and the company is now GAAP EPS positive [14] - The average revenue per user (ARPU) is currently $15.20, with potential for significant pricing power compared to traditional security services that average $50-$70 per month [68][69] Product Launch and Consumer Demand - Recently launched the largest product refresh in company history with 109 SKUs, shipping 800,000 units in 6-8 weeks [26][28] - The product refresh included improvements in specifications and a reduction in cost of goods sold (COGS) by 20%-30% [26] - Consumer behavior shows resilience, with a churn rate of only 1%, the lowest in three to four years [34] Competitive Landscape - Major competitors include Amazon and smaller entities, with Arlo positioned as a trusted partner due to its focus on data privacy and security [38][39] - Anticipation of potential consolidation in the market due to government actions against certain brands, which could provide growth opportunities for Arlo [40][42] Partnership Strategy - Partnerships have become a significant revenue stream, with 50% of revenue now coming from B2B partnerships and direct sales [55] - Notable partnerships include Verisure in Europe and ADT in the U.S., with expectations to grow subscriber numbers significantly through these channels [56][57] - The company is exploring additional strategic partnerships to further enhance growth [58] Future Growth and Sustainability - Long-term goal to reach $700 million in ARR, with plans for continued growth in services and potential new pricing strategies [68][69] - The company is looking into adjacent markets such as small business security, which represent significant untapped opportunities [78] Additional Important Insights - The transition from hardware to a service-oriented model has allowed Arlo to leverage operational efficiencies, with OPEX growth remaining low despite increasing subscriber numbers [20] - The company is focused on maintaining a balance between hardware sales and subscription growth, ensuring a diversified revenue stream [66] - Future pricing strategies may include the introduction of new service tiers based on consumer demand and behavior [70][71]

Group 1: Company Overview - Arlo Technologies (ARLO) is part of the Computer and Technology group, which consists of 603 companies and currently ranks 1 within the Zacks Sector Rank [2] - The Zacks Rank system, which emphasizes earnings estimates and revisions, currently gives Arlo Technologies a rank of 1 (Strong Buy) [3] Group 2: Performance Metrics - The Zacks Consensus Estimate for Arlo Technologies' full-year earnings has increased by 228.6% in the past quarter, indicating improved analyst sentiment and a positive earnings outlook [4] - Year-to-date, Arlo Technologies has returned approximately 28.6%, outperforming the average gain of 28.1% for the Computer and Technology group [4] Group 3: Industry Context - Arlo Technologies belongs to the Internet - Software industry, which includes 168 stocks and currently ranks 64 in the Zacks Industry Rank; this industry has gained about 8.2% year-to-date, indicating that ARLO is performing better than its peers [6] - In contrast, ASML, another outperforming stock in the Computer and Technology sector, belongs to the Semiconductor Equipment - Wafer Fabrication industry, which has seen a significant gain of 60.6% this year [6]

Core Insights - Arlo Technologies, Inc. is scheduled to present at the Raymond James TMT and Consumer Conference on December 9, 2025, with CEO Matthew McRae as the speaker [1] - The presentation will be available via webcast on Arlo's investor relations website [1] Company Overview - Arlo Technologies is recognized as a leader in smart home security, offering advanced solutions for home, business, and personal security [2] - The company utilizes AI and computer vision analytics, cloud services, and innovative connectivity to provide a seamless security experience [2] - Arlo's product lineup includes wire-free security cameras, video doorbells, floodlights, and subscription services like Arlo Secure and Arlo Safe [2] Commitment to Privacy - Arlo emphasizes user privacy and data protection, ensuring that personal information remains private and under user control [3] - The company does not monetize personal data and supports privacy legislation while maintaining robust security measures [3] Financial Performance - Arlo reported a significant increase in Annual Recurring Revenue (ARR) to $323 million, representing a 34% year-over-year growth [6] - The gross margin for non-GAAP subscriptions and services reached over 85%, marking a 770 basis points increase year-over-year [6]