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What Happened? Shares of smart security company Arlo (NYSE:ARLO) fell 10.8% in the afternoon session after the company reported mixed earnings. Arlo posted revenue of $139.5 million and adjusted earnings of $0.16 per share, surpassing Wall Street's forecasts. The company also guided for next quarter's earnings to be ahead of estimates. However, the positive results were not enough to impress investors. The negative reaction could be attributed to concerns over the company's cash generation, as its free ...

Smart security company Arlo (NYSE:ARLO) announced better-than-expected revenue in Q3 CY2025, with sales up 1.4% year on year to $139.5 million. The company expects next quarter’s revenue to be around $136 million, close to analysts’ estimates. Its non-GAAP profit of $0.16 per share was 8% above analysts’ consensus estimates. Is now the time to buy ARLO? Find out in our full research report (it’s free for active Edge members). Arlo Technologies (ARLO) Q3 CY2025 Highlights: Revenue: $139.5 million vs ana ...

Core Insights - Arlo Technologies reported revenue of $139.53 million for the quarter ended September 2025, reflecting a year-over-year increase of 1.4% and a surprise of +0.4% over the Zacks Consensus Estimate [1] - The company's EPS for the quarter was $0.16, up from $0.11 in the same quarter last year, resulting in an EPS surprise of +6.67% compared to the consensus estimate of $0.15 [1] Financial Performance - Non-GAAP gross margin for Services was reported at 85.1%, slightly above the estimated 85% [4] - Non-GAAP gross margin for Products was -17.3%, worse than the estimated -14.9% [4] - Revenue from Services was $79.94 million, slightly below the average estimate of $80.21 million, but showed a significant year-over-year increase of +29.2% [4] - Revenue from Products was $59.59 million, exceeding the average estimate of $58.74 million, but represented a year-over-year decline of -21.4% [4] Market Performance - Over the past month, Arlo Technologies' shares have returned +2.6%, outperforming the Zacks S&P 500 composite's +1.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Arlo Technologies (ARLO) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +6.67%. A quarter ago, it was expected that this maker of smart connected devices would post earnings of $0.16 per share when it actually produced earnings of $0.17, delivering a surprise of +6.25%.Over the last ...

Arlo (NYSE:ARLO) Q3 2025 Earnings Call November 06, 2025 05:00 PM ET Speaker1Ladies and gentlemen, thank you for standing by. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. At that time, if you have a question, you will need to press the star one on your push-button phone. I will now turn the conference over to Tom Clark. Please go ahead, sir.Speaker4Thank you, Operator. Good afternoon and welcome to Arlo Technologies' third quarter 2025 finan ...

November 6, 2025 Investor Presentation ©2025 – ALL RIGHTS RESERVED SAFE HARBOR DISCLOSURE This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words "anticipate," "expect," "believe," "will," "may," "should," "estimate," "project," "outlook," "forecast" or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. ...

We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Arlo Technologies’s recent performance shows its demand has slowed as its annualized revenue growth of 3.6% over the last two years was below its five-year trend.As you can see below, Arlo Technologies grew its sales at a decent 6.9% compounded annual growth rate over the last five years. This shows its offerings generated slight ...

Revenue Growth - Annual recurring revenue (ARR) reached $323 million, representing a year-over-year growth of 33.8%[1] - Subscriptions and services revenue hit a record of approximately $80 million, increasing by 29.2% year over year, accounting for 57.3% of total revenues[4] - Total revenue for the three months ended September 28, 2025, was $139.5 million, a 7.3% increase from $129.4 million in the previous quarter[25] - Subscription and services revenue reached $79.9 million, up 2.2% from $78.2 million in the previous quarter, while product revenue increased by 16.3% to $59.6 million[25] - For the nine months ended September 28, 2025, total revenue was $388,000,000, a slight decrease from $389,314,000 in the same period last year[38] Profitability Metrics - Record GAAP subscriptions and services gross margin of 84.5%, and non-GAAP subscriptions and services gross margin of 85.1%, up 780 and 770 basis points year over year, respectively[4] - Adjusted EBITDA was $17.1 million, reflecting a year-over-year increase of 50.3%, with an adjusted EBITDA margin of 12.2%[4] - GAAP earnings per share (EPS) reached a record of $0.07, while non-GAAP EPS was $0.16[4] - Net income for the three months ended September 28, 2025, was $6.9 million, compared to a net income of $3.1 million in the previous quarter[25] - Free cash flow for the three months ended September 28, 2025, was $14,984,000, compared to $5,855,000 in the prior quarter, representing a significant increase of 155.5%[31] Cash and Investments - The company ended the quarter with cash and cash equivalents and short-term investments totaling $165.5 million, an increase of $19.0 million year over year[4] - Cash and cash equivalents increased to $86.0 million as of September 28, 2025, from $82.0 million at the end of the previous quarter[23] - The company reported a net cash provided by operating activities of $59.0 million for the nine months ended September 28, 2025, compared to $44.6 million for the same period last year[27] Customer Growth - Cumulative paid accounts grew to 5.4 million, marking a 27.4% increase year over year[4] - Cumulative registered accounts increased to 11,792 as of September 28, 2025, compared to 11,237 in the previous quarter, reflecting a growth of 4.9%[34] - Cumulative paid accounts rose to 5,396 as of September 28, 2025, from 5,115 in the previous quarter, indicating an increase of 5.5%[35] Regional Revenue Breakdown - Revenue from the Americas was $83,831,000, accounting for 60.1% of total revenue, up from 53.2% in the same quarter last year[38] - EMEA revenue reached $49,602,000, making up 35.5% of total revenue, compared to 33.5% in the previous year[38] - APAC revenue was $6,096,000, representing 4.4% of total revenue, slightly up from 4.2% in the same quarter last year[38] - The Americas region showed significant growth with a nine-month revenue of $235,830,000, up from $195,766,000, increasing its share from 50.3% to 60.8%[38] - EMEA's nine-month revenue was $135,817,000, which is a decrease from $175,980,000, reducing its share from 45.2% to 35.0%[38] Future Outlook - The company expects fourth quarter 2025 revenue to be between $131 million and $141 million, with non-GAAP net income per share projected between $0.13 and $0.19[6] - The comprehensive launch of the refreshed product portfolio and the Arlo Secure 6 AI-driven security platform is anticipated to drive additional subscriptions and services revenue growth heading into 2026[3] - The company continues to focus on expanding its market presence, particularly in the Americas, which has shown the most robust growth[38] - Future outlook indicates a strategic emphasis on enhancing product offerings and technological advancements to drive revenue growth[38]

Core Insights - Arlo Technologies has transitioned to a Software as a Service (SaaS) model, which has positively impacted its profitability and growth trajectory [1] - The company is experiencing strong Annual Recurring Revenue (ARR) growth and an increasing number of subscribers [1] - The Service segment has become the largest segment for Arlo, indicating a shift in its business focus [1]