Arlo Technologies (ARLO) Reports Q1 Earnings: What Key Metrics Have to Say

Core Insights - Arlo Technologies reported revenue of $119.07 million for Q1 2025, a year-over-year decline of 4.1% but exceeding the Zacks Consensus Estimate of $117.89 million by 1% [1] - The company achieved an EPS of $0.15, up from $0.09 a year ago, representing a surprise of 25% compared to the consensus estimate of $0.12 [1] Revenue Breakdown - Revenue from Services was $68.85 million, surpassing the average estimate of $67.79 million by analysts, and reflecting a year-over-year increase of 21.4% [4] - Revenue from Products was $50.22 million, slightly above the average estimate of $50.13 million, but showing a significant year-over-year decline of 25.6% [4] Margin Analysis - Non-GAAP gross margin for Services was reported at 83.1%, exceeding the two-analyst average estimate of 79% [4] - Non-GAAP gross margin for Products was -6.2%, which was below the two-analyst average estimate of -4.8% [4] Stock Performance - Over the past month, Arlo Technologies' shares have returned +10.3%, compared to the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]