ARLO to Post Q4 Earnings: What's in the Cards for the Stock?

Core Insights - Arlo Technologies (ARLO) is set to report its fourth-quarter 2025 results on February 26, with expected revenues between $131 million and $141 million and non-GAAP earnings per share ranging from 13 cents to 19 cents [1][9] - The Zacks Consensus Estimate for fourth-quarter 2025 revenues is $135.56 million, indicating an 11.5% growth compared to the same quarter last year [1] - The consensus for earnings per share is 16 cents, reflecting a 60% year-over-year increase [2] Revenue and Earnings Expectations - Arlo Technologies anticipates a revenue range of $131 million to $141 million for Q4 2025, with earnings per share projected between 13 to 19 cents [1][9] - The Zacks Consensus Estimate for revenues stands at $135.56 million, suggesting an 11.5% increase from the previous year [1] Performance Drivers - The company's services-first strategy is expected to enhance annual recurring revenues, supported by high-margin subscription offerings like Arlo Secure [3] - A growing subscriber base and the adoption of AI-powered premium features are likely to boost Annual Recurring Revenue and operating leverage [3] - The Secure 6 platform, featuring advanced capabilities, is anticipated to improve customer engagement and conversion rates [4] Product Developments - Arlo Technologies has undergone its largest product refresh, introducing over 100 new SKUs across its camera lines, which has contributed to a 30% year-over-year unit sales growth in the third quarter [5] - The introduction of Pan-Tilt Zoom designs has reduced bill of materials (BOM) costs by 20-35% [5] Challenges - The global tariff environment is expected to negatively impact Arlo's performance, as reliance on overseas manufacturing may lead to increased import duties and higher product costs [6] - Tariff volatility is likely to constrain overall margin expansion in the upcoming quarter [6] Earnings Prediction Model - Current analysis indicates that Arlo Technologies does not have a strong prediction for an earnings beat, with an Earnings ESP of 0.00% and a Zacks Rank of 3 [7]