Core Insights - Arlo Technologies reported Q3 CY2025 revenue of $139.5 million, a 1.4% year-on-year increase, exceeding analyst expectations of $138.7 million [1][5] - The company’s non-GAAP earnings per share (EPS) were $0.16, which is 8% above the consensus estimate of $0.15 [1][5] - Despite positive financial results, the market reacted negatively, attributed to ongoing pressure on product gross margins due to tariffs and promotional activities [3] Financial Performance - Revenue for Q3 CY2025 was $139.5 million, reflecting a 1.4% year-on-year growth and a 0.6% beat against analyst estimates [5] - Adjusted EPS was $0.16, surpassing analyst expectations by 8% [5] - Adjusted EBITDA reached $17.08 million, with a margin of 12.2%, exceeding estimates by 11.2% [5] - Operating margin improved to 0.6%, up from -3.5% in the same quarter last year [5] - Market capitalization stands at $1.77 billion [5] Future Outlook - Management anticipates continued growth in unit sales and service accounts, supported by a refreshed product lineup and strategic partnerships [4] - The company plans to implement competitive pricing and promotional activities during the holiday season to boost subscriber growth [4] - Recent reductions in bill of materials (BOM) costs are expected to help mitigate tariff impacts and enhance profitability [4]