Arlo(US:ARLO)2025-08-07 21:00Arlo's Business Overview - Arlo is an AI-powered SaaS business in the smart security space with a focus on innovation and privacy [7] - Arlo's annual recurring revenue (ARR) is greater than $315 million, with year-over-year growth exceeding 30% [11] - Arlo has over 5 million paid subscribers and over 11 million registered accounts [11] - Arlo's LTV/CAC ratio is 3x [11] Market Opportunity - The US smart home security market is sized at $25 billion in 2025 [16] - Paid smart home security services are only 7% penetrated in the US, leaving significant room for growth [16] - Smart cameras and video doorbells have the highest subscription attach rates among smart home products, at 66% and 71% respectively [16] Q2 2025 Performance - Arlo's annual recurring revenue (ARR) reached $316 million, a 34% year-over-year increase [50] - Service revenue accounted for 60% of total revenue [50] - The service gross margin was 85% (non-GAAP) [50] - Adjusted EBITDA reached $344 million YTD, a 79% year-over-year increase [66] - Free cash flow reached $34 million YTD, a 33% year-over-year increase [67] Future Outlook - Arlo is targeting over $310 million in service revenue [82] - Arlo projects non-GAAP earnings per share of $012 to $018 for Q3 2025 and $056 to $066 for the full year 2025 [82]