Arlo Technologies, Inc. Earnings Recaps
Q1 2026
May 12, 2026
Arlo's shares rose modestly by 2.3% following Q1 results that showed solid growth in paid accounts and ARR, though the market reaction suggests investors expected more pronounced upside on margin expansion or outlook.
Key takeaways
- Revenue reached $150 million, up 26% year-over-year, with subscriptions and services making up 60% of total revenue.
- Added 318,000 paid accounts, significantly exceeding the guidance range of 190,000 to 230,000, pushing total paid accounts past 6 million earlier than anticipated.
- ARPU increased 16% year-over-year to $15.60, contributing to ARR growth of 29% to $357 million.
- Non-GAAP gross margin improved 460 basis points to 50%, reflecting operating leverage from the growing services mix.
- Company announced acquisition of Aloe Care to enter the large and fragmented age-in-place care market, signaling strategic expansion beyond core security offerings.
Q3 2025
Nov 8, 2025
Arlo Technologies delivered a record-breaking Q3 2025, driven by exceptional growth in paid accounts and robust SaaS performance, culminating in significant revenue and profitability milestones.
Key takeaways
- Added 281,000 paid accounts, exceeding targets, bringing total to 5.4 million, up 27% year-over-year.
- Annual recurring revenue reached $323 million, a 34% increase year-over-year, with service gross margin expanding to over 85%.
- Adjusted EBITDA surged 50% from the prior year to $17 million, and GAAP EPS reached a record $0.07.
- Successfully executed the largest product launch in company history, contributing to nearly 30% unit sales growth year-over-year.
- Anticipating 20% to 30% unit growth in Q4, positioned well for continued service revenue growth into 2026.