Arlo Technologies, Inc. Q1 2026 Earnings Recap

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.