Arlo Technologies, Inc. Q3 2025 Earnings Recap

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.