Arlo Technologies (NYSE:ARLO) Announces Earnings Results, Beats Estimates By $0.04 EPS

Arlo Technologies (NYSE:ARLO) announced its quarterly earnings data on Thursday. The company reported $0.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.20 by $0.04, FiscalAI reports. Arlo Technologies had a return on equity of 17.29% and a net margin of 5.20%. The business had revenue of $149.18 million during the quarter, compared to analysts’ expectations of $144.93 million. During the same quarter in the previous year, the business earned $0.16 earnings per share. The firm’s quarterly revenue was up 6.9% compared to the same quarter last year.

Here are the key takeaways from Arlo Technologies’ conference call:

• Subscriptions and services revenue rose 20% to $96 million, while paid accounts grew 23% to 6.6 million and ARR increased 14% to $370 million. Higher recurring-revenue mix helped lift non-GAAP gross margin by 760 basis points and adjusted EBITDA by 58% year over year.
• Management is targeting roughly 30% ARR growth in 2027, citing strategic-account expansion, Arlo Secure 7 and Aloe Care. It expects higher subscription tiers and increased service revenue per partner subscriber to help drive growth.
• Comcast integration remains on schedule for a mid-2027 launch and could become Arlo’s largest strategic partnership; ADT is also expanding its DIY offering. Management cautioned that new partnerships under discussion are more likely to contribute meaningfully in 2028.
• Fourth-quarter revenue guidance of $137 million to $147 million and non-GAAP EPS of $0.17 to $0.23 are below Q3’s $149.2 million and $0.24, respectively. Management expects subscriptions and services to make up more than 70% of Q4 revenue.
• Arlo reported gains in retail shelf space and multi-camera kit sales, which management says tend to generate more subscription sign-ups; multi-camera kit units rose 41% year over year during Amazon’s Prime event. The company also said early demand for its new solar camera is strong.

Arlo Technologies Stock Down 16.6%

NYSE ARLO opened at $12.38 on Friday. The firm has a market capitalization of $1.34 billion, a PE ratio of 56.26 and a beta of 1.59. The stock’s 50 day moving average is $13.05 and its 200 day moving average is $13.39. Arlo Technologies has a twelve month low of $11.05 and a twelve month high of $16.89.

Insider Buying and Selling

In other news, CFO Kurtis Binder sold 83,211 shares of the company’s stock in a transaction dated Monday, September 28th. The shares were sold at an average price of $12.44, for a total value of $1,035,144.84. Following the transaction, the chief financial officer directly owned 358,899 shares in the company, valued at approximately $4,464,703.56. This represents a 18.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 129,963 shares of company stock worth $1,705,100 over the last ninety days. 2.90% of the stock is owned by insiders.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on ARLO. Wall Street Zen cut shares of Arlo Technologies from a “strong-buy” rating to a “buy” rating in a report on Saturday, October 31st. Piper Sandler reiterated an “overweight” rating and issued a $17.00 target price (up from $16.00) on shares of Arlo Technologies in a report on Friday. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Arlo Technologies in a research note on Friday, October 30th. Five research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $20.40.

Arlo Technologies News Summary

Here are the key news stories impacting Arlo Technologies this week:

• Positive Sentiment: Q3 adjusted EPS was $0.24, above the $0.20 consensus and up from $0.16 a year earlier. Revenue of $149.18 million also topped estimates of $144.93 million, increasing 6.9% year over year. Arlo Reports Third Quarter 2026 Results
• Positive Sentiment: Management said subscriptions and services revenue grew 20%, while adjusted EBITDA rose more than 50% year over year, signaling momentum in recurring revenue and profitability. Arlo Reports Third Quarter 2026 Results
• Positive Sentiment: Piper Sandler reaffirmed its overweight rating and raised its price target to $17 from $16, implying substantial upside from the cited $12.38 share price. Piper Sandler rating and target
• Neutral Sentiment: CFO Kurtis Binder sold 33,394 shares in a transaction under a pre-arranged Rule 10b5-1 plan. He retained 312,147 shares, which may soften concerns about the sale. SEC filing
• Negative Sentiment: Q4 revenue guidance of $137 million–$147 million is below Q3’s $149.18 million, suggesting a sequential slowdown. Despite the earnings beat, reports said the stock fell, with the outlook likely weighing on sentiment. Q3 results and stock reaction

About Arlo Technologies

Arlo Technologies, Inc is a smart home security company that develops connected devices and cloud-based services designed to help consumers monitor and protect their homes, businesses and other properties. Its product portfolio includes wire-free and wired security cameras, video doorbells, floodlight cameras, home security systems and related accessories.

Arlo’s products typically connect through mobile applications and cloud services, providing features such as live video, motion detection, two-way audio, night vision and notifications.