Arlo Technologies (NYSE:ARLO) Releases Earnings Results, Beats Estimates By $0.08 EPS

Arlo Technologies (NYSE:ARLO) issued its quarterly earnings data on Thursday. The company reported $0.28 earnings per share for the quarter, beating analysts’ consensus estimates of $0.20 by $0.08, FiscalAI reports. The business had revenue of $155.94 million for the quarter, compared to analysts’ expectations of $148.94 million. Arlo Technologies had a net margin of 5.20% and a return on equity of 17.90%. The company’s revenue was up 20.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.17 earnings per share. Arlo Technologies updated its FY 2026 guidance to 0.900-1.000 EPS and its Q3 2026 guidance to 0.170-0.230 EPS.

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

• Q2 results set records, with total revenue of $155.9 million, up 21% year over year, service revenue of $93 million, adjusted EBITDA up 70% to $30.6 million, and non-GAAP EPS of $0.28.
• Paid accounts increased by nearly 300,000 to 6.3 million, while improving ARPU, lower churn, stronger renewals, and a 15% rise in account lifetime value to $967 supported subscription momentum.
• Arlo significantly raised its 2026 outlook to $580 million–$600 million in revenue and $0.90–$1.00 in non-GAAP EPS; management also expects Secure 7, a higher-priced subscription tier, and partnerships with ADT and Comcast to support future growth.
• Product gross margin remains structurally negative, at roughly negative mid- to high-single digits or potentially the teens, as Arlo uses hardware promotions to acquire subscribers; Q2 profitability also benefited from an $8 million tariff refund and Q3 is expected to receive another roughly $6 million refund.
• Management plans additional share repurchases after buying back more than $20 million of stock in Q2, while Aloe Care’s Home Helpers deployment and planned care and small-business market tests could create new growth opportunities in 2027.

Arlo Technologies Price Performance

Shares of ARLO traded down $0.26 during mid-day trading on Friday, hitting $15.21. The company’s stock had a trading volume of 2,594,257 shares, compared to its average volume of 1,050,835. The firm has a 50-day moving average price of $13.38 and a 200 day moving average price of $13.47. Arlo Technologies has a fifty-two week low of $11.05 and a fifty-two week high of $19.94. The stock has a market capitalization of $1.65 billion, a price-to-earnings ratio of 56.35 and a beta of 1.56.

Arlo Technologies News Roundup

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

• Positive Sentiment: Arlo beat Q2 expectations. The smart-home security company reported adjusted earnings of $0.28 per share versus the $0.20 consensus estimate. Revenue increased 20.5% year over year to $155.94 million, exceeding analysts’ $148.94 million forecast. Arlo Technologies Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management raised its outlook above Wall Street expectations. Q3 guidance calls for EPS of $0.17-$0.23 and revenue of $140 million-$150 million, compared with consensus estimates of $0.14 and $133.2 million. Full-year 2026 guidance was set at $0.90-$1.00 EPS and $580 million-$600 million in revenue, ahead of consensus forecasts of $0.71 and $565.7 million, respectively. Arlo Q2 2026 Earnings Call Transcript
• Positive Sentiment: Piper Sandler raised its price target. The firm increased its target from $17 to $18 and maintained an “overweight” rating, signaling confidence in Arlo’s growth trajectory following the earnings release. Piper Sandler Raises Arlo Price Target
• Neutral Sentiment: Management’s earnings call and presentation emphasized stronger growth, supported by higher revenue and expanding profitability. However, investors may want additional detail on the durability of subscription growth and the company’s ability to convert demand into recurring revenue. Arlo Q2 2026 Results Presentation
• Negative Sentiment: CFO Kurtis Joseph Binder disclosed additional stock sales. He sold 13,971 shares for approximately $209,705 on August 3 and 27,297 shares for about $423,649 on August 4. Both transactions were conducted under a pre-arranged Rule 10b5-1 plan, which reduces their significance as a discretionary bearish signal, but the sales can still weigh on sentiment. Arlo CFO Stock Sales

Insider Buying and Selling

In related news, CFO Kurtis Joseph Binder sold 27,297 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $15.52, for a total transaction of $423,649.44. Following the completion of the sale, the chief financial officer directly owned 442,110 shares of the company’s stock, valued at $6,861,547.20. This represents a 5.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 57,775 shares of company stock worth $845,139 over the last ninety days. 2.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Arlo Technologies

Institutional investors and hedge funds have recently modified their holdings of the stock. CIBC Bancorp USA Inc. acquired a new stake in shares of Arlo Technologies during the third quarter valued at approximately $180,000. Worth Venture Partners LLC purchased a new stake in shares of Arlo Technologies in the 3rd quarter valued at approximately $229,000. Mercer Global Advisors Inc. ADV acquired a new position in Arlo Technologies in the 3rd quarter worth approximately $173,000. Glenmede Investment Management LP acquired a new position in Arlo Technologies in the 3rd quarter worth approximately $182,000. Finally, FORA Capital LLC purchased a new position in Arlo Technologies during the 2nd quarter worth approximately $206,000. Institutional investors and hedge funds own 83.18% of the company’s stock.

Analyst Upgrades and Downgrades

ARLO has been the topic of several research analyst reports. Wall Street Zen cut shares of Arlo Technologies from a “strong-buy” rating to a “buy” rating in a research note on Saturday. Oppenheimer initiated coverage on shares of Arlo Technologies in a research note on Monday, May 18th. They set an “outperform” rating and a $20.00 price objective on the stock. Raymond James Financial reissued an “outperform” rating and set a $19.00 target price on shares of Arlo Technologies in a report on Friday, May 8th. Weiss Ratings downgraded Arlo Technologies from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday. Finally, Piper Sandler increased their price target on Arlo Technologies from $17.00 to $18.00 and gave the company an “overweight” rating in a research note on Friday. Five investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $20.60.

About Arlo Technologies

Arlo Technologies, Inc (NYSE: ARLO) is a provider of smart home security products and services designed for residential and small business customers. The company offers a portfolio of wireless and Wi-Fi-enabled security cameras, video doorbells, smart lighting solutions, and associated accessories. Arlo integrates advanced video analytics, motion detection, cloud storage, and two-way audio capabilities to deliver end-to-end security and monitoring solutions accessible through mobile applications and web interfaces.

Founded as a division of Netgear, Inc in 2014 and spun off as an independent public company in 2018, Arlo Technologies has established a presence in North America, Europe, Australia and parts of Asia.