Arlo Technologies (NYSE:ARLO – Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.08, FiscalAI reports. The business had revenue of $155.94 million during the quarter, compared to analyst estimates of $148.94 million. Arlo Technologies had a return on equity of 17.90% and a net margin of 5.20%.Arlo Technologies’s quarterly revenue was up 20.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.17 EPS. 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 Stock Down 1.7%
Shares of ARLO traded down $0.26 during mid-day trading on Friday, hitting $15.21. 2,594,257 shares of the company’s stock were exchanged, compared to its average volume of 1,050,835. The firm has a market cap of $1.65 billion, a price-to-earnings ratio of 56.35 and a beta of 1.56. Arlo Technologies has a 52 week low of $11.05 and a 52 week high of $19.94. The stock’s 50-day simple moving average is $13.38 and its 200-day simple moving average is $13.47.
Insider Activity
Institutional Inflows and Outflows
A number of hedge funds have recently added to or reduced their stakes in the company. Quarry LP increased its stake in shares of Arlo Technologies by 42.0% in the 3rd quarter. Quarry LP now owns 2,649 shares of the company’s stock valued at $45,000 after purchasing an additional 783 shares during the last quarter. Quadrant Capital Group LLC acquired a new stake in Arlo Technologies in the third quarter valued at about $86,000. EverSource Wealth Advisors LLC grew its position in Arlo Technologies by 1,682.9% in the second quarter. EverSource Wealth Advisors LLC now owns 5,616 shares of the company’s stock valued at $95,000 after acquiring an additional 5,301 shares during the last quarter. Strs Ohio bought a new position in Arlo Technologies in the first quarter valued at about $66,000. Finally, Quantbot Technologies LP acquired a new position in Arlo Technologies during the second quarter worth about $132,000. 83.18% of the stock is owned by institutional investors.
Trending Headlines about Arlo Technologies
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
Wall Street Analysts Forecast Growth
ARLO has been the subject of several recent analyst reports. William Blair initiated coverage on Arlo Technologies in a report on Tuesday, July 7th. They issued an “outperform” rating for the company. Oppenheimer started coverage on Arlo Technologies in a report on Monday, May 18th. They set an “outperform” rating and a $20.00 target price on the stock. UBS Group set a $20.00 price objective on shares of Arlo Technologies in a report on Monday, May 18th. Piper Sandler increased their price objective on shares of Arlo Technologies from $17.00 to $18.00 and gave the company an “overweight” rating in a research report on Friday. Finally, Raymond James Financial restated an “outperform” rating and set a $19.00 target price on shares of Arlo Technologies in a research note on Friday, May 8th. Six analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, Arlo Technologies currently has an average rating of “Moderate Buy” and a consensus target price of $20.83.
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.
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