Arlo Technologies (NYSE:ARLO) Releases Earnings Results

Posted by George Bondi on Nov 5th, 2026

Arlo Technologies (NYSE:ARLO – Get Free Report) posted its earnings results on Thursday. The company reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.04, FiscalAI reports. Arlo Technologies had a net margin of 5.20% and a return on equity of 17.29%. The business had revenue of $149.18 million for the quarter, compared to analyst estimates of $144.93 million. During the same period in the prior year, the company posted $0.16 EPS. The company’s revenue for the quarter was up 6.9% on a year-over-year basis.

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 Trading Down 2.6%

ARLO traded down $0.40 during midday trading on Thursday, hitting $14.82. 2,243,280 shares of the company traded hands, compared to its average volume of 2,039,194. The company has a market capitalization of $1.61 billion, a price-to-earnings ratio of 72.48 and a beta of 1.59. Arlo Technologies has a 52-week low of $11.05 and a 52-week high of $17.76. The business has a 50 day simple moving average of $13.07 and a two-hundred day simple moving average of $13.39.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on ARLO shares. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Arlo Technologies in a report on Friday, October 30th. Piper Sandler lowered their price target on Arlo Technologies from $18.00 to $16.00 and set an “overweight” rating on the stock in a research report on Tuesday, October 20th. Finally, Wall Street Zen lowered Arlo Technologies from a “strong-buy” rating to a “buy” rating in a report on Saturday, October 31st. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $20.20.

Check Out Our Latest Analysis on Arlo Technologies

Key Arlo Technologies News

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

Positive Sentiment: Q3 adjusted earnings were $0.24 per share, topping the $0.20 consensus estimate and rising from $0.16 a year earlier. Revenue of $149.18 million also beat expectations of $144.93 million and grew 6.9% year over year. Arlo Reports Third Quarter 2026 Results
Positive Sentiment: Management reported 20% growth in subscriptions and services revenue and adjusted EBITDA growth of more than 50% year over year, pointing to continued expansion in recurring revenue and profitability. Arlo Reports Third Quarter 2026 Results
Neutral Sentiment: CFO Kurtis Binder sold 33,394 shares under a pre-arranged Rule 10b5-1 trading plan. The planned sale may draw investor attention, but it is less suggestive of a discretionary view on the stock; he retained 312,147 shares. SEC filing
Negative Sentiment: Q4 guidance calls for adjusted EPS of $0.17–$0.23 and revenue of $137 million–$147 million. The revenue range implies a sequential decline from Q3’s $149.18 million, which may have tempered the market’s reaction to the earnings beat. Q4 revenue outlook

Insider Activity

In other news, CFO Kurtis Binder sold 33,394 shares of the business’s stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $15.03, for a total transaction of $501,911.82. Following the completion of the sale, the chief financial officer owned 312,147 shares of the company’s stock, valued at $4,691,569.41. The trade was a 9.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 129,963 shares of company stock valued at $1,705,100 in the last quarter. 2.90% of the stock is owned by company insiders.

About Arlo Technologies

(Get Free Report)

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.