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

05 Nov 2026, 21:26 by Amy Steele · The Cerbat Gem

Arlo Technologies (NYSE:ARLO – Get Free Report) announced its quarterly earnings results 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. The business had revenue of $149.18 million during the quarter, compared to the consensus estimate of $144.93 million. Arlo Technologies had a net margin of 5.20% and a return on equity of 17.29%. The business’s revenue was up 6.9% compared to the same quarter last year. During the same quarter last year, the firm posted $0.16 EPS.

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%

Shares of NYSE ARLO traded down $0.40 during trading on Thursday, reaching $14.82. The company had a trading volume of 2,243,280 shares, compared to its average volume of 2,039,194. Arlo Technologies has a twelve month low of $11.05 and a twelve month high of $17.76. The stock has a market capitalization of $1.61 billion, a PE ratio of 72.48 and a beta of 1.59. The stock has a 50-day moving average price of $13.07 and a two-hundred day moving average price of $13.39.

Insider Activity

In related news, CFO Kurtis Binder sold 33,394 shares of the stock in a transaction on Wednesday, November 4th. The stock was sold at an average price of $15.03, for a total transaction of $501,911.82. Following the sale, the chief financial officer owned 312,147 shares of the company’s stock, valued at $4,691,569.41. This trade represents a 9.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing 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 sold 129,963 shares of company stock valued at $1,705,100 in the last quarter. 2.90% of the stock is owned by corporate insiders.

Arlo Technologies News Roundup

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

Wall Street Analysts Forecast Growth

ARLO has been the topic of a number of research analyst reports. Piper Sandler decreased their price objective on shares of Arlo Technologies from $18.00 to $16.00 and set an “overweight” rating on the stock in a report on Tuesday, October 20th. Wall Street Zen cut shares of Arlo Technologies from a “strong-buy” rating to a “buy” rating in a report on Saturday, October 31st. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Arlo Technologies in a report on Friday, October 30th. Five investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $20.20.

Check Out Our Latest Stock Analysis on Arlo Technologies

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.