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

Arlo Technologies (NYSE:ARLO) posted its earnings results on Thursday. The company reported $0.28 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.20 by $0.08, FiscalAI reports. The business had revenue of $155.94 million during the quarter, compared to analysts’ expectations of $148.94 million. Arlo Technologies had a return on equity of 17.90% and a net margin of 5.20%.Arlo Technologies’s revenue for the quarter was up 20.5% compared to the same quarter last year. During the same period in the prior year, the business 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 stock traded down $0.26 during trading on Friday, reaching $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 business has a fifty day moving average price of $13.38 and a 200-day moving average price of $13.47. Arlo Technologies has a one year low of $11.05 and a one year high of $19.94. The company has a market cap of $1.65 billion, a price-to-earnings ratio of 56.35 and a beta of 1.56.

Insider Transactions at Arlo Technologies

In related news, CFO Kurtis Joseph Binder sold 27,297 shares of the company’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $15.52, for a total transaction of $423,649.44. Following the sale, the chief financial officer owned 442,110 shares in the company, valued at approximately $6,861,547.20. This represents a 5.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 57,775 shares of company stock worth $845,139 in the last 90 days. Corporate insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in ARLO. Quarry LP increased its stake in shares of Arlo Technologies by 42.0% in the third quarter. Quarry LP now owns 2,649 shares of the company’s stock valued at $45,000 after buying an additional 783 shares during the period. SkyView Investment Advisors LLC raised its holdings in Arlo Technologies by 2.2% in the 2nd quarter. SkyView Investment Advisors LLC now owns 57,297 shares of the company’s stock valued at $982,000 after buying an additional 1,226 shares during the last quarter. CANADA LIFE ASSURANCE Co raised its holdings in Arlo Technologies by 1.2% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 115,861 shares of the company’s stock valued at $1,965,000 after buying an additional 1,399 shares during the last quarter. Nebula Research & Development LLC boosted its position in Arlo Technologies by 11.7% during the 2nd quarter. Nebula Research & Development LLC now owns 14,002 shares of the company’s stock worth $237,000 after buying an additional 1,472 shares during the period. Finally, Illinois Municipal Retirement Fund boosted its position in Arlo Technologies by 2.7% during the 4th quarter. Illinois Municipal Retirement Fund now owns 57,115 shares of the company’s stock worth $799,000 after buying an additional 1,509 shares during the period. Institutional investors and hedge funds own 83.18% of the company’s stock.

Wall Street Analyst Weigh In

ARLO has been the subject of several research analyst reports. Piper Sandler upped their price target on shares of Arlo Technologies from $17.00 to $18.00 and gave the company an “overweight” rating in a report on Friday. UBS Group set a $20.00 price objective on shares of Arlo Technologies in a report on Monday, May 18th. Raymond James Financial reaffirmed an “outperform” rating and issued a $19.00 price objective on shares of Arlo Technologies in a research report on Friday, May 8th. Oppenheimer initiated coverage on shares of Arlo Technologies in a research note on Monday, May 18th. They issued an “outperform” rating and a $20.00 target price for the company. Finally, William Blair started coverage on Arlo Technologies in a report on Tuesday, July 7th. They set an “outperform” rating for the company. Six research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $20.83.

Key Headlines Impacting 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

Arlo Technologies Company Profile

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.