10-K · February 27, 2026
Arlo positions itself as a cloud- and AI-first smart‑security platform selling cameras, systems and subscription services (Arlo Secure, Arlo Total Security, Arlo Safe) and intends to grow recurring revenue via…
Earnings analysis · 10-Q
ARLO earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
Arlo Technologies reported a strong Q1 2026 with revenue of $150.4 million, marking a 26.3% increase year-over-year, fueled by robust subscription service growth. The company posted a net income of $14.9 million, a…
Read full summary
Arlo Technologies reported a strong Q1 2026 with revenue of $150.4 million, marking a 26.3% increase year-over-year, fueled by robust subscription service growth. The company posted a net income of $14.9 million, a significant improvement from a loss of $0.8 million a year ago, and demonstrated operational efficiency with an operating margin of 5.0%.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.14
- Segment
- Subscriptions: $90.1 million, Products: $60.3 million
What stood out
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Significant Revenue Growth
Q1 2026 revenue increased by 26.3% to $150.4 million compared to $119.1 million in Q1 2025.
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Net Income Turnaround
Net income rose to $14.9 million from a loss of $0.8 million last year.
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Strong Subscription Growth
Subscriptions revenue grew by 30.9%, driven by a 22.6% increase in cumulative paid accounts.
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Increased Gross Margin
Overall gross margin rose to 48.3% from 44.3% a year prior.
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Positive Operating Cash Flow
Net cash provided by operating activities was $27.9 million, highlighting effective cash generation.
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Stock Repurchase Program Initiated
A $50 million stock repurchase program was approved, with $8 million repurchased in Q1.
What to watch
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Tariff Policy Uncertainty
Ongoing U.S. tariff measures could impact supply chain and operational costs.
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Market Demand Fluctuations
Global economic conditions and inflation may adversely affect consumer demand for products.
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Increased R&D and Marketing Spend Risks
R&D expenses rose by 41.1% to $22.8 million, which could strain short-term profitability.
Management's outlook
Management anticipates strong momentum into Q2 2026 with revenue guidance up from previous estimates.
Earlier filings 4
10-Q · November 6, 2025
Arlo reported Q3 revenue of $139,529,000, up from $137,667,000 a year ago, driven by subscription growth. Gross profit rose to $56,506,000 (≈40.5% margin) and the company returned to GAAP net income of $6,873,000…
10-Q · August 7, 2025
Arlo reported Q2 revenue of $129.405 million and delivered GAAP net income of $3.124 million ($0.03 diluted), reversing a year-ago loss. Gross margin expanded to 44.9% and operating income was $1.933 million, supported…
10-Q · May 8, 2025
Arlo reported Q1 revenue of $119,066,000 (down from $124,200,000 a year ago) while gross margin expanded to 44.3% (gross profit $52,727,000). Operating loss narrowed to $(1,451,000) and GAAP net loss narrowed to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.