ARLO earnings analysis
What we found in ARLO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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%.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Significant Revenue Growth
- Q1 2026 revenue increased by 26.3% to $150.4 million compared to $119.1 million in Q1 2025.
- Net Income Turnaround
- Net income rose to $14.9 million from a loss of $0.8 million last year.
- Strong Subscription Growth
- Subscriptions revenue grew by 30.9%, driven by a 22.6% increase in cumulative paid accounts.
- Increased Gross Margin
- Overall gross margin rose to 48.3% from 44.3% a year prior.
- Positive Operating Cash Flow
- Net cash provided by operating activities was $27.9 million, highlighting effective cash generation.
- Stock Repurchase Program Initiated
- A $50 million stock repurchase program was approved, with $8 million repurchased in Q1.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Tariff Policy Uncertainty
- Ongoing U.S. tariff measures could impact supply chain and operational costs.
- Market Demand Fluctuations
- Global economic conditions and inflation may adversely affect consumer demand for products.
- Increased R&D and Marketing Spend Risks
- R&D expenses rose by 41.1% to $22.8 million, which could strain short-term profitability.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.14
- Gross margin
- 48.3%
- Operating margin
- 5.0%
- Segment
- Subscriptions: $90.1 million, Products: $60.3 million
What they said about what is next.
Management anticipates strong momentum into Q2 2026 with revenue guidance up from previous estimates.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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