Arlo Technologies, Inc. (ARLO) Stock

Arlo Technologies, Inc. (ARLO) is a Technology stock trading at $13.06 (as of 2026-09-02), with a market capitalization of $1.41B and a trailing P/E of 46.0. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Arlo Technologies, Inc. provides a cloud platform and mobile applications for managing and monitoring smart connected security and monitoring devices across the Americas, Europe, the Middle East, Africa, and Asia Pacific. Its offerings include indoor and wireless cameras, doorbells, spotlight and floodlight cameras, and related devices such as baby monitors and alerts/alarms.

Understand Arlo Technologies, Inc.: how it makes money

Arlo sells wireless security cameras and a cloud video platform, making money through device sales and a recurring Secure subscription for cloud storage and AI features. The subscription layer is the annuity; cameras are the wedge that loads the installed base.

The camera is a low-margin acquisition tool; the cloud subscription is where Arlo captures durable profit, so subscriber count and churn matter far more than hardware unit sales.

Revenue by segment (latest quarter)
Subscriptions and Services$0.1B
Products$0.1B
Other$0.1B

Business quality (Mixed): Mixed. The subscription model is real and growing, but near-term profitability is swallowed by hardware concessions and rising opex, making this an operating-leverage story that needs sustained subscriber momentum to convert to cash flow.

Valuation: Trades at 46× trailing earnings · $1.4B market cap.

Bull case

  • Secure 7 lifts per-user revenue: Management confirmed Secure 7 will introduce a higher-priced subscription tier in September, giving Arlo a direct ARPU lever that does not require adding new accounts to grow subscription revenue.
  • Comcast and ADT open scale channels: ADT and Comcast integrations are on track, with Comcast potentially launching closer to Q1 than Q2; partner distribution can add subscribers at lower marginal acquisition cost than standalone retail.
  • Recurring base compounding: Annual Recurring Revenue stands at $360 million and is growing 21% year over year, anchoring a predictable revenue stream that shrinks the relative weight of lumpy, low-margin hardware sales each year.

Bear case

  • Hardware sold below cost: Management indicated product gross margins may reach negative mid-to-high teens as Arlo underprices cameras to fund customer acquisition, meaning every hardware unit can destroy cash before the subscription matures.
  • Inventory building, turns slowing: Inventory climbed to $48.4 million while turns fell to 5.5 times, tying up working capital and flagging either demand softness or over-ordering in a category exposed to tariff swings.
  • Opex outrunning revenue growth: Operating expenses rose 16.5% on R&D and partner-integration spend. With operating margin at just 1.6% (and a Q2 EPS boost from an $8 million tariff refund), there is almost no cushion if subscriber growth decelerates.
Valuation — source: SEC EDGAR (first-party)
Price$13.06
Market Cap$1.41B
P/E Ratio46.0
EV / EBITDA66.7
Price / Book8.87
Price / Sales2.39
DCF Value (model)$10.32
DCF Upside vs Price-21.0%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$529.30M
Net Margin2.8%
Revenue Growth (YoY)20.5%
EPS Growth (YoY)0.0%
Financial Health — source: SEC EDGAR
Altman Z-Score4.80 (safe)
Valuation vs Sector & Industry
Stock P/E46.0
Sector P/E (Technology)31.8
Industry P/E (Business Services)28.3
vs Sector44.5%
vs Industry62.5%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($242.54M)
Institutional Holders Tracked10
Company
SectorTechnology
IndustryBusiness Services
CEOMatthew Blake McRae
Employees360
CountryUS
IPO Date2018-08-03

Arlo Technologies, Inc. earnings call transcripts

  • ARLO Q2 FY26 earnings call transcript (reported 2026-08-06) · analysis
  • ARLO Q4 FY25 earnings call transcript (reported 2026-02-26) · analysis

All ARLO earnings calls

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ARLO earnings history · ARLO institutional & insider holders · ARLO KPIs & operating metrics · ARLO financials · ARLO investor presentations & press releases · ARLO SEC filings · ARLO peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-02.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.