Arlo Technologies beats Q4 revenue and EPS expectations on subscription growth

Arlo Technologies

26/02/2026 21:51

Overview

Smart home security firm's Q4 revenue and adjusted EPS beat analyst expectations

Company's subscription services revenue grew 39.4% yr/yr, accounting for 63.3% of total revenue

Announced partnership with Comcast for connected home security solutions

Outlook

Arlo expects Q1 2026 revenue between $135 mln and $145 mln

Company anticipates Q1 2026 GAAP EPS between $0.01 and $0.07

Arlo says tariffs may impact product costs and margins

Result Drivers

SUBSCRIPTION GROWTH - Arlo's subscription services revenue increased by 39.4% year-over-year, contributing 63.3% to total revenue

GROSS MARGIN IMPROVEMENT - Record GAAP gross margin of 46.4% and non-GAAP gross margin of 47.8%, up 950 and 1030 basis points year over year

COMCAST PARTNERSHIP - New partnership with Comcast to provide connected home security solutions to millions of Xfinity Internet households in the U.S.

Company press release: ID:nBw5ZRMJna

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$141.30 mln
$135.57 mln (5 Analysts)
Q4 Adjusted EPS
Beat
$0.22
$0.16 (5 Analysts)
Q4 Gross Margin
46.40%
Q4 Adjusted Gross Margin
47.80%
Q4 ARR
$330.50 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the computer & electronics retailers peer group is "buy"

Wall Street's median 12-month price target for Arlo Technologies Inc is $22.00, about 84.7% above its February 25 closing price of $11.91

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 25 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)