Arlo Technologies Q1 revenue rises 26%, beats estimates

Arlo Technologies

07/05/2026 22:04

Overview

Smart home security platform's Q1 revenue rose, beating analyst expectations

Adjusted EPS for Q1 beat consensus, driven by higher subscriptions and services revenue

Company completed Aloe Care Health acquisition and repurchased $8 mln in stock

Outlook

Arlo sees Q2 2026 revenue between $145 mln and $155 mln

Company expects Q2 2026 non-GAAP EPS of $0.17 to $0.23

Company says current global tariff environment remains uncertain and could impact sales and margins

Result Drivers

SUBSCRIPTIONS GROWTH - Subscriptions and services revenue rose 31% year over year, now accounting for nearly 60% of total revenue

MARGIN EXPANSION - Record GAAP gross margin of 48% and non-GAAP gross margin of 50%, both up over 400 basis points from a year ago

PAID ACCOUNTS INCREASE - Cumulative paid accounts reached 6.0 mln, up 23% year over year

Company press release: ID:nBw1FGlFca

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$150.38 mln
$139.73 mln (4 Analysts)
Q1 Adjusted EPS
Beat
$0.28
$0.19 (4 Analysts)
Q1 Gross Margin
48.30%
Q1 Adjusted Gross Margin
50.10%
Q1 ARR
$357 mln


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(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.)