Arlo Technologies Q2 revenue beats estimates

Arlo Technologies

06/08/2026 21:37

Overview
Smart home security platform's Q2 revenue rose 21% yr/yr, beating analyst expectations
Adjusted EPS for Q2 beat consensus, driven by record subscriptions and services revenue
Company repurchased $22 mln of stock and raised annual revenue and EPS guidance

Outlook
Arlo sees Q3 revenue between $140 mln and $150 mln
Company expects Q3 non-GAAP EPS of $0.17 to $0.23
Arlo raises full-year 2026 revenue and EPS guidance to $580 mln-$600 mln and $0.90-$1.00 non-GAAP EPS

Result Drivers
SUBSCRIPTIONS AND SERVICES - Co said continued strength in subscriptions and services revenue drove top and bottom-line growth
RECURRING REVENUE GROWTH - Annual recurring revenue rose 15.6% yr/yr to $365 mln, with cumulative paid accounts up 23.2% yr/yr
MARGIN EXPANSION - Gross margin improved by 330 basis points yr/yr to 48.2% (GAAP), with non-GAAP gross margin up 480 basis points

Company press release: ID:nBwbv3tlBa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$155.94 mln
$148.75 mln (6 Analysts)
Q2 Adjusted EPS
Beat
$0.28
$0.20 (6 Analysts)
Q2 Gross Margin
 
48.2%
 
Q2 Adjusted Gross Margin
 
50.6%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for Arlo Technologies, Inc. is $21.00, about 31.8% above its August 5 closing price of $15.93
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads
Aug 5 - SmartRent Q2 revenue rises, loss narrows on professional services strength
Aug 4 - Workiva Q2 revenue beats analyst estimates on subscription growth 
Aug 4 - OneSpan beats Q2 revenue, profit estimates on subscription growth

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.)