Arlo Technologies Q3 revenue edges past estimates on growth in services business

Arlo Technologies

06/11/2025 22:12

Overview

Arlo Q3 revenue slightly beats analyst expectations

The maker of smart security cameras posts adjusted EPS that surpasses analyst estimates

Record subscriptions and services revenue grows 29.2% yr/yr

Outlook

Company projects Q4 2025 revenue between $131 mln and $141 mln

Arlo expects Q4 2025 GAAP EPS between $0.00 and $0.06

Company anticipates Q4 2025 non-GAAP EPS between $0.13 and $0.19

Result Drivers

SERVICES BUSINESS - CEO attributes strong Q3 performance to growth in services business, with ARR up 33.8% yr/yr

PRODUCT LAUNCHES - Co highlights comprehensive launch of refreshed product portfolio as a driver for future growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$139.53 mln
$138.56 mln (4 Analysts)
Q3 Adjusted EPS
Beat
$0.16
$0.15 (4 Analysts)
Q3 Gross Margin
40.50%
Q3 Adjusted Gross Margin
41.40%
Q3 ARR
$323 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 19.5% above its November 5 closing price of $17.71

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nBw5bytJpa

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