Brief: Arlo Technologies Q2 Adjusted EPS USD 0.17 Vs. IBES Estimate USD 0.15

Arlo Technologies

07/08/2025 21:22

Overview

Arlo Q2 revenue of $129.4 mln beat analyst expectations, per LSEG data

Adjusted EPS for Q2 was $0.17, exceeding analyst estimates, per LSEG data

ARR grew 34% yr/yr to $316 mln, driven by new AI platform

Outlook

Arlo expects Q3 2025 revenue between $133 mln and $143 mln

Company forecasts Q3 GAAP EPS of $0.04 to $0.10

Arlo anticipates Q3 non-GAAP EPS between $0.12 and $0.18

Result Drivers

AI PLATFORM - Launch of Arlo Secure 6 drove growth in subscriptions, boosting revenue and ARR, per CEO Matthew McRae

SUBSCRIPTION GROWTH - Subscriptions and services revenue rose 30% to $78 mln, accounting for 60.4% of total revenues

STRATEGIC PARTNERSHIP - Partnership with ADT and holiday product launches expected to sustain growth momentum

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$129.40 mln
$123.50 mln (5 Analysts)
Q2 Adjusted EPS
Beat
$0.17
$0.15 (5 Analysts)
Q2 Gross Margin
44.9%
Q2 Adjusted Gross Margin
45.8%
Q2 ARR
$316 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 $19.50, about 17.4% above its August 6 closing price of $16.10

The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBw47K1Fca

(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.)