Arlo Technologies, Inc. (ARLO) AI Stock Analysis

Arlo Technologies, Inc. operates a global cloud-based platform across the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company combines an intelligent cloud infrastructure with a mobile application and smart connected devices to deliver home security solutions. Its product lineup includes the Arlo Essential Indoor Camera, Arlo Go 2 LTE/Wi-Fi security camera, Arlo Q series, Arlo Baby monitor, and the Arlo Chime. Arlo also provides the Arlo Ultra and Arlo Pro series with integrated spotlights and color night vision, the Arlo Video Doorbell, wire-free Arlo Floodlight Camera, and accessories including mounts, charging devices, and skins.

Arlo increased annual revenue from $435.1M in FY2021 to $529.3M in FY2025, delivering a 5-year revenue CAGR of 8.2%. Gross margin steadily widened from 24.8% in FY2021 to 44.0% in FY2025. After net losses of -$56.0M in FY2021, -$56.6M in FY2022, -$22.0M in FY2023, and -$30.5M in FY2024, the company recorded net income of $14.9M in FY2025 with an operating margin of 1.1%. For the trailing twelve months ended June 30, 2026, revenue totaled $587.1M with a net profit margin of 5.2%. In the latest quarter, quarterly revenue expanded 20.5% year-over-year, while quarterly earnings contracted 6.7%.

As of June 30, 2026, Arlo held $141.1M in cash and short-term investments against $5.7M in total debt, creating a net cash balance of $135.4M. Shareholders' equity was $158.5M alongside total assets of $374.6M, supported by a current ratio of 1.40 and a debt-to-equity ratio of 0.04. In FY2025, operating cash flow was $78.7M and free cash flow reached $66.9M. Cash deployment during FY2025 included $11.8M in capital expenditures and $45.6M in share buybacks.

At $12.16 per share, Arlo trades at a trailing P/E of 43.4x, higher than the 24.8x median of its US-listed Industrials peers. In contrast, its forward P/E of 13.8x is below the peer median of 17.2x, corresponding to a PEG ratio of 0.55. The company's EV/EBITDA of 59.4x and price-to-sales of 2.2x both sit above peer medians of 13.9x and 1.5x, respectively. Over the past year, Arlo dropped 31.2%, trailing the 16.8% return of the S&P 500, though its 5-year return of 87.4% surpassed the index's 83.0%.

Wall Street analysts hold 5 Strong Buy and 2 Buy ratings on Arlo, with 0 Hold, Sell, or Strong Sell recommendations. The mean price target of $21.00 represents a 72.7% premium over the last close of $12.16. For the fiscal year ending December 31, 2026, analysts forecast revenue of $591.5M and EPS of $0.95, representing 35.3% EPS growth. Arlo has beaten EPS estimates in each of the last 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of Arlo Technologies, Inc. (ARLO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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