Revenue: As of FY2026 Q1, the actual value is USD 150.38 M, beating the estimate of USD 139.73 M.EPS: As of FY2026 Q1, the actual value is USD 0.13.EBIT: As of FY2026 Q1, the actual value is USD 6.317 M.Arlo Technologies, Inc. operates as one operating and reportable segment.<h4>Revenue by Classification</h4><ul><li>Total Revenue: $150,382 thousand for the three months ended March 29, 2026, marking a 26.3% increase from $119,066 thousand for the same period in 2025.</li><li>Subscriptions and Services Revenue: $90,099 thousand for the three months ended March 29, 2026 (59.9% of total revenue), a 30.9% increase from $68,849 thousand for the same period in 2025 (57.8% of total revenue). This growth was primarily due to a 22.6% increase in cumulative paid accounts and continued growth in average revenue per user (ARPU) on retail and direct paid subscription services.</li><li>Products Revenue: $60,283 thousand for the three months ended March 29, 2026 (40.1% of total revenue), a 20.0% increase from $50,217 thousand for the same period in 2025 (42.2% of total revenue). This was mainly driven by increased product shipments to a major customer in EMEA and lower sales incentives and returns, partially offset by reduced average selling prices (ASPs) in retail channels due to promotional activities.</li></ul><h4>Revenue by Geographic Region</h4><ul><li>Americas: $83,986 thousand (55.9% of total revenue) for the three months ended March 29, 2026, a 19.8% increase from $70,097 thousand (58.9% of total revenue) for the same period in 2025.</li><li>EMEA: $60,665 thousand (40.3% of total revenue) for the three months ended March 29, 2026, a 41.4% increase from $42,895 thousand (36.0% of total revenue) for the same period in 2025.</li><li>APAC: $5,731 thousand (3.8% of total revenue) for the three months ended March 29, 2026, a -5.6% decrease from $6,074 thousand (5.1% of total revenue) for the same period in 2025.</li></ul><h4>Operational Metrics</h4><ul><li>Gross Profit: $72,668 thousand for the three months ended March 29, 2026, a 37.8% increase from $52,727 thousand for the same period in 2025.<ul><li>Subscriptions and Services Gross Profit: $75,417 thousand for the three months ended March 29, 2026, a 33.3% increase from $56,584 thousand for the same period in 2025. Gross margin for subscriptions and services was 83.7% in 2026, up from 82.2% in 2025.</li><li>Products Gross Profit: - $2,749 thousand for the three months ended March 29, 2026, an improvement from - $3,857 thousand for the same period in 2025. Products gross margin was -4.6% in 2026, up from -7.7% in 2025, driven by lower product warranty, inventory reserves, and decreased freight-in costs.</li></ul></li><li>Income (Loss) from Operations: $7,558 thousand (5.0% of total revenue) for the three months ended March 29, 2026, compared to - $1,451 thousand (-1.2% of total revenue) for the same period in 2025.</li><li>Net Income (Loss): $14,877 thousand for the three months ended March 29, 2026, compared to - $835 thousand for the same period in 2025.</li><li>Operating Expenses:<ul><li>Research and Development: $22,814 thousand for the three months ended March 29, 2026, a 41.1% increase from $16,165 thousand for the same period in 2025, due to higher stock-based compensation, increased payroll-related compensation from headcount growth, and increased outside professional services.</li><li>Sales and Marketing: $22,654 thousand for the three months ended March 29, 2026, a 12.1% increase from $20,203 thousand for the same period in 2025, primarily due to increases in credit card and in-app processing fees, marketing expenditures, and professional services.</li><li>General and Administrative: $18,207 thousand for the three months ended March 29, 2026, a 2.4% increase from $17,785 thousand for the same period in 2025, mainly due to increased legal professional services, partially offset by decreases in payroll-related compensation and IT and facilities overhead.</li><li>Other Operating Expense: $1,435 thousand for the three months ended March 29, 2026, compared to $25 thousand for the same period in 2025.</li></ul></li><li>Other Income, Net: $7,734 thousand for the three months ended March 29, 2026, compared to $1,118 thousand for the same period in 2025, including a $6,423 thousand gain on the sale of a long-term investment.</li><li>Provision for Income Taxes: $415 thousand for the three months ended March 29, 2026, compared to $502 thousand for the same period in 2025, with effective tax rates of 2.7% in 2026 and -150.8% in 2025.</li></ul><h4>Cash Flow</h4><ul><li>Net Cash Provided by Operating Activities: $27,863 thousand for the three months ended March 29, 2026, a decrease from $30,919 thousand for the same period in 2025, primarily due to unfavorable working capital movements partially offset by improved profitability.</li><li>Net Cash Used in Investing Activities: - $14,333 thousand for the three months ended March 29, 2026, compared to - $14,352 thousand for the same period in 2025, including a $36,000 thousand payment for a business acquisition and $18,923 thousand in proceeds from the sale of a long-term investment.</li><li>Net Cash Used in Financing Activities: - $7,334 thousand for the three months ended March 29, 2026, a decrease from - $14,590 thousand for the same period in 2025, mainly due to lower stock repurchases.</li></ul><h4>Unique Metrics</h4><ul><li>Cumulative Registered Accounts: 13.1 million as of March 29, 2026, a 19.4% increase year-over-year.</li><li>Cumulative Paid Accounts: 6.0 million as of March 29, 2026, a 22.6% increase year-over-year.</li><li>Annual Recurring Revenue (ARR): $356.9 million as of March 29, 2026, a 29.2% increase year-over-year.</li><li>Goodwill: Increased from $11,038 thousand as of December 31, 2025, to $38,544 thousand as of March 29, 2026, primarily due to the acquisition of Canary Connect, Inc.</li><li>Intangible Assets, Net: Increased from $0 thousand as of December 31, 2025, to $19,490 thousand as of March 29, 2026, attributable to the Canary acquisition.</li><li>Deferred Revenue: Increased from $37,139 thousand as of December 31, 2025, to $52,187 thousand as of March 29, 2026, primarily due to growth in subscriptions and services revenue.</li><li>Accounts Receivable, Net: Increased from $39,666 thousand as of December 31, 2025, to $52,174 thousand as of March 29, 2026, mainly due to higher product and service sales.</li><li>Inventories: Increased from $41,185 thousand as of December 31, 2025, to $43,958 thousand as of March 29, 2026.</li><li>Accounts Payable: Decreased from $42,826 thousand as of December 31, 2025, to $40,184 thousand as of March 29, 2026.</li><li>Accrued Liabilities: Decreased from $92,372 thousand as of December 31, 2025, to $89,331 thousand as of March 29, 2026.</li><li>Stock Repurchase Program: Arlo Technologies, Inc. repurchased 0.6 million shares for $8.0 million during the three months ended March 29, 2026, leaving $42.0 million available under a program approved through December 31, 2027.</li><li>Credit Facility: As of March 29, 2026, Arlo Technologies, Inc. had an unused borrowing capacity of $45.0 million under its revolving credit facility, which matures in November 2027.</li></ul><h4>Future Outlook and Strategy</h4>Arlo Technologies, Inc. plans to continue developing innovative smart security solutions to expand and monetize its user and paid account bases by increasing investment in research and development and sales and marketing. The company acknowledges potential uncertainty regarding global trade policy and tariffs but has not experienced a material impact to date and does not expect a near-term detrimental impact.

Arlo Tech | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 150.38 M