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Mar 30, 2025
Arlo Q1 2025 Earnings Report
Arlo reported financial results for the first quarter ended March 30, 2025
Key Takeaways
Arlo delivered strong results in Q1 2025, driven by significant growth in subscriptions and services revenue, leading to record non-GAAP EPS and free cash flow.
Record subscriptions and services revenue of $68.8 million, up 21.4% year over year.
Annual Recurring Revenue (ARR) reached $276.4 million, a 21.8% increase year over year.
Record non-GAAP subscriptions and services gross margin of 83.1%, a 640 basis point increase year over year.
Record non-GAAP net income per share (EPS) of $0.15 and record Free cash flow (FCF) of $28.1 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the second quarter of 2025, Arlo expects revenue between $119 million and $129 million and non-GAAP net income per share between $0.11 and $0.17.
Positive Outlook
- Expected revenue range of $119 million to $129 million.
- Expected non-GAAP net income per share between $0.11 and $0.17.
- Rollout of entirely updated product line expected in the second half.
- Continued expansion of competitive differentiation with AI-powered SaaS platform.
- Progress towards new long-range targets.
Challenges Ahead
- Business outlook does not include estimates for currently unknown income and expense items.
- The current global tariff environment is uncertain.
- Tariffs could increase the cost of products manufactured outside the U.S.
- Tariffs could impact sales and reduce profitability.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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