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Jun 29, 2025
Arlo Q2 2025 Earnings Report
Arlo reported strong financial results for the second quarter ended June 29, 2025, driven by growth in its subscriptions business.
Key Takeaways
Arlo Technologies achieved record financial results in Q2 2025, primarily fueled by the success of its new AI platform, Arlo Secure 6, which significantly boosted subscriptions and services revenue and annual recurring revenue. The company also reported record gross margins and adjusted EBITDA.
Annual Recurring Revenue (ARR) reached $316 million, marking a 34% year-over-year increase.
Subscriptions and services revenue hit a record $78 million, growing 30% compared to the previous year.
GAAP net income per share was a record $0.03, with non-GAAP EPS reaching a record $0.17.
Cumulative paid accounts increased to 5.1 million, representing a 28.5% year-over-year growth.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Arlo expects continued growth in the third quarter of 2025, with projected revenue between $133 million and $143 million and non-GAAP EPS between $0.12 and $0.18.
Positive Outlook
- Expected revenue growth for Q3 2025, with a range of $133 million to $143 million.
- Anticipated positive GAAP net income per share for Q3 2025, ranging from $0.04 to $0.10.
- Projected non-GAAP net income per share for Q3 2025, ranging from $0.12 to $0.18.
- The launch of the new AI platform, Arlo Secure 6, is expected to continue driving subscription business growth.
- Holiday product launches and the strategic partnership with ADT are expected to position Arlo for continuing success.
Challenges Ahead
- Business outlook does not include estimates for currently unknown income and expense items like litigation reserves or impairment charges.
- The current global tariff environment is uncertain and could increase product costs.
- Tariffs may impact sales and reduce product margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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