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Dec 31, 2025
Arlo Q4 2025 Earnings Report
Arlo Technologies reported record subscription revenue and significant margin expansion for the fourth quarter of 2025.
Key Takeaways
Arlo delivered a strong Q4 2025, characterized by record subscription and services revenue of $89.4 million and a massive 138.2% year-over-year increase in Adjusted EBITDA. The company successfully transitioned its business model, with services now accounting for over 63% of total revenue, driving consolidated non-GAAP gross margins to a record 47.8%.
Annual Recurring Revenue (ARR) grew 28.4% year-over-year to reach $330.5 million.
Subscription and services revenue hit a record $89.4 million, representing 63.3% of total Q4 revenue.
Adjusted EBITDA surged to $23.3 million, up from $9.8 million in the prior year period.
Announced a major strategic partnership with Comcast to provide security solutions to Xfinity households.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Arlo provided guidance for Q1 2026, expecting continued revenue growth and non-GAAP profitability despite macroeconomic uncertainties.
Positive Outlook
- Projected Q1 2026 revenue between $135 million and $145 million.
- Expected non-GAAP EPS between $0.17 and $0.23.
- New strategic partnership with Comcast expected to accelerate momentum.
- Strong cash position with over $166 million in cash and investments.
- Continued shift toward high-margin subscription revenue streams.
Challenges Ahead
- Uncertain global tariff environment could impact product costs.
- Potential for increased product costs due to manufacturing outside the U.S.
- GAAP EPS guidance includes a wide range starting at $0.01.
- Macroeconomic conditions may impact consumer demand for hardware.
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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