Business Wire·May 7, 2026, 4:05 PM ET

Arlo Reports First Quarter 2026 Results

Arlo Technologies reported first-quarter 2026 revenue of $150.4 million, growing 26.3% year over year.
Subscriptions and services revenue reached a record $90.1 million, increasing 30.9% year over year to account for 59.9% of total revenue.
Annual recurring revenue (ARR) hit a record $356.9 million, up 29.2% year over year.
Cumulative paid accounts grew 22.6% year over year to reach 6.0 million.
GAAP net income was $14.9 million with EPS of $0.14, while non-GAAP adjusted EBITDA reached $30.4 million (a 85.3% increase) with an EPS of $0.28.
GAAP gross margin improved to 48.3%, and non-GAAP gross margin reached a record 50.1%.
The company acquired Aloe Care Health in April 2026 to expand AI-powered aging-in-place services.
Free cash flow was $25.4 million with a margin of 16.9%.
Arlo repurchased $8.0 million of common stock during the quarter under a newly authorized $50 million program.
The company recorded a $6.4 million gain from the sale of its strategic investment in Origin Wireless.
Second quarter 2026 revenue outlook is projected between $145 million and $155 million.
Second quarter 2026 non-GAAP EPS is forecasted between $0.17 and $0.23.
Cash, cash equivalents, and short-term investments totaled $167.5 million as of March 29, 2026.