Business Wire·Feb 26, 2026, 4:05 PM ET

Arlo Reports Fourth Quarter and Full Year 2025 Results

Arlo Technologies reported full-year 2025 Annual Recurring Revenue (ARR) of $330 million, growing 28% year over year.
Full-year subscriptions and services revenue reached $316.4 million, a 30.2% increase, accounting for 59.8% of total revenue.
Non-GAAP gross margin for the full year improved to 45.1%, up 750 basis points year over year.
Adjusted EBITDA for the full year was $74.7 million, representing an 85.4% increase with a margin of 14.1%.
Cumulative paid accounts grew 23.7% year over year to reach 5.7 million.
The company announced a strategic partnership with Comcast to provide connected home security solutions to millions of Xfinity Internet households.
Q4 2025 ARR ended at $330.5 million, growing 28.4% year over year.
Q4 subscriptions and services revenue hit a record $89.4 million, a 39.4% year-over-year increase.
Q4 adjusted EBITDA was $23.3 million, up 138.2% year over year, with a margin of 16.5%.
Cash and cash equivalents plus short-term investments totaled $166.4 million at the end of Q4 2025.
Full-year free cash flow was $66.9 million with a margin of 12.6%.
Q1 2026 revenue is forecasted between $135 million and $145 million.
Q1 2026 non-GAAP earnings per diluted share are projected to be between $0.17 and $0.23.
The financial outlook includes estimates for current tariff costs impacting product margins due to overseas manufacturing.
Arlo's subscription strategy delivered record profitability, with non-GAAP EPS for the full year reaching $0.70.