📊 ARLO Key Takeaways
Is Arlo Technologies, Inc. (ARLO) a Good Investment?
Arlo Technologies exhibits fortress-like financial health with zero debt, exceptional cash reserves ($152.6M), and strong free cash flow ($25.1M). However, fundamental operational challenges persist: anemic 3.6% revenue growth, severely compressed 5.0% operating margin despite healthy 48.3% gross margin, and weak return on assets (4.1%) indicate inefficient capital deployment and limited organic growth momentum.
Arlo shows improving fundamental quality with positive revenue growth, sharply higher net income, and strong free cash flow generation relative to sales. Its balance sheet is a major strength, with substantial cash, no meaningful leverage, and solid liquidity, though the very thin operating margin means execution still needs to improve before the business looks fully durable.
Arlo Technologies, Inc. Key Strengths (ARLO)
- Fortress balance sheet: zero long-term debt with debt-to-equity ratio of 0.00x and $152.6M cash (42% of total assets)
- Strong free cash flow generation at $25.1M (16.7% FCF margin), exceeding net income and demonstrating quality earnings
- Healthy gross margin of 48.3% indicates solid pricing power and product quality
- Strong free cash flow generation with a 14.3% FCF margin and minimal capital expenditure needs
- Healthy balance sheet with $146.44M in cash, no long-term debt, and solid liquidity ratios
- Profitability is improving meaningfully, with net income up 148.9% YoY and gross margin holding at a strong 44.0%
ARLO Stock Risks: Arlo Technologies, Inc. Investment Risks
- Anemic revenue growth of 3.6% YoY signals market maturity, commoditization, or competitive pressures limiting organic expansion
- Operating margin severely compressed at 5.0% despite 48% gross margin, indicating structural operational inefficiencies and high expense base
- Weak capital efficiency with ROA of 4.1% and moderate ROE of 9.3% despite large cash hoard, suggesting poor capital deployment strategy
- Operating margin remains very thin at 1.1%, leaving limited room for cost pressure or revenue softness
- Top-line growth is modest at 3.6% YoY, which may constrain future earnings expansion
- Current profitability may prove less durable if gross margin slips or operating expenses rise faster than revenue
Key Metrics to Watch
- Operating margin expansion (path to 10%+) as evidence of operational leverage improvements
- Revenue growth acceleration above 5% YoY indicating return to meaningful organic growth
- Free cash flow consistency and capital allocation strategy (dividends, buybacks, M&A) to justify large cash position
- Operating margin trend
- Revenue growth versus free cash flow conversion
Arlo Technologies, Inc. (ARLO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Arlo Technologies, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ARLO Profit Margin, ROE & Profitability Analysis
ARLO vs Services Sector: How Arlo Technologies, Inc. Compares
How Arlo Technologies, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Arlo Technologies, Inc. Stock Overvalued? ARLO Valuation Analysis 2026
Based on fundamental analysis, Arlo Technologies, Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Arlo Technologies, Inc. Balance Sheet: ARLO Debt, Cash & Liquidity
ARLO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Arlo Technologies, Inc.'s revenue has grown significantly by 22% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.24 indicates the company is currently unprofitable.
ARLO Revenue Growth, EPS Growth & YoY Performance
ARLO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $119.1M | -$835.0K | $-0.01 |
| Q3 2025 | $137.7M | -$4.4M | $-0.04 |
| Q2 2025 | $127.4M | $2.3M | $0.02 |
| Q1 2025 | $119.1M | -$835.0K | $-0.01 |
| Q3 2024 | $130.0M | -$1.1M | $-0.01 |
| Q2 2024 | $115.1M | -$7.4M | $-0.08 |
| Q1 2024 | $111.0M | -$9.6M | $-0.10 |
| Q3 2023 | $128.2M | -$1.1M | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Arlo Technologies, Inc. Dividends, Buybacks & Capital Allocation
ARLO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Arlo Technologies, Inc. (CIK: 0001736946)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ARLO
What is the AI rating for ARLO?
Arlo Technologies, Inc. (ARLO) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARLO's key strengths?
Claude: Fortress balance sheet: zero long-term debt with debt-to-equity ratio of 0.00x and $152.6M cash (42% of total assets). Strong free cash flow generation at $25.1M (16.7% FCF margin), exceeding net income and demonstrating quality earnings. ChatGPT: Strong free cash flow generation with a 14.3% FCF margin and minimal capital expenditure needs. Healthy balance sheet with $146.44M in cash, no long-term debt, and solid liquidity ratios.
What are the risks of investing in ARLO?
Claude: Anemic revenue growth of 3.6% YoY signals market maturity, commoditization, or competitive pressures limiting organic expansion. Operating margin severely compressed at 5.0% despite 48% gross margin, indicating structural operational inefficiencies and high expense base. ChatGPT: Operating margin remains very thin at 1.1%, leaving limited room for cost pressure or revenue softness. Top-line growth is modest at 3.6% YoY, which may constrain future earnings expansion.
What is ARLO's revenue and growth?
Arlo Technologies, Inc. reported revenue of $150.4M.
Does ARLO pay dividends?
Arlo Technologies, Inc. does not currently pay dividends.
Where can I find ARLO SEC filings?
Official SEC filings for Arlo Technologies, Inc. (CIK: 0001736946) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ARLO's EPS?
Arlo Technologies, Inc. has a diluted EPS of $0.13.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ARLO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Arlo Technologies, Inc. has a A grade with 73% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ARLO stock overvalued or undervalued?
Valuation metrics for ARLO: ROE of 9.3% (sector avg: 16%), net margin of 9.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is ARLO's AI grade for 2026?
Our dual AI analysis gives Arlo Technologies, Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ARLO's free cash flow?
Arlo Technologies, Inc.'s operating cash flow is $27.9M, with capital expenditures of $2.8M. FCF margin is 16.7%.
How does ARLO compare to other Services stocks?
Vs Services sector averages: Net margin 9.9% (avg: 10%), ROE 9.3% (avg: 16%), current ratio 1.52 (avg: 1.5).