We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ARLO expects fourth-quarter 2025 total revenues between $131 million and $141 million, with non-GAAP earnings per share of 13 cents to 19 cents.
The Zacks Consensus Estimate for fourth-quarter 2025 revenues is pegged at $135.56 million, suggesting 11.5% growth from the year-ago quarter’s reported figure.
The consensus mark for fourth-quarter 2025 earnings is pinned at 16 cents per share, unchanged over the past 30 days, indicating a 60% year-over-year surge.
The company beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 7.2%. Let us see how things are likely to have shaped up ahead of the upcoming announcement.
Factors Likely to Have Shaped ARLO’s Q4 Performance
Arlo Technologies is expected to have gained in the fourth quarter of 2025 from its services-first strategy, which continues to drive annual recurring revenues and yield strong results. The increasing contribution from high-margin subscription offerings like Arlo Secure is likely to have supported revenue consistency and profitability during the quarter. A growing subscriber base and deeper adoption of AI-powered premium features are anticipated to have boosted Annual Recurring Revenue and enhanced operating leverage.
Arlo Technologies’ Secure 6 platform, powered by AI and equipped with advanced features, such as fire, audio detection and smart video search, likely drove stronger customer engagement and conversion gains. An increase in ARPU above $15 and a rise in subscriber lifetime value to more than $870 indicate solid demand for premium offerings, fueling improved monetization and retention. These trends are expected to have benefited the company in the to-be-reported quarter.
Arlo Technologies is expected to have benefited in the fourth quarter of 2025 from its largest-ever product refresh, featuring more than 100 new SKUs across its Essential, Pro and Ultra camera lines. The addition of Pan-Tilt Zoom designs not only reduced BOM costs by 20-35% but contributed approximately 30% year-over-year unit sales growth in the third quarter.
The volatile global tariff environment is expected to have adversely impacted Arlo Technologies’ fourth-quarter performance. The company’s reliance on overseas manufacturing exposes it to higher import duties, which likely raised product costs and lowered hardware margins. Continued tariff volatility suggests that higher production expenses are likely to have limited overall margin expansion in the to-be-reported quarter.
What Our Model Says About ARLO
Our proven model does not conclusively predict an earnings beat for Arlo Technologies this time around. According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.
ARLO has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:
View the Zacks #1 Rank List
Image: Bigstock
ARLO to Post Q4 Earnings: What's in the Cards for the Stock?
Key Takeaways
Arlo Technologies (ARLO - Free Report) is scheduled to report fourth-quarter 2025 results on Feb. 26.
ARLO expects fourth-quarter 2025 total revenues between $131 million and $141 million, with non-GAAP earnings per share of 13 cents to 19 cents.
The Zacks Consensus Estimate for fourth-quarter 2025 revenues is pegged at $135.56 million, suggesting 11.5% growth from the year-ago quarter’s reported figure.
The consensus mark for fourth-quarter 2025 earnings is pinned at 16 cents per share, unchanged over the past 30 days, indicating a 60% year-over-year surge.
Arlo Technologies, Inc. Price and EPS Surprise
Arlo Technologies, Inc. price-eps-surprise | Arlo Technologies, Inc. Quote
The company beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 7.2%.
Let us see how things are likely to have shaped up ahead of the upcoming announcement.
Factors Likely to Have Shaped ARLO’s Q4 Performance
Arlo Technologies is expected to have gained in the fourth quarter of 2025 from its services-first strategy, which continues to drive annual recurring revenues and yield strong results. The increasing contribution from high-margin subscription offerings like Arlo Secure is likely to have supported revenue consistency and profitability during the quarter. A growing subscriber base and deeper adoption of AI-powered premium features are anticipated to have boosted Annual Recurring Revenue and enhanced operating leverage.
Arlo Technologies’ Secure 6 platform, powered by AI and equipped with advanced features, such as fire, audio detection and smart video search, likely drove stronger customer engagement and conversion gains. An increase in ARPU above $15 and a rise in subscriber lifetime value to more than $870 indicate solid demand for premium offerings, fueling improved monetization and retention. These trends are expected to have benefited the company in the to-be-reported quarter.
Arlo Technologies is expected to have benefited in the fourth quarter of 2025 from its largest-ever product refresh, featuring more than 100 new SKUs across its Essential, Pro and Ultra camera lines. The addition of Pan-Tilt Zoom designs not only reduced BOM costs by 20-35% but contributed approximately 30% year-over-year unit sales growth in the third quarter.
The volatile global tariff environment is expected to have adversely impacted Arlo Technologies’ fourth-quarter performance. The company’s reliance on overseas manufacturing exposes it to higher import duties, which likely raised product costs and lowered hardware margins. Continued tariff volatility suggests that higher production expenses are likely to have limited overall margin expansion in the to-be-reported quarter.
What Our Model Says About ARLO
Our proven model does not conclusively predict an earnings beat for Arlo Technologies this time around. According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.
ARLO has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:
Micron Technology (MU - Free Report) has an Earnings ESP of +3.06% and currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology shares have skyrocketed 340.3% in the past 12 months. MU is scheduled to release second-quarter 2026 results on March 19.
MongoDB (MDB - Free Report) has an Earnings ESP of +0.05% and sports a Zacks Rank of #1 at present.
MongoDB shares have returned 14.6% in the past 12 months. MDB is scheduled to release fourth-quarter 2026 results on March 2.
Credo Technology Group (CRDO - Free Report) has an Earnings ESP of +3.54% and currently flaunts a Zacks Rank #1.
Credo Technology shares have surged 105.8% in the past 12 months. CRDO is set to report third-quarter fiscal 2026 results on March 2.