📊 ARLO Key Takeaways
Is Arlo Technologies, Inc. (ARLO) a Good Investment?
Arlo Technologies demonstrates solid financial health with strong cash generation (75.9M FCF, 14.3% FCF margin) and a fortress balance sheet (146.4M cash, 0.0x debt/equity). However, growth is modest (3.6% YoY revenue) and profitability remains challenged with a thin 1.1% operating margin, suggesting operational efficiency issues that need improvement.
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.
Why Buy Arlo Technologies, Inc. Stock? ARLO Key Strengths
- Exceptional free cash flow generation of 75.9M with 14.3% FCF margin indicating strong cash conversion
- Fortress balance sheet with 146.4M cash, zero long-term debt, and healthy 1.51x current ratio
- Significant net income growth of 148.9% YoY with EPS up 145.2%, demonstrating improving bottom-line performance
- Positive operating leverage with 44.0% gross margin providing substantial margin expansion potential
- 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
- Weak operating margin of 1.1% despite 44% gross margins indicates high operating expenses relative to revenue
- Modest revenue growth of 3.6% YoY suggests limited organic growth momentum in core business
- ROA of 4.8% and ROE of 11.7% are relatively modest, indicating suboptimal asset and capital deployment efficiency
- Elevated insider trading activity (17 Form 4 filings in 90 days) warrants monitoring for potential signaling concerns
- 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 trajectory and cost structure optimization progress
- Organic revenue growth acceleration from current 3.6% YoY rate
- Return on assets and equity improvement as company scales operations
- Cash flow sustainability and capital allocation strategy with substantial 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $115.1M | -$7.4M | $-0.08 |
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 Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARLO's key strengths?
Claude: Exceptional free cash flow generation of 75.9M with 14.3% FCF margin indicating strong cash conversion. Fortress balance sheet with 146.4M cash, zero long-term debt, and healthy 1.51x current ratio. 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: Weak operating margin of 1.1% despite 44% gross margins indicates high operating expenses relative to revenue. Modest revenue growth of 3.6% YoY suggests limited organic growth momentum in core business. 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 $529.3M.
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 $0.14.
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 rating reflects both perspectives for balanced insights.
Is ARLO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Arlo Technologies, Inc. has a BUY rating 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 11.7% (sector avg: 16%), net margin of 2.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ARLO stock in 2026?
Our dual AI analysis gives Arlo Technologies, Inc. a combined BUY rating 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 $78.7M, with capital expenditures of $2.8M. FCF margin is 14.3%.
How does ARLO compare to other Services stocks?
Vs Services sector averages: Net margin 2.8% (avg: 10%), ROE 11.7% (avg: 16%), current ratio 1.51 (avg: 1.5).