Arlo Technologies Financials
This page shows Arlo Technologies (ARLO) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 9 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Arlo’s turnaround in FY2025 came from better economics per sale and stronger cash collection, not just more revenue.
In FY2025, operating cash flow of$78.7M ran far ahead of net income at$14.9M , so the move into profitability also came with unusually strong cash conversion. That gap lines up with accounts receivable shrinking to$39.7M from$57.3M , meaning collections on prior sales amplified cash generation beyond what the income statement alone shows.
Revenue rose only
Cash finished FY2025 at
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Arlo Technologies's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Arlo Technologies has an operating margin of 1.1%, meaning the company retains $1 of operating profit per $100 of revenue. This below-average margin results in a low score of 17/100, suggesting thin profitability after operating expenses. This is up from -6.8% the prior year.
Arlo Technologies's revenue grew a modest 3.6% year-over-year to $529.3M. This slow but positive growth earns a score of 40/100.
Arlo Technologies carries a low D/E ratio of 1.43, meaning only $1.43 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 73/100, indicating a strong balance sheet with room for future borrowing.
Arlo Technologies's current ratio of 1.51 is below the typical benchmark, resulting in a score of 26/100. However, the company holds substantial cash reserves (85% of current liabilities), which buffers actual liquidity risk. Large mature operators often run tight current ratios by design.
Arlo Technologies generates a 11.7% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100. This is up from -30.2% the prior year.
Arlo Technologies scores 4.92, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($1.4B) relative to total liabilities ($182.7M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Arlo Technologies passes 6 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Arlo Technologies generates $5.27 in operating cash flow ($78.7M OCF vs $14.9M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Arlo Technologies generated $529.3M in revenue in fiscal year 2025. This represents an increase of 3.6% from the prior year.
Arlo Technologies's EBITDA was $10.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 131.6% from the prior year.
Arlo Technologies reported $14.9M in net income in fiscal year 2025. This represents an increase of 148.9% from the prior year.
Arlo Technologies earned $0.14 per diluted share (EPS) in fiscal year 2025. This represents an increase of 145.2% from the prior year.
Cash & Balance Sheet
Arlo Technologies held $146.4M in cash against $0 in long-term debt as of fiscal year 2025.
Arlo Technologies had 105M shares outstanding in fiscal year 2025. This represents an increase of 4.1% from the prior year.
Margins & Returns
Arlo Technologies's gross margin was 44.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 7.3 percentage points from the prior year.
Arlo Technologies's operating margin was 1.1% in fiscal year 2025, reflecting core business profitability. This is up 8.0 percentage points from the prior year.
Arlo Technologies's net profit margin was 2.8% in fiscal year 2025, showing the share of revenue converted to profit. This is up 8.8 percentage points from the prior year.
Arlo Technologies's ROE was 11.7% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 41.9 percentage points from the prior year.
Capital Allocation
Arlo Technologies invested $73.7M in research and development in fiscal year 2025. This represents an increase of 0.6% from the prior year.
Arlo Technologies spent $45.6M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 931.4% from the prior year.
ARLO Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $150.4M+6.4% | $141.3M+1.3% | $139.5M+7.8% | $129.4M+8.7% | $119.1M-2.1% | $121.6M-11.7% | $137.7M+8.0% | $127.4M |
| Cost of Revenue | $77.7M+2.6% | $75.8M-8.7% | $83.0M+16.4% | $71.3M+7.5% | $66.3M-13.5% | $76.7M-14.0% | $89.3M+10.7% | $80.6M |
| Gross Profit | $72.7M+10.9% | $65.5M+16.0% | $56.5M-2.7% | $58.1M+10.1% | $52.7M+17.6% | $44.9M-7.4% | $48.4M+3.3% | $46.9M |
| R&D Expenses | $22.8M+9.4% | $20.9M+14.9% | $18.1M-1.9% | $18.5M+14.4% | $16.2M+5.9% | $15.3M-13.1% | $17.6M-10.2% | $19.6M |
| SG&A Expenses | $18.2M+7.8% | $16.9M+11.9% | $15.1M-7.6% | $16.3M-8.2% | $17.8M+24.3% | $14.3M-16.1% | $17.1M-20.4% | $21.4M |
| Operating Income | $7.6M+60.2% | $4.7M+440.9% | $872K-54.9% | $1.9M+233.2% | -$1.5M+75.9% | -$6.0M-10.5% | -$5.5M+57.4% | -$12.8M |
| Interest Expense | $59K | N/A | N/A | N/A | N/A | N/A | $1.4M-6.4% | $1.5M |
| Income Tax | $415K+22.4% | $339K+120.1% | $154K+160.6% | -$254K-150.6% | $502K+280.3% | $132K-59.9% | $329K+39.4% | $236K |
| Net Income | $14.9M+158.1% | $5.8M-16.1% | $6.9M+120.0% | $3.1M+474.1% | -$835K+82.8% | -$4.9M-9.5% | -$4.4M+61.6% | -$11.6M |
| EPS (Diluted) | $0.13 | N/A | $0.06+100.0% | $0.03+400.0% | $-0.01 | N/A | $-0.04+66.7% | $-0.12 |
ARLO Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $360.2M+16.0% | $310.5M-11.5% | $350.9M+9.7% | $319.7M+7.8% | $296.6M-0.6% | $298.4M-4.5% | $312.4M+5.6% | $295.8M |
| Current Assets | $275.7M+5.8% | $260.5M-13.7% | $301.7M+12.3% | $268.6M+9.0% | $246.3M-6.2% | $262.6M-6.1% | $279.5M+6.2% | $263.2M |
| Cash & Equivalents | $152.6M+4.2% | $146.4M+70.3% | $86.0M+20.7% | $71.2M-15.2% | $84.0M+2.4% | $82.0M+6.5% | $77.0M+22.4% | $62.9M |
| Inventory | $44.0M+6.7% | $41.2M-7.2% | $44.4M+43.7% | $30.9M-10.7% | $34.6M-14.9% | $40.6M-21.8% | $52.0M+14.9% | $45.2M |
| Accounts Receivable | $52.2M+31.5% | $39.7M-48.3% | $76.7M+24.8% | $61.5M+33.4% | $46.1M-19.7% | $57.3M-16.4% | $68.6M+11.0% | $61.7M |
| Goodwill | $38.5M+249.2% | $11.0M0.0% | $11.0M0.0% | $11.0M0.0% | $11.0M0.0% | $11.0M0.0% | $11.0M0.0% | $11.0M |
| Total Liabilities | $200.8M+9.9% | $182.7M-17.6% | $221.6M+10.0% | $201.5M+4.3% | $193.2M-2.2% | $197.5M-8.3% | $215.5M+9.6% | $196.5M |
| Current Liabilities | $181.7M+5.4% | $172.3M-18.8% | $212.2M+16.4% | $182.3M+5.1% | $173.4M-1.9% | $176.8M-10.4% | $197.3M+11.1% | $177.6M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $159.4M+24.7% | $127.8M-1.1% | $129.2M+9.3% | $118.3M+14.4% | $103.4M+2.4% | $100.9M+4.1% | $96.9M-2.4% | $99.3M |
| Retained Earnings | -$368.2M+3.9% | -$383.0M+1.5% | -$388.8M+1.7% | -$395.7M+0.8% | -$398.8M-0.2% | -$398.0M-1.2% | -$393.1M-1.1% | -$388.7M |
ARLO Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $27.9M+40.9% | $19.8M+3.0% | $19.2M+117.5% | $8.8M-71.4% | $30.9M+363.4% | $6.7M-63.7% | $18.4M+184.2% | $6.5M |
| Capital Expenditures | N/A | N/A | N/A | N/A | $2.8M+160.5% | $1.1M+12.0% | $961K+225.8% | $295K |
| Free Cash Flow | N/A | N/A | N/A | N/A | $28.1M+402.4% | $5.6M-67.8% | $17.4M+182.2% | $6.2M |
| Investing Cash Flow | -$14.3M-124.6% | $58.2M+832.4% | $6.2M+128.0% | -$22.3M-55.5% | -$14.4M-3589.5% | -$389K-103.4% | $11.5M+6584.3% | $172K |
| Financing Cash Flow | -$7.3M+58.1% | -$17.5M-64.2% | -$10.7M-1580.6% | $721K+104.9% | -$14.6M-195.5% | -$4.9M+68.6% | -$15.7M-148.9% | -$6.3M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $7.3M-60.9% | $18.8M+75.9% | $10.7M+1073.1% | $910K-94.0% | $15.2M+244.7% | $4.4M | $0 | $0 |
ARLO Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 48.3%+1.9pp | 46.4%+5.9pp | 40.5%-4.4pp | 44.9%+0.6pp | 44.3%+7.4pp | 36.9%+1.7pp | 35.2%-1.6pp | 36.8% |
| Operating Margin | 5.0%+1.7pp | 3.3%+2.7pp | 0.6%-0.9pp | 1.5%+2.7pp | -1.2%+3.7pp | -5.0%-1.0pp | -4.0%+6.1pp | -10.0% |
| Net Margin | 9.9%+5.8pp | 4.1%-0.8pp | 4.9%+2.5pp | 2.4%+3.1pp | -0.7%+3.3pp | -4.0%-0.8pp | -3.2%+5.9pp | -9.1% |
| Return on Equity | 9.3%+4.8pp | 4.5%-0.8pp | 5.3%+2.7pp | 2.6%+3.5pp | -0.8%+4.0pp | -4.8%-0.2pp | -4.6%+7.1pp | -11.7% |
| Return on Assets | 4.1%+2.3pp | 1.9%-0.1pp | 2.0%+1.0pp | 1.0%+1.3pp | -0.3%+1.3pp | -1.6%-0.2pp | -1.4%+2.5pp | -3.9% |
| Current Ratio | 1.520.0 | 1.51+0.1 | 1.42-0.1 | 1.47+0.1 | 1.42-0.1 | 1.49+0.1 | 1.42-0.1 | 1.48 |
| Debt-to-Equity | 1.26-0.2 | 1.43-0.3 | 1.72+0.0 | 1.70-0.2 | 1.87-0.1 | 1.96-0.3 | 2.22+0.2 | 1.98 |
| FCF Margin | N/A | N/A | N/A | N/A | 23.6%+19.0pp | 4.6%-8.0pp | 12.6%+7.8pp | 4.8% |
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Frequently Asked Questions
What is Arlo Technologies's annual revenue?
Arlo Technologies (ARLO) reported $529.3M in total revenue for fiscal year 2025. This represents a 3.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Arlo Technologies's revenue growing?
Arlo Technologies (ARLO) revenue grew by 3.6% year-over-year, from $510.9M to $529.3M in fiscal year 2025.
Is Arlo Technologies profitable?
Yes, Arlo Technologies (ARLO) reported a net income of $14.9M in fiscal year 2025, with a net profit margin of 2.8%.
What is Arlo Technologies's EBITDA?
Arlo Technologies (ARLO) had EBITDA of $10.0M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Arlo Technologies's gross margin?
Arlo Technologies (ARLO) had a gross margin of 44.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Arlo Technologies's operating margin?
Arlo Technologies (ARLO) had an operating margin of 1.1% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Arlo Technologies's net profit margin?
Arlo Technologies (ARLO) had a net profit margin of 2.8% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Arlo Technologies's return on equity (ROE)?
Arlo Technologies (ARLO) has a return on equity of 11.7% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Arlo Technologies's operating cash flow?
Arlo Technologies (ARLO) generated $78.7M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Arlo Technologies's total assets?
Arlo Technologies (ARLO) had $310.5M in total assets as of fiscal year 2025, including both current and long-term assets.
How much does Arlo Technologies spend on research and development?
Arlo Technologies (ARLO) invested $73.7M in research and development during fiscal year 2025.
What is Arlo Technologies's current ratio?
Arlo Technologies (ARLO) had a current ratio of 1.51 as of fiscal year 2025, which is generally considered healthy.
What is Arlo Technologies's debt-to-equity ratio?
Arlo Technologies (ARLO) had a debt-to-equity ratio of 1.43 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Arlo Technologies's return on assets (ROA)?
Arlo Technologies (ARLO) had a return on assets of 4.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Arlo Technologies's Altman Z-Score?
Arlo Technologies (ARLO) has an Altman Z-Score of 4.92, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Arlo Technologies's Piotroski F-Score?
Arlo Technologies (ARLO) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Arlo Technologies's earnings high quality?
Arlo Technologies (ARLO) has an earnings quality ratio of 5.27x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Arlo Technologies?
Arlo Technologies (ARLO) scores 34 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.