Arlo Technologies (NYSE:ARLO) Shares Gap Up Following Strong Earnings

Arlo Technologies, Inc. (NYSE:ARLO)’s stock price gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $12.34, but opened at $14.58. Arlo Technologies shares last traded at $15.70, with a volume of 1,936,298 shares traded.

The company reported $0.22 earnings per share for the quarter, beating analysts’ consensus estimates of $0.16 by $0.06. Arlo Technologies had a return on equity of 11.01% and a net margin of 2.82%.The business had revenue of $141.30 million for the quarter, compared to analysts’ expectations of $135.57 million. During the same quarter in the prior year, the business earned $0.10 EPS. The firm’s revenue for the quarter was up 16.2% on a year-over-year basis. Arlo Technologies has set its Q1 2026 guidance at 0.170-0.230 EPS.

Arlo Technologies News Summary

Here are the key news stories impacting Arlo Technologies this week:

• Positive Sentiment: Q4 beat: Arlo reported $0.22 EPS vs. $0.16 expected and revenue of $141.3M vs. ~$135.6M expected, driving the immediate positive reaction. Zacks: ARLO Q4 Earnings
• Positive Sentiment: Subscription & ARR acceleration: Subscription sales surged ~39% y/y with ARR and subscriptions up ~30%, and management highlighted a large improvement in non‑GAAP gross margins — evidence that recurring revenue is lifting profitability. BusinessWire: Q4 & Full-Year Results
• Positive Sentiment: Raised near-term guide: Arlo gave Q1 FY2026 EPS guidance of $0.170–$0.230 (consensus ~$0.12) and revenue guidance above Street forecasts, signaling confidence in demand and margin trends. MarketBeat: Guidance & Call
• Neutral Sentiment: Earnings call & transcript highlight strategy: Management emphasized product roadmap, privacy positioning and subscription bundling as growth drivers — items that support the thesis but will take time to fully monetize. Yahoo: Q4 Transcript
• Neutral Sentiment: Analyst previews and coverage: Several outlets flagged the company’s “privacy edge” narrative heading into earnings—interesting for differentiation but not an immediate financial catalyst. Investing.com: Privacy Angle
• Negative Sentiment: Valuation and profitability caveats: Trailing P/E is extremely high and reported net margin/ROE remain modest (net margin ~0.8%, ROE ~2%), while some consensus figures still show a negative full‑year EPS view—risks if subscription growth slows. MarketBeat: Stock Metrics

Wall Street Analysts Forecast Growth

Several research firms have weighed in on ARLO. BWS Financial reissued a “buy” rating and issued a $26.00 price target on shares of Arlo Technologies in a report on Tuesday, November 11th. Zacks Research downgraded Arlo Technologies from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 6th. Finally, Weiss Ratings lowered Arlo Technologies from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, February 20th. Three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Arlo Technologies currently has an average rating of “Hold” and a consensus target price of $23.33.

Insider Buying and Selling at Arlo Technologies

In other Arlo Technologies news, CEO Matthew Blake Mcrae sold 257,242 shares of the company’s stock in a transaction on Monday, December 1st. The stock was sold at an average price of $14.28, for a total transaction of $3,673,415.76. Following the completion of the sale, the chief executive officer directly owned 941,586 shares in the company, valued at $13,445,848.08. This represents a 21.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Kurtis Joseph Binder sold 55,043 shares of Arlo Technologies stock in a transaction on Friday, January 9th. The shares were sold at an average price of $13.69, for a total value of $753,538.67. Following the completion of the transaction, the chief financial officer owned 460,970 shares in the company, valued at approximately $6,310,679.30. The trade was a 10.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 684,286 shares of company stock worth $9,202,544 over the last three months. Corporate insiders own 5.20% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of ARLO. Smartleaf Asset Management LLC boosted its stake in shares of Arlo Technologies by 86.0% in the 3rd quarter. Smartleaf Asset Management LLC now owns 1,616 shares of the company’s stock valued at $28,000 after purchasing an additional 747 shares in the last quarter. Hantz Financial Services Inc. boosted its position in Arlo Technologies by 763.3% in the fourth quarter. Hantz Financial Services Inc. now owns 1,977 shares of the company’s stock valued at $28,000 after buying an additional 1,748 shares in the last quarter. Quarry LP grew its stake in shares of Arlo Technologies by 42.0% during the third quarter. Quarry LP now owns 2,649 shares of the company’s stock worth $45,000 after buying an additional 783 shares during the last quarter. First Horizon Advisors Inc. increased its holdings in shares of Arlo Technologies by 161.4% during the second quarter. First Horizon Advisors Inc. now owns 3,220 shares of the company’s stock worth $55,000 after buying an additional 1,988 shares in the last quarter. Finally, Strs Ohio acquired a new position in shares of Arlo Technologies during the first quarter worth $66,000. Institutional investors and hedge funds own 83.18% of the company’s stock.

Arlo Technologies Trading Up 27.6%

The company has a market capitalization of $1.67 billion, a P/E ratio of 121.09 and a beta of 1.66. The stock has a 50 day moving average price of $13.07 and a 200 day moving average price of $15.32.

Arlo Technologies Company Profile

Arlo Technologies, Inc (NYSE: ARLO) is a provider of smart home security products and services designed for residential and small business customers. The company offers a portfolio of wireless and Wi-Fi-enabled security cameras, video doorbells, smart lighting solutions, and associated accessories. Arlo integrates advanced video analytics, motion detection, cloud storage, and two-way audio capabilities to deliver end-to-end security and monitoring solutions accessible through mobile applications and web interfaces.

Founded as a division of Netgear, Inc in 2014 and spun off as an independent public company in 2018, Arlo Technologies has established a presence in North America, Europe, Australia and parts of Asia.