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

Arlo Technologies, Inc. (NYSE:ARLO) gapped up prior to trading on Friday following a better than expected earnings announcement. 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 changing hands.

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

Key Arlo Technologies News

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

Analyst Ratings Changes

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

Insider Buying and Selling at Arlo Technologies

In related news, CFO Kurtis Joseph Binder sold 55,043 shares of the company’s stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $13.69, for a total value of $753,538.67. Following the sale, the chief financial officer owned 460,970 shares in the company, valued at $6,310,679.30. This represents a 10.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Matthew Blake Mcrae sold 95,326 shares of the stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $12.29, for a total transaction of $1,171,556.54. Following the completion of the transaction, the chief executive officer owned 1,011,288 shares in the company, valued at approximately $12,428,729.52. This trade represents a 8.61% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 684,286 shares of company stock worth $9,202,544. 5.20% of the stock is currently owned by insiders.

Institutional Trading of Arlo Technologies

Large investors have recently made changes to their positions in the business. Smartleaf Asset Management LLC raised its holdings in shares of Arlo Technologies by 86.0% during the third quarter. Smartleaf Asset Management LLC now owns 1,616 shares of the company’s stock worth $28,000 after purchasing an additional 747 shares during the last quarter. Hantz Financial Services Inc. grew its position in Arlo Technologies by 763.3% during the 4th quarter. Hantz Financial Services Inc. now owns 1,977 shares of the company’s stock worth $28,000 after purchasing an additional 1,748 shares during the period. Quarry LP raised its stake in shares of Arlo Technologies by 42.0% during the 3rd quarter. Quarry LP now owns 2,649 shares of the company’s stock valued at $45,000 after buying an additional 783 shares during the last quarter. First Horizon Advisors Inc. raised its stake in shares of Arlo Technologies by 161.4% during the 2nd quarter. First Horizon Advisors Inc. now owns 3,220 shares of the company’s stock valued at $55,000 after buying an additional 1,988 shares during the last quarter. Finally, Quadrant Capital Group LLC acquired a new position in shares of Arlo Technologies in the 3rd quarter valued at about $86,000. 83.18% of the stock is owned by hedge funds and other institutional investors.

Arlo Technologies Stock Up 27.6%

The stock has a market cap of $1.67 billion, a PE ratio of 121.09 and a beta of 1.66. The business has a 50 day moving average price of $13.07 and a 200 day moving average price of $15.30.

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.