Overview

* Arlo ( ARLO ) Q2 revenue of $129.4 mln beat analyst expectations, per LSEG data

* Adjusted EPS for Q2 was $0.17, exceeding analyst estimates, per LSEG data

* ARR grew 34% yr/yr to $316 mln, driven by new AI platform

Outlook

* Arlo expects Q3 2025 revenue between $133 mln and $143 mln

* Company forecasts Q3 GAAP EPS of $0.04 to $0.10

* Arlo ( ARLO ) anticipates Q3 non-GAAP EPS between $0.12 and $0.18

Result Drivers

* AI PLATFORM - Launch of Arlo Secure 6 drove growth in subscriptions, boosting revenue and ARR, per CEO Matthew McRae

* SUBSCRIPTION GROWTH - Subscriptions and services revenue rose 30% to $78 mln, accounting for 60.4% of total revenues

* STRATEGIC PARTNERSHIP - Partnership with ADT and holiday product launches expected to sustain growth momentum

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $129.40 $123.50

Revenue mln mln (5

Analysts

)

Q2 Beat $0.17 $0.15 (5

Adjusted Analysts

EPS )

Q2 Gross 44.9%

Margin

Q2 45.8%

Adjusted

Gross

Margin

Q2 ARR $316 mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the computer & electronics retailers peer group is "buy"

* Wall Street's median 12-month price target for Arlo Technologies Inc ( ARLO ) is $19.50, about 17.4% above its August 6 closing price of $16.10

* The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)