Overview

* Arlo ( ARLO ) Q3 revenue slightly beats analyst expectations

* The maker of smart security cameras posts adjusted EPS that surpasses analyst estimates

* Record subscriptions and services revenue grows 29.2% yr/yr

Outlook

* Company projects Q4 2025 revenue between $131 mln and $141 mln

* Arlo expects Q4 2025 GAAP EPS between $0.00 and $0.06

* Company anticipates Q4 2025 non-GAAP EPS between $0.13 and $0.19

Result Drivers

* SERVICES BUSINESS - CEO attributes strong Q3 performance to growth in services business, with ARR up 33.8% yr/yr

* PRODUCT LAUNCHES - Co highlights comprehensive launch of refreshed product portfolio as a driver for future growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $139.53 $138.56

Revenue Beat* mln mln (4

Analysts

)

Q3 Beat $0.16 $0.15 (4

Adjusted Analysts

EPS )

Q3 Gross 40.50%

Margin

Q3 41.40%

Adjusted

Gross

Margin

Q3 ARR $323 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $22.00, about 19.5% above its November 5 closing price of $17.71

* The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release:

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(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.)