Arlo Posts Record Q2 Revenue of $156M and Lifts Full-Year Outlook

summarizeSummary

Arlo Technologies posted record Q2 revenue of $156 million, up 21% year-over-year, driven by 19% growth in subscription and services revenue. The company raised its full-year guidance and repurchased $22 million in stock.

check_boxKey Events · Earnings and Guidance · ARLO

• Record Revenue and Profitability

  Total revenue reached $156 million, a 21% increase year-over-year, with subscription and services revenue hitting a record $93 million (19% growth). GAAP net income was $3 million, and adjusted EBITDA surged 70% to a record $31 million.

• Raised Full-Year Guidance

  Arlo increased its 2026 outlook to revenue of $580–$600 million and non-GAAP EPS of $0.90–$1.00, up from prior implied ranges, reflecting confidence in continued growth.

• Subscription Momentum and Margin Expansion

  Paid accounts grew 23% to 6.3 million, driving annual recurring revenue (ARR) to $365 million. Non-GAAP gross margin expanded 480 basis points to a record 50.6%, led by an 84.1% subscription gross margin.

• Share Repurchases

  The company bought back $22 million of common stock in Q2 under its $50 million authorization, returning capital to shareholders amid strong cash generation.

auto_awesomeAnalysis · ARLO · Trade & Services

A standout quarter for Arlo featured record revenue, surging subscription growth, and expanding margins. The full-year outlook was raised, signaling confidence in sustained momentum. These results reinforce the shift toward a high-margin recurring revenue model, with paid accounts up 23% and ARR hitting $365 million. The $22 million in buybacks during the quarter adds a shareholder-friendly element, though the stock is already up sharply year-to-date.