Arlo Technologies Reports Q2 2025 Revenue of $129.4 Million and Net Income Turnaround

Arlo Technologies, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $129.4 million, a slight increase of 1.5% from $127.4 million in the same period last year. For the first half of 2025, revenue totaled $248.5 million, down 1.3% from $251.6 million in the prior year. The company achieved a net income of $3.1 million for the quarter, compared to a net loss of $11.6 million in the second quarter of 2024. This marks a significant turnaround in profitability, with the year-to-date net income reaching $2.3 million, a recovery from a loss of $21.2 million in the first half of 2024.

The increase in revenue was primarily driven by a 29.7% rise in subscriptions and services revenue, which reached $78.2 million, attributed to a 28.5% increase in cumulative paid accounts. However, product revenue declined by 23.7% to $51.2 million, largely due to decreased sales in the EMEA region and lower average selling prices as the company increased promotional activities. The gross profit for the quarter was $58.1 million, up 23.9% from the previous year, reflecting improved margins in subscription services despite a loss in product gross profit.

Operationally, Arlo reported approximately 11.2 million cumulative registered accounts and 5.1 million cumulative paid subscribers as of June 29, 2025, representing increases of 12.5% and 28.5%, respectively, compared to the previous year. The company’s annual recurring revenue (ARR) also grew by 34.3% to $315.7 million, indicating strong demand for its subscription services. The company continues to focus on expanding its user base and enhancing its product offerings, with plans to increase investments in research and development.

In terms of financial position, Arlo's total assets increased to $319.7 million as of June 29, 2025, up from $298.4 million at the end of 2024. The company reported cash and cash equivalents of $71.2 million, alongside short-term investments of $89.2 million. Total liabilities rose to $201.5 million, with a notable increase in deferred revenue, which grew by 54.5% to $42.1 million, reflecting the growth in subscription services. The company’s stockholders' equity also improved, reaching $118.3 million, compared to $100.9 million at the end of the previous fiscal year.

Looking ahead, Arlo Technologies aims to continue its growth trajectory by enhancing its product lineup and expanding its market presence. The company plans to invest further in marketing and product development to drive demand and increase its subscription revenue. Despite the challenges posed by global economic conditions and competitive pressures, Arlo remains optimistic about its future performance and the potential for continued improvement in profitability and market share.