Arlo Technologies Reports Q1 2025 Revenue of $119.1 Million, Net Loss Improves

Arlo Technologies, Inc. reported its financial results for the first quarter of 2025, revealing total revenue of $119.1 million, a decrease of 4.1% from $124.2 million in the same period last year. The decline was primarily attributed to a significant drop in product sales, which fell by 25.6% to $50.2 million, while subscription and service revenue increased by 21.4% to $68.8 million. The company recorded a net loss of $835,000, or $(0.01) per share, compared to a net loss of $9.6 million, or $(0.10) per share, in the prior year, indicating improved profitability.

In terms of operational metrics, Arlo's cumulative registered accounts reached approximately 10.9 million, reflecting a 19.2% increase year-over-year, while cumulative paid accounts surged by 51.4% to 4.9 million. The annual recurring revenue (ARR) also rose by 21.8% to $276.4 million, driven by the growth in paid subscriptions. The company’s cash and cash equivalents, along with short-term investments, totaled $153.1 million as of March 30, 2025, with an unused borrowing capacity of $45 million under its credit agreement.

Arlo's strategic initiatives included a focus on enhancing its subscription services, which contributed to the increase in subscription revenue. The company also engaged in a stock repurchase program, repurchasing 1.4 million shares for $15.2 million during the quarter, leaving $30.3 million available for future repurchases. Additionally, the company made a strategic long-term investment of $12.5 million in a privately-held company, which is expected to bolster its market position.

Geographically, revenue from the Americas increased significantly by 22.6% to $70.1 million, while revenue from the EMEA region decreased by 30.1% to $42.9 million, largely due to seasonal demand fluctuations from its largest customer. The Asia Pacific region saw a modest increase of 7.5% to $6.1 million. The company continues to focus on expanding its market presence and enhancing product offerings to drive future growth.

Looking ahead, Arlo Technologies plans to increase its investment in research and development to foster innovation and product development. The company anticipates that its sales and marketing expenses will rise as it seeks to drive demand for its products and services. Despite the challenges posed by global economic conditions, Arlo remains optimistic about its growth trajectory, emphasizing its commitment to enhancing its security solutions and expanding its user base.