Arlo Technologies, Inc. reported significant financial growth in its latest quarterly results, with total revenue reaching $150.4 million for the three months ended March 29, 2026, a 26.3% increase from $119.1 million in the same period last year. The company’s net income was $14.9 million, compared to a net loss of $0.8 million in the prior year, marking a substantial turnaround in profitability. This improvement was driven by a 30.9% increase in subscriptions and services revenue, which totaled $90.1 million, and a 20.0% rise in product sales, amounting to $60.3 million.
The company’s balance sheet also showed notable changes, with total assets increasing to $360.2 million from $310.5 million at the end of 2025. Cash and cash equivalents rose to $152.6 million, while accounts receivable increased by 31.5% to $52.2 million, reflecting higher sales. Arlo's accumulated deficit decreased to $368.2 million from $383.0 million, indicating progress in financial health. The company also reported a 40.5% increase in deferred revenue, which reached $52.2 million, suggesting strong future revenue potential from subscriptions.
Strategically, Arlo has expanded its market presence through acquisitions, including the purchase of Canary Connect, Inc. for $48.9 million, aimed at enhancing its offerings in the AI-driven smart home security market. Additionally, the company announced a merger with Aloe Care Health, Inc. to bolster its AI-powered services for aging-in-place care. These acquisitions are expected to contribute to Arlo's growth and innovation in the security technology sector.
Operationally, Arlo reported approximately 13.1 million cumulative registered accounts and 6.0 million cumulative paid accounts, representing increases of 19.4% and 22.6%, respectively, year-over-year. The annual recurring revenue (ARR) also grew by 29.2% to $356.9 million. The company operates across three geographic regions: the Americas, EMEA, and APAC, with the Americas contributing the largest share of revenue at $84.0 million, up 19.8% from the previous year.
Looking ahead, Arlo plans to continue investing in research and development to drive innovation and expand its product offerings. The company anticipates increased sales and marketing expenses to support demand generation for its products and services. Despite the positive outlook, Arlo remains cautious about potential impacts from global economic conditions, including tariffs and inflation, which could affect supply chains and consumer demand. The company believes its existing liquidity, including $167.5 million in cash and short-term investments, will be sufficient to meet its operational needs for the foreseeable future.
About Arlo Technologies, Inc.
Arlo Technologies, Inc. designs and sells smart security devices and subscription services for home, business, and personal safety. Its product portfolio includes Wi-Fi and LTE-enabled cameras, video doorbells, floodlight cameras, and multi-sensor security systems, supported by AI-powered cloud-based monitoring and analytics. Serving consumers, small businesses, and security providers globally, Arlo integrates with major IoT platforms, offering scalable, user-friendly security solutions through retail, wholesale, and direct channels.
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