Arlo Authorizes $100 Million Share Buyback Through 2028
Key Facts
Arlo Technologies’ board authorized a program to repurchase up to $100 million of its common stock through December 31, 2028, according to a report published by Investing.com on October 27, 2026. Chief Executive Matthew McRae said the program reflects the company’s commitment to delivering shareholder value while continuing to invest in other areas of its capital allocation plan. The company said the authorization is based on management’s belief that its shares are undervalued relative to their long-term value. The program’s cap does not mean the company will repurchase the full amount or make purchases immediately. The pace of execution will depend on cost and market conditions, including the share price and trading volume.
The company said purchases will be made in the open market, taking economic cost and prevailing conditions into account, including relative prices and trading volumes in its common stock. They are expected to be conducted under Rule 10b-18, which governs the timing, volume and manner of repurchases. Thus, $100 million remains the authorization’s maximum amount, while the amount actually spent will depend on execution decisions and market conditions. The company said the program is expected to continue through December 31, 2028, unless the board decides to extend or shorten it. This gives the board flexibility to determine the program’s duration as it sees fit.
The announcement came a day after the stock’s latest available close in the cited data: ARLO shares ended the October 26 session at $12.38, compared with a close of $13.03 on October 23. The report on the authorization was published on October 27, so the available prices do not establish the stock’s movement after the announcement or its response to it. An initial version of the news report attributed a rise to the announcement, but the recorded close before its publication was below the previous available close. The data did not include verified figures for the stock’s session high or low on October 26. The account of the stock’s move here is therefore limited to the recorded closing prices before the announcement.
The new authorization follows Arlo’s repurchase of $22 million in shares during the second quarter of 2026 under a previously authorized $50 million program. In the same quarter, the company posted record revenue of $156 million, up 21% year over year. Subscription and services revenue reached a record $93 million, up 19% from the same period a year earlier. Cumulative paid accounts also reached 6.3 million, growing 23.2% year over year. These figures put the subscription and services business at the center of the company’s financial backdrop to the decision to return capital to shareholders.
On profitability, Arlo reported second-quarter GAAP net income of $3 million and diluted earnings per share of $0.03. Non-GAAP earnings per share were $0.28 for the same period. The company had forecast third-quarter revenue of between $140 million and $150 million, and non-GAAP earnings per share of between $0.17 and $0.23. It is scheduled to report third-quarter results on November 5, 2026, after the market closes. The company scheduled its investor and analyst call for that day at 5 p.m. Eastern time.