Arlo Posts $149.2 Million in Third-Quarter Revenue, Beating Estimates
Key Facts
Arlo Technologies reported third-quarter 2026 results on November 5, posting revenue of $149.2 million, above the $145.2 million average estimate of five analysts surveyed by Zacks, according to the Associated Press. Revenue reported in the company’s statement was $149.177 million for the period ended September 27. The results came after the market close, on the day the company said it would release results and hold a call to discuss them. The quarter’s key metrics centered on subscriptions and services, which reached a record and accounted for a large share of total revenue. The company also issued fourth-quarter guidance, setting ranges for revenue and non-GAAP earnings per share.
Subscription and services revenue was $96.0 million in the third quarter, up 20.1% year over year, according to Arlo’s statement. It represented 64.4% of the company’s total revenue for the quarter, making it more than three-fifths of the total. Chief Executive Matthew McRae said the company achieved 20% growth in subscription and services revenue, alongside an increase of more than 50% in adjusted EBITDA year over year. The statement puts services growth and adjusted profitability at the forefront of management’s presentation of the period’s results. The available reported figures did not provide further numerical detail on the components of adjusted EBITDA growth.
On a quarter-over-quarter basis, revenue fell from $155.937 million in the quarter ended June 28, 2026, to $149.177 million in the quarter ended September 27. It rose, however, from the year-earlier period, when revenue was $139.529 million in the quarter ended September 28, 2025. Revenue for the first nine months of 2026 reached $455.5 million, up 17.4% from the same period a year earlier. These comparisons show a decline from the previous quarter alongside year-over-year growth in both the quarter and the nine-month total. Compared with the estimate cited by the Associated Press, third-quarter revenue was above analysts’ average forecast of $145.2 million.
Arlo ended the quarter with annual recurring revenue of $369.9 million, up 14.5% year over year, the company said. Cumulative paid accounts rose to 6.6 million, up 23.1% from a year earlier. These metrics reflect an expanding paid-account base alongside growth in annual recurring revenue. As for shareholder returns, the company repurchased $14 million of common stock during the third quarter. It also announced a new authorization to repurchase up to $100 million in shares, effective through December 31, 2028.
The company forecast fourth-quarter 2026 revenue of $137 million to $147 million and non-GAAP earnings per share of $0.17 to $0.23. The guidance sets numerical ranges for the next period following third-quarter revenue of $149.2 million, while the available reported figures did not include a full-year forecast. Before the results announcement, ARLO shares closed at $15.22 on November 4, according to EL7 data. The company held its results call on November 5 at 5 p.m. Eastern time to discuss third-quarter results. The company said results would be released that day after the market close.