Arlo Guides 2026 Revenue to $550–580M, Services to Exceed 65% of Sales
Arlo reported Q4 revenue of $141 million with services revenue of $89 million, representing 63% of sales and driving a consolidated non-GAAP gross margin of 47.8%, while ARR rose 28% to $330 million. Management guided 2026 revenue of $550–580 million with services over 65% of sales and EPS of $0.75–0.85.
1. Q4 Financial Performance
Arlo delivered Q4 revenue of $141 million with services revenue of $89 million, accounting for 63% of total sales. Consolidated non-GAAP gross margin reached 47.8%, up over 1,000 basis points year-over-year, while annual recurring revenue climbed 28% to $330 million.
2. Full-Year 2025 Results
For full-year 2025 Arlo generated $530 million in revenue within its guidance range, with subscriptions and services accounting for $316 million or 60% of sales, up 30% year-over-year. Adjusted EBITDA rose 85% to $74.7 million and free cash flow increased 38% to $66.9 million, supporting 5.7 million paid accounts.
3. 2026 Outlook and Strategic Initiatives
Management set 2026 revenue guidance at $550–580 million with services representing over 65% of sales and non-GAAP EPS of $0.75–0.85. The board approved a $50 million share buyback, and company highlighted strategic partnerships with ADT, Samsung SmartThings and Comcast while flagging ongoing tariff uncertainty.