Arlo Guides $550–580M FY2026 Revenue After Q4 EBITDA Soars 138%
Arlo delivered Q4 revenue of $141 million with services revenue of $89 million (63% of sales), driving adjusted EBITDA of $23.3 million, up 138% year-over-year, and non-GAAP EPS of $0.22. For FY2026, management projected revenue of $550–580 million with services as over 65% of sales and non-GAAP EPS of $0.75–0.85.
1. Q4 Financial Results
Arlo posted Q4 revenue of $141 million, with services contributing $89 million (63% of total), driving adjusted EBITDA to $23.3 million—a 138% year-over-year increase—and non-GAAP EPS of $0.22, topping the company’s guidance range.
2. FY2026 Guidance
Management forecast FY2026 revenue between $550 million and $580 million, with services accounting for over 65% of sales and non-GAAP EPS of $0.75–0.85, while also authorizing a $50 million buyback and noting potential cost pressure from tariff uncertainty.
3. SaaS Metrics and Unit Economics
Annual recurring revenue reached $330 million, up 28% year-over-year, supported by a 1% monthly churn rate, ARPU of $15.30, LTV of $917 (LTV:CAC 4.0), and a subscription gross margin of approximately 84%, lifting consolidated non-GAAP gross margin to 47.8%.
4. Partnerships and Market Position
Key strategic tie-ups with ADT and Samsung SmartThings Safe Premium enhance Arlo’s SaaS footprint, while a major product launch of 109 SKUs—shipping over 800,000 units in 60 days—positions the company to capture share should U.S. import restrictions create openings.