(ARLO) Arlo Technologies - NYSE
Sector: Industrials | Industry: Building Products & Equipment | Exchange: NYSE (USA) | Market Cap: 1.436m USD | Total Return: -27.8% in 12m
Avg Turnover: 14.0M
Qual. Beats: 1
Rev. Trend: 83.0%
Qual. Beats: 2
Warnings
Tailwinds
No distinct edge detected
Seasonality
Arlo Technologies (NYSE: ARLO) is a Carlsbad, California-based company that provides cloud-based smart home security solutions, selling wireless cameras, video doorbells, floodlight cameras, and an integrated home security system across the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company generates revenue through two main channels: hardware sales (retail, wholesale, carriers, and its own website) and recurring subscription services such as Arlo Secure, Arlo Total Security (which bundles professional monitoring with hardware), the personal safety app Arlo Safe, and Arlo SmartCloud, a SaaS offering for businesses.
The business operates within the consumer smart home security and connected devices segment of the information technology sector, following a hardware-plus-subscription model in which device sales serve as the customer acquisition funnel for higher-margin cloud monitoring, AI-based object detection, and professional monitoring services. Arlo competes in a market that has increasingly attracted large platform players, and its financial performance is sensitive to consumer demand for connected home products as well as subscriber growth and retention.
- Arlo Secure subscriber growth lifts recurring revenue and gross margins
- Competition from Amazon Ring and Google Nest pressures pricing and market share
- Consumer discretionary spending weakness threatens camera hardware unit demand
| Net Income: 30.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.25 > 0.02 and ΔFCF/TA 10.08 > 1.0 |
| NWC/Revenue: 16.76% < 20% (prev 14.43%; Δ 2.33% < -1%) |
| CFO/TA 0.21 > 3% & CFO 75.7m > Net Income 30.6m |
| Net Debt (-159.4m) to EBITDA (36.1m): -4.42 < 3 |
| Current Ratio: 1.52 > 1.5 & < 3 |
| Outstanding Shares: last quarter (110.5m) vs 12m ago 8.09% < -2% |
| Gross Margin: 45.09% > 18% (prev 38.13%; Δ 6.96% > 0.5%) |
| Asset Turnover: 170.7% > 50% (prev 170.5%; Δ 0.19% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.26 (Total Current Assets 275.7m - Total Current Liabilities 181.7m) / Total Assets 360.2m |
| B: -1.02 (Retained Earnings -368.2m / Total Assets 360.2m) |
| C: 0.10 (EBIT TTM 31.3m / Avg Total Assets 328.4m) |
| D: 0.79 (Book Value of Equity 159.4m / Total Liabilities 200.8m) |
| Altman-Z'' = -0.15 = B |
| DSRI: 1.02 (Receivables 52.2m/46.1m, Revenue 560.6m/505.8m) |
| GMI: 0.85 (GM 38.13% / 45.09%) |
| AQI: 1.80 (AQ_t 0.17 / AQ_t-1 0.10) |
| SGI: 1.11 (Revenue 560.6m / 505.8m) |
| TATA: -0.13 (NI 30.6m - CFO 75.7m) / TA 360.2m) |
| Beneish M = -2.61 (Cap -4..+1) = A |
As of June 28, 2026, the stock is trading at USD 12.53 with a total of 3,116,963 shares traded. Over the past week, the price has changed by -4.06%, over one month by -6.98%, over three months by -11.88% and over the past year by -27.82%.
Current recommended Stop Loss: 11.50 (which is 8.2% or 1.8 ATR below the current price).
Arlo Technologies has received a consensus analysts rating of 4.40. Therefore, it is recommended to buy ARLO.
- StrongBuy: 2
- Buy: 3
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 21.4 | 70.8% |
P/E Trailing = 47.2143
P/E Forward = 15.1976
P/S = 2.5612
P/B = 9.0076
P/EG = 0.6078
Revenue TTM = 560.6m USD
EBIT TTM = 31.3m USD
EBITDA TTM = 36.1m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 6.23m USD (from shortLongTermDebtTotal, last quarter) (leases 6.23m already included)
Net Debt = -159.4m USD (calculated: Debt 6.23m - CCE 165.6m)
Enterprise Value = 1.28b USD (1.44b + Debt 6.23m - CCE 165.6m)
Interest Coverage Ratio = unknown (Ebit TTM 31.3m / Interest Expense TTM 0.0)
EV/FCF = 14.33x (Enterprise Value 1.28b / FCF TTM 89.0m)
FCF Yield = 6.98% (FCF TTM 89.0m / Enterprise Value 1.28b)
FCF Margin = 15.88% (FCF TTM 89.0m / Revenue TTM 560.6m)
Net Margin = 5.47% (Net Income TTM 30.6m / Revenue TTM 560.6m)
Gross Margin = 45.09% ((Revenue TTM 560.6m - Cost of Revenue TTM 307.8m) / Revenue TTM)
Gross Margin QoQ = 48.32% (prev 46.38%)
Tobins Q-Ratio = 3.54 (Enterprise Value 1.28b / Total Assets 360.2m)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 6.23m)
Taxrate = 2.09% (654k / 31.3m)
NOPAT = 30.6m (EBIT 31.3m * (1 - 2.09%))
Current Ratio = 1.24 (Total Current Assets 275.7m / Total Current Liabilities 221.9m)
Debt / Equity = 0.04 (Debt 6.23m / totalStockholderEquity, last quarter 159.4m)
Debt / EBITDA = -4.42 (Net Debt -159.4m / EBITDA 36.1m)
Debt / FCF = -1.79 (Net Debt -159.4m / FCF TTM 89.0m)
Total Stockholder Equity = 133.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 9.33% (Net Income 30.6m / Total Assets 360.2m)
RoE = 22.92% (Net Income TTM 30.6m / Total Stockholder Equity 133.7m)
RoCE = 17.53% (EBIT 31.3m / Capital Employed (Total Assets 360.2m - Current Liab 181.7m))
RoIC = 20.36% (NOPAT 30.6m / Invested Capital 150.5m)
WACC = 11.78% (E(1.44b)/V(1.44b) * Re(11.83%) + D(6.23m)/V(1.44b) * Rd(0.0%) * (1-Tc(0.02)))
Discount Rate = 11.83% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 82.22 | Cagr: 3.64%
[DCF] Terminal Value 67.71% ; FCFF base≈70.8m ; Y1≈81.2m ; Y5≈119.4m
[DCF] Fair Price = 11.75 (EV 1.12b - Net Debt -159.4m = Equity 1.28b / Shares 108.6m; r=11.78% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 4.0 | # QB: 1
Revenue Correlation: 82.96 | Revenue CAGR: 4.37% | SUE: 4.0 | # QB: 2
EPS current Quarter (2026-06-30): EPS=0.19 | Chg30d=-3.00% | Revisions=-20% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.18 | Chg30d=-11.00% | Revisions=-43% | Analysts=5
EPS current Year (2026-12-31): EPS=0.84 | Chg30d=+4.35% | Revisions=+33% | GrowthEPS=+20.0% | GrowthRev=+6.9%
EPS next Year (2027-12-31): EPS=0.99 | Chg30d=+3.64% | Revisions=+0% | GrowthEPS=+17.6% | GrowthRev=+8.7%
[Analyst] Revisions Ratio: -43%