(ARLO) Arlo Technologies - Overview
Sector: Industrials | Industry: Building Products & Equipment | Exchange: NYSE (USA) | Market Cap: 1.407m USD | Total Return: -10.7% in 12m
Industry Rotation: -13.5
Avg Turnover: 16.8M
EPS Trend: 93.9%
Qual. Beats: 2
Rev. Trend: 66.9%
Qual. Beats: 2
Warnings
Altman Z'' -3.22 < 1.0 - financial distress zone
Tailwinds
Pead
Arlo Technologies, Inc. designs and sells cloud-based security hardware and software solutions globally. Its product portfolio includes wireless smart cameras, video doorbells, and integrated home security systems featuring multi-sensor technology. The company operates a recurring revenue model by pairing its hardware with Arlo Secure, a subscription-based platform providing AI-driven object detection, professional monitoring, and cloud storage.
The consumer security sector is increasingly shifting toward Software-as-a-Service (SaaS) models to drive higher margins and customer lifetime value. Arlo distributes its products through a diverse network of retail partners, wholesale distributors, wireless carriers, and direct-to-consumer digital channels. For deeper insights into these revenue streams, consider exploring the financial metrics on ValueRay.
Headquartered in Carlsbad, California, the company also offers specialized solutions like Arlo Safe for personal emergency response and Arlo SmartCloud for enterprise-level security applications. This multi-tiered approach allows the firm to compete across hardware sales, professional security monitoring, and mobile safety software markets.
- Paid subscriber growth accelerates recurring service revenue and expands gross margins
- Hardware sales volume through retail channels dictates new customer acquisition costs
- Strategic partnerships with wireless carriers and security providers drive platform scale
- High research and development spending impacts path toward consistent GAAP profitability
- Consumer discretionary spending levels influence demand for premium home security hardware
| Net Income: 30.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.18 > 0.02 and ΔFCF/TA -1.48 > 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 (-161.3m) to EBITDA (26.7m): -6.05 < 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 0.38%; Δ 4.47k% > 0.5%) |
| Asset Turnover: 170.7% > 50% (prev 170.5%; Δ 0.19% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBITDA 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: 0.05 (EBIT TTM 16.0m / Avg Total Assets 328.4m) |
| D: -1.83 (Book Value of Equity -368.1m / Total Liabilities 200.8m) |
| Altman-Z'' Score: -3.22 = D |
| DSRI: 1.02 (Receivables 52.2m/46.1m, Revenue 560.6m/505.8m) |
| GMI: 0.85 (GM 45.09% / 38.13%) |
| 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-Score: -2.72 (Cap -4..+1) = A |
Over the past week, the price has changed by -19.21%, over one month by -15.09%, over three months by +5.66% and over the past year by -10.66%.
- StrongBuy: 2
- Buy: 3
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 21.8 | 76.5% |
P/E Forward = 19.0476
P/S = 2.5089
P/B = 10.3907
Revenue TTM = 560.6m USD
EBIT TTM = 16.0m USD
EBITDA TTM = 26.7m USD
Long Term Debt = 6.23m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = unknown (none)
Debt = 6.23m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -161.3m USD (recalculated: Debt 6.23m - CCE 167.5m)
Enterprise Value = 1.25b USD (1.41b + Debt 6.23m - CCE 167.5m)
Interest Coverage Ratio = unknown (Ebit TTM 16.0m / Interest Expense TTM 0.0)
EV/FCF = 19.39x (Enterprise Value 1.25b / FCF TTM 64.2m)
FCF Yield = 5.16% (FCF TTM 64.2m / Enterprise Value 1.25b)
FCF Margin = 11.46% (FCF TTM 64.2m / 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 = 3.46 (Enterprise Value 1.25b / Total Assets 360.2m)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 6.23m)
Taxrate = 2.71% (415k / 15.3m)
NOPAT = 15.6m (EBIT 16.0m * (1 - 2.71%))
Current Ratio = 1.52 (Total Current Assets 275.7m / Total Current Liabilities 181.7m)
Debt / Equity = 0.04 (Debt 6.23m / totalStockholderEquity, last quarter 159.4m)
Debt / EBITDA = -6.05 (Net Debt -161.3m / EBITDA 26.7m)
Debt / FCF = -2.51 (Net Debt -161.3m / FCF TTM 64.2m)
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 = 11.44% (EBIT 16.0m / Capital Employed (Equity 133.7m + L.T.Debt 6.23m))
RoIC = 11.64% (NOPAT 15.6m / Invested Capital 133.7m)
WACC = 11.65% (E(1.41b)/V(1.41b) * Re(11.70%) + D(6.23m)/V(1.41b) * Rd(0.0%) * (1-Tc(0.03)))
Discount Rate = 11.70% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 82.22 | Cagr: 3.64%
[DCF] Terminal Value 69.72% ; FCFF base≈61.4m ; Y1≈72.4m ; Y5≈111.2m
[DCF] Fair Price = 11.56 (EV 1.09b - Net Debt -161.3m = Equity 1.26b / Shares 108.6m; r=11.65% [WACC]; 5y FCF grow 19.01% → 3.0% )
EPS Correlation: 93.88 | EPS CAGR: 143.2% | SUE: 4.0 | # QB: 2
Revenue Correlation: 66.90 | Revenue CAGR: 6.45% | SUE: 4.0 | # QB: 2
EPS current Quarter (2026-06-30): EPS=0.20 | Chg30d=-1.25% | Revisions=-20% | Analysts=4
EPS next Quarter (2026-09-30): EPS=0.18 | Chg30d=-11.25% | Revisions=-43% | Analysts=4
EPS current Year (2026-12-31): EPS=0.82 | Chg30d=+2.48% | Revisions=+33% | GrowthEPS=+17.9% | GrowthRev=+6.9%
EPS next Year (2027-12-31): EPS=0.96 | Chg30d=+0.70% | Revisions=+0% | GrowthEPS=+16.4% | GrowthRev=+8.9%
[Analyst] Revisions Ratio: -43%