Form 8-K

8-K — Arlo Technologies, Inc.

Accession: 0001736946-26-000058

Filed: 2026-08-06

Period: 2026-08-06

CIK: 0001736946

SIC: 7381 (SERVICES-DETECTIVE, GUARD & ARMORED CAR SERVICES)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — arlo-20260806.htm (Primary)

EX-99.1 (arlo26q2earningsrelease-20.htm)

GRAPHIC (image_0a.jpg)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: arlo-20260806.htm · Sequence: 1

arlo-20260806

0001736946false00017369462026-08-062026-08-06

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): August 6, 2026

ARLO TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

Delaware 001-38618 38-4061754

(State or other jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer Identification Number)

5770 Fleet Street,

Carlsbad, California 92008

(Address of principal executive offices) (Zip Code)

(408) 890-3900

(Registrant's telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

Common Stock, par value $0.001 per share ARLO New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Item 2.02 Results of Operations and Financial Condition.

On August 6, 2026, Arlo Technologies, Inc. issued a press release announcing its financial results for the second quarter ended June 28, 2026. A copy of this press release is attached hereto as Exhibit 99.1.

The information in this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, unless expressly incorporated by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number Description

99.1

Press Release, Dated August 6, 2026

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ARLO TECHNOLOGIES, INC.

Registrant

/s/ KURTIS BINDER

Kurtis Binder

Chief Financial Officer and

Chief Operating Officer

Date: August 6, 2026

EX-99.1

Filename: arlo26q2earningsrelease-20.htm · Sequence: 2

Document

NEWS RELEASE

Arlo Reports Second Quarter 2026 Results

Record total revenue of $156 million, growing 21% year over year

Record subscriptions and services revenue of $93 million, growing 19% year over year

GAAP gross margin of 48%, growing 330 basis points and record non-GAAP gross margin(1) of 51%, growing 480 basis points year over year

GAAP net income of $3 million and record adjusted EBITDA(1) of $31 million; adjusted EBITDA margin of 20%

GAAP EPS of $0.03 and non-GAAP EPS of $0.28

Carlsbad, California – August 6, 2026 – Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home security platform company, today reported financial results for the second quarter ended June 28, 2026.

“We delivered outstanding financial results in the period with record total revenue of $156 million, up 21% year over year and record adjusted EBITDA of $31 million with EBITDA margin of 20%. Continued strength in subscriptions and services revenue drove the top and bottom-line growth, resulting in record levels of both consolidated non-GAAP gross margin and non-GAAP net income. As a result, we are increasing our annual guidance on both total revenue and EPS for the year,” said Matthew McRae, Chief Executive Officer of Arlo Technologies. “Our operational execution is best-in-class, and the Arlo brand gained further recognition on Newsweek’s list of the Most Trustworthy Companies in America. We are proud that our exceptional user experience and trusted lifelong customer relationships are catalysts for our strategic partners to make Arlo their trusted technology brand of choice for safety and security solutions.”

Financial Summary

•Record subscriptions and services revenue of $93.0 million, growing 19.0% year over year, accounting for 59.7% of total revenues.

•Ended with annual recurring revenue (ARR)(2) of $365.0 million, growing 15.6% year over year.

•GAAP subscriptions and services gross margin of 81.1% and non-GAAP subscriptions and services gross margin of 84.1%.

•GAAP gross margin of 48.2% and record non-GAAP gross margin of 50.6%; growing 330 and 480 basis points year over year, respectively.

•Record adjusted EBITDA of $30.6 million, up 70.3% year over year with adjusted EBITDA margin of 19.6%.

•GAAP EPS of $0.03 and non-GAAP EPS of $0.28, including the tariff refund impact of $0.07.

•Cumulative paid accounts increased to 6.3 million, growing 23.2% year over year.

•Free cash flow (FCF)(3) of $33.9 million with FCF margin of 11.1% in the first half of 2026.

•Cash and cash equivalents and short-term investments of $141.1 million, including the cash outflows for the acquisition of Aloe Care Health and stock repurchases.

Business Highlights

•Repurchased $22 million of common stock during the second quarter, as part of the authorized stock repurchase program of $50 million.

•Recognized by Newsweek as one of the Most Trustworthy Companies in America for 2026 in the Appliances and Electronics Category.

•Announced expanded partnership between Aloe Care Health and Home Helpers Home Care to deploy a new AI-powered wellness service.

Page 1

Three Months Ended Six Months Ended

June 28,

2026 March 29,

2026 June 29,

2025 June 28,

2026 June 29,

2025

(In thousands, except percentage and per share data)

Revenue $ 155,937 $ 150,382 $ 129,405 $ 306,319 $ 248,471

GAAP gross margin 48.2 % 48.3 % 44.9 % 48.3 % 44.6 %

Non-GAAP gross margin (1)

50.6 % 50.1 % 45.8 % 50.3 % 45.7 %

GAAP EPS - diluted $ 0.03 $ 0.13 $ 0.03 $ 0.16 $ 0.02

Non-GAAP EPS - diluted (1)

$ 0.28 $ 0.28 $ 0.17 $ 0.56 $ 0.33

_________________________

(1) Reconciliation of financial measures computed on a GAAP basis to the most directly comparable financial measures computed on a non-GAAP basis is provided at the end of this press release.

(2) ARR represents and is defined as the annualized paid subscriptions and services revenue we expect to recognize from subscription contracts, as calculated by taking the average paid subscriptions and services revenue per paid account of the reporting period multiplied by the number of paid accounts at the end of the reporting period.

(3) FCF is calculated as net cash provided by operating activities less capital expenditures. FCF margin is the FCF divided by revenue.

The third quarter and full year 2026 Outlook (4) (5)

A reconciliation of our outlook on a GAAP and non-GAAP basis is provided for the three months ended September 27, 2026 and full year 2026 in the following table:

Third Quarter 2026 Full Year 2026

Revenue EPS - diluted Revenue EPS - diluted

(In millions) (In millions)

GAAP $140 - $150 $(0.06) - $0.00 $580 - $600 $0.11 - $0.21

Adjustments for stock-based compensation expense and others — $0.23 — $0.79

Non-GAAP $140 - $150 $0.17 - $0.23 $580 - $600 $0.90 - $1.00

_________________________

(4) The outlook does not include estimates for any currently unknown income and expense items which, by their nature, could arise late in a quarter, including: litigation reserves, net; impairment charges; discrete tax benefits or detriments relating to tax windfalls or shortfalls from equity awards; and any additional impacts relating to the implementation of U.S. tax reform. New material income and expense items such as these could have a significant effect on our guidance and future results.

(5) The current global tariff environment is uncertain. Our products are manufactured outside the U.S., and consequently tariffs increase our product costs, which could impact our sales and reduce our product margin. The non-GAAP EPS outlook range above includes an expected tariff refund, all of which we expect will be reinvested in growth initiatives to support our subscriptions and services business.

Page 2

Investor Conference Call / Webcast Details

Arlo will review the second quarter 2026 results and discuss management’s expectations for the third quarter and full year 2026 today, Thursday, August 6, 2026 at 5:00 p.m. ET (2:00 p.m. PT). To view the accompanying presentation, a live webcast of the conference call will be available on Arlo’s Investor Relations website at https://investor.arlo.com. The toll-free dial-in number for the live audio call is (833) 461-5787. The international dial-in number for the live audio call is (585) 542-9983. The conference ID for the call is 430549116. A replay of the call will be available via the web at https://investor.arlo.com.

About Arlo Technologies, Inc.

Arlo is an award-winning, industry leader that is transforming the ways in which people can protect everything that matters to them with advanced home, business, and personal security solutions. Arlo’s deep expertise in AI- and CV-powered analytics, cloud services, user experience and product design, and innovative wireless and RF connectivity enables the delivery of a seamless, smart security experience for Arlo users that is easy to set up and interact with every day. Arlo’s cloud-based platform provides users with visibility, insight and a powerful means to help protect and connect in real-time with the people and things that matter most, from any location with a Wi-Fi or a cellular connection. Arlo has recently launched several categories of award-winning connected devices, software and services. These include wire-free, smart Wi-Fi and LTE-enabled security cameras, video doorbells, floodlights, security system, and Arlo’s subscription service, Arlo Secure.

With a mission to bring users peace of mind, Arlo is as passionate about protecting user privacy as it is about safeguarding homes and families. Arlo is committed to implementing industry standards for data protection designed to keep users’ personal information private and in their control. Arlo provides enhanced controls for user data, supports privacy legislation, keeps user data safely secure, and puts security at the forefront of company culture.

© 2026 Arlo Technologies, Inc., Arlo and the Arlo logo are trademarks and/or registered trademarks of Arlo Technologies, Inc. and/or certain of its affiliates in the United States and/or other countries. Other brand and product names are for identification purposes only and may be trademarks or registered trademarks of their respective holder(s). The information contained herein is subject to change without notice. Arlo shall not be liable for technical or editorial errors or omissions contained herein. All rights reserved.

Contact:

Arlo Investor Relations

Tahmin Clarke

investors@arlo.com

Page 3

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 for Arlo Technologies, Inc.:

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words “anticipate,” “expect,” “believe,” “will,” “may,” “should,” “estimate,” “project,” “outlook,” “forecast” or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. The forward-looking statements represent our expectations or beliefs concerning future events based on information available at the time such statements were made and include statements regarding our potential future business, operating performance and financial condition, including descriptions of our expected revenue and profitability, GAAP and non-GAAP gross margins, adjusted EBITDA and adjusted EBITDA margins, tax rates, expenses, cash outlook, free cash flow and free cash flow margins; expectations regarding our increased annual guidance on total revenue and earnings per share for 2026; expectations regarding our brand recognition continuing to gain traction; expectations regarding our strategic objectives and initiatives; expectations regarding the realization of returns on our strategic investments and partnerships; and others. These statements are based on management’s current expectations and are subject to certain risks and uncertainties, including the following: future demand for our products may be lower than anticipated, including due to inflation, fluctuating consumer confidence, banking failures and high interest rates; we may be unsuccessful in developing and expanding our sales and marketing capabilities; we may not be able to increase sales of our paid subscription services; consumers may choose not to adopt our new product offerings or adopt competing products; product performance may be adversely affected by real world operating conditions; we may be unsuccessful or experience delays in manufacturing and distributing our new and existing products; we may fail to manage costs and cost saving initiatives, the cost of developing new products and manufacturing and distribution of our existing offerings; we may fail to successfully integrate acquired businesses, technologies or personnel, or to realize the anticipated benefits, synergies or cost savings from our recent acquisitions; we may experience difficulties retaining key employees of acquired companies; the costs and management attention associated with the integration of acquired businesses may be greater than anticipated; and we may not realize the expected returns on our future strategic investments, if any. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

Under the current U.S. administration, tariffs, and retaliatory tariffs imposed by other nations, have created a dynamic and unpredictable trade landscape, which is adversely impacting, and may continue to adversely impact, our business. Current or future tariffs impacting our products, which are manufactured outside of the United States, have raised and may further raise our product costs. In addition, other trade restrictions could negatively impact our ability to obtain finished products from our ex-U.S. manufacturers and suppliers and, therefore, delay or impede our product deliveries. Tariff-related cost pressures and supply chain disruptions may lead to reputational harm if we are unable to deliver products or services on expected timelines or if any price increases are poorly received by customers or business partners. Furthermore, ongoing uncertainty regarding trade disputes and other political tensions between the United States and other countries, including in Asia, may also exacerbate unfavorable macroeconomic conditions, which may negatively impact international customer demand for our products or services and may lead to increased preference for local competitors. While we continue to monitor these developments, the full impact of these risks remains uncertain, and any prolonged economic downturn, escalation in trade tensions or deterioration in international perception of U.S.-based companies could materially and adversely affect our business, results of operations and financial condition.

Further information on potential risk factors that could affect our business are detailed in our periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled “Risk Factors” in the most recently filed Annual Report and Quarterly Report filed with the Securities and Exchange Commission (the “SEC”) and subsequent filings with the SEC. Given these circumstances, you should not place undue reliance on these forward-looking statements. We undertake no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Non-GAAP Financial Measures:

To supplement our unaudited financial data prepared on a basis consistent with U.S. Generally Accepted Accounting Principles (“GAAP”), we disclose certain non-GAAP financial measures that exclude certain charges, including non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income and non-GAAP earnings per diluted share. These supplemental measures exclude adjustments for stock-based compensation expense, amortization of intangible assets, acquisition-related expense, gain on sale of long-term investment, amortization of software development cost, depreciation expenses, and the related tax effects. In addition, we use free cash flow as a non-GAAP measure when assessing the sources of liquidity, capital resources, and quality of earnings. We believe that free cash flow is helpful in understanding our capital requirements and provides an additional means to reflect the cash flow trends in our business.

Page 4

These non-GAAP measures are not in accordance with, or an alternative for GAAP, and may be different from similarly-titled non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our operating performance on a period-to-period basis because such items are not, in our view, related to our ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, and for benchmarking performance externally against competitors. In addition, management’s incentive compensation is determined using certain non-GAAP measures. Since we find these measures to be useful, we believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with our GAAP measures, provide useful information to investors by offering:

•the ability to make more meaningful period-to-period comparisons of our on-going operating results;

•the ability to better identify trends in our underlying business and perform related trend analyses;

•a better understanding of how management plans and measures our underlying business; and

•an easier way to compare our operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures.

The following are explanations of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding them in the reconciliations of these non-GAAP financial measures:

Stock-based compensation expense consists of non-cash charges for the estimated fair value of restricted stock units , performance-based restricted stock units, and shares under the employee stock purchase plan granted to employees, and the payroll taxes associated with stock-based compensation. We believe that the exclusion of these charges provides for more accurate comparisons of our operating results to peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, we believe it is useful to investors to understand the specific impact stock-based compensation expense has on our operating results.

Other non-GAAP items are the result of either unique or unplanned events, including, when applicable: amortization of intangible assets, acquisition-related expense, gain on sale of long-term investment, amortization of software development cost, depreciation expenses, and the related tax effects. It is difficult to predict the occurrence or estimate the amount or timing of these items in advance. Although these events are reflected in our GAAP financial statements, these unique transactions may limit the comparability of our on-going operations with prior and future periods. The amounts result from events that often arise from unforeseen circumstances, which often occur outside of the ordinary course of continuing operations. Therefore, the amounts do not accurately reflect the underlying performance of our continuing business operations for the period in which they are incurred.

Source: Arlo-F

***Financial Tables

Page 5

ARLO TECHNOLOGIES, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

As of

June 28,

2026 December 31,

2025

ASSETS

Current assets:

Cash and cash equivalents $ 101,382 $ 146,440

Short-term investments 39,749 19,985

Accounts receivable, net 63,607 39,666

Inventories 48,415 41,185

Restricted cash 1,920 —

Prepaid expenses and other current assets 17,577 13,210

Total current assets 272,650 260,486

Property and equipment, net 15,976 13,158

Operating lease right-of-use assets, net 8,180 9,195

Goodwill 47,936 11,038

Intangible assets, net

25,713 —

Long-term investment

— 12,500

Other non-current assets 4,127 4,171

Total assets $ 374,582 $ 310,548

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable $ 50,832 $ 42,826

Deferred revenue 50,842 37,139

Accrued liabilities 92,782 92,372

Total current liabilities 194,456 172,337

Non-current operating lease liabilities 5,716 6,743

Other non-current liabilities 15,885 3,627

Total liabilities 216,057 182,707

Commitments and contingencies

Stockholders’ Equity:

Preferred stock: $0.001 par value; 50,000,000 shares authorized; none issued or outstanding

— —

Common stock: $0.001 par value; 500,000,000 shares authorized; shares issued and outstanding: 107,560,075 at June 28, 2026 and 105,030,947 at December 31, 2025

107 105

Additional paid-in capital 523,552 510,759

Accumulated other comprehensive income — 16

Accumulated deficit (365,134) (383,039)

Total stockholders’ equity 158,525 127,841

Total liabilities and stockholders’ equity $ 374,582 $ 310,548

Page 6

ARLO TECHNOLOGIES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except percentage and per share data)

Three Months Ended Six Months Ended

June 28,

2026 March 29,

2026 June 29,

2025 June 28,

2026 June 29,

2025

Revenue:

Subscriptions and services $ 93,047 $ 90,099 $ 78,175 $ 183,146 $ 147,024

Products 62,890 60,283 51,230 123,173 101,447

Total revenue 155,937 150,382 129,405 306,319 248,471

Cost of revenue:

Subscriptions and services 17,582 14,682 12,235 32,264 24,500

Products 63,139 63,032 59,095 126,171 113,169

Total cost of revenue 80,721 77,714 71,330 158,435 137,669

Gross profit 75,216 72,668 58,075 147,884 110,802

Gross margin 48.2 % 48.3 % 44.9 % 48.3 % 44.6 %

Operating expenses:

Research and development 23,658 22,814 18,489 46,472 34,654

Sales and marketing 24,085 22,654 21,103 46,739 41,306

General and administrative 23,128 18,207 16,334 41,335 34,119

Other operating expense 1,889 1,435 216 3,324 241

Total operating expenses 72,760 65,110 56,142 137,870 110,320

Income from operations 2,456 7,558 1,933 10,014 482

Operating margin 1.6 % 5.0 % 1.5 % 3.3 % 0.2 %

Other income, net:

Gain on sale of long-term investment

— 6,423 — 6,423 —

Interest income, net 979 1,241 1,344 2,220 2,660

Other income (expense), net 25 70 (407) 95 (605)

Total other income, net 1,004 7,734 937 8,738 2,055

Income before income taxes 3,460 15,292 2,870 18,752 2,537

Provision (benefit) for income taxes 432 415 (254) 847 248

Net income $ 3,028 $ 14,877 $ 3,124 $ 17,905 $ 2,289

Earnings per share:

Basic $ 0.03 $ 0.14 $ 0.03 $ 0.17 $ 0.02

Diluted $ 0.03 $ 0.13 $ 0.03 $ 0.16 $ 0.02

Weighted-average common shares outstanding:

Basic 108,123 106,995 103,885 107,569 103,060

Diluted 110,819 110,488 108,061 111,094 107,692

Page 7

ARLO TECHNOLOGIES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Six Months Ended

June 28, 2026 June 29, 2025

Cash flows from operating activities:

Net income $ 17,905 $ 2,289

Adjustments to reconcile net income to net cash provided by operating activities:

Stock-based compensation expense, net of amounts capitalized 41,444 31,995

Depreciation and amortization 4,625 1,687

Gain on sale of long-term investment (6,423) —

Allowance for credit losses and non-cash changes to reserves 1,351 —

Deferred income taxes 161 (107)

Discount accretion on investments and other (249) (1,390)

Changes in assets and liabilities, net of effect of acquisitions:

Accounts receivable, net (23,943) (4,188)

Inventories (4,119) 9,826

Prepaid expenses and other assets (4,356) (2,758)

Accounts payable 6,063 (13,888)

Deferred revenue 13,155 14,956

Accrued and other liabilities (6,342) 1,327

Net cash provided by operating activities 39,272 39,749

Cash flows from investing activities:

Purchases of property and equipment, including capitalized software (5,326) (5,778)

Purchases of short-term investments (44,520) (83,390)

Purchase of long-term investment — (12,500)

Acquisitions of businesses, net of cash acquired

(48,155) —

Proceeds from maturities of short-term investments 24,989 65,000

Proceeds from sale of long-term investment 18,923 —

Net cash used in investing activities (54,089) (36,668)

Cash flows from financing activities:

Proceeds from employee stock plans 1,955 2,280

Repurchases of common stock (30,276) (16,149)

Net cash used in financing activities (28,321) (13,869)

Net decrease in cash and cash equivalents (43,138) (10,788)

Cash, cash equivalents, and restricted cash, at beginning of period 146,440 82,032

Cash, cash equivalents, and restricted cash, at end of period $ 103,302 $ 71,244

Reconciliation of cash, cash equivalents, and restricted cash to Consolidated Balance Sheets

Cash and cash equivalents $ 101,382 $ 71,244

Restricted cash 1,920 —

Total cash, cash equivalents, and restricted cash $ 103,302 $ 71,244

Non-cash investing and financing activities:

Purchases of property and equipment included in accounts payable and accrued liabilities $ 382 $ 566

Stock-based compensation expense capitalized for software development $ 778 $ 868

Page 8

ARLO TECHNOLOGIES, INC.

RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (UNAUDITED)

(In thousands, except percentage data)

Three Months Ended Six Months Ended

June 28,

2026 March 29,

2026 June 29,

2025 June 28,

2026 June 29,

2025

GAAP gross profit:

Subscriptions and services $ 75,465 $ 75,417 $ 65,940 $ 150,882 $ 122,524

Products (249) (2,749) (7,865) (2,998) (11,722)

Total GAAP gross profit 75,216 72,668 58,075 147,884 110,802

GAAP gross margin:

Subscriptions and services 81.1 % 83.7 % 84.3 % 82.4 % 83.3 %

Products (0.4) % (4.6) % (15.4) % (2.4) % (11.6) %

Total GAAP gross margin 48.2 % 48.3 % 44.9 % 48.3 % 44.6 %

Stock-based compensation - Subscriptions and services cost

262 300 99 562 460

Stock-based compensation - Products cost

874 1,074 786 1,948 1,542

Amortization of software development cost 1,275 1,256 341 2,531 613

Amortization of intangible assets 1,217 — — 1,217 —

Non-GAAP gross profit:

Subscriptions and services 78,219 76,973 66,380 153,975 123,597

Products 625 (1,675) (7,079) 167 (10,180)

Total Non-GAAP gross profit $ 78,844 $ 75,298 $ 59,301 $ 154,142 $ 113,417

Non-GAAP gross margin:

Subscriptions and services 84.1 % 85.4 % 84.9 % 84.1 % 84.1 %

Products 1.0 % (2.8) % (13.8) % 0.1 % (10.0) %

Total Non-GAAP gross margin 50.6 % 50.1 % 45.8 % 50.3 % 45.7 %

GAAP net income $ 3,028 $ 14,877 $ 3,124 $ 17,905 $ 2,289

Stock-based compensation expense 21,710 19,734 14,983 41,444 31,995

Depreciation and amortization 2,928 1,697 858 4,625 1,687

Acquisition-related expense

1,667 1,329 — 2,996 —

Other operating expense 1,871 106 216 1,977 241

Gain on sale of long-term investment

— (6,423) — (6,423) —

Interest income, net (979) (1,241) (1,344) (2,220) (2,660)

Other (income) expense, net (25) (70) 407 (95) 605

Provision (benefit) for income taxes 432 415 (254) 847 248

Adjusted EBITDA $ 30,632 $ 30,424 $ 17,990 $ 61,056 $ 34,405

Adjusted EBITDA margin 19.6 % 20.2 % 13.9 % 19.9 % 13.8 %

Page 9

ARLO TECHNOLOGIES, INC.

RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (UNAUDITED) (CONTINUED)

(In thousands, except percentage and per share data)

Three Months Ended Six Months Ended

June 28,

2026 March 29,

2026 June 29,

2025 June 28,

2026 June 29,

2025

GAAP net income $ 3,028 $ 14,877 $ 3,124 $ 17,905 $ 2,289

Stock-based compensation expense 21,710 19,734 14,983 41,444 31,995

Gain on sale of long-term investment

— (6,423) — (6,423) —

Others 6,360 2,776 708 9,136 1,005

Non-GAAP net income $ 31,098 $ 30,964 $ 18,815 $ 62,062 $ 35,289

GAAP EPS - diluted $ 0.03 $ 0.13 $ 0.03 $ 0.16 $ 0.02

Stock-based compensation expense 0.20 0.18 0.14 0.38 0.30

Gain on sale of long-term investment — (0.06) — (0.06) —

Others 0.05 0.03 — 0.08 0.01

Non-GAAP EPS - diluted $ 0.28 $ 0.28 $ 0.17 $ 0.56 $ 0.33

Weighted-average common shares outstanding:

Basic 108,123 106,995 103,885 107,569 103,060

Diluted 110,819 110,488 108,061 111,094 107,692

Free cash flow:

Net cash provided by operating activities $ 11,408 $ 27,863 $ 8,830 $ 39,272 $ 39,749

Less: purchases of property and equipment, including capitalized software (2,907) (2,419) (2,975) (5,326) (5,778)

Free cash flow (1)

$ 8,501 $ 25,444 $ 5,855 $ 33,946 $ 33,971

Free cash flow margin (1)

5.5 % 16.9 % 4.5 % 11.1 % 13.7 %

_________________________

(1) Free cash flow is calculated as net cash provided by operating activities less capital expenditures. Free cash flow margin is the free cash flow divided by revenue.

Page 10

ARLO TECHNOLOGIES, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (UNAUDITED)

(In thousands, except inventory turns, weeks of channel inventory, headcount, and per share data)

As of and for the three months ended

June 28,

2026 March 29,

2026 December 31,

2025 September 28,

2025 June 29,

2025

Cash, cash equivalents and short-term investments $ 141,131 $ 167,498 $ 166,425 $ 165,544 $ 160,401

Accounts receivable, net $ 63,607 $ 52,174 $ 39,666 $ 76,698 $ 61,450

Days sales outstanding 37 31 26 50 43

Inventories $ 48,415 $ 43,958 $ 41,185 $ 44,371 $ 30,877

Inventory turns 5.2 5.7 5.9 6.4 7.7

Weeks of channel inventory:

U.S. retail channel 9.6 13.2 10.1 12.5 12.5

U.S. distribution channel 5.9 9.5 3.0 5.5 11.0

APAC distribution channel 5.5 8.6 5.2 3.7 8.2

Deferred revenue

(current and non-current) $ 51,799 $ 53,426 $ 38,615 $ 40,515 $ 42,544

Cumulative registered accounts (1)

13,569 13,052 12,141 11,792 11,237

Cumulative paid accounts (2)

6,303 6,005 5,687 5,396 5,115

Annual recurring revenue (ARR) (3)

$ 364,959 $ 356,921 $ 330,489 $ 323,150 $ 315,655

Headcount 384 369 376 374 382

Diluted shares

110,819 110,488 110,353 109,638 108,061

_________________________

(1) Registered accounts at the end of a particular period are defined as the number of unique registered accounts on our platforms. The number of registered accounts does not directly correspond to the number of users. A single account may be shared by multiple users (which we consider as one account) and a single user may have multiple accounts (which we consider as multiple accounts).

(2) Paid accounts at the end of a particular period are defined as any account worldwide where a subscription-based or otherwise recurring service fee was collected by Arlo (either directly from a user or from a partner).

(3) ARR represents and is defined as the annualized paid subscriptions and services revenue we expect to recognize from subscription contracts, as calculated by taking the average paid subscriptions and services revenue per paid account of the reporting period multiplied by the number of paid accounts at the end of the reporting period.

Page 11

REVENUE BY GEOGRAPHY

(In thousands, except percentage data)

Three Months Ended Six Months Ended

June 28,

2026 March 29,

2026 June 29,

2025 June 28,

2026 June 29,

2025

Americas $ 88,969 57.1 % $ 83,986 55.9 % $ 81,902 63.3 % $ 172,955 56.5 % $ 151,999 61.2 %

EMEA 61,479 39.4 % 60,665 40.3 % 43,320 33.5 % 122,144 39.9 % 86,215 34.7 %

APAC 5,489 3.5 % 5,731 3.8 % 4,183 3.2 % 11,220 3.6 % 10,257 4.1 %

Total $ 155,937 100.0 % $ 150,382 100.0 % $ 129,405 100.0 % $ 306,319 100.0 % $ 248,471 100.0 %

Page 12

GRAPHIC

Filename: image_0a.jpg · Sequence: 6

Binary file (6967 bytes)

Download image_0a.jpg

XML — IDEA: XBRL DOCUMENT

XML

Filename: R1.htm · Sequence: 8

v3.26.1

Cover Page

Aug. 06, 2026

Cover [Abstract]

Entity Central Index Key

0001736946

Entity Emerging Growth Company

false

Title of 12(b) Security

Common Stock, par value $0.001 per share

Pre-commencement Issuer Tender Offer

false

Pre-commencement Tender Offer

false

Soliciting Material

false

Written Communications

false

City Area Code

408

Entity Tax Identification Number

38-4061754

Document Type

8-K

Document Period End Date

Aug. 06, 2026

Entity Registrant Name

ARLO TECHNOLOGIES, INC.

Entity Incorporation, State or Country Code

Entity File Number

001-38618

Entity Address, Address Line One

5770 Fleet Street,

Entity Address, City or Town

Carlsbad,

Entity Address, State or Province

Entity Address, Postal Zip Code

92008

Local Phone Number

890-3900

Trading Symbol

ARLO

Security Exchange Name

NYSE

Amendment Flag

false

- Definition

Boolean flag that is true when the XBRL content amends previously-filed or accepted submission.

+ References

No definition available.

+ Details

Name:

dei_AmendmentFlag

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Area code of city

+ References

No definition available.

+ Details

Name:

dei_CityAreaCode

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

Cover page.

+ References

No definition available.

+ Details

Name:

dei_CoverAbstract

Namespace Prefix:

dei_

Data Type:

xbrli:stringItemType

Balance Type:

Period Type:

duration

- Definition

For the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.

+ References

No definition available.

+ Details

Name:

dei_DocumentPeriodEndDate

Namespace Prefix:

dei_

Data Type:

xbrli:dateItemType

Balance Type:

Period Type:

duration

- Definition

The type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.

+ References

No definition available.

+ Details

Name:

dei_DocumentType

Namespace Prefix:

dei_

Data Type:

dei:submissionTypeItemType

Balance Type:

Period Type:

duration

- Definition

Address Line 1 such as Attn, Building Name, Street Name

+ References

No definition available.

+ Details

Name:

dei_EntityAddressAddressLine1

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

Name of the City or Town

+ References

No definition available.

+ Details

Name:

dei_EntityAddressCityOrTown

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

Code for the postal or zip code

+ References

No definition available.

+ Details

Name:

dei_EntityAddressPostalZipCode

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

Name of the state or province.

+ References

No definition available.

+ Details

Name:

dei_EntityAddressStateOrProvince

Namespace Prefix:

dei_

Data Type:

dei:stateOrProvinceItemType

Balance Type:

Period Type:

duration

- Definition

A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

+ Details

Name:

dei_EntityCentralIndexKey

Namespace Prefix:

dei_

Data Type:

dei:centralIndexKeyItemType

Balance Type:

Period Type:

duration

- Definition

Indicate if registrant meets the emerging growth company criteria.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

+ Details

Name:

dei_EntityEmergingGrowthCompany

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.

+ References

No definition available.

+ Details

Name:

dei_EntityFileNumber

Namespace Prefix:

dei_

Data Type:

dei:fileNumberItemType

Balance Type:

Period Type:

duration

- Definition

Two-character EDGAR code representing the state or country of incorporation.

+ References

No definition available.

+ Details

Name:

dei_EntityIncorporationStateCountryCode

Namespace Prefix:

dei_

Data Type:

dei:edgarStateCountryItemType

Balance Type:

Period Type:

duration

- Definition

The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

+ Details

Name:

dei_EntityRegistrantName

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

The Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

+ Details

Name:

dei_EntityTaxIdentificationNumber

Namespace Prefix:

dei_

Data Type:

dei:employerIdItemType

Balance Type:

Period Type:

duration

- Definition

Local phone number for entity.

+ References

No definition available.

+ Details

Name:

dei_LocalPhoneNumber

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 13e

-Subsection 4c

+ Details

Name:

dei_PreCommencementIssuerTenderOffer

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 14d

-Subsection 2b

+ Details

Name:

dei_PreCommencementTenderOffer

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Title of a 12(b) registered security.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b

+ Details

Name:

dei_Security12bTitle

Namespace Prefix:

dei_

Data Type:

dei:securityTitleItemType

Balance Type:

Period Type:

duration

- Definition

Name of the Exchange on which a security is registered.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection d1-1

+ Details

Name:

dei_SecurityExchangeName

Namespace Prefix:

dei_

Data Type:

dei:edgarExchangeCodeItemType

Balance Type:

Period Type:

duration

- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 14a

-Subsection 12

+ Details

Name:

dei_SolicitingMaterial

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Trading symbol of an instrument as listed on an exchange.

+ References

No definition available.

+ Details

Name:

dei_TradingSymbol

Namespace Prefix:

dei_

Data Type:

dei:tradingSymbolItemType

Balance Type:

Period Type:

duration

- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Securities Act

-Number 230

-Section 425

+ Details

Name:

dei_WrittenCommunications

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration