# Arlo Technologies (ARLO.US)

Canonical: https://gigainvestors.com/s/ARLO

Analysis as of: 2026-10-16T07:26:34.856Z. Financial observations: FY2016–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $12.44 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 8

- Operating margin variation: 0.97×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.07×

- FY2017: 0.02×

- FY2018: -0.14×

- FY2019: -0.37×

- FY2020: -0.29×

- FY2021: -0.14×

- FY2022: -0.12×

- FY2023: -0.05×

- FY2024: -0.07×

- FY2025: 0.01×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -28.7%

- ROIC, second-lowest year: -50.8%

- Typical minus recent gross margin: -12.0 pp

- Typical gross margin (annual median): 24.7%

- Recent gross margin (lower of latest and 3-year median): 36.7%

- Years with nonpositive capital: 7

- Capital spending / revenue: 0.9%

- ROIC including acquisitions, ten-year median: -49.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -18.1%

- FY2017: 4.5%

- FY2018: -71.8%

- FY2019: -46.2%

- FY2020: -50.8%

- FY2021: -34.2%

- FY2022: -40.4%

- FY2023: -16.4%

- FY2024: -23.1%

- FY2025: 4.3%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$149M

- Net income, five-year total: -$150M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -6.4 pp

- Working capital / revenue, change between three-year averages: -47.0 pp

- Working capital / revenue, final three-year average: 7.9%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$52M

- FY2022: -$54M

- FY2023: -$20M

- FY2024: -$30M

- FY2025: $7.8M

### management: fail

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -18.1% vs -16.4%

- Per-share earnings: -0.22 to -0.24 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 7.1%

- Market cap gain: $728M

- Cumulative retained earnings: -$344M

- Diluted shares, 5-year annual growth: 7.1%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$0.02

- Per-share value, starting three-year median: -$0.22

- Per-share value, ending three-year median: -$0.24

- Buybacks concentrated in cheaper years (correlation): 0.21

- Average buyback yield: 2.1%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: -$413M

- ROIC, first three-year median: -18.1%

- ROIC, last three-year median: -16.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.22

- FY2017: $0.11

- FY2018: -$1.02

- FY2019: -$1.14

- FY2020: -$1.30

- FY2021: -$0.68

- FY2022: -$0.65

- FY2023: -$0.24

- FY2024: -$0.31

- FY2025: $0.14

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -20.5%

- Receivables to sales index (DSRI): 0.67×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 79.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 5.27×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.09×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 12.2%

- FY2017: 16.9%

- FY2018: -8.5%

- FY2019: -17.5%

- FY2020: -13.2%

- FY2021: -9.4%

- FY2022: -3.9%

- FY2023: -21.1%

- FY2024: -27.4%

- FY2025: -20.5%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 36% since Oct 2025 · sales +3.6%

Story as of 2026-10-16T09:58:19.493Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +3.6%; source https://www.sec.gov/Archives/edgar/data/1736946/000173694626000031/arlo-20251231.htm; observed 2026-02-27.

- FY2016: $185M 

- FY2017: $371M 

- FY2018: $472M 

- FY2019: $370M 

- FY2020: $357M 

- FY2021: $435M 

- FY2022: $490M 

- FY2023: $491M 

- FY2024: $511M 

- FY2025: $529M 

### Gross margin · FY2025

gross margin 44%; source https://www.sec.gov/Archives/edgar/data/1736946/000173694626000031/arlo-20251231.htm; observed 2026-02-27.

- FY2016: 20.6% 

- FY2017: 24.6% 

- FY2018: 21.0% 

- FY2019: 9.7% 

- FY2020: 15.5% 

- FY2021: 24.8% 

- FY2022: 27.7% 

- FY2023: 34.1% 

- FY2024: 36.7% 

- FY2025: 44.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in building products & equipment; annual sales are USD 529.3 million.

- Source: https://www.sec.gov/Archives/edgar/data/1736946/000173694626000031/arlo-20251231.htm (filed 2026-02-27); FY2025: revenue 529297000; grossProfit 232841000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); ARLO.US: Arlo Technologies, Inc., together with its subsidiaries, provides cloud-based platform services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions. The company offers Arlo Essential Cameras and Doorbells delivers smart home protection, including automated privacy shield, 360-degree coverage, and 2K video resolution; Arlo Home Security System, an all-in-one multi-sensor that provides access to security experts for monitoring and responding to emergency situations; ARLO PRO 6, a pro series wireless security cameras; ARLO ULTRA 3, a 4K HDR video resolution, auto-zoom and tracking and an expansive 180-degree field of view camera; Arlo Go 2, a camera for monitoring remote areas, large properties, construction sites, vacation homes, boat or RV slips, and hard-to-access areas; and Arlo Floodlight Camera, a wire-free floodlight camera. It also provides security system accessories, charging accessories, and mounts. In addition, the company offers Arlo Secure subscriptions, including AI-powered recognition and detection; 2K secure plan and 4K secure plus plan cloud-based video recording; unlimited cameras; advanced object detection; smart interactive notifications; smoke and CO alarm detection; cloud-based activity zone; call a friend; and 24/7 priority support and professional monitoring services; Arlo Total Security, a subscription which provides 24/7 professional monitoring and security hardware; Arlo Safe, a personal safety app that offers one-touch emergency response, family safety, and crash detection and response services; and Arlo SmartCloud, a SaaS solution that delivers security cloud services for business. It sells its products through retailers, wholesale distributors, broadcast channels, wireless carriers, and security solution providers, as well as through its website. Arlo Technologies, Inc. was incorporated in 2018 and is headquartered in Carlsbad, California.

### Why customers stay

Margins ranged from 34.1% to 44% during 2023–25; it lost 28.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: grossProfit / revenue = 34.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = 36.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1736946/000173694626000031/arlo-20251231.htm (filed 2026-02-27); FY2025: grossProfit / revenue = 44%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2016,-0.18122199734803546],[2017,0.044577338465973775],[2018,-0.7180641261568633],[2019,-0.4620160481444333],[2020,-0.5076261673080222],[2021,-0.3424542459868378],[2022,-0.40421728257349504],[2023,-0.16353998852839222],[2024,-0.23111934667046768],[2025,0.042975842049333676]]; median -0.2867867963286528. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 10% of cash earnings on expansion; paid no dividends in 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2017: growth capex 0; upkeep 3578000; owner earnings 6711000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1736946/000173694626000031/arlo-20251231.htm (filed 2026-02-27); FY2025: growth capex 782329.0934390724; upkeep 11043670.906560928; owner earnings 7813329.093439072. Growth capex / owner earnings = 0.1001274980335849.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1736946/000173694626000031/arlo-20251231.htm (filed 2026-02-27); FY2025: cash repurchases 45599000 USD.

### Are managers owners

Insiders own 3.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); ARLO.US SharesStats.PercentInsiders = 3.1419999999999995 percentage points; cache date 2026-10-15.

### What the price says

The price is 2.6 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Closing price 12.44 USD; reporting-to-trading FX 1; FY2025 annual sales per share 4.804976578670249; price multiple 2.5889824427495336. FY2025 cash earnings/share 0.07092967331274803. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2018-08: $19.73 per share

- 2018-09: $14.51 per share

- 2018-10: $13.59 per share

- 2018-11: $12.03 per share

- 2018-12: $9.98 per share

- 2019-01: $7.19 per share

- 2019-02: $4.33 per share

- 2019-03: $4.13 per share

- 2019-04: $3.97 per share

- 2019-05: $3.43 per share

- 2019-06: $4.01 per share

- 2019-07: $4.30 per share

- 2019-08: $3.14 per share

- 2019-09: $3.41 per share

- 2019-10: $3.41 per share

- 2019-11: $3.46 per share

- 2019-12: $4.21 per share

- 2020-01: $4.27 per share

- 2020-02: $3.28 per share

- 2020-03: $2.43 per share

- 2020-04: $2.74 per share

- 2020-05: $2.21 per share

- 2020-06: $2.58 per share

- 2020-07: $4.22 per share

- 2020-08: $5.73 per share

- 2020-09: $5.26 per share

- 2020-10: $4.46 per share

- 2020-11: $5.26 per share

- 2020-12: $7.79 per share

- 2021-01: $8.41 per share

- 2021-02: $6.96 per share

- 2021-03: $6.28 per share

- 2021-04: $6.13 per share

- 2021-05: $6.71 per share

- 2021-06: $6.77 per share

- 2021-07: $6.11 per share

- 2021-08: $6.20 per share

- 2021-09: $6.41 per share

- 2021-10: $6.90 per share

- 2021-11: $7.75 per share

- 2021-12: $10.49 per share

- 2022-01: $8.69 per share

- 2022-02: $9.28 per share

- 2022-03: $8.86 per share

- 2022-04: $7.74 per share

- 2022-05: $7.08 per share

- 2022-06: $6.27 per share

- 2022-07: $7.03 per share

- 2022-08: $6.09 per share

- 2022-09: $4.64 per share

- 2022-10: $5.15 per share

- 2022-11: $3.82 per share

- 2022-12: $3.51 per share

- 2023-01: $3.75 per share

- 2023-02: $3.80 per share

- 2023-03: $6.06 per share

- 2023-04: $6.44 per share

- 2023-05: $9.67 per share

- 2023-06: $10.91 per share

- 2023-07: $11.36 per share

- 2023-08: $9.77 per share

- 2023-09: $10.30 per share

- 2023-10: $8.49 per share

- 2023-11: $9.09 per share

- 2023-12: $9.52 per share

- 2024-01: $8.88 per share

- 2024-02: $10.41 per share

- 2024-03: $12.65 per share

- 2024-04: $12.38 per share

- 2024-05: $14.21 per share

- 2024-06: $13.04 per share

- 2024-07: $15.16 per share

- 2024-08: $11.74 per share

- 2024-09: $12.11 per share

- 2024-10: $10.16 per share

- 2024-11: $11.22 per share

- 2024-12: $11.19 per share

- 2025-01: $11.71 per share

- 2025-02: $14.38 per share

- 2025-03: $9.87 per share

- 2025-04: $9.83 per share

- 2025-05: $14.32 per share

- 2025-06: $16.96 per share

- 2025-07: $16.20 per share

- 2025-08: $17.41 per share

- 2025-09: $16.95 per share

- 2025-10: $19.34 per share

- 2025-11: $14.50 per share

- 2025-12: $13.99 per share

- 2026-01: $12.69 per share

- 2026-02: $15.69 per share

- 2026-03: $14.23 per share

- 2026-04: $14.05 per share

- 2026-05: $13.34 per share

- 2026-06: $13.48 per share

- 2026-07: $14.72 per share

- 2026-08: $13.15 per share

- 2026-09: $12.40 per share

- 2026-10: $12.44 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1736946/000173694626000031/arlo-20251231.htm); period 2025-12-31, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.