Arlo reports Q1 adjusted EPS 15c, consensus 12c

Reports Q1 revenue $119.07M, consensus $118.35M. “Leveraging the operational momentum generated in 2024, Arlo again delivered outstanding results this quarter, highlighted by free cash flow margin of 23.6% and record level of non-GAAP EPS. The foundation of our financial results is the strong and consistent growth of our subscriptions business, which generated ARR of $276.4 million, up 21.8% from last year. Our subscriptions and services revenue grew more than 20% and drove a record non-GAAP subscriptions and services gross margin of 83.1%, which represents a phenomenal increase of 640 basis points year over year,” said Matthew McRae, Chief Executive Officer of Arlo Technologies (ARLO). “Our strong profitability enables us to execute on our capital allocation plan, buying back $15 million of our common stock while making a strategic investment in a key partner and still adding to our cash balance. And we are set up well for a successful second half with a rollout of an entirely updated product line this year, coupled with our award-winning, AI-powered SaaS platform which will expand our competitive differentiation as we progress towards our new long-range targets.”