Arlo Technologies (2VI) Q3 2026 Earnings Report

The call was strongly positive, with record subscriptions and services revenue, accelerating paid account growth, substantial EBITDA and earnings expansion, improving retention, strong retail and strategic partner momentum, and a roughly 30% ARR growth target for 2027. The main challenges were the year-over-year and sequential decline in product revenue, higher operating expenses tied to stated investments, lower inventory turns, and the timing of material contributions from new partnerships.

For the fourth quarter of 2026, Arlo expects total revenue in the range of $137 million-$147 million, with subscriptions and services revenue comprising more than 70% of total revenue, and non-GAAP net income per dilutive share in the range of $0.17-$0.23. For 2027, Arlo expects to target roughly 30% ARR growth, with the bulk driven by strategic accounts, Arlo Secure 7, and Aloe Care ramping year over year; Arlo Secure 7 coincides with the next-generation platform launch in the middle of next year. Comcast remains on schedule for a mid-2027 launch, with full-year impact not expected until 2028, while new partnerships could have a small amount of impact toward the end of 2027 but are more likely to have mostly a 2028 impact; the 30% target does not include any substantial material revenue from brand new partnerships that have not been discussed.