EarningsQ2 2026 Earnings Report
MX:ARLO Q2 2026 EPS Results
Actual EPS$5.07
Consensus EPS$3.53
Beat/MissBeat by +$1.54
One Year Ago EPS$3.08
MX:ARLO Q2 2026 Revenue Results
Actual Revenue$2.82B
Expected Revenue$2.70B
Beat/MissBeat by +$126.56M
YoY Revenue Growth+20.50%
Earnings Announcement Details
QuarterQ2 2026
Date08/06/2026
TimeAfter Close
Conference CallThursday, August 6, 2026
MX:ARLO Upcoming Earnings
Arlo Technologies's next earnings date is estimated for November 5, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:ARLO Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The earnings call conveyed strong operational momentum and multiple record achievements: double-digit top-line growth, robust subscription additions, higher ARPU/LTV, significant adjusted EBITDA expansion, raised full-year guidance, and a clear product and services roadmap (Secure 7 and Secure 8). Material positives include strong cash generation, active share repurchases, successful early M&A integration (Aloe Care) and partnership progress (ADT, Comcast). Offsetting these positives are near-term margin pressure on product sales (pro forma product gross margin ~-11.6%), intentional negative product margins as a CAC strategy, an inventory build with lower turns, and reliance on tariff refunds for a portion of near-term profit boosts. Overall, the company appears to be trading some near-term product margin for longer-term subscription and ARR growth with an optimistic roadmap and raised guidance.Company Guidance
Record Revenue and Top-Line Growth
Total revenue of $155.9M (rounded to $156M) set a company record and grew ~20-21% year-over-year; service revenue reached a record $93M, up 19% YoY and comprised ~60% of total revenue.
Strong Subscription Momentum and Account Growth
Added ~298,000 paid accounts in Q2, bringing total paid accounts to 6.3M (well ahead of trajectory to the 10M target); ARR grew to $365M, up 16% YoY; POS units in retail/direct up ~8-9% for the quarter/first half.
Higher Customer Value and Improved Retention
Average revenue per user (ARPU) increased, churn declined, monthly and annual renewals were above forecast; lifetime value (LTV) of a paid account rose to $967, up 15% YoY.
Margin Expansion and Profitability Gains
Consolidated non-GAAP gross margin surpassed 50% (record), up ~480 basis points YoY; adjusted EBITDA was $30.6M, up 70% YoY, representing a 20% adjusted EBITDA margin.
Earnings Per Share and Cash Generation
Non-GAAP net income per diluted share was $0.28, up 65% YoY (includes $0.07 benefit from an $8M tariff refund); pro forma EPS excluding the tariff benefit was $0.21. For the six months ended June 28, 2026, free cash flow was $33.9M with an 11% free cash flow margin.
Product Revenue Strength and Channel Execution
Product revenue was $62.9M, up 23% YoY, driven by international growth and retail shipments (including timing into Amazon Prime Day); retail POS growth supported conversion and attach opportunities for subscriptions.
Capital Allocation and Shareholder Returns
Bought back nearly 6M shares since program inception and repurchased more than $20M of shares in Q2; ended the quarter with ~$141M in cash, cash equivalents and short-term investments after the Aloe Care acquisition ($15M cash paid).
Strategic M&A and New Market Entry
Origin AI investment generated >50% return; acquisition of Aloe Care positions Arlo to address the $30B+ smart elder care / aging-in-place market with early partner deployments (e.g., Home Helpers) and expected additional partner announcements.
Product Roadmap and Innovation
Arlo Secure 7 scheduled to launch end of Q3 with advanced AI threat-assessment features and higher-tier service plans; next-generation hardware plus Arlo Secure 8 targeted for 2027 to drive higher ARPU and LTV.
Raised Full-Year Guidance
Company raised full-year 2026 guidance to $580M–$600M in total revenue and non-GAAP net income per diluted share to $0.90–$1.00; Q3 revenue guide $140M–$150M and non-GAAP EPS guide $0.17–$0.23.
MX:ARLO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed