Arlo Reports Third Quarter 2026 Results

Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home security platform company, today reported financial results for the third quarter ended September 27, 2026.

“Arlo continued its outstanding momentum into the third quarter, delivering 20% growth in subscriptions and services revenue and expanding profitability with adjusted EBITDA up over 50% year over year,” said Matthew McRae, Chief Executive Officer of Arlo Technologies. “And the recent launch of Arlo Secure 7 powered by AI-enabled Threat Assessment keeps Arlo at the forefront of innovation while cementing the foundation for continued growth into the future. Our level of confidence in our future growth opportunities is underscored by the recent authorization of a $100 million share repurchase program.”

Financial Summary

Record subscriptions and services revenue of $96.0 million, growing 20.1% year over year, accounting for 64.4% of total revenues.
Ended with ARR of $369.9 million, growing 14.5% year over year.
GAAP subscriptions and services gross margin of 81.0% and non-GAAP subscriptions and services gross margin of 83.9%.
GAAP gross margin of 46.5% and non-GAAP gross margin of 49.0%; growing 600 and 760 basis points year over year, respectively.
Adjusted EBITDA of $26.9 million, growing 57.6% year over year with adjusted EBITDA margin of 18.0%.
GAAP EPS of $0.01 and non-GAAP EPS of $0.24.
Cumulative paid accounts increased to 6.6 million, growing 23.1% year over year.
Free cash flow (FCF)⁽³⁾of $50.6 million with FCF margin of 11.1% in the 2026 year-to-date period.
Cash and cash equivalents and short-term investments of $144.0 million, including the cash outflows for our business acquisitions and stock repurchases.

Business Highlights

Repurchased $14 million of common stock during the third quarter, as part of the authorized stock repurchase program of $50 million.
Announced the authorization of a new stock repurchase program of up to an aggregate of $100 million through December 31, 2028.
Launched Arlo Secure 7 Smart Security, which introduced new AI-driven innovations including Threat Assessment and Arlo Summary.
Introduced Arlo Ultra Secure Plan with 24/7 monitoring for consumers and small businesses seeking continuous video recording capabilities.

	Three Months Ended									Nine Months Ended
	September 27, 2026			June 28, 2026			September 28, 2025			September 27, 2026			September 28, 2025
	(In thousands, except percentage and per share data)
Revenue	$	149,177		$	155,937		$	139,529		$	455,496		$	388,000
GAAP gross margin		46.5	%		48.2	%		40.5	%		47.7	%		43.1	%
Non-GAAP gross margin ⁽²⁾		49.0	%		50.6	%		41.4	%		49.9	%		44.1	%
GAAP EPS – diluted	$	0.01		$	0.03		$	0.06		$	0.17		$	0.08
Non-GAAP EPS – diluted ⁽²⁾	$	0.24		$	0.28		$	0.16		$	0.80		$	0.49

_________________________
(1)		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.

(2)		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.

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

Fourth Quarter 2026 Business Outlook ^{(4) (5)}

A reconciliation of our business outlook on a GAAP and non-GAAP basis is provided in the following table:

	Three Months Ended December 31, 2026
	Revenue	EPS – diluted
	(In millions)
GAAP	$137 – $147	$(0.03) – $0.03
Estimated adjustment for stock-based compensation and other expenses	—	$0.20
Non-GAAP	$137 – $147	$0.17 – $0.23

_________________________
(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.

Investor Conference Call / Webcast Details

Arlo will review the third quarter 2026 results and discuss management’s expectations for the fourth quarter and full year 2026 today, Thursday, November 5, 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 199057300. 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.

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, including subscriptions and services revenue growth, 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 annual guidance on total revenue and earnings per share for 2026 and beyond; 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 could 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 is 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, amortization of software development cost, depreciation expenses, acquisition-related expense, gain on early lease termination, gain on sale of long-term investment, 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.

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, amortization of software development cost, depreciation expenses, acquisition-related expense, gain on early lease termination, gain on sale of long-term investment, 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


ARLO TECHNOLOGIES, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)

	As of
	September 27, 2026			December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	79,587		$	146,440
Short-term investments		64,462			19,985
Accounts receivable, net		61,253			39,666
Inventories		52,258			41,185
Restricted cash		1,920			—
Prepaid expenses and other current assets		17,816			13,210
Total current assets		277,296			260,486
Property and equipment, net		18,769			13,158
Operating lease right-of-use assets, net		7,661			9,195
Goodwill		47,936			11,038
Intangible assets, net		24,784			—
Long-term investment		—			12,500
Other non-current assets		4,112			4,171
Total assets	$	380,558		$	310,548

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	49,604		$	42,826
Deferred revenue		46,866			37,139
Accrued liabilities		92,697			92,372
Total current liabilities		189,167			172,337
Non-current operating lease liabilities		5,224			6,743
Other non-current liabilities		15,344			3,627
Total liabilities		209,735			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: 107,510,546 at September 27, 2026 and 105,030,947 at December 31, 2025		107			105
Additional paid-in capital		535,009			510,759
Accumulated other comprehensive income (loss)		(21	)		16
Accumulated deficit		(364,272	)		(383,039	)
Total stockholders’ equity		170,823			127,841
Total liabilities and stockholders’ equity	$	380,558		$	310,548


ARLO TECHNOLOGIES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except percentage and per share data)

	Three Months Ended									Nine Months Ended
	September 27, 2026			June 28, 2026			September 28, 2025			September 27, 2026			September 28, 2025
Revenue:
Subscriptions and services	$	96,032		$	93,047		$	79,942		$	279,178		$	226,966
Products		53,145			62,890			59,587			176,318			161,034
Total revenue		149,177			155,937			139,529			455,496			388,000
Cost of revenue:
Subscriptions and services		18,209			17,582			12,424			50,473			36,924
Products		61,606			63,139			70,599			187,777			183,768
Total cost of revenue		79,815			80,721			83,023			238,250			220,692
Gross profit		69,362			75,216			56,506			217,246			167,308
Gross margin		46.5	%		48.2	%		40.5	%		47.7	%		43.1	%
Operating expenses:
Research and development		22,724			23,658			18,144			69,196			52,798
Sales and marketing		22,986			24,085			20,459			69,725			61,765
General and administrative		22,398			23,128			15,091			63,733			49,210
Other operating expense		224			1,889			1,940			3,548			2,181
Total operating expenses		68,332			72,760			55,634			206,202			165,954
Income from operations		1,030			2,456			872			11,044			1,354
Operating margin		0.7	%		1.6	%		0.6	%		2.4	%		0.3	%
Other income, net:
Gain on early lease termination		—			—			4,144			—			4,144
Gain on sale of long-term investment		—			—			—			6,423			—
Interest income, net		1,087			979			1,508			3,307			4,168
Other income (expense), net		82			25			503			177			(102	)
Total other income, net		1,169			1,004			6,155			9,907			8,210
Income before income taxes		2,199			3,460			7,027			20,951			9,564
Provision for income taxes		1,337			432			154			2,184			402
Net income	$	862		$	3,028		$	6,873		$	18,767		$	9,162

Earnings per share:
Basic	$	0.01		$	0.03		$	0.07		$	0.17		$	0.09
Diluted	$	0.01		$	0.03		$	0.06		$	0.17		$	0.08
Weighted-average common shares outstanding:
Basic		107,663			108,123			105,198			107,600			103,776
Diluted		110,604			110,819			109,638			110,915			108,664


ARLO TECHNOLOGIES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

	Nine Months Ended
	September 27, 2026			September 28, 2025
Cash flows from operating activities:
Net income	$	18,767		$	9,162
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense, net of amounts capitalized		63,176			45,133
Depreciation and amortization		7,687			2,586
Gain on early lease termination		—			(4,144	)
Gain on sale of long-term investment		(6,423	)		—
Allowance for credit losses and non-cash changes to reserves		5,900			994
Deferred income taxes		326			(306	)
Discount accretion on investments and other		(705	)		(2,180	)
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable, net		(21,568	)		(19,400	)
Inventories		(12,531	)		(4,696	)
Prepaid expenses and other assets		(4,745	)		(883	)
Accounts payable		4,734			14,422
Deferred revenue		9,837			12,964
Accrued and other liabilities		(4,941	)		5,300
Net cash provided by operating activities		59,514			58,952
Cash flows from investing activities:
Purchases of property and equipment, including capitalized software		(8,947	)		(9,996	)
Purchases of short-term investments		(108,797	)		(112,932	)
Purchase of long-term investment		—			(12,500	)
Acquisitions of businesses, net of cash acquired		(48,155	)		—
Proceeds from maturities of short-term investments		64,989			105,000
Proceeds from sale of long-term investment		18,923			—
Net cash used in investing activities		(81,987	)		(30,428	)
Cash flows from financing activities:
Proceeds from employee stock plans		1,955			2,280
Repurchases of common stock		(44,415	)		(26,824	)
Net cash used in financing activities		(42,460	)		(24,544	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		(64,933	)		3,980
Cash, cash equivalents, and restricted cash, at beginning of period		146,440			82,032
Cash, cash equivalents, and restricted cash, at end of period	$	81,507		$	86,012
Reconciliation of cash, cash equivalents, and restricted cash to Consolidated Balance Sheets:
Cash and cash equivalents	$	79,587		$	86,012
Restricted cash		1,920			—
Total cash, cash equivalents, and restricted cash	$	81,507		$	86,012
Non-cash investing activities:
Purchases of property and equipment included in accounts payable and accrued liabilities	$	880		$	423
Stock-based compensation expense capitalized for software development	$	1,585		$	1,402


ARLO TECHNOLOGIES, INC.

RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (UNAUDITED)
(In thousands, except percentage data)

	Three Months Ended									Nine Months Ended
	September 27, 2026			June 28, 2026			September 28, 2025			September 27, 2026			September 28, 2025
GAAP gross profit:
Subscriptions and services	$	77,823		$	75,465		$	67,518		$	228,705		$	190,042
Products		(8,461	)		(249	)		(11,012	)		(11,459	)		(22,734	)
Total GAAP gross profit		69,362			75,216			56,506			217,246			167,308
GAAP gross margin:
Subscriptions and services		81.0	%		81.1	%		84.5	%		81.9	%		83.7	%
Products		(15.9	)%		(0.4	)%		(18.5	)%		(6.5	)%		(14.1	)%
Total GAAP gross margin		46.5	%		48.2	%		40.5	%		47.7	%		43.1	%
Stock-based compensation – Subscriptions and services cost		283			262			121			845			581
Stock-based compensation – Products cost		930			874			492			2,878			2,034
Amortization of software development cost		1,533			1,275			364			4,064			977
Amortization of intangible assets		929			1,217			—			2,146			—
Others		—			—			233			—			233
Non-GAAP gross profit:
Subscriptions and services		80,568			78,219			68,003			235,760			191,600
Products		(7,531	)		625			(10,287	)		(8,581	)		(20,467	)
Total Non-GAAP gross profit	$	73,037		$	78,844		$	57,716		$	227,179		$	171,133
Non-GAAP gross margin:
Subscriptions and services		83.9	%		84.1	%		85.1	%		84.5	%		84.4	%
Products		(14.2	)%		1.0	%		(17.3	)%		(4.9	)%		(12.7	)%
Total Non-GAAP gross margin		49.0	%		50.6	%		41.4	%		49.9	%		44.1	%

GAAP net income	$	862		$	3,028		$	6,873		$	18,767		$	9,162
Stock-based compensation expense		21,732			21,710			13,138			63,176			45,133
Depreciation and amortization		3,062			2,928			899			7,687			2,586
Acquisition-related expense		22			1,667			—			3,018			—
Other cost and operating expense		1,076			1,871			2,173			3,053			2,414
Gain on early lease termination		—			—			(4,144	)		—			(4,144	)
Gain on sale of long-term investment		—			—			—			(6,423	)		—
Interest income, net		(1,087	)		(979	)		(1,508	)		(3,307	)		(4,168	)
Other (income) expense, net		(82	)		(25	)		(503	)		(177	)		102
Provision for income taxes		1,337			432			154			2,184			402
Adjusted EBITDA	$	26,922		$	30,632		$	17,082		$	87,978		$	51,487
Adjusted EBITDA margin		18.0	%		19.6	%		12.2	%		19.3	%		13.3	%


ARLO TECHNOLOGIES, INC.

RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (UNAUDITED) (CONTINUED)
(In thousands, except percentage and per share data)

	Three Months Ended									Nine Months Ended
	September 27, 2026			June 28, 2026			September 28, 2025			September 27, 2026			September 28, 2025
GAAP net income	$	862		$	3,028		$	6,873		$	18,767		$	9,162
Stock-based compensation expense		21,732			21,710			13,138			63,176			45,133
Gain on early lease termination		—			—			(4,144	)		—			(4,144	)
Gain on sale of long-term investment		—			—			—			(6,423	)		—
Others		3,907			6,360			2,190			13,044			3,195
Non-GAAP net income	$	26,501		$	31,098		$	18,057		$	88,564		$	53,346

GAAP EPS – diluted	$	0.01		$	0.03		$	0.06		$	0.17		$	0.08
Stock-based compensation expense		0.20			0.20			0.12			0.58			0.42
Gain on early lease termination		—			—			(0.04	)		—			(0.04	)
Gain on sale of long-term investment		—			—			—			(0.06	)		—
Others		0.03			0.05			0.02			0.11			0.03
Non-GAAP EPS – diluted	$	0.24		$	0.28		$	0.16		$	0.80		$	0.49

Weighted-average common shares outstanding:
Basic		107,663			108,123			105,198			107,600			103,776
Diluted		110,604			110,819			109,638			110,915			108,664

Free cash flow:
Net cash provided by operating activities	$	20,242		$	11,408		$	19,202		$	59,514		$	58,952
Less: purchases of property and equipment, including capitalized software		(3,621	)		(2,907	)		(4,218	)		(8,947	)		(9,996	)
Free cash flow ⁽¹⁾	$	16,621		$	8,501		$	14,984		$	50,567		$	48,956
Free cash flow margin⁽¹⁾		11.1	%		5.5	%		10.7	%		11.1	%		12.6	%

_________________________
(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.


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
	September 27, 2026		June 28, 2026		March 29, 2026		December 31, 2025		September 28, 2025
Cash, cash equivalents and short-term investments	$	144,049	$	141,131	$	167,498	$	166,425	$	165,544

Accounts receivable, net	$	61,253	$	63,607	$	52,174	$	39,666	$	76,698
Days sales outstanding		37		37		31		26		50

Inventories	$	52,258	$	48,415	$	43,958	$	41,185	$	44,371
Inventory turns		4.7		5.2		5.7		5.9		6.4

Weeks of channel inventory:
U.S. retail channel		14.6		9.6		13.2		10.1		12.5
U.S. distribution channel		14.9		5.9		9.5		3.0		5.5
APAC distribution channel		4.4		5.5		8.6		5.2		3.7

Deferred revenue (current and non-current)	$	48,481	$	51,799	$	53,426	$	38,615	$	40,515

Cumulative registered accounts ⁽¹⁾		14,150		13,569		13,052		12,141		11,792
Cumulative paid accounts ⁽²⁾		6,643		6,303		6,005		5,687		5,396
Annual recurring revenue (ARR) ⁽³⁾	$	369,902	$	364,959	$	356,921	$	330,489	$	323,150

Headcount		390		384		369		376		374
Diluted shares		110,604		110,819		110,488		110,353		109,638

_________________________
(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 par

(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.


REVENUE BY GEOGRAPHY
(In thousands, except percentage data)

	Three Months Ended												Nine Months Ended
	September 27, 2026				June 28, 2026				September 28, 2025				September 27, 2026				September 28, 2025
Americas	$	90,542	60.7	%	$	88,969	57.1	%	$	83,831	60.1	%	$	263,497	57.8	%	$	235,830	60.8	%
EMEA		52,685	35.3	%		61,479	39.4	%		49,602	35.5	%		174,829	38.4	%		135,817	35.0	%
APAC		5,950	4.0	%		5,489	3.5	%		6,096	4.4	%		17,170	3.8	%		16,353	4.2	%
Total	$	149,177	100.0	%	$	155,937	100.0	%	$	139,529	100.0	%	$	455,496	100.0	%	$	388,000	100.0	%

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