arlo-20250629

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 29, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-38618

ARLO TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)


Delaware		38-4061754
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

5770 Fleet Street
Carlsbad,	California	92008
(Address of principal executive offices)		(Zip Code)

(408) 890-3900

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

ARLO

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

The number of outstanding shares of the registrant’s Common Stock, $0.001 par value, was 104,370,654 as of August 1, 2025.

Table of Contents

Arlo Technologies, Inc.

Form 10-Q

For the Quarterly Period Ended June 29, 2025

TABLE OF CONTENTS


PART I: FINANCIAL INFORMATION
		Page
Item 1.	Financial Statements	3
	Unaudited Condensed Consolidated Balance Sheets	3
	Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)	4
	Unaudited Condensed Consolidated Statements of Stockholders’ Equity	5
	Unaudited Condensed Consolidated Statements of Cash Flows	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	35

PART II: OTHER INFORMATION

Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 5.	Other Information	38
Item 6.	Exhibits	39
Signatures		40

Table of Contents

PART I: FINANCIAL INFORMATION

Item 1.Financial Statements

ARLO TECHNOLOGIES, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS


	As of
	June 29, 2025		December 31, 2024
	(In thousands, except share and per share data)
ASSETS
Current assets:
Cash and cash equivalents	$	71,244	$	82,032
Short-term investments	89,157		69,419
Accounts receivable, net	61,450		57,332
Inventories	30,877		40,633
Prepaid expenses and other current assets	15,889		13,190
Total current assets	268,617		262,606
Property and equipment, net	8,980		4,765
Operating lease right-of-use assets, net	14,147		15,698
Goodwill	11,038		11,038
Long-term investment	12,500		—
Other non-current assets	4,459		4,293
Total assets	$	319,741	$	298,400
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	50,178	$	63,784
Deferred revenue	42,107		27,248
Accrued liabilities	89,998		85,730
Total current liabilities	182,283		176,762
Non-current operating lease liabilities	16,603		18,357
Other non-current liabilities	2,581		2,372
Total liabilities	201,467		197,491
Commitments and contingencies (Note 7)
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: 104,288,914 at June 29, 2025 and 100,885,158 at December 31, 2024	104		101
Additional paid-in capital	513,854		498,739
Accumulated other comprehensive income (loss)	(8)		34
Accumulated deficit	(395,676)		(397,965)
Total stockholders’ equity	118,274		100,909
Total liabilities and stockholders’ equity	$	319,741	$	298,400

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Contents

ARLO TECHNOLOGIES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)


	Three Months Ended				Six Months Ended
	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
	(In thousands, except per share data)
Revenue:
Subscriptions and services	$	78,175	$	60,261	$	147,024	$	116,968
Products	51,230		67,186		101,447		134,679
Total revenue	129,405		127,447		248,471		251,647
Cost of revenue:
Subscriptions and services	12,235		14,557		24,500		28,153
Products	59,095		66,036		113,169		129,260
Total cost of revenue	71,330		80,593		137,669		157,413
Gross profit	58,075		46,854		110,802		94,234

Operating expenses:
Research and development	18,489		19,561		34,654		40,354
Sales and marketing	21,103		17,698		41,306		35,068
General and administrative	16,334		21,430		34,119		40,778
Other operating expense	216		966		241		1,445
Total operating expenses	56,142		59,655		110,320		117,645

Income (loss) from operations	1,933		(12,801)		482		(23,411)
Interest income, net	1,344		1,495		2,660		2,881
Other non-operating expense, net	(407)		(18)		(605)		(43)
Income (loss) before income taxes	2,870		(11,324)		2,537		(20,573)
Provision (benefit) for income taxes	(254)		236		248		631
Net income (loss)	$	3,124	$	(11,560)	$	2,289	$	(21,204)

Net income (loss) per share:
Basic	$	0.03	$	(0.12)	$	0.02	$	(0.22)
Diluted	$	0.03	$	(0.12)	$	0.02	$	(0.22)
Weighted average shares used to compute net income (loss) per share:
Basic	103,885		97,843		103,060		97,051
Diluted	108,061		97,843		107,692		97,051

Comprehensive income (loss):
Net income (loss)	$	3,124	$	(11,560)	$	2,289	$	(21,204)
Other comprehensive loss, net of tax	(13)		(89)		(42)		(129)
Total comprehensive income (loss)	$	3,111	$	(11,649)	$	2,247	$	(21,333)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Contents

ARLO TECHNOLOGIES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY


	Three Months Ended				Six Months Ended
	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
	(In thousands)
Total stockholders’ equity, beginning balances	$	103,370	$	99,937	$	100,909	$	103,276

Common stock:
Beginning balances	$	103	$	97	$	101	$	95
Issuance of common stock under stock-based compensation plans	1		2		4		5
Issuance of common stock under employee stock purchase plan	—		—		—		—
Repurchase of common stock	—		—		(1)		—
Restricted stock unit withholdings	—		(1)		—

SEC Form 10-Q filed by Arlo Technologies Inc.