arlo-20260329

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 March 29, 2026


☐			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 108,609,817 as of May 1, 2026.


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	25
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 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 5.	Other Information	37
Item 6.	Exhibits	38
Signatures		39


	As of
	March 29, 2026		December 31, 2025
	(In thousands, except share and per share data)
ASSETS
Current assets:
Cash and cash equivalents	$	152,636	$	146,440
Short-term investments	14,862		19,985
Accounts receivable, net	52,174		39,666
Inventories	43,958		41,185
Prepaid expenses and other current assets	12,045		13,210
Total current assets	275,675		260,486
Property and equipment, net	14,178		13,158
Operating lease right-of-use assets, net	8,691		9,195
Goodwill	38,544		11,038
Intangible assets, net	19,490		—
Long-term investment	—		12,500
Other non-current assets	3,614		4,171
Total assets	$	360,192	$	310,548
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	40,184	$	42,826
Deferred revenue	52,187		37,139
Accrued liabilities	89,331		92,372
Total current liabilities	181,702		172,337
Non-current operating lease liabilities	6,230		6,743
Other non-current liabilities	12,858		3,627
Total liabilities	200,790		182,707
Commitments and contingencies (Note 8)
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: 108,745,373 at March 29, 2026 and 105,030,947 at December 31, 2025	108		105
Additional paid-in capital	527,457		510,759
Accumulated other comprehensive income (loss)	(1)		16
Accumulated deficit	(368,162)		(383,039)
Total stockholders’ equity	159,402		127,841
Total liabilities and stockholders’ equity	$	360,192	$	310,548


	Three Months Ended
	March 29, 2026		March 30, 2025
	(In thousands, except per share data)
Revenue:
Subscriptions and services	$	90,099	$	68,849
Products	60,283		50,217
Total revenue	150,382		119,066
Cost of revenue:
Subscriptions and services	14,682		12,265
Products	63,032		54,074
Total cost of revenue	77,714		66,339
Gross profit	72,668		52,727
Operating expenses:
Research and development	22,814		16,165
Sales and marketing	22,654		20,203
General and administrative	18,207		17,785
Other operating expense	1,435		25
Total operating expenses	65,110		54,178
Income (loss) from operations	7,558		(1,451)
Other income, net:
Gain on sale of long-term investment	6,423		—
Interest income, net	1,241		1,316
Other income (expense), net	70		(198)
Total other income, net	7,734		1,118
Income (loss) before income taxes	15,292		(333)
Provision for income taxes	415		502
Net income (loss)	$	14,877	$	(835)

Earnings (loss) per share:
Basic	$	0.14	$	(0.01)
Diluted	$	0.13	$	(0.01)
Weighted-average common shares outstanding:
Basic	106,995		102,217
Diluted	110,488		102,217

Comprehensive income (loss):
Net income (loss)	$	14,877	$	(835)
Other comprehensive loss, net of tax	(17)		(29)
Total comprehensive income (loss)	$	14,860	$	(864)


Contract Classification	Balance Sheet Classification	March 29, 2026		December 31, 2025		$ change		% change
		(In thousands)
Receivables	Accounts receivable, net	$	52,174	$	39,666	$	12,508	31.5	%
Contract liabilities, current	Deferred revenue	$	52,187	$	37,139	$	15,048	40.5	%
Contract liabilities, non-current	Other non-current liabilities	$	1,239	$	1,476	$	(237)	(16.1)	%


	Three Months Ended
Sales incentives	March 29, 2026		March 30, 2025
	(In thousands)
Balance at the beginning of the period	$	29,124	$	29,846
Credits issued	(17,668)		(21,718)
Additions	14,994		20,250
Balance at the end of the period	$	26,450	$	28,378


	Three Months Ended
Sales returns	March 29, 2026		March 30, 2025
	(In thousands)
Balance at the beginning of the period	$	9,273	$	11,651
Credits issued	(2,789)		(5,503)
Additions	718		2,815
Balance at the end of the period	$	7,202	$	8,963


Cash paid at close	$	36,000
Fixed deferred acquisition consideration	12,907
Total purchase consideration	$	48,907


Assets acquired:
Inventory	$	1,911
Intangible assets	19,490
Goodwill	27,506
Total assets acquired	$	48,907
Liabilities assumed:


Total liabilities assumed	$	—
Fair value of assets acquired and liabilities assumed, net	$	48,907


	As of March 29, 2026								As of December 31, 2025
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
	(In thousands)
U.S. Treasuries	$	14,863	$	—	$	(1)	$	14,862	$	19,980	$	5	$	—	$	19,985


2026 (Remaining nine months)	$	1,512
2027	2,026
2028	2,026
2029	2,026
2030	2,026
Thereafter	9,874
Total	$	19,490


	Three Months Ended
	March 29, 2026		March 30, 2025
	(In thousands)
Total stockholders’ equity, beginning balances	$	127,841	$	100,909

Common stock and additional paid-in capital:
Beginning balances	$	510,864	$	498,840
Stock-based compensation	10,986		13,115
Settlement of liability classified restricted stock units	13,848		4,996
Issuance of common stock under stock-based compensation plans	—		649

Repurchases of common stock	(8,133)		(15,435)
Ending balances	$	527,565	$	502,165

Accumulated deficit:
Beginning balances	$	(383,039)	$	(397,965)
Net income (loss)	14,877		(835)
Ending balances	$	(368,162)	$	(398,800)

Accumulated other comprehensive income (loss):
Beginning balances	$	16	$	34
Other comprehensive loss, net of tax	(17)		(29)
Ending balances	$	(1)	$	5

Total stockholders’ equity, ending balances	$	159,402	$	103,370

Common stock shares:
Beginning balances	105,031		100,885
Issuance of common stock under stock-based compensation plans	4,286		3,817

Repurchases of common stock	(572)		(1,397)
Ending balances	108,745		103,305


	As of
	March 29, 2026		December 31, 2025
	(In thousands)
Machinery and equipment	$	16,124	$	16,093
Capitalized software development costs	24,702		22,002
Software and license	5,853		5,877
Computer equipment	881		881
Leasehold improvements	941		941
Furniture and fixtures	1,404		1,393
Total property and equipment, gross	49,905		47,187
Less: accumulated depreciation and amortization	(35,727)		(34,029)
Total property and equipment, net	$	14,178	$	13,158