ARLO to Post Q4 Earnings: What's in the Cards for the Stock?

Arlo Technologies ARLO is scheduled to report fourth-quarter 2025 results on Feb. 26.

ARLO expects fourth-quarter 2025 total revenues between $131 million and $141 million, with non-GAAP earnings per share of 13 cents to 19 cents.

The Zacks Consensus Estimate for fourth-quarter 2025 revenues is pegged at $135.56 million, suggesting 11.5% growth from the year-ago quarter’s reported figure.

The consensus mark for fourth-quarter 2025 earnings is pinned at 16 cents per share, unchanged over the past 30 days, indicating a 60% year-over-year surge.
 

Arlo Technologies, Inc. Price and EPS Surprise

 

Arlo Technologies, Inc. price-eps-surprise | Arlo Technologies, Inc. Quote

The company beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 7.2%.
Let us see how things are likely to have shaped up ahead of the upcoming announcement.

Factors Likely to Have Shaped ARLO’s Q4 Performance

Arlo Technologies is expected to have gained in the fourth quarter of 2025 from its services-first strategy, which continues to drive annual recurring revenues and yield strong results. The increasing contribution from high-margin subscription offerings like Arlo Secure is likely to have supported revenue consistency and profitability during the quarter. A growing subscriber base and deeper adoption of AI-powered premium features are anticipated to have boosted Annual Recurring Revenue and enhanced operating leverage.

Arlo Technologies’ Secure 6 platform, powered by AI and equipped with advanced features, such as fire, audio detection and smart video search, likely drove stronger customer engagement and conversion gains. An increase in ARPU above $15 and a rise in subscriber lifetime value to more than $870 indicate solid demand for premium offerings, fueling improved monetization and retention. These trends are expected to have benefited the company in the to-be-reported quarter.

Arlo Technologies is expected to have benefited in the fourth quarter of 2025 from its largest-ever product refresh, featuring more than 100 new SKUs across its Essential, Pro and Ultra camera lines. The addition of Pan-Tilt Zoom designs not only reduced BOM costs by 20-35% but contributed approximately 30% year-over-year unit sales growth in the third quarter.

The volatile global tariff environment is expected to have adversely impacted Arlo Technologies’ fourth-quarter performance. The company’s reliance on overseas manufacturing exposes it to higher import duties, which likely raised product costs and lowered hardware margins. Continued tariff volatility suggests that higher production expenses are likely to have limited overall margin expansion in the to-be-reported quarter.

What Our Model Says About ARLO

Our proven model does not conclusively predict an earnings beat for Arlo Technologies this time around. According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.

ARLO has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:

Micron Technology MU has an Earnings ESP of +3.06% and currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Micron Technology shares have skyrocketed 340.3% in the past 12 months. MU is scheduled to release second-quarter 2026 results on March 19.

MongoDB MDB has an Earnings ESP of +0.05% and sports a Zacks Rank of #1 at present. 

MongoDB shares have returned 14.6% in the past 12 months. MDB is scheduled to release fourth-quarter 2026 results on March 2.

Credo Technology Group CRDO has an Earnings ESP of +3.54% and currently flaunts a Zacks Rank #1.

Credo Technology shares have surged 105.8% in the past 12 months. CRDO is set to report third-quarter fiscal 2026 results on March 2.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research