For the quarter ended December 2025, Arlo Technologies (ARLO) reported revenue of $141.3 million, up 16.2% over the same period last year. EPS came in at $0.22, compared to $0.10 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $135.56 million, representing a surprise of +4.24%. The company delivered an EPS surprise of +34.39%, with the consensus EPS estimate being $0.16.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Arlo Technologies performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Non-GAAP gross margin - Services: 84% compared to the 85% average estimate based on three analysts.
- Non-GAAP gross margin - Products: -14.4% versus -16.3% estimated by three analysts on average.
- Revenue- Services: $89.39 million compared to the $83.51 million average estimate based on three analysts. The reported number represents a change of +39.4% year over year.
- Revenue- Products: $51.91 million versus the three-analyst average estimate of $52.01 million. The reported number represents a year-over-year change of -9.6%.
View all Key Company Metrics for Arlo Technologies here>>>
Shares of Arlo Technologies have returned -7.5% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Arlo Technologies, Inc. (ARLO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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