Arlo Technologies Stock Surges After Q4 Beat, Upbeat Q1 Outlook

Shares of Arlo Technologies Inc (NYSE:ARLO) are trading higher Friday morning after the smart home security company posted stronger-than-expected fourth-quarter results and issued upbeat guidance for the first quarter. Here’s what investors need to know.

• Arlo Technologies stock is among today’s top performers. Why is ARLO stock up today?

Revenue Jumps 16% Year-Over-Year

For the fourth-quarter, Arlo reported adjusted earnings of 22 cents per share, topping Wall Street's 16 cent consensus, while revenue rose 16% from a year earlier to $141.3 million, above expectations of about $135.6 million. The company cited record gross margins and continued strength in its subscription and services business.

Arlo projected first-quarter adjusted earnings of 17 cents to 23 cents per share, with the midpoint above analysts' 17-cent estimate. Management forecasted first-quarter revenue between $135 million and $145 million, also ahead of the roughly $132 million analysts had been expecting.

Annual Recurring Revenue Climbs 28%

The company said annual recurring revenue reached roughly $330 million in the fourth quarter, up about 28% year over year, as subscriptions and services accounted for a growing majority of sales. Adjusted EBITDA for the quarter climbed to $23.3 million, while cash and short-term investments stood at about $166 million at year-end.

Arlo's CEO highlighted the firm's expanding base of paid accounts and recent partnership deals as key drivers of profitable growth.

Arlo Shares Swing Between Key Levels

Arlo Technologies shares traded between a 52-week low of $8.41 and a high of $19.44, climbing steadily into late 2025 before pulling back into early 2026.

The stock is currently trending above its 20- and 50-day moving averages but remains near its rising 200-day average, suggesting strong near-term momentum within a longer-term uptrend.

ARLO Shares Surge Friday Morning

ARLO Price Action: Arlo Technologies shares were up 28.77% at $15.88 at the time of publication on Friday, according to Benzinga Pro data.

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