Arlo Q2 revenue up 34% YoY to $316 mln, subscriptions revenue up 30% YoY to $78 mln.

• Arlo reports Q2 2025 results with $316m ARR, up 34% YoY • Record $78m subscriptions and services revenue, 30% YoY growth • 84% GAAP and 85% non-GAAP subscriptions and services gross margin • $18m adjusted EBITDA and 14% adjusted EBITDA margin • $0.03 GAAP EPS and $0.17 non-GAAP EPS

Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home security platform company, has reported its second-quarter 2025 financial results, showcasing robust growth and improved profitability. The company's annualized recurring revenue (ARR) surged to $316 million, marking a 34% year-over-year (YoY) increase [1].

The company's subscriptions and services revenue reached a record $78 million, growing by 30% YoY, and accounted for 60.4% of total revenues. This growth was driven by the successful launch of the new AI platform, Arlo Secure 6, earlier this year. The company's non-GAAP subscriptions and services gross margin reached 85%, up 850 basis points YoY, and contributed to a record GAAP net income per share of $0.03 [1].

The company's adjusted EBITDA stood at $18 million, up 82.3% YoY, with an adjusted EBITDA margin of 13.9%. The GAAP gross margin improved to 44.9%, up approximately 800 basis points YoY, while the non-GAAP gross margin was 45.8%. The company also reported a GAAP net income per share of $0.03 and a non-GAAP net income per share of $0.17 [1].

Cumulative paid accounts increased to 5.1 million, growing 28.5% YoY, and free cash flow (FCF) for the first half of 2025 was $34.0 million with an FCF margin of 13.7%. The company ended the quarter with a cash and cash equivalents and short-term investments balance of $160.4 million, up $16.4 million YoY [1].

Matthew McRae, Chief Executive Officer of Arlo Technologies, commented, "The launch of our new AI platform, Arlo Secure 6, earlier this year is driving growth in our subscriptions business and propelling the company to record financial results. This subscription momentum coupled with our Holiday product launches and announcement of ADT as a strategic partner positions Arlo for continuing success."

The company also provided an outlook for the third quarter 2025, expecting revenue between $133 million and $143 million, with non-GAAP net income per share diluted ranging from $0.12 to $0.18 [1].

References:
[1] https://www.marketscreener.com/news/arlo-reports-second-quarter-2025-results-ce7c5edcd98ff624