Arlo Surpasses $300M ARR Milestone, Achieving Elite Status as Public Company

Arlo Technologies has surpassed $300M in annual recurring revenue, driven by growth from its subscription services and AI-powered smart security platform. The company has achieved this milestone in less than six years, with over 11 million registered households and 5 million paid subscribers. Arlo's commitment to innovation and operational excellence has enabled it to outpace its peers, and the company will host the opening bell at the NYSE on July 9, 2025.

Arlo Technologies, Inc. (ARLO) has achieved a significant milestone by surpassing $300M in annual recurring revenue (ARR) in the second quarter of 2025. This remarkable growth is driven by the company's robust subscription services and AI-powered smart security platform. Arlo has accomplished this feat in less than six years, with over 11 million registered households and 5 million paid subscribers.

The company's Q2 2025 earnings report highlighted strong financial performance. Total revenue reached $129 million, up 30% year-over-year, with subscriptions and services revenue accounting for 60% of total revenue. This segment saw a 30% increase year-over-year, reaching $78 million. The company's ARR also grew to $316 million, up 34% year-over-year [1].

Arlo's Chief Executive Officer, Matthew McRae, attributed the growth to the launch of the new AI platform, Arlo Secure 6, which has been driving growth in the subscriptions business. The company's non-GAAP subscriptions and services gross margin reached a record 85%, up 850 basis points year-over-year, contributing to a record GAAP net income per share of $0.03 [2].

The company's strategic partnership with ADT is expected to provide material upside to its subscriptions and services revenue starting in 2026. Additionally, Arlo is set to execute the largest product release in its history, with over 100 new SKUs launching throughout its channels this fall.

Looking ahead, Arlo expects to generate subscriptions and services revenue above $310 million in 2025, growing at over 27% with a non-GAAP subscriptions and services gross margin of 85%. The company's ARR at year-end is projected to be $335 million, up over 30% compared to the prior year period [1].

Arlo's commitment to innovation and operational excellence has positioned it to outpace its peers. The company will host the opening bell at the NYSE on July 9, 2025, marking its significant achievements in the smart home security market.

References:
[1] https://seekingalpha.com/news/4482177-arlo-targets-310m-in-2025-service-revenue-with-20-30-percent-camera-unit-growth-amid-major
[2] https://www.marketscreener.com/news/arlo-reports-second-quarter-2025-results-ce7c5edcd98ff624