Arlo Technologies 2025 Q3 Earnings Profitability Turns Positive with 254.8% Net Income Surge

Arlo Technologies (ARLO) exceeded expectations in its fiscal 2025 Q3 earnings report, posting a net income of $6.87 million—a 254.8% turnaround from a $4.44 million loss in the prior-year period. The company also guided for Q4 2025 revenue of $131–$141 million, aligning with analyst forecasts but factoring in potential tariff impacts.

Revenue

, . Product revenue, however, declined 21.4% to $59.59 million, pressured by tariffs and promotional campaigns.

Earnings/Net Income

, . This marked Arlo’s first profit in eight years for the quarter. The non-GAAP EPS of $0.16 also beat estimates, underscoring the strength of its subscription model.

Post-Earnings Price Action Review

Arlo’s stock experienced mixed short-term performance, . However, shares edged up 0.30% month-to-date, reflecting cautious optimism around its subscription growth and product innovation. The post-earnings reaction suggests market skepticism about near-term margin pressures but confidence in long-term recurring revenue potential.

CEO Commentary

. He emphasized strategic investments in and product innovation as catalysts for 2026 growth.

Guidance

. The company anticipates navigating tariff-related cost challenges while leveraging its Arlo Secure 6 AI platform to sustain subscription momentum.

Additional News

Arlo’s recent product launch, including its Arlo Secure 6 AI platform, . The company also secured a partnership to provide backend services and custom camera development for Verisure in Latin America, expanding its international footprint. Additionally, Arlo’s focus on high-margin subscriptions has attracted analysts’ attention, .

Arlo Technologies’ strategic shift toward recurring revenue and AI innovation positions it to capitalize on the growing smart home security market. Despite near-term headwinds from tariffs and product gross margin declines, the company’s strong subscription growth and improved profitability signal resilience in a competitive sector. Investors will closely watch Q4 execution and the sustainability of its margin expansion amid macroeconomic uncertainties.