What is the market's earnings forecast for Arlo Technologies next quarter?

What were the key takeaways from Arlo Technologies's earnings call?

What were the key takeaways from Arlo Technologies’s earnings call?

What is Arlo Technologies's gross profit margin?

What does Arlo Technologies do and what are its main business segments?

Did Arlo Technologies beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for Arlo Technologies year over year?

What factors drove the changes in Arlo Technologies's revenue and profit?

- **SaaS Dominance**: 5.4M paid accounts (27% YoY) drive $323M ARR (+34%), with service gross margin at 85%. 
- **Product Innovation**: 29% YoY unit growth from new platforms with 20%-35% BOM savings. 
- **Profit Leap**: Adjusted EBITDA $17.1M (+50% YoY), free cash flow $49M (9M period). 
- **Q4 Outlook**: Revenue $131-141M, targeting 20%-30% unit growth and strategic account expansion. 
- **Partnership Payoff**: Verisure, Allstate, and ADT partnerships set to accelerate 2026 growth.

**【CEO Summary Section】**
- **Record Q3 Performance**: Achieved 281,000 new paid accounts, driving total to 5.4 million, with ARPU over $15/month and ARR reaching $323 million (34% YoY growth). 
- **Product Launch Success**: Introduced 100+ SKUs with 20%-35% BOM cost reduction, achieving 29% YoY unit sales growth. 
- **AI-Driven Growth**: Arlo Secure 6 platform boosted LTV to $870, up 770bps in service gross margin to 85%. 
- **Q4 Outlook**: Anticipates 20%-30% unit growth, supported by strategic partnerships with Verisure, Allstate, and ADT. 

**【CFO Financial Commentary】**
- **Revenue Breakdown**: Total Q3 revenue $139.5M (57% from subscriptions/services). Subscriptions revenue $79.9M (+29% YoY). Product revenue $59.6M (-21% YoY). 
- **Profitability**: Adjusted EBITDA $17.1M (+50% YoY). Non-GAAP net income $18.1M. Free cash flow $49M (9M period). 
- **Margins**: Service gross margin 85% (up 770bps YoY). Product gross margin negative due to tariffs and EOL promotions. 
- **Q4 Guidance**: Revenue $131-141M, Non-GAAP EPS $0.13-0.19. 

**【Q&A Key Highlights】**
- **Inventory Management**: Q3 tariffs added $5M cost, but BOM reductions offset 20% of impact. Inventory cleared ahead of new product launch. 
- **Partnership Expansion**: Verisure's ADT Mexico acquisition opens Latin America growth. ADT testing units ahead of 2026 launch. 
- **Retail Strategy**: Walmart shelf share doubled to 9 SKUs, driving mass-market penetration. Amazon gaining weekly share. 
- **Service Momentum**: Q3 service revenue up 34%, with Q4 poised for further growth from new household formations.

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