Arlo Technologies, Inc. · NYSE:ARLO
Arlo Technologies — Q3 2025 Earnings Presentation
28 slides from Arlo Technologies's earnings presentation, Nov 6, 2025
Slide 1: Investor Presentation
Investor Presentation November 6, 2025 ©2025 – ALL RIGHTS RESERVED
Slide 2: Safe Harbor Disclosure
SAFE HARBOR DISCLOSURE This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words “anticipate,” “expect,” “believe,” “will,” “may,” “should,” “estimate,” “project,” “outlook,” “forecast” or other similar words are
Slide 3: Arlo protects your everything.
Arlo protects your everything. Arlo is a subscription software business in the smart security segment powered by a scaled, secure, and sophisticated platform with groundbreaking AI capabilities called Arlo Intelligence. We win on focus, innovation, and our privacy pledge. Arlo’s solutions have led t
Slide 4: Arlo At A Glance
Arlo At A Glance AI-powered SaaS business in the Smart Security Space Subscriptions and Annual Recurring Paid Services Gross Revenue (ARR) Accounts Margin $323M 85% 5.4M ARR Growth Rule of LTV/CAC Ratio YoY 40(1) 34% 3x 46% The most directly comparable GAAP financial measures are presented in the GA
Slide 5: Six years to reach $300M of ARR is best-in-class
Six years to reach $300M of ARR is 6 or less years best-in-class 7 – 10 years 11 – 15 years 16+ years (1) The peer group is comprised of the 58 SaaS companies traded on the NYSE and Nasdaq with enterprise values of at least $300M (2) For the peer group, revenue has been used as a proxy for ARR which
Slide 6: Large, Growing, & Underpenetrated Smart Home Security Market
Global Market Estimated @ 2-3x US Large, Growing, & Underpenetrated Smart Home Security Market Broader DIY Smart Home (Consumer, US) Arlo participates in the broader home security market that is $13.4B sized in the US at $25B in 2025 Adjacent Markets Estimated @ 3-4x TAM is further expanded by Europ
Slide 7: Arlo SaaS Platform
ARLO SaaS PLATFORM A sophisticated and performant SaaS platform built over the last 10 years with artificial intelligence at its core and providing world- class smart security experiences for our users and strategic Strategic Partners partners. Subscription Services 170+ billion AI alerts per year A
Slide 8: Arlo Intelligence
ARLO INTELLIGENCE Object Detection Determines if a person, animal, or vehicle is within the scene during a motion event to help filter and prioritize alerts for the end user. Package Detection Specific alerts when a package is detected and quick prompts to speak with delivery person or call a friend
Slide 9: Our services stand out among comparable consumer-based subscriptions
Paid Account Monthly Churn Rate(1) Our services standout among comparable 1.0% consumer-based 2.0% subscriptions. 4.0% Our paid account monthly churn is among 4.5% the best compared to consumer subscription peers. 6.0% 6.0% 7.5% Security ranks 1st in subscriptions least likely to be canceled. 8.7% I
Slide 10: What makes us different and why we'll win in the smart security market
What makes us Differentiators Why It Matters different and why Industry leading AI More valuable services that drive we’ll win in the subscriptions and ARPU smart security Every person, every day, dedicated market. Singular focus on security to our mission Industry-leading video Video is the key to
Slide 11: Q3 2025 Operating Results
Q3 2025 OPERATING RESULTS INVESTOR PRESENTATION: NOV 2025 11 ©2025. ALL RIGHTS RESERVED.
Slide 12: Outstanding SaaS Metrics in Q3 2025
Outstanding SaaS Metrics in Q3 2025 Rule of 40+ for two consecutive quarters with record subscription gross margins Cumulative paid accounts 5.4M Annual recurring revenue $323M | +34% y/y Subscriptions and Services 57% of total revenue mix Subscriptions and Services 85% (non-GAAP) gross margin Rule
Slide 13: Diving into retail & direct paid accounts shows the outstanding performance of our business
Diving into retail & direct paid accounts (1) shows the outstanding performance of our services Best-in-Class LTV to CAC(2) business $12.6 $750 Retail ARPU(3) Retail LTV(5) 92% $200 13 Retail Gross Margin(4) Retail CAC(6) Retail Accounts generate > 80% of ARR INVESTOR PRESENTATION: NOV 2025 (1) Reta
Slide 14: Paid Accounts & Annual Recurring Revenue (ARR)
Paid Accounts & Annual Recurring Revenue (ARR) 27% 34% $315.7 $323.2 Y/Y Growth Y/Y Growth 5,396 $276.4 5,115 4,897 $257.3 $241.6 4,599 $235.0 $227.0 4,235 $210.1 $200.0 3,980 3,235 2,813 2,486 Q3 ‘23 Q4‘23 Q1 ‘24 Q2’24 Q3 ‘24 Q4 ‘24 Q1 ‘25 Q2’25 Q3 ‘25 Q3 ‘23 Q4 ‘23 Q1 ‘24 Q2’24 Q3 ‘24 Q4 ‘24 Q1 ‘2
Slide 15: Subscriptions and Services Revenue & Gross Margin
Subscriptions and Services Revenue & Gross Margin +18% 57 % Change in Service % of $79.9 Total $78.2 85.1% Q3’23-Q3’25 84.9% $68.8 83.1% $64.1 81.7% $61.9 $60.3 $55.9 $56.7 77.4% 39% 76.7% 76.4% $51.0 74.1% 74.4% Q3 ‘23 Q4 ‘23 Q1 ‘24 Q2’24 Q3 ‘24 Q4 ‘24 Q1 ‘25 Q2’25 Q3 ‘25 Q3 ‘23 Q4 ‘23 Q1 ‘24 Q2’24
Slide 16: Adjusted EBITDA & Free Cash Flow
Adjusted EBITDA & Free Cash Flow 68% 14% Y/Y Growth $51.5 Y/Y Growth $49.0 +$20.9M +$5.9M $43.0 $30.6 YTD YTD YTD YTD Q3’24 Q3’25 Q3’24 Q3’25 A d justed EBITD A Free C ash Flo w (millions) (millions) INVESTOR PRESENTATION: NOV 2025 16 The most directly comparable GAAP financial measures are presente
Slide 17: Balance Sheet Metrics
Balance Sheet Metrics 50 $166 7.7 45 $160 43 6.4 5.8 $147 Q3 ‘24 Q2’25 Q3 ‘25 Q3 ‘24 Q2’25 Q3 ‘25 Q3 ‘24 Q2’25 Q3 ‘25 Cash & ST Investments DSO Inventory Turns (millions) (days) (times) INVESTOR PRESENTATION: NOV 2025 17 ©2025. ALL RIGHTS RESERVED.
Slide 18: Financial Outlook
Looking Ahead Financial Outlook INVESTOR PRESENTATION: NOV 2025 18 ©2025. ALL RIGHTS RESERVED.
Slide 19: Powerful SaaS Business Model
Powerful SaaS Business Model Acquire new subscriptions through highly efficient Convert new households and paid accounts 1 retail channels and strategic partnerships with compelling subscription services 2 • Optimize customer acquisition costs • High Conversion/Attach Rate • Expand global distributi
Slide 20: Q4 and Full Year 2025 Guidance
Q4 2025 Guide Total Revenue $131 - $141M Consolidated Earnings per Share $0.13 - $0.19 (non-GAAP) Full Year 2025 Guide Subscription and Subscriptions $310M+ Services Revenue Service Gross Margin >85% (non-GAAP) INVESTOR PRESENTATION: NOV 2025 20 ©2025. ALL RIGHTS RESERVED.
Slide 21: Rule of 40 and Service Revenue Multiple vs Listed Software Companies
SELECTED US LISTED SOFTWARE COMPANIES WITH C Y 2 0 2 5 E R U L E O F 4 0 O F 3 5 % - 4 5 % (1) Rule of 40 for CY 2025 Guidance Range (2) ~40% ARR Growth Estimate for CY 2025 (2) ~25% CY 2025 Service Revenue Multiple (3) 6.6x Revenue multiple for all companies Multiple for companies with >20% rev gro
Slide 22: Original and Current Long-Range Plan
Original Long-Range Plan Current Long-Range Plan MARCH 2022 TARGETS FOR ≤ 2027 TARGETS FOR ≤ 2030 5 Million 10 Million Paid Accounts Paid Accounts $300 Million $700 Million In ARR In ARR ≥10% >25% In Adjusted EBITDA Margin In Adjusted EBITDA Margin INVESTOR PRESENTATION: NOV 2025 22 ©2025. ALL RIGHT
Slide 23: Operational Momentum through 2025
Operational Momentum through 2025 Arlo has had a successful 2025 and strong outlook for 2026 with past investments coming to fruition and numerous opportunities to drive service revenue growth and shareholder value. 1 SaaS Platform Innovation Powerful AI features and platform enhancements 2 Comprehe
Slide 24: ©2025 – ALL RIGHTS RESERVED
©2025 – ALL RIGHTS RESERVED
Slide 25: Appendix: GAAP to non-GAAP Reconciliations
Appendix GAAP to non-GAAP Reconciliations ©2025. ALL RIGHTS RESERVED.
Slide 26: Reconciliations of GAAP Measures to Non-GAAP Measures: Gross Profit
Reconciliations of GAAP Measures to Non-GAAP Measures Gross Profit, in thousands, except percentage data Three Months Ended December 31, March 31, June 30, September 29, December 31, March 30, June 29, September 28, 2023 2024 2024 2024 2024 2025 2025 2025 Subscriptions and services $ 41,324 $ 43,111
Slide 27: Reconciliations of GAAP Measures to Non-GAAP Measures: Adjusted EBITDA
Reconciliations of GAAP Measures to Non-GAAP Measures Adjusted EBITDA, in thousands, except percentage data Three Months Ended December 31, March 31, June 30, September 29, December 31, March 30, June 29, September 28, 2023 2024 2024 2024 2024 2025 2025 2025 GAAP net income (loss) $ 692 $ (9,644) $
Slide 28: Reconciliations of GAAP Measures to Non-GAAP Measures: Free Cash Flow
Reconciliations of GAAP Measures to Non-GAAP Measures Free Cash Flow, in thousands, except percentage data Three Months Ended December 31, March 31, June 30, September 29, December 31, March 30, June 29, September 28, 2023 2024 2024 2024 2024 2025 2025 2025 Net cash provided by operating activities