Arlo Reports Second Quarter 2026 Results

About this update from Arlo Technologies, Inc.

Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home security platform company, today reported financial results for the second quarter ended June 28, 2026. “We delivered outstanding financial results in the period with record total revenue of $156 million, up 21% year over year and record adjusted EBITDA of $31 million with EBITDA margin of 20%. Continued strength in subscriptions and services revenue drove the top and bottom-line growth, resulting in record levels of both consolidated non-GAAP gross margin and non-GAAP net income. As a result, we are increasing our annual guidance on both total revenue and EPS for the year,” said Matthew McRae, Chief Executive Officer of Arlo Technologies. “Our operational execution is best-in-class, and the Arlo brand gained further recognition on Newsweek’s list of the Most Trustworthy Companies in America. We are proud that our exceptional user experience and trusted lifelong customer relationships are catalysts for our strategic partners to make Arlo their trusted technology brand of choice for safety and security solutions.” Financial Summary Record subscriptions and services revenue of $93.0 million, growing 19.0% year over year, accounting for 59.7% of total revenues. Ended with annual recurring revenue (ARR) (2) of $365.0 million, growing 15.6% year over year. GAAP subscriptions and services gross margin of 81.1% and non-GAAP subscriptions and services gross margin of 84.1%. GAAP gross margin of 48.2% and record non-GAAP gross margin of 50.6%; growing 330 and 480 basis points year over year, respectively. Record adjusted EBITDA of $30.6 million, up 70.3% year over year with adjusted EBITDA margin of 19.6%. GAAP EPS of $0.03 and non-GAAP EPS of $0.28, including the tariff refund impact of $0.07. Cumulative paid accounts increased to 6.3 million, growing 23.2% year over year. Free cash flow (FCF) (3) of $33.9 million with FCF margin of 11.1% in the first half of 2026. Cash and cash equivalents and short-term investments of $141.1 million, including the cash outflows for the acquisition of Aloe Care Health and stock repurchases. Business Highlights Repurchased $22 million of common stock during the second quarter, as part of the authorized stock repurchase program of $50 million. Recognized by Newsweek as one of the Most Trustworthy Companies in America for 2026 in the Appliances and Electronics Category. Announced expanded partnership between Aloe Care Health and Home Helpers Home Care to deploy a new AI-powered wellness service.   Three Months Ended   Six Months Ended   June 28, 2026   March 29, 2026   June 29, 2025   June 28, 2026   June 29, 2025   (In thousands, except percentage and per share data) Revenue $ 155,937     $ 150,382     $ 129,405     $ 306,319     $ 248,471   GAAP gross margin   48.2 %     48.3 %     44.9 %     48.3 %     44.6 % Non-GAAP gross margin (1)   50.6 %     50.1 %     45.8 %     50.3 %     45.7 % GAAP EPS - diluted $ 0.03     $ 0.13     $ 0.03     $ 0.16     $ 0.02   Non-GAAP EPS - diluted (1) $ 0.28     $ 0.28     $ 0.17     $ 0.56     $ 0.33   _________________________ (1) Reconciliation of financial measures computed on a GAAP basis to the most directly comparable financial measures computed on a non-GAAP basis is provided at the end of this press release.   (2) ARR represents and is defined as the annualized paid subscriptions and services revenue we expect to recognize from subscription contracts, as calculated by taking the average paid subscriptions and services revenue per paid account of the reporting period multiplied by the number of paid accounts at the end of the reporting period.   (3) FCF is calculated as net cash provided by operating activities less capital expenditures. FCF margin is the FCF divided by revenue. The third quarter and full year 2026 Outlook (4) (5) A reconciliation of our outlook on a GAAP and non-GAAP basis is provided for the three months ended September 27, 2026 and full year 2026 in the following table:   Third Quarter 2026   Full Year 2026   Revenue   EPS - diluted   Revenue   EPS - diluted   (In millions)       (In millions)     GAAP $140 - $150   $(0.06) - $0.00   $580 - $600   $0.11 - $0.21 Adjustments for stock-based compensation expense and others —   $0.23   —   $0.79 Non-GAAP $140 - $150   $0.17 - $0.23   $580 - $600   $0.90 - $1.00 _________________________ (4) The outlook does not include estimates for any currently unknown income and expense items which, by their nature, could arise late in a quarter, including: litigation reserves, net; impairment charges; discrete tax benefits or detriments relating to tax windfalls or shortfalls from equity awards; and any additional impacts relating to the implementation of U.S. tax reform. New material income and expense items such as these could have a significant effect on our guidance and future results.   (5) The current global tariff environment is uncertain. Our products are manufactured outside the U.S., and consequently tariffs increase our product costs, which could impact our sales and reduce our product margin. The non-GAAP EPS outlook range above includes an expected tariff refund, all of which we expect will be reinvested in growth initiatives to support our subscriptions and services business. Investor Conference Call / Webcast Details Arlo will review the second quarter 2026 results and discuss management’s expectations for the third quarter and full year 2026 today, Thursday, August 6, 2026 at 5:00 p.m. ET (2:00 p.m. PT). To view the accompanying presentation, a live webcast of the conference call will be available on Arlo’s Investor Relations website at https://investor.arlo.com . The toll-free dial-in number for the live audio call is (833) 461-5787. The international dial-in number for the live audio call is (585) 542-9983. The conference ID for the call is 430549116. A replay of the call will be available via the web at https://investor.arlo.com . About Arlo Technologies, Inc. Arlo is an award-winning, industry leader that is transforming the ways in which people can protect everything that matters to them with advanced home, business, and personal security solutions. Arlo’s deep expertise in AI- and CV-powered analytics, cloud services, user experience and product design, and innovative wireless and RF connectivity enables the delivery of a seamless, smart security experience for Arlo users that is easy to set up and interact with every day. Arlo’s cloud-based platform provides users with visibility, insight and a powerful means to help protect and connect in real-time with the people and things that matter most, from any location with a Wi-Fi or a cellular connection. Arlo has recently launched several categories of award-winning connected devices, software and services. These include wire-free, smart Wi-Fi and LTE-enabled security cameras, video doorbells, floodlights, security system, and Arlo’s subscription service, Arlo Secure. With a mission to bring users peace of mind, Arlo is as passionate about protecting user privacy as it is about safeguarding homes and families. Arlo is committed to implementing industry standards for data protection designed to keep users’ personal information private and in their control. Arlo provides enhanced controls for user data, supports privacy legislation, keeps user data safely secure, and puts security at the forefront of company culture. © 2026 Arlo Technologies, Inc., Arlo and the Arlo logo are trademarks and/or registered trademarks of Arlo Technologies, Inc. and/or certain of its affiliates in the United States and/or other countries. Other brand and product names are for identification purposes only and may be trademarks or registered trademarks of their respective holder(s). The information contained herein is subject to change without notice. Arlo shall not be liable for technical or editorial errors or omissions contained herein. All rights reserved. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 for Arlo Technologies, Inc.: This press release 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 used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. The forward-looking statements represent our expectations or beliefs concerning future events based on information available at the time such statements were made and include statements regarding our potential future business, operating performance and financial condition, including descriptions of our expected revenue and profitability, GAAP and non-GAAP gross margins, adjusted EBITDA and adjusted EBITDA margins, tax rates, expenses, cash outlook, free cash flow and free cash flow margins; expectations regarding our increased annual guidance on total revenue and earnings per share for 2026; expectations regarding our brand recognition continuing to gain traction; expectations regarding our strategic objectives and initiatives; expectations regarding the realization of returns on our strategic investments and partnerships; and others. These statements are based on management’s current expectations and are subject to certain risks and uncertainties, including the following: future demand for our products may be lower than anticipated, including due to inflation, fluctuating consumer confidence, banking failures and high interest rates; we may be unsuccessful in developing and expanding our sales and marketing capabilities; we may not be able to increase sales of our paid subscription services; consumers may choose not to adopt our new product offerings or adopt competing products; product performance may be adversely affected by real world operating conditions; we may be unsuccessful or experience delays in manufacturing and distributing our new and existing products; we may fail to manage costs and cost saving initiatives, the cost of developing new products and manufacturing and distribution of our existing offerings; we may fail to successfully integrate acquired businesses, technologies or personnel, or to realize the anticipated benefits, synergies or cost savings from our recent acquisitions; we may experience difficulties retaining key employees of acquired companies; the costs and management attention associated with the integration of acquired businesses may be greater than anticipated; and we may not realize the expected returns on our future strategic investments, if any. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Under the current U.S. administration, tariffs, and retaliatory tariffs imposed by other nations, have created a dynamic and unpredictable trade landscape, which is adversely impacting, and may continue to adversely impact, our business. Current or future tariffs impacting our products, which are manufactured outside of the United States, have raised and may further raise our product costs. In addition, other trade restrictions could negatively impact our ability to obtain finished products from our ex-U.S. manufacturers and suppliers and, therefore, delay or impede our product deliveries. Tariff-related cost pressures and supply chain disruptions may lead to reputational harm if we are unable to deliver products or services on expected timelines or if any price increases are poorly received by customers or business partners. Furthermore, ongoing uncertainty regarding trade disputes and other political tensions between the United States and other countries, including in Asia, may also exacerbate unfavorable macroeconomic conditions, which may negatively impact international customer demand for our products or services and may lead to increased preference for local competitors. While we continue to monitor these developments, the full impact of these risks remains uncertain, and any prolonged economic downturn, escalation in trade tensions or deterioration in international perception of U.S.-based companies could materially and adversely affect our business, results of operations and financial condition. Further information on potential risk factors that could affect our business are detailed in our periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled “Risk Factors” in the most recently filed Annual Report and Quarterly Report filed with the Securities and Exchange Commission (the “SEC”) and subsequent filings with the SEC. Given these circumstances, you should not place undue reliance on these forward-looking statements. We undertake no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Non-GAAP Financial Measures: To supplement our unaudited financial data prepared on a basis consistent with U.S. Generally Accepted Accounting Principles (“GAAP”), we disclose certain non-GAAP financial measures that exclude certain charges, including non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income and non-GAAP earnings per diluted share. These supplemental measures exclude adjustments for stock-based compensation expense, amortization of intangible assets, acquisition-related expense, gain on sale of long-term investment, amortization of software development cost, depreciation expenses, and the related tax effects. In addition, we use free cash flow as a non-GAAP measure when assessing the sources of liquidity, capital resources, and quality of earnings. We believe that free cash flow is helpful in understanding our capital requirements and provides an additional means to reflect the cash flow trends in our business. These non-GAAP measures are not in accordance with, or an alternative for GAAP, and may be different from similarly-titled non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance. In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our operating performance on a period-to-period basis because such items are not, in our view, related to our ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, and for benchmarking performance externally against competitors. In addition, management’s incentive compensation is determined using certain non-GAAP measures. Since we find these measures to be useful, we believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with our GAAP measures, provide useful information to investors by offering: the ability to make more meaningful period-to-period comparisons of our on-going operating results; the ability to better identify trends in our underlying business and perform related trend analyses; a better understanding of how management plans and measures our underlying business; and an easier way to compare our operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures. The following are explanations of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding them in the reconciliations of these non-GAAP financial measures: Stock-based compensation expense consists of non-cash charges for the estimated fair value of restricted stock units , performance-based restricted stock units, and shares under the employee stock purchase plan granted to employees, and the payroll taxes associated with stock-based compensation. We believe that the exclusion of these charges provides for more accurate comparisons of our operating results to peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, we believe it is useful to investors to understand the specific impact stock-based compensation expense has on our operating results. Other non-GAAP items are the result of either unique or unplanned events, including, when applicable: amortization of intangible assets, acquisition-related expense, gain on sale of long-term investment, amortization of software development cost, depreciation expenses, and the related tax effects. It is difficult to predict the occurrence or estimate the amount or timing of these items in advance. Although these events are reflected in our GAAP financial statements, these unique transactions may limit the comparability of our on-going operations with prior and future periods. The amounts result from events that often arise from unforeseen circumstances, which often occur outside of the ordinary course of continuing operations. Therefore, the amounts do not accurately reflect the underlying performance of our continuing business operations for the period in which they are incurred. Source: Arlo-F ARLO TECHNOLOGIES, INC.   UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data)   As of   June 28, 2026   December 31, 2025 ASSETS       Current assets:       Cash and cash equivalents $ 101,382     $ 146,440   Short-term investments   39,749       19,985   Accounts receivable, net   63,607       39,666   Inventories   48,415       41,185   Restricted cash   1,920       —   Prepaid expenses and other current assets   17,577       13,210   Total current assets   272,650       260,486   Property and equipment, net   15,976       13,158   Operating lease right-of-use assets, net   8,180       9,195   Goodwill   47,936       11,038   Intangible assets, net   25,713       —   Long-term investment   —       12,500   Other non-current assets   4,127       4,171   Total assets $ 374,582     $ 310,548           LIABILITIES AND STOCKHOLDERS' EQUITY       Current liabilities:       Accounts payable $ 50,832     $ 42,826   Deferred revenue   50,842       37,139   Accrued liabilities   92,782       92,372   Total current liabilities   194,456       172,337   Non-current operating lease liabilities   5,716       6,743   Other non-current liabilities   15,885       3,627   Total liabilities   216,057       182,707   Commitments and contingencies       Stockholders’ Equity:       Preferred stock: $0.001 par value; 50,000,000 shares authorized; none issued or outstanding   —       —   Common stock: $0.001 par value; 500,000,000 shares authorized; shares issued and outstanding: 107,560,075 at June 28, 2026 and 105,030,947 at December 31, 2025   107       105   Additional paid-in capital   523,552       510,759   Accumulated other comprehensive income   —       16   Accumulated deficit   (365,134 )     (383,039 ) Total stockholders’ equity   158,525       127,841   Total liabilities and stockholders’ equity $ 374,582     $ 310,548     ARLO TECHNOLOGIES, INC.   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except percentage and per share data)   Three Months Ended   Six Months Ended   June 28, 2026   March 29, 2026   June 29, 2025   June 28, 2026   June 29, 2025 Revenue:                   Subscriptions and services $ 93,047     $ 90,099     $ 78,175     $ 183,146     $ 147,024   Products   62,890       60,283       51,230       123,173       101,447   Total revenue   155,937       150,382       129,405       306,319       248,471   Cost of revenue:                   Subscriptions and services   17,582       14,682       12,235       32,264       24,500   Products   63,139       63,032       59,095       126,171       113,169   Total cost of revenue   80,721       77,714       71,330       158,435       137,669   Gross profit   75,216       72,668       58,075       147,884       110,802   Gross margin   48.2 %     48.3 %     44.9 %     48.3 %     44.6 % Operating expenses:                   Research and development   23,658       22,814       18,489       46,472       34,654   Sales and marketing   24,085       22,654       21,103       46,739       41,306   General and administrative   23,128       18,207       16,334       41,335       34,119   Other operating expense   1,889       1,435       216       3,324       241   Total operating expenses   72,760       65,110       56,142       137,870       110,320   Income from operations   2,456       7,558       1,933       10,014       482   Operating margin   1.6 %     5.0 %     1.5 %     3.3 %     0.2 % Other income, net:                   Gain on sale of long-term investment   —       6,423       —       6,423       —   Interest income, net   979       1,241       1,344       2,220       2,660   Other income (expense), net   25       70       (407 )     95       (605 ) Total other income, net   1,004       7,734       937       8,738       2,055   Income before income taxes   3,460       15,292       2,870       18,752       2,537   Provision (benefit) for income taxes   432       415       (254 )     847       248   Net income $ 3,028     $ 14,877     $ 3,124     $ 17,905     $ 2,289                       Earnings per share:                   Basic $ 0.03     $ 0.14     $ 0.03     $ 0.17     $ 0.02   Diluted $ 0.03     $ 0.13     $ 0.03     $ 0.16     $ 0.02   Weighted-average common shares outstanding:                   Basic   108,123       106,995       103,885       107,569       103,060   Diluted   110,819       110,488       108,061       111,094       107,692     ARLO TECHNOLOGIES, INC.   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)   Six Months Ended   June 28, 2026   June 29, 2025 Cash flows from operating activities:       Net income $ 17,905     $ 2,289   Adjustments to reconcile net income to net cash provided by operating activities:       Stock-based compensation expense, net of amounts capitalized   41,444       31,995   Depreciation and amortization   4,625       1,687   Gain on sale of long-term investment   (6,423 )     —   Allowance for credit losses and non-cash changes to reserves   1,351       —   Deferred income taxes   161       (107 ) Discount accretion on investments and other   (249 )     (1,390 ) Changes in assets and liabilities, net of effect of acquisitions:       Accounts receivable, net   (23,943 )     (4,188 ) Inventories   (4,119 )     9,826   Prepaid expenses and other assets   (4,356 )     (2,758 ) Accounts payable   6,063       (13,888 ) Deferred revenue   13,155       14,956   Accrued and other liabilities   (6,342 )     1,327   Net cash provided by operating activities   39,272       39,749   Cash flows from investing activities:       Purchases of property and equipment, including capitalized software   (5,326 )     (5,778 ) Purchases of short-term investments   (44,520 )     (83,390 ) Purchase of long-term investment   —       (12,500 ) Acquisitions of businesses, net of cash acquired   (48,155 )     —   Proceeds from maturities of short-term investments   24,989       65,000   Proceeds from sale of long-term investment   18,923       —   Net cash used in investing activities   (54,089 )     (36,668 ) Cash flows from financing activities:       Proceeds from employee stock plans   1,955       2,280   Repurchases of common stock   (30,276 )     (16,149 ) Net cash used in financing activities   (28,321 )     (13,869 ) Net decrease in cash and cash equivalents   (43,138 )     (10,788 ) Cash, cash equivalents, and restricted cash, at beginning of period   146,440       82,032   Cash, cash equivalents, and restricted cash, at end of period $ 103,302     $ 71,244   Reconciliation of cash, cash equivalents, and restricted cash to Consolidated Balance Sheets       Cash and cash equivalents $ 101,382     $ 71,244   Restricted cash   1,920       —   Total cash, cash equivalents, and restricted cash $ 103,302     $ 71,244   Non-cash investing and financing activities:       Purchases of property and equipment included in accounts payable and accrued liabilities $ 382     $ 566   Stock-based compensation expense capitalized for software development $ 778     $ 868     ARLO TECHNOLOGIES, INC.   RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (UNAUDITED) (In thousands, except percentage data)   Three Months Ended   Six Months Ended   June 28, 2026   March 29, 2026   June 29, 2025   June 28, 2026   June 29, 2025 GAAP gross profit:                   Subscriptions and services $ 75,465     $ 75,417     $ 65,940     $ 150,882     $ 122,524   Products   (249 )     (2,749 )     (7,865 )     (2,998 )     (11,722 ) Total GAAP gross profit   75,216       72,668       58,075       147,884       110,802   GAAP gross margin:                   Subscriptions and services   81.1 %     83.7 %     84.3 %     82.4 %     83.3 % Products   (0.4 )%     (4.6 )%     (15.4 )%     (2.4 )%     (11.6 )% Total GAAP gross margin   48.2 %     48.3 %     44.9 %     48.3 %     44.6 % Stock-based compensation - Subscriptions and services cost   262       300       99       562       460   Stock-based compensation - Products cost   874       1,074       786       1,948       1,542   Amortization of software development cost   1,275       1,256       341       2,531       613   Amortization of intangible assets   1,217       —       —       1,217       —   Non-GAAP gross profit:                   Subscriptions and services   78,219       76,973       66,380       153,975       123,597   Products   625       (1,675 )     (7,079 )     167       (10,180 ) Total Non-GAAP gross profit $ 78,844     $ 75,298     $ 59,301     $ 154,142     $ 113,417   Non-GAAP gross margin:                   Subscriptions and services   84.1 %     85.4 %     84.9 %     84.1 %     84.1 % Products   1.0 %     (2.8 )%     (13.8 )%     0.1 %     (10.0 )% Total Non-GAAP gross margin   50.6 %     50.1 %     45.8 %     50.3 %     45.7 %                     GAAP net income $ 3,028     $ 14,877     $ 3,124     $ 17,905     $ 2,289   Stock-based compensation expense   21,710       19,734       14,983       41,444       31,995   Depreciation and amortization   2,928       1,697       858       4,625       1,687   Acquisition-related expense   1,667       1,329       —       2,996       —   Other operating expense   1,871       106       216       1,977       241   Gain on sale of long-term investment   —       (6,423 )     —       (6,423 )     —   Interest income, net   (979 )     (1,241 )     (1,344 )     (2,220 )     (2,660 ) Other (income) expense, net   (25 )     (70 )     407       (95 )     605   Provision (benefit) for income taxes   432       415       (254 )     847       248   Adjusted EBITDA $ 30,632     $ 30,424     $ 17,990     $ 61,056     $ 34,405   Adjusted EBITDA margin   19.6 %     20.2 %     13.9 %     19.9 %     13.8 %   ARLO TECHNOLOGIES, INC.   RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (UNAUDITED) (CONTINUED) (In thousands, except percentage and per share data)   Three Months Ended   Six Months Ended   June 28, 2026   March 29, 2026   June 29, 2025   June 28, 2026   June 29, 2025 GAAP net income $ 3,028     $ 14,877     $ 3,124     $ 17,905     $ 2,289   Stock-based compensation expense   21,710       19,734       14,983       41,444       31,995   Gain on sale of long-term investment   —       (6,423 )     —       (6,423 )     —   Others   6,360       2,776       708       9,136       1,005   Non-GAAP net income $ 31,098     $ 30,964     $ 18,815     $ 62,062     $ 35,289                       GAAP EPS - diluted $ 0.03     $ 0.13     $ 0.03     $ 0.16     $ 0.02   Stock-based compensation expense   0.20       0.18       0.14       0.38       0.30   Gain on sale of long-term investment   —       (0.06 )     —       (0.06 )     —   Others   0.05       0.03       —       0.08       0.01   Non-GAAP EPS - diluted $ 0.28     $ 0.28     $ 0.17     $ 0.56     $ 0.33                       Weighted-average common shares outstanding:                   Basic   108,123       106,995       103,885       107,569       103,060   Diluted   110,819       110,488       108,061       111,094       107,692                       Free cash flow:                   Net cash provided by operating activities $ 11,408     $ 27,863     $ 8,830     $ 39,272     $ 39,749   Less: purchases of property and equipment, including capitalized software   (2,907 )     (2,419 )     (2,975 )     (5,326 )     (5,778 ) Free cash flow (1) $ 8,501     $ 25,444     $ 5,855     $ 33,946     $ 33,971   Free cash flow margin (1)   5.5 %     16.9 %     4.5 %     11.1 %     13.7 % _________________________ (1) Free cash flow is calculated as net cash provided by operating activities less capital expenditures. Free cash flow margin is the free cash flow divided by revenue.   ARLO TECHNOLOGIES, INC.   SUPPLEMENTAL FINANCIAL INFORMATION (UNAUDITED) (In thousands, except inventory turns, weeks of channel inventory, headcount, and per share data)   As of and for the three months ended   June 28, 2026   March 29, 2026   December 31, 2025   September 28, 2025   June 29, 2025 Cash, cash equivalents and short-term investments $ 141,131   $ 167,498   $ 166,425   $ 165,544   $ 160,401                     Accounts receivable, net $ 63,607   $ 52,174   $ 39,666   $ 76,698   $ 61,450 Days sales outstanding   37     31     26     50     43                     Inventories $ 48,415   $ 43,958   $ 41,185   $ 44,371   $ 30,877 Inventory turns   5.2     5.7     5.9     6.4     7.7                     Weeks of channel inventory:                   U.S. retail channel   9.6     13.2     10.1     12.5     12.5 U.S. distribution channel   5.9     9.5     3.0     5.5     11.0 APAC distribution channel   5.5     8.6     5.2     3.7     8.2                     Deferred revenue (current and non-current) $ 51,799   $ 53,426   $ 38,615   $ 40,515   $ 42,544                     Cumulative registered accounts (1)   13,569     13,052     12,141     11,792     11,237 Cumulative paid accounts (2)   6,303     6,005     5,687     5,396     5,115 Annual recurring revenue (ARR) (3) $ 364,959   $ 356,921   $ 330,489   $ 323,150   $ 315,655                     Headcount   384     369     376     374     382 Diluted shares   110,819     110,488     110,353     109,638     108,061 _________________________ (1) Registered accounts at the end of a particular period are defined as the number of unique registered accounts on our platforms. The number of registered accounts does not directly correspond to the number of users. A single account may be shared by multiple users (which we consider as one account) and a single user may have multiple accounts (which we consider as multiple accounts).   (2) Paid accounts at the end of a particular period are defined as any account worldwide where a subscription-based or otherwise recurring service fee was collected by Arlo (either directly from a user or from a partner).   (3) ARR represents and is defined as the annualized paid subscriptions and services revenue we expect to recognize from subscription contracts, as calculated by taking the average paid subscriptions and services revenue per paid account of the reporting period multiplied by the number of paid accounts at the end of the reporting period.   REVENUE BY GEOGRAPHY (In thousands, except percentage data)     Three Months Ended   Six Months Ended   June 28, 2026   March 29, 2026   June 29, 2025   June 28, 2026   June 29, 2025 Americas $ 88,969 57.1 %   $ 83,986 55.9 %   $ 81,902 63.3 %   $ 172,955 56.5 %   $ 151,999 61.2 % EMEA   61,479 39.4 %     60,665 40.3 %     43,320 33.5 %     122,144 39.9 %     86,215 34.7 % APAC   5,489 3.5 %     5,731 3.8 %     4,183 3.2 %     11,220 3.6 %     10,257 4.1 % Total $ 155,937 100.0 %   $ 150,382 100.0 %   $ 129,405 100.0 %   $ 306,319 100.0 %   $ 248,471 100.0 %   View source version on businesswire.com: https://www.businesswire.com/news/home/20260806186794/en/

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