Arlo beats Q1 estimates as subscriptions lift revenue, profit; shares fall 12%

Arlo Technologies (NYSE: ARLO) reported first-quarter 2026 revenue of $150.4 million, up 26.3% from a year earlier and above Wall Street expectations, as subscription growth drove stronger services revenue. Non-GAAP earnings were 28 cents a share, 45.5% above consensus. The smart security company said it added 318,000 paid accounts in the quarter and passed 6 million subscribers ahead of plan. Management cited higher average revenue per user, improved product profitability and record services gross margin as key profit drivers. Arlo guided June-quarter revenue to $150 million at the midpoint, 1.8% above analyst estimates. The company said future growth will depend on expanded partnerships with ADT and Samsung, new service offerings, the Aloe Care acquisition and product launches including Arlo Secure 7. Shares recently traded at $13.05, down 12.4% from $14.90 before the earnings report.