$ARLO

Arlo Technologies, Inc.

CIK:0001736946|SEC Filings

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2026	Jun. 29, 2025	Jun. 28, 2026	Jun. 29, 2025
Total revenue	$ 155,937	$ 129,405	$ 306,319	$ 248,471
Total cost of revenue	80,721	71,330	158,435	137,669
Gross profit	75,216	58,075	147,884	110,802
Operating expenses:
Research and development	23,658	18,489	46,472	34,654
Sales and marketing	24,085	21,103	46,739	41,306
General and administrative	23,128	16,334	41,335	34,119
Other operating expense	1,889	216	3,324	241
Total operating expenses	72,760	56,142	137,870	110,320
Income from operations	2,456	1,933	10,014	482
Other income, net:
Gain on sale of long-term investment	0	0	6,423	0
Interest income, net	979	1,344	2,220	2,660
Other income (expense), net	25	(407)	95	(605)
Total other income, net	1,004	937	8,738	2,055
Income before income taxes	3,460	2,870	18,752	2,537
Provision (benefit) for income taxes	432	(254)	847	248
Net income	$ 3,028	$ 3,124	$ 17,905	$ 2,289
Earnings per share:
Basic (in dollars per share)	$ 0.03	$ 0.03	$ 0.17	$ 0.02
Diluted (in dollars per share)	$ 0.03	$ 0.03	$ 0.16	$ 0.02
Weighted-average common shares outstanding:
Basic (in shares)	108,123	103,885	107,569	103,060
Diluted (in shares)	110,819	108,061	111,094	107,692
Comprehensive income (loss):
Net income	$ 3,028	$ 3,124	$ 17,905	$ 2,289
Other comprehensive income (loss), net of tax	1	(13)	(16)	(42)
Total comprehensive income	3,029	3,111	17,889	2,247
Subscriptions and services
Total revenue	93,047	78,175	183,146	147,024
Total cost of revenue	17,582	12,235	32,264	24,500
Products
Total revenue	62,890	51,230	123,173	101,447
Total cost of revenue	$ 63,139	$ 59,095	$ 126,171	$ 113,169

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 28, 2026	Jun. 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)	0
Allowance for credit losses and non-cash changes to reserves	1,351	0
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	0	(12,500)
Acquisitions of businesses, net of cash acquired	(48,155)	0
Proceeds from maturities of short-term investments	24,989	65,000
Proceeds from sale of long-term investment	18,923	0
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	0
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

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 28, 2026	Dec. 31, 2025
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	0
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	0
Long-term investment	0	12,500
Other non-current assets	4,127	4,171
Total assets	374,582	310,548
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 (Note 8)
Stockholders’ Equity:
Preferred stock: $0.001 par value; 50,000,000 shares authorized; none issued or outstanding	0	0
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	0	16
Accumulated deficit	(365,134)	(383,039)
Total stockholders’ equity	158,525	127,841
Total liabilities and stockholders’ equity	$ 374,582	$ 310,548