Q2 2025 Arlo Technologies Inc Earnings Call Transcript

Aug 7, 2025 / 09:00 PM GMT

Release Date Price: €13.6 (-0.07%)

Transcript 10-Q8-K

Key Points

Positve

Arlo Technologies Inc (ARLO) reported total revenue of $129 million, up year over year and sequentially.
Service revenue reached $78 million, marking a 30% increase year over year and now constitutes more than 60% of total revenue.
Non-GAAP service gross margin increased to a record 85%, showcasing strong profitability in the services segment.
The company added 218,000 paid subscriptions, reaching a total of 5.1 million, indicating strong subscriber growth.
Arlo Technologies Inc (ARLO) signed a strategic partnership with ADT, expected to provide material upside to subscriptions and services revenue starting in 2026.

Negative

Product revenue for the period was $51.2 million, down compared to the prior year due to a decline in average selling prices (ASPs).
The revenue contribution from international operations declined, with international customers generating approximately $50 million, down from $64 million in the prior year period.
Product margins declined due to industry-wide ASP declines and the impact of tariffs.
The introduction of tariffs in the quarter represented a gross margin headwind of approximately 100 basis points.
Operating expenses increased by 6.6% year over year, driven by higher credit card fees and increased R&D expenses.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ARLO.N - Arlo Technologies Inc
Q2 2025 Arlo Technologies Inc Earnings Call
Aug 07, 2025 / 09:00PM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, thank you for standing by. At this time, all participants are in a listen-only mode. Later we will conduct a question and answer session.

At that time, if you have a question, you will need to press the star one on your push button phone.

I would now like to turn the conference over to Tom and Clark. Please go ahead, sir.

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Unidentified_2 [2]
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Thank you, operator. Good afternoon and welcome to Arlo Technologies 2nd quarter 2025 financial results conference call.

Joining us from the company are Mr.

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