Full year GAAP gross margin of 44%, growing 730 basis points and non-GAAP gross margin(2) of 45%, growing 750 basis points (Form 8-K)

Full year GAAP gross margin of 44%, growing 730 basis points and non-GAAP gross margin(2) of 45%, growing 750 basis points

Full year adjusted EBITDA(2) of $75 million; adjusted EBITDA margin of 14%

Carlsbad, California - February 26, 2026 - Arlo Technologies, Inc. (NYSE: ARLO), a leading smart home security platform company, today reported financial results for the fourth quarter and full year ended December 31, 2025.

"Arlo's subscription services strategy delivered blockbuster results in 2025 generating record levels of subscription revenue and profitability with nearly 30% growth in ARR and subscriptions and services revenue, as well as a 750-basis point improvement in non-GAAP consolidated gross margin for the full year. That success translated into tremendous Adjusted EBITDA growth of over 85% and an Adjusted EBITDA margin of 14% for the full year," said Matthew McRae, Chief Executive Officer of Arlo Technologies. "And we are excited to announce a partnership with Comcast to provide connected home security solutions to millions of its Xfinity Internet households in the United States. As you can see from the caliber of our strategic relationships, Arlo is the preferred partner in the smart security space and these deals will accelerate our momentum towards achieving our long-range targets."

Q4 2025 Financial Summary

•Ended with ARR(1) of $330.5 million, growing 28.4% year over year.

•Record subscriptions and services revenue of $89.4 million, an increase of 39.4% year over year, accounting for 63.3% of total revenues.

•GAAP subscriptions and services gross margin of 82.8% and non-GAAP subscriptions and services gross margin of 84.0%; up 160 and 230 basis points year over year, respectively.

•Record GAAP gross margin of 46.4% and record non-GAAP gross margin of 47.8%; up 950 and 1030 basis points year over year, respectively.

•Adjusted EBITDA(2) of $23.3 million, up 138.2% year over year with adjusted EBITDA margin of 16.5%.

•GAAP EPS of $0.05 and record non-GAAP EPS of $0.22.

•Cumulative paid accounts increased to 5.7 million, growing 23.7% year over year.

•Cash and cash equivalents and short-term investments of $166.4 million, up $15.0 million year over year.

Full Year 2025 Financial Summary

•Subscriptions and services revenue of $316.4 million, an increase of 30.2% year over year, accounting for 59.8% of total revenue.

•GAAP subscriptions and services gross margin of 83.5% and non-GAAP subscriptions and services gross margin of 84.3%; up 600 and 620 basis points year over year, respectively.

•GAAP gross margin of 44.0% and non-GAAP gross margin of 45.1%; up 730 and 750 basis points year over year, respectively.

•Adjusted EBITDA(2) of $74.7 million, up 85.4% year over year with adjusted EBITDA margin of 14.1%.

•GAAP EPS of $0.14 and non-GAAP EPS of $0.70.

•Free cash flow (FCF)(3) of $66.9 million with FCF margin of 12.6%.

Page 1

			Three Months Ended																		Twelve Months Ended
			December 31, 2025						September 28, 2025						December 31, 2024						December 31, 2025						December 31, 2024
			(In thousands, except percentage and per share data)
Revenue			$	141,297					$	139,529					$	121,572					$	529,297					$	510,886
GAAP gross margin			46.4		%				40.5		%				36.9		%				44.0		%				36.7		%
Non-GAAP gross margin (2)			47.8		%				41.4		%				37.5		%				45.1		%				37.6		%
GAAP earnings (loss) per share - basic			$	0.05					$	0.07					$	(0.05)					$	0.14					$	(0.31)
Non-GAAP EPS - diluted (2)			$	0.22					$	0.16					$	0.10					$	0.70					$	0.40

_________________________

(1) 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.

(2) 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.

(3) FCF is calculated as net cash provided by operating activities less capital expenditures. FCF margin is the FCF divided by revenue.

Q1 2026 Outlook (4) (5)

A reconciliation of our outlook on a GAAP and non-GAAP basis is provided for the three months ended March 29, 2026 in the following table:

			Revenue						EPS - diluted
			(In millions, except per share data)
GAAP			$135 - $145						$0.01 - $0.07
Adjustments for stock-based compensation expense and others			-						$0.16
Non-GAAP			$135 - $145						$0.17 - $0.23

_________________________

(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 reduces our product margin. The outlook ranges include the impact of our current estimate on tariff costs.

Page 2

Investor Conference Call / Webcast Details

Arlo will review the fourth quarter and full-year 2025 results and discuss management's expectations for the first quarter and full-year 2026 today, Thursday, February 26, 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) 470-1428. The international dial-in number for the live audio call is (646) 844-6383. The conference ID for the call is 913053. 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. To date, Arlo has 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 services: Arlo Secure and Arlo Safe.

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 does not monetize personal data, 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.

Contact:

Arlo Investor Relations

Tahmin Clarke

[email protected]

Page 3