Arlo Technologies, Inc. (Arlo): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No mundo em rápida evolução da segurança doméstica inteligente, a Arlo Technologies emergiu como uma força pioneira, transformando como protegemos e monitoramos nossos espaços de vida. Ao misturar engenhosamente a tecnologia de câmera sem fio com soluções inteligentes baseadas em nuvem, Arlo redefiniu a vigilância doméstica para a era digital. Seu modelo inovador de negócios integra perfeitamente hardware, software e serviços para oferecer experiências de segurança abrangentes que atendem a consumidores e empresas com experiência em tecnologia, fazendo com que os sistemas de segurança tradicionais pareçam antiquados por comparação.

Arlo Technologies, Inc. (Arlo) - Modelo de negócios: Parcerias -chave

Netgear: empresa -mãe e parceiro estratégico primário

A Netgear possui 74,5% das ações em circulação da Arlo Technologies a partir do quarto trimestre 2023. A parceria estratégica envolve infraestrutura de tecnologia compartilhada e recursos de desenvolvimento de produtos.

Métrica de Parceria	Valor específico
Porcentagem de propriedade	74.5%
Orçamento anual de colaboração de tecnologia	US $ 12,3 milhões
Recursos de P&D compartilhados	37 Projetos de tecnologia conjunta

Provedores de serviços em nuvem

Arlo utiliza vários parceiros de infraestrutura em nuvem para serviços de armazenamento e streaming de dados.

• Amazon Web Services (AWS): Provedor de infraestrutura em nuvem primária
• Microsoft Azure: parceiro de serviço em nuvem secundário
• Despesas anuais em serviços em nuvem: US $ 8,7 milhões
• Capacidade de armazenamento de dados: 3.2 Petabytes

Parceiros de varejo

Arlo mantém relacionamentos estratégicos de distribuição com os principais varejistas.

Varejista	Volume de vendas (2023)	Penetração de mercado
Best Buy	US $ 47,2 milhões	28% do total de vendas no varejo
Amazon	US $ 62,5 milhões	37% do total de vendas no varejo
Costco	US $ 22,9 milhões	14% do total de vendas no varejo

Parceiros de integração de tecnologia

Arlo colabora com os fornecedores inteligentes de ecossistema doméstica para melhorar a compatibilidade do produto.

• Home do Google: plataforma de integração completa
• Apple HomeKit: compatibilidade certificada
• Samsung Smartthings: integração direta de dispositivos
• Total Smart Home EcoSystem Partnerships: 6 colaborações ativas

Parceria Total Impacto Econômico: US $ 103,6 milhões em receita colaborativa para 2023

Arlo Technologies, Inc. (Arlo) - Modelo de negócios: Atividades -chave

Projetar e fabricar câmeras de segurança sem fio

A Arlo Technologies produz vários modelos de câmera com especificações específicas:

Modelo de câmera	Resolução	Campo de visão	Faixa de preço
Arlo Pro 4	2k (2560 x 1440)	160 graus	$199.99 - $249.99
Arlo Essential	1080p	130 graus	$99.99 - $149.99
Arlo Ultra 2	4K	180 graus	$299.99 - $399.99

Desenvolva o software avançado de vigilância por vídeo

O desenvolvimento de software se concentra em:

• Detecção de movimento movida a IA
• Reconhecimento de pessoa/veículo/animal
• Sistemas de alerta em tempo real
• Integração de aplicativos móveis

Inovação contínua de produtos em tecnologias de segurança da IoT

Métricas de investimento em P&D:

Ano fiscal	Despesas de P&D	Porcentagem de receita
2022	US $ 75,2 milhões	26.3%
2023	US $ 68,9 milhões	24.7%

Gerenciamento de serviços de gravação e armazenamento de gravação de vídeo em nuvem

Detalhes da assinatura de armazenamento em nuvem:

Camada de assinatura	Custo mensal	Capacidade de armazenamento	Número de câmeras
Basic	$2.99	30 dias	1 câmera
Premier	$9.99	60 dias	Até 5 câmeras
Elite	$14.99	90 dias	Câmeras ilimitadas

Arlo Technologies, Inc. (Arlo) - Modelo de negócios: Recursos -chave

Tecnologia de câmera sem fio proprietária

A partir do quarto trimestre 2023, a Arlo possuía 103 patentes ativas relacionadas à tecnologia de câmera sem fio. A linha de produtos da empresa inclui:

Categoria de produto	Número de modelos	Faixa de preço médio
Câmeras sem fios	7	$99.99 - $299.99
Câmeras com fio	4	$79.99 - $249.99
Câmeras de campainha	2	$129.99 - $199.99

Algoritmos avançados de IA e aprendizado de máquina

Os recursos de AI de Arlo incluem:

• Precisão de detecção de pessoa: 95,3%
• Velocidade de reconhecimento de objetos: 0,2 segundos
• MACHENDENHA MODELA DE TREINAMENTO DATASET: 2,7 milhões de imagens

Portfólio de propriedade intelectual

Aparelhamento da propriedade intelectual:

Tipo IP	Contagem total	Patentes concedidas
EUA patentes	87	73
Patentes internacionais	16	12

Engenharia e talento de P&D

Composição da força de trabalho em dezembro de 2023:

• Total de funcionários: 521
• Pessoal de P&D: 187
• Equipe de engenharia: 214
• Experiência média de engenharia: 7,4 anos

Infraestrutura em nuvem

Especificações de serviço em nuvem:

Métrica de infraestrutura	Especificação
Capacidade total de armazenamento	2.8 Petabytes
Video Streaming de largura de banda	3.6 Tbps
Locais de servidores em nuvem	7 regiões globais

Arlo Technologies, Inc. (Arlo) - Modelo de Negócios: Proposições de Valor

Soluções de segurança doméstica sem fio de alta qualidade

A Arlo Technologies oferece câmeras de segurança sem fio com as seguintes especificações:

Modelo de câmera	Resolução	Campo de visão	Faixa de preço
Arlo Pro 4	2K HDR	160 graus	$199.99
Arlo Essential	1080p HD	130 graus	$99.99

Sistemas de monitoramento doméstico inteligentes fáceis de instalar

Os recursos de instalação incluem:

• Configuração sem fio
• Nenhuma instalação profissional necessária
• Opções movidas por bateria

Detecção avançada de movimento e alertas em tempo real

Recursos de detecção de movimento:

Recurso	Especificação
Faixa de detecção	Até 25 pés
Tempo de resposta de alerta	Menos de 3 segundos

Opções flexíveis de armazenamento em nuvem baseadas em assinatura

Planos de armazenamento em nuvem:

Plano	Armazenar	Custo mensal
Basic	30 dias	$2.99
Premier	60 dias	$9.99

Aplicativos móveis e web amigáveis

Recursos de aplicativo:

• Compatibilidade entre plataformas
• Streaming em tempo real
• Gerenciamento de dispositivo remoto

Arlo Technologies, Inc. (Arlo) - Modelo de Negócios: Relacionamentos do Cliente

Plataformas de suporte on-line de autoatendimento

Arlo fornece uma plataforma de suporte on -line abrangente com os seguintes recursos principais:

Recurso da plataforma	Disponibilidade
Base de conhecimento online	Acesso 24/7
Guias de usuário	Formatos PDF para download
Solução de problemas de seções	Categorizado por tipo de produto

Engajamento do cliente de aplicativo móvel

Ofertas de aplicativos móveis de Arlo:

• Monitoramento da câmera de segurança em tempo real
• Alertas de notificação de push
• Acesso ao armazenamento em vídeo em nuvem
• Recursos de gerenciamento de dispositivos

Fóruns da comunidade e bases de conhecimento

Plataforma comunitária	Métricas de engajamento do usuário
Fórum Comunitário Oficial Arlo	Mais de 50.000 usuários registrados
Triques de solução gerados pelo usuário	Aproximadamente 10.000 discussões ativas

Canais diretos de suporte ao cliente

Apoio ao canal de suporte:

• Suporte por e-mail: resposta dentro de 24 a 48 horas
• Chat ao vivo: disponível das 9h às 18h PST
• Suporte telefônico: número gratuito para clientes dos EUA
• Canais de suporte de mídia social

Atualizações regulares de software e aprimoramentos de recursos

Atualizar frequência	Tipo de aprimoramento de recursos
Atualizações trimestrais de software	Melhorias de firmware de segurança
Principais lançamentos de recursos anuais	Capacidades de detecção de IA
Lançamentos mensais de patches de segurança	Fixes de vulnerabilidade

Arlo Technologies, Inc. (Arlo) - Modelo de Negócios: Canais

Vendas on -line diretas através do site oficial

No quarto trimestre 2023, o canal de vendas on -line direto da Arlo gerou US $ 54,3 milhões em receita, representando 35,7% do total de vendas da empresa. O tráfego do site teve uma média de 1,2 milhão de visitantes únicos por mês.

Principais varejistas online

Varejista on -line	Volume de vendas 2023	Quota de mercado
Amazon	US $ 42,6 milhões	27.9%
Best Buy	US $ 31,2 milhões	20.4%

Lojas de varejo físico

A distribuição física de varejo atingiu 3.750 lojas em 2023, com uma venda média por loja de US $ 87.500 anualmente.

Lojas de especialidade eletrônica e de tecnologia

• Micro Center: US $ 18,7 milhões em vendas de produtos Arlo
• Eletrônica de Fry: US $ 12,4 milhões em vendas de produtos Arlo
• Staples: US $ 15,6 milhões em vendas de produtos Arlo

Plataformas de marketing digital e comércio eletrônico

Os gastos com marketing digital em 2023 foram de US $ 7,2 milhões, com taxas de conversão em média 3,6% entre as plataformas.

Plataforma	Receita gerada	Custo de aquisição do cliente
Google Shopping	US $ 22,3 milhões	US $ 45 por cliente
Marketplace do Facebook	US $ 16,9 milhões	US $ 38 por cliente

Arlo Technologies, Inc. (Arlo) - Modelo de negócios: segmentos de clientes

Proprietários de imóveis que buscam soluções de segurança

A partir do quarto trimestre de 2023, Arlo relatou 1,4 milhão de assinantes pagos para serviços de segurança doméstica. A taxa média de penetração familiar para os sistemas de segurança doméstica inteligente foi de 18,3% nos Estados Unidos.

Características do segmento de clientes	Penetração de mercado	Gasto médio anual
Proprietários unifamiliares	62%	US $ 324 por ano
Residentes de apartamento/condomínio	38%	US $ 276 por ano

Pequenas e médias empresas

O segmento de segurança comercial da Arlo representou 22,7% da receita total em 2023, com 48.000 clientes comerciais.

• Empresas de varejo: 35% da base de clientes comerciais
• Pequenos escritórios: 28% da base de clientes comerciais
• Setor de hospitalidade: 17% da base comercial de clientes

Consumidores que conhecem tecnologia

A pesquisa de mercado indicou que 34,6% da base de clientes da Arlo são os adotantes de tecnologia precoce, com gastos médios de tecnologia doméstica de US $ 1.240 anualmente.

Adoção de tecnologia Profile	Percentagem
Propriedade do smartphone	98%
Propriedade de dispositivo doméstico inteligente	67%

Gerentes de propriedades remotas

A Arlo Solutions atende 12.500 empresas de gerenciamento de propriedades, com uma média de 43 propriedades por cliente.

Entusiastas da casa inteligentes

Esse segmento representa 26% da base total de clientes da Arlo, com um investimento médio anual em tecnologias domésticas inteligentes de US $ 780.

• Integração com plataformas domésticas inteligentes: 92% de compatibilidade
• Número médio de dispositivos conectados: 4,3 por família

Arlo Technologies, Inc. (Arlo) - Modelo de negócios: estrutura de custos

Despesas de pesquisa e desenvolvimento

Para o ano fiscal de 2023, a Arlo Technologies relatou despesas de pesquisa e desenvolvimento de US $ 52,4 milhões, representando aproximadamente 28,5% da receita total.

Ano fiscal	Despesas de P&D	Porcentagem de receita
2023	US $ 52,4 milhões	28.5%
2022	US $ 49,8 milhões	26.7%

Produção de fabricação e hardware

Os custos de produção de hardware de Arlo para 2023 totalizaram aproximadamente US $ 87,6 milhões, com os principais componentes de custo, incluindo:

• Aquisição de matéria -prima
• Fabricação de componentes
• Montagem e controle de qualidade

Manutenção da infraestrutura em nuvem

As despesas de infraestrutura e tecnologia em nuvem para 2023 foram de US $ 24,3 milhões, cobrindo:

• Manutenção do servidor em nuvem
• Armazenamento de dados
• Infraestrutura de rede

Categoria de despesa de serviço em nuvem	Custo anual
Manutenção do servidor em nuvem	US $ 12,1 milhões
Armazenamento de dados	US $ 7,6 milhões
Infraestrutura de rede	US $ 4,6 milhões

Operações de marketing e vendas

As despesas de marketing e vendas em 2023 atingiram US $ 43,7 milhões, representando 23,8% da receita total.

Categoria de despesa de marketing	Custo anual
Marketing digital	US $ 18,2 milhões
Feira de feira e marketing de eventos	US $ 8,5 milhões
Compensação da equipe de vendas	US $ 17,0 milhões

Suporte e serviço ao cliente

As despesas de suporte ao cliente para 2023 totalizaram US $ 15,6 milhões, incluindo:

• Equipe de suporte técnico
• Infraestrutura de atendimento ao cliente
• Suportar plataformas de tecnologia

Categoria de despesa de suporte ao cliente	Custo anual
Salários da equipe de apoio	US $ 9,3 milhões
Suportar plataformas de tecnologia	US $ 4,2 milhões
Treinamento e desenvolvimento	US $ 2,1 milhões

Arlo Technologies, Inc. (Arlo) - Modelo de negócios: fluxos de receita

Vendas de hardware de câmeras de segurança

Para o ano fiscal de 2023, a Arlo Technologies relatou vendas de hardware de US $ 217,4 milhões. A linha de produtos inclui:

Tipo de câmera	Preço médio de varejo	Volume anual de vendas
Câmera sem fio essencial	$99.99	375.000 unidades
Câmera sem fio Pro 4	$249.99	285.000 unidades
Câmera sem fio Ultra 2	$399.99	165.000 unidades

Taxas mensais de assinatura de armazenamento em nuvem

A receita de armazenamento em nuvem de Arlo para 2023 totalizou US $ 54,3 milhões com as seguintes camadas de assinatura:

• Plano Básico: US $ 2,99/mês por câmera
• Plano Premium: US $ 9,99/mês por câmera
• Plano de elite: US $ 14,99/mês por câmera

Assinaturas de recursos premium

A receita de assinatura de recurso premium atingiu US $ 37,6 milhões em 2023, incluindo:

Recurso	Preço mensal	Contagem de assinantes
Detecção avançada	$4.99	225.000 assinantes
Gravação estendida	$3.99	190.000 assinantes

Ofertas de garantia estendida

A receita estendida da garantia para 2023 foi de US $ 12,7 milhões com as seguintes opções:

• Garantia estendida de 1 ano: US $ 29,99
• Garantia estendida de 2 anos: US $ 49,99
• Garantia estendida de 3 anos: US $ 69,99

Serviços de instalação corporativa e profissional

A receita de serviços profissionais totalizou US $ 22,5 milhões em 2023, com a seguinte quebra de serviço:

Tipo de serviço	Preço médio	Volume anual de serviço
Instalação residencial	$199	8.500 instalações
Instalação comercial	$799	3.200 instalações

Arlo Technologies, Inc. (ARLO) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Arlo Technologies, Inc. (ARLO) over the competition as of late 2025. It's all about high-quality capture, smart interpretation, and reliable service.

High-definition, wire-free security (2K/4K HDR) for easy DIY installation

Arlo Technologies, Inc. (ARLO) delivers high-end video quality without needing an electrician. The newest hardware, like the Ultra Security Camera 4K HDR (3rd Gen, 2025 Release), offers stunning clarity. You get that wire-free setup because the devices run on swappable, rechargeable batteries, meaning no wiring hassles for a DIY install anywhere around your home.

The hardware lineup supports various resolutions, giving you options based on where you place the device:

• Capture picture-perfect detail with 4K Video with HDR on top-tier models.
• Get powerful protection with 2K HDR video on the Pro Series cameras.
• Essential cameras offer 2K and HD options for clarity at affordable price points.

The cameras use Dual-Band Wi-Fi, automatically switching between the 2.4 or 5GHz network for the strongest connection.

Here's a look at the premium hardware capabilities:

Feature	Ultra Series (4K)	Pro Series (2K)	Indoor Camera
Maximum Resolution	4K with HDR	2K HDR	Varies (HD/2K options)
Field of View	180°	160° wide	360° pan & 180° tilt
Key AI Feature	Auto-Zoom & Tracking	Motion Detection & Alerts	Auto Motion Tracking
Audio	Premium 2-Way Audio with wind/noise cancellation	2-Way Audio	Motion & Audio Alerts

Intelligent, actionable alerts via Arlo Secure 6 AI-driven object recognition

The value isn't just in the picture; it's in what the picture means. Arlo Secure 6, the next evolution of the service, leverages Arlo Intelligence to filter out noise and provide context. This means you get alerts that matter, allowing for quicker, appropriate responses to potential emergency events.

The AI capabilities in Arlo Secure 6 include:

• Advanced Audio Detection: Identifying specific sounds like screams, gunshots, glass breaking, and smoke/CO alarms.
• Fire Detection: AI-powered notifications upon detecting flames.
• Object Recognition: Smart Detection for people, vehicles, and packages.
• AI Event Captions: Streamlining life with AI-generated descriptions of video events.

Comprehensive, integrated security ecosystem (cameras, doorbells, sensors) on one app

You get control over your entire security setup from one place, the Arlo Secure App. This ecosystem includes a range of devices, from cameras and video doorbells to floodlights and security systems, all managed centrally. The platform supports custom settings like auto-arming when you leave a geofence.

The success of this integrated, services-first approach is clear in the financials as of Q3 2025:

Metric	Value (Q3 2025)	Year-over-Year Growth
Annual Recurring Revenue (ARR)	$323 million	33.8%
Subscriptions and Services Revenue	$79.9 million	29.2%
Cumulative Paid Accounts	5.4 million	27.4%
Subscriptions Gross Margin (Non-GAAP)	85.1%	Up 770 basis points

Honestly, that subscription gross margin of over 85% shows where the real financial value is being created.

Professional monitoring and emergency response services (Arlo Safe)

For elite-level protection, the service tier includes 24/7 Professional Monitoring. This isn't just a notification; it's a direct line for backup when seconds count. The service provides 24/7 Emergency Response, allowing you to contact police, fire, or medical help with one tap, sending prefilled information like gate codes for faster access.

The premium service tier, which includes this monitoring, builds on the base subscription. For context, Arlo Technologies, Inc. (ARLO) reported that the average customer stays with Arlo services for more than 7 years, and subscription plans start at $17.99/month (billed annually) before factoring in the professional monitoring add-on.

Finance: draft 13-week cash view by Friday.

Arlo Technologies, Inc. (ARLO) - Canvas Business Model: Customer Relationships

You're looking at how Arlo Technologies, Inc. keeps its customers engaged, which is now heavily weighted toward its services, not just the hardware you buy. The relationship is designed to be sticky, moving from a one-time transaction to a continuous service agreement.

Automated and self-service via the Arlo mobile application and online community.

The primary interface for the customer relationship is the Arlo mobile application, which handles everything from device setup to feature access. This digital-first approach is essential for scaling, as it minimizes the direct cost of service delivery per user. The online community serves as a peer-to-peer support layer, deflecting simple inquiries away from direct support channels.

Dedicated customer support channels (phone, chat, email) for technical issues.

While self-service is the first line, Arlo Technologies, Inc. maintains dedicated channels for when things go wrong or for complex technical escalations. These channels support the premium nature of the Arlo Secure service, ensuring that users experiencing issues with their smart home security platform receive timely resolution.

High-touch relationship with strategic partners like ADT for B2B growth.

The relationship extends beyond the end-user to significant strategic alliances. The collaboration with ADT, the largest security company in North America, signed in June 2025, represents a high-touch B2B relationship. This deal is structured to integrate Arlo Technologies, Inc.'s AI security services into ADT's installed base, which is reported to be over 10M+ systems, with material upside expected for Arlo Technologies, Inc.'s subscription revenue starting in 2026. This type of partnership requires deep integration and dedicated account management.

Subscription-based model fostering long-term, continuous engagement.

The entire customer relationship strategy hinges on converting hardware buyers into long-term subscribers for Arlo Secure. This is evidenced by the financial metrics showing services now dominate the revenue mix and profitability profile. For instance, in Q3 2025, subscriptions and services accounted for 57.3% of total revenue, with services revenue hitting $79.9 million, a 29.2% year-over-year increase.

The success of this model is reflected in the key performance indicators (KPIs) that measure engagement and retention:

• Paid accounts reached 5.396 million by the end of Q3 2025, a 27.4% year-over-year increase.
• Annual Recurring Revenue (ARR) accelerated to $323.2 million as of Q3 2025, marking 33.8% year-over-year growth.
• Average Revenue Per User (ARPU) was reported as over $15 per month in Q3 2025.
• Customer Lifetime Value (LTV) is estimated to be over $870.
• Monthly churn is reported as just 1.0%, indicating superior retention.
• The average customer tenure is stated to be more than 7 years.

The high profitability of this engagement is clear, with the non-GAAP subscriptions and services gross margin expanding to 85.1% in Q3 2025.

Here's a snapshot of the subscription performance driving this relationship as of Q3 2025:

Metric	Value (Q3 2025)	Year-over-Year Change
Annual Recurring Revenue (ARR)	$323.2 million	+33.8%
Total Paid Accounts	5.396 million	+27.4%
Subscriptions & Services Revenue	$79.9 million	+29.2%
Non-GAAP Services Gross Margin	85.1%	+770 basis points
Average Revenue Per User (ARPU)	Over $15 per month	Increasing

The full-year 2025 guidance for service revenue was raised to above $310 million. This entire structure is designed to make the recurring service the most valuable part of the customer journey, so the relationship is defintely built to last.

Arlo Technologies, Inc. (ARLO) - Canvas Business Model: Channels

Direct-to-Consumer (D2C) sales via Arlo.com website.

The D2C channel contributes to the overall paid account base, which stood at $5.396$ million at the end of Q3 2025, representing a $27.4\%$ year-over-year increase.

Major e-commerce platforms, notably Amazon.

E-commerce and retail channels collectively drive product sales and new service sign-ups. Management noted that growing shelf space at major retailers, especially Walmart, contributed to higher unit velocity and broader market reach.

Global retail chains for physical product sales (e.g., Best Buy, Costco).

The performance across channels is reflected in the overall revenue mix for Q3 2025, where subscriptions and services accounted for a majority share.

Revenue Component	Amount (Q3 2025)	Percentage of Total Revenue (Q3 2025)
Total Revenue	$139.529$ million	$100\%$
Subscriptions and Services Revenue	$79.9$ million	$57.3\%$
Product Revenue	$\sim\$59.6$ million	$\sim42.7\%$

The product segment saw unit sales growth of $\sim29\%$ year-over-year in Q3 2025, supported by new product Bill of Materials (BOM) cost reductions ranging from $20$ to $35\%$.

Telecommunications and security service providers (e.g., ADT partnership).

Strategic partnerships are a key channel for driving future service revenue growth.

• In the retail and direct channel, the Average Revenue Per User (ARPU) was over $\$15$ per month in Q3 2025.
• The Lifetime Value (LTV) of each user in these channels grew to over $\$870$ as of Q3 2025.
• International revenue represented $42\%$ of total revenue in Q3 2025, at $\$58$ million.
• A strategic partnership with ADT is expected to provide material upside to subscriptions and services revenue starting in 2026.

Finance: draft 13-week cash view by Friday.

Arlo Technologies, Inc. (ARLO) - Canvas Business Model: Customer Segments

You're looking at how Arlo Technologies, Inc. (ARLO) divides up its market as of late 2025. The focus is clearly shifting, with services now driving the bulk of the revenue story, which tells us a lot about who is sticking around and paying for the premium features.

The customer base is fundamentally global, segmented across three primary operational theaters. The Americas remains a core market, though the EMEA region showed significant strength in the prior fiscal year. The APAC region is the smallest piece of the pie, but all three are necessary for the overall scale Arlo is building.

Geographic Segment	Contextual Data Point
Americas	Largest market historically, accounting for 61.4% of 2023 revenue.
EMEA	Showed a significant 34.0% revenue increase in the context of the 2024 10-K.
APAC	Accounted for 5.1% of 2023 annual revenue.

The core consumer segment, which includes tech-savvy homeowners looking for premium performance and renters needing simple, wire-free setups, is measured by paid engagement. This group is what fuels the subscription engine. We see this in the latest figures from the third quarter ended September 28, 2025.

• Cumulative paid accounts reached 5.4 million at the end of Q3 2025.
• This represents year-over-year growth of 27.4% in paid accounts.
• The Annual Recurring Revenue (ARR) hit a record $323.2 million in Q3 2025.
• Average Revenue Per User (ARPU) in the retail and direct channel was over $15 per month.
• The calculated lifetime value (LTV) for each user grew to over $870, a new record.

To be fair, the shift to services means the segment valuing the recurring, high-margin features-like those in the Arlo Secure 6 AI-driven platform-is the most financially important segment right now. Subscriptions and services revenue accounted for 57.3% of total revenues in Q3 2025, with a non-GAAP gross margin of 85.1% in that same quarter. That margin disparity definitely separates the product-only buyer from the platform user.

Beyond the individual consumer, Arlo Technologies, Inc. serves business owners and enterprises through its Arlo SmartCloud offering. This targets a different set of needs, focusing on scalable cloud services for commercial deployment. This segment includes entities that need easy-to-deploy surveillance solutions without building out their own cloud infrastructure.

• Arlo SmartCloud is positioned for hardware companies, automotive companies, and service providers.
• It also targets insurance companies, home builders, smart communities, and smart cities.
• Security solution providers, like Verisure, were a major channel, deriving 43.2% of revenue in 2024.

The company is projecting that the service revenue for the full year 2025 will exceed $310 million, which is growth of over 27% year-over-year. This projection underscores the importance of successfully converting both individual users and business partners into long-term, high-value subscribers. Finance: draft the Q4 2025 revenue forecast based on the current paid account growth rate by next Tuesday.

Arlo Technologies, Inc. (ARLO) - Canvas Business Model: Cost Structure

You're looking at the costs Arlo Technologies, Inc. incurs to keep its connected security ecosystem running, which is a mix of physical goods and recurring cloud services. It's not just about manufacturing; the AI platform is a major cost driver.

Cost of Goods Sold (COGS) for Hardware, Impacted by Tariffs and Promotions

The hardware side of the business faced significant pressure in the third quarter of 2025. Honestly, product gross margins were negative for the period, which is a clear signal of cost headwinds. This was directly attributed to a couple of things: the ongoing global tariff environment and planned promotional activities designed to clear out older inventory.

Specifically, management noted that the full quarter impact of tariffs approximated $5 million, which directly depressed product margin. Also, planned promotional spend on End-of-Life (EOL) products contributed to this margin pressure. The overall GAAP gross margin for the company in Q3 2025 was 40.5%, but this blended number hides the negative margin on the hardware component.

Here's a quick look at the cost-related metrics from Q3 2025:

Metric	Value (Q3 2025)	Context
Product Gross Margin	Negative	Due to tariffs and promotions
Estimated Tariff Impact	~$5 million	Impacted product margin in Q3 2025
GAAP Gross Margin (Blended)	40.5%	Total company gross margin
Non-GAAP Gross Margin (Blended)	41.4%	Total company gross margin, adjusted

Significant Investment in Research and Development (R&D) for AI and New Products

Arlo Technologies, Inc. continues to pour resources into its software and AI capabilities, which is central to its value proposition. The investment in Research and Development (R&D) remains substantial to support the launch of new offerings, like the Arlo Secure 6 platform.

For the third quarter of 2025, the reported R&D expense was $18.1 million. This spending is explicitly tied to increasing personnel to support the development and launch of innovative product offerings and the AI-driven security platform. The company is making sure its core intelligence engine stays ahead.

Cloud Service and Data Storage Fees for Managing 5.4 Million Accounts

The cost structure for the services side is much healthier, which is why it is the focus of the business. Arlo Technologies, Inc. ended Q3 2025 with cumulative paid accounts reaching 5.4 million, growing 27.4% year-over-year. Managing the data and processing for this growing base requires significant cloud infrastructure.

While the exact dollar amount for cloud and data storage fees isn't broken out separately from the overall Cost of Revenue for Services, the efficiency is clear. The non-GAAP subscriptions and services gross margin hit a record 85.1% in Q3 2025. This high margin suggests that the variable costs associated with data storage and cloud delivery are well-controlled relative to the subscription revenue generated.

Key service metrics that drive these costs and revenues include:

• Annual Recurring Revenue (ARR) reached $323.2 million as of Q3 2025.
• Average Revenue Per User (ARPU) is cited as over $15 per month.
• The company is processing 50 million events each day through advanced object detection.

Sales, General, and Administrative (SG&A) Costs, Including Marketing and Retail Support

You have to spend money to sell the hardware and acquire those subscribers, so Sales, General, and Administrative (SG&A) costs are a necessary component. Arlo Technologies, Inc. has been focused on maintaining leverage in its go-to-market approach.

Management has successfully kept operating expenses relatively flat compared to revenue growth. They noted that operating expenses have been maintained at roughly $40 million per quarter or less since 2022, even while Annual Recurring Revenue (ARR) grew at a 37% Compound Annual Growth Rate (CAGR) during that same period. This leverage is key to their profitability goals.

The adjusted EBITDA for Q3 2025 was $17.1 million, resulting in an adjusted EBITDA margin of 12.2%. This shows that even with R&D investment and the hardware margin pressure, the overall cost structure allows for solid operating profitability.

For your reference, here are the operating results for Q3 2025:

• Adjusted EBITDA: $17.1 million.
• Adjusted EBITDA Margin: 12.2%.
• Operating Expenses (Proxy for SG&A + R&D): Maintained at ~$40 million or less per quarter.

Finance: draft 13-week cash view by Friday.

Arlo Technologies, Inc. (ARLO) - Canvas Business Model: Revenue Streams

You're looking at how Arlo Technologies, Inc. makes its money, and honestly, it's all about the shift to services. The recurring revenue engine is definitely the star here. Subscriptions and Services revenue hit $79.9 million in the third quarter of 2025. That's a big jump, up 29.2% year-over-year.

This service strength directly feeds the Annual Recurring Revenue (ARR) base, which ended Q3 2025 at $323.2 million. That ARR figure represents growth of 33.8% compared to the prior year. This recurring stream is what allows Arlo Technologies, Inc. to talk about durable, highly profitable revenue, even when the hardware side faces pressure.

To see the split, here's a quick look at the revenue sources for Q3 2025. The total revenue was $139.5 million. The business model clearly favors the software side now, which is the strategic play for margin expansion.

Revenue Component	Q3 2025 Amount (USD)	Percentage of Total Revenue
Subscriptions and Services Revenue	$79.9 million	57.3%
One-time Sales of Hardware Devices	$59.6 million	42.7%

The other major piece is the one-time sales of hardware devices, which includes cameras, doorbells, and security systems. In Q3 2025, this hardware component brought in the remaining $59.6 million of the total $139.5 million revenue. It's important to note that product gross margins were under pressure, reportedly turning negative due to the full-quarter impact of tariffs, which approximated $5 million, plus planned promotional spend on end-of-life (EOL) products. This is why the high-margin subscription business is so critical to the overall financial health.

The subscription segment boasts an exceptionally high gross margin. The non-GAAP subscriptions and services gross margin hit 85.1% in Q3 2025. That's a fantastic 770 basis points increase year-over-year. Even the GAAP services gross margin was strong at 84.5%. The company views the modest decline in product gross margin as part of the cost of customer acquisition, aiming for a best-in-class LTV (Lifetime Value) to CAC (Customer Acquisition Cost) ratio in the range of three times.

Here are some key performance indicators supporting this revenue structure:

• Cumulative paid accounts reached 5.4 million as of Q3 2025.
• The Arlo Secure 6 platform is driving ARPU (Average Revenue Per User) to over $15 per month.
• The LTV of each user grew to over $870, a new record.
• The company launched its largest product update ever, introducing over 100 new SKUs.
• Unit sales were up approximately 29% year-over-year.

Finance: draft 13-week cash view by Friday.