Arlo Technologies, Inc.
Arlo Technologies, Inc. designs and sells smart security products and subscription services that help consumers and small businesses monitor homes, property, and personal safety. Its platform combines cloud-based video management, AI and computer vision analytics, and app-controlled devices such as cameras, video doorbells, floodlight cameras, and home security systems. Arlo also monetizes its installed base through recurring services including Arlo Secure, Arlo Total Security, and Arlo Safe. The company sells through retail, wholesale, wireless carriers, security solution providers, and its own direct-to-consumer online store, with a meaningful portion of revenue tied to subscriptions and strategic partners such as Verisure and ADT.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueCloud-based paid services for video storage, monitoring, alerts, and personal safety features.
Cameras, doorbells, floodlight cameras, and home security hardware sold through retail and channel partners.
Mounts and related accessories that expand device placement and usability.
Revenue generated through strategic partners, security solution providers, carriers, and distributors.
Products
Reported · share of revenue- Subscriptions and Services59.8 %
- Products40.2 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Arlo sells primarily to consumers who want a self-installed smart security solution for homes, apartments, and personal safety use cases. It also serves small business and security-solution customers that need connected cameras and monitoring tools, often through channel partners rather than direct enterprise sales. A large part of the business depends on converting device buyers into paid subscribers, so customer value is driven by both hardware adoption and recurring service attachment. Strategic partners such as Verisure and ADT expand reach into new geographies and customer bases, while retail and online channels support broad consumer demand. The company’s customer care and app ecosystem are designed to keep users engaged and reduce churn in the subscription base.
Households and individuals buy cameras, doorbells, and subscriptions to monitor property and receive alerts through the Arlo app.
Existing device owners pay for cloud recording, advanced monitoring, and safety services to increase functionality and convenience.
Partners such as Verisure and ADT buy or distribute Arlo products and services to extend their own security offerings.
Shoppers buying through major retailers and online marketplaces for broad availability and price comparison.
Customers using LTE-enabled cameras and cellular security solutions sold through carriers for connectivity and portability.
Strategy
Arlo’s strategy is to expand its installed base of registered and paid accounts and monetize that base through recurring subscription services. The company is investing in new products, AI-enabled features, and cloud capabilities to make the platform more valuable and to support higher engagement and retention. It is also deepening channel partnerships and route-to-market coverage through retailers, carriers, security providers, Verisure, and ADT to broaden distribution and accelerate subscription growth. Management has indicated that it expects continued investment in R&D and sales and marketing, while also focusing on cost optimization and gross margin improvement to support profitability and liquidity.
Recurring services improve revenue quality and reduce dependence on one-time device sales.
Partnerships and multi-channel reach increase customer acquisition and geographic coverage.
Product differentiation is essential in a crowded smart security market.
The company has a history of losses and needs stronger operating leverage to fund growth.
Geography
Q1/2026Arlo conducts business across three main regions: the Americas, EMEA, and APAC. In 2025, the Americas accounted for 64.2% of revenue, EMEA 31.6%, and APAC 4.2%, showing that the business is still heavily weighted toward North America but has a meaningful European footprint. Europe is strategically important because Verisure is the exclusive distributor of Arlo products in Europe, and that relationship represented 32% of total revenue in 2025. The company also sells in more than 100 countries, which broadens its market reach but increases exposure to regional demand swings, channel execution, and cross-border supply chain complexity.
Share of the revenue the company reports by geography.
Risks
Arlo faces intense competition from large technology and security brands, which can pressure pricing, channel access, and product differentiation. Its business depends on a limited number of key suppliers and third-party manufacturers, so component shortages or cost inflation can disrupt shipments and margins. Cybersecurity and privacy risks are especially important because the company operates cloud services, connected devices, and a direct-to-consumer store; any breach or product vulnerability could damage trust and subscription retention. The company also has meaningful exposure to partner concentration, particularly Verisure in Europe, and to the success of new partnerships such as ADT. More generally, demand for consumer security devices can be affected by macroeconomic conditions, promotional intensity, and shifts in retail and carrier channel inventory.
- Cybersecurity and product vulnerabilityImpact: CriticalLikelihood: Medium
Connected devices, cloud services, and the direct-to-consumer store create attack surfaces that could harm users and the brand.
Exposure - Supplier concentration and component shortagesImpact: HighLikelihood: Medium
Several key components come from limited or sole-source suppliers, so disruptions can delay production and increase costs.
Exposure: Device hardware supply chain
- Partner concentrationImpact: HighLikelihood: Medium
Verisure represented 32% of total revenue in 2025, so partner demand or contract changes could materially affect results.
Exposure: Europe distribution
- Competitive pricing pressureImpact: MediumLikelihood: High
Large technology and security companies compete on price, features, and distribution, which can reduce margins and growth.
Exposure: Consumer smart security market
- Channel and inventory volatilityImpact: MediumLikelihood: Medium
Retailers, distributors, and carriers can change ordering patterns quickly, affecting shipment timing and revenue recognition.
Exposure: Retail and wholesale channels
Accounting
Judgemental itemsDifferent recognition patterns create mix-driven quarterly volatility and affect comparability across periods.
Impact: Top-line timing and gross margin
Channel promotions and customer incentives reduce reported revenue rather than operating expense.
Impact: Reported revenue and margin presentation
Prepaid subscriptions and backlog determine future revenue recognition timing.
Impact: Revenue visibility and working capital
Promotional pricing and demand changes can require inventory write-downs or lower ASPs.
Impact: Product gross profit
Software capitalization affects expense timing and can influence operating profit trends.
Impact: Operating expenses and earnings
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Last updated: 24/09/2026