ARLO Stock Forecast & Price Target

Arlo Technologies Inc. has demonstrated strong product revenue growth, surpassing expectations during its transition between product models, indicating a robust demand for its security and video monitoring solutions. The company is strategically focusing on enhancing its recurring revenue streams through the Arlo Secure subscription service, which is designed to provide additional features and value to existing products. Furthermore, the rising prioritization of security among consumers, coupled with a commitment to aggressive expansion in the subscription market, positions Arlo favorably in an evolving smart home industry.

Arlo Technologies, Inc. reported a gross margin decline to 41.4 percent, marking the lowest level observed in 2025, indicating potential challenges in cost management and pricing strategy. The company is experiencing delayed customer conversions to paid accounts, negatively impacting service revenue, which is lagging behind annualized recurring revenue (ARR). Additionally, Arlo's sustained history of operating losses raises concerns about its financial viability, compounded by the risk of future costs related to integrating with voice assistant providers which could further strain operating results.