ARLOMEDIUM SIGNALFINANCIAL10-K

Arlo demonstrated meaningful improvement in cash generation and profitability while strengthening its balance sheet position.

The company's substantially higher operating cash flow combined with strong gross profit growth indicates improving operational efficiency and business momentum. The notable increase in cash position and stockholders' equity suggests enhanced financial flexibility for strategic investments or weathering market volatility.

Comparing 2026-02-27 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

Arlo's financial position strengthened considerably with cash and equivalents growing to $146.4M from $82.0M, while operating cash flow expanded meaningfully to $78.7M. Gross profit increased 24% to $232.8M, indicating solid revenue performance and margin management. The decline in accounts receivable alongside higher cash generation suggests improved collection efficiency and stronger underlying business fundamentals.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+78.5%
$82.0M$146.4M

Cash position surged 78.5% — strong cash generation or capital raise providing significant financial cushion.

Operating Cash Flow
Cash Flow
+53.4%
$51.3M$78.7M

Operating cash flow surged 53.4% — exceptional cash generation, highest quality earnings signal.

Accounts Receivable
Balance Sheet
-30.8%
$57.3M$39.7M

Receivables declined — improved collection efficiency or conservative revenue recognition.

Stockholders Equity
Balance Sheet
+26.7%
$100.9M$127.8M

Equity base grew 26.7% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Gross Profit
P&L
+24.2%
$187.5M$232.8M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-02-27
ADDED
The number of outstanding shares of the registrant s Common Stock, $0.001 par value, was 106,855,416 shares as of February 20, 2026.
If we lose the services of key personnel or are unable to attract new qualified personnel, we may not be able to execute our business strategy effectively.
insurance industry were to change its practice of providing incentives to homeowners for the use of home security services, we could experience a reduction in new subscriber growth or an increase in our subscriber churn.
We and the third parties with whom we work are subject to stringent and evolving U.S.
and foreign laws, regulations, rules, contractual obligations, policies and other obligations related to data privacy and security.
Our (or the third parties with whom we work) actual or perceived failure to comply with such obligations could lead to regulatory investigations or actions; litigation; fines and penalties; disruptions of our business operations; reputational harm; loss of revenue or profits; loss of customers or sales; and other adverse business consequences.
Subscriptions of Arlo Secure are available with various Arlo cameras, home security, and doorbell products.
Other Services Arlo SmartCloud is a SaaS solution that delivers advanced smart security cloud services with Arlo Intelligence for businesses looking to rapidly integrate and deploy smart security at scale.
Products Smart Security Devices Arlo Essential Cameras and Doorbells , refreshed in the fourth quarter of 2025, deliver smart home protection for everyone at an incredible value.
The new 2025 lineup features the Arlo Essential Pan Tilt powered security cameras with 360-degree coverage and 2K video resolution, as well as new versions of the Essential Battery-Powered, Essential Indoor and Essential XL Security Cameras with dual-band WiFi for expanded connectivity options.
REMOVED
The number of outstanding shares of the registrant s Common Stock, $0.001 par value, was 102,437,935 shares as of February 25, 2025.
If we lose the services of key personnel, we may not be able to execute our business strategy effectively.
A trial period of Arlo Secure is provided with various Arlo cameras, home security, and doorbell products.
The features of Arlo Safe subscriptions include: One-Touch Emergency Response Access live safety experts 24/7 to rapidly send fire, police, or medical responders directly to the user s exact location.
Family Safety Never miss a moment with the ability to know where opt-in family members have been, see their current location, or send help directly to them in an emergency situation.
Crash Detection and Response Advanced impact detection can expedite emergency response in the event of a vehicle accident by sharing appropriate location and medical information with first responders.
Other Services Arlo SmartCloud is a SaaS solution that delivers scalable security cloud services for business.
Products Smart Security Devices Arlo Essential Cameras and Doorbells (2nd Generation) , released in the third quarter of 2023, deliver smart home protection for everyone at an incredible value.
The new lineup features the Arlo Essential XL Outdoor Camera with 4X the battery life of the new standard Essential Outdoor Camera, as well as a new Essential Indoor Camera with an automated privacy shield.
A new Video Doorbell with head-to-toe 180-degree field of view is also available.
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