Hamed Khorsand

Jacob Stephan

Scott Searle

Adam Tindle

Rian Bisson

Logan Katzman

Mark Cash

- Arlo Technologies has successfully transitioned to a services business, currently at **$316 million ARR** and **5 million+ paid subscribers**, with long-term goals of **$700 million ARR** and **10 million paid subscribers** by **2028-2029**, aiming for **25%+ operating margin** (currently **13%**).  **[1736946_2137509_0]** 
- The company anticipates **60%** of incremental subscriber growth to come from **strategic accounts (B2B2C)**, with the remaining **40%** from traditional retail and direct channels.  **[1736946_2137509_0]** **[1736946_2137509_3]** 
- Arlo is launching a major hardware refresh in **October** 2025, which is expected to reduce COGS by **20%-30%** and expand product lines.  **[1736946_2137509_1]** 
- The company has demonstrated strong pricing power, increasing ARPU by over **50%** to over **$15** (from **$8-$9**) without impacting churn, with service gross margin at **85%**.  **[1736946_2137509_5]** **[1736946_2137509_6]** 
- Arlo maintains a strong LTV/CAC ratio of **over 3** (LTV **$840**, CAC **over $200**), with strategic accounts having effectively zero customer acquisition cost.  **[1736946_2137509_7]**

Arlo Technologies Discusses Strategic Transition and Growth Targets

- Arlo Technologies is undergoing a significant transition to a services business, reporting **$316 million ARR** and over **5 million paid subscribers**.  **[1736946_2137458_0]**  The company aims to reach **10 million paid subscribers** and **$700 million ARR** well before 2030, with an operating margin goal of over **25%**.  **[1736946_2137458_0]** 
- The strategy to achieve subscriber growth involves **60%** of incremental subscribers coming from strategic B2B2C accounts (e.g., ADT, Verisure) and **40%** from retail and direct channels.  **[1736946_2137458_0]** **[1736946_2137458_3]** 
- A major hardware refresh is currently shipping to retail for an October launch, expected to reduce COGS by **20% to 30%**.  **[1736946_2137458_1]**  The company also continuously updates its service offerings, with Arlo Secure 6 launched and Secure 7 planned for next year, focusing on AI capabilities.  **[1736946_2137458_1]** 
- Arlo has increased its Average Revenue Per User (ARPU) to over **$15** from $8-$9, with **no impact on churn**.  **[1736946_2137458_5]**  The service gross margin has risen to **85%**  **[1736946_2137458_6]** , and the monthly subscriber churn rate is approximately **1%**.  **[1736946_2137458_7]**

Arlo Technologies (ARLO)