Is Arlo's New AI-Powered Security Line and Subscription Upgrade Changing the Investment Case for ARLO?

• In late September 2025, Arlo Technologies unveiled a comprehensive suite of new AI-powered smart home security cameras, including advanced 360-degree pan tilt models, and introduced an upgraded Arlo Secure Plus subscription with enhanced features such as Person and Vehicle Recognition, Fire Detection, and Event Captions.
• This launch signals Arlo's focus on expanding its recurring revenue model and leveraging AI innovation to strengthen its position in the smart home security market.
• We'll explore how Arlo's expanded AI-powered product line could influence its recurring revenue growth and the company’s broader investment case.

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Arlo Technologies Investment Narrative Recap

To be an Arlo Technologies shareholder, an investor needs to believe in the company’s ability to grow recurring, high-margin service revenue through ongoing innovation in smart home security. While the September 2025 launch of AI-powered cameras and a new subscription tier reinforces this focus on services as a key growth catalyst, it does not materially change the biggest short-term risk: consumer adoption and retention of paid subscriptions in a competitive market.

Among the latest announcements, the October launch of advanced pan tilt cameras and the upgraded Arlo Secure Plus subscription showcases Arlo's push into differentiated features designed to enhance user experience and boost adoption of higher-value service tiers. These efforts align with rising household formation and an expanding subscriber base, both critical to driving future recurring revenue.

Yet, in contrast, investors should be aware that persistent industry pricing pressure and falling average selling prices for hardware may still...

Read the full narrative on Arlo Technologies (it's free!)

Arlo Technologies' narrative projects $632.0 million in revenue and $103.1 million in earnings by 2028. This requires 7.6% yearly revenue growth and a $110.1 million earnings increase from the current earnings of $-7.0 million.

Uncover how Arlo Technologies' forecasts yield a $23.20 fair value, a 36% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community have posted fair value estimates for Arlo Technologies ranging from US$7.79 to US$24.72 per share. While this breadth highlights independent views on the company’s potential, recent news underscores that Arlo’s recurring service revenue growth remains a central catalyst for ongoing performance and margin expansion.

Explore 4 other fair value estimates on Arlo Technologies - why the stock might be worth as much as 45% more than the current price!

Build Your Own Arlo Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Arlo Technologies research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Arlo Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Arlo Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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