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• The independent Ring or Nest for smart home security cameras and video doorbells.

• A pure-play alternative to Ring or Nest for wireless DIY home security.

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• Smart Home Security Cameras: Wire-free and wired cameras offering high-definition video, motion detection, and two-way audio for indoor and outdoor surveillance.
• Video Doorbells: Smart doorbells that provide real-time video, two-way talk, and visitor alerts directly to a user's smartphone.
• Floodlight Cameras: Integrated security cameras with powerful LED floodlights, designed to illuminate and monitor large outdoor areas.
• Arlo Secure (Subscription Service): A range of subscription plans offering cloud video recording, advanced object detection, emergency response, and interactive notifications for Arlo devices.

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Arlo Technologies (ARLO) - Major Customers

• Residential Consumers: This is Arlo's largest customer segment, encompassing homeowners and renters. These individuals purchase Arlo's security cameras, video doorbells, and subscription services to monitor and protect their private residences, enhance home security, and maintain surveillance of properties and loved ones.

• Small Business Owners/Managers: While primarily consumer-focused, Arlo's user-friendly and scalable systems are also adopted by small businesses. These customers utilize Arlo products for basic surveillance of their offices, retail spaces, workshops, or other commercial properties, often prioritizing ease of installation and remote monitoring capabilities.

• Smart Home Enthusiasts and Integrators: This category includes tech-savvy individuals who are building comprehensive smart home ecosystems. Arlo's devices are often integrated alongside other smart home products (e.g., smart lights, thermostats) to create a more interconnected and automated living environment, leveraging Arlo for its security and monitoring functionalities within that broader system.

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• Wistron Corporation (TWSE: 3231)
• Flex Ltd. (NASDAQ: FLEX)

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Matthew McRae Chief Executive Officer

Matthew McRae has served as Arlo's Chief Executive Officer since August 2018. He previously held the position of Senior Vice President of Strategy at NETGEAR starting in October 2017. Before his time at NETGEAR, Mr. McRae was the Chief Technology Officer of Vizio Inc. from March 2010 to October 2017, and prior to that, he served as its Vice President and General Manager, Advanced Products Group, from August 2008 to March 2010. He also held the role of Vice President of Marketing and Business Development at Fabrik (now part of HGST, Inc.) from July 2007 to August 2008. From 2001 to June 2007, Mr. McRae was the Senior Director, Worldwide Business Development at Cisco Systems Inc. He founded Blossom, a startup focused on smart water consumption devices, where he also served as Chairman of the Board. Additionally, he is a board member for Violux and a Venture Partner for Okapi Ventures. Mr. McRae has served on the board of Dedicated Hosting Services, Inc. (d/b/a Streaming Media Hosting), a private content delivery network company, since 2014, and on the board of the UC Irvine Institute for Innovation since June 2015.

Kurt Binder Chief Financial Officer and Chief Operating Officer

Kurt Binder has served as Arlo's Chief Financial Officer since September 2022 and as Chief Operating Officer since February 2024. Before joining Arlo, Mr. Binder was the Executive Vice President and Chief Financial Officer of CalAmp Corp., a provider of telematics devices and software services, from July 2017 to September 2022. He also spent more than seven years as the Chief Financial Officer at VIZIO, Inc., a U.S. television and consumer electronics company, where he was recognized as "CFO of the Year" by the Orange County Business Journal in 2015. Prior to Vizio, Mr. Binder was the Chief Accounting Officer for Applied Medical Resources, Inc. and an Assurance and Advisory Business Services Partner at Ernst & Young LLP from 1997 to 2009.

Samir Kapoor Chief Technology Officer

Samir Kapoor has served as Arlo's Chief Technology Officer since March 2024. Mr. Kapoor has held executive leadership roles at companies such as Life360, Fitbit, and Qualcomm, as well as several early-stage and growth startups. His background encompasses extensive technical, operational, and product development expertise across software, hardware, services, and data. He holds a Ph.D. in Electrical Engineering from the University of Notre Dame and an MBA from the Wharton School at the University of Pennsylvania.

Michael A. Werdann Chief Revenue Officer

Michael A. Werdann has served as Arlo's Chief Revenue Officer since October 2024. Before joining Arlo, Mr. Werdann had a long tenure at NETGEAR from 1998 to 2024, where he held various positions including Chief Revenue Officer, Worldwide Senior Vice President of Sales for Consumer, Vice President of Americas Sales, United States Director of Sales, E-Commerce, and DMR. Prior to NETGEAR, he worked at Iomega Corporation, a computer hardware company, as a Sales Director.

Scott McManigal Senior Vice President of Design and Experience

Scott McManigal has served as Arlo's Senior Vice President of Design and Experience since March 2018, overseeing user experience design and research, industrial design, and mechanical engineering. Previously, Mr. McManigal was the Vice President of Design at VIZIO, where he was responsible for the creative vision and the design, definition, and execution of all products. Before joining VIZIO in 2009, he held leadership positions in design, product development, engineering, and creative roles at companies such as OpenPeak, Herbst Lazar Bell, BMW/Designworks, Mattel Toys, and Patton Design.

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The key risks to Arlo Technologies (ARLO) include:

1. Intense Competition: Arlo operates in a highly competitive market, facing significant challenges from larger companies with greater resources, such as Amazon (with its Ring and Blink subsidiaries) and Google (with its Nest brand). This intense competition can lead to pricing pressure, increased sales and marketing expenses, reduced profit margins, and a potential loss of market share.
2. Supply Chain Dependencies and Disruptions: Arlo relies on a limited number of third-party manufacturers and sole-source suppliers for critical components. This dependency exposes the company to risks such as supply disruptions, increased component costs, and potential quality control issues, which could negatively impact its ability to meet product demand, result in lost sales, and damage its brand reputation.
3. Reliance on Third-Party Cloud Systems and Cybersecurity Risks: The company's operations are dependent on third-party cloud-based systems and information technology infrastructure. This reliance, coupled with the inherent risks of cybersecurity threats and the need to comply with evolving data privacy regulations across multiple jurisdictions, poses a significant threat. Non-compliance or successful cyberattacks could lead to operational disruptions, financial penalties, and damage to customer trust and brand reputation.

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Arlo Technologies (ARLO) operates within the smart home security market.

• The addressable market for smart home security services in the U.S. is estimated to be $25 billion.
• Globally, Arlo estimates its total market opportunity to be 2-3 times the U.S. market, suggesting a range of $50 billion to $75 billion.
• The global smart home security market was valued at $32.5 billion in 2024 and is projected to reach $62 billion by 2029.

Arlo's main products and services, including smart security devices (cameras, doorbells, floodlights, and home security systems) and subscription services (Arlo Secure, Arlo Total Security, Arlo Safe, and Arlo SmartCloud), fall within this smart home security market.

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Arlo Technologies (ARLO) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Expansion of the Subscriptions and Services Business: Arlo's primary focus and a significant driver of revenue growth is its subscription-based services, such as Arlo Secure and Arlo Safe. The company has consistently reported strong growth in paid accounts and Annual Recurring Revenue (ARR). In Q3 2025, Arlo added 281,000 paid accounts, exceeding its target range, and grew its total paid accounts to 5.4 million, a 27% increase year-over-year. Annual Recurring Revenue (ARR) reached $323 million, up 34% over the same period last year. This momentum is expected to continue, with management targeting 10 million paid accounts and $700 million in ARR as long-range objectives.
2. Launch and Adoption of New AI-Driven Platforms and Refreshed Product Portfolio: The introduction of new AI platforms, such as Arlo Secure 6, is driving growth in the subscriptions business by offering enhanced features and guiding customers to higher-value AI-enhanced service levels. Arlo also executed its largest product launch in history, introducing over 100 new SKUs in 2025. This refreshed product portfolio, coupled with the AI-driven security platform, is expected to position the company well for continued service revenue growth.
3. Growth in Average Revenue Per User (ARPU): Arlo is improving ARPU trends by guiding customers to its higher-value, AI-enhanced service levels. In Q1 2025, ARPU rose to a record $13.48, propelled by the success of Arlo Secure 5 and new service plans. This indicates a successful strategy in monetizing its existing and new subscriber base more effectively.
4. Strategic Partnerships: Arlo is leveraging strategic partnerships, such as the one announced with ADT, to further differentiate itself in the smart security space and accelerate its ARR growth trajectory. These partnerships are crucial for driving household formation and expanding product and service offerings in competitive markets.
5. Unit Growth in Hardware and Cost Optimization: While product revenue has seen some declines due to industry-wide average selling price (ASP) reductions and promotional activities, Arlo anticipates 20% to 30% unit growth year-over-year in Q4 2025. Management expects that refreshing the device portfolio in the second half of 2025 will reduce unit costs by up to 35%, which should ease margin pressure and make hardware sales a more effective lever for acquiring new users into the Arlo ecosystem, thereby fueling subscription growth.

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Share Repurchases

• Arlo Technologies' Board of Directors approved a share repurchase program of up to $50 million through December 31, 2026.
• In the first quarter of 2025, Arlo purchased $15.2 million of its common stock under this program.
• Net cash used in financing activities for the repurchase of common stock was $16.1 million in the second quarter of 2025.

Inbound Investments

• A strategic partnership with Verisure, established in 2020, included an aggregate product purchase commitment of $500.0 million over five years.
• As of December 31, 2022, $336.7 million of this purchase commitment from Verisure had been fulfilled.
• In December 2020, Verisure prepaid $40.0 million for product purchases in fiscal years 2021 and 2022.

Outbound Investments

• Arlo made a strategic investment of $12.5 million in Origin Wireless in the first quarter of 2025.
• Arlo announced a strategic partnership with ADT, which is expected to materially increase subscriptions and services revenue starting in 2026.

Capital Expenditures

• In the second quarter of 2025, Arlo capitalized $2.0 million of software development costs related to the launch of new products and advancements for the Arlo Secure 6 platform.