Filing Flows › Arlo Technologies (ARLO) › Q2 2025
Arlo Technologies (ARLO) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 7, 2025
Arlo Technologies (ARLO) reported revenue of $129M for the second quarter 2025 (Q2 2025), +2% from a year earlier and +9% from the quarter before. Operating margin was 1.5%, net earnings $3.1M (2.4% of revenue).
Arlo Technologies, Q2 2025: revenue $129M (+2% year over year), operating margin 1.5%, net earnings $3.1M, operating cash flow $8.8M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $129M | +9% | +2% |
| Gross profit | $58.1M | +10% | +24% |
| Operating profit | $1.9M | — | — |
| Net earnings | $3.1M | — | — |
| Operating cash flow | $8.8M | -71% | +37% |
| Free cash flow | $5.9M | — | -5% |
What changed
Revenue was $129.4M in Q2 2025, up 2% year over year and up 9% from the previous quarter. Subscriptions and services was the largest line at 60% of revenue. Subscriptions and services added $17.9M year over year (up 30%), 915% of the total change. Products declined 24%.
Gross margin was 44.9%, up 8.1 points from a year earlier. Operating profit was $1.9M, a 1.5% margin (up 11.5 points year over year). Operating expenses fell 6% while revenue rose 2%. The fastest-growing cost line was Sales & marketing (+19%). Net earnings were $3.1M. The effective tax rate was -8.9%. Non-operating items added $937K, 33% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $8.8M (up 37% year over year), 283% of net earnings. Non-cash charges added back $858K of depreciation and amortization and $15.0M of share-based compensation. Working capital and other items used $10.1M. After purchases of property and equipment, including capitalized software ($3.0M), free cash flow as the company reports it was $5.9M.
Questions
What was Arlo Technologies' revenue in the second quarter 2025?
Arlo Technologies (ARLO) reported revenue of $129M for the second quarter 2025 (Q2 2025), +2% from a year earlier and +9% from the quarter before.
Was Arlo Technologies profitable in the second quarter 2025?
Operating profit was $1.9M (1.5% of revenue) and net earnings $3.1M.
Source: Arlo Technologies 10-Q on SEC EDGAR.