Why Is ARLO TECHNOLOGIES IN (ARLO) Stock Down Today?

Arlo Technologies shares fell 13.98% to $12.77 as the company released third-quarter results that beat expectations but were accompanied by a fourth-quarter outlook that fell short of consensus estimates. The stock gapped down significantly at the open, reflecting a market reaction to the guidance provided alongside the earnings report.

What Happened

Arlo Technologies reported non-GAAP earnings per share of $0.24, which exceeded expectations by $0.04. Revenue came in at $149.18 million, a 6.9% increase year over year, beating estimates by $4.25 million. The company noted that subscriptions now drive nearly two-thirds of its revenue, highlighting a shift toward recurring income streams. Despite the positive top-line results, Arlo provided fourth-quarter guidance for adjusted EPS of $0.17 to $0.23, compared to a consensus estimate of $0.19. Sales guidance for the quarter was set between $137.00 million and $147.00 million, against an estimated $140.28 million.

Following the release, analysts adjusted their price targets. Raymond James lowered its target to $17 from $19, while Craig-Hallum cut its target to $20 from $22. Piper Sandler raised its target to $17 from $16 and reiterated an Overweight rating. Lake Street raised its target to $26 from $25. The mixed analyst response reflects a debate over the sustainability of the company's subscription growth versus the near-term revenue trajectory.

What The Data Shows

The stock opened at $14.01, a 5.6% gap down from the prior close of $14.84. It reached a session high of $14.05 at 9:20 AM ET before sliding to a low of $12.68 at 10:30 AM ET. Volume stood at 0.4 million shares, which is 0.3 times the three-month daily average. The company’s market capitalization is $1.6 billion with a P/E ratio of 53.5. Trailing twelve-month revenue grew 15.6%, and the net margin is 5.2%. The stock has a beta of 1.61 and trades within a 52-week range of $11.05 to $17.84. On November 6, 2026, the stock printed three fresh 52-week highs and 15 fresh 52-week lows.

Recent insider activity shows four sells totaling $1.9 million in the last 90 days, with no buys. CFO Kurtis Joseph sold shares on November 4 and September 28, while Director Amy Rothstein sold on September 1. Congressional records show one sell of $1,001 to $15,000 by Donald J. Trump on July 29.

What To Watch

Investors will monitor the company’s ability to execute on its subscription growth strategy while navigating the lower-than-expected fourth-quarter revenue guidance.