What Do Analysts Say About Arlo Technologies (ARLO)?

With upside potential of 66.04%, Arlo Technologies, Inc. (NYSE:ARLO) ranks among the stocks under $20 that will explode. The stock received an “Outperform” rating from Wall Street, building on a quarter that already drew analyst attention.

On May 18, 2026, Oppenheimer initiated coverage of Arlo Technologies, Inc. with an “Outperform” rating and a $20 price target. The analyst said Arlo has executed one of the more successful business model transitions in consumer hardware, evolving from a low-cost camera vendor into a premium, service-first recurring revenue platform supported by a growing roster of strategic distribution partners. The firm pointed to accelerating subscription momentum and what it called a structural mispricing relative to Arlo’s services-mix profile.

The analyst noted that Arlo Technologies, Inc.’s annual recurring revenue in 2025 grew 28% to $330 million, which, in his analysis, underlines the strength and momentum of this shift.

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On the earnings side, Arlo Technologies, Inc. reported subscriptions and services revenue of $90.1 million for the quarter ended March 29, 2026, up 30.9% year-over-year. Annual Recurring Revenue reached $356.9 million, growing 29.2%. Adjusted EBITDA rose 85.3% to $30.4 million, and non-GAAP EPS came in at $0.28.

CEO Matthew McRae pointed to Arlo Technologies, Inc.’s acquisition of Aloe Care Health as a step toward expanding AI-powered aging-in-place services.

Arlo Technologies, Inc. is a smart home security company. It develops cloud-based platforms, wireless security cameras, video doorbells, floodlights, and alarm systems for residential and commercial users.

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