Arlo Technologies

ARLO

Communication Equipment · Technology

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 28, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Exceptional

Stability

Good

Valuation

Good

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Winston Score History

The full picture

Arlo Technologies makes wireless security cameras and smart home safety devices for everyday consumers. Its main products include indoor and outdoor cameras, video doorbells, and floodlight cameras that let homeowners watch their property from a smartphone. The company spun off from Netgear in 2018 and sells its hardware through major retailers like Best Buy as well as online.

Arlo makes money two ways: selling cameras as hardware and charging monthly or annual subscription fees for cloud video storage and advanced features like package detection and emergency response. Most of its revenue comes from North America, though it has a growing presence in Europe and Australia. The subscription business is the key growth driver, since recurring fees carry higher margins than hardware sales and create a more predictable revenue stream. The main risk is intense competition from Ring, owned by Amazon, and Google Nest, both of which have deeper pockets and larger ecosystems.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+20.5% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+0.0% YoY

YoY Growth Rate

Slow EPS growth

Insider Activity

3.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$141M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Arlo Technologies is a rare growth stock that's already generating positive cash flow while growing at 21%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

48.2%

Healthy — 48.2% gross margin

Profit after running costs

Operating Margin

1.6%

Thin — 1.6% operating margin

Return on the money invested

ROCE

9.8%

Below par — 9.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+15.6%

Fast-growing sales (+15.6% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

347%

Turns 347% of profit into real cash

Spare cash per sale

FCF Margin

15.7%

Converts sales into free cash efficiently (15.7%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

45.2x

no trend

Expensive — P/E 45.2

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+27.9

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (45.2 → 17.3)

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Dividends

Not applicable for this business.

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