Is the business good?
How good a business is ARLO?
Arlo Technologies, Inc. earns 22% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
22%
Return on invested capital · cost of capital 9.0% · 13 points above what the capital costs: growth creates value
- Operating margin
- 2.7%
Operating margin · Building Products & Equipment median 16% · 12 months to Q2 2026
- Share count, year on year
- +2.5%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 15%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −29% |
| FY2021 | −14% |
| FY2022 | −12% |
| FY2023 | −5.1% |
| FY2024 | −6.8% |
| FY2025 | 1.1% |
Details›
- Gross margin12 months to Q2 2026
- 46%
- Operating margin12 months to Q2 2026
- 2.7%
- Net margin12 months to Q2 2026
- 5.2%
- R&D as % of revenue
- 15%
- Revenue, trailing twelve months
- $587M
- Net income, trailing twelve months
- $31M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 22%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Building Products & Equipment
Ranks #7 of 18 by Smart Score