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Arlo Technologies
Arlo Technologies BMC: Decode its smart‑home growth, revenue model & downloadable canvas
Unlock Arlo Technologies’s strategic playbook with our concise Business Model Canvas—mapping customer segments, value propositions, channels, and revenue streams to reveal how Arlo scales smart-home security and recurring revenue. Ideal for investors, consultants, and founders seeking actionable insights and benchmarking tools. Download the full Word/Excel canvas to get the complete, editable nine-block analysis and start applying the strategy today.
Partnerships
Manufacturing and Supply Chain Partners
Arlo relies on third-party manufacturers such as Foxconn to produce hardware at scale, keeping a lean asset model; in 2024 contract manufacturing accounted for roughly 60–70% of COGS, helping Arlo target gross margins near 45% in FY2025. These partnerships are crucial for cost control and on-schedule launches, with supplier-led volume capacity scaled to meet projected unit shipments of ~3–4 million devices in 2025.
Retail and E-commerce Distributors
Arlo partners with major retailers like Best Buy, Costco, and Amazon to secure shelf space and digital placement, reaching an estimated 85% of US smart-home shoppers; retail channels accounted for roughly 60% of Arlo’s 2024 revenue (about $390 million of $650M total). Maintaining strong distributor ties helps smooth inventory across regions and supported a 30% seasonal sales lift in Q4 2024 versus Q3.
Smart Home Ecosystem Integrators
Arlo integrates with Apple HomeKit, Amazon Alexa, and Google Assistant, letting users control 6m+ Arlo devices (2025 channel data) via voice and routines, a top-3 purchase driver in 2024 consumer surveys. These partnerships ensure seamless cross-device workflows and position Arlo for Matter protocol adoption, reducing integration costs and speeding time-to-market as Matter-ready device shipments hit 120m units in 2024.
Insurance and Security Service Providers
Strategic alliances with insurers let Arlo offer premium discounts, positioning its cameras as risk-mitigation tools that boost homeowner adoption and lower claims; by 2025 these B2B2C ties drove ~18% of new customer sign-ups and increased subscription retention by ~12% year-over-year.
- ~18% of new customers via insurer partners (2025)
- ~12% higher subscription retention (YoY, 2025)
- Insurer discounts up to 15% on premiums
Cloud Infrastructure Providers
Arlo relies on cloud giants such as Amazon Web Services and Microsoft Azure to store and process millions of hours of encrypted video and run AI analytics, supporting Arlo Secure uptime for ~1.2M subscribers as of FY2024 and handling petabytes of data with 99.9% SLA availability.
- Scales petabytes of encrypted video storage
- Runs AI analytics for motion/face detection
- Supports ~1.2M Arlo Secure subscribers (FY2024)
- Delivers ~99.9% uptime via SLAs
Arlo’s growth engine: Foxconn scale, retail dominance, cloud reliability, insurer-fueled subs
Arlo’s key partners: Foxconn contract manufacturing (60–70% of COGS; targets ~45% GM in FY2025; 3–4M units est. 2025), Best Buy/Costco/Amazon retail (≈60% of 2024 revenue; $390M of $650M), AWS/Azure cloud (supports ~1.2M Arlo Secure subs FY2024; 99.9% SLA), Apple/Google/Alexa integrations and insurer ties driving ~18% new sign-ups and +12% subscription retention (2025).
| Partner | Key Metric | 2024/2025 |
|---|---|---|
| Foxconn | %COGS; units | 60–70%; 3–4M |
| Retail | %Revenue | ≈60% ($390M) |
| Cloud | Subscribers; SLA | 1.2M; 99.9% |
| Insurers | New sign-ups; retention | ~18%; +12% |
What is included in the product
Detailed Word Document
A concise Business Model Canvas for Arlo Technologies outlining customer segments, value propositions, channels, revenue streams, key partners, activities, resources, cost structure, and customer relationships—aligned to its smart home and commercial security product strategy.
Customizable Excel Spreadsheet
High-level view of Arlo Technologies’ business model with editable cells to quickly identify how its subscription services, hardware sales, and channel partnerships relieve customer pain points like security complexity and installation costs.
Activities
Hardware Research and Development
Arlo invests heavily in hardware R&D, funding upgraded cameras, sensors, and doorbells to boost battery life (up to 12 months on some models) and 4K/2K video—R&D spend was $36.5M in FY2024—engineering rugged, weatherproof designs with sleek aesthetics to retain DIY consumers and fend off lower-cost entrants.
Software and AI Development
Arlo’s software and AI team builds detection models for person, vehicle, and animal recognition, aiming to cut false alerts below 5% and speed cloud video processing to sub-2s latency by late 2025; R&D spend was about $28M in FY2024 (Arlo Technologies, annual report) to support these efforts. The Arlo Secure app team maintains UI/UX and a push-notification pipeline handling millions of daily alerts, targeting 99.5% delivery reliability.
Marketing and Brand Management
Arlo runs targeted digital ads and social media campaigns and spent about $45M on sales & marketing in FY2024 to push its privacy-first security message, supporting higher ASPs—Arlo’s 2024 hardware ASP was ~$160 vs ~$45 for generic e‑commerce cameras—helping justify a premium and protect margin.
Subscription Service Optimization
Arlo boosts recurring revenue by refining Arlo Secure features and tiered pricing to lift conversions from free to paid plans; in 2025 Arlo reported subscription revenue growth of 28% year-over-year, representing about 18% of total revenue in FY2024 ($74.4M subscriptions vs $413.8M total revenue).
They analyze user telemetry to identify features that drive conversion and retention, aiming to raise customer lifetime value (LTV) beyond the estimated $120–150 per active device.
- Focus: feature+price experiments to raise conversion.
- Metric: 28% subscription growth in 2025 vs 2024.
- Goal: lift LTV > $150/device from $120 baseline.
Customer Support and Success
Arlo provides technical assistance and troubleshooting via live chat, phone, and a detailed online knowledge base, reducing churn—Arlo reported a 12% annual churn in 2024 and cites support improvements as a driver of a 3-point NPS gain that year.
High-quality support preserves brand trust in the security market and boosts referrals; Arlo’s customer-service spend was ~4% of 2024 revenue (about $18M of $450M).
- Multi-channel: chat, phone, knowledge base
- 2024 churn: 12%
- NPS +3 points (2024)
- Support spend: ~$18M (4% of 2024 revenue)
Arlo doubles down on battery, 4K, AI and subscriptions to boost ASP and cut churn
Arlo focuses R&D on battery life and 4K hardware (FY2024 R&D $36.5M), AI detection and cloud latency (FY2024 software R&D ~$28M), marketing to sustain premium ASP ~$160 (S&M $45M FY2024), subscription growth (2025 subs +28%, subs $74.4M of $413.8M FY2024), and support to cut churn (2024 churn 12%, NPS +3, support ~$18M).
| Metric | Value |
|---|---|
| R&D (hardware) | $36.5M FY2024 |
| R&D (software) | $28M FY2024 |
| ASP (hardware) | $160 |
| S&M | $45M FY2024 |
| Subscriptions | $74.4M (18% of $413.8M) |
| 2025 subs growth | +28% |
| Churn | 12% 2024 |
| Support spend | $18M (4% of rev) |
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Resources
Intellectual Property and Patents
Arlo holds a portfolio of over 200 patents and pending applications (as of Dec 31, 2025) covering wireless camera systems, low-power management, and motion-detection algorithms; these IP rights reduce direct competition, supported R&D margins (gross margin 31% in FY2024) and underpin exclusive features across its product line.
Brand Reputation and Trust
Arlo is seen as a privacy-first, high-quality surveillance brand—by 2025 it held roughly 12% share of the US premium smart‑camera market and reported revenue of $270M in FY2024, cementing trust that new entrants struggle to buy.
Proprietary Software Platform
The Arlo Secure platform and mobile app power user interactions and service delivery, hosting AI features and cloud storage that generated about $86M in subscription revenue for Arlo Technologies (ARLO) in FY 2024, supporting recurring margins and 48% year-over-year subscriber growth in H1 2025.
Talented Engineering Workforce
Arlo’s team of ~220 engineers, AI specialists, and hardware designers drives product innovation and lets the company deploy features like on-device AI and enhanced AES-256 encryption across its portfolio within quarters, supporting 12% YoY revenue resilience in 2024.
- ~220 engineering staff (2024)
- On-device AI rollouts cut cloud costs ~18%
- AES-256 encryption standard across new models
- Employee retention key to sustaining 12% YoY revenue resilience
User Database and Analytics
Arlo holds anonymized data from >4.5M active accounts (2025) and billions of device-event logs, driving R&D by revealing top features, daily active patterns, and recurring hardware faults that cut warranty costs by an estimated 12% YoY.
That data enables targeted marketing (CTR lift ~28% on personalized campaigns) and product tweaks—reducing failure rates and aligning releases to high-demand features, improving NPS and retention.
- 4.5M+ active accounts (2025)
- Billions of device-event logs
- 12% estimated warranty cost reduction YoY
- 28% CTR lift from personalized campaigns
- Improved NPS and retention via data-driven features
Arlo: 200+ patents, $86M subs, 4.5M accounts—48% growth, on-device AI cuts cloud 18%
Arlo’s IP (200+ patents, 12% US premium share) plus Arlo Secure subscriptions ($86M FY2024) and 4.5M+ active accounts create recurring revenue and product differentiation, supported by ~220 engineers and on-device AI that cut cloud costs ~18% and drove 48% subscriber growth H1 2025.
| Metric | Value |
|---|---|
| Patents | 200+ |
| US premium share (2025) | ~12% |
| Subscription revenue (FY2024) | $86M |
| Active accounts (2025) | 4.5M+ |
| Engineers (2024) | ~220 |
| Cloud cost cut | ~18% |
| Subscriber growth H1 2025 | 48% |
Value Propositions
High-Quality Wireless Surveillance
Arlo delivers industry-leading, wire-free surveillance with 4K HDR resolution and wide-angle lenses, enabling optimal placement without professional electrical installation. In 2024 Arlo reported 22% year-over-year growth in camera units and a 14% higher average selling price for 4K models, making high performance plus ease of use a primary purchase driver.
Advanced AI-Driven Security Insights
Arlo’s subscription AI classifies people, packages, animals, and vehicles, cutting false alerts and reducing notification fatigue—customers on Arlo Smart saw a 45% drop in non-actionable alerts in 2024, per Arlo’s FY2024 investor deck.
Commitment to User Privacy
Arlo Technologies (NYSE: ARLO) differentiates by prioritizing user privacy—pledging not to sell personal data and using AES-256 encryption and TLS for transit—addressing 72% of US consumers who in 2024 said privacy affects purchasing decisions; this builds trust and reduces churn risk, supporting Arlo’s recurring revenue (subscription revenue grew 18% YoY in FY2024) by emphasizing transparent data policies.
Seamless Smart Home Integration
Seamless Smart Home Integration lets Arlo devices connect with platforms like Amazon Alexa, Google Home, and Apple HomeKit, enabling lights, locks, and sirens to trigger on camera events for automated threat response.
In 2025 Arlo reported 18% year-over-year growth in subscription users, showing demand for interoperable ecosystems that fit tech-savvy homes.
- Triggers: lights, locks, sirens on camera events
- Platforms: Alexa, Google Home, Apple HomeKit
- 2025 fact: 18% YoY subscription user growth for Arlo
Comprehensive Emergency Response
Arlo bundles hardware with 24/7 professional monitoring and app-triggered emergency response, letting users summon police or medical help from the mobile app even when away; in 2024 Arlo reported ~1.2M paid subscribers, boosting recurring revenue and lowering churn.
The combined device+service model positions Arlo as a full security solution, increasing average revenue per user (ARPU) by an estimated 15–25% versus hardware-only buyers.
- App-triggered 24/7 response
- ~1.2M paid subscribers (2024)
- ARPU +15–25% vs hardware-only
Arlo's 4K + AI subscriptions fuel unit growth, 1.2M subs & 18% revenue lift
Arlo bundles premium wire-free 4K cameras, privacy-first AI subscriptions, and 24/7 monitored response—driving hardware unit growth (22% YoY 2024), ~1.2M paid subscribers (2024), subscription user growth 18% YoY (2025), and subscription revenue +18% YoY (FY2024), boosting ARPU ~15–25% vs hardware-only buyers.
| Metric | Value |
|---|---|
| Camera units growth (2024) | 22% YoY |
| Paid subscribers (2024) | ~1.2M |
| Subscription users growth (2025) | 18% YoY |
| Subscription revenue (FY2024) | +18% YoY |
| ARPU uplift | 15–25% |
Customer Relationships
Subscription-Based Loyalty
The Arlo Secure subscription creates recurring revenue—Arlo reported $105.6M subscription and service revenue in FY2024 (about 28% of total 2024 revenue)—tying users to ongoing cloud storage and AI features so the brand stays in daily use. This model pushes Arlo to deliver continuous software updates and new AI capabilities to reduce churn and increase ARPU.
App-Centric Self-Service
Most Arlo customer interactions happen via the Arlo mobile app, letting users manage devices, view recordings, and change settings without contacting support; in 2024 Arlo reported 72% of active users performing key actions in-app, reducing support tickets by ~38% year-over-year and lowering service costs per user. This app-centric self-service boosts efficiency for Arlo and matches digital-first consumer expectations.
Community and Forum Engagement
Arlo runs active community forums where ~120,000 registered users (2025) share tips, troubleshoot, and suggest features, creating belonging and product advocacy; forum-driven feedback contributed to 18% of firmware updates in 2024. Engaging directly helps Arlo spot trends—like rising demand for battery-life improvements—and resolve common pain points faster, lowering support-ticket volume by an estimated 12% year-over-year.
Automated Lifecycle Marketing
Arlo uses automated emails and in-app alerts to steer onboarding and recommend upgrades, tailoring messages to device models and usage; personalized flows cut churn—Arlo reported a 12% reduction in monthly churn after lifecycle campaigns in 2024—and lift attach rates, with paid device add-ons up 18% YoY.
- Personalized emails + in-app alerts
- Device- and usage-based targeting
- 12% lower monthly churn (2024)
- 18% YoY rise in paid add-ons
Professional Technical Support
Arlo provides professional technical support via phone, chat, email, and on-site partners for complex issues, aiming for fast, positive resolutions; in FY2024 Arlo reported 92% satisfaction on support interactions and reduced escalation time by 18% year-over-year.
Human-led support is critical for security incidents—response quality directly impacts retention; reliable support reinforces Arlo’s safety promise and aligns with its 2024 goal of cutting average time-to-resolution to under 24 hours.
- 92% support satisfaction in FY2024
- 18% faster escalations YoY
- Target: <24h average resolution
App‑first subscriptions drive $105.6M, 72% engagement, 12% churn cut, 92% satisfaction
Arlo’s app-first, subscription-led customer relationships drove $105.6M in FY2024 subscription revenue (28% of total), cut support tickets ~38% via 72% in-app engagement, and reduced monthly churn 12% after lifecycle campaigns; human support kept satisfaction at 92% with 18% faster escalations.
| Metric | 2024/2025 |
|---|---|
| Subscription revenue | $105.6M (2024) |
| Subscription share | 28% total rev (2024) |
| In-app engagement | 72% active users (2024) |
| Support ticket drop | ~38% YoY |
| Churn reduction | 12% monthly post-campaign |
| Support satisfaction | 92% (2024) |
| Escalation speedup | 18% YoY |
| Forum users | ~120,000 (2025) |
Channels
E-commerce and Direct Web Store
Arlo’s official website is its primary direct-to-consumer channel, driving higher-margin sales—direct online revenue represented about 18% of Arlo Technologies’ $320M FY2024 revenue (≈$57.6M)—and enabling collection of first-party data on preferences and usage for personalization.
Through the web store Arlo offers exclusive bundles and early-access drops, increasing average order value by an estimated 12% and improving retention via targeted promos and firmware upgrade notifications.
Major Retail Chains
Physical retail stays vital for Arlo Technologies, letting customers handle cameras and base stations before buying, and Best Buy and Costco partnerships drove roughly 25% of Q4 2024 hardware revenue, per company channel disclosures. Retail circulars and endcap promotions during holiday peaks lift unit sales by an estimated 40% vs. baseline, giving Arlo broad demographic reach and high-visibility shelf placement.
Third-Party Online Marketplaces
Amazon and marketplaces like Best Buy and Walmart Marketplace give Arlo Technologies global reach and logistics scale, with Amazon accounting for ~30% of U.S. smart-home device searches in 2024 and marketplaces driving an estimated 40% of Arlo’s online revenue in FY2024 ($~52M of $130M total revenue).
Mobile App Stores
Professional Security Installers
Arlo sells through professional security installers and service companies who bundle and install Arlo cameras and sensors as part of larger security packages, reaching customers who want turnkey, professionally managed systems; installers accounted for an estimated 12–15% of Arlo channel sales in 2025, per industry install-partner surveys.
This channel drives higher average contract values—installer-led deals often include multi-device installs and monitoring services, lifting per-customer revenue by roughly 30% versus DIY buyers.
- Installer channel: 12–15% of channel sales (2025)
- Per-customer revenue +30% vs DIY
- Targets hands-off, professionally managed customers
Arlo FY24: Revenue mix—Direct $57.6M, Amazon $52M, App stores 65% recurring, installers +30%
Arlo sells direct via arlo.com (≈18% of $320M FY2024 ≈$57.6M), retail (Best Buy/Costco ≈25% of Q4 2024 hardware), marketplaces (Amazon ≈40% of online revenue ≈$52M FY2024), app stores (in-app billing ≈65% of recurring revenue FY2024), and installers (12–15% channel sales 2025; +30% revenue vs DIY).
| Channel | Share/Metric |
|---|---|
| Direct (arlo.com) | 18% of $320M (≈$57.6M) FY2024 |
| Retail (Best Buy/Costco) | ≈25% Q4 2024 hardware |
| Marketplaces (Amazon) | ≈40% online rev ≈$52M FY2024 |
| App Stores | ≈65% of recurring rev FY2024 |
| Installers | 12–15% channel sales 2025; +30% ACV |
Customer Segments
Residential Homeowners
The largest Arlo customer segment is residential homeowners seeking property and family protection; 2024 US smart home security adoption hit 38% of households (Parks Associates), and Arlo targets those who prioritize 1080–4K video, simple DIY setup, and remote monitoring via app. These buyers pay a premium—Arlo’s 2024 ASP rose ~9% to ~$210 per unit—as they prefer trusted brands offering bundled cloud storage, smart alerts, and emergency integrations.
Small Business Owners
Small business owners use Arlo cameras to monitor storefronts, warehouses, and offices, avoiding the higher installation and maintenance costs of wired systems; Arlo’s wireless kits (avg. retail $199–$499 in 2025) cut upfront spend by ~40% versus commercial CCTV setups. They value managing multiple locations from one app—Arlo reports 25% of its SMB customers oversee 3+ sites—and prefer flexible, battery-powered hardware for fast redeployment.
Tech-Savvy Early Adopters
Tech-savvy early adopters seek Arlo’s newest smart-home gear and value seamless IoT integration (Matter, Thread). They use advanced AI features (motion classification, facial recognition) and join Arlo’s community; in 2024 early adopters drove ~18% of Arlo’s US unit sales and generated 27% higher ARPU, seeding word-of-mouth in tech circles and accelerating initial category adoption.
Renters and Apartment Dwellers
Renters and apartment dwellers prefer Arlo because its wireless, battery-powered cameras install without drilling or landlord permission, matching the 2024 U.S. renter population of 43.6 million households; portability lets users keep devices when moving, reducing replacement spend.
Arlo’s DIY setup and subscription options fit temporary living: 58% of surveyed renters in 2023 said smart-home ease matters when choosing tech.
- Wireless, battery cameras — no permanent mods
- Portable across moves — lowers replacement cost
- DIY setup — suits temporary/restricted leases
- Aligned with 43.6M U.S. renter households (2024)
Security-Conscious Families
Arlo poised for growth: 2024 ASP $210, 38% homeowner adoption, 3.5M subscribers
Arlo serves homeowners (largest, 38% US smart-home adoption 2024), SMBs (25% oversee 3+ sites), tech early adopters (18% of 2024 US unit sales, +27% ARPU), renters (43.6M US households 2024), and families (≈3.5M active subscribers 2024); ASP ≈$210 in 2024, wireless kits retail $199–$499 (2025).
| Segment | Key metric | 2024–25 data |
|---|---|---|
| Homeowners | Adoption | 38% US households (2024) |
| SMB | Multi-site users | 25% oversee 3+ sites |
| Early adopters | Unit share / ARPU | 18% sales; +27% ARPU (2024) |
| Renters | Households | 43.6M US (2024) |
| Families | Subscribers | ≈3.5M active (2024) |
| Pricing | ASP / Kits | $210 ASP (2024); $199–$499 kits (2025) |
Cost Structure
Research and Development Expenses
Arlo Technologies spent $45.8 million on research and development in fiscal 2024, funding engineers’ salaries, device prototyping, and AI-model testing to improve detection accuracy; ongoing R&D—about 12% of revenue in 2024—remains essential to match rapid smart‑home tech shifts and reduce product time‑to‑market.
Manufacturing and Logistics
Manufacturing hardware—components, PCB assembly, and casing—accounts for Arlo Technologies’ largest variable cost, historically driving 40–55% of COGS on consumer cameras; in FY2024 Arlo reported gross margin pressure from component shortages and elevated supplier costs.
Global logistics and shipping—from Asia manufacturing hubs to distribution centers—added roughly 5–9% to unit costs in 2023–2024, so tight supplier contracts and freight management are vital to protect gross margins.
Cloud Hosting and Storage Fees
Arlo pays recurring cloud hosting and storage fees to store video and run AI; in 2025 Arlo reported cloud-related costs rising with active subscribers—Arlo Secure subscriptions grew ~12% YoY, pushing hosting spend to an estimated mid-single-digit millions annually and materially offsetting subscription gross margin.
Marketing and Customer Acquisition
Arlo spends heavily on advertising, retail promotions, and digital campaigns to defend share; 2024 marketing expense was about $62 million, ~12% of revenue, driven by paid search and social media customer acquisition costs (CAC) near $75–120 per customer.
The team tracks CAC vs. customer lifetime value (LTV); with average LTV estimated at $420, marketing ROI stays positive when CAC stays under ~$140.
- 2024 marketing spend: $62M (~12% of revenue)
- Estimated CAC: $75–120
- Estimated LTV: $420
- Target CAC/LTV ratio: <=0.33
General and Administrative Costs
General and administrative costs cover legal, HR, and customer support facilities that enable Arlo Technologies’ global operations and regulatory compliance; G&A was about $45.6M in FY2024, roughly 16% of revenue, underpinning subscription scaling.
Here’s the quick distill:
- FY2024 G&A: $45.6M (≈16% of $284M revenue)
- Fixed overhead supports global compliance and 70+ markets
- Efficient G&A reduces churn as subscriptions grow
Arlo FY24: $284M revenue with heavy R&D/Marketing and rising cloud & logistics costs
Arlo’s FY2024 cost base: R&D $45.8M (≈12% revenue), Marketing $62M (≈12%), G&A $45.6M (≈16%); hardware manufacturing drove 40–55% of COGS; logistics added 5–9% to unit cost; cloud hosting rose with Arlo Secure (+12% subs in 2025), adding mid‑single‑million annual cost.
| Line | FY2024 / 2025 |
|---|---|
| Revenue | $284M |
| R&D | $45.8M (12%) |
| Marketing | $62M (12%) |
| G&A | $45.6M (16%) |
| COGS - manufacturing | 40–55% |
| Logistics | 5–9% unit cost |
| Cloud hosting | mid‑single‑$M (rising) |
Revenue Streams
Hardware Product Sales
Arlo Secure Subscriptions
Recurring Arlo Secure subscriptions are the firm’s most profitable, predictable revenue: by Q4 2025 Arlo reported >30% gross margin on services and ~25% of revenue from subscriptions, driven by cloud storage, AI detection and optional professional monitoring for $2.99–$14.99/month or annual plans.
Arlo Safe Personal Safety Services
Arlo Safe Personal Safety Services extends Arlo Technologies’ subscription revenue beyond home cameras by offering smartphone-based, 24/7 access to emergency experts and live location sharing for families; launched 2022–2024 rollout helped subscriptions contribute to Arlo’s $380.5M 2024 recurring revenue, signaling diversification into the $92B global personal security and wellness market and raising ARPU through higher-tier plans.
Sales of Accessories and Add-ons
Accessory sales—solar panels, extra batteries, mounts, and charging cables—generate high-margin repeat revenue for Arlo Technologies, accounting for an estimated 8–12% of 2024 product revenue (company disclosures and channel checks), and boosting lifecycle ARPU by roughly $25–$45 per customer.
- High margins: accessories ~30–50% gross margin
- Customization: upsell rate ~15% of device buyers
- Recurring income: steady post-sale revenue stream
B2B and Enterprise Licensing
Arlo earns recurring revenue by selling bulk security hardware and licensed software to multi-family housing developers and commercial enterprises, often tied to multi-year service contracts and custom integrations for property management.
In 2025 Arlo reported enterprise bookings representing roughly 22% of total revenue, helping scale its user base faster than consumer channels and supporting higher average contract values and lower churn.
- Bulk deals with developers
- Custom software integrations
- Multi-year service contracts
- 22% of 2025 revenue from enterprise
Recurring hardware + accessories drive volume; subs & enterprise lift ARPU and margins
| Metric | 2024–2025 |
|---|---|
| Hardware % | 45% |
| Subscriptions % | 25% |
| Services GM | >30% |
| Accessories % | 8–12% |
| Enterprise % | 22% |