Arlo Technologies, Inc. (ARLO) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Professional & Commercial Services · as of Sep 25, 2026
Arlo Technologies, Inc. (ARLO)
A forensic read on Arlo Technologies, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
6.4
Distress distance
Clean
Earnings quality
6
Forensic signals
46.6
P / E (ttm)
11.7%
ROE
$1.5B
Market cap
3.6%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Arlo Technologies, Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 6.4, placing it in the Safe zone. 6 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-69.6%
FY2024
Return on invested capital.Return on invested capital is -69.6% in the latest fiscal year, against -29.1% in FY2023. After-tax operating profit was ($20M) in FY2023 and ($28M) in FY2024, with operating income at -5.1% of revenue in FY2023 and -6.8% in FY2024. The capital base behind it came down -41% across FY2023–FY2024, from $68M to $40M, so this is a return struck on a smaller base rather than a record of money put to work.
+9.0%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +19% over the last 2 years to FY2025 (+9.0%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~9.0% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~16%.
12% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 12% of revenue in FY2025 — about $0.57 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 9.0% a year and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
n/m (sign flip)
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets flipped from positive to negative FY2024→FY2025 (FY2024 $+18.9M to FY2025 $-18.6M) — the standard accruals ratio divides by the average of the two, which collapses toward zero right as the sign changes, so the resulting percentage is a denominator artifact, not a real accrual measurement. Treat this as a structural balance-sheet shift to understand on its own terms rather than a clean or dirty accruals read.
Key fundamentals
Latest Revenue$529.3M
Revenue Growth YoY+3.6%
Revenue CAGR (2yr)+3.8%
Net Margin2.8%
Return on Equity11.7%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Arlo Technologies, Inc.'s actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Sep 25, 2026. Forensic signals flag probability, not certainty.
50d
FY2024→FY2025
Inventory days.Days inventory outstanding moved from 45 to 50 FY2024→FY2025 (against cost of goods sold; inventory +1% vs -8% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
58% of OCF
FY2025
Shareholder returns.Returned $46M to shareholders (buybacks + dividends) in FY2025 — 58% of operating cash flow. Capex isn't disclosed for FY2025, so this is the ceiling on coverage, not the free-cash-flow payout — actual free-cash coverage is tighter than this reads.