Forensic Analysis · Professional & Commercial Services · as of Aug 11, 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.
D · Weak — demands caution
Forensic grade
Safe
Financial health
7.1
Distress distance
Clean
Earnings quality
6
Forensic signals
54.2
P / E (ttm)
11.7%
ROE
$1.6B
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). 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 D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 7.1, 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 and rising from -555% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+8.1%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +26% over the last 3 years to FY2025 (+8.1%/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 ~8.1% 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 FY2022 has been diluted ~21%.
12% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 12% of revenue in FY2025 — about $0.57 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count: holders gave up about 8.1% of the company a year, and that rate is not falling. That is the figure to weigh, not the share of free cash flow.
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.
50d
Key fundamentals
Latest Revenue$529.3M
Revenue Growth YoY+3.6%
Revenue CAGR (3yr)+2.6%
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 Aug 11, 2026. Forensic signals flag probability, not certainty.
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.
Arlo Technologies, Inc. (ARLO) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy