Arlo Technologies, Inc.

United States · owned by Independent (United States) · arlo.com · 55 vendors

Arlo is an American company that makes wireless security cameras. Arlo was considered a brand by Netgear, before being spun off as a separate, independent company in 2018.

Resilience scores

Technology vendors

Services catalogue

3 services in catalogue across 2 categories; runs on 55 sub-vendors.

Insights

Last updated 2026-09-13 · revision 16

55 direct vendors, 353 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Migration Readiness: 8/10

Assessed by AI based on technology stack characteristics (cloud-native vs legacy, containerization, microservices), regulatory environment, data residency requirements, financial stability, and vendor lock-in risks. The score ranges from 0-10, where higher scores indicate better readiness for technology migration.

Arlo Technologies exhibits a high degree of migration readiness, primarily due to its highly modern and cloud-native technology stack. The extensive use of Amazon Web Services (AWS) services, coupled with containerization (Kubernetes, Docker), serverless computing (AWS Lambda), and infrastructure as code (Terraform), means their infrastructure is inherently flexible, scalable, and designed for agility. Their adoption of microservices architecture, event streaming (Kafka), and modern programming languages (Java, Python, Node.js) further enhances their ability to adapt, refactor, and migrate components with relative ease. However, several factors temper this high readiness. The declining revenue trend could pose financial constraints on funding a significant migration project, especially if it involves a shift to a different cloud provider. Furthermore, while their current architecture is highly migratable within the AWS ecosystem, the deep integration with AWS-specific services (e.g., Lambda, S3, Kinesis, DynamoDB) implies a degree of platform lock-in. Migrating away from AWS to another hyperscaler would therefore present substantial re-architecture and re-platforming challenges. Regulatory requirements, including SOC 2 Type II, GDPR compliance, and NIS2 applicability, along with specific data residency requirements (US and Europe), add complexity to any migration. These necessitate meticulous planning to ensure continuous compliance and data integrity throughout the process. The provided vendor data is inconsistent ("Total Vendors: 0" vs. detailed vendor geographic diversity), making a precise assessment of vendor lock-in risk difficult beyond the clear AWS platform dependency.

Compliance

9 in-scope frameworks identified; showing 3.

NIS2 (source) — Assessment Required

Arlo Technologies provides cloud-based digital services (video surveillance-as-a-service, smart home IoT platform) and may qualify as a 'digital provider' under NIS2 Annex II (Important Entities), specifically as an online marketplace or cloud computing service provider. Arlo's Arlo Secure cloud subscription service processes data for EU consumers. However, NIS2 primarily targets entities with significant EU-based operations or registered entities in EU member states. Arlo is a US-headquartered company with EU sales subsidiaries. The risk is medium because: (1) NIS2 enforcement is still maturing across member states (transposition deadline was October 2024), (2) Arlo's EU entity structure is not fully public, and (3) classification as a 'digital provider' vs. a consumer electronics company is subject to regulatory interpretation. Non-compliance risk includes supervisory measures and fines up to €10 million or 2% of global turnover for Important Entities.

Evidence: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32022L2555, https://www.enisa.europa.eu/topics/cybersecurity-policy/nis-directive-new, https://investor.arlo.com/sec-filings/annual-reports

GDPR (source) — Partially Compliant

Arlo Technologies sells smart home security cameras and cloud-based video surveillance services directly to consumers across the EU/EEA. This means they process significant volumes of personal data — including video footage, biometric-adjacent data, location data, and account information — of EU/EEA residents. GDPR carries fines of up to €20 million or 4% of global annual turnover. The nature of Arlo's product (continuous video recording of homes and individuals) places it in a high-sensitivity data processing category. Enforcement of GDPR against IoT/smart home companies has been increasing across EU member states. Arlo has published a privacy policy referencing GDPR rights, but full compliance posture (DPO appointment, DPIA completion, SCCs for data transfers) cannot be independently verified from public sources, elevating residual risk.

Evidence: https://www.arlo.com/en-us/legal/privacy.html, https://www.arlo.com/en-gb/legal/privacy.html, https://investor.arlo.com/sec-filings/annual-reports

CPRA — Partially Compliant

Arlo Technologies is headquartered in San Jose, California, and processes personal data of California residents at scale. CCPA/CPRA applies to for-profit businesses meeting revenue/data thresholds — Arlo's annual revenue (~$500M+) and volume of California consumer data clearly exceed all thresholds. CPRA (effective January 1, 2023) introduced enhanced obligations including a new category of 'sensitive personal information' (which would include precise geolocation and video surveillance data), a right to correct, and the California Privacy Protection Agency (CPPA) as an enforcement body. Fines of up to $7,500 per intentional violation. Arlo's privacy policy references CCPA rights, but full CPRA compliance (sensitive PI handling, opt-out of sharing, updated contracts) requires ongoing assessment.

Evidence: https://www.arlo.com/en-us/legal/privacy.html, https://cppa.ca.gov/, https://investor.arlo.com/sec-filings/annual-reports

Financials

Three-year financials

Financial Resilience Score: 5/10

This score reflects a company in a critical strategic transition. While its current profitability is weak, its strategic direction towards recurring revenue shows promise. Arlo's primary strength is the rapid growth of its service revenue. The number of paid subscribers has been increasing consistently. As of the end of FY 2022, Arlo had 2.24 million paid accounts, a significant increase year-over-year. This shift provides a more predictable and high-margin revenue stream compared to one-time hardware sales. Arlo has established a strong brand in the premium segment of the DIY (do-it-yourself) home security market, often associated with high-quality video and advanced features. While product (hardware) gross margins are volatile and subject to supply chain pressures, service gross margins are high and improving, which is a positive indicator for future profitability as the service segment grows. The company is not yet profitable and has a history of burning cash. Achieving profitability is the single most significant challenge and depends entirely on scaling its subscriber base faster than its operating expenses. Arlo faces fierce competition from deep-pocketed rivals like Amazon (Ring, Blink) and Google (Nest), as well as lower-cost competitors like Wyze. This puts constant pressure on pricing and marketing spend. Despite the pivot to services, the company's ecosystem still relies on initial hardware sales to acquire new subscribers. A slowdown in the housing market or consumer discretionary spending could negatively impact this funnel. The continued losses have eroded shareholder equity, which can be a concern for investors and lenders.

Key strengths: Growing Recurring Revenue, Strong Brand Recognition, Improving Margins

Risk factors: Consistent Net Losses, Intense Competition, Dependence on Hardware Sales, Negative Stockholders' Equity

Revenue by product/service

Workforce by country

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