ARLO Q2 2026 Earnings Presentation

Page 1

Page 2

© 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 2 This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words “anticipate,” “expect,” “believe,” “will,” “may,” “should,” “estimate,” “project,” “outlook,” “forecast” or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. The forward-looking statements represent our expectations or beliefs concerning future events based on information available at the time such statements were made and include statements regarding our potential future business, operating performance and financial condition, including descriptions of our expected revenue and profitability, GAAP and non-GAAP gross margins, adjusted EBITDA and adjusted EBITDA margins, tax rates, expenses, cash outlook, free cash flow and free cash flow margins; expectations regarding our increased annual guidance on total revenue and earnings per share for 2026; expectations regarding our brand recognition continuing to gain traction; expectations regarding our strategic objectives and initiatives; expectations regarding the realization of returns on our strategic investments and partnerships; and others. These statements are based on management’s current expectations and are subject to certain risks and uncertainties, including the following: future demand for our products may be lower than anticipated, including due to inflation, fluctuating consumer confidence, banking failures and high interest rates; we may be unsuccessful in developing and expanding our sales and marketing capabilities; we may not be able to increase sales of our paid subscription services; consumers may choose not to adopt our new product offerings or adopt competing products; product performance may be adversely affected by real world operating conditions; we may be unsuccessful or experience delays in manufacturing and distributing our new and existing products; we may fail to manage costs and cost saving initiatives, the cost of developing new products and manufacturing and distribution of our existing offerings; we may fail to successfully integrate acquired businesses, technologies or personnel, or to realize the anticipated benefits, synergies or cost savings from our recent acquisitions; we may experience difficulties retaining key employees of acquired companies; the costs and management attention associated with the integration of acquired businesses may be greater than anticipated; and we may not realize the expected returns on our future strategic investments, if any. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Further information on potential risk factors that could affect our business are detailed in our periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled “Risk Factors” in the most recently filed Annual Report and Quarterly Report filed with the Securities and Exchange Commission (the “SEC”) and subsequent filings with the SEC. Given these circumstances, you should not place undue reliance on these forward-looking statements. We undertake no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. In addition to the financials presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation includes the following non-GAAP metrics: non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income and non-GAAP earnings per diluted share. These supplemental measures exclude adjustments for stock-based compensation expense, amortization of intangible assets, acquisition-related expense, gain on sale of long-term investment, amortization of software development cost, depreciation expenses, and the related tax effects. In addition, we use free cash flow as a non-GAAP measure when assessing the sources of liquidity, capital resources, and quality of earnings. We believe that free cash flow is helpful in understanding our capital requirements and provides an additional means to reflect the cash flow trends in our business. There are a number of limitations related to the use of these non-GAAP metrics versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP metrics differently or may use other metrics to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial metrics as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures set forth in the Appendix to this presentation, and not to rely on any single financial measure to evaluate our business. This presentation and the accompanying oral presentation also contain estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry and business. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. We have not independently verified the industry data generated by independent parties and contained in this presentation and, accordingly, we cannot guarantee their accuracy or completeness. In addition, projections, assumptions, and estimates of our future performance and the future performance of the markets in which we compete are necessarily subject to a high degree of uncertainty and risk. SAFE HARBOR DISCLOSURE

Page 3

3 © 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 Investor Highlights

Page 4

4 © 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 Arlo protects your everything. © 2 0 2 6 . A L L R I G H T S R E S E R V E D . Arlo is a subscription software business in the smart security segment powered by a scaled, secure, and sophisticated platform with groundbreaking AI capabilities called Arlo Intelligence. We win on focus, innovation, and our privacy pledge. Arlo’s solutions have led the industry for more than 10 years with our team of 360 dedicated employees committed to making sure our users are safe.

Page 5

5 © 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 Large, Growing, & Underpenetrated Smart Home Security Market Arlo participates in the broader home security market that is sized in the US at $25B in 2025 TAM is further expanded by Europe and other international markets and potential future expansion into adjacent smart home segments Adoption rates for smart cameras and video doorbells have more then doubled in the US during the last five years, the fastest among any smart home category Smart home security products also have the highest attach rate for subscription services among all smart home products (66% for smart cameras and 71% for video doorbells) Despite its growth, paid smart home security services are just 7% penetrated in the US and 68% of homes do not pay for security services, leaving 10x more whitespace available for capture DIY & Professionally Installed Security Devices. (Consumer, US) $8.2B Smart Security Services (Consumer, US) $16.6B Broader DIY Smart Home (Consumer, US) $13.4B Global Market Estimated @ 2-3x US Adjacent Markets Estimated @ 3-4x I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 Data from Parks Associates and Consumer Technology Association (CTA)

Page 6

© 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 6 Above range Above range Paid accounts Excellent execution Etc Rule of 40 = 45 Service revenue = 63% Overview $156M Total Revenue Above the high end of our guidance range $93M Service Revenue Up 19% year over year $365M ARR Up 16% year over year $31M EBITDA Up more than 70% year over year $0.28 EPS (non-GAAP) Above the high end of our guidance range Quick View Arlo Q2 2026

Page 7

7 © 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 $15.3 Retail ARPU (1) (1) Average monthly revenue per retail paid account user. (2) LTV calculated as retail ARPU multiplied by non-GAAP retail services gross margin divided by retail services churn rate. (3) Non-GAAP gross margin for retail paid accounts. (4) CAC calculated as retail sales and marketing expense less retail product non-GAAP gross profit divided by number of new retail paid subscriber accounts. 1.0% 2.0% 4.0% 4.5% 6.0% 6.0% 7.5% 8.7% Paid Account Monthly Churn Rate(5) Security Service Ranked as Least Likely to Cancel 94% Retail Gross Margin (3) (5) Arlo churn is calculated on new business model households only. 7 © 2 0 2 6 . A L L R I G H T S R E S E R V E D . $917 Retail LTV (2) $229 Retail CAC (4) 4.0x LTV to CAC (4) O utstanding Unit Econom ics Retail Accounts = 89% of ARR

Page 8

8 © 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 Q2 2026 Financial Results

Page 9

© 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 9 Paid Accounts & Annual Recurring Revenue (ARR) Q1’26 Q2’26Q4‘25Q3’25Q2’25 5,396 6,303 5,115 5,687 +23% Y/Y Growth +16% Y/Y Growth Paid Accounts (thousands) Annual Recurring Revenue (millions) Q1’26 Q2’26Q4‘25Q3’25Q2’25 $330.5 $365.0 $323.2 $315.7 6,005 $356.9 $63M Product Revenue of Up 23% year-over-year <1% Monthly Subscriber Churn of Leading Customer Retention 298K Paid Accounts of added during the period ARR represents and is defined as the annualized paid subscriptions and services revenue we expect to recognize from subscription contracts, as calculated by taking the average paid subscriptions and services revenue multiplied by the number of subscription accounts at the end of the reporting period.

Page 10

© 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 1010 Subscriptions and Services Revenue & Gross Margin NRE Revenue from Onboarding of Record Service Revenue of Total Revenue Q1’26 Q2‘26Q4‘25Q3’25Q2’25 $90.1 $93.0 $79.9 $78.2 Subscriptions and Services Revenue (Millions) Subscriptions and Services Gross Margin (non-GAAP) Q1’26 Q2‘26Q4‘25Q3’25Q2’25 84.0% 84.1% 85.1% 84.9% $89.4 85.4% $1.2M Impacted Services Gross Margin Record Total Revenue of $156M 60% Up 21% year-over-year 19% Y/Y Growth The most directly comparable GAAP financial measures are presented in the GAAP to non-GAAP reconciliation in the Appendix

Page 11

© 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 1111 Gross Profit & Margin and Adjusted EBITDA & Margin +33% Y/Y Growth Gross Profit and Gross Profit Margin (Millions) Adjusted EBITDA and Adjusted EBITDA Margin (non-GAAP) $59.3 $57.7 $67.6 $75.3 $78.8 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 45.8% 41.4% 47.8% 50.1% 50.6% $18.0 $17.1 $23.3 $30.4 $30.6 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 13.9% 12.2% 16.5% 20.2% 19.6% +70% Y/Y Growth 220 bps (excluding impact of tariff refund) Gross Product Margins up Driven by Strong Partner Demand 480 bps Consolidated Gross Margins up Including Tariff Refunds 20% Adjusted EBITDA Margins of Up 570 basis points year-over-year The most directly comparable GAAP financial measures are presented in the GAAP to non-GAAP reconciliation in the Appendix

Page 12

© 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 1212 $0.28 $31.1M 45% Earnings Per Share and Free Cash Flow (including $8 million tariff refund) Up 65% year-over-year Free Cash Flow up (including $0.07 tariff refund) Up 65% year-over-year Inclusive of acquisition of Aloe Care and stock repurchase Non-GAAP Net Income Non-GAAP Dilutive EPS Q2’25 Q2’26 $0.17 $0.28+65% Y/Y Growth +$0.11 +45% Y/Y Growth +$2.6m Non-GAAP Dilutive Earnings Per Share Free Cash Flow (millions) Q2’25 Q2’26 $5.9 $8.5 The most directly comparable GAAP financial measures are presented in the GAAP to non-GAAP reconciliation in the Appendix

Page 13

© 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 1313 Balance Sheet Metrics $141M 37 Days $22M Inclusive of acquisition of Aloe Care and stock repurchase Ending Cash & ST Investments Driven by Strong Product Sales DSOs up to Stock Repurchase Plan Returns of Capital to ShareholdersQ2’25 Q1’26 Q2’26 43 31 37 DSO (days) Q2’25 Q1’26 Q2‘26 7.7 6.0 5.5 Inventory Turns (times) Q2’25 Q1’26 Q2’26 $160 $167 $141 C ash & ST Investm ents (millions) Does not include acquired inventory from Canary and Aloe Care © 2 0 2 6 . A L L R I G H T S R E S E R V E D .

Page 14

14 © 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 Looking Ahead Continuing Growth

Page 15

15 © 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 © 2 0 2 6 . A L L R I G H T S R E S E R V E D . Device Portfolio Subscription Services AI Platform Powerful Partnerships 45m+ devices shipped 26bn+ API calls per day 170bn+ AI alerts per year 1,700+ hrs. of video per min ARLO INTELLIGENCE Unique SaaS Platform A sophisticated and performant SaaS platform built over the last 10 years with artificial intelligence at its core and providing world-class smart security experiences for our users and strategic partners. Growth Drivers Arlo is poised for continued strong growth and is executing a multi-factor strategy to achieve our long-range plan. This growth will come from gains in our current channels, new partnerships, entry into new market segments, and creating compelling services across those routes to market. Continued Retail Expansion Execution across our retail and direct channels to expand shelf, increase assortment, launch additional products, and capture market share. Grow B2B Partnerships Win new strategic partners while growing existing B2B accounts to accelerate our indirect paths to consumers and scaled SaaS services. Launch New Markets Expand devices and subscription services into new markets, regions, and adjacent segments that leverage our platform and technological strengths. Develop Innovative Services Continue rapid innovation cycle on platform services and subscriptions with accompanying devices to further drive SaaS revenue and margin. 15

Page 16

16 © 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 16 Arlo Capital Allocation Plan © 2 0 26 . A L L R I G H T S R E S E R V E D . Organic Inorganic Share Repurchase Arlo Cash Balance - $141 million at June 2026 Organic Investment Reinvest capital into organic growth opportunities • Next Generation platforms • Arlo Intelligence • SaaS platform expansion • Device roadmap expansion • Adjacent sales, marketing, or new market builds Share Repurchase Preserve intrinsic value through reduced dilution and at times when Arlo’s equity is perceived as undervalued. Inorganic Investment Outside investments to accelerate growth • Strategic technology or platform partnerships • Investments in technology components • M&A to accelerate path to long term targets

Page 17

17 © 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 Q3 & Full Year 2026 Financial Outlook

Page 18

18 © 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 Q3 2026 Guide REVISED FY 2026 Guide $0.17 - $0.23 $0.90 - $1.00 © 2 0 2 6 . A L L R I G H T S R E S E R V E D . 18 $140 - $150M $580 - $600MTotal Revenue Earnings per Share (non-GAAP) Service Revenue $375 - $385M

Page 19

© 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 19 SaaS Platform Innovation Powerful AI features driving engagement & subscription revenue Looking Ahead Arlo is set up for another successful year with past investments coming to fruition and numerous opportunities to drive service revenue growth and shareholder value. 1 Continued Growth in Current Channels Expanding assortment & and capturing market share 2 New Strategic Partners Significant & impactful new partners locked in for years of growth 3 Expansion into Adjacent Markets Deploying capital in preparation for new segments launches 4 20%+ Service Revenue Growth Targeting more than 20% service revenue growth in 2026+ 5 Additional Share Repurchase Board approval for additional share repurchase 6 Arlo is set up for strong growth in both 2026 & 2027… and on track to achieve our long-range plan (10m, $700m, 25%) substantially early.

Page 20

Page 21

© 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 21 Reconciliations of GAAP Measures to Non-GAAP Measures Gross Profit, in thousands, except percentage data

Page 22

© 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 22 Reconciliations of GAAP Measures to Non-GAAP Measures Adjusted EBITDA, in thousands, except percentage data

Page 23

© 2 0 2 6 . A L L R I G H T S R E S E R V E D . A R L O I N V E S T O R P R E S E N T A T I O N : A U G U S T 2 0 2 6 23 Reconciliations of GAAP Measures to Non-GAAP Measures Free Cash Flow, in thousands, except percentage data

Slides