ARLOArlo Technologies, Inc.
Services-Detective, Guard & Armored Car Services
- Revenue
- $529M
- 3.6% YoY
- Operating margin
- 1.1%
- 117% YoY
- EBITDA
- $10M
- 132% YoY
- Market cap
- $1.6B
- Employees
- 186
- $3M revenue each
- Net debt / EBITDA
- —
- AI in 10-K
- 7.9
- mentions per 10K words
Takeover score 3 of 13
Fixable underperformance 1 of 7
- TSR below peersNo1 of 5 years3+ of last 5 years
- High CEO pay despite TSRNo$10M medianMedian CEO pay ≥ $15M while TSR trails
- Earnings not backed by cashNo527% of net incomeCash flow under 80% of net income
- Dilutive SBCYes12% of revenueOver 10% of revenue
- Payouts exceed cash flowNo58% of cash flowBuybacks + dividends over cash flow
- Goodwill-heavyNo13% of assetsOver 40% of assets
- Shareholder dissentNo81% lowest supportAny vote under 80% support
Buyer economics 1 of 4
- Low revenue per employeeNo$3M · 97th pctBottom quartile of its SIC industry
- Quiet on AINo7.9 per 10K words · 89th pctBottom quartile of AI mentions in 10-Ks
- Net cashNo—More cash than debt, positive EBITDA
- Buyout-sizedYes$1.6B market capMarket cap $500M–$5B
Catalysts 1 of 2
- Active 13DNo0 filingsActive-intent 13D in 18 months
- Net insider sellingYes−$22M netNet sales over $10M in 12 months
Financials
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|---|---|
| Revenue | $435M | $490M | $491M | $511M | $529M | 3.6% |
| Operating income | −$60M | −$57M | −$25M | −$35M | $6M | 117% |
| Net income | −$56M | −$57M | −$22M | −$31M | $15M | 149% |
| Operating cash flow | −$23M | −$46M | $38M | $51M | $79M | 53% |
| Capex | $2M | $2M | $3M | $3M | — | |
| Stock-based comp | $38M | $48M | $48M | $69M | $62M | 9.2% |
| Buybacks | — | $0 | $0 | $4M | $46M | 931% |
Deal filings
None.
13D filers
| Filed | Filer | Form | Stake | Intent |
|---|---|---|---|---|
| Sep 13, 2019 | VIEX Capital Advisors, LLC | SC 13D/A | 2.0% | Passive |
| Aug 8, 2019 | VIEX Capital Advisors, LLC | SC 13D/A | 3.4% | Active |
| Apr 30, 2019 | VIEX Capital Advisors, LLC | SC 13D/A | 4.0% | Active |
| Mar 27, 2019 | VIEX Capital Advisors, LLC | SC 13D/A | 4.0% | Passive |
| Feb 26, 2019 | VIEX Capital Advisors, LLC | SC 13D | 4.0% | Active |
Insider trading
- Open-market buys, 12 mo
- $0 · 0
- Open-market sells, 12 mo
- $22M · 34
- Net
- −$22M
Pay vs performance
| Year | CEO total comp | Comp actually paid | TSR (indexed) | Peer TSR |
|---|---|---|---|---|
| FY2025 | $7M | $21M | 180 | 139 |
| FY2024 | $23M | $41M | 144 | 117 |
| FY2023 | $10M | $37M | 122 | 118 |
| FY2022 | $15M | −$4M | 45 | 98 |
| FY2021 | $10M | $17M | 135 | 127 |