Latest Ratios: P/E Ratio 95.8x · EV/EBITDA 131.6x · ROE 13.1%. (2016–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.5B | $1.5B | $1.1B | $883M | $306M | $867M | $608M | $316M | $671M | — | — |
| Enterprise Value | $1.3B | $1.4B | $1.0B | $844M | $245M | $718M | $452M | $112M | $540M | — | — |
| P/E Ratio → | 95.79 | 99.93 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 2.75 | 2.91 | 2.16 | 1.80 | 0.62 | 1.99 | 1.70 | 0.85 | 1.42 | — | — |
| P/B Ratio | 11.55 | 12.05 | 10.94 | 8.55 | 3.49 | 7.70 | 4.55 | 1.55 | 2.43 | — | — |
| P/FCF | 21.77 | 23.04 | 22.70 | 24.91 | — | — | — | 126.07 | — | — | — |
| P/OCF | 18.50 | 19.58 | 21.51 | 23.05 | — | — | — | 34.46 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.65 | 2.04 | 1.72 | 0.50 | 1.65 | 1.26 | 0.30 | 1.14 | — | — |
| EV / EBITDA | 131.65 | 140.11 | — | — | — | — | — | — | — | — | — |
| EV / EBIT | 216.89 | 89.45 | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 20.95 | 21.39 | 23.79 | — | — | — | 44.79 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 44.0% | 44.0% | 36.7% | 34.1% | 27.7% | 24.8% | 15.5% | 9.7% | 21.0% | 24.6% | 20.6% |
| Operating Margin | 1.1% | 1.1% | -6.8% | -5.1% | -11.6% | -13.8% | -29.4% | -37.3% | -14.3% | 1.5% | -7.1% |
| Net Profit Margin | 2.8% | 2.8% | -6.0% | -4.5% | -11.5% | -12.9% | -28.3% | -23.2% | -14.5% | 1.8% | -7.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.1% | 13.1% | -29.9% | -23.1% | -56.5% | -45.5% | -60.1% | -35.8% | -34.0% | 6.6% | -18.8% |
| ROA | 4.9% | 4.9% | -10.4% | -7.9% | -18.3% | -14.7% | -21.2% | -15.1% | -15.8% | 3.1% | -8.7% |
| ROIC | 35.9% | 35.9% | -51.8% | -41.1% | -157.2% | — | — | -143.0% | -37.5% | 4.3% | -13.5% |
| ROCE | 4.7% | 4.7% | -28.4% | -21.3% | -46.2% | -38.4% | -49.3% | -48.5% | -29.4% | 5.2% | -16.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.05 | 0.05 | 0.18 | 0.16 | 0.27 | 0.23 | 0.22 | 0.16 | 0.07 | — | — |
| Debt / EBITDA | 0.67 | 0.67 | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -1.09 | -0.63 | -0.38 | -0.69 | -1.33 | -1.17 | -1.00 | -0.47 | -0.00 | -0.00 |
| Net Debt / EBITDA | -13.97 | -13.97 | — | — | — | — | — | — | — | -0.01 | — |
| Debt / FCF | — | -2.09 | -1.31 | -1.11 | — | — | — | -81.28 | — | — | — |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($146M) exceeds total debt ($7M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.51 | 1.51 | 1.49 | 1.55 | 1.43 | 1.44 | 1.50 | 1.60 | 1.88 | 1.86 | 1.70 |
| Quick Ratio | 1.27 | 1.27 | 1.26 | 1.31 | 1.15 | 1.26 | 1.23 | 1.36 | 1.42 | 1.23 | 1.09 |
| Cash Ratio | 0.97 | 0.97 | 0.86 | 0.85 | 0.70 | 0.83 | 0.87 | 0.87 | 0.73 | 0.00 | 0.00 |
| Asset Turnover | — | 1.70 | 1.71 | 1.72 | 1.80 | 1.25 | 0.86 | 0.68 | 0.79 | 1.37 | 1.16 |
| Inventory Turnover | 7.20 | 7.20 | 7.96 | 8.43 | 7.61 | 8.52 | 4.66 | 4.87 | 2.99 | 3.37 | 3.07 |
| Days Sales Outstanding | — | 27.35 | 40.96 | 48.57 | 49.09 | 66.74 | 79.35 | 125.59 | 128.40 | 155.27 | 161.82 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.0% | 1.0% | — | — | — | — | — | — | — | — | — |
| FCF Yield | 4.6% | 4.3% | 4.4% | 4.0% | — | — | — | 0.8% | — | — | — |
| Buyback Yield | 3.1% | 3.0% | 0.4% | 2.7% | 5.9% | 1.5% | 0.8% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 3.1% | 3.0% | 0.4% | 2.7% | 5.9% | 1.5% | 0.8% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $110M | $99M | $93M | $87M | $83M | $78M | $75M | $67M | $73M | $73M |
Includes 30+ ratios · 10 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying ARLO stock.
Arlo Technologies, Inc.'s current P/E ratio is 95.8x. The historical average is 99.9x.
Arlo Technologies, Inc.'s current EV/EBITDA is 131.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
Arlo Technologies, Inc.'s return on equity (ROE) is 13.1%. The historical average is -28.4%.
Based on historical data, Arlo Technologies, Inc. is trading at a P/E of 95.8x. Compare with industry peers and growth rates for a complete picture.
Arlo Technologies, Inc. has 44.0% gross margin and 1.1% operating margin.
Arlo Technologies, Inc.'s Debt/EBITDA ratio is 0.7x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Subscription mix concentration risk
Metrics are mathematically derived from official filings.
Margin Expansion Signals Mix Shift
Gross margin reached a record 48.2% in Q2 2026, up from 36.8% two years earlier, according to recent financial statements, indicating a successful pivot toward higher-margin subscription services.
The 11.4 percentage point expansion in gross margin over eight quarters reflects a structural shift in revenue mix, with services now contributing disproportionately to profit. Operating margin, however, remains thin at 1.6%, suggesting that while the gross margin story is compelling, fixed costs and R&D investments still consume most of the incremental gross profit. Investors should monitor whether operating leverage can materialize as revenue scales, given the narrow 1.15% TTM operating margin.
ROIC Inflection Points to Efficiency Gains
ROIC swung from -16.9% in Q2 2024 to 4.9% in Q2 2026, as reported in the latest quarterly data, suggesting the capital base is now generating positive returns after a prolonged turnaround.
The dramatic improvement in ROIC, driven by both margin recovery and asset efficiency, indicates that the company is emerging from a period of heavy investment. However, the 4.9% ROIC remains below the cost of capital, implying that value creation is still nascent. The volatility in ROIC—from 18.3% in Q4 2025 to 1.1% in Q3 2025—warrants caution, as it suggests the metric is sensitive to quarterly working capital swings and seasonality.
Working Capital Cycle Lengthens Slightly
Cash conversion cycle extended to 35 days in Q2 2026 from 12 days in Q2 2024, based on reported figures, reflecting slower inventory turnover and a modest rise in receivables.
The lengthening CCC is primarily due to DIO increasing from 42 to 52 days, which may indicate inventory build-up ahead of anticipated demand or supply chain normalization. DSO improved to 34 days from 38 days a year earlier, suggesting better collections discipline. The extension in DPO from 63 to 51 days indicates Arlo is paying suppliers faster, which could be a strategic choice to secure component supply but reduces free cash flow in the near term.
Minimal Debt Provides Strategic Flexibility
Debt-to-equity fell to 0.04 in Q2 2026 from 0.20 in Q2 2024, as per the balance sheet, leaving Arlo with a nearly debt-free capital structure and ample optionality.
With total debt of only $5.7 million against $101.4 million in cash, Arlo's net cash position is robust, and interest coverage is effectively infinite. This low leverage is a competitive advantage, allowing the company to weather consumer spending downturns or invest aggressively in R&D and acquisitions without refinancing risk. The recent goodwill increase to $47.9 million from an acquisition suggests management is deploying this balance sheet strength, but investors should monitor integration risks.
Liquidity Buffer Remains Solid
Current ratio stands at 1.40 with a quick ratio of 1.15 in Q2 2026, according to the latest balance sheet, indicating adequate short-term coverage despite inventory build-up.
The liquidity position is comfortable, with cash and receivables covering current liabilities. However, the quick ratio's reliance on receivables (DSO of 34 days) means a sudden deterioration in collections could pressure liquidity. The inventory build-up (DIO at 52 days) is a watch item, as obsolescence risk in consumer electronics could erode the current ratio if demand softens. Overall, the balance sheet appears resilient to near-term shocks.
P/E Misleads on Earnings Power
The trailing P/E of 102.36, based on current market data, overstates valuation because it reflects near-zero GAAP earnings, whereas forward P/E of 17.06 better captures the earnings inflection.
The most commonly misapplied ratio for Arlo is the trailing P/E, which is distorted by the company's recent transition from losses to profitability. With TTM net margin of only 2.82%, the trailing P/E is not meaningful for valuation. Instead, investors should focus on EV/EBITDA (141.64 trailing but 13.92 forward) or P/FCF (23.27), which better reflect the cash-generating potential of the subscription model. The forward multiples imply the market is pricing in significant earnings growth, which appears justified by the Q2 2026 beat and raised guidance, but the implied sequential revenue decline in the next quarter warrants monitoring.