Arlo Technologies, Inc.

ARLOdata completeness 75%10 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

Arlo Technologies, Inc. earns about -443% on invested capital, below its ~9% cost of capital, but has diluted owners by 33% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $7.04 and $7.53 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$435.1M1$490.4M2$491.2M3$510.9M3$529.3M3
Net income−$56M4−$56.6M5−$22M6−$30.5M6$14.9M6
Operating cash flow−$23.2M7−$46M8$38.3M9$51.3M9$78.7M9
Capital expenditure$2.27M10$2.01M11$2.85M11$2.69M11
Free cash flow (derived)−$25.5M7−$48M8$35.5M9$48.6M9
Total debt
Cash & equivalents$175.7M12$84M13$56.5M14$82M14$146.4M14
Diluted shares82.7M87.2M92.8M98.6M110.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$11.61
your share of equity
Profit it earned you last year
$1.35
Free cash flow it threw off
Debt you’d be carrying

10 shares is a claim on $11.61 of net worth that earned you $1.35 last year.

iii. Is this a good business?
Moat signal · return on invested capital
-443% avg · 5y
FY21 FY22 -1178%FY23 -29%FY24 -123%FY25

It earned about -443% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+33% shares · 5y

Share count is up 33% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $7.04 and $7.53 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$7.53
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$35.5M
DCF · Growth Exit 5Y
$7.04
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$35.5M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$1.91
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $7.04
The three cases
Bear0.0%$5.93
Base5.0%$7.04
Bull10.0%$8.37

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001736946-24-000012 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001736946-25-000014 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001736946-26-000031 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001736946-24-000012 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001736946-25-000014 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001736946-26-000031 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001736946-24-000012 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001736946-25-000014 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001736946-26-000031 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001736946-24-000012 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001736946-25-000014 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2021-12-31 · accession 0001736946-24-000012 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2022-12-31 · accession 0001736946-25-000014 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2023-12-31 · accession 0001736946-26-000031 (CashAndCashEquivalentsAtCarryingValue)