11:24 AM EDT, 05/18/2026 (MT Newswires) -- Arlo Technologies'(ARLO) recurring revenue platform, expanding strategic partnerships and growing artificial intelligence capabilities position the company for long-term subscriber and revenue growth, Oppenheimer said in a report Monday.

The home security company has transformed from a "low-cost camera vendor"into a premium, subscription-first home security platform with strong long-term growth potential, the firm said.

Subscriptions and services accounted for 60% of its 2025 revenue at an 85% gross margin, while annual recurring revenue rose 28% to $330 million, according to the report.

The firm said that partnerships with ADT (ADT), Samsung and Comcast (CMCSA) provide a multi-year "subscriber growth"opportunity that is not fully reflected in Wall Street estimates.

Arlo's "independence"from major technology companies is a competitive advantage in the home security market, the firm said.

Oppenheimer initiated coverage of Arlo Technologies with an outperform rating and a $20 price target.

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