Recent News
On April 16, 2026 Arlo announced completion of its acquisition of Aloe Care Health, adding an AI-powered medical-alert and fall-prevention platform to accelerate aging-in-place and wellness services; the transaction included $15.0 million cash at close plus contingent consideration. On March 3, 2026 the board authorized a share repurchase program of up to $50 million through year-end 2027. On March 23, 2026 Arlo updated its Early Warning System with a built-in Emergency SOS button for subscribers, expanding emergency-response capabilities across its subscription tiers.
Technical Analysis
Directional indicators show low conviction: ADX at 14.13 signals no strong trend, limiting the reliability of directional readings for near-term directional moves.
DI+ at 27.59 with a decreasing trend reads as bearish directional pressure, while DI- at 24.31 with a peak-and-reversal signals recent bullish counter-pressure; ADX below 20 implies these forces lack sustained strength and favor range-bound action relative to valuation.
MACD sits at -0.32 and trends downward beneath the signal line (-0.14), indicating bearish momentum and no bullish MACD cross to drive a clear short-term reversal.
MRO at 5.15 and decreasing shows price sits modestly above internal target levels, implying a bias toward downward mean-reversion rather than aggressive upside from current levels.
RSI at 47.92 and falling shows momentum below overbought levels and tilts mildly toward sellers; price closing at $13.05 under the 20-day ($13.70), 50-day ($14.03) and 200-day ($15.03) averages reinforces short-to-intermediate bearish pressure versus longer-term averages.
Bollinger band placement (lower ~ $12.54 / upper ~ $14.86) and a lower-than-10-day-average volume profile suggest consolidation with limited follow-through risk until directional indicators regain conviction; this technical posture tempers the near-term realization of any valuation-driven upside.
Fundamental Analysis
Earnings and cash-flow: EPS of $0.28 beat the $0.19 estimate by $0.09, a 47.37% surprise, reflecting stronger-than-expected quarterly profitability. Free cash flow totaled $25,444,000 with free cash flow yield at 1.66% and free cash flow growth up 41.83% QoQ but down 89.61% YoY; operating cash flow ended the period at $27,863,000 and operating cash flow ratio shows limited conversion relative to revenue.
Profitability and margins: Operating (EBIT) margin stands at 5.03% with EBIT of $7,558,000. EBIT margin improved QoQ by +50.57% but sits down YoY by -5.12% compared with the prior year. Relative to peers, EBIT margin of 5.03% lies well below the industry peer mean of 31.79% and industry peer median of 32.28%, though it sits above the industry peer low of -2.64% within the industry peer range.
Growth and efficiency: Revenue totaled $150,382,000 with QoQ revenue growth of +4.07% but revenue down YoY by -4.12%. Asset turnover of 0.45 improved QoQ and YoY, while receivables turnover accelerated QoQ by 34.85% and inventory turnover shows marginal improvement.
Balance sheet and capital allocation: Cash and short-term investments total $167,498,000 against total debt of $6,230,000, yielding a cash-rich profile and a cash ratio of 0.92. Debt-to-equity sits at 3.91%, and interest coverage runs very high, supporting the $50 million repurchase authorization disclosed in March 2026. Book value per share stands at $1.46583 with a P/B of 9.60, slightly below the industry peer mean P/B of 9.89 and below the peer median of 10.79.
Valuation note: WMDST values the stock as under-valued. Current multiples show a trailing P/E of 50.28 and forward P/E of 57.46, which reflect market expectations priced into earnings; the company’s cash-rich position and recent acquisition expand serviceable markets and inform WMDST’s valuation stance.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-05-07 |
| NEXT REPORT DATE: | 2026-08-06 |
| CASH FLOW | Begin Period Cash Flow | $ 146.4 M |
| Operating Cash Flow | $ 27.9 M | |
| Capital Expenditures | $ -2.42 M | |
| Change In Working Capital | $ -3.15 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 6.2 M | |
| End Period Cash Flow | $ 152.6 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 150.4 M | |
| Forward Revenue | $ 67.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 77.7 M | |
| Depreciation | $ 1.7 M | |
| Depreciation and Amortization | $ 1.7 M | |
| Research and Development | $ 22.8 M | |
| Total Operating Expenses | $ 142.8 M | |
| PROFITABILITY | ||
| Gross Profit | $ 72.7 M | |
| EBITDA | $ 9.3 M | |
| EBIT | $ 7.6 M | |
| Operating Income | $ 7.6 M | |
| Interest Income | $ 1.2 M | |
| Interest Expense | — | |
| Net Interest Income | $ 1.2 M | |
| Income Before Tax | $ 15.3 M | |
| Tax Provision | $ 415.0 K | |
| Tax Rate | 2.714 % | |
| Net Income | $ 14.9 M | |
| Net Income From Continuing Operations | $ 14.9 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.19 | |
| EPS Actual | $ 0.28 | |
| EPS Difference | $ 0.09 | |
| EPS Surprise | 47.368 % | |
| Forward EPS | $ 0.25 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 360.2 M | |
| Intangible Assets | $ 58.0 M | |
| Net Tangible Assets | $ 101.4 M | |
| Total Current Assets | $ 275.7 M | |
| Cash and Short-Term Investments | $ 167.5 M | |
| Cash | $ 152.6 M | |
| Net Receivables | $ 52.2 M | |
| Inventory | $ 44.0 M | |
| Long-Term Investments | $ 3.6 M | |
| LIABILITIES | ||
| Accounts Payable | $ 40.2 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 181.7 M | |
| Net Debt | — | |
| Total Debt | $ 6.2 M | |
| Total Liabilities | $ 200.8 M | |
| EQUITY | ||
| Total Equity | $ 159.4 M | |
| Retained Earnings | $ -368.16 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 1.47 | |
| Shares Outstanding | 108.745 M | |
| Revenue Per-Share | $ 1.38 | |
| VALUATION | Market Capitalization | $ 1.5 B |
| Enterprise Value | $ 1.4 B | |
| Enterprise Multiple | 147.996 | |
| Enterprise Multiple QoQ | -27.653 % | |
| Enterprise Multiple YoY | -109.878 % | |
| Enterprise Multiple IPRWA | high: 152.08 ARLO: 147.996 median: 98.241 mean: 95.915 low: -4.023 |
|
| EV/R | 9.108 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.26 | |
| Asset To Liability | 1.794 | |
| Debt To Capital | 0.038 | |
| Debt To Assets | 0.017 | |
| Debt To Assets QoQ | -20.313 % | |
| Debt To Assets YoY | -70.588 % | |
| Debt To Assets IPRWA | high: 0.449 median: 0.228 mean: 0.224 ARLO: 0.017 low: 0.007 |
|
| Debt To Equity | 0.039 | |
| Debt To Equity QoQ | -25.915 % | |
| Debt To Equity YoY | -76.84 % | |
| Debt To Equity IPRWA | high: 1.162 median: 0.795 mean: 0.774 ARLO: 0.039 low: 0.012 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 9.604 | |
| Price To Book QoQ | -12.282 % | |
| Price To Book YoY | -7.004 % | |
| Price To Book IPRWA | high: 16.5 median: 10.787 mean: 9.886 ARLO: 9.604 low: 0.762 |
|
| Price To Earnings (P/E) | 50.28 | |
| Price To Earnings QoQ | -16.998 % | |
| Price To Earnings YoY | -27.02 % | |
| Price To Earnings IPRWA | high: 130.487 mean: 126.682 median: 106.014 ARLO: 50.28 low: -4.05 |
|
| PE/G Ratio | 1.844 | |
| Price To Sales (P/S) | 10.181 | |
| Price To Sales QoQ | 2.767 % | |
| Price To Sales YoY | 13.541 % | |
| Price To Sales IPRWA | high: 34.601 median: 34.601 mean: 34.02 ARLO: 10.181 low: 0.123 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 57.464 | |
| Forward PE/G | 2.107 | |
| Forward P/S | 23.213 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 9.367 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.448 | |
| Asset Turnover Ratio QoQ | 4.95 % | |
| Asset Turnover Ratio YoY | 12.035 % | |
| Asset Turnover Ratio IPRWA | high: 0.495 ARLO: 0.448 median: 0.296 mean: 0.295 low: 0.007 |
|
| Receivables Turnover | 3.275 | |
| Receivables Turnover Ratio QoQ | 34.85 % | |
| Receivables Turnover Ratio YoY | 42.18 % | |
| Receivables Turnover Ratio IPRWA | ARLO: 3.275 high: 3.165 median: 3.165 mean: 3.1 low: 1.055 |
|
| Inventory Turnover | 1.825 | |
| Inventory Turnover Ratio QoQ | 3.071 % | |
| Inventory Turnover Ratio YoY | 3.455 % | |
| Inventory Turnover Ratio IPRWA | high: 4.027 ARLO: 1.825 mean: 1.594 median: 1.228 low: 0.64 |
|
| Days Sales Outstanding (DSO) | 27.864 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 29.148 | |
| Cash Conversion Cycle Days QoQ | 60.988 % | |
| Cash Conversion Cycle Days YoY | 70.307 % | |
| Cash Conversion Cycle Days IPRWA | high: 102.84 ARLO: 29.148 mean: -38.535 median: -41.765 low: -211.79 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.6 | |
| CapEx To Revenue | -0.016 | |
| CapEx To Depreciation | -1.425 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 159.4 M | |
| Net Invested Capital | $ 159.4 M | |
| Invested Capital | $ 159.4 M | |
| Net Tangible Assets | $ 101.4 M | |
| Net Working Capital | $ 94.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.922 | |
| Current Ratio | 1.517 | |
| Current Ratio QoQ | 0.376 % | |
| Current Ratio YoY | 6.768 % | |
| Current Ratio IPRWA | high: 2.72 ARLO: 1.517 mean: 1.091 median: 1.07 low: 0.759 |
|
| Quick Ratio | 1.275 | |
| Quick Ratio QoQ | 0.216 % | |
| Quick Ratio YoY | 4.387 % | |
| Quick Ratio IPRWA | high: 2.095 ARLO: 1.275 mean: 1.026 median: 1.02 low: 0.461 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.673 | |
| Cost Of Debt | 0.15 % | |
| Interest Coverage Ratio | 755.8 | |
| Interest Coverage Ratio QoQ | 60.229 % | |
| Interest Coverage Ratio YoY | -620.882 % | |
| Interest Coverage Ratio IPRWA | ARLO: 755.8 high: 429.371 mean: 107.248 median: 89.395 low: -58.186 |
|
| Operating Cash Flow Ratio | -0.007 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 49.989 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 15.986 % | |
| Revenue Growth | 6.43 % | |
| Revenue Growth QoQ | 407.498 % | |
| Revenue Growth YoY | -411.984 % | |
| Revenue Growth IPRWA | high: 10.607 % ARLO: 6.43 % mean: -21.414 % low: -22.658 % median: -22.658 % |
|
| Earnings Growth | 27.273 % | |
| Earnings Growth QoQ | -27.272 % | |
| Earnings Growth YoY | -45.454 % | |
| Earnings Growth IPRWA | high: 330.0 % ARLO: 27.273 % mean: -20.289 % median: -33.333 % low: -41.451 % |
|
| MARGINS | ||
| Gross Margin | 48.322 % | |
| Gross Margin QoQ | 4.187 % | |
| Gross Margin YoY | 9.118 % | |
| Gross Margin IPRWA | high: 69.892 % median: 49.271 % mean: 48.944 % ARLO: 48.322 % low: 7.296 % |
|
| EBIT Margin | 5.026 % | |
| EBIT Margin QoQ | 50.569 % | |
| EBIT Margin YoY | -512.305 % | |
| EBIT Margin IPRWA | high: 32.275 % median: 32.275 % mean: 31.787 % ARLO: 5.026 % low: -2.642 % |
|
| Return On Sales (ROS) | 5.026 % | |
| Return On Sales QoQ | 50.569 % | |
| Return On Sales YoY | -512.305 % | |
| Return On Sales IPRWA | high: 37.009 % median: 32.275 % mean: 31.912 % ARLO: 5.026 % low: -0.377 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 25.4 M | |
| Free Cash Flow Yield | 1.662 % | |
| Free Cash Flow Yield QoQ | 29.641 % | |
| Free Cash Flow Yield YoY | -36.902 % | |
| Free Cash Flow Yield IPRWA | high: 1.94 % ARLO: 1.662 % median: 0.695 % mean: 0.506 % low: -39.26 % |
|
| Free Cash Growth | 41.828 % | |
| Free Cash Growth QoQ | 112.11 % | |
| Free Cash Growth YoY | -89.606 % | |
| Free Cash Growth IPRWA | high: 283.168 % ARLO: 41.828 % mean: -44.151 % median: -48.148 % low: -189.674 % |
|
| Free Cash To Net Income | 1.71 | |
| Cash Flow Margin | -0.897 % | |
| Cash Flow To Earnings | -0.091 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 4.436 % | |
| Return On Assets QoQ | 154.504 % | |
| Return On Assets YoY | -1678.648 % | |
| Return On Assets IPRWA | high: 7.883 % median: 7.883 % mean: 7.76 % ARLO: 4.436 % low: -1.065 % |
|
| Return On Capital Employed (ROCE) | 4.234 % | |
| Return On Equity (ROE) | 0.093 | |
| Return On Equity QoQ | 106.986 % | |
| Return On Equity YoY | -1255.074 % | |
| Return On Equity IPRWA | high: 0.331 median: 0.278 mean: 0.271 ARLO: 0.093 low: -0.711 |
|
| DuPont ROE | 10.359 % | |
| Return On Invested Capital (ROIC) | 4.613 % | |
| Return On Invested Capital QoQ | 32.367 % | |
| Return On Invested Capital YoY | -515.96 % | |
| Return On Invested Capital IPRWA | high: 28.658 % mean: 15.637 % median: 15.484 % ARLO: 4.613 % low: -0.553 % |
|