Arlo Technologies announced a new partnership with Samsung SmartThings that will embed Arlo’s Smart Security Platform directly into the SmartThings ecosystem, allowing users to access Arlo’s security services through the SmartThings app. The collaboration builds on last year’s AI‑powered object‑detection integration and adds deeper service functionality and new notification capabilities for SmartThings users.
The partnership does not disclose specific financial terms or a precise rollout schedule, but it is expected to launch new features in the coming months. By leveraging Samsung’s extensive consumer base, Arlo aims to accelerate subscription adoption and broaden its market reach, a key objective in its transition to a services‑first business model.
Arlo’s subscription business has been a major growth engine. The company surpassed 4 million paid accounts in July 2024 and 5 million by May 2025, generating over $275 million in annual recurring revenue (ARR). In Q3 2025, ARR accelerated to $323 million, up 34 % YoY, and subscription and services revenue accounted for 60 % of total revenue. This shift to higher‑margin recurring revenue is central to Arlo’s strategy to improve profitability and scale its AI‑driven platform.
In its Q3 2025 earnings, Arlo reported revenue of $139.53 million, up 1.3 % YoY, and earnings per share of $0.16, beating the consensus estimate of $0.15 by $0.01. The modest revenue gain was driven by a 60 % share of services revenue, which grew 14.7 % YoY to $64.15 million, and a 53 % share of hardware revenue that declined 10 % YoY. The EPS beat was largely attributable to strong subscription mix, cost control, and the high gross margin of the services segment, which reached 85 % and exceeded analyst expectations.
The partnership is strategically significant because it places Arlo’s platform inside Samsung’s dominant SmartThings ecosystem, giving the company access to millions of new potential customers and a streamlined path to subscription adoption. It also positions Arlo to capitalize on the broader trend toward integrated, AI‑powered smart‑home security solutions. While the company faces headwinds such as tariffs and competitive pressure in the hardware market, the partnership’s focus on services and AI capabilities provides a tailwind that supports continued growth in recurring revenue.
Matthew McRae, Arlo’s CEO, said the deeper integration “will power the next level of smart home security for SmartThings users,” highlighting the company’s confidence in its AI capabilities and subscription growth. Mark Benson, Head of SmartThings, added that the collaboration “lays the groundwork for new smart security services that will further enhance how users protect and manage their homes.”
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