Forward-looking Statements This Quarterly Report on Form 10-Q (the “Quarterly Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995. Such statements are based upon current expectations that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, the words “believes,” “anticipates,” “plans,” “expects,” “intends,” “could,” “may,” “will,” and similar expressions are intended to identify forward-looking statements, including statements concerning our business and the expected performance characteristics, specifications, reliability, market acceptance, market growth, specific uses, user feedback, and market position of our products and technology. Our actual results and the timing of certain events may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such a discrepancy include, but are not limited to, those discussed in “Part II—Item 1A—Risk Factors” and “Liquidity and Capital Resources” below. All forward-looking statements in this document are based on information available to us as of the date hereof, such information may be limited or incomplete, and we assume no obligation to update any such forward-looking statements. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and the accompanying notes contained in this Quarterly Report. Unless expressly stated or the context otherwise requires, the terms “we,” “our,” “us,” the “Company,” and “Arlo” refer to Arlo Technologies, Inc. and our subsidiaries. Business and Executive Overview Arlo is transforming the ways in which people can protect everything that matters to them with advanced home, business, and personal security services that combine a globally scaled cloud platform, advanced monitoring and analytics capabilities, and award-winning app-controlled devices to create a personalized security ecosystem. Arlo’s deep expertise in cloud services, cutting-edge AI and computer vision analytics, wireless connectivity and intuitive user experience design delivers seamless, smart home security for Arlo users that is easy to setup and engage with every day. Our highly secure, cloud-based platform provides users with visibility, insight and a powerful means to help protect and connect in real-time with the people and things that matter most, from any location with a Wi-Fi or a cellular connection – all rooted in a commitment to safeguard privacy for our users and their personal data. Since the launch of our first product in December 2014, we have shipped over 45.6 million smart security devices. As of June 28, 2026, the Arlo platform had approximately 13.6 million cumulative registered accounts across more than 100 countries around the world coupled with approximately 6.3 million cumulative paid accounts and annual recurring revenue (“ARR”) of $365.0 million. We conduct business across three geographic regions—(i) the Americas; (ii) Europe, Middle-East and Africa (“EMEA”); and (iii) Asia Pacific (“APAC”)—and we primarily generate revenue by selling paid subscription services, as well as devices through retail, wholesale distribution, strategic partners, security solution providers, and Arlo’s direct to consumer store. For the three months ended June 28, 2026 and June 29, 2025, we generated total revenue of $155.9 million and $129.4 million, respectively, and income from operations was $2.5 million and $1.9 million, respectively. For the six months ended June 28, 2026 and June 29, 2025, we generated total revenue of $306.3 million and $248.5 million, respectively, and income from operations was $10.0 million and $0.5 million, respectively. Our goal is to continue to develop innovative, world-class smart security solutions to expand and further monetize our current and future user and paid account bases. We believe that the growth of our business is dependent on many factors, including our ability to innovate and launch successful new products on a timely basis and grow our installed base, to increase subscription-based recurring revenue, to invest in channel and other strategic partnerships and to continue our global expansion. We expect to increase our investment in research and development going forward as we continue to 28 Table of Contents introduce new and innovative products and services to enhance the Arlo platform and compete for engineering talent. We also expect our sales and marketing expenses to increase in the future as we invest in marketing to drive demand for our products and services. Key Business Metrics In addition to the measures presented in our consolidated financial statements, we use the following key metrics to evaluate our business, measure our performance, develop financial forecasts and make strategic decisions. We believe these key business metrics provide useful information by offering the ability to make more meaningful period-to-period comparisons of our on-going operating results and a better understanding of how management plans and measures our underlying business. Our key business metrics may be calculated in a manner different from the same key business metrics used by other companies. We regularly review our processes for calculating these metrics, and from time to time we may discover a need to make adjustments to better reflect our business. We believe that any such adjustments are immaterial unless otherwise stated. As of June 28, 2026 % Change June 29, 2025 (In thousands, except percentage data) Cumulative registered accounts 13,569 20.8 % 11,237 Cumulative paid accounts 6,303 23.2 % 5,115 Annual recurring revenue (“ARR”) $ 364,959 15.6 % $ 315,655 Cumulative Registered Accounts. Registered accounts at the end of a particular period are defined as the number of unique registered accounts on our platforms. The number of registered accounts does not directly correspond to the number of users. A single account may be shared by multiple users (which we consider as one account) and a single user may have multiple accounts (which we consider as multiple accounts). Cumulative Paid Accounts. Paid accounts at the end of a particular period are defined as any account worldwide where a subscription-based or otherwise recurring service fee was collected by Arlo (either directly from a user or from a partner). Annual Recurring Revenue. We believe ARR enables measurement of our business initiatives and serves as an indicator of our future growth. ARR represents and is defined as the annualized paid subscriptions and services revenue we expect to recognize from subscription contracts, as calculated by taking the average paid subscriptions and services revenue per paid account of the reporting period multiplied by the number of paid accounts at the end of the reporting period. ARR is a performance metric and should be viewed independently of revenue and deferred revenue, and is not intended to be a substitute for, or combined with, any of these items. Impact of Global Geopolitical, Economic and Business Conditions The U.S. government has implemented tariff measures affecting a broad range of imported materials, and these measures have been subject to change. While we are actively monitoring the changes in global trade policy and the effects they may have on our business and broader macroeconomic environment, we do not expect them to have a material detrimental impact on our business operations in the near term. However, given the uncertainty surrounding global markets as a result of the fluid U.S. tariff policy, we do not have clarity at this point over the potential medium to long term impacts our business may face. We continue to monitor and evaluate these developments and assess their potential impact on our business, financial condition, and results of operations. The availability of certain goods could be affected if foreign suppliers choose to limit their exposure to U.S. markets in response to unfavorable trade policies, which could negatively impact our suppliers’ ability to deliver materials or manufacture equipment for us and, therefore, delay or impede our product deliveries. Furthermore, rising inflation, slower economic growth and increases in unemployment that may result from global trade disruptions could further deflate consumer demand and impact the demand for our products. 29 Table of Contents Results of Operations We operate as one operating and reportable segment. The following table sets forth, for the periods presented, the unaudited condensed consolidated statements of operations and comprehensive income (loss) data, which we derived from the accompanying unaudited condensed consolidated financial statements: Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands, except percentage data) Revenue: Subscriptions and services $ 93,047 59.7 % $ 78,175 60.4 % $ 183,146 59.8 % $ 147,024 59.2 % Products 62,890 40.3 % 51,230 39.6 % 123,173 40.2 % 101,447 40.8 % Total revenue 155,937 100.0 % 129,405 100.0 % 306,319 100.0 % 248,471 100.0 % Cost of revenue: Subscriptions and services 17,582 11.3 % 12,235 9.5 % 32,264 10.5 % 24,500 9.9 % Products 63,139 40.5 % 59,095 45.6 % 126,171 41.2 % 113,169 45.5 % Total cost of revenue 80,721 51.8 % 71,330 55.1 % 158,435 51.7 % 137,669 55.4 % Gross profit 75,216 48.2 % 58,075 44.9 % 147,884 48.3 % 110,802 44.6 % Operating expenses: Research and development 23,658 15.2 % 18,489 14.3 % 46,472 15.2 % 34,654 13.9 % Sales and marketing 24,085 15.4 % 21,103 16.3 % 46,739 15.3 % 41,306 16.6 % General and administrative 23,128 14.8 % 16,334 12.6 % 41,335 13.5 % 34,119 13.7 % Other operating expense 1,889 1.2 % 216 0.2 % 3,324 1.0 % 241 0.2 % Total operating expenses 72,760 46.6 % 56,142 43.4 % 137,870 45.0 % 110,320 44.4 % Income from operations 2,456 1.6 % 1,933 1.5 % 10,014 3.3 % 482 0.2 % Other income, net: Gain on sale of long-term investment — — % — — % 6,423 2.1 % — — % Interest income, net 979 0.6 % 1,344 1.0 % 2,220 0.7 % 2,660 1.1 % Other income (expense), net 25 — % (407) (0.3) % 95 — % (605) (0.3) % Total other income, net 1,004 0.6 % 937 0.7 % 8,738 2.8 % 2,055 0.8 % Income before income taxes 3,460 2.2 % 2,870 2.2 % 18,752 6.1 % 2,537 1.0 % Provision (benefit) for income taxes 432 0.3 % (254) (0.2) % 847 0.3 % 248 0.1 % Net income $ 3,028 1.9 % $ 3,124 2.4 % $ 17,905 5.8 % $ 2,289 0.9 % Revenue Our gross revenue consists primarily of paid subscriptions and services revenue and sales of devices. Our paid subscription services are billed in advance of the start of the annual or monthly subscription and revenue is recognized ratably over the subscription period. We generally recognize revenue from product sales at the time the product is shipped and transfer of control from us to the customer occurs. Our revenue consists of gross revenue, less customer rebates and other channel sales incentives, allowances for estimated sales returns, price protection, and net changes in deferred revenue. A significant portion of our marketing expenditure is with customers and is deemed to be a reduction of revenue under authoritative guidance for revenue recognition. 30 Table of Contents We conduct business across three geographic regions—(i) the Americas; (ii) EMEA; and (iii) APAC—and generally base revenue by geographic region on the bill-to location of the customer for device location for subscriptions and services sales and device sales. Three Months Ended Six Months Ended June 28, 2026 % Change June 29, 2025 June 28, 2026 % Change June 29, 2025 (In thousands, except percentage data) Americas $ 88,969 8.6 % $ 81,902 $ 172,955 13.8 % $ 151,999 Percentage of revenue 57.1 % 63.3 % 56.5 % 61.2 % EMEA 61,479 41.9 % 43,320 122,144 41.7 % 86,215 Percentage of revenue 39.4 % 33.5 % 39.9 % 34.7 % APAC 5,489 31.2 % 4,183 11,220 9.4 % 10,257 Percentage of revenue 3.5 % 3.2 % 3.6 % 4.1 % Total revenue $ 155,937 20.5 % $ 129,405 $ 306,319 23.3 % $ 248,471 Revenue by classification is as follows: Three Months Ended Six Months Ended June 28, 2026 % Change June 29, 2025 June 28, 2026 % Change June 29, 2025 (In thousands, except percentage data) Revenue: Subscriptions and services $ 93,047 19.0 % $ 78,175 $ 183,146 24.6 % $ 147,024 Products 62,890 22.8 % 51,230 123,173 21.4 % 101,447 Total revenue $ 155,937 20.5 % $ 129,405 $ 306,319 23.3 % $ 248,471 Subscriptions and services revenue increased by $14.9 million or 19.0%, and $36.1 million or 24.6%, for the three and six months ended June 28, 2026, respectively, compared with the prior year periods. The increases were primarily driven by a 23.2% increase in cumulative paid accounts and the growth in average revenue per user (“ARPU”) on retail and direct paid subscription services, reflecting a higher volume of annual plan renewals. Products revenue increased by $11.7 million or 22.8%, and $21.7 million or 21.4%, for the three and six months ended June 28, 2026, respectively, compared with the prior year periods. The increases were primarily driven by higher product shipments to our largest customer in EMEA, reflecting stronger customer demand, as well as lower sales incentives and sales returns in retail channels, both of which are recorded as reductions of revenue. These increases were partially offset by lower average selling prices (“ASPs”) for our products sold through retail channels as we continued promotional activities to stimulate household acquisition and subscriber growth. Cost of Revenue Cost of revenue consists of both subscriptions and services cost as well as products cost. Subscriptions and services cost consists of costs attributable to the provision and maintenance of our cloud-based platform, including personnel expense, data storage, security and computing, IT and facilities overhead, and amortization of software development. Products cost primarily consists of the cost of finished products from our third-party manufacturers and overhead costs, including personnel expense for operations staff, purchasing, product planning, inventory control, warehousing and distribution logistics, third-party software licensing fees, inbound freight, duty and tariff costs, IT and facilities overhead, warranty costs associated with returned goods, write-downs for excess and obsolete inventory and excess components, and royalties to third parties. 31 Table of Contents Our cost of revenue as a percentage of revenue can vary based upon a number of factors, including those that may affect our revenue set forth above and factors that may affect our cost of revenue, including, without limitation, product mix, sales channel mix, registered accounts’ acceptance of paid subscription service offerings, and changes in our cost of goods sold due to fluctuations in prices paid for components, net of vendor rebates, cloud platform costs, warranty and overhead costs, inbound freight, duty and tariff costs, and charges for excess or obsolete inventory. We outsource our manufacturing, warehousing, and distribution logistics. We also outsource certain components of the required infrastructure to support our cloud-based back-end IT infrastructure. We believe this outsourcing strategy generally allows us to better manage our products cost and subscriptions and services cost and gross margin and allows us to adapt to changing market dynamics and supply chain constraints. However, with respect to manufacturing that we have outsourced to ex-U.S. manufacturers, our ability to manage product costs through this strategy has been, and may continue to be, negatively impacted by tariffs. Three Months Ended Six Months Ended June 28, 2026 % Change June 29, 2025 June 28, 2026 % Change June 29, 2025 (In thousands, except percentage data) Cost of revenue: Subscriptions and services $ 17,582 43.7 % $ 12,235 $ 32,264 31.7 % $ 24,500 Products 63,139 6.8 % 59,095 126,171 11.5 % 113,169 Total cost of revenue $ 80,721 13.2 % $ 71,330 $ 158,435 15.1 % $ 137,669 Subscriptions and services cost of revenue increased by 43.7% and 31.7% for the three and six months ended June 28, 2026, respectively, compared with the prior year periods. The increases were primarily driven by growth in subscriptions and services revenue and continued investments in platform services to support subscription-based business growth and improve customer experience. Products cost of revenue increased by 6.8% and 11.5% for the three and six months ended June 28, 2026, respectively, compared with the prior year periods, The increases were primarily driven by higher product shipments and partially offset by an $8.0 million tariff refund recorded as a reduction of cost of revenue and coupled with lower freight-in costs resulting from increased use of ocean freight. For the six months ended June 28, 2026, the increase was also partially offset by lower product warranty and inventory reserves. Gross Profit Three Months Ended Six Months Ended June 28, 2026 % Change June 29, 2025 June 28, 2026 % Change June 29, 2025 (In thousands, except percentage data) Gross profit: Subscriptions and services $ 75,465 14.4 % $ 65,940 $ 150,882 23.1 % $ 122,524 Products (249) ** (7,865) (2,998) ** (11,722) Total gross profit $ 75,216 29.5 % $ 58,075 $ 147,884 33.5 % $ 110,802 Gross margin percentage: Subscriptions and services 81.1 % 84.3 % 82.4 % 83.3 % Products (0.4) % (15.4) % (2.4) % (11.6) % Total gross margin 48.2 % 44.9 % 48.3 % 44.6 % _________________________ **Percentage change not meaningful. Subscriptions and services gross profit increased by $9.5 million and $28.4 million for the three and six months ended June 28, 2026, respectively, compared with the prior year periods. The increases were primarily driven by growth in 32 Table of Contents subscriptions and services revenue, partially offset by higher subscriptions and services cost of revenue as we continued investing in platform services to support subscription-based business growth and improve customer experience. Products gross profit increased by $7.6 million and $8.7 million for the three and six months ended June 28, 2026, respectively, compared with the prior year periods. The increases were primarily driven by the $8.0 million tariff refund recorded as a reduction of cost of revenue, lower freight-in costs resulting from increased use of ocean freight, and lower product warranty and inventory reserves. These increases were partially offset by lower ASPs for our products sold through retail channels as we continued promotional activities to stimulate household acquisition and subscriber growth. Operating Expenses Research and Development Research and development expense consists primarily of personnel-related expense, safety, security, regulatory services and testing, other research and development consulting fees, and allocated IT and facilities overhead. Generally, we recognize research and development expenses as they are incurred, exclusive of capitalized software development costs. We have invested in and expanded our research and development organization to enhance our ability to introduce innovative products and services. We expect research and development expense to increase in absolute dollars as we develop new product and service offerings and compete for engineering talent. We believe that innovation and technological leadership are critical to our future success, and we are committed to continuing a significant level of research and development to develop new technologies, products and services, including our hardware devices, cloud-based software, AI-based algorithms, and machine learning capabilities. Three Months Ended Six Months Ended June 28, 2026 % Change June 29, 2025 June 28, 2026 % Change June 29, 2025 (In thousands, except percentage data) Research and development expense $ 23,658 28.0 % $ 18,489 $ 46,472 34.1 % $ 34,654 Research and development expense increased by $5.2 million for the three months ended June 28, 2026 compared to the prior year period, primarily due to increases of $2.2 million in stock-based compensation and $1.0 million in payroll-related compensation, driven by headcount growth, as well as a $1.6 million increase in outside professional services as we continued to invest in platform services to support our subscription business. Research and development expense increased by $11.8 million for the six months ended June 28, 2026 compared to the prior year period, primarily due to increases of $5.5 million in stock-based compensation and $3.5 million in payroll-related compensation, driven by headcount growth, as well as a $2.3 million increase in outside professional services as we continued to invest in platform services to support our subscription business. Sales and Marketing Sales and marketing expense consists primarily of personnel expense for sales and marketing staff, technical support expense, advertising, trade shows, media and placement, corporate communications and other marketing expense, product marketing expense, allocated IT and facilities overhead, outbound freight costs, and credit card processing fees. We expect our sales and marketing expense to increase in the future as we invest in marketing to drive demand for our subscriptions and services and devices. 33 Table of Contents Three Months Ended Six Months Ended June 28, 2026 % Change June 29, 2025 June 28, 2026 % Change June 29, 2025 (In thousands, except percentage data) Sales and marketing expense $ 24,085 14.1 % $ 21,103 $ 46,739 13.2 % $ 41,306 Sales and marketing expense increased by $3.0 million for the three months ended June 28, 2026 compared to the prior year period, primarily due to increases of $0.8 million in stock-based compensation and $0.7 million in payroll-related compensation, driven by headcount growth, as well as increases of $0.6 million in marketing expenditures and $0.4 million in professional services as we continued to invest in customer experience improvements. Sales and marketing expense increased by $5.4 million for the six months ended June 28, 2026 compared to the prior year period, primarily due to increases of $1.5 million in marketing expenditures; $1.2 million in credit card and in-app processing fees, driven by an increase in paid accounts and focused efforts to improve the customer app experience; $0.9 million in stock-based compensation and $0.7 million in payroll-related compensation, driven by headcount growth; and $0.7 million in professional services as we continued to invest in customer experience improvements. General and Administrative General and administrative expense consists primarily of personnel-related expense for certain executives, finance and accounting, investor relations, human resources, legal, information technology, professional fees, allocated IT and facilities overhead, strategic initiatives expense, and other general corporate expense. We expect our general and administrative expense to fluctuate as a percentage of our revenue in future periods based on fluctuations in our revenue and the timing of such expense. Three Months Ended Six Months Ended June 28, 2026 % Change June 29, 2025 June 28, 2026 % Change June 29, 2025 (In thousands, except percentage data) General and administrative expense $ 23,128 41.6 % $ 16,334 $ 41,335 21.1 % $ 34,119 General and administrative expense increased by $6.8 million for the three months ended June 28, 2026 compared to the prior year period, primarily due to increases of $3.4 million in stock-based compensation and $0.8 million in payroll-related compensation, driven by headcount growth, as well as a $2.4 million increase in legal professional services. General and administrative expense increased by $7.2 million for the six months ended June 28, 2026 compared to the prior year period, primarily due to increases of $2.5 million in stock-based compensation and $1.0 million in payroll-related compensation, driven by headcount growth, as well as a $4.4 million increase in legal professional services. The increase was partially offset by a $0.5 million decrease in IT and facilities overhead related to allocations associated with corporate infrastructure. Other operating expenses Other operating expenses primarily include acquisition-related expense and workforce reduction costs. 34 Table of Contents Other Income, Net Three Months Ended Six Months Ended June 28, 2026 % Change June 29, 2025 June 28, 2026 % Change June 29, 2025 (In thousands, except percentage data) Gain on sale of long-term investment $ — ** $ — $ 6,423 ** $ — Interest income, net $ 979 (27.2) % $ 1,344 $ 2,220 (16.5) % $ 2,660 Other income (expense), net $ 25 ** $ (407) $ 95 ** $ (605) ** Percentage change not meaningful. During the first fiscal quarter of 2026, we sold our strategic long-term investment. Upon completion of the sale, we received total cash proceeds of $18.9 million and recognized a realized gain of $6.4 million, representing the excess of proceeds received over the carrying value of the investment. Interest income, net slightly decreased for the three and six months ended June 28, 2026 compared to the prior year periods, primarily due to the decline in interest rates. Provision (Benefit) for Income Taxes Three Months Ended Six Months Ended June 28, 2026 % Change June 29, 2025 June 28, 2026 % Change June 29, 2025 (In thousands, except percentage data) Provision (benefit) for income taxes $ 432 (270.1) % $ (254) $ 847 241.5 % $ 248 Effective tax rate 12.5 % (8.9) % 4.5 % 9.8 % Provision (benefit) for income taxes increased for the three and six months ended June 28, 2026 compared to the prior year periods, primarily due to higher pre-tax income in the current periods and the prior year three-month period’s income tax benefit. The effective tax rate for the six months ended June 28, 2026 was lower than the U.S. federal income tax rate primarily due to earnings generated in lower-tax foreign jurisdictions and the continued impact of valuation allowances recorded against substantially all of our U.S. deferred tax assets and certain foreign tax attributes. Although we have recently generated cumulative pre-tax income, we determined that we have not yet demonstrated a sustained level of profitability sufficient to support realization of the deferred tax assets. We also considered forecasted future taxable income; however, such projections are inherently uncertain and do not outweigh the available negative evidence. Based on the totality of evidence, we concluded that it is not more-likely-than-not that the deferred tax assets will be realized. Accordingly, a full valuation allowance has been maintained as of June 28, 2026. There is a reasonable possibility that within the next few quarters, sufficient positive evidence will become available to reach a conclusion that all or a significant portion of the valuation allowance against our U.S. net deferred tax assets would no longer be required. 35 Table of Contents Liquidity and Capital Resources As of June 28, 2026, our cash and cash equivalents and short-term investments totaled $141.1 million and our unused borrowing capacity was $45.0 million based on the terms and conditions of the Credit Agreement. The proceeds of the borrowings under this credit facility may be used for working capital and general corporate purposes. We have a history of losses and may incur operating and net losses in the future. As of June 28, 2026, our accumulated deficit was $365.1 million. Historically, we have funded our principal business activities through cash flows generated from operations and available cash on hand. Material Cash Requirements We believe that our existing sources of liquidity will be sufficient to meet our anticipated cash requirements for at least the next 12 months and beyond. However, in the future we may require or desire additional funds to support our operating expenses and capital requirements. To the extent that current and anticipated future sources of liquidity are insufficient, we may seek to raise additional funds through public or private equity. We have no commitments to obtain such additional financing and cannot provide assurance that additional financing will be available at all or, if available, that such financing would be obtainable on terms favorable to us and would not be dilutive. Our future liquidity and cash requirements may vary from those currently planned and will depend on numerous factors, including the introduction of new products, the growth in our subscriptions and services revenue, the ability to increase our gross margin dollars, as well as cost optimization initiatives and controls over our operating expenditures. As we grow our installed base and related cost structure, there will be a need for additional working capital, hence, we may increase our product and subscription rates in the future. Operating leases and contractual commitments Our operating lease obligations mostly include offices, equipment, and distribution centers. Our contractual commitments are primarily inventory-related purchase obligations with suppliers. Legal contingencies We are, and from time to time, we may become involved in disputes, litigation, and other legal actions in the ordinary course of business. At each reporting period, we evaluate whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. Significant judgment is required to determine both the probability and the estimated amount of loss. In such cases, we accrue for the amount or, if a range, we accrue the low end of the range, only if there is not a better estimate than any other amount within the range, as litigation reserves in other operating expense on the unaudited condensed consolidated statements of operations and comprehensive income (loss). Refer to Note 8. Commitments and Contingencies in the Notes to Unaudited Condensed Consolidated Financial Statements in Item 1 of Part I of this Quarterly Report for further information about our operating leases, purchase obligations, and legal contingencies. Stock repurchase program On February 3, 2026, our Board of Directors authorized a stock repurchase program of up to an aggregate of $50.0 million of shares, which commenced in March 2026 and is expected to continue through December 31, 2027 unless extended or shortened by the Board of Directors. During the six months ended June 28, 2026, we repurchased and subsequently retired 2.3 million shares of Arlo common stock for an aggregate repurchase of $29.9 million. As of June 28, 2026, $20.1 million remained available and authorized for future repurchases. 36 Table of Contents Cash Flow The following table presents our cash flows for the periods presented. Six Months Ended June 28, 2026 June 29, 2025 (In thousands) Net cash provided by operating activities $ 39,272 $ 39,749 Net cash used in investing activities (54,089) (36,668) Net cash used in financing activities (28,321) (13,869) Net cash increase $ (43,138) $ (10,788) Operating activities Net cash provided by operating activities decreased by $0.5 million for the six months ended June 28, 2026 compared with the prior year period. The decrease was primarily driven by improved profitability offset by unfavorable working capital movements, including higher accounts receivable balances resulting from strong product sales and higher inventory purchases, which were partially offset by an increase in accounts payable balances, primarily due to the timing of payments. Investing activities Net cash used in investing activities increased by $17.4 million for the six months ended June 28, 2026 compared with the prior year period. The increase was primarily attributable to cash paid for business acquisitions and lower net proceeds from available-for-sale securities, partially offset by proceeds from the sale of a strategic investment. Financing activities Net cash used in financing activities increased by $14.5 million for the six months ended June 28, 2026 compared with the prior year period, primarily due to higher repurchases of common stock. Critical Accounting Policies and Estimates For a complete description of what we believe to be the critical accounting policies and estimates used in the preparation of our unaudited condensed consolidated financial statements, refer to our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes to our critical accounting policies and estimates during the six months ended June 28, 2026, other than as discussed in Note 2. Significant Accounting Policies and Recent Accounting Pronouncements, in the Notes to Unaudited Condensed Consolidated Financial Statements in Item 1 of Part I of this Quarterly Report. 37 Table of Contents