Arlo makes smart home security cameras and sells subscriptions that unlock AI-powered features and monitoring services on those cameras. Arlo's camera lineup — ranging from entry-level Essential models to premium Ultra devices — are wireless, battery-powered units that homeowners and small businesses mount to monitor their property remotely via Arlo's mobile app. The cameras provide basic functionality on their own, but Arlo's core value proposition is its Arlo Secure subscription, which adds AI-driven object detection, cloud video storage, and professional monitoring where live agents can verify emergencies and coordinate with first responders. Arlo operates a "services-first" model where hardware functions as a customer acquisition tool and subscriptions drive virtually all profit. Arlo prices cameras aggressively — sometimes at negative product gross margins — to maximize household formation, then converts device buyers into paying subscribers. Service gross margins run around 85%, while subscriber churn of roughly 1.1%–1.3% per month implies the average subscriber stays for over seven years. Arlo sells cameras primarily through retail partners including Amazon, Best Buy, and Walmart, and through arlo.com. Verisure, the largest European home security company, is Arlo's exclusive European distribution partner. In the U.S., Arlo recently partnered with ADT, expected to contribute material subscription revenue starting in 2026. Arlo's growth strategy targets 10M paid accounts and $700M in annual recurring revenue, with roughly 60% of incremental growth expected to come from strategic B2B partnerships.