Arlo's Board Approves $100 Million Buyback Through 2028, Saying Shares Are Undervalued
CEO Matthew McRae says the board and management see the stock as undervalued relative to the company's long-term value.
Arlo Technologies, which makes smart security cameras and video doorbells, said Tuesday its board approved a $100 million stock repurchase program that runs through the end of 2028. CEO Matthew McRae said the board and management believe the shares are undervalued.
Open-market buying, with no fixed pace
The board authorized purchases of up to an aggregate of $100 million of common stock, according to the press release attached to the 8-K. Arlo will buy on the open market, weighing the economic cost and prevailing conditions, including the relative trading prices and volumes of its shares.
The company expects the repurchases to follow Rule 10b-18, the SEC safe-harbor rule for buybacks. The program is expected to continue through December 31, 2028, unless the board extends or shortens it.
The company's own risk language notes that stock price volatility may inhibit the program, and that it may not realize the benefits of it.
McRae's case for the stock
McRae framed the program as a statement about value. "The authorization of a new stock repurchase program of this magnitude reflects our board and management’s belief that our shares are undervalued relative to the company’s long-term value," he said.
He added that the company will keep investing in "other pillars of our capital allocation plan."
A camera maker built on subscriptions
Arlo sells smart security cameras, video doorbells, floodlight cameras and home security systems, plus cloud subscription services such as Arlo Secure that add AI-based detection, video storage and professional monitoring. Its 10-K for 2025 says it sells through retailers including Amazon, Best Buy and Walmart, and that Verisure, its exclusive distributor in Europe, accounted for 32% of total revenue for the year ended December 31, 2025.
Outsourced manufacturers build its products. As of December 31, 2025, the company had approximately 376 full-time employees.
The authorization is capped at $100 million and runs to December 31, 2028 unless the board changes the schedule.
