Is Arlo Technologies, Inc. (ARLO) Halal?

NYSE Industrials United States $1.4B
✓ HALAL
Confidence: 95/100
Arlo Technologies, Inc. (ARLO) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 1.2% against the AAOIFI threshold of 30%, Arlo Technologies, Inc. comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Building Products & Equipment), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 1.2%
/ 30%
10.2%
/ 30%
3.9%
/ 30%
1.09%
/ 5%
✓ HALAL
DJIM 1.2%
/ 33%
10.2%
/ 33%
3.9%
/ 33%
1.09%
/ 5%
✓ HALAL
MSCI 6.2%
/ 33%
50.8%
/ 33%
19.2%
/ 33%
1.09%
/ 5%
✗ NOT HALAL
S&P 1.2%
/ 33%
10.2%
/ 33%
3.9%
/ 33%
1.09%
/ 5%
✓ HALAL
FTSE 6.2%
/ 33%
50.8%
/ 33%
19.2%
/ 50%
1.09%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
96.1
Forward: 14.1
EPS
$0.14
P/B Ratio
11.1
EV/EBITDA
128.0
EV: $1.3B
Revenue
$529M
Growth: 16.2%
Beta
1.7
High volatility
Current Ratio
1.5

Profitability

Gross Margin 44.0%
Operating Margin 3.3%
Net Margin 2.8%
Return on Equity (ROE) 13.1%
Return on Assets (ROA) 1.2%

Cash Flow & Balance Sheet

Operating Cash Flow$79M
Free Cash Flow$67M
Total Debt$7M
Debt-to-Equity6.8
Current Ratio1.5
Total Assets$311M

Price & Trading

Last Close$14.22
50-Day MA$13.28
200-Day MA$15.52
Avg Volume1.4M
Beta1.7
52-Week Range
$7.84
$19.94

About Arlo Technologies, Inc. (ARLO)

CEO
Mr. Matthew Blake McRae
Employees
376
Sector
Industrials
Industry
Building Products & Equipment
Country
United States
Exchange
NYSE
Market Cap
$1.4B
Currency
USD

Arlo Technologies, Inc., together with its subsidiaries, provides cloud-based platform services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions. The company offers Arlo Essential Cameras and Doorbells delivers smart home protection, including automated privacy shield, 360-degree coverage, and 2K video resolution; Arlo Home Security System, an all-in-one multi-sensor that provides access to security experts for monitoring and responding to emergency situations; ARLO PRO 6, a pro series wireless security cameras; ARLO ULTRA 3, a 4K HDR video resolution, auto-zoom and tracking and an expansive 180-degree field of view camera; Arlo Go 2, a camera for monitoring remote areas, large properties, construction sites, vacation homes, boat or RV slips, and hard-to-access areas; and Arlo Floodlight Camera, a wire-free floodlight camera. It also provides security system accessories, charging accessories, and mounts. In addition, the company offers Arlo Secure subscriptions, including AI-powered recognition and detection; 2K secure plan and 4K secure plus plan cloud-based video recording; unlimited cameras; advanced object detection; smart interactive notifications; smoke and CO alarm detection; cloud-based activity zone; call a friend; and 24/7 priority support and professional monitoring services; Arlo Total Security, a subscription which provides 24/7 professional monitoring and security hardware; Arlo Safe, a personal safety app that offers one-touch emergency response, family safety, and crash detection and response services; and Arlo SmartCloud, a SaaS solution that delivers security cloud services for business. It sells its products through retailers, wholesale distributors, broadcast channels, wireless carriers, and security solution providers, as well as through its website. Arlo Technologies, Inc. was incorporated in 2018 and is headquartered in Carlsbad, California.

Purification Calculator

As a halal stock with 1.09% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Arlo Technologies, Inc. (ARLO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Arlo Technologies, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Arlo Technologies, Inc.'s debt ratio?

Arlo Technologies, Inc.'s debt ratio is 1.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 6.2%.

Does Arlo Technologies, Inc. require dividend purification?

Yes, Arlo Technologies, Inc. has an impermissible income ratio of 1.09%, which means 1.09% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Arlo Technologies, Inc.'s key financial metrics?

Arlo Technologies, Inc. has a market capitalization of $1.4B, trailing P/E ratio of 96.1, and revenue of $529M. The company maintains a gross margin of 44.0% and a net margin of 2.8%. Return on equity stands at 13.1%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.