Intense Market Competition: Arlo operates in a highly competitive smart home security market, facing established players and new entrants, which can lead to pricing pressure, reduced market share, and increased marketing costs.

Reliance on Subscription Services: A significant portion of Arlo's revenue and profitability depends on its recurring subscription services (Arlo Secure). Any decline in subscriber growth, retention rates, or ability to convert hardware sales into subscriptions would negatively impact financial performance.

Data Security and Privacy Concerns: As a provider of home security and surveillance products, Arlo handles sensitive user data. Any data breach, privacy violation, or perceived failure to protect customer information could severely damage its brand reputation, lead to legal liabilities, and reduce customer trust.