Arlo Technologies Inc. (ARLO) soared 12.15% in pre-market trading on Friday, following a strong earnings report released after the previous trading session.

The smart home security company reported better-than-expected first-quarter fiscal 2026 results, with non-GAAP EPS of $0.28 beating analyst estimates of $0.19 by 47.37%, and revenue of $150.38 million exceeding expectations of $139.73 million, representing a 26.31% year-over-year increase. Key growth drivers included a 30.9% increase in subscriptions and services revenue to $90.1 million and a 22.6% rise in paid accounts to 6.0 million.

Additionally, the company provided optimistic guidance for the second quarter of 2026, forecasting revenue between $145 million and $155 million, along with other positive operational metrics such as margin expansion. This combination of strong quarterly performance and confident outlook has fueled investor optimism, leading to the significant pre-market surge.