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Employee Benefit Plans | 3 Months Ended
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Mar. 29, 2026
Employee Benefit and Share-Based Payment Arrangement, Noncash Expense [Abstract] |
Employee Benefit Plans | Employee Benefit Plans We grant options and restricted stock units (“RSUs”) under the 2018 Equity Incentive Plan (the “2018 Plan”), under which awards may be granted to all employees. We also grant performance-based and market-based restricted stock units (“PSUs”) to our executive officers and other senior employees periodically. Award vesting periods for the 2018 Plan are generally three to five years. As of March 29, 2026, 3.3 million shares were available for future grants. Options may be granted for periods of up to 10 years or such shorter term as may be provided in the agreement and at prices no less than 100% of the fair market value of Arlo’s common stock on the date of grant. Options granted under the 2018 Plan generally vest over three to four years, the first tranche at the end of 12 months and the remaining shares underlying the option vesting monthly over the remaining years. On January 23, 2026, we registered an aggregate of up to 4,200,189 shares of common stock under the 2018 Plan on a Registration Statement on Form S-8 pursuant to an “evergreen” provision contained in the 2018 Plan. The following table sets forth the available shares for grants as of March 29, 2026:
| Number of Shares
| (In thousands)
Shares available for grants as of December 31, 2025 | 4,409 |
Additional authorized shares | 4,200 |
Granted | (5,395) |
Forfeited / expired / cancelled | 105 |
Shares available for grants as of March 29, 2026 | 3,319 |
Employee stock purchase plan We sponsor the ESPP for eligible employees. There were no ESPP purchases during either the three months ended March 29, 2026 or March 30, 2025. As of March 29, 2026, 3.1 million shares were available for issuance under the ESPP. Option activity We did not grant options during the three months ended March 29, 2026. Stock option activity during the three months ended March 29, 2026 was as follows:
| Number of Shares |  | Weighted Average Exercise Price Per Share
| (In thousands) |  | (In dollars)
Outstanding as of December 31, 2025 | 275 |  |  | $ | 14.10 |
Granted | — |  |  | $ | — |
Exercised | — |  |  | $ | — |
Expired / cancelled | — |  |  | $ | — |
Outstanding as of March 29, 2026 | 275 |  |  | $ | 14.10 |
Vested and exercisable as of March 29, 2026 | 275 |  |  | $ | 14.10 |
RSU activity RSU activity, exclusive of PSU activity, during the three months ended March 29, 2026 was as follows:
| Number of Shares |  | Weighted Average Grant Date Fair Value Per Share
| (In thousands) |  | (In dollars)
Outstanding as of December 31, 2025 | 6,481 |  |  | $ | 9.99 |
Granted | 2,508 |  |  | $ | 13.78 |
Vested | (2,352) |  |  | $ | 10.45 |
Forfeited / cancelled | (102) |  |  | $ | 12.66 |
Outstanding as of March 29, 2026 | 6,535 |  |  | $ | 11.17 |
PSU activity Our executive officers and other senior employees have been granted PSUs with some vesting occurring when performance conditions are met. The number of units earned and eligible to vest are determined based on the achievement of various performance conditions, including annual recurring revenue, cumulative paid accounts, subscriptions and services gross profit and gross margin, and the recipients’ continued services. At the end of each reporting period, we evaluate the probability of achieving the performance conditions and record the related stock-based compensation expense based on the estimated achievement over the service period. PSU activity during the three months ended March 29, 2026 was as follows:
| Number of Shares |  | Weighted Average Grant Date Fair Value Per Share
| (In thousands) |  | (In dollars)
Outstanding as of December 31, 2025 | 2,970 |  |  | $ | 10.56 |
Granted | 2,887 |  |  | $ | 14.15 |
Vested | (1,934) |  |  | $ | 10.29 |
Forfeited / cancelled | (3) |  |  | $ | 8.28 |
Outstanding as of March 29, 2026 | 3,920 |  |  | $ | 11.18 |
Stock-based compensation expense The following table sets forth the stock-based compensation expense by line item on the unaudited condensed consolidated statements of operations and comprehensive income (loss):
| Three Months Ended |  |
| March 29, 2026 |  | March 30, 2025 |  |  |  |
| (In thousands)
Cost of revenue | $ | 1,374 |  |  | $ | 1,117 |  |  |  |  |
Research and development | 7,171 |  |  | 3,900 |  |  |  |  |
Sales and marketing | 3,174 |  |  | 3,073 |  |  |  |  |
General and administrative | 8,015 |  |  | 8,922 |  |  |  |  |
Stock-based compensation, net of amounts capitalized | $ | 19,734 |  |  | $ | 17,012 |  |  |  |  |
Capitalized stock-based compensation | 305 |  |  | 601 |  |  |  |  |
Total stock-based compensation | $ | 20,039 |  |  | $ | 17,613 |  |  |  |  |
As of March 29, 2026, all outstanding options were fully vested, therefore, there was no unrecognized compensation cost related to stock options. As of March 29, 2026, $106.6 million of unrecognized compensation cost related to unvested RSUs and PSUs is expected to be recognized over a weighted-average period of 2.3 years.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/715/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 712 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/712/tableOfContent Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 710 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/710/tableOfContent Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent + Details
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