Inflation and Consumer Disposable Income: High inflation and falling real median household income may reduce consumer discretionary spending, potentially impacting demand for Arlo's premium smart-home hardware, which primarily targets middle-to-high earners.

Global Supply Chain Disruptions and Geopolitical Tensions: Ongoing US-China trade tensions, combined with broader geopolitical hotspots like the Middle East conflict, can increase manufacturing costs due to tariffs and potential supply chain disruptions (e.g., affecting Suez/Red Sea shipping routes), thereby squeezing gross margins.

Shift to Subscription Economy and Services-Led Model: Arlo's strategic pivot to a subscription-based model provides a more predictable and recurring revenue stream, helping to insulate the company from macroeconomic volatility. However, it also means navigating the industry trend of declining average selling prices (ASPs) for hardware devices.