US security technology company Arlo is reshaping its Australian operations, resulting in the departure of longtime marketing director Lambro Skropidis.

Under the changes, marketing for Arlo products in Australia will now be managed directly by the company’s global marketing team. Brad Little, Vice President of Sales for APAC at Arlo Technologies, said the shift would help consolidate brand and product marketing efforts locally.

Australia remains Arlo’s largest market in the Asia-Pacific region, where revenues for the first half of the year reached A$16.89 million — up 4.3% year-on-year.

The restructure comes as competition in Australia’s home security market intensifies, particularly in subscription-based services where Arlo earns recurring revenue. New Chinese entrants, alongside established rivals such as Swann, Reolink, Eufy, and TP-Link, are driving increased price and feature competition.

Despite heavy investment in local marketing campaigns — including TV advertising — Arlo has recently returned to profitability after several quarters of losses. In its fiscal 2025 Q2 results, CEO Matthew McRae credited the launch of its new AI-powered platform, Arlo Secure 6, for driving subscription growth. Subscriptions and services revenue grew 30% to US$78 million, with annual recurring revenue (ARR) climbing 34% to US$316 million. Non-GAAP gross margin for subscriptions hit a record 85%.

“This subscription momentum, coupled with our holiday product launches, positions Arlo for continuing success,” McRae said. The company has not disclosed its Australian subscription revenue.

In the US, Arlo offers monitored security services in partnership with ADT — a feature not yet introduced in Australia. Locally, growth is being driven by sales of wireless, solar-powered, and new PoE-powered camera systems, with AI-enabled features available to paying subscribers.

This data is in US dollars.

However, Australian consumers have been slower to embrace subscription fees. Competitors such as Swann and Reolink offer free cloud storage and on-device storage, providing what retailers describe as “a strong out-of-the-box experience” without ongoing costs. One major retailer told ChannelNews:

They added “In Australia, consumers are reluctant to pay for a security subscription. Some systems become almost unusable after three months without one, but the US market is far more accustomed to ongoing fees — although that’s slowly changing here.”

Arlo has raised its full-year subscriptions and services revenue forecast from US$300 million to US$310 million, with ARR guidance lifted to US$335 million. The services gross margin target has also increased to 85%, up from 80%.

In Q2, Arlo added 218,000 paid subscribers, following 298,000 in Q1 (which included a Verisure-related catch-up). Average revenue per user (ARPU) grew to US$15 in Q2, up from US$13.48 in Q1, boosted by the full rollout of Arlo Secure 6 plans.