Risk Factors Update Summary

• Sales and marketing expenses decreased from $70.1 million to $66.1 million, impacting revenue.
• Failure to obtain consent for data processing practices could result in adverse consequences.
• Arlo delivers a seamless, smart home security experience with a highly secure, cloud-based platform.
• Privacy laws like CCPA and state laws provide individuals rights affecting data processing activities.
• European regulators' actions on data transfer limitations could impact operations and compliance costs.
• Use of identity verification tech may subject the company to biometric privacy laws and significant penalties.
• Arlo now combines a globally scaled cloud platform, advanced monitoring, and mobile analytics capabilities.
• Arlo introduced the Wire-Free Outdoor Siren and Cellular Go 2 with enhanced features for extended protection and GPS positioning.
• Increased scrutiny on cross-border data transfers may lead to legal challenges and compliance costs.
• Use of generative AI and ML tech poses compliance costs, regulatory actions, and potential lawsuits.
• Arlo introduced new smart connected security devices, including Essential Cameras and Doorbells with enhanced features.
• Arlo released the Video Doorbell Ultra 2 with industry-leading features like 4K video, color night vision, and wide field of view.
• Arlo launched the Arlo Home Security System with an all-in-one multi-sensor and the Wireless Pro 5S 2K Security Camera.
• Arlo expanded its product line with Charging Accessories, Anti-Theft Quadpod, and various mounts for user flexibility.