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 June 28, 2026, 2.9 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.


			Number of Shares
			(In thousands)
Shares available for grants as of December 31, 2025			4,409
Additional authorized shares			4,200
Granted			(5,949)
Forfeited / expired / cancelled			209

Shares available for grants as of June 28, 2026			2,869

We sponsor the ESPP for eligible employees, under which, employees purchased 187 thousand shares and 155 thousand shares during the six months ended June 28, 2026 and June 29, 2025, respectively. As of June 28, 2026, 3.0 million shares were available for issuance under the ESPP.


	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 June 28, 2026	275	$	14.10
Vested and exercisable as of June 28, 2026	275	$	14.10


	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	3,062	$	13.81
Vested	(2,681)	$	10.58
Forfeited / cancelled	(206)	$	13.06
Outstanding as of June 28, 2026	6,656	$	11.41

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.


	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	$	11.95
Vested	(1,934)	$	10.29
Forfeited / cancelled	(3)	$	8.28
Outstanding as of June 28, 2026	3,920	$	11.72

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				Six Months Ended
	June 28, 2026		June 29, 2025		June 28, 2026		June 29, 2025
	(In thousands)
Cost of revenue	$	1,136	$	885	$	2,510	$	2,002
Research and development	6,730		4,500		13,901		8,400
Sales and marketing	2,896		2,079		6,070		5,152
General and administrative	10,948		7,519		18,963		16,441
Stock-based compensation, net of amounts capitalized	$	21,710	$	14,983	$	41,444	$	31,995
Capitalized stock-based compensation	472		267		778		868
Total stock-based compensation	$	22,182	$	15,250	$	42,222	$	32,863