Form 8-K

8-K — NETGEAR, INC.

Accession: 0001193125-26-191607

Filed: 2026-04-29

Period: 2026-04-29

CIK: 0001122904

SIC: 3661 (TELEPHONE & TELEGRAPH APPARATUS)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — ntgr-20260429.htm (Primary)

EX-99.1 (ntgr-ex99_1.htm)

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XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: ntgr-20260429.htm · Sequence: 1

8-K

false000112290400011229042026-04-292026-04-29

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

April 29, 2026

NETGEAR, INC.

(Exact name of Registrant as specified in its charter)

Delaware

000-50350

77-0419172

(State or other jurisdiction

of incorporation)

(Commission File Number)

(I.R.S. Employer

Identification Number)

3553 North First Street

San Jose,

95134

(Address, including zip code, of principal executive offices)

(408)

907-8000

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s):

Name of each exchange on which registered

Common Stock, $0.001 par value

NTGR

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On April 29, 2026, NETGEAR, Inc. issued a press release announcing its financial results for its first fiscal quarter ended March 29, 2026, the text of which is furnished herewith as Exhibit 99.1.

The information furnished pursuant to this Item 2.02 and the exhibit to this Current Report are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that Section. The information furnished pursuant to this Item 2.02 and the exhibit to this Current Report shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number

Description

99.1

Press Release, Dated April 29, 2026

104

Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: April 29, 2026

NETGEAR, INC.

By:

/s/ Bryan D. Murray

Bryan D. Murray

Chief Financial Officer

EX-99.1

Filename: ntgr-ex99_1.htm · Sequence: 2

EX-99.1

Exhibit 99.1

NEWS RELEASE

NETGEAR® REPORTS FIRST QUARTER 2026 RESULTS

Operating margin above the high end of guidance

Record high GAAP gross margin of 40.5% and non-GAAP gross margin of 41.7%

Share repurchases of $20 million at an average price of $21.53

ARR from subscription and services of approximately $40 million

SAN JOSE, California – April 29, 2026 - NETGEAR, Inc. (NASDAQ: NTGR), a global leader in intelligent networking solutions designed to power extraordinary experiences, today reported financial results for the first quarter ended March 29, 2026.

Q1 2026

•

Net revenue of $158.8 million, down 2.0% as compared to Q1 prior year

•

GAAP gross margin of 40.5%, up 570 basis points from 34.8% in Q1 prior year

Non-GAAP gross margin of 41.7%, up 670 basis points from 35.0% in Q1 prior year

•

GAAP operating income of $(13.6) million compared to $(12.8) million from Q1 prior year

Non-GAAP operating income of $1.7 million compared to $(2.6) million from Q1 prior year

•

GAAP EPS of $(0.47) compared to $(0.21) from Q1 prior year

Non-GAAP EPS of $0.06 compared to $0.02 from Q1 prior year

The accompanying schedules provide a reconciliation of financial measures computed on a GAAP basis to financial measures computed on a non-GAAP basis.

CJ Prober, Chief Executive Officer, commented, “We delivered a strong start to 2026, building on a healthy operating foundation and disciplined execution across the business. As we progress into the next phase of our transformation, we’re reaping the benefits of the foundation we’ve built, while continuing the investments that will fuel our future profitable growth. In Q1, we again achieved a record non-GAAP gross margin driven by the strength of our Enterprise business and supported by tighter supply chain discipline. AI is increasingly acting as a transformation catalyst across the organization – enhancing how we operate, accelerating software development, and creating value for customers. With sufficient memory secured for virtually all of our 2026 production, a strong balance sheet, and solid margin momentum, we are well positioned to deliver sustained, long-term shareholder value.”

Bryan Murray, Chief Financial Officer, added, “Our first quarter results demonstrate the strength of our financial execution and the breadth of improvements we have made across the business as we progress into the second phase of our transformation. We exceeded expectations on the bottom line, improved our revenue mix toward higher-margin products and services, and maintained strong operational discipline in a dynamic environment, further underscoring the agility of our operating model and lean execution of our team. Continuing our opportunistic approach to stock repurchases, we repurchased $20 million of shares at an average price of $21.53 per share, and our Board of Directors has approved an additional $75 million for our repurchase authorization, which when combined with the remaining amount on the previous authorization totals approximately $89 million.”

Page 1

Enterprise Segment Results

•

Revenue was $83.8 million, up 5.8% year over year

•

Non-GAAP gross margin was 52.7%, up 640 basis points year over year

•

Non-GAAP contribution margin was 23.9%, up 160 basis points year over year

Mr. Prober continued, “Propelled by strong end user demand for our leading ProAV solutions and other high-impact growth initiatives, our Enterprise segment performed well, reaching 53% of our total revenue. We delivered solid year-over-year growth and another quarter of record segment gross margin validating the progress we’ve made in building a higher-margin growth profile. Momentum in non-device revenue is building with an important recent release of our Insight software, as we realize early benefits from our new Chennai software development center and the acquisitions of VAAG and Exium. We also launched a new structured portfolio of professional services and support offerings in the quarter and made strong progress expanding our presence in the Broadcast vertical for ProAV. Partnerships and projects with leading names in the industry are opening significant new opportunities. NETGEAR remains well-positioned to strengthen our leadership in the AV industry and deliver continued profitable growth.”

Consumer Segment Results

•

Revenue was $75.0 million, down 9.5% year over year

•

Non-GAAP gross margin was 29.4%, up 520 basis points year over year

•

Non-GAAP contribution margin was (0.2)%, up 160 basis points year over year

Mr. Prober continued, “In Consumer, we delivered revenue growth for our core products, strong gross margin despite the memory headwind, and improved contribution margin year over year. Our good-better-best WiFi 7 lineup continues to perform well, and we are seeing the benefits of our disciplined focus on continued gross profit optimization. Our consumer subscription offering continues to perform well and is the driving force in generating nearly $40 million in annual recurring revenue across the company, growing 12% year over year, while improving ASPs and renewals. On the regulatory front, NETGEAR became the first retail company to receive conditional approval under the new FCC standards for consumer routers — a reflection of our longstanding commitment to security, supply chain integrity, and our status as an independent US-based public company. We believe this positions NETGEAR as the most trusted brand in consumer networking, and we remain focused on delivering the performance, reliability, and security our customers expect.”

Business Outlook

Within Enterprise, end user demand for our ProAV line of managed switches is expected to remain strong and we have secured sufficient memory for virtually all our 2026 production plans. We expect the memory impact to be nominal for our Enterprise business given the relatively higher ASPs and margins, and the ability to increase our prices, as seen broadly in the market. On the Consumer side, while we have the right product portfolio and roadmap to address market demand, we will continue to prioritize gross profit over revenue with the rising cost of memory which we expect to continue throughout the year. We also expect to continue driving growth in higher margin recurring services. For Service Provider and related products, we remain steadfast in our approach of harvesting this business and expect revenue to be around $18 million, which would be a decline of approximately 33% as compared to the second quarter of 2025. Accordingly, we expect second quarter net revenue to be in the range of $150 million to $165 million. In the second quarter we expect our mitigation efforts, with greater benefit to the enterprise business, to counter the rising cost of memory. Accordingly, we expect our second quarter GAAP operating margin to be in the range of (8.4)% to (5.4)%, and non-GAAP operating margin to be in the range of (1.0)% to 2.0%. Our GAAP tax is expected to be in the range of $0.8 million to $1.8 million, and our non-GAAP tax expense is expected to be in the range of $0.5 to $1.5 million for the second quarter of 2026.

Page 2

A reconciliation between the Business Outlook on a GAAP and non-GAAP basis is provided in the following table:

Three months ending

June 28, 2026

(In millions, except for percentage data)

Operating Margin

Rate

Tax Expense

GAAP

(8.4)% - (5.4)%

$0.8-$1.8

Estimated adjustments for1:

Stock-based compensation expense

6.3%

Amortization of intangible assets

0.9%

Restructuring and other charges

0.2%

Non-GAAP tax adjustments

(0.3)

Non-GAAP

(1.0)% - 2.0%

$0.5 - $1.5

1 Business outlook does not include estimates for any currently unknown income and expense items which, by their nature, could arise late in a quarter, including: litigation reserves, net; acquisition-related charges; impairment charges; restructuring and other charges and discrete tax benefits or detriments that cannot be forecasted (e.g., windfalls or shortfalls from equity awards or items related to the resolution of uncertain tax positions). New material income and expense items such as these could have a significant effect on our guidance and future GAAP results.

Investor Conference Call / Webcast Details

NETGEAR will review the first quarter results and discuss management's expectations for the second quarter of 2026 today, Wednesday, April 29, 2026 at 5 p.m. ET (2 p.m. PT). The toll-free dial-in number for the live audio call is (888) 660-6392. The international dial-in number for the live audio call is (929) 203-0899. The conference ID for the call is 1030183. A live webcast of the conference call will be available on NETGEAR's Investor Relations website at http://investor.netgear.com. A replay of the call will be available via the web at http://investor.netgear.com.

About NETGEAR, Inc.

Founded in 1996 and headquartered in the USA, NETGEAR® (NASDAQ: NTGR) is a global leader in innovative networking technologies for businesses, homes, and service providers. NETGEAR delivers a wide range of award-winning, intelligent solutions designed to unleash the full potential of connectivity and power extraordinary experiences. For businesses, NETGEAR offers reliable, easy-to-use, high-performance networking solutions, including switches, routers, access points, software, and AV over IP technologies, tailored to meet the diverse needs of organizations of all sizes. NETGEAR’s Consumer products deliver advanced connectivity, powerful performance, and enhanced security features right out of the box, designed to keep families safe online, whether at home or on the go. More information is available from the NETGEAR Press Room or by calling (408) 907-8000. Connect with NETGEAR: Facebook, Instagram and the NETGEAR blog at NETGEAR.com.

© 2026 NETGEAR, Inc. NETGEAR and the NETGEAR logo are trademarks or registered trademarks of NETGEAR, Inc. and its affiliates in the United States and/or other countries. Other brand and product names are trademarks or registered trademarks of their respective holders. The information contained herein is subject to change without notice. NETGEAR shall not be liable for technical or editorial errors or omissions contained herein. All rights reserved.

Source: NETGEAR-F

Contact:

NETGEAR Investor Relations

Erik Bylin

Page 3

investors@netgear.com

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 for NETGEAR, Inc.:

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words “anticipate,” “expect,” “believe,” “will,” “may,” “should,” “estimate,” “project,” “outlook,” “forecast” or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. The forward-looking statements represent NETGEAR, Inc.’s expectations or beliefs concerning future events based on information available at the time such statements were made and include statements regarding: NETGEAR’s future operating performance and financial condition, including expectations regarding growth, revenue, operating margin and gross margin; creating long-term value for shareholders; positioning NETGEAR for long term success; long-term potential and profitable growth; continued end user demand for NETGEAR’s ProAV line of managed switches; revenue from the service provider channel; expectations regarding continuing market demand for the NETGEAR’s products and services; and expectations regarding expected tax benefits or tax expenses. These statements are based on management's current expectations and are subject to certain risks and uncertainties, including the following: future demand for NETGEAR’s products and services may be lower than anticipated; NETGEAR may be unsuccessful, or experience delays, in manufacturing and distributing its new and existing products and services; consumers may choose not to adopt NETGEAR’s new product and services offerings or adopt competing products and services; NETGEAR may fail to manage costs, including the cost of key components, the cost of air freight and ocean freight, and the cost of developing new products and manufacturing and distribution of its existing offerings; NETGEAR may fail to successfully continue to effect operating expense savings; changes in the level of NETGEAR's cash resources and NETGEAR’s planned usage of such resources; changes in NETGEAR’s stock price and developments in the business that could increase NETGEAR’s cash needs; fluctuations in foreign exchange rates; loss of services of key personnel may affect NETGEAR’s ability to executive on business strategy effectively; and the actions and financial health of NETGEAR’s customers, including NETGEAR’s ability to collect receivables as they become due. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Further information on potential risk factors that could affect NETGEAR and its business are detailed in NETGEAR’s periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled "Part I - Item 1A. Risk Factors" in NETGEAR’s annual report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission on February 13, 2026. Given these circumstances, you should not place undue reliance on these forward-looking statements. NETGEAR undertakes no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

Non-GAAP Financial Information:

To supplement our unaudited selected financial data presented on a basis consistent with Generally Accepted Accounting Principles (“GAAP”), we disclose certain non-GAAP financial measures that exclude certain charges, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, non-GAAP total operating expenses, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP other income (expenses), net, non-GAAP net income (loss) and non-GAAP net income (loss) per diluted share. These supplemental measures exclude adjustments for amortization of intangible assets, stock-based compensation expense, acquisition related expenses, restructuring and other charges, litigation reserves, net, gain/loss on investments and others, and adjust for effects related to non-GAAP tax adjustments. These non-GAAP measures are not in accordance with or an alternative for GAAP, and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance.

Page 4

In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our operating performance on a period-to-period basis because such items are not, in our view, related to our ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, and for benchmarking performance externally against competitors. In addition, management’s incentive compensation is determined using certain non-GAAP measures. Since we find these measures to be useful, we believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by offering:

• the ability to make more meaningful period-to-period comparisons of our on-going operating results;

• the ability to better identify trends in our underlying business and perform related trend analyses;

• a better understanding of how management plans and measures our underlying business; and

• an easier way to compare our operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures.

The following are explanations of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding them in the reconciliations of these non-GAAP financial measures:

Amortization of intangible assets consists primarily of non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions. We consider our operating results without these charges when evaluating our ongoing performance and forecasting our earnings trends, and therefore exclude such charges when presenting non-GAAP financial measures. We believe that the assessment of our operations excluding these costs is relevant to our assessment of internal operations and comparisons to the performance of our competitors.

Stock-based compensation expense consists of non-cash charges for the estimated fair value of restricted stock units and shares under the employee stock purchase plan granted to employees. We believe that the exclusion of these charges provides for more accurate comparisons of our operating results to peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, we believe it is useful to investors to understand the specific impact stock-based compensation expense has on our operating results.

Other items consist of certain items that are the result of either unique or unplanned events, including, when applicable: acquisition related expenses, restructuring and other charges, litigation reserves, net, and gain/loss on investments and others. It is difficult to predict the occurrence or estimate the amount or timing of these items in advance. Although these events are reflected in our GAAP financial statements, these unique transactions may limit the comparability of our on-going operations with prior and future periods. The amounts result from events that often arise from unforeseen circumstances, which often occur outside of the ordinary course of continuing operations. Therefore, the amounts do not accurately reflect the underlying performance of our continuing business operations for the period in which they are incurred.

Non-GAAP tax adjustments consist of adjustments that we incorporate into non-GAAP measures in order to provide a more meaningful measure on non-GAAP net income (loss). We believe providing financial information with and without the income tax effects relating to our non-GAAP financial measures, as well as adjustments for valuation allowances on deferred tax assets, provides our management and users of the financial statements with better clarity regarding both current period performance and the on-going performance of our business. Non-GAAP income tax expense (benefit) is computed on a current and deferred basis with non-GAAP income (loss) consistent with use of non-GAAP income (loss) as a performance measure. The Non-GAAP tax provision (benefit) is calculated by adjusting the GAAP tax provision (benefit) for the impact of the non-GAAP adjustments, with specific tax provisions such as state income tax and Base-erosion and Anti-Abuse Tax recomputed on a non-GAAP basis, as well as adjustments for valuation allowances on deferred tax assets. The tax valuation allowance is a non-cash adjustment primarily reflecting our expectations of, and assumptions as to, future operating results and applicable tax laws, that are not directly attributable to the current quarter’s operating performance. For interim periods, the non-GAAP income tax provision (benefit) is calculated based on the forecasted annual non-GAAP tax rate before discrete items and adjusted for interim discrete items.

-Financial Tables Attached-

Page 5

NETGEAR, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

March 29, 2026

December 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

183,476

209,904

Short-term investments

113,033

113,132

Accounts receivable, net

142,155

142,045

Inventories

169,305

176,456

Prepaid expenses and other current assets

34,849

31,745

Total current assets

642,818

673,282

Property and equipment, net

26,182

26,001

Operating lease right-of-use assets

34,308

36,715

Intangible assets, net

37,061

38,480

Goodwill

45,022

Other non-current assets

16,540

16,771

Total assets

801,931

836,271

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

43,367

43,749

Accrued employee compensation

38,260

34,731

Other accrued liabilities

139,080

144,028

Deferred revenue

26,199

26,904

Income taxes payable

1,816

809

Total current liabilities

248,722

250,221

Non-current income taxes payable

6,702

7,176

Non-current operating lease liabilities

38,113

41,016

Other non-current liabilities

37,239

40,035

Total liabilities

330,776

338,448

Stockholders’ equity:

Common stock

Additional paid-in capital

1,047,305

1,036,545

Accumulated other comprehensive income (loss)

(28)

196

Accumulated deficit

(576,149)

(538,946)

Total stockholders’ equity

471,155

497,823

Total liabilities and stockholders’ equity

801,931

836,271

Page 6

NETGEAR, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share and percentage data)

(Unaudited)

Three Months Ended

March 29, 2026

March 30, 2025

Net revenue

158,819

162,060

Cost of revenue

94,517

105,734

Gross profit

64,302

56,326

Gross margin

40.5%

34.8%

Operating expenses:

Research and development

21,665

18,309

Sales and marketing

31,670

28,041

General and administrative

19,183

18,070

Litigation reserves, net

500

(37)

Restructuring and other charges

4,876

4,742

Total operating expenses

77,894

69,125

Loss from operations

(13,592)

(12,799)

Operating margin

(8.6)%

(7.9)%

Other income, net

1,581

8,171

Loss before income taxes

(12,011)

(4,628)

Provision for income taxes

1,029

1,406

Net loss

(13,040)

(6,034)

Net loss per share

Basic

(0.47)

(0.21)

Diluted

(0.47)

(0.21)

Weighted average shares used to compute net income (loss) per share:

Basic

27,977

28,717

Diluted

27,977

28,717

Page 7

NETGEAR, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Three Months Ended

March 29,

2026

March 30,

2025

Cash flows from operating activities:

Net loss

(13,040)

(6,034)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

3,624

1,684

Stock-based compensation

8,205

5,496

Accretion of discounts and imputed interests, net

644

(476)

Deferred income taxes

(67)

(136)

Provision for excess and obsolete inventory

1,900

1,435

Other

(22)

Changes in assets and liabilities:

Accounts receivable, net

(110)

13,504

Inventories

5,251

3,206

Prepaid expenses and other assets

(2,768)

(620)

Accounts payable

(207)

(3,603)

Accrued employee compensation

3,530

(4,313)

Other accrued liabilities

(4,940)

(19,102)

Deferred revenue

(886)

(164)

Income taxes payable

532

365

Net cash provided by (used in) operating activities

1,646

(8,749)

Cash flows from investing activities:

Purchases of short-term investments

(30,152)

(29,759)

Proceeds from maturities of short-term investments

30,000

Purchases of property and equipment

(3,822)

(1,396)

Purchases of long-term investments

—

(105)

Net cash used in investing activities

(3,974)

(1,260)

Cash flows from financing activities:

Repurchases of common stock, including exercise tax

(20,152)

(8,162)

Restricted stock unit withholdings

(4,028)

(5,141)

Proceeds from exercise of stock options

—

4,590

Proceeds from issuance of common stock under employee stock purchase plan

2,555

2,089

Principal payments on deferred purchase price of intangible asset acquisition

(2,475)

—

Net cash used in financing activities

(24,100)

(6,624)

Net decrease in cash and cash equivalents

(26,428)

(16,633)

Cash and cash equivalents, at beginning of period

209,904

286,444

Cash and cash equivalents, at end of period

183,476

269,811

Page 8

NETGEAR, INC.

RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

(In thousands, except percentage data)

(Unaudited)

STATEMENT OF OPERATIONS DATA:

Three Months Ended

March 29, 2026

December 31, 2025

March 30, 2025

GAAP gross profit

64,302

73,635

56,326

GAAP gross margin

40.5 %

40.4 %

34.8 %

Amortization of intangible assets

1,418

991

—

Stock-based compensation expense

501

548

422

Non-GAAP gross profit

66,221

75,174

56,748

Non-GAAP gross margin

41.7 %

41.2 %

35.0 %

GAAP research and development

21,665

23,239

18,309

Stock-based compensation expense

(1,103)

(1,332)

(592)

Acquisition related expenses

(244)

(243)

—

Non-GAAP research and development

20,318

21,664

17,717

GAAP sales and marketing

31,670

34,877

28,041

Amortization of intangible assets

(1)

(3)

—

Stock-based compensation expense

(2,265)

(2,604)

(1,313)

Non-GAAP sales and marketing

29,404

32,270

26,728

GAAP general and administrative

19,183

19,544

18,070

Stock-based compensation expense

(4,336)

(4,252)

(3,169)

Non-GAAP general and administrative

14,847

15,292

14,901

GAAP total operating expenses

77,894

78,379

69,125

Amortization of intangible assets

(1)

(3)

—

Stock-based compensation expense

(7,704)

(8,188)

(5,074)

Acquisition related expenses

(244)

(243)

—

Restructuring and other charges

(4,876)

(646)

(4,742)

Litigation reserves, net

(500)

(73)

Non-GAAP total operating expenses

64,569

69,226

59,346

GAAP operating income (loss)

(13,592)

(4,744)

(12,799)

GAAP operating margin

(8.6)%

(2.6)%

(7.9)%

Amortization of intangible assets

1,419

994

—

Stock-based compensation expense

8,205

8,736

5,496

Acquisition related expenses

244

243

—

Restructuring and other charges

4,876

646

4,742

Litigation reserves, net

500

(37)

Non-GAAP operating income (loss)

1,652

5,948

(2,598)

Non-GAAP operating margin

1.0 %

3.3 %

(1.6)%

GAAP other income, net

1,581

2,201

8,171

Gain/loss on investments and others

(22)

(62)

(4,642)

Non-GAAP other income, net

1,559

2,139

3,529

Page 9

NETGEAR, INC.

RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED)

(In thousands, except per share data)

(Unaudited)

STATEMENT OF OPERATIONS DATA (CONTINUED):

Three Months Ended

March 29, 2026

December 31, 2025

March 30, 2025

GAAP net income (loss)

(13,040)

(684)

(6,034)

Amortization of intangible assets

1,419

994

—

Stock-based compensation expense

8,205

8,736

5,496

Acquisition related expenses

244

243

—

Restructuring and other charges

4,876

646

4,742

Litigation reserves, net

500

(37)

Gain/loss on investments and others

(22)

(62)

(4,642)

Non-GAAP tax adjustments

(328)

(2,207)

936

Non-GAAP net income (loss)

1,854

7,739

461

NET INCOME (LOSS) PER DILUTED SHARE:

GAAP net income (loss) per diluted share

(0.47)

(0.02)

(0.21)

Amortization of intangible assets

0.05

0.03

—

Stock-based compensation expense

0.29

0.30

0.18

Acquisition related expenses

0.01

—

Restructuring and other charges

0.17

0.02

0.16

Litigation reserves, net

0.02

—

Gain/loss on investments and others

—

(0.15)

Non-GAAP tax adjustments

(0.01)

(0.08)

0.04

Non-GAAP net income (loss) per diluted share 1

0.06

0.26

0.02

Shares used in computing GAAP net income (loss) per diluted share

27,977

28,180

28,717

Shares used in computing non-GAAP net income (loss) per diluted share

28,701

29,457

30,253

1 The per share reconciliation of GAAP to non-GAAP may not aggregate due to both calculations utilizing a different share basis. The net loss per diluted share calculation uses a lower share count as it excludes potentially dilutive shares included in the net income per diluted share calculation.

Page 10

NETGEAR, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(In thousands, except per share data, DSO, inventory turns, weeks of channel inventory, headcount and percentage data)

(Unaudited)

Three Months Ended

March 29, 2026

December 31, 2025

September 28, 2025

June 29, 2025

March 30, 2025

Cash, cash equivalents and short-term investments

296,509

323,036

326,383

363,472

391,927

Cash, cash equivalents and short-term investments per diluted share

10.33

10.97

10.96

11.95

12.95

Accounts receivable, net

142,155

142,045

159,880

144,871

142,706

Days sales outstanding (DSO)

Inventories

169,305

176,456

166,561

157,305

157,898

Ending inventory turns

2.2

2.5

2.7

Weeks of channel inventory:

U.S. retail channel

11.5

11.0

11.9

12.0

10.1

U.S. distribution channel

5.0

3.5

3.8

2.4

EMEA distribution channel

4.8

4.6

5.5

4.7

4.4

APAC distribution channel

12.7

13.7

8.3

10.2

8.3

Deferred revenue (current and non-current)

30,224

31,110

32,464

33,779

35,198

Headcount

786

784

753

707

636

Non-GAAP diluted shares

28,701

29,457

29,782

30,424

30,253

NET REVENUE BY GEOGRAPHY

Three Months Ended

March 29, 2026

December 31, 2025

March 30, 2025

Americas

105,863

67%

123,895

68%

107,761

66%

EMEA

33,475

21%

36,162

20%

32,129

20%

APAC

19,481

12%

22,411

12%

22,170

14%

Total

158,819

100%

182,468

100%

162,060

100%

SERVICE PROVIDER NET REVENUE

Three Months Ended

Consumer Segment

March 29, 2026

December 31, 2025

March 30, 2025

Service provider net revenue 1

20,232

22,866

29,707

Other

54,785

70,223

53,162

Total Consumer segment net revenue

75,017

93,089

82,869

1 Service provider net revenue includes cable net revenue sold from retail. Prior-period amounts have been recast to conform to the current-period presentation.

Page 11

NETGEAR, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (CONTINUED)

(In thousands, except percentage data)

(Unaudited)

SEGMENT DATA:

Three Months Ended

March 29, 2026

December 31, 2025

March 30, 2025

Enterprise

Consumer

Total

Enterprise

Consumer

Total

Enterprise

Consumer

Total

Net revenue

83,802

75,017

158,819

89,379

93,089

182,468

79,191

82,869

162,060

Segment cost of revenue

39,658

52,940

92,598

43,416

63,878

107,294

42,530

62,782

105,312

Segment gross profit

44,144

22,077

66,221

45,963

29,211

75,174

36,661

20,087

56,748

Segment gross margin

52.7%

29.4%

51.4%

31.4%

46.3%

24.2%

Segment operating expenses

24,087

22,203

46,290

25,455

24,196

49,651

19,026

21,552

40,578

Contribution income (loss)

20,057

(126)

19,931

20,508

5,015

25,523

17,635

(1,465)

16,170

Contribution margin

23.9%

(0.2)%

22.9%

5.4 %

22.3%

(1.8)%

Corporate and unallocated costs

(18,279)

(19,575)

(18,768)

Amortization of intangible assets

(1,419)

(994)

—

Stock-based compensation expense

(8,205)

(8,736)

(5,496)

Acquisition related expenses

(244)

(243)

—

Restructuring and other charges

(4,876)

(646)

(4,742)

Litigation reserves, net

(500)

(73)

Other income, net

1,581

2,201

8,171

Income (loss) before income taxes

(12,011)

(2,543)

(4,628)

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