NETGEAR ® Reports Fourth Quarter and Full Year 2025 Results

SAN JOSE, Calif.--( BUSINESS WIRE)--NETGEAR, Inc. (NASDAQ: NTGR), a global leader in intelligent networking solutions designed to power extraordinary experiences, today reported financial results for the fourth quarter and full year ended December 31, 2025.

Q4 2025

2025 Fiscal Year

For context, in Q3 2024 NETGEAR settled a significant legal dispute for over $100 million resulting in higher-than-normal GAAP operating income and EPS for that 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 exited 2025 with a strong fourth quarter that underscored the momentum we’ve built across the business, delivering the first year of revenue growth in five years and a 920 basis point increase in our non-GAAP gross margin compared to the prior year. It’s clear that our transformation is enabling streamlined execution and disciplined focus in pursuit of our highest growth opportunities. This culminated in revenue at the high end of our guidance and record quarterly non-GAAP gross margin of 41.2% for the quarter. Driven by continued strength in our higher margin Enterprise business and coupled with improved mix and cost performance in our Consumer business, NETGEAR has fundamentally changed its profitability profile while investing for long-term growth. We delivered non-GAAP profit every quarter of the year, surpassing our expectations. As we embark on 2026, we are focused on building on this momentum by continuing to invest in our highest-growth opportunities, driving further software-led innovation, deepening partner engagements, and expanding the value we deliver to customers. With a strengthened balance sheet and resilient margins, we believe NETGEAR is well positioned to deliver long-term value creation.”

Bryan Murray, Chief Financial Officer, added, “Our fourth quarter results highlight the strength of our financial execution and the breadth of the improvements we’ve made across the business over the past two years. We have a leaner operating model and we are seeing our optimized execution translate to the bottom line. With strong free cash flow, we ended the quarter with $323 million in cash and short-term investments even after repurchasing $15 million of shares, positioning us well to deliver long-term shareholder value as we enter 2026.”

Enterprise Segment Results

Mr. Prober continued, “Enterprise again delivered robust year-over-year performance, as demonstrated by solid revenue growth and substantial margin improvement even in the face of supply headwinds, powered by strong end user demand for our ProAV solutions. Over the past year, we have made significant progress in developing our software offerings to further our differentiation in the market with several acquisitions and the founding of our Chennai software development center. In addition, we introduced the industry’s only all-in-one SASE and hybrid firewall platform, launched an AV professional services team and Partner Success Program, and added more than 150 partners to our AV ecosystem in the year. These actions have strengthened the trajectory of the Enterprise business and further solidified our leadership position in the AV industry and, with an improving supply position entering the year, we are well-positioned for profitable growth within this business.”

Consumer Segment Results

Mr. Prober continued, “In Consumer, we again saw the benefits of our refreshed product portfolio as we execute on our ‘good-better-best’ product strategy. Our WiFi 7 routers and mesh systems performed well and continue to garner accolades while helping to generate sequential share gains in key retail channels worldwide. When excluding sales to Service Providers and associated products, which were down approximately 30% year on year, the core Consumer business grew 1.6% in the quarter as compared to the prior year period. During the fourth quarter we also rolled out a new website and branding, bolstering the growth of our direct-to-consumer channels while helping to widen the funnel for our strategic subscription offerings. Led by our Armor security offering, we closed out the year with more than $40 million in annual recurring revenue. While the overall market remained competitive, our portfolio’s breadth and pricing discipline helped us defend share and improve overall segment margins. With additional improvements to our subscription offerings planned for 2026 and the launch of our eSim-enabled M7 mobile hotspot, we remain focused on further expanding our non-device revenue streams.”

Business Outlook

Within Enterprise, end user demand for our ProAV line of managed switches is expected to remain strong and we have made progress on improving our supply position for these products. On the Consumer side, while we have our broader product portfolio to address the market, we are seeing softening market demand to start the quarter, which could be attributable to broader pricing pressures from electronics makers dealing with the rising cost of memory. For Service Provider and related products, we expect revenue to be around $20 million in part tied to the latest government shutdown, which would be a decline of approximately 35% as compared to the first quarter of 2025. Accordingly, we expect first quarter net revenue to be in the range of $145 million to $160 million. In the first quarter we expect our operating expenses to be slightly reduced from the prior quarter, aided by a small transformation-driven restructuring, with the savings being redeployed to further accelerate our transformation later in the year. Additionally, we expect a slight headwind to our gross margins of around 100 bps mainly related to the rising cost of memory. Accordingly we expect our first quarter GAAP operating margin to be in the range of (16.3)% to (13.3)%, and non-GAAP operating margin to be in the range of (6.0)% to (3.0)%. Our GAAP tax is expected to be in the range of $1 million to $2 million, and our non-GAAP tax expense is expected to be in the range of $300,000 to $1.3 million for the first quarter of 2026.

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

Three months ending

March 28, 2026

(In millions, except for percentage data)

Operating Margin

Rate

Tax Expense

GAAP

(16.3)% - (13.3)%

$1.0 - $2.0

Estimated adjustments for 1:

Stock-based compensation expense

5.7%

Amortization of intangible assets

1.1%

Restructuring and other charges

3.5%

Non-GAAP tax adjustments

(0.7)

Non-GAAP

(6.0)% - (3.0)%

$0.3 - $1.3

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 fourth quarter and full year results and discuss management's expectations for the first quarter of 2026 today, Wednesday, February 4, 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

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 II - Item 1A. Risk Factors" in NETGEAR’s quarterly report on Form 10-Q for the fiscal quarter ended September 28, 2025, filed with the Securities and Exchange Commission on October 31, 2025. 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.

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 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. Included in the non-GAAP tax adjustments for the three and twelve months ended December 31, 2025 and December 31, 2024 are adjustments to tax expense (benefit) related to differences between our prior forecasts and actual results for the twelve months ended.

NETGEAR, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

December 31, 2025

December 31, 2024

ASSETS

Current assets:

Cash and cash equivalents

209,904

286,444

Short-term investments

113,132

122,246

Accounts receivable, net

142,045

156,210

Inventories

176,456

162,539

Prepaid expenses and other current assets

31,745

30,590

Total current assets

673,282

758,029

Property and equipment, net

26,001

11,288

Operating lease right-of-use assets

36,715

28,047

Intangible assets, net

38,480

—

Goodwill

45,022

36,279

Other non-current assets

16,771

16,587

Total assets

836,271

850,230

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

43,749

58,481

Accrued employee compensation

34,731

23,290

Other accrued liabilities

144,028

148,078

Deferred revenue

26,904

30,261

Income taxes payable

809

9,973

Total current liabilities

250,221

270,083

Non-current income taxes payable

7,176

7,583

Non-current operating lease liabilities

41,016

19,796

Other non-current liabilities

40,035

11,702

Total liabilities

338,448

309,164

Stockholders’ equity:

Common stock

Additional paid-in capital

1,036,545

997,912

Accumulated other comprehensive income

196

241

Accumulated deficit

(538,946

)

(457,116

)

Total stockholders’ equity

497,823

541,066

Total liabilities and stockholders’ equity

836,271

850,230

NETGEAR, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share and percentage data)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2025

September 28,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Net revenue

182,468

184,561

182,419

699,621

673,759

Cost of revenue

108,833

112,309

123,035

433,430

477,832

Gross profit

73,635

72,252

59,384

266,191

195,927

Gross margin

40.4

39.1

32.6

38.0

29.1

Operating expenses:

Research and development

23,239

23,328

20,099

85,721

81,082

Sales and marketing

34,877

33,762

32,212

127,733

123,694

General and administrative

19,544

20,619

17,858

78,916

63,468

Litigation reserves, net

3,613

209

(89,012

)

Restructuring and other charges

646

1,514

687

7,764

4,479

Total operating expenses

78,379

79,321

74,469

300,343

183,711

Income (loss) from operations

(4,744

)

(7,069

)

(15,085

)

(34,152

)

12,216

Operating margin

(2.6

(3.8

(8.3

(4.9

1.8

Other income, net

2,201

3,028

3,624

17,376

12,672

Income (loss) before income taxes

(2,543

)

(4,041

)

(11,461

)

(16,776

)

24,888

Provision for income taxes

(1,859

)

736

(2,575

)

1,147

12,525

Net income (loss)

(684

)

(4,777

)

(8,886

)

(17,923

)

12,363

Net income (loss) per share

Basic

(0.02

)

(0.17

)

(0.31

)

(0.63

)

0.43

Diluted

(0.02

)

(0.17

)

(0.31

)

(0.63

)

0.42

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

Basic

28,180

28,638

28,648

28,607

28,905

Diluted

28,180

28,638

28,648

28,607

29,683

NETGEAR, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Twelve Months Ended

December 31,

2025

December 31,

2024

Cash flows from operating activities:

Net income (loss)

(17,923

)

12,363

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

Depreciation and amortization

7,996

6,514

Stock-based compensation

29,715

22,678

Accretion of discounts and imputed interests

(632

)

(3,645

)

Deferred income taxes

(152

)

1,001

Provision for excess and obsolete inventory

3,490

6,064

Other

(186

)

Changes in assets and liabilities:

Accounts receivable, net

14,165

28,849

Inventories

(17,407

)

80,248

Prepaid expenses and other assets

(960

)

5,101

Accounts payable

(14,879

)

11,486

Accrued employee compensation

11,441

2,004

Other accrued liabilities

1,069

(15,152

)

Deferred revenue

(4,252

)

3,368

Income taxes payable

(9,879

)

3,825

Net cash provided by operating activities

1,606

164,797

Cash flows from investing activities:

Purchases of short-term investments

(109,768

)

(137,228

)

Proceeds from maturities of short-term investments

120,000

120,290

Purchases of property and equipment

(20,515

)

(8,994

)

Purchases of long-term investments

(165

)

(225

)

Payments made in connection with business acquisitions, net of cash acquired

(12,193

)

—

Net cash used in investing activities

(22,641

)

(26,157

)

Cash flows from financing activities:

Repurchases of common stock

(50,662

)

(33,088

)

Restricted stock unit withholdings

(13,761

)

(3,409

)

Proceeds from exercise of stock options

5,266

4,019

Proceeds from issuance of common stock under employee stock purchase plan

3,652

3,565

Net cash used in financing activities

(55,505

)

(28,913

)

Net increase (decrease) in cash and cash equivalents

(76,540

)

109,727

Cash and cash equivalents, at beginning of period

286,444

176,717

Cash and cash equivalents, at end of period

209,904

286,444

NETGEAR, INC.

RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

(In thousands, except percentage data)

(Unaudited)

STATEMENT OF OPERATIONS DATA:

Three Months Ended

Twelve Months Ended

December 31,

2025

September 28,

2025

December 31,

2024

December 31,

2025

December 31,

2024

GAAP gross profit

73,635

72,252

59,384

266,191

195,927

GAAP gross margin

40.4

39.1

32.6

38.0

29.1

Amortization of intangible assets

991

180

—

1,171

—

Stock-based compensation expense

548

562

391

1,988

1,613

Non-GAAP gross profit

75,174

72,994

59,775

269,350

197,540

Non-GAAP gross margin

41.2

39.6

32.8

38.5

29.3

GAAP research and development

23,239

23,328

20,099

85,721

81,082

Stock-based compensation expense

(1,332

)

(1,483

)

(887

)

(4,407

)

(3,297

)

Acquisition related expenses

(243

)

(286

)

—

(529

)

—

Non-GAAP research and development

21,664

21,559

19,212

80,785

77,785

GAAP sales and marketing

34,877

33,762

32,212

127,733

123,694

Amortization of intangible assets

)

—

)

—

Stock-based compensation expense

(2,604

)

(2,450

)

(2,190

)

(8,183

)

(6,182

)

Non-GAAP sales and marketing

32,270

31,312

30,022

119,547

117,512

GAAP general and administrative

19,544

20,619

17,858

78,916

63,468

Stock-based compensation expense

(4,252

)

(4,313

)

(3,158

)

(15,137

)

(11,586

)

Acquisition related expenses

—

(705

)

—

Non-GAAP general and administrative

15,292

16,306

14,700

63,074

51,882

GAAP total operating expenses

78,379

79,321

74,469

300,343

183,711

Amortization of intangible assets

)

—

)

—

Stock-based compensation expense

(8,188

)

(8,246

)

(6,235

)

(27,727

)

(21,065

)

Acquisition related expenses

(243

)

(286

)

—

(1,234

)

—

Restructuring and other charges

(646

)

(1,514

)

(687

)

(7,764

)

(4,479

)

Litigation reserves, net

(73

)

(98

)

(3,613

)

(209

)

89,012

Non-GAAP total operating expenses

69,226

69,177

63,934

263,406

247,179

GAAP operating income (loss)

(4,744

)

(7,069

)

(15,085

)

(34,152

)

12,216

GAAP operating margin

(2.6

(3.8

(8.3

(4.9

1.8

Amortization of intangible assets

994

180

—

1,174

—

Stock-based compensation expense

8,736

8,808

6,626

29,715

22,678

Acquisition related expenses

243

286

—

1,234

—

Restructuring and other charges

646

1,514

687

7,764

4,479

Litigation reserves, net

3,613

209

(89,012

)

Non-GAAP operating income (loss)

5,948

3,817

(4,159

)

5,944

(49,639

)

Non-GAAP operating margin

3.3

2.1

(2.3

0.8

(7.4

GAAP other income, net

2,201

3,028

3,624

17,376

12,672

Gain/loss on investments and others

(62

)

110

(4,931

)

Non-GAAP other income, net

2,139

3,070

3,734

12,445

12,765

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

Twelve Months Ended

December 31,

2025

September 28,

2025

December 31,

2024

December 31,

2025

December 31,

2024

GAAP net income (loss)

(684

)

(4,777

)

(8,886

)

(17,923

)

12,363

Amortization of intangible assets

994

180

—

1,174

—

Stock-based compensation expense

8,736

8,808

6,626

29,715

22,678

Acquisition related expenses

243

286

—

1,234

—

Restructuring and other charges

646

1,514

687

7,764

4,479

Litigation reserves, net

3,613

209

(89,012

)

Gain/loss on investments and others

(62

)

110

(4,931

)

Non-GAAP tax adjustments

(2,207

)

(2,692

)

(3,761

)

(3,902

)

23,055

Non-GAAP net income (loss)

7,739

3,459

(1,611

)

13,340

(26,344

)

NET INCOME (LOSS) PER DILUTED SHARE:

GAAP net income (loss) per diluted share

(0.02

)

(0.17

)

(0.31

)

(0.63

)

0.42

Amortization of intangible assets

0.03

0.01

—

0.04

—

Stock-based compensation expense

0.30

0.23

0.99

0.78

Acquisition related expenses

0.01

—

0.04

—

Restructuring and other charges

0.02

0.05

0.02

0.26

0.15

Litigation reserves, net

—

0.13

0.01

(3.08

)

Gain/loss on investments and others

—

(0.16

)

—

Non-GAAP tax adjustments

(0.08

)

(0.08

)

(0.13

)

(0.11

)

0.82

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

0.26

0.12

(0.06

)

0.44

(0.91

)

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

28,180

28,638

28,648

28,607

29,683

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

29,457

29,782

28,648

30,043

28,905

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.

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

December 31,

2025

September 28,

2025

June 29,

2025

March 30,

2025

December 31,

2024

Cash, cash equivalents and short-term investments

323,036

326,383

363,472

391,927

408,690

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

10.97

10.96

11.95

12.95

14.27

Accounts receivable, net

142,045

159,880

144,871

142,706

156,210

Days sales outstanding (DSO)

Inventories

176,456

166,561

157,305

157,898

162,539

Ending inventory turns

2.5

2.7

3.0

Weeks of channel inventory:

U.S. retail channel

11.0

11.9

12.0

10.1

9.7

U.S. distribution channel

5.0

3.5

3.8

2.4

3.3

EMEA distribution channel

4.6

5.5

4.7

4.4

4.8

APAC distribution channel

13.7

8.3

10.2

8.3

10.0

Deferred revenue (current and non-current)

31,110

32,464

33,779

35,198

35,362

Headcount

784

753

707

636

655

Non-GAAP diluted shares

29,457

29,782

30,424

30,253

28,648

NET REVENUE BY GEOGRAPHY

Three Months Ended

Twelve Months Ended

December 31, 2025

September 28, 2025

December 31, 2024

December 31, 2025

December 31, 2024

Americas

123,895

68%

128,085

69%

122,857

67%

476,020

68%

456,040

68%

EMEA

36,162

20%

36,936

20%

35,920

20%

139,602

20%

127,260

19%

APAC

22,411

12%

19,540

11%

23,642

13%

83,999

12%

90,459

13%

Total

182,468

100%

184,561

100%

182,419

100%

699,621

100%

673,759

100%

SERVICE PROVIDER NET REVENUE

Three Months Ended

Twelve Months Ended

Consumer Segment

December 31, 2025

September 28, 2025

December 31, 2024

December 31, 2025

December 31, 2024

Service provider net revenue 1

22,866

26,975

32,543

106,766

139,202

Other

70,223

66,748

69,084

250,826

246,745

Total Consumer segment net revenue

93,089

93,723

101,627

357,592

385,947

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

NETGEAR, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (CONTINUED)

(In thousands, except percentage data)

(Unaudited)

SEGMENT DATA:

Three Months Ended

December 31, 2025

September 28, 2025

December 31, 2024

Enterprise

Consumer

Total

Enterprise

Consumer

Total

Enterprise

Consumer

Total

Net revenue

89,379

93,089

182,468

90,838

93,723

184,561

80,792

101,627

182,419

Cost of revenue

43,416

63,878

107,294

44,486

67,081

111,567

45,354

77,290

122,644

Gross profit

45,963

29,211

75,174

46,352

26,642

72,994

35,438

24,337

59,775

Gross margin

51.4

31.4

41.2

51.0

28.4

39.6

43.9

23.9

32.8

Operating expenses

25,455

24,196

49,651

23,737

24,790

48,527

19,531

25,634

45,165

Contribution income (loss)

20,508

5,015

25,523

22,615

1,852

24,467

15,907

(1,297

)

14,610

Contribution margin

22.9

5.4

14.0

24.9

2.0

13.3

19.7

(1.3

8.0

Corporate and unallocated costs

(19,575

)

(20,650

)

(18,769

)

Amortization of intangible assets

(994

)

(180

)

—

Stock-based compensation expense

(8,736

)

(8,808

)

(6,626

)

Acquisition related expenses

(243

)

(286

)

—

Restructuring and other charges

(646

)

(1,514

)

(687

)

Litigation reserves, net

(73

)

(98

)

(3,613

)

Other income, net

2,201

3,028

3,624

Income (loss) before income taxes

(2,543

)

(4,041

)

(11,461

)

Twelve Months Ended

December 31, 2025

December 31, 2024

Enterprise

Consumer

Total

Enterprise

Consumer

Total

Net revenue

342,029

357,592

699,621

287,812

385,947

673,759

Cost of revenue

174,468

255,803

430,271

168,399

307,820

476,219

Gross profit

167,561

101,789

269,350

119,413

78,127

197,540

Gross margin

49.0

28.5

38.5

41.5

20.2

29.3

Operating expenses

90,841

93,100

183,941

75,408

104,138

179,546

Contribution income (loss)

76,720

8,689

85,409

44,005

(26,011

)

17,994

Contribution margin

22.4

2.4

12.2

15.3

(6.7

2.7

Corporate and unallocated costs

(79,465

)

(67,633

)

Amortization of intangible assets

(1,174

)

—

Stock-based compensation expense

(29,715

)

(22,678

)

Acquisition related expenses

(1,234

)

—

Restructuring and other charges

(7,764

)

(4,479

)

Litigation reserves, net

(209

)

89,012

Other income, net

17,376

12,672

Income (loss) before income taxes

(16,776

)

24,888