NETGEAR Inc (NTGR)

NETGEAR® Reports First Quarter 2026 ResultsApril 29, 2026 4:05 PM
Business Wire
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


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.”


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.


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


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.


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.









 



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






 






 






 






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






 






 






27






 






 






 






28






 








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






 















 




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






 















 




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






)






 






 






9






 








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






 






 






 






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






 















 




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






)






 






 






37






 








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






 






 






 






73






 






 






 






(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






 


















 




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






 






 






 






73






 






 






 






(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






 






 






 






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.












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)






 






 






79






 






 






73






 






 






79






 






 






77






 






 






78








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Inventories






 






$






169,305






 






$






176,456






 






$






166,561






 






$






157,305






 






$






157,898








Ending inventory turns






 






 






2.2






 






 






2.5






 






 






2.7






 






 






2.7






 






 






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






 






 






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.












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






)






 






 






 






 






 






 






 






 






37






 








Other income, net






 






 






 






 






 






 






 






 






1,581






 






 






 






 






 






 






 






 






 






2,201






 






 






 






 






 






 






 






 






 






8,171






 








Income (loss) before income taxes






 






 






 






 






 






 






 






$






(12,011






)






 






 






 






 






 






 






 






$






(2,543






)






 






 






 






 






 






 






 






$






(4,628






)







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260429783656/en/
NETGEAR Investor Relations

Erik Bylin

investors@netgear.com


Original: NETGEAR® Reports First Quarter 2026 Results