NETGEAR, INC. (NTGR)
SIC breadcrumb: Manufacturing > Electronic And Other Electrical Equipment And Components, Except Computer Equipment > SIC 3661 Telephone & Telegraph Apparatus
SEC company page: https://www.sec.gov/edgar/browse/?CIK=1122904. Latest filing source: 0001193125-26-051346.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 699,621,000 | USD | 2025 | 2026-02-13 |
| Net income | -17,923,000 | USD | 2025 | 2026-02-13 |
| Assets | 836,271,000 | USD | 2025 | 2026-02-13 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001122904.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 1,143,445,000 | 1,039,169,000 | 1,058,816,000 | 998,763,000 | 1,255,202,000 | 1,168,073,000 | 932,472,000 | 740,840,000 | 673,759,000 | 699,621,000 |
| Net income | 75,851,000 | 19,436,000 | -9,162,000 | 25,791,000 | 58,293,000 | 49,387,000 | -68,987,000 | -104,767,000 | 12,363,000 | -17,923,000 |
| Operating income | 105,497,000 | 42,553,000 | 38,714,000 | 26,188,000 | 75,544,000 | 66,597,000 | -82,924,000 | -33,275,000 | 12,216,000 | -34,152,000 |
| Gross profit | 373,902,000 | 307,716,000 | 341,698,000 | 294,228,000 | 372,152,000 | 365,837,000 | 250,549,000 | 249,252,000 | 195,927,000 | 266,191,000 |
| Diluted EPS | 2.25 | 0.61 | -0.28 | 0.81 | 1.90 | 1.59 | -2.38 | -3.57 | 0.42 | -0.63 |
| Operating cash flow | 118,181,000 | 87,524,000 | -103,211,000 | 13,525,000 | 181,150,000 | -4,579,000 | -13,732,000 | 56,853,000 | 164,797,000 | 1,606,000 |
| Capital expenditures | 10,231,000 | 10,140,000 | 12,251,000 | 14,230,000 | 10,296,000 | 9,864,000 | 5,757,000 | 5,799,000 | 8,994,000 | 20,515,000 |
| Share buybacks | 38,252,000 | 113,161,000 | 30,000,000 | 75,946,000 | 23,800,000 | 75,000,000 | 24,377,000 | 0.00 | 33,088,000 | 50,662,000 |
| Assets | 1,184,456,000 | 1,208,564,000 | 1,043,376,000 | 955,813,000 | 1,106,039,000 | 1,078,531,000 | 1,019,785,000 | 847,142,000 | 850,230,000 | 836,271,000 |
| Liabilities | 387,637,000 | 478,079,000 | 415,824,000 | 347,120,000 | 416,655,000 | 381,716,000 | 398,930,000 | 311,647,000 | 309,164,000 | 338,448,000 |
| Stockholders' equity | 796,819,000 | 730,485,000 | 627,552,000 | 608,693,000 | 689,384,000 | 696,815,000 | 620,855,000 | 535,495,000 | 541,066,000 | 497,823,000 |
| Cash and cash equivalents | 240,468,000 | 202,727,000 | 201,047,000 | 190,208,000 | 346,460,000 | 263,772,000 | 146,500,000 | 176,717,000 | 286,444,000 | 209,904,000 |
| Free cash flow | 107,950,000 | 77,384,000 | -115,462,000 | -705,000 | 170,854,000 | -14,443,000 | -19,489,000 | 51,054,000 | 155,803,000 | -18,909,000 |
Ratios
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net margin | 6.63% | 1.87% | -0.87% | 2.58% | 4.64% | 4.23% | -7.40% | -14.14% | 1.83% | -2.56% |
| Operating margin | 9.23% | 4.09% | 3.66% | 2.62% | 6.02% | 5.70% | -8.89% | -4.49% | 1.81% | -4.88% |
| Return on equity | 9.52% | 2.66% | -1.46% | 4.24% | 8.46% | 7.09% | -11.11% | -19.56% | 2.28% | -3.60% |
| Return on assets | 6.40% | 1.61% | -0.88% | 2.70% | 5.27% | 4.58% | -6.76% | -12.37% | 1.45% | -2.14% |
| Liabilities / equity | 0.49 | 0.65 | 0.66 | 0.57 | 0.60 | 0.55 | 0.64 | 0.58 | 0.57 | 0.68 |
| Current ratio | 2.70 | 2.39 | 2.23 | 2.49 | 2.45 | 2.59 | 2.41 | 2.83 | 2.81 | 2.69 |
Financial Charts
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-01. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001122904.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q2 | 2022-07-03 | -0.30 | reported discrete quarter | ||
| 2022-Q3 | 2022-10-02 | 0.10 | reported discrete quarter | ||
| 2023-Q1 | 2023-04-02 | -0.33 | reported discrete quarter | ||
| 2023-Q2 | 2023-04-02 | -9,712,000 | reported discrete quarter | ||
| 2023-Q2 | 2023-07-02 | 173,413,000 | -0.29 | reported discrete quarter | |
| 2023-Q3 | 2023-07-02 | -8,587,000 | reported discrete quarter | ||
| 2023-Q3 | 2023-10-01 | 197,845,000 | -2.87 | reported discrete quarter | |
| 2023-Q4 | 2023-12-31 | 188,674,000 | -1,669,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 164,586,000 | -18,650,000 | -0.63 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 | -18,650,000 | reported discrete quarter | ||
| 2024-Q2 | 2024-06-30 | 143,900,000 | -1.56 | reported discrete quarter | |
| 2024-Q3 | 2024-06-30 | -45,175,000 | reported discrete quarter | ||
| 2024-Q3 | 2024-09-29 | 182,854,000 | 2.90 | reported discrete quarter | |
| 2024-Q4 | 2024-12-31 | 182,419,000 | -8,886,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-30 | 162,060,000 | -6,034,000 | -0.21 | reported discrete quarter |
| 2025-Q2 | 2025-03-30 | -6,034,000 | reported discrete quarter | ||
| 2025-Q2 | 2025-06-29 | 170,532,000 | -0.22 | reported discrete quarter | |
| 2025-Q3 | 2025-06-29 | -6,428,000 | reported discrete quarter | ||
| 2025-Q3 | 2025-09-28 | 184,561,000 | -0.17 | reported discrete quarter | |
| 2025-Q4 | 2025-12-31 | 182,468,000 | -684,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-29 | 158,819,000 | -13,040,000 | -0.47 | reported discrete quarter |
Quarterly Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
- MSPUS - Median Sales Price of Houses Sold for the United States
- HSN1F - New One Family Houses Sold: United States
- RHORUSQ156N - Homeownership Rate in the United States
- TTLCONS - Total Construction Spending: Total Construction in the United States
- RRVRUSQ156N - Rental Vacancy Rate in the United States
- TOTALSL - Total Consumer Credit Owned and Securitized
- REVOLSL - Revolving Consumer Credit Owned and Securitized
- DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
- GDP - Gross Domestic Product
- GPDI - Gross Private Domestic Investment
- GCE - Government Consumption Expenditures and Gross Investment
- PCEC - Personal Consumption Expenditures
- NETEXP - Net Exports of Goods and Services
- GFDEBTN - Federal Debt: Total Public Debt
- GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- FYFSD - Federal Surplus or Deficit
- FGRECPT - Federal Government Current Receipts
- FGEXPND - Federal Government: Current Expenditures
- MANEMP - All Employees, Manufacturing
- USCONS - All Employees, Construction
- USTRADE - All Employees, Retail Trade
- USFIRE - All Employees, Financial Activities
- USGOVT - All Employees, Government
- AWHAETP - Average Weekly Hours of All Employees, Total Private
- DGORDER - Manufacturers' New Orders: Durable Goods
- NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- BUSINV - Total Business Inventories
- EXPGS - Exports of Goods and Services
- IMPGS - Imports of Goods and Services
- IR - Import Price Index (End Use): All Commodities
- PPIFIS - Producer Price Index by Commodity: Final Demand
Latest quarter (10-Q)
Latest 10-Q source: 0001193125-26-201463.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Forward-looking Statements This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements are based upon current expectations that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, the words “believes,” “anticipates,” “plans,” “expects,” “intends,” “could,” “may,” “will,” and similar expressions are intended to identify forward-looking statements. The forward-looking statements represent NETGEAR’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, expenses, operating margin, gross margin, continued profitability and cash generation; NETGEAR's reporting structure; NETGEAR's belief of the principal competitive factors in the business, consumer, and service provider markets for networking products; expectations regarding transportation costs; expectations regarding product costs; NETGEAR’s ability to continue launching new consumer router models, providing software updates to existing products, and maintain conditional approval from the Federal Communications Commission in connection with its Covered List designation of foreign-produced routers and additional costs incurred in connection with complying with applicable regulations; NETGEAR’s strategy of capitalizing on technological inflection points, developing products that serve a broader segment and simplifying and developing service offerings that build recurring service revenue streams; expectations regarding paid revenue from paid subscription service plans; expectations regarding product mix and market demand for NETGEAR’s products and services, including Enterprise and Consumer products and subscription services and NETGEAR’s ability to respond to this demand; expectations regarding competition, competitive factors, consumer price sensitivity and demand for NETGEAR’s products and services; expectations regarding sales channels, direct online store and in-app offerings; expectations regarding macroeconomic conditions and impacts to NETGEAR’s operational and financial performance and business strategies; expectations regarding the consumer retail networking market; expectations regarding existing cash, cash equivalents and short-term investments and anticipated cash requirements; expectations regarding inventory levels, inventory management and inventory costs; expectations regarding research and development expenses, sales and marketing expenses and general and administration expenses; expectations regarding expected tax rates or tax expenses and changes in legislation related to the taxation of business entities; expectations regarding the impact of acquisitions; expectations regarding our product portfolio, and expectations regarding NETGEAR’s subscription services and service revenue. These statements are based on management’s current expectations and are subject to a number of risks and uncertainties, including but not limited to those described in “Part II—Item 1A—Risk Factors” and “Liquidity and Capital Resources” below and in our other SEC filings, including our Annual Report. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, our actual results and the timing of certain events may differ significantly from the results discussed in the forward-looking statements. All forward-looking statements in this document are based on information available to us as of the date hereof and we assume no obligation to update any such forward-looking statements except as required by law. The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and the accompanying notes contained in this quarterly report. Unless expressly stated or the context otherwise requires, the terms “we,” “our,” “us” and “NETGEAR” refer to NETGEAR, Inc. and its subsidiaries. Use of Non-GAAP Financial Measures In the following discussion and analysis, we present certain non-GAAP financial measures, including segment gross profit, segment gross margin, segment operating expenses (consisting of segment research and development, and sales and marketing), segment contribution income (loss) and segment contribution margin. These segment measures exclude amortization of intangible assets, stock-based compensation expense, acquisition related expenses, restructuring and other charges, litigation reserves, net, and other corporate-level items that are managed at the corporate level and not allocated to our segments, as further described in Note 12, Segment Information, in the Notes to Unaudited Condensed Consolidated Financial Statements in Item 1 of Part I of this Quarterly Report on Form 10-Q. Our Chief Operating Decision Maker (“CODM”) uses these non-GAAP segment measures to evaluate the operating performance of each segment, in connection with operating and resource allocation decisions, for comparison with forecasts and strategic plans, and in determining management incentive compensation. We believe these measures, when read together with our GAAP results, provide useful information to investors by facilitating period-to-period comparisons of our ongoing segment results and offering insight into how management measures segment performance. 24 Table of Contents These non-GAAP measures are not in accordance with, or an alternative for, financial measures prepared in accordance with GAAP, and may be different from non-GAAP measures used by other companies. They 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 should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. Investors should evaluate these measures only in conjunction with the corresponding GAAP measures and the reconciliation of segment contribution income (loss) to income (loss) before income taxes included in Note 12, Segment Information, in the Notes to Unaudited Condensed Consolidated Financial Statements in Item 1 of Part I of this Quarterly Report on Form 10-Q. Business and Executive Overview We are a global provider of networking technologies for businesses, homes, and service providers. We deliver a wide range of networking hardware, software, and services designed to enable reliable connectivity and security. Our mission is to unleash the full potential of connectivity with intelligent solutions that delight and protect. We are executing a multi-phase transformation to strengthen execution, reinforce our core businesses, and support long-term growth and margin expansion, while exercising strong operational discipline. Our products and services are delivered through integrated platforms that combine hardware, software, and services. Our connected solutions range from switching and wireless products that support audio and video (“AV”) over Ethernet for Pro AV applications and business networks to WiFi networking solutions, security and support services for enterprise and home networks. We continually invest in research and development to create new technologies and services and to address technological trends such as AV over Ethernet, multi-Gigabit connectivity, WiFi 7, eSIM and future technologies. Our product line enables the creation and extension of wired and wireless networks and includes services that complement and enhance our hardware offerings. These products are available in multiple configurations to address the changing needs of our customers across geographic regions. We operate and report in two segments: Enterprise (formerly NETGEAR for Business, renamed in the fourth quarter of 2025) and Consumer. The leadership team of each segment focuses on serving the unique needs of its customers through product and service development, while also managing the sales and marketing functions that support the business. During 2025, we realigned our reportable segments, first separating the former Connected Home segment into Home Networking and Mobile effective in the first quarter of 2025, and then combining Home Networking and Mobile into a single Consumer segment beginning in the fourth quarter of 2025. Prior-year segment information has been recast to conform to the current two-segment presentation. For additional information regarding the segment realignments, refer to Note 12, Segment Information, in the Notes to Unaudited Condensed Consolidated Financial Statements in Item 1 of Part I of this Quarterly Report on Form 10-Q. The Enterprise segment focuses on small and medium enterprises and provides solutions for audio and video over Ethernet for AV applications, enterprise networking solutions, including wireless local area network (“LAN”) and cloud-managed networking capabilities, software platforms for deployment and remote management, and security offerings, including firewall and secure access service edge (“SASE”) functionality, designed to address the networking, security, and manageability requirements of organizations seeking reliable and cost-effective connectivity. The Consumer segment focuses on consumers and provides high-performance, dependable and easy-to-use WiFi internet networking solutions such as WiFi 6, WiFi 6E and WiFi 7 multi-band mesh systems, routers and subscription services that provide consumers a range of value-added services focused on performance, security, privacy and premium support, together with high-performance Mobile (4G/5G) products, including WiFi 7, WiFi 6/6E-enabled portable mobile hotspots and mobile routers designed to meet the growing demand for on-the-go, high-speed and reliable internet connectivity with advanced security features. We conduct business across three geographic regions: Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific (“APAC”). Business Overview The enterprise, consumer, and service provider markets are intensely competitive and subject to rapid technological change. We expect competition to continue to intensify. We believe that the principal competitive factors in the business, consumer, and service provider markets for networking products include product breadth, price points, brand name, security and privacy, performance, features, functionality and reliability, product availability, timeliness of new product introductions, size and scope of the sales channel, ease-of-installation, maintenance and use, and customer service and support. We seek to differentiate our offerings through integrated hardware and software solutions, partner relationships, centralized management capabilities, and services. To remain competitive, we focus on investing in differentiated connectivity solutions across a range of performance tiers, complemented by subscription-based services, expanding and supporting our sales channels, strengthening engagement with customers and partners, and maintaining a high level of customer satisfaction. Our investments 25 Table of Contents align with our strategic priorities, including investments in enterprise and Pro AV initiatives and selective acquisitions intended to enhance software and security capabilities. We sell our products through multiple sales channels worldwide, including traditional and online retailers, wholesale distributors, direct market resellers (“DMRs”), managed service providers (“MSPs”), broadband service providers, and through our direct online store [Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations You should read the following discussion of our financial condition and results of operations together with the audited consolidated financial statements and notes to the financial statements included elsewhere in this Form 10-K. This discussion contains forward-looking statements that involve risks and uncertainties. The forward-looking statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about our industry, business and future financial results. Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including those discussed under “Risk Factors” in Part I, Item 1A above. This section generally discusses the results of our operations for the year ended December 31, 2025 compared to the year ended December 31, 2024. For a discussion of the year ended December 31, 2024 compared to the year ended December 31, 2023, please refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024. Business and Executive Overview We are a global provider of networking technologies for businesses, homes, and service providers. We deliver a wide range of networking hardware, software, and services designed to enable reliable connectivity and security. Our mission is to unleash the full potential of connectivity with intelligent solutions that delight and protect. We are executing a multi-phase transformation to strengthen execution, reinforce our core businesses, and support long-term growth and margin expansion, while exercising strong operational discipline. Our goal is to power extraordinary experiences where people collaborate and connect to a world of information and innovation. Our products and services are delivered through integrated platforms that combine hardware, software, and services. Our connected solutions range from switching and wireless products that support audio and video (“AV”) over Ethernet for Pro AV applications and business networks to WiFi networking solutions, security and support services for enterprise and home networks. We continually invest in research and development to create new technologies and services and to address technological trends such as AV over Ethernet, multi-Gigabit connectivity, WiFi 7, eSIM and future technologies. Our product line enables the creation and extension of wired and wireless networks and includes services that complement and enhance our hardware offerings. These products are available in multiple configurations to address the changing needs of our customers across geographic regions. In the first quarter of 2025, we realigned our business structure by separating the previously disclosed Connected Home segment into two reportable segments: Home Networking and Mobile. Effective January 1, 2025, we operated and reported in three segments for the first three fiscal quarters of 2025: NETGEAR for Business, Home Networking, and Mobile. Beginning on the first day of the fourth fiscal quarter of 2025, we streamlined our operating and reporting structure and returned to two reportable segments: Enterprise (formerly NETGEAR for Business) and Consumer (formerly reported as Connected Home), with Consumer comprising the former Home Networking and Mobile businesses. These realignments align our financial reporting more closely with our then and go-forward business strategy and customer focus. Refer to “Segment” in Note 1, The Company and Summary of Significant Accounting Policies, in Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K for additional information regarding the segment changes during 2025. The Enterprise segment focuses on small and medium enterprises and provides solutions for audio and video over Ethernet for AV applications, enterprise networking solutions, including wireless local area network (“LAN”) and cloud-managed networking capabilities, software platforms for deployment and remote management, and security offerings, including firewall and secure access service edge (“SASE”) functionality, designed to address the networking, security, and manageability requirements of organizations seeking reliable and cost-effective connectivity solutions. The Consumer segment focuses on consumers and provides high-performance, dependable and easy-to-use WiFi internet networking solutions such as multi-band WiFi 7 mesh systems and routers, subscription services offering performance, security, privacy and support, and 4G/5G mobile products, including WiFi 7 and WiFi 6/6E-enabled portable mobile hotspots and mobile routers, designed to address the demand for reliable, high-speed connectivity at home and on the go. We conduct business across three geographic territories: Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific (“APAC”). Business Overview The enterprise, consumer, and service provider markets are intensely competitive and subject to rapid technological change. We expect competition to continue to intensify. We believe that the principal competitive factors 52 Table of Contents in the business, consumer, and service provider markets for networking products include product breadth, price points, brand name, security and privacy, performance, features, functionality and reliability, product availability, timeliness of new product introductions, size and scope of the sales channel, ease-of-installation, maintenance and use, and customer service and support. We seek to differentiate our offerings through integrated hardware and software solutions, partner relationships, centralized management capabilities, and services. To remain competitive, we focus on investing in differentiated connectivity solutions across a range of performance tiers, complemented by subscription-based services, expanding and supporting our sales channels, strengthening engagement with customers and partners, and maintaining a high level of customer satisfaction. Our investments align with our strategic priorities, including investments in enterprise and Pro AV initiatives and selective acquisitions intended to enhance software and security capabilities. We sell our products through multiple sales channels worldwide, including traditional and online retailers, wholesale distributors, direct market resellers (“DMRs”), managed service providers (“MSPs”), broadband service providers, and through our direct online store at www.netgear.com. Our main wholesale distributors include Ingram Micro, TD Synnex, and D&H Distribution Company. Our retail channel includes traditional and online retail locations both domestically and internationally, such as Amazon.com (worldwide), Best Buy, Wal-Mart, Staples, Office Depot, Target, Electra (Sweden), Fnac Darty (Europe), JB HiFi (Australia), Elkjop (Norway), and Boulanger (France). Our DMRs include CDW Corporation, Insight Corporation, and PC Connection in domestic markets. In addition, we also sell products directly to broadband service providers in the United States and internationally providing WiFi, cable and 4G/5G mobile broadband products. Some of these retailers and broadband service providers purchase directly from us, while others are fulfilled through wholesale distributors around the world. A substantial portion of our net revenue is derived from a limited number of wholesale distributors, service providers and retailers. While we expect these channels to continue to be a significant part of our sales strategy, increasingly, customers are choosing to purchase products and services directly from us. We expect revenue through our direct online store or in-app offerings to continue to increase as a percentage of overall revenue for the foreseeable future. Financial Overview During the year ended December 31, 2025, our net revenue increased by $25.9 million, compared to the prior year, mainly driven by an increase of $54.2 million in our Enterprise segment, partially offset by a decrease of $28.4 million in our Consumer segment. The year-over-year increase in Enterprise net revenue was primarily attributable to continued strong demand for our Pro AV product line of managed switches, which experienced double-digit end-market sales growth, driven by higher average selling prices and increased unit volumes. The decrease in Consumer net revenue was primarily driven by lower net revenue in the service provider channel. Our gross margin percentage increased by 890 basis points, compared to the prior year, primarily attributable to a favorable product mix weighted toward Enterprise, which generally carry higher gross margin, lower inventory costs resulting from the depletion of older, and higher-cost inventory, reduced sales returns, and lower charges for excess and obsolete inventory. The prior year operating income included a $92.7 million contra-expense recognized in litigation reserves related to the successful settlement of TP-Link litigation, as well as a $10.9 million reduction in general and administrative expenses to offset related legal fees. Excluding these items, the prior year would have reflected an operating loss of $91.4 million, compared to an operating loss of $34.2 million in 2025. Geographically, net revenue from Enterprise increased in all three regions, whereas net revenue from Consumer decreased in all three regions, during the year ended December 31, 2025, compared to the prior year. Global Events Affecting our Business and Operations Macroeconomic and geopolitical trends have continued to create uncertainty in the global economic environment. Contributing factors include persistent inflation, elevated interest rates, foreign exchange rate fluctuations, particularly involving the U.S. dollar, and ongoing trade policy shifts, including tariffs related to the U.S. and key international countries as well as U.S. tariffs and intensified trade actions. Trade policy uncertainty, including the potential for expanded or modified tariff regimes, continues to affect global commerce and supply chain planning. Geopolitical tensions and episodic maritime security incidents, to the extent that disrupt global shipping routes, along with evolving supply chain disruptions and volatile ocean freight spot rates, have added complexity to the global operating environment. Ongoing geopolitical conflicts and regional instability, including disruptions affecting key global shipping routes, have contributed to continued volatility in logistics, freight availability, and transportation 53 Table of Contents costs, and increases in memory costs, driven in part by industry demand related to AI data center deployments, have created additional cost pressures within our supply chain. In light of this environment, we continue to invest in cybersecurity, product security, and sourcing to enhance the security of our products as well as our regulatory compliance readiness. The extent of impacts from these macroeconomic and geopolitical trends and from our ongoing investment and go-to-market initiatives on our operational and financial performance, including our ability to execute our business strategies in the expected time frame, will depend on future developments. The broader implications of the macroeconomic uncertainty, and any related disruptions to channel partners and freight remain unpredictable. Refer to Item 1A, Risk Factors of Part I of this Annual Report on Form 10-K for various risks and uncertainties associated with the macroeconomic trends and uncertainty. Looking forward, we expect end-user demand for our Pro AV product line of managed switches within the Enterprise segment to remain strong, and we have made progress improving our supply position for these products. In our Consumer segment, while our broader product portfolio continues to address market needs, we are seeing signs of softening demand at the start of the first quarter of 2026, which may be attributable to broader pricing pressures in the electronics market driven by rising memory costs. We also expect revenue from the service provider channel to decline compared to the same period of the prior year, reflecting in part the impact of the most recent government shutdown. As we further ramp our planned investments, with a continued focus on expanding our insourced software development capabilities and enhancing our go-to-market efforts, particularly in support of our Enterprise business, we are executing on our strategy of differentiating our portfolio through software, services, and security offerings. Within our Consumer business, we are addressing key technology transitions, including WiFi 7, WiFi 6E, WiFi 6, and 5G, through a good, better, best product strategy, while continuing to expand service offerings, strengthen direct-to-consumer capabilities, and introduce new products, including the planned launch of our eSIM-enabled M7 mobile hotspot, to support the expansion of recurring non-device revenue streams over time. Critical Accounting Estimates Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The preparation of these financial statements requires management to make assumptions, judgments and estimates that can have a significant impact on the reported amounts of assets, liabilities, revenues and expenses. We base our estimates on historical experience and on various other assumptions believed to be applicable and reasonable under the circumstances. Actual results could differ significantly from these estimates. These estimates may change as new events occur, as additional information is obtained and as our operating environment changes. On a regular basis, we evaluate our assumptions, judgments and estimates and make changes accordingly. We also discuss our critical accounting estimates with the Audit Committee of the Board of Directors. Note 1, The Company and Summary of Significant Accounting Policies, in Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K describes the significant accounting policies used in the preparation of the consolidated financial statements. We have listed below our critical accounting estimates that we believe to have the greatest potential impact on our consolidated financial statements. Historically, our assumptions, judgments and estimates relative to our critical accounting estimates have not differed materially from actual results. We do not expect the estimates and assumptions are likely to change materially. Revenue Recognition We enter into contracts with customers to sell products and services, and while some sales agreements contain standard terms and conditions, there are agreements that contain non-standard terms and conditions and include promises to transfer multiple goods or services. As a result, significant interpretation and judgment is sometimes required to determine the appropriate accounting for these transactions including: (1) whether performance obligations are considered distinct and required to be accounted for separately or combined, including allocation of transaction price; (2) combining contracts that may impact the allocation of the transaction price between product and services; and (3) estimating and accounting for variable consideration, including rights of return, sales incentives, and price protection as a reduction of the transaction price. Our standard obligation to our direct customers generally provides for a full refund if such products are not merchantable or are found to be damaged or defective. In determining estimates for future returns, we estimate variable 54 Table of Contents consideration at the expected value based on management’s analysis of historical data, channel inventory levels, current economic trends and changes in customer demand. Sales incentives and price protection are determined based on a combination of the actual amounts committed and through estimating future expenditure based upon historical customary business practice, historical pricing information, current pricing trends, and channel inventory levels. We continue to assess variable consideration estimates such that it is probable that a significant reversal of revenue will not occur. Provisions for Excess and Obsolete Inventory On a quarterly basis we assess the value of our inventory and write down its value for estimated excess and obsolete inventory based upon assumptions about the future demand by reviewing inventory quantities on hand and on order under non-cancelable purchase commitments in comparison to our estimated forecast of product demand to determine what inventory, if any, is not saleable at or above cost. Our analysis is based on the demand forecast which takes into account market conditions, product development plans, product life expectancy and other factors. Based on this analysis, we write down the affected inventory value for estimated excess and obsolescence charges. At the point of loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. As demonstrated during prior years, demand for our products can fluctuate significantly. If actual demand is lower than our forecasted demand and we fail to reduce our manufacturing accordingly, we could be required to write down the value of additional inventory, which would have a negative effect on our gross profit. Goodwill Goodwill is not amortized, but instead tested for impairment on an annual basis, or more frequently if certain events or indicators of potential impairment exist, and goodwill is written down when it is determined to be impaired. We completed our annual impairment test of goodwill as of the first day of the fourth fiscal quarter of 2025, or September 29, 2025. We identified the reporting units for the purpose of goodwill impairment testing as Enterprise and Consumer and performed a qualitative test for the Enterprise reporting unit as the Consumer reporting unit has had no goodwill since the first fiscal quarter of 2022. Based upon the results of the qualitative testing, we concluded that it was more-likely-than-not that the fair value of the Enterprise reporting unit was greater than its carrying value and therefore, no further quantitative impairment testing was required. No goodwill impairment was recognized for our Enterprise reporting unit in the years ended December 31, 2025, 2024 and 2023. Refer to Note 3, Balance Sheet Components, in Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K for details. For our Enterprise reporting unit, we do not believe it is likely that there will be a material change in the estimates or assumptions we use to test for impairment losses on goodwill. However, if the actual results are not consistent with our estimates or assumptions, we may be exposed to a future impairment charge that could be material. Income Taxes We account for income taxes under an asset and liability approach. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences resulting from different treatments for tax versus accounting of certain items, such as accruals and allowances not currently deductible for tax purposes. These differences result in deferred tax assets and liabilities, which are included within the consolidated balance sheets. We must then assess the likelihood that our deferred tax assets will be recovered from future taxable income and to the extent we believe that recovery is not more likely than not, we must establish a valuation allowance. Our assessment considers the recognition of deferred tax assets on a jurisdictional basis. Accordingly, in assessing our future taxable income on a jurisdictional basis, we consider the effect of its transfer pricing policies on that income. We have recorded a full valuation allowance against U.S. federal and state deferred tax assets since the recovery of the assets is considered uncertain. We believe that deferred tax assets recorded for foreign jurisdictions are recoverable; however, if there were a change in our ability to recover these assets, we would be required to take a charge in the period in which we determined that recovery was not more likely than not. 55 Table of Contents Uncertain tax provisions are recognized under guidance that provides that a company should use a more-likely-than-not recognition threshold based on the technical merits of the income tax position taken. Income tax positions that meet the more-likely-than-not recognition threshold should be measured in order to determine the tax benefit to be recognized in the financial statements. We include interest expense and penalties related to uncertain tax positions as additional tax expense. The Company made an accounting policy election related to accounting for the tax effects of Global Intangible Low-Taxed Income (“GILTI”) that was implemented as part of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”), enacted on December 22, 2017. With regard to GILTI, the Company accounts for the tax effects as a period cost, if and when incurred. Recent Accounting Pronouncements For a complete description of recent accounting pronouncements, including the expected dates of adoption and estimated effects on financial condition and results of operations, refer to Note 1, The Company and Summary of Significant Accounting Policies, in Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K. Results of Operations The following table sets forth, for the periods presented, the consolidated statements of operations data, which is derived from the accompanying consolidated financial statements: Year Ended December 31, (In thousands, except percentage data) 2025 2024 2023 Net revenue $ 699,621 100.0% $673,759 100.0% $ 740,840 100.0% Cost of revenue 433,430 62.0% 477,832 70.9% 491,588 66.4% Gross profit 266,191 38.0% 195,927 29.1% 249,252 33.6% Operating expenses: Research and development 85,721 12.3% 81,082 12.0% 83,295 11.2% Sales and marketing 127,733 18.2% 123,694 18.4% 127,778 17.4% General and administrative 78,916 11.3% 63,468 9.4% 66,243 8.9% Litigation reserves, net 209 0.0% (89,012) (13.2)% 178 0.0% Restructuring and other charges 7,764 1.1% 4,479 0.7% 3,962 0.5% Intangible assets impairment — —% — —% 1,071 0.1 % Total operating expenses 300,343 42.9% 183,711 27.3% 282,527 38.1% Income (loss) from operations (34,152) (4.9)% 12,216 1.8% (33,275) (4.5)% Other income, net 17,376 2.5% 12,672 1.9% 14,139 1.9% Income (loss) before income taxes (16,776) (2.4)% 24,888 3.7% (19,136) (2.6)% Provision for income taxes 1,147 0.2% 12,525 1.9% 85,631 11.5% Net income (loss) $ (17,923) (2.6)% $12,363 1.8% $ (104,767) (14.1)% 56 Table of Contents Net Revenue by Geographic Region Our net revenue consists of gross product shipments and service revenue, less allowances for estimated sales returns, price protection, end-user customer rebates and other channel sales incentives deemed to be a reduction of revenue per the authoritative guidance for revenue recognition, and net changes in deferred revenue. For reporting purposes, revenue is generally attributed to each geographic region based upon the location of the customer. Year Ended December 31, (In thousands, except percentage data) 2025 % Change 2024 % Change 2023 Americas $ 476,020 4.4% $ 456,040 (9.6)% $ 504,349 Percentage of net revenue 68.0 % 67.7 % 68.1 % EMEA $ 139,602 9.7% $ 127,260 (14.5)% $ 148,922 Percentage of net revenue 20.0 % 18.9 % 20.1 % APAC $ 83,999 (7.1)% $ 90,459 3.3% $ 87,569 Percentage of net revenue 12.0 % 13.4 % 11.8 % Total net revenue $ 699,621 3.8% $ 673,759 (9.1)% $ 740,840 2025 vs 2024 Americas Net revenue in Americas increased in the year ended December 31, 2025, primarily attributable to an increase of 22.5% in Enterprise segment's net revenue, partially offset by a decline of 4.0% in Consumer segment's net revenue compared to the prior year. Enterprise net revenue increased primarily due to higher demand for Pro AV product line of managed switches, in addition to benefitting from inventory optimization efforts with channel partners completed in the first half of the prior year. The decline in Consumer segment's net revenue was mainly due to lower net revenue in the service provider channel. EMEA Net revenue in EMEA increased in the year ended December 31, 2025, compared to the prior year, primarily attributable to a 19.6% increase in Enterprise segment's net revenue , partially offset by a 13.2% decrease in Consumer segment net revenue. The net revenue increase in Enterprise was mainly driven by continued strong demand for the Pro AV product line of managed switches in addition to benefitting from inventory optimization efforts with channel partners completed in the first half of the prior year. The decline in Consumer segment's net revenue was mainly due to lower net revenue in both the retail and the service provider channels. APAC Net revenue in APAC decreased in the year ended December 31, 2025, compared to the prior year, mainly attributable to a decline of 30.2% in Consumer segment's net revenue, primarily driven by lower net revenue in both the retail and the service provider channels. The decline is partially offset by an increase of 8.0% in Enterprise segment’s net revenue, primarily driven by continued strong demand for the Pro AV product line of managed switches. For further discussions specific to our Enterprise and Consumer segments, refer to the "Segment Information" section below. Cost of Revenue and Gross Margin Cost of revenue consists primarily of the following: the cost of finished products from our third party manufacturers; overhead costs, including purchasing, product planning, inventory control, warehousing and distribution logistics; third-party software licensing fees; inbound freight; import duties/tariffs; warranty costs 57 Table of Contents associated with returned goods; write-downs for excess and obsolete inventory; amortization of certain acquired intangible assets and software development costs; and costs attributable to the provision of service offerings. We outsource our manufacturing, warehousing and distribution logistics. We believe this outsourcing strategy allows us to better manage our product costs and gross margin. Our gross margin can be affected by a number of factors, including fluctuation in foreign exchange rates, sales returns, changes in average selling prices, end-user customer rebates and other channel sales incentives, changes in our cost of goods sold due to fluctuations and increases in prices paid for components, net of vendor rebates, royalty and licensing fees, warranty and overhead costs, inbound freight and duty/tariffs, conversion costs, charges for excess or obsolete inventory, amortization of acquired intangible assets and capitalized software development costs. The following table presents costs of revenue and gross margin, for the periods indicated: Year Ended December 31, (In thousands, except percentage data) 2025 % Change 2024 % Change 2023 Cost of revenue $ 433,430 (9.3)% $ 477,832 (2.8)% $ 491,588 Gross margin percentage 38.0% 29.1% 33.6% 2025 vs 2024 Gross margin percentage increased in the year ended December 31, 2025, compared to the prior year, primarily attributable to a higher mix of Enterprise products, which generally carry higher gross margins, lower inventory costs resulting from the depletion of older, higher-cost inventory, reduced sales returns, and lower charges for excess and obsolete inventory. We expect our gross margin in the first fiscal quarter of 2026 to be higher than the same quarter of 2025 level, mainly driven by a higher mix of Enterprise products. Memory cost increases, driven in part by industry demand related to AI data center deployments, represent emerging pressure within our cost structure. While we have mitigated the impact to date and currently expect limited gross margin impact in the first half of fiscal 2026, continued escalation in memory costs could adversely affect gross margin in the second half of the year. The potential impact is greater in our Consumer business, where memory represents a higher proportion of product costs, while the Enterprise business is less sensitive due to product mix and pricing dynamics. We are taking mitigation actions; however, these measures may not fully offset future cost pressures. Forecasting gross margin percentages is difficult, and there are a number of risks related to our ability to maintain or improve our current gross margin levels. Our cost of revenue as a percentage of net revenue can vary significantly based upon factors such as: uncertainties surrounding revenue levels, broad-based inflationary pressures and the uncertain macroeconomic environment, future pricing and/or potential discounts as a result of the economy or in response to the strengthening of the U.S. dollar in our international markets, competition, the timing of sales, and related production level variances; import customs duties and imposed tariffs; changes in technology; changes in product mix; expenses associated with writing off excessive or obsolete inventory; variability of stock-based compensation costs; royalties to third parties; fluctuations in freight costs; manufacturing and purchase price variances; changes in prices on commodity components; and warranty costs. We expect that revenue derived from paid subscription service plans will continue to increase in the future, which may have a positive impact on our gross margin. However, we will continue to experience fluctuations in our gross margin due to the factors discussed above. Operating Expenses Research and Development Research and development expenses consist primarily of personnel expenses, payments to suppliers for design services, safety and regulatory testing, product certification expenditures to qualify our products for sale into specific markets, prototypes, IT and facility allocations, and other consulting fees. Research and development expenses are recognized as they are incurred. Our research and development organization is focused on enhancing our ability to 58 Table of Contents introduce innovative and easy-to-use products and services. The following table presents research and development expenses, for the periods indicated: Year Ended December 31, (In thousands, except percentage data) 2025 % Change 2024 % Change 2023 Research and development $ 85,721 5.7% $ 81,082 (2.7)% $ 83,295 2025 vs 2024 The increase in research and development expenses in the year ended December 31, 2025, compared to the prior year, was primarily driven by a higher personnel-related expenditure of $7.1 million, mainly due to higher head count and higher variable compensation, largely in support of our Enterprise business, including expanded software development capabilities. The increase was partially offset by a decrease in engineering projects and outside professional service fees of $2.6 million. We believe that innovation and technological leadership is critical to our future success, and we are committed to continuing a significant level of research and development to develop new technologies, products and services. We expect research and development expenses in the first fiscal quarter of 2026 to be higher in absolute dollars than the same quarter of 2025 level. We continually invest in research and development to create new technologies and services and to address technological trends such as AV over Ethernet, multi-Gigabit connectivity, WiFi 7, eSIM and future technologies. Our research and development efforts increasingly focus on software, security, and capabilities that support subscription-based services and margin improvement. Our Enterprise segment will receive most of our incremental investments for 2026 with a focus on in-sourcing our software capabilities and expanding our product portfolio to grow our share in the sizable AV and enterprise WiFi markets. Research and development expenses may fluctuate depending on the timing and number of development activities and could vary significantly as a percentage of net revenue, depending on actual revenues achieved in any given quarter. Sales and Marketing Sales and marketing expenses consist primarily of advertising, trade shows, corporate communications and other marketing expenses, product marketing expenses, outbound freight costs, amortization of certain intangible assets, personnel expenses for sales and marketing staff, technical support expenses, and IT and facility allocations. The following table presents sales and marketing expenses, for the periods indicated: Year Ended December 31, (In thousands, except percentage data) 2025 % Change 2024 % Change 2023 Sales and marketing $ 127,733 3.3% $ 123,694 (3.2)% $ 127,778 2025 vs 2024 The increase in sales and marketing expenses in the year ended December 31, 2025, compared to the prior year, was primarily attributable to a higher personnel-related expenditure of $11.1 million, mainly due to higher head count and higher variable compensation, reflecting investments to expand our go-to-market capabilities in support of our Enterprise business. The increase was partially offset by a decrease in brand marketing expenditures of $3.6 million and outside professional service fees of $3.1 million. We expect sales and marketing expenses in the first fiscal quarter of 2026 to be higher in absolute dollars than the same quarter of 2025 level. Expenses may fluctuate depending on revenue levels achieved as certain expenses, such as commissions, are determined based upon the revenues achieved. Forecasting sales and marketing expenses is highly dependent on expected revenue levels and could vary significantly depending on actual revenue achieved in any given quarter. Marketing expenses may also fluctuate depending upon the timing, extent and nature of marketing programs. Marketing expenditure committed with a customer is generally recorded as a reduction of revenue per authoritative guidance. 59 Table of Contents General and Administrative General and administrative expenses consist of salaries and related expenses for executives, finance and accounting, human resources, information technology, professional fees, including legal costs associated with defending claims against us and business acquisition related expenses, allowance for doubtful accounts, IT and facility allocations, and other general corporate expenses. The following table presents general and administrative expenses, for the periods indicated: Year Ended December 31, (In thousands, except percentage data) 2025 % Change 2024 % Change 2023 General and administrative $ 78,916 24.3% $ 63,468 (4.2)% $ 66,243 2025 vs 2024 The increase in general and administrative expenses in the year ended December 31, 2025, compared to the prior year, was primarily due to the absence of a $10.9 million reduction in expenses recorded in the prior year period to offset legal fees associated with the successful TP-Link litigation settlement. The increase was also driven by a higher personnel-related expenditure of $6.6 million, primarily due to increased stock-based compensation associated with executive transitions, and higher variable compensation. We expect general and administration expenses in the first fiscal quarter of 2026 to be in line with or slightly higher than the same quarter of 2025 level. General and administrative expenses could fluctuate depending on a number of factors, including the level and timing of expenditures associated with litigation defense costs in connection with the litigation matters described in Note 9, Commitments and Contingencies, in Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K. Future general and administrative expense increases or decreases in absolute dollars are difficult to predict due to the lack of visibility of certain costs, including legal costs associated with defending claims against us, as well as legal costs associated with asserting and enforcing our intellectual property portfolio and other factors. Litigation Reserves, Net The following table presents litigation reserves, net for the periods indicated: Year Ended December 31, (In thousands, except percentage data) 2025 % Change 2024 % Change 2023 Litigation reserves, net $ 209 ** $ (89,012) ** $ 178 ___________________ ** Percentage change not meaningful. 2025 vs 2024 A net litigation expense of $0.2 million was incurred in the year ended December 31, 2025, compared to a net benefit of $89.0 million in the prior year. The prior year net benefit consisted of a $92.7 million contra-expense related to a litigation settlement payment from TP-Link, partially offset by a $3.6 million litigation reserve. Restructuring and Other Charges The following table presents restructuring and other charge for the periods indicated: Year Ended December 31, (In thousands, except percentage data) 2025 % Change 2024 % Change 2023 Restructuring and other charges $ 7,764 73.3% $ 4,479 13.0% $ 3,962 60 Table of Contents 2025 vs 2024 The increase in restructuring and other charges in the year ended December 31, 2025, compared to the prior year, was primarily due to restructuring activities initiated in January 2025 and carried out throughout the year. This restructuring was aimed at reducing costs, and reinvesting into the business to capitalize on our highest priority opportunities to drive revenue growth and improve profitability. For a detailed discussion of restructuring and other charges, refer to Note 14. Restructuring and Other Charges, in Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K. Other Income, Net Other income, net consists of interest income, which represents amounts earned and incurred on our cash, cash equivalents and short-term investments, and other income and expenses, which primarily represents gains and losses on transactions denominated in foreign currencies, gains and losses on investments, imputed interest expense, and other non-operating income and expenses, including gain on litigation settlements. The following table presents other income, net for the periods indicated: Year Ended December 31, (In thousands, except percentage data) 2025 % Change 2024 % Change 2023 Other income, net $ 17,376 37.1% $ 12,672 (10.4)% $ 14,139 2025 vs 2024 The increase in other income, net in the year ended December 31, 2025, compared to the prior year, was primarily due to $4.7 million of proceeds from the sale of patents in the current year, and higher net gains on foreign currency transactions and contracts, offset by lower interest income resulting from lower average cash and short-term investment balances. For details on the changes in Other income, net, refer to Note 7, Other Income, Net, in Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K. Provision for (Benefit from) Income Taxes Year Ended December 31, (In thousands, except percentage data) 2025 % Change 2024 % Change 2023 Provision for income taxes $ 1,147 (90.8)% $ 12,525 (85.4)% $ 85,631 Effective tax rate (6.8)% 50.3% (447.5)% 2025 vs 2024 The tax expense in the 2025 versus 2024 years resulted primarily from the change in valuation allowance, partially offset by the benefit from certain changes in estimate upon filing the 2024 U.S. federal tax return and the recognition of uncertain tax benefits. We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Our future foreign tax rate could be affected by changes in the composition in earnings in countries with tax rates differing from the U.S. federal rate. We are currently under examination in various U.S. and foreign jurisdictions. 61 Table of Contents Segment Information As described above, during 2025 we realigned our business structure and reportable segments. Effective January 1, 2025, we began reporting in three segments, following a realignment that separated the previously reported Connected Home segment into Home Networking and Mobile. Beginning on the first day of the fourth fiscal quarter of 2025, we streamlined our operating and reporting structure and returned to two reportable segments. These changes did not impact our segment financial information for the year ended December 31, 2025, and prior-period segment information has been presented on a comparable basis. Accordingly, the impact on the full-year disclosure relates primarily to segment naming, reflecting the Enterprise (formerly NETGEAR for Business) and Consumer (previously reported as Connected Home) segments. Additional information on the changes, a description of our products and services, as well as segment financial data, for each segment and a reconciliation of segment contribution income (loss) to income (loss) before income taxes can be found in Note 1, , The Company and Summary of Significant Accounting Policies, and Note 12, Segment Information, in Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K. Enterprise Segment Year Ended December 31, (In thousands, except percentage data) 2025 % Change 2024 % Change 2023 Net revenue $ 342,029 18.8% $ 287,812 (2.1)% $ 293,975 Percentage of net revenue 48.9% 42.7% 39.7% Contribution income $ 76,720 74.3% $ 44,005 (22.5)% $ 56,765 Contribution margin 22.4% 15.3% 19.3% 2025 vs 2024 Enterprise net revenue increased in the year ended December 31, 2025, compared to the prior year, primarily driven by continued strong demand for Pro AV product line of managed switches. This growth reflected double-digit end-market sales expansion, driven by higher average selling prices and increased unit volumes. We also saw more predictable performance aligned to the market as a result of inventory optimization efforts with our channel partners completed in the first half of the prior year. Geographically, Enterprise net revenue increased in all three regions, compared to the prior year. Enterprise segment's contribution income increased in the year ended December 31, 2025, compared to the prior year, primarily due to higher net revenue and improved gross margins, mainly driven by a higher mix of our Pro AV product line of managed switches, reduced charges for excess or obsolete inventory. These increases were partially offset by higher operating expenses, primarily driven by increased headcount and related investments as we continue to focus on and shift resources toward growing our Enterprise business. Consumer Segment Year Ended December 31, (In thousands, except percentage data) 2025 % Change 2024 % Change 2023 Net revenue $ 357,592 (7.3)% $ 385,947 (13.6)% $ 446,865 Percentage of net revenue 51.1% 57.3% 60.3% Contribution income (loss) $ 8,689 ** $ (26,011) ** $ 9,545 Contribution margin 2.4% (6.7)% 2.1% ___________________ ** Percentage change not meaningful. 62 Table of Contents 2025 vs 2024 Consumer net revenue decreased in the year ended December 31, 2025, compared to the prior year, primarily driven by a decline in net revenue from service provider channel, partially offset by increased revenue from WiFi 7 products. Geographically, Consumer net revenue decreased across all three regions, compared to the prior year. Consumer segment generated contribution income in the year ended December 31, 2025, compared to contribution loss in the prior year, primarily driven by higher gross margin, which benefited from a more favorable product mix of WiFi 7 products, higher service revenue, lower product costs, reduced sales returns, warranty, and contra-revenue marketing expenses, and lower charges for excess and obsolete inventory. Additionally, operating expenses as a percentage of net revenue declined, largely due to the restructuring initiated in January 2025 and carried out throughout the year. As disclosed above, increases in memory costs represent emerging cost pressure for the Consumer business. While we currently expect limited impact in the first half of fiscal 2026, further escalation in memory costs could adversely affect Consumer segment gross margin in the second half of 2026 due to the segment’s greater sensitivity to component cost pressures. Liquidity and Capital Resources Our principal sources of liquidity are cash, cash equivalents, short-term investments and cash generated from operations. As of December 31, 2025, we had cash, cash equivalents and short-term investment of $323.0 million, a decrease of $85.7 million from December 31, 2024. As of December 31, 2025, approximately 28% of our cash and cash equivalents and short-term investments were outside of the U.S. The cash and cash equivalents and short-term investments balances outside of the U.S. are subject to fluctuation based on the settlement of intercompany balances. As we repatriate these funds in accordance with our designation of funds not permanently reinvested outside of the U.S., we will be required to pay income taxes in certain U.S. states and applicable foreign withholding taxes during the period when such repatriation occurs. We have recorded deferred taxes for the tax effect of repatriating the funds to the U.S. Cash Flows The following table presents our cash flows for the periods presented: Year Ended December 31, (In thousands) 2025 2024 2023 Cash provided by operating activities $ 1,606 $ 164,797 $ 56,853 Cash used in investing activities (22,641) (26,157) (27,433) Cash provided by (used in) financing activities (55,505) (28,913) 797 Net cash increase (decrease) $ (76,540) $ 109,727 $ 30,217 2025 vs 2024 Operating activities Net cash provided by operating activities decreased by $163.2 million in the year ended December 31, 2025, compared to the prior year, primarily due to $103.6 million of pre-tax net proceeds received in the prior year from the TP- Link litigation settlement, as well as unfavorable working capital movements in the current year. Our accounts payable (excluding payables related to property and equipment) decreased from $57.4 million as of December 31, 2024, to $41.6 million as of December 31, 2025, primarily due to the timing of inventory receipts and supplier payments. Inventory increased from $162.5 million as of December 31, 2024 to $176.5 million as of December 31, 2025, as we work to realign inventory carrying levels with projected demands. Accounts receivable decreased from $156.2 million as of December 31, 2024, to $142.0 million as of December 31, 2025, primarily due to the timing of cash collections. 63 Table of Contents Investing activities Net cash used in investing activities decreased by $3.5 million in the year ended December 31, 2025, compared to the prior year, mainly due to lower net purchases of short-term investments, partially offset by payments related to the acquisition of Exium, and higher purchases of property and equipment, primarily related to leasehold improvements for our new headquarters office. Financing activities Net cash used in financing activities increased by $26.6 million in the year ended December 31, 2025, compared to the prior year, primarily due to higher repurchases of our common stock and higher payments for restricted stock unit tax withholdings. Based on our current plans and market conditions, we believe that our existing cash, cash equivalents and short-term investments, together with cash generated from operations, will be sufficient to satisfy our anticipated cash requirements, including contractual and other obligations, capital expenditures, and commitments for business operations, for the next twelve months and the foreseeable future. However, we may require or desire additional funds to support our operating expenses and capital requirements or for other purposes, such as acquisitions, and may seek to raise such additional funds through public or private equity financing or from other sources. We cannot assure you that additional financing will be available at all or that, if available, such financing would be obtainable on terms favorable to us and would not be dilutive. Our future liquidity and cash requirements will depend on numerous factors, including the introduction of new products and potential acquisitions of related businesses or technology. Stock Repurchases and Restricted Stock Unit Withholdings From time to time, our Board of Directors has authorized programs under which we may repurchase shares of our common stock. Under the authorizations, the timing and actual number of shares subject to repurchase are at the discretion of management and are contingent on a number of factors, such as levels of cash generation from operations, cash requirements for acquisitions and the price of our common stock. As of December 31, 2025, approximately 1.5 million shares remained authorized for repurchase under the repurchase program. We repurchased and retired, reported based on trade date, approximately 1.9 million and 2.1 million shares of common stock, at a cost of approximately $50.0 million and $33.6 million under the repurchase authorization during the years ended December 31, 2025 and December 31, 2024, respectively. Under the Inflation Reduction Act signed into law in 2022, the excise tax on stock repurchases was approximately $0.1 million and $0.2 million for the years ended December 31, 2025 and 2024, respectively. We also withheld and reported, based on trade date, approximately 515,000 shares and 226,000 shares of common stock, at a cost of approximately $13.8 million and $3.4 million during the years ended December 31, 2025 and December 31, 2024, respectively, to facilitate the administrative process of withholding and remitting personal income and payroll taxes for individuals receiving Restricted Stock Units. For a detailed discussion of our common stock repurchases, refer to Note 10, Stockholders’ Equity, in Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K. We remain confident in our ability to generate meaningful levels of cash, and plan to continue to opportunistically repurchase shares in the future. 64 Table of Contents Contractual and Other Obligations The following table summarizes our non-cancelable short-term and long-term contractual and other obligations as of December 31, 2025: (In thousands) Short-term Long-term Total Purchase obligations (1) $ 55,348 $ — $ 55,348 Operating leases (2) 12,925 54,113 67,038 Other non-trade commitments (3) 11,910 31,357 43,267 $ 80,183 $ 85,470 $ 165,653 (1) Represent non-cancellable inventory-related purchase agreements with suppliers. A further $200.5 million of purchase orders beyond contractual termination periods remained outstanding. Consequently, we may incur expenses for materials and components, such as chipsets purchased by the supplier to fulfill the purchase order if the purchase order is cancelled. Expenses incurred in respect of cancelled purchase orders have historically not been significant relative to the original order value. For a detailed discussion on our purchase obligations, refer to Note 9, Commitments and Contingencies, in Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K. Our commitments for property and equipment purchases as of December 31, 2025 were not material. (2) Represent undiscounted non-cancellable remaining lease payments. These balances are included on our consolidated balance sheets. These lease payments are consistent with contractual terms and are not expected to differ significantly, unless a substantial change in our headcount needs requires us to exit an office facility early or expand our occupied space. For a detailed discussion on our operating leases, refer to Note 15, Leases, in Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K. (3) Represent non-cancellable commitments pertaining to non-trade activities. For a detailed discussion, refer to Note 9, Commitments and Contingencies, in Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K. In addition, as of December 31, 2025, we had $6.5 million of total gross unrecognized tax benefits and related interest and penalties. The timing of any payments that could result from these unrecognized tax benefits will depend upon a number of factors. The unrecognized tax benefits have been excluded from the contractual obligations table because reasonable estimates cannot be made of whether, or when, any cash payments for such items might occur. The possible reduction in liabilities for uncertain tax positions in multiple jurisdictions that may impact the statements of operations in the next 12 months was approximately $1.4 million, excluding the interest, penalties and the effect of any related deferred tax assets or liabilities. Our contractual and other obligations are expected to be funded by our existing cash, cash equivalents and short-term investments, together with cash generated from operations. 65 Table of Contents