NETGEAR, Inc. (NTGR) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 15, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Aug 6, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the NTGR SEC filings page.
NETGEAR, Inc. (NTGR) reported $694.4M in revenue over the twelve months to Jun 28, 2026, down 0.5% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
NETGEAR’s 2025 sales recovered slightly, but margin gains failed to cover heavier costs and cash generation nearly disappeared.
The 2024 cash surge was not repeatable: operating cash flow reached$164.8M while net income was only$12M . In 2025, operating cash flow fell to$1.6M and free cash flow turned negative at-$18.9M , so the prior year’s cash generation was largely a working-capital event rather than a durable earnings engine.
Gross margin expanded from
The company retained a 2.7x current ratio in FY2025, meaning short-term assets still exceeded short-term obligations by a wide margin. At the same time, debt-to-equity rose from 0.6x to 0.7x as liabilities rose and equity fell, indicating a less conservative financing posture.
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of NETGEAR, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
NETGEAR, Inc. has an operating margin of -4.9%, meaning the company loses $5 on every $100 of revenue. This results in a profitability score of 24/100. This is down from 1.8% the prior year.
NETGEAR, Inc.'s revenue grew a modest 3.8% year-over-year to $699.6M. This slow but positive growth earns a score of 21/100.
NETGEAR, Inc. has a moderate D/E ratio of 0.68. This balance of debt and equity financing earns a leverage score of 55/100.
With a current ratio of 2.69, NETGEAR, Inc. holds $2.69 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 74/100.
While NETGEAR, Inc. generated $1.6M in operating cash flow, capex of $20.5M consumed most of it, leaving -$18.9M in free cash flow. This results in a low score of 54/100, reflecting heavy capital investment rather than weak cash generation.
NETGEAR, Inc. posts a -3.6% return on equity (ROE), meaning it loses $4 for every $100 of shareholders' equity. This results in a returns score of 21/100. This is down from 2.2% the prior year.
NETGEAR, Inc. scores 1.48, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($606.4M) relative to total liabilities ($338.4M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
NETGEAR, Inc. passes 5 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 2 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, both operating efficiency signals pass.
NETGEAR, Inc. reported a net loss of $18.0M while generating $1.6M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal.
NETGEAR, Inc. reported an operating loss of $34.2M against $11.6M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
NETGEAR, Inc. generated $168.6M in revenue in Q2 2026. This represents a decrease of 1.2% from the same quarter a year earlier. Against the prior quarter it is up 6.1%.
NETGEAR, Inc.'s EBITDA was -$4.8M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 39.0% from the same quarter a year earlier. Against the prior quarter it is up 51.4%.
NETGEAR, Inc. reported -$7.3M in net income in Q2 2026. This represents a decrease of 12.8% from the same quarter a year earlier. Against the prior quarter it is up 44.4%.
NETGEAR, Inc. earned -$0.27 per diluted share (EPS) in Q2 2026. This represents a decrease of 22.7% from the same quarter a year earlier. Against the prior quarter it is up 42.6%.
Cash & Balance Sheet
NETGEAR, Inc. recorded an outflow of $11.6M in free cash flow in Q2 2026, representing a cash shortfall after capex. This represents a decrease of 118.6% from the same quarter a year earlier. Against the prior quarter it is down 433.4%.
NETGEAR, Inc. held $174.3M in cash as of Q2 2026; long-term debt is not reported for that period.
Not reported for Q2 2026.
Margins & Returns
NETGEAR, Inc.'s gross margin was 40.2% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is up 2.7 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.3 percentage points.
NETGEAR, Inc.'s operating margin was -5.0% in Q2 2026, reflecting core business profitability. This is up 0.6 percentage points from the same quarter a year earlier. Against the prior quarter it is up 3.5 percentage points.
NETGEAR, Inc.'s net profit margin was -4.3% in Q2 2026, showing the share of revenue converted to profit. This is down 0.5 percentage points from the same quarter a year earlier. Against the prior quarter it is up 3.9 percentage points.
NETGEAR, Inc.'s ROE was -1.6% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is down 0.4 percentage points from the same quarter a year earlier. Against the prior quarter it is up 1.2 percentage points.
Capital Allocation
NETGEAR, Inc. invested $22.3M in research and development in Q2 2026. This represents an increase of 7.1% from the same quarter a year earlier. Against the prior quarter it is up 3.1%.
NETGEAR, Inc. spent $12.9M on share buybacks in Q2 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 71.7% from the same quarter a year earlier. Against the prior quarter it is down 36.1%.
NETGEAR, Inc. invested $1.5M in capex in Q2 2026, funding long-term assets and infrastructure. This represents a decrease of 58.8% from the same quarter a year earlier. Against the prior quarter it is down 62.0%.
NTGR Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $168.6M-1.2% | $158.8M-2.0% | $182.5M0.0% | $184.6M+0.9% | $170.5M+18.5% | $162.1M-1.5% | $182.4M-7.8% | $182.9M+5.4% |
| Cost of Revenue | $100.8M-5.4% | $94.5M-10.6% | $108.8M-11.5% | $112.3M-11.1% | $106.6M-4.9% | $105.7M-9.1% | $123.0M-4.6% | $126.4M+6.1% |
| Gross Profit | $67.8M+6.0% | $64.3M+14.2% | $73.6M+24.0% | $72.3M+27.9% | $64.0M+101.0% | $56.3M+16.8% | $59.4M-13.9% | $56.5M+4.0% |
| R&D Expenses | $22.3M+7.1% | $21.7M+18.3% | $23.2M+15.6% | $23.3M+11.6% | $20.8M+5.0% | $18.3M-9.5% | $20.1M-3.1% | $20.9M+0.4% |
| SG&A Expenses | $19.8M-4.2% | $19.2M+6.2% | $19.5M+9.4% | $20.6M+146.7% | $20.7M+7.8% | $18.1M0.0% | $17.9M+9.1% | $8.4M-49.5% |
| Operating Income | -$8.4M+11.5% | -$13.6M-6.2% | -$4.7M+68.6% | -$7.1M-107.4% | -$9.5M+79.6% | -$12.8M+40.9% | -$15.1M-2227.9% | $95.8M+638.9% |
| EBITDA | -$4.8M+39.0% | -$10.0M+10.3% | -$1.9M+86.1% | -$5.3M-105.4% | -$7.9M+82.5% | -$11.1M+44.9% | -$13.3M-1464.6% | $97.5M+712.5% |
| Income Tax | $513K-40.6% | $1.0M-26.8% | -$1.9M+27.8% | $736K-94.8% | $864K-16.0% | $1.4M+1050.0% | -$2.6M-103.0% | $14.2M+1292.9% |
| Net Income | -$7.3M-12.8% | -$13.0M-116.1% | -$761K+91.8% | -$4.8M-105.6% | -$6.4M+85.8% | -$6.0M+67.6% | -$9.2M+89.1% | $85.1M+1090.7% |
| EPS (Basic) | -$0.27-22.7% | -$0.47-123.8% | -$0.03+90.0% | -$0.17-105.7% | -$0.22+85.9% | -$0.21+66.7% | -$0.30+89.5% | $2.96+1120.7% |
| EPS (Diluted) | -$0.27-22.7% | -$0.47-123.8% | -$0.03+90.0% | -$0.17-105.9% | -$0.22+85.9% | -$0.21+66.7% | -$0.30+89.5% | $2.90+1100.0% |
| Diluted Shares (Avg) | 27M-6.5% | 28M-2.6% | N/A | 29M-2.5% | 29M+0.1% | 29M-2.3% | N/A | 29M+0.2% |
Not reported in any period shown, so not listed: Interest Expense.
NTGR Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $788.7M-1.8% | $801.9M-1.5% | $836.3M-1.6% | $810.8M-6.0% | $803.5M+6.6% | $814.2M+1.6% | $850.2M+0.9% | $862.6M-6.9% |
| Current Assets | $633.7M-9.3% | $642.8M-11.2% | $673.3M-11.2% | $681.9M-11.4% | $698.7M+6.2% | $723.7M+2.9% | $758.0M+2.4% | $769.3M+4.9% |
| Cash & Equivalents | $174.3M-27.7% | $183.5M-32.0% | $209.9M-26.7% | $203.5M-25.7% | $241.0M+36.1% | $269.8M+56.3% | $286.4M+117.9% | $273.8M+157.4% |
| Short-Term Investments | $93.6M-23.6% | $113.0M-7.4% | $113.1M-7.5% | $122.9M+0.8% | $122.5M+4.5% | $122.1M+4.6% | $122.2M+26.6% | $122.0M+26.4% |
| Inventory | $174.9M+11.2% | $169.3M+7.2% | $176.5M+8.6% | $166.6M+2.8% | $157.3M-16.7% | $157.9M-25.3% | $162.5M-42.1% | $162.0M-50.1% |
| Accounts Receivable | $152.8M+5.5% | $142.2M-0.4% | $142.0M-9.1% | $159.9M-9.8% | $144.9M-1.5% | $142.7M-17.4% | $156.2M-22.2% | $177.3M-1.2% |
| Long-Term Investments | $8.8M+1.0% | $8.8M+3.3% | $8.7M+4.2% | $8.7M+2.7% | $8.7M+4.4% | $8.5M+2.6% | $8.4M+1.7% | $8.5M+5.3% |
| Goodwill | $45.0M-1.7% | $45.0M+24.1% | $45.0M+24.1% | $45.8M+26.3% | $45.8M+26.2% | $36.3M0.0% | $36.3M0.0% | $36.3M0.0% |
| Total Liabilities | $332.3M+18.5% | $330.8M+18.2% | $338.4M+9.5% | $304.0M-2.7% | $280.4M-4.9% | $280.0M-3.4% | $309.2M-0.2% | $312.3M-0.5% |
| Current Liabilities | $255.4M+5.0% | $248.7M+2.8% | $250.2M-7.4% | $239.2M-11.9% | $243.1M-3.9% | $242.0M-1.0% | $270.1M+3.9% | $271.4M+2.6% |
| Non-Current Liabilities | $76.9M+106.4% | $82.1M+116.0% | $88.2M+125.8% | $64.8M+58.2% | $37.3M-10.6% | $38.0M-16.7% | $39.1M-21.5% | $40.9M-17.0% |
| Total Equity | $456.4M-12.8% | $471.2M-11.8% | $497.8M-8.0% | $506.8M-7.9% | $523.2M+13.9% | $534.2M+4.5% | $541.1M+1.6% | $550.3M-10.2% |
| Retained Earnings | -$600.9M-21.6% | -$576.1M-21.1% | -$538.9M-17.9% | -$521.1M-19.1% | -$494.3M+5.1% | -$475.8M-2.8% | -$457.1M-6.2% | -$437.4M-26.7% |
Not reported in any period shown, so not listed: Long-Term Debt.
NTGR Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$10.2M-470.1% | $1.6M+118.8% | $19.5M-9.2% | -$7.4M-106.8% | -$1.8M-109.7% | -$8.7M-150.9% | $21.5M-17.5% | $107.7M+411.3% |
| Depreciation & Amortization | $3.6M+124.0% | $3.6M+115.2% | $2.9M+64.7% | $1.8M+6.1% | $1.6M+3.0% | $1.7M+13.2% | $1.8M+7.9% | $1.7M-7.7% |
| Stock-Based Compensation | $10.0M+50.1% | $8.2M+49.3% | N/A | $8.8M+56.7% | $6.7M+13.4% | $5.5M+21.0% | N/A | $5.6M+19.9% |
| Capital Expenditures | $1.5M-58.8% | $3.8M+173.8% | $5.9M+136.1% | $9.7M+475.9% | $3.5M+53.1% | $1.4M-44.4% | $2.5M+24.5% | $1.7M+131.1% |
| Free Cash Flow | -$11.6M-118.6% | -$2.2M+78.5% | $13.6M-28.3% | -$17.1M-116.1% | -$5.3M-132.9% | -$10.1M-169.1% | $19.0M-21.0% | $106.0M+400.1% |
| Investing Cash Flow | $18.4M+217.9% | -$4.0M-215.4% | $3.9M+272.9% | -$9.7M+12.1% | -$15.6M-898.7% | -$1.3M+88.9% | -$2.3M-40.7% | -$11.0M-4077.2% |
| Financing Cash Flow | -$17.5M-53.4% | -$24.1M-263.8% | -$17.0M-160.0% | -$20.5M-66022.6% | -$11.4M+8.5% | -$6.6M+33.2% | -$6.5M-1080.4% | -$31K+98.4% |
| Share Buybacks | $12.9M+71.7% | $20.2M+146.9% | $15.0M+47.5% | $20.0M+1257.8% | $7.5M-25.0% | $8.2M-28.7% | $10.2M | $1.5M |
Not reported in any period shown, so not listed: Dividends Paid.
NTGR Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 40.2%+2.7pp | 40.5%+5.7pp | 40.4%+7.8pp | 39.1%+8.3pp | 37.5%+15.4pp | 34.8%+5.4pp | 32.6%-2.3pp | 30.9%-0.4pp |
| Operating Margin | -5.0%+0.6pp | -8.6%-0.7pp | -2.6%+5.7pp | -3.8%-56.2pp | -5.6%+27.0pp | -7.9%+5.3pp | -8.3%-7.9pp | 52.4%+62.7pp |
| Net Margin | -4.3%-0.5pp | -8.2%-4.5pp | -0.4%+4.7pp | -2.6%-49.1pp | -3.8%+27.6pp | -3.7%+7.6pp | -5.1%+37.8pp | 46.5%+51.5pp |
| Return on Equity | -1.6%-0.4pp | -2.8%-1.6pp | -0.2%+1.6pp | -0.9%-16.4pp | -1.2%+8.6pp | -1.1%+2.5pp | -1.7%+14.2pp | 15.5%+16.9pp |
| Return on Assets | -0.9%-0.1pp | -1.6%-0.9pp | -0.1%+1.0pp | -0.6%-10.4pp | -0.8%+5.2pp | -0.7%+1.6pp | -1.1%+9.0pp | 9.9%+10.8pp |
| Current Ratio | 2.48-0.4x | 2.58-0.4x | 2.69-0.1x | 2.850.0x | 2.87+0.3x | 2.99+0.1x | 2.810.0x | 2.84+0.1x |
| Debt-to-Equity | 0.73+0.2x | 0.70+0.2x | 0.68+0.1x | 0.600.0x | 0.54-0.1x | 0.520.0x | 0.570.0x | 0.57+0.1x |
| Asset Turnover | 0.210.0x | 0.200.0x | 0.220.0x | 0.230.0x | 0.210.0x | 0.200.0x | 0.210.0x | 0.210.0x |
| FCF Margin | -6.9%-3.8pp | -1.4%+4.9pp | 7.5%-2.9pp | -9.3%-67.2pp | -3.1%-14.3pp | -6.3%-15.2pp | 10.4%-1.7pp | 58.0%+78.3pp |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| NETGEAR, Inc. NTGR | FY2025 | $699.6M | -$18.0M | -2.6% | $606.4M | 42/100 |
| ADTRAN Holdings, Inc. ADTN | FY2025 | $1.1B | -$45.7M | -4.2% | $541.0M | 27/100 |
| Gilat Satellite Networks Ltd GILT | FY2025 | $451.7M | $20.7M | 4.6% | $617.0M | 66/100 |
| Digi International Inc DGII | FY2025 | $430.2M | $40.8M | 9.5% | $2.7B | 53/100 |
| Harmonic Inc HLIT | FY2025 | $360.5M | $1.2M | 0.3% | $1.1B | 63/100 |
Where NETGEAR, Inc. Ranks
Frequently Asked Questions
What is NETGEAR, Inc.'s annual revenue?
NETGEAR, Inc. (NTGR) reported $699.6M in total revenue for fiscal year 2025. This represents a 3.8% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is NETGEAR, Inc.'s revenue growing?
NETGEAR, Inc. (NTGR) revenue grew by 3.8% year-over-year, from $673.8M to $699.6M in fiscal year 2025.
Is NETGEAR, Inc. profitable?
No, NETGEAR, Inc. (NTGR) reported a net income of -$18.0M in fiscal year 2025, with a net profit margin of -2.6%.
What is NETGEAR, Inc.'s EBITDA?
NETGEAR, Inc. (NTGR) had EBITDA of -$26.2M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is NETGEAR, Inc.'s gross margin?
NETGEAR, Inc. (NTGR) had a gross margin of 38.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is NETGEAR, Inc.'s operating margin?
NETGEAR, Inc. (NTGR) had an operating margin of -4.9% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is NETGEAR, Inc.'s net profit margin?
NETGEAR, Inc. (NTGR) had a net profit margin of -2.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is NETGEAR, Inc.'s return on equity (ROE)?
NETGEAR, Inc. (NTGR) has a return on equity of -3.6% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is NETGEAR, Inc.'s free cash flow?
NETGEAR, Inc. (NTGR) recorded an outflow of $18.9M in free cash flow during fiscal year 2025. This represents a -112.1% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is NETGEAR, Inc.'s operating cash flow?
NETGEAR, Inc. (NTGR) generated $1.6M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are NETGEAR, Inc.'s total assets?
NETGEAR, Inc. (NTGR) had $836.3M in total assets as of fiscal year 2025, including both current and long-term assets.
What are NETGEAR, Inc.'s capital expenditures?
NETGEAR, Inc. (NTGR) invested $20.5M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does NETGEAR, Inc. spend on research and development?
NETGEAR, Inc. (NTGR) invested $85.7M in research and development during fiscal year 2025.
What is NETGEAR, Inc.'s current ratio?
NETGEAR, Inc. (NTGR) had a current ratio of 2.69 as of fiscal year 2025, which is generally considered healthy.
What is NETGEAR, Inc.'s debt-to-equity ratio?
NETGEAR, Inc. (NTGR) had a debt-to-equity ratio of 0.68 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is NETGEAR, Inc.'s return on assets (ROA)?
NETGEAR, Inc. (NTGR) had a return on assets of -2.1% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is NETGEAR, Inc.'s P/E ratio?
NETGEAR, Inc. (NTGR) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (trailing 12 months to June 28, 2026). The market capitalization is $606.4M as of Oct 15, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is NETGEAR, Inc.'s price-to-sales ratio?
NETGEAR, Inc. (NTGR) trades at 0.9x sales, its market capitalization divided by revenue of $694.4M revenue, trailing 12 months to June 28, 2026. The market capitalization is $606.4M as of Oct 15, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is NETGEAR, Inc.'s Altman Z-Score?
NETGEAR, Inc. (NTGR) has an Altman Z-Score of 1.48, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is NETGEAR, Inc.'s Piotroski F-Score?
NETGEAR, Inc. (NTGR) has a Piotroski F-Score of 5 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are NETGEAR, Inc.'s earnings high quality?
NETGEAR, Inc. (NTGR) reported a net loss of $18.0M while generating $1.6M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can NETGEAR, Inc. cover its interest payments?
NETGEAR, Inc. (NTGR) reported an operating loss of $34.2M against $11.6M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is NETGEAR, Inc.?
NETGEAR, Inc. (NTGR) scores 42 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.