NETGEAR Q3 2026 revenue falls 9.3% to $167M

Manufacturing output and product availability are expected to constrain near-term revenue into Q1 2027, alongside fourth-quarter revenue guidance of $160 million to $175 million.

Available on EDGAR 11/04/2026 - 04:17 PM EST Accepted by SEC EDGAR 11/04/2026 - 04:16 PM EST Learn about SEC filing dates

Rhea-AI Filing Summary

NETGEAR, Inc. reported third-quarter 2026 revenue of $167.345 million, down 9.3% year over year. GAAP gross margin was 40.1%, up 100 basis points; GAAP operating loss was $13.701 million versus $7.069 million a year earlier, and GAAP loss per share was $(0.45) versus $(0.17). Non-GAAP operating income was $3.348 million and non-GAAP EPS was $0.13. Enterprise revenue was $90.718 million, down 0.1%, with non-GAAP gross margin of 53.2%, up 220 basis points; Consumer revenue was $76.627 million, down 18.2%.

Management said manufacturing challenges at a key production partner constrained shipments and that near-term revenue outlook remains constrained by manufacturing output and product availability, with these constraints expected to persist into Q1 2027. NETGEAR expects fourth-quarter revenue of $160 million to $175 million, GAAP operating margin of (8.7)% to (5.7)% and non-GAAP operating margin of 0% to 3%. Subscription and services annual recurring revenue grew approximately 12% year over year to $42.5 million. Cash and short-term investments were $242.092 million at quarter end, and Q3 repurchases were approximately $15 million.

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Positive

• None.

Negative

• Moderate pointThird-quarter revenue declined 9.3% year over year to $167.345 million.
• Moderate pointGAAP net loss increased to $12.274 million from $4.777 million a year earlier.
• Minor pointConsumer revenue declined 18.2% year over year to $76.627 million.

Filing Explained

NETGEAR reported 26,676,847 common shares outstanding on September 27, 2026, versus 27,943,198 on December 31, 2025, so the reported share count was lower at quarter-end.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Third-quarter net revenue: $167.345 million GAAP net loss: $(12.274) million Non-GAAP operating income: $3.348 million +5 more

8 metrics

Third-quarter net revenue $167.345 million Three months ended September 27, 2026; down 9.3% year over year

GAAP net loss $(12.274) million Three months ended September 27, 2026; compared with $(4.777) million a year earlier

Non-GAAP operating income $3.348 million Three months ended September 27, 2026

Enterprise non-GAAP gross margin 53.2% Third quarter 2026; up 220 basis points year over year

Consumer revenue $76.627 million Third quarter 2026; down 18.2% year over year

Fourth-quarter net revenue guidance $160 million to $175 million Fourth quarter 2026

Annual recurring revenue Approximately $42.5 million Subscription and services; approximately 12% growth year over year

Cash and short-term investments $242.092 million As of September 27, 2026

Key Terms

Annual recurring revenue, Non-GAAP operating margin, Contribution margin, Days sales outstanding (DSO), +1 more

5 terms

Annual recurring revenue financial

"total annual recurring revenue"

Annual recurring revenue is the predictable amount of money a company expects to earn each year from ongoing customer subscriptions or contracts. It helps businesses understand how much steady income they can count on, much like a subscription service that charges customers every month or year. This figure is important because it shows the company's stability and growth potential.

Non-GAAP operating margin financial

"a non-GAAP operating margin of 2.0%"

Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.

Contribution margin financial

"Non-GAAP contribution margin was 24.5%"

Contribution margin is the amount of money left from a product’s sale after paying the costs that rise with each unit sold (like materials or hourly labor); it can be shown per unit or as a percentage of the sale price. Investors care because it shows how much each sale contributes to covering fixed expenses and generating profit — think of each sale as a slice of pie where the contribution margin is the slice available to pay the rent and add to earnings.

Days sales outstanding (DSO) financial

"Days sales outstanding (DSO)"

Days sales outstanding (DSO) measures the average number of days a company takes to collect payment after making a sale. It matters to investors because it shows how quickly cash comes in: shorter DSO is like being paid promptly after delivering work, supporting smoother cash flow and lower credit risk, while longer DSO can signal slow collections, potential liquidity stress, or weaker payment terms compared with peers.

Weeks of channel inventory financial

"Weeks of channel inventory"

Earnings Snapshot

Net revenue: $167.345 million · Guidance included

Third quarter 2026 ended September 27, 2026

Net revenue $167.345 million Down 9.3% year over year

GAAP net loss $(12.274) million Compared with $(4.777) million in the prior-year quarter

Non-GAAP operating income $3.348 million Compared with $3.817 million in the prior-year quarter

Non-GAAP diluted EPS $0.13 Compared with $0.12 in the prior-year quarter

Guidance

Fourth-quarter 2026 net revenue of $160 million to $175 million; GAAP operating margin of (8.7)% to (5.7)%; non-GAAP operating margin of 0% to 3%.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much revenue did NTGR report in Q3 2026?

NETGEAR reported $167.345 million in third-quarter 2026 revenue, down 9.3% from $184.561 million in the prior-year quarter.

What is NTGR's revenue guidance for Q4 2026?

NETGEAR expects fourth-quarter 2026 revenue of $160 million to $175 million. Its outlook also gives a GAAP operating margin range of (8.7)% to (5.7)% and a non-GAAP operating margin range of 0% to 3%.

Why was NTGR's revenue constrained in Q3 2026?

Management attributed constrained revenue to manufacturing challenges at a key production partner and supply availability. It also said its strategy to harvest Consumer Service Provider products and optimize the Consumer segment for gross profit is intentionally constraining topline revenue.

When will NTGR's product price increases take effect?

Enterprise product price increases are set to take effect in November, while Consumer product price increases are set to take effect in early 2027.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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false000112290400011229042026-11-042026-11-04

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

November 4, 2026

NETGEAR, INC.

(Exact name of Registrant as specified in its charter)

Delaware		000-50350		77-0419172
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification Number)

3553 North First Street
San Jose,	CA	95134
(Address, including zip code, of principal executive offices)

(408)	907-8000
(Registrant's telephone number, including area code)

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

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class		Trading symbol(s):		Name of each exchange on which registered
Common Stock, $0.001 par value		NTGR		The Nasdaq Stock Market LLC

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

Emerging growth company ☐

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

Item 2.02 Results of Operations and Financial Condition.

On November 4, 2026, NETGEAR, Inc. issued a press release announcing its financial results for its third fiscal quarter ended September 27, 2026, the text of which is furnished herewith as Exhibit 99.1.

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

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number		Description
99.1		Press Release, Dated November 4, 2026
104		Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

SIGNATURES

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

Dated: November 4, 2026

NETGEAR, INC.

By:		/s/ Bryan D. Murray
		Bryan D. Murray
		Chief Financial Officer

Exhibit 99.1

NEWS RELEASE

NETGEAR® REPORTS THIRD QUARTER 2026 RESULTS

Consolidated operating margin exceeds the high end of guidance

Enterprise non-GAAP gross margin expands 220 basis points year over year to 53.2%

Enterprise end customer demand remains strong while supply availability is constraining topline

ARR from subscription and services increases approximately 12% year over year to $42.5 million

Q3 share repurchases of $15 million for a total of over $131 million repurchased since the beginning of 2024

SAN JOSE, California – November 4, 2026 - NETGEAR, Inc. (NASDAQ: NTGR), a global leader in intelligent networking solutions designed to power extraordinary experiences, today reported financial results for the third quarter ended September 27, 2026.

Q3 2026

•Net revenue of $167.3 million, down 9.3% as compared to Q3 prior year

•GAAP gross margin of 40.1%, up 100 basis points year over year

Non-GAAP gross margin of 41.3%, up 170 basis points year over year

•GAAP operating income of $(13.7) million compared to $(7.1) million from Q3 prior year

Non-GAAP operating income of $3.3 million compared to $3.8 million from Q3 prior year

•GAAP EPS of $(0.45) compared to $(0.17) from Q3 prior year

Non-GAAP EPS of $0.13 compared to $0.12 from Q3 prior year

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

CJ Prober, Chief Executive Officer, commented, “We are encouraged by the continued progress in our transformation into a software-differentiated, Enterprise-led company. Our Enterprise business continues to benefit from strong customer demand, particularly across our line of ProAV managed switches, while our expanding software and services capabilities are strengthening our competitive differentiation and creating new opportunities for long-term profitable growth. While the underlying fundamentals of our Enterprise business continue to improve, manufacturing challenges at a key production partner have constrained our ability to fully translate customer demand into revenue during the quarter. We are working closely with our partner to improve production output and product availability and expect to be back to normal production levels by Q1 2027. When combined with our supply constraints, our strategy to harvest our consumer Service Provider products and optimize the Consumer segment for gross profit are intentionally constraining our topline revenue. We remain confident in our strategic direction and remain focused on translating the progress we are making across our business into sustainable growth, greater profitability, and long-term shareholder value.”

Bryan Murray, Chief Financial Officer, added, “Our third-quarter results demonstrate the continued progress toward a structurally more profitable business model, with Enterprise accounting for over 54% of our revenue and now approximately 70% of non-GAAP gross profit, underscoring the financial benefits of our strategic transformation. We delivered non-GAAP operating income of $3.3 million and a non-GAAP operating margin of 2.0%, exceeding the high end of our guidance range, while consolidated non-GAAP gross margin expanded approximately 170 basis

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points year over year to 41.3%. These results reflect the growing contribution from our higher-margin Enterprise business and continued financial discipline, even as manufacturing constraints impacted shipments during the quarter. We also maintained a strong balance sheet, ending the quarter with over $242 million in cash and short-term investments, while repurchasing approximately $15 million of common stock during Q3, bringing our cumulative share repurchases since the beginning of 2024 to more than $131 million. Looking ahead, we remain focused on improving manufacturing execution, managing Consumer profitability, and maintaining the financial flexibility to invest in our strategic priorities and drive sustainable long-term value creation.”

Enterprise Segment Results

•Revenue was $90.7 million, down 0.1% year over year

•Non-GAAP gross margin was 53.2%, up 220 basis points year over year

•Non-GAAP contribution margin was 24.5%, down 40 basis points year over year

Mr. Prober continued, “Our Enterprise business continues to demonstrate encouraging underlying momentum, particularly across our Pro AV line of managed switches. Despite our supply constraints, end customer sell through increased approximately 6% year over year globally, led by double-digit growth from our managed switch products, with even more positive trends in both the Americas and Europe. While sell through and our reported revenue does not fully reflect end customer demand, these trends reinforce our confidence in the competitiveness of our solutions and the opportunities ahead. Enterprise backlog exited Q3 more than 2.5x times higher than the end of Q2, which was already at an elevated level due to shortages in the prior quarter as well. Our most immediate priority is restoring reliable product availability following the factory transition at one of our key manufacturing partners given we have secured critical components to support our production plans. Given the elevated cost of supply and our pricing leverage in this category, we implemented an additional price increase for our Enterprise products that will take effect in November.”

Consumer Segment Results

•Revenue was $76.6 million, down 18.2% year over year

•Non-GAAP gross margin was 27.2%, down 120 basis points year over year

•Non-GAAP contribution margin was (1.9)%, down 390 basis points year over year

Mr. Prober continued, “In Consumer, we continued to execute our transformation with discipline, prioritizing gross profit in core home networking while managing the service provider business for value as we navigate the higher cost supply environment. Partner manufacturing challenges also impacted the availability of supply for a portion of our Consumer router product portfolio. Although revenue remained constrained for these reasons, the recurring revenue component of our home networking business continued to perform well, driving 12% year-over-year growth in our total annual recurring revenue. Consistent with the pricing actions in our Enterprise business, we are implementing a price increase for the products in this segment that will take effect in early 2027. In Q3, we also implemented a restructuring to drive efficiencies in this segment, and those cost reduction efforts will benefit our financial results beginning in 2027. We also continue to monitor developments in the U.S. regulatory environment that could positively influence the competitive landscape for home networking products. NETGEAR's position as a trusted U.S.-based company, our focus on security, and our established brands provide a strong foundation for capitalizing on these regulatory tail winds. Looking ahead, we remain confident in the strength of our Consumer brands, product portfolio, innovation roadmap and market position. While competitive pressures and rising component costs are expected to persist in the near term, we remain focused on optimizing profitability, expanding our higher-margin recurring services offerings, and positioning the business to capitalize on opportunities from the evolving regulatory landscape.”

Business Outlook

Mr. Murray continued, "Within Enterprise, we continue to see encouraging underlying demand, particularly for our Pro AV managed switches. However, our near-term revenue outlook remains constrained by manufacturing output and the timing of product availability, which we expect to persist into the first quarter of 2027. Our guidance reflects the uncertainty surrounding improvements in production execution which we expect will still fall short of customer

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demand for the fourth quarter. Within Consumer, we expect to continue to optimize this business for gross profit with increasing impact from component costs, with some additional impact from supply constraints. For service provider and related products, we expect revenue of approximately $17 million and, while it reflects our focus on optimizing contribution profits, this would represent an approximate 28% year over year decline for this category. Taking these factors into account, we expect fourth-quarter net revenue of $160 million to $175 million.

Turning to profitability, we anticipate approximately 150 basis points of consolidated gross margin pressure in the fourth quarter compared to the prior quarter, primarily driven by rising memory costs and increasing transportation costs associated with our production recovery efforts. While our pricing actions and cost mitigation efforts have offset the rising component cost headwinds within the Enterprise business, we expect elevated component costs to continue weighing on margins within the Consumer business in the fourth quarter. In addition, ongoing manufacturing challenges could affect our product mix and the timing of shipments, creating further uncertainty around near-term gross margin performance. Taking these factors into account, we expect fourth-quarter GAAP operating margin to be in the range of (8.7)% to (5.7)% and non-GAAP operating margin to be in the range of 0% to 3%. Our GAAP tax expense is expected to be in the range of a benefit of $0.5 million to an expense of $0.5 million, and our non-GAAP tax expense is expected to be in the range of zero to $1.0 million for the fourth quarter of 2026.”

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

		Three months ending
		December 31, 2026
(In millions, except for percentage data)		Operating Margin Rate		Tax Expense
GAAP		(8.7)% - (5.7)%		$(0.5)-$0.5
Estimated adjustments for1:
Stock-based compensation expense		6.3%		-
Amortization of intangible assets		0.8%		-
Restructuring and other charges		1.6%		-
Non-GAAP tax adjustments		-		$0.5
Non-GAAP		0.0% - 3.0%		$0.0 - $1.0

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

Investor Conference Call / Webcast Details

NETGEAR will review the third quarter results and discuss management's expectations for the fourth quarter of 2026 today, Wednesday, November 4, 2026, at 5 p.m. ET (2 p.m. PT). The toll-free dial-in number for the live audio call is (833) 461-5787. The international dial-in number for the live audio call is (585) 542-9983. The conference ID for the call is 677 851 425. A live webcast of the conference call will be available on NETGEAR's Investor Relations website at http://investor.netgear.com. A replay of the call will be available via the web at http://investor.netgear.com.

About NETGEAR, Inc.

Founded in 1996 and headquartered in the USA, NETGEAR® (NASDAQ: NTGR) is a global leader in innovative networking technologies for businesses, homes, and service providers. NETGEAR delivers a wide range of award-winning, intelligent solutions designed to unleash the full potential of connectivity and power extraordinary experiences. For businesses, NETGEAR offers reliable, easy-to-use, high-performance networking solutions, including switches, routers, access points, software, and AV over IP technologies, tailored to meet the diverse needs of small and medium enterprises.

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

Source: NETGEAR-F

Contact:

NETGEAR Investor Relations

Steven C. Pelayo, CFA

investors@netgear.com

Page 4

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

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words “anticipate,” “expect,” “believe,” “will,” “may,” “should,” “estimate,” “project,” “outlook,” “forecast” or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. The forward-looking statements represent NETGEAR, Inc.’s expectations or beliefs concerning future events based on information available at the time such statements were made and include statements regarding: NETGEAR’s future operating performance and financial condition, including expectations regarding growth, revenue, operating margin and gross margin; creating long-term value for shareholders; positioning NETGEAR for long term success; long-term potential and profitable growth; continued end user demand for NETGEAR’s ProAV line of managed switches; revenue from service provider and related products; expectations regarding continuing market demand for the NETGEAR’s products and services; and expectations regarding expected tax benefits or tax expenses. These statements are based on management's current expectations and are subject to certain risks and uncertainties, including the following: future demand for NETGEAR’s products and services may be lower than anticipated; NETGEAR may be unsuccessful, or experience delays, in manufacturing and distributing its new and existing products and services; consumers may choose not to adopt NETGEAR’s new product and services offerings or adopt competing products and services; NETGEAR may fail to manage costs, including the cost of key components, the cost of air freight and ocean freight, and the cost of developing new products and manufacturing and distribution of its existing offerings; NETGEAR may fail to successfully continue to effect operating expense savings; changes in the level of NETGEAR's cash resources and NETGEAR’s planned usage of such resources; changes in NETGEAR’s stock price and developments in the business that could increase NETGEAR’s cash needs; fluctuations in foreign exchange rates; loss of services of key personnel may affect NETGEAR’s ability to executive on business strategy effectively; and the actions and financial health of NETGEAR’s customers, including NETGEAR’s ability to collect receivables as they become due. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Further information on potential risk factors that could affect NETGEAR and its business are detailed in NETGEAR’s periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled "Part II - Item 1A. Risk Factors" in NETGEAR’s quarterly report on Form 10-Q for the fiscal quarter ended June 28, 2026, filed with the Securities and Exchange Commission on August 6, 2026. Given these circumstances, you should not place undue reliance on these forward-looking statements. NETGEAR undertakes no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

Non-GAAP Financial Information:

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

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

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

Page 5

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

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

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

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

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

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

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

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

-Financial Tables Attached-

Page 6

NETGEAR, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

			September 27, 2026			December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents		$	178,420		$	209,904
Short-term investments			63,672			113,132
Accounts receivable, net			156,357			142,045
Inventories			169,366			176,456
Prepaid expenses and other current assets			38,742			31,745
Total current assets			606,557			673,282
Property and equipment, net			24,188			26,001
Operating lease right-of-use assets			28,887			36,715
Intangible assets, net			34,228			38,480
Goodwill			45,022			45,022
Other non-current assets			16,376			16,771
Total assets		$	755,258		$	836,271
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	49,272		$	43,749
Accrued employee compensation			21,414			34,731
Other accrued liabilities			147,769			144,028
Deferred revenue			25,207			26,904
Income taxes payable			1,207			809
Total current liabilities			244,869			250,221
Non-current income taxes payable			7,621			7,176
Non-current operating lease liabilities			31,782			41,016
Other non-current liabilities			32,516			40,035
Total liabilities			316,788			338,448
Stockholders’ equity:
Preferred stock: $0.001 par value; 5,000,000 shares authorized; none issued or outstanding			—			—
Common stock: $0.001 par value; 200,000,000 shares authorized; shares issued and outstanding: 26,676,847 as of September 27, 2026 and 27,943,198 as of December 31, 2025			27			28
Additional paid-in capital			1,068,880			1,036,545
Accumulated other comprehensive income (loss)			(140)			196
Accumulated deficit			(630,297)			(538,946)
Total stockholders’ equity			438,470			497,823
Total liabilities and stockholders’ equity		$	755,258		$	836,271

Page 7

NETGEAR, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share and percentage data)

(Unaudited)

			Three Months Ended									Nine Months Ended
			September 27, 2026			June 28, 2026			September 28, 2025			September 27, 2026			September 28, 2025
Net revenue		$	167,345		$	168,562		$	184,561		$	494,726		$	517,153
Cost of revenue			100,252			100,776			112,309			295,545			324,597
Gross profit			67,093			67,786			72,252			199,181			192,556
Gross margin			40.1%			40.2%			39.1%			40.3%			37.2%
Operating expenses:
Research and development			22,288			22,332			23,328			66,285			62,482
Sales and marketing			33,031			33,310			33,762			98,011			92,856
General and administrative			19,921			19,804			20,619			58,908			59,372
Litigation reserves, net			—			(1)			98			499			136
Restructuring and other charges			5,554			782			1,514			11,212			7,118
Total operating expenses			80,794			76,227			79,321			234,915			221,964
Loss from operations			(13,701)			(8,441)			(7,069)			(35,734)			(29,408)
Operating margin			(8.2)%			(5.0)%			(3.8)%			(7.2)%			(5.7)%
Other income, net			1,037			1,701			3,028			4,319			15,175
Loss before income taxes			(12,664)			(6,740)			(4,041)			(31,415)			(14,233)
Provision (benefit) for income taxes			(390)			513			736			1,152			3,006
Net loss		$	(12,274)		$	(7,253)		$	(4,777)		$	(32,567)		$	(17,239)
Net loss per share
Basic		$	(0.45)		$	(0.27)		$	(0.17)		$	(1.19)		$	(0.60)
Diluted		$	(0.45)		$	(0.27)		$	(0.17)		$	(1.19)		$	(0.60)
Weighted average shares used to compute net loss per share:
Basic			27,057			27,041			28,638			27,352			28,756
Diluted			27,057			27,041			28,638			27,352			28,756

Page 8

NETGEAR, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

			Nine Months Ended
			September 27, 2026			September 28, 2025
Cash flows from operating activities:
Net loss		$	(32,567)		$	(17,239)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			11,186			5,109
Stock-based compensation			28,060			20,979
Accretion of discounts and imputed interests, net			2,010			(970)
Deferred income taxes			153			(214)
Provision for excess and obsolete inventory			5,641			2,878
Other			82			(171)
Changes in assets and liabilities:
Accounts receivable, net			(14,311)			(3,670)
Inventories			1,449			(6,901)
Prepaid expenses and other assets			(7,576)			1,329
Accounts payable			5,863			(936)
Accrued employee compensation			(13,316)			4,253
Other accrued liabilities			1,676			(10,093)
Deferred revenue			(1,501)			(2,898)
Income taxes payable			843			(9,365)
Net cash used in operating activities			(12,308)			(17,909)
Cash flows from investing activities:
Purchases of short-term investments			(40,197)			(89,579)
Proceeds from maturities of short-term investments			90,000			90,000
Purchases of property and equipment			(6,696)			(14,631)
Purchases of long-term investments			(60)			(165)
Payments made in connection with business acquisitions, net of cash acquired			—			(12,185)
Net cash provided by (used in) investing activities			43,047			(26,560)
Cash flows from financing activities:
Repurchases of common stock, including excise tax			(48,033)			(35,662)
Restricted stock unit withholdings			(10,633)			(11,758)
Proceeds from exercise of stock options			—			5,266
Proceeds from issuance of common stock under employee stock purchase plan			4,275			3,652
Principal payments on deferred purchase price for acquisitions			(7,834)			—
Net cash used in financing activities			(62,225)			(38,502)
Net decrease in cash and cash equivalents and restricted cash			(31,486)			(82,971)
Cash and cash equivalents and restricted cash, at beginning of period			212,006			288,551
Cash and cash equivalents and restricted cash, at end of period		$	180,520		$	205,580
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets
Cash and cash equivalents at end of period		$	178,420		$	203,480
Restricted cash included within other non-current assets at end of period			2,100			2,100
Total cash, cash equivalents, and restricted cash at end of period shown in the condensed consolidated statements of cash flows		$	180,520		$	205,580

Page 9

NETGEAR, INC.

RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

(In thousands, except percentage data)

(Unaudited)

STATEMENT OF OPERATIONS DATA:

		Three Months Ended									Nine Months Ended
		September 27, 2026			June 28, 2026			September 28, 2025			September 27, 2026			September 28, 2025
GAAP gross profit	$	67,093		$	67,786		$	72,252		$	199,181		$	192,556
GAAP gross margin		40.1%			40.2%			39.1%			40.3%			37.2%
Amortization of intangible assets		1,415			1,416			180			4,249			180
Stock-based compensation expense		547			616			562			1,664			1,440
Non-GAAP gross profit	$	69,055		$	69,818		$	72,994		$	205,094		$	194,176
Non-GAAP gross margin		41.3%			41.4%			39.6%			41.5%			37.5%
GAAP research and development	$	22,288		$	22,332		$	23,328		$	66,285		$	62,482
Stock-based compensation expense		(1,535)			(1,557)			(1,483)			(4,195)			(3,075)
Acquisition related expenses		(244)			(244)			(286)			(732)			(286)
Non-GAAP research and development	$	20,509		$	20,531		$	21,559		$	61,358		$	59,121
GAAP sales and marketing	$	33,031		$	33,310		$	33,762		$	98,011		$	92,856
Amortization of intangible assets		(1)			(2)			—			(4)			—
Stock-based compensation expense		(2,743)			(2,712)			(2,450)			(7,720)			(5,579)
Non-GAAP sales and marketing	$	30,287		$	30,596		$	31,312		$	90,287		$	87,277
GAAP general and administrative	$	19,921		$	19,804		$	20,619		$	58,908		$	59,372
Stock-based compensation expense		(5,010)			(5,135)			(4,313)			(14,481)			(10,885)
Acquisition related expenses		—			—			—			—			(705)
Non-GAAP general and administrative	$	14,911		$	14,669		$	16,306		$	44,427		$	47,782
GAAP total operating expenses	$	80,794		$	76,227		$	79,321		$	234,915		$	221,964
Amortization of intangible assets		(1)			(2)			—			(4)			—
Stock-based compensation expense		(9,288)			(9,404)			(8,246)			(26,396)			(19,539)
Acquisition related expenses		(244)			(244)			(286)			(732)			(991)
Restructuring and other charges		(5,554)			(782)			(1,514)			(11,212)			(7,118)
Litigation reserves, net		—			1			(98)			(499)			(136)
Non-GAAP total operating expenses	$	65,707		$	65,796		$	69,177		$	196,072		$	194,180
GAAP operating income (loss)	$	(13,701)		$	(8,441)		$	(7,069)		$	(35,734)		$	(29,408)
GAAP operating margin		(8.2)%			(5.0)%			(3.8)%			(7.2)%			(5.7)%
Amortization of intangible assets		1,416			1,418			180			4,253			180
Stock-based compensation expense		9,835			10,020			8,808			28,060			20,979
Acquisition related expenses		244			244			286			732			991
Restructuring and other charges		5,554			782			1,514			11,212			7,118
Litigation reserves, net		—			(1)			98			499			136
Non-GAAP operating income (loss)	$	3,348		$	4,022		$	3,817		$	9,022		$	(4)
Non-GAAP operating margin		2.0%			2.4%			2.1%			1.8%			(0.0)%
GAAP other income, net	$	1,037		$	1,701		$	3,028		$	4,319		$	15,175
Gain/loss on investments and others		72			32			42			82			(4,869)
Non-GAAP other income, net	$	1,109		$	1,733		$	3,070		$	4,401		$	10,306

Page 10

NETGEAR, INC.

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

(In thousands, except per share data)

(Unaudited)

STATEMENT OF OPERATIONS DATA (CONTINUED):

			Three Months Ended									Nine Months Ended
			September 27, 2026			June 28, 2026			September 28, 2025			September 27, 2026			September 28, 2025
GAAP net income (loss)		$	(12,274)		$	(7,253)		$	(4,777)		$	(32,567)		$	(17,239)
Amortization of intangible assets			1,416			1,418			180			4,253			180
Stock-based compensation expense			9,835			10,020			8,808			28,060			20,979
Acquisition related expenses			244			244			286			732			991
Restructuring and other charges			5,554			782			1,514			11,212			7,118
Litigation reserves, net			—			(1)			98			499			136
Gain/loss on investments and others			72			32			42			82			(4,869)
Non-GAAP tax adjustments			(1,186)			(867)			(2,692)			(2,381)			(1,695)
Non-GAAP net income (loss)		$	3,661		$	4,375		$	3,459		$	9,890		$	5,601
NET INCOME (LOSS) PER DILUTED SHARE:
GAAP net income (loss) per diluted share		$	(0.45)		$	(0.27)		$	(0.17)		$	(1.19)		$	(0.60)
Amortization of intangible assets			0.05			0.05			0.01			0.15			0.01
Stock-based compensation expense			0.36			0.36			0.30			1.00			0.69
Acquisition related expenses			0.01			0.01			0.01			0.03			0.03
Restructuring and other charges			0.20			0.03			0.05			0.40			0.24
Litigation reserves, net			—			—			—			0.02			—
Gain/loss on investments and others			—			—			—			—			(0.16)
Non-GAAP tax adjustments			(0.04)			(0.02)			(0.08)			(0.06)			(0.02)
Non-GAAP net income (loss) per diluted share 1		$	0.13		$	0.16		$	0.12		$	0.35		$	0.19
Shares used in computing GAAP net income (loss) per diluted share			27,057			27,041			28,638			27,352			28,756
Shares used in computing non-GAAP net income (loss) per diluted share			27,667			27,881			29,782			28,186			30,219

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

Page 11

NETGEAR, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

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

(Unaudited)

			Three Months Ended
			September 27, 2026			June 28, 2026			March 29, 2026			December 31, 2025			September 28, 2025
Cash, cash equivalents and short-term investments		$	242,092		$	267,879		$	296,509		$	323,036		$	326,383
Cash, cash equivalents and short-term investments per diluted share		$	8.75		$	9.61		$	10.33		$	10.97		$	10.96
Accounts receivable, net		$	156,357		$	152,820		$	142,155		$	142,045		$	159,880
Days sales outstanding (DSO)			85			83			79			73			79
Inventories		$	169,366		$	174,933		$	169,305		$	176,456		$	166,561
Ending inventory turns			2.4			2.3			2.2			2.5			2.7
Weeks of channel inventory:
U.S. retail channel			13.1			12.6			11.5			11.0			11.9
U.S. distribution channel			3.1			4.0			5.0			5.0			3.5
EMEA distribution channel			5.2			5.6			4.8			4.6			5.5
APAC distribution channel			8.9			10.9			12.7			13.7			8.3
Deferred revenue (current and non-current)		$	29,609		$	29,449		$	30,224		$	31,110		$	32,464
Headcount			819			822			786			784			753
Non-GAAP diluted shares			27,667			27,881			28,701			29,457			29,782

NET REVENUE BY GEOGRAPHY

			Three Months Ended															Nine Months Ended
			September 27, 2026					June 28, 2026					September 28, 2025					September 27, 2026					September 28, 2025
Americas		$	115,745		69%		$	116,526		69%		$	128,085		69%		$	338,134		68%		$	352,125		68%
EMEA			33,074		20%			36,423		22%			36,936		20%			102,972		21%			103,440		20%
APAC			18,526		11%			15,613		9%			19,540		11%			53,620		11%			61,588		12%
Total		$	167,345		100%		$	168,562		100%		$	184,561		100%		$	494,726		100%		$	517,153		100%

SERVICE PROVIDER NET REVENUE

		Three Months Ended									Nine Months Ended
Consumer Segment		September 27, 2026			June 28, 2026			September 28, 2025			September 27, 2026			September 28, 2025
Service provider net revenue 1	$	20,795		$	23,777		$	26,975		$	64,804		$	83,900
Other		55,832			55,831			66,748			166,448			180,603
Total Consumer segment net revenue	$	76,627		$	79,608		$	93,723		$	231,252		$	264,503

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

Page 12

NETGEAR, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (CONTINUED)

(In thousands, except percentage data)

(Unaudited)

SEGMENT DATA:

		Three Months Ended
		September 27, 2026						June 28, 2026						September 28, 2025
		Enterprise		Consumer		Total		Enterprise		Consumer		Total		Enterprise		Consumer		Total
Net revenue	$	90,718	$	76,627	$	167,345	$	88,954	$	79,608	$	168,562	$	90,838	$	93,723	$	184,561
Segment cost of revenue		42,487		55,803				40,854		57,890				44,486		67,081
Segment gross profit		48,231		20,824		69,055		48,100		21,718		69,818		46,352		26,642		72,994
Segment gross margin		53.2%		27.2%				54.1%		27.3%				51.0%		28.4%
Reconciliation of gross profit
Amortization of intangible assets						(1,415)						(1,416)						(180)
Stock-based compensation expense						(547)						(616)						(562)
Total Consolidated gross profit					$	67,093					$	67,786					$	72,252
Segment operating expenses		25,980		22,246				25,050		23,452				23,737		24,790
Contribution income (loss)		22,251		(1,422)		20,829		23,050		(1,734)		21,316		22,615		1,852		24,467
Contribution margin		24.5%		(1.9)%				25.9%		(2.2)%				24.9%		2.0 %
Corporate and unallocated costs						(17,481)						(17,294)						(20,650)
Amortization of intangible assets						(1,416)						(1,418)						(180)
Stock-based compensation expense						(9,835)						(10,020)						(8,808)
Acquisition related expenses						(244)						(244)						(286)
Restructuring and other charges						(5,554)						(782)						(1,514)
Litigation reserves, net						-						1						(98)
Other income, net						1,037						1,701						3,028
Income (loss) before income taxes					$	(12,664)					$	(6,740)					$	(4,041)

Page 13

		Nine Months Ended
		September 27, 2026						September 28, 2025
		Enterprise		Consumer		Total		Enterprise		Consumer		Total
Net revenue	$	263,474	$	231,252	$	494,726	$	252,650	$	264,503	$	517,153
Segment cost of revenue		122,999		166,633				131,052		191,925
Segment gross profit		140,475		64,619		205,094		121,598		72,578		194,176
Segment gross margin		53.3%		27.9%				48.1%		27.4%
Reconciliation of gross profit
Amortization of intangible assets						(4,249)						(180)
Stock-based compensation expense						(1,664)						(1,440)
Total Consolidated gross profit					$	199,181					$	192,556
Segment operating expenses		75,117		67,901				65,386		68,904
Contribution income (loss)		65,358		(3,282)		62,076		56,212		3,674		59,886
Contribution margin		24.8%		(1.4)%				22.2%		1.4 %
Corporate and unallocated costs						(53,054)						(59,890)
Amortization of intangible assets						(4,253)						(180)
Stock-based compensation expense						(28,060)						(20,979)
Acquisition related expenses						(732)						(991)
Restructuring and other charges						(11,212)						(7,118)
Litigation reserves, net						(499)						(136)
Other income, net						4,319						15,175
Income (loss) before income taxes					$	(31,415)					$	(14,233)

Page 14

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