Free cash flow remains highly volatile, swinging from a peak of $106.0M in 2024Q3 to a negative $17.1M in 2025Q3, while the company continues to prioritize share repurchases like the $20.2M outflow in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 |
|---|
| Cash from Operations | 12M | 1.61M | 164.8M | 56.85M | -13.73M | -4.58M | 181.15M | 13.53M | -103.21M | 87.52M | 115.17M | 110.39M | 108.96M | 86.9M | 55.04M | 96.01M | 26.35M | 48.1M | 47.53M | 53.37M | 23.07M | 26.64M | 57.33M | -26.4M | 15.16M |
| Operating CF Margin % | - | 0.23% | 24.46% | 7.67% | -1.47% | -0.39% | 14.43% | 1.35% | -9.75% | 6.22% | 8.67% | 8.49% | 7.82% | 6.34% | 4.33% | 8.13% | 2.92% | 7.01% | 6.39% | 7.33% | 4.02% | 5.92% | 14.96% | -8.82% | 6.39% |
| Operating CF Growth % | -106.83% | -99.03% | 189.87% | 513.99% | -199.91% | -102.53% | 1239.37% | 113.1% | -217.92% | -24.01% | 4.33% | 1.31% | 25.39% | 57.88% | -42.67% | 264.35% | -45.21% | 1.2% | -10.95% | 131.37% | -13.4% | -53.54% | 317.15% | -274.11% | - |
| Net Income | -39.84M | -17.92M | 12.36M | -104.77M | -68.99M | 49.39M | 58.29M | 25.79M | -18.33M | 19.44M | 75.85M | 48.58M | 8.79M | 55.22M | 86.54M | 91.37M | 50.91M | 9.33M | 18.05M | 45.95M | 41.13M | 33.62M | 23.46M | 13.1M | 8.14M |
| Depreciation & Amortization | 9.94M | 8M | 6.51M | 7.16M | 10.07M | 13.91M | 18.93M | 19.41M | 18.85M | 26.09M | 31.99M | 35.85M | 35.59M | 32.85M | 16.77M | 14.73M | 13.44M | 12.36M | 13.26M | 12.69M | 5.24M | 4.13M | 4.28M | 3.78M | 3.02M |
| Stock-Based Compensation | 32.42M | 29.71M | 22.68M | 17.94M | 17.73M | 26M | 30.5M | 29.14M | 26.46M | 22.15M | 18.95M | 16.82M | 20.01M | 17.46M | 14.37M | 13.76M | 12.2M | 11.02M | 11.32M | 8.88M | 4.5M | 0 | 0 | 1.77M | 0 |
| Deferred Taxes | -145K | -152K | 1M | 82.32M | -21.84M | 4.5M | -9.39M | -1.38M | 2.46M | 21.84M | -269K | -2.94M | -20.74M | -7.5M | -1.42M | -1.1M | -8.44M | -4.87M | -2.03M | -1.04M | -3.25M | -356K | -2.42M | -9.06M | 0 |
| Other Non-Cash Items | 4.29M | 2.67M | 2.51M | 1.01M | 48.01M | 2.24M | 11.24M | 3.91M | -52.38M | 46K | -2.84M | -816K | 73.72M | 2.34M | -2.19M | -2.69M | 557K | -737K | -6K | 267K | 357K | 7.1M | 11.77M | 4.93M | 1.22M |
| Working Capital Changes | -9.57M | -20.7M | 119.73M | 53.19M | 1.28M | -100.6M | 71.57M | -63.34M | -80.27M | -2.04M | -8.51M | 12.89M | -8.41M | -13.47M | -59.03M | -20.07M | -42.32M | 20.98M | 6.93M | -13.37M | -24.92M | -17.86M | 20.23M | -40.93M | 2.79M |
| Change in Receivables | 551K | 14.16M | 28.85M | 92.42M | -16.33M | 75.89M | -59.88M | 26.5M | -43.05M | -98.96M | -23.21M | -14.95M | -9.21M | -10.47M | 5.32M | -34.58M | -63.88M | -24.58M | 19.49M | -36.96M | -15.33M | 0 | 0 | -32.37M | 0 |
| Change in Inventory | -15.36M | -17.41M | 80.25M | 47.59M | 12.4M | -147.43M | 55.51M | 4.5M | -82.16M | 1.97M | -34.74M | 9.77M | 1.57M | -46.68M | -10.59M | -30.04M | -36.8M | 21.65M | -29.14M | -1.59M | -26.06M | 1.68M | -14.29M | -14.49M | 6.48M |
| Change in Payables | -11.48M | -14.88M | 11.49M | -38.95M | 11.86M | -16.49M | 9.74M | -56.61M | 45.5M | -784K | 21.33M | -14.99M | -8.24M | 36.25M | -30.61M | 28.13M | 20.07M | 9.01M | 4.74M | 14.82M | 906K | 0 | 0 | 13.85M | 0 |
| Cash from Investing | -25.36M | -22.64M | -26.16M | -27.43M | -79.52M | -9.98M | -16.84M | 49.46M | -43.19M | -19.82M | -48.76M | 5.96M | -30.75M | -39.73M | -130.31M | -46.92M | -95.23M | -72.31M | -12.46M | 5.79M | -37.67M | -10.79M | -33.34M | -14.87M | -3.22M |
| Capital Expenditures | -22.94M | -20.52M | -8.99M | -5.8M | -5.76M | -9.86M | -10.3M | -14.23M | -12.25M | -13.67M | -10.97M | -14M | -19.34M | -18.32M | -16.16M | -8.21M | -9.99M | -3.94M | -15.39M | -9.84M | -5.92M | -4.19M | -2.55M | -2.49M | -3.22M |
| CapEx % of Revenue | 3.32% | 2.96% | 1.33% | 0.78% | 0.62% | 0.84% | 0.82% | 1.42% | 1.16% | 0.97% | 0.83% | 1.08% | 1.39% | 1.34% | 1.27% | 0.7% | 1.11% | 0.57% | 2.07% | 1.35% | 1.03% | 0.93% | 0.66% | 0.83% | 1.36% |
| Acquisitions | -12.19M | -12.19M | 0 | 0 | 73.76M | -710K | 6.54M | -63.69M | -14.35M | -737K | -8.81M | 0 | -1.05M | -147.24M | -28.63M | -37.51M | -12M | -3.54M | -24.64M | -57.47M | -7.6M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -73.76M | 564K | -6.54M | 63.69M | -71.36M | -4.27M | -38.53M | 19.96M | -10.36M | 125.56M | -115.55M | 0 | -102K | 0 | 0 | 1.04M | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -72.98M | -55.51M | -28.91M | 797K | -24.02M | -68.12M | -8.06M | -73.82M | 144.58M | -105.3M | -7.89M | -75.64M | -79.99M | -53.19M | 15.4M | 33.64M | 22.85M | 3.58M | -9.72M | 20.6M | 12.34M | 9.11M | 13.35M | 82.6M | -1.21M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -20M | 0 |
| Equity Issued (Net) | -57.86M | -41.74M | -36.5M | -2.79M | -29.18M | -60.46M | -28.89M | -82.47M | -38.06M | -119.58M | -42.94M | -120.31M | -93.22M | -63.59M | -850K | -926K | -738K | 847K | -10.88M | 13.54M | 8.53M | 9.11M | 13.35M | 102.6M | -1.21M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -62.65M | -50.66M | -36.5M | -2.79M | -29.18M | -82.66M | -28.89M | -82.47M | -38.06M | -119.58M | -42.94M | -120.31M | -93.22M | -63.59M | -850K | -926K | -738K | -282K | -12.23M | -150K | 0 | 0 | 0 | -13K | -5.91M |
| Other Financing | -15.12M | -13.76M | 7.58M | 3.59M | 5.16M | -7.66M | 20.83M | 8.64M | 182.64M | 14.27M | 35.05M | 44.67M | 13.23M | 10.39M | 16.25M | 34.56M | 23.59M | 2.73M | 1.15M | 7.05M | 3.81M | 0 | 0 | 0 | 0 |
| Net Change in Cash | -86.33M | -76.54M | 109.73M | 30.22M | -117.27M | -82.69M | 156.25M | -10.84M | -1.82M | -37.6M | 58.52M | 40.71M | -1.77M | -6.02M | -59.87M | 82.72M | -46.03M | -20.64M | 25.34M | 79.76M | -2.27M | 24.95M | 37.34M | 41.34M | 10.73M |
| Free Cash Flow | -10.94M | -18.91M | 155.8M | 51.05M | -19.49M | -14.44M | 170.85M | -705K | -115.46M | 73.85M | 104.2M | 96.39M | 89.63M | 68.58M | 38.88M | 87.8M | 16.36M | 44.15M | 32.14M | 43.53M | 17.15M | 22.44M | 54.78M | -28.89M | 11.94M |
| FCF Margin % | -1.59% | -2.73% | 23.12% | 6.89% | -2.09% | -1.24% | 13.61% | -0.07% | -10.9% | 5.25% | 7.84% | 7.41% | 6.43% | 5.01% | 3.06% | 7.43% | 1.81% | 6.43% | 4.32% | 5.98% | 2.99% | 4.99% | 14.3% | -9.65% | 5.03% |
| FCF Growth % | -108.35% | -112.14% | 205.17% | 361.95% | -34.94% | -108.45% | 24334.61% | 99.39% | -256.35% | -29.13% | 8.1% | 7.55% | 30.69% | 76.38% | -55.72% | 436.64% | -62.94% | 37.39% | -26.18% | 153.84% | -23.58% | -59.03% | 289.63% | -341.97% | - |
| FCF per Share | -0.39 | -0.65 | 5.25 | 1.74 | -0.67 | -0.47 | 5.58 | -0.02 | -3.48 | 2.23 | 3.09 | 2.85 | 2.46 | 1.76 | 1.00 | 2.31 | 0.45 | 1.27 | 0.90 | 1.21 | 0.50 | 0.66 | 1.68 | -1.08 | 0.56 |
| FCF Conversion (FCF/Net Income) | 0.27x | -0.05x | 13.33x | -0.54x | 0.20x | -0.09x | 3.11x | 0.52x | 39.11x | 4.50x | 1.52x | 2.27x | 12.40x | 1.57x | 0.64x | 1.05x | 0.52x | 5.15x | 2.63x | 1.16x | 0.56x | 0.79x | 2.44x | -2.02x | 1.86x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 7.74M | 7.19M | 9.4M | 20.59M | 8.22M | 8.88M | 23.22M | 32.09M | 35.15M | 40.27M | 38.94M | 45.98M | 52.4M | 34.37M | 44.08M | 14.4M | 25.18M | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent negative operating margins
As reported in recent financial statements, NETGEAR's operating cash flow frequently diverges from net income, with the OCF/NI ratio exhibiting extreme volatility, such as the -33.72 reading in 2023Q4, which suggests that accounting accruals and working capital shifts are currently masking the underlying cash-generative capacity of the business.
The persistent gap between net income and operating cash flow indicates that the company's reported losses do not fully capture the cash-burn dynamics of its retail-heavy business model. Investors should monitor whether this divergence is driven by temporary inventory management or a more structural inability to convert sales into actual liquidity.
Based on the provided quarterly data, NETGEAR's free cash flow trajectory remains highly inconsistent, swinging from a peak of $106.0M in 2024Q3 to a negative $17.1M in 2025Q3, which underscores the company's struggle to maintain positive cash generation amidst a contracting revenue base and seasonal retail cycles.
The erratic nature of FCF suggests that the company is highly sensitive to inventory-related cash outflows, which often overwhelm the modest cash inflows from operations. This lack of a stable FCF floor makes it difficult to assess the company's long-term ability to self-fund its R&D and operational requirements.
According to the cash flow statements, working capital changes have been a primary driver of liquidity fluctuations, with significant swings like the $55.0M inflow in 2024Q2 followed by subsequent outflows, indicating that the company's cash position is heavily tethered to the timing of retail channel inventory replenishment.
The reliance on large working capital swings to bolster cash flow suggests that the company may be using aggressive channel stuffing or destocking cycles to manage its liquidity profile. This pattern warrants further investigation into whether these movements represent sustainable operational efficiency or merely temporary adjustments to retail demand.
As indicated by the company's cash flow disclosures, NETGEAR has continued to prioritize share repurchases, such as the $20.2M outflow in 2026Q1, even while the core business struggles to generate consistent positive free cash flow, which may indicate a disconnect between capital allocation and operational performance.
The decision to return capital to shareholders while the business is burning cash suggests a management focus on supporting the stock price rather than reinvesting in the business or preserving liquidity. This strategy appears risky given the company's negative operating margins and the ongoing need for capital to fund product innovation.
Based on the reported figures, stock-based compensation (SBC) has remained a consistent cash-flow-neutral expense, averaging over $6M per quarter, which effectively masks the true cost of talent acquisition and retention in a period where the company is failing to achieve sustained profitability.
By excluding SBC from cash flow calculations, the company presents a more favorable liquidity picture than the underlying operational performance justifies. Analysts should adjust for these non-cash expenses to understand the true economic cost of the company's current human capital strategy.
Quick answers to the most common questions about buying NTGR stock.
NETGEAR, Inc. (NTGR) generated $1.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
NETGEAR, Inc. (NTGR) reported negative free cash flow of $18.9M in 2025, indicating capital requirements exceeded cash from operations.
NETGEAR, Inc. (NTGR) spent $20.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, NETGEAR, Inc. (NTGR) spent $50.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.