Revenue has stagnated at $168.6M in 2026Q2 (down 1.2% YoY), and despite gross margin recovery to 40.2%, operating margin remains negative at -5.0%, with EPS of -$0.27 missing consensus by $0.20.
NETGEAR, Inc. (NTGR) annual income statement — 24-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 688.14M | 693.35M | 673.76M | 740.84M | 932.47M | 1.17B | 1.26B | 998.76M | 1.06B | 1.41B | 1.33B | 1.3B | 1.39B | 1.37B | 1.27B | 1.18B | 902.05M | 686.6M | 743.34M | 727.79M | 573.57M | 449.61M | 383.14M | 299.3M | 237.33M |
| Revenue Growth % | -1.39% | 2.91% | -9.05% | -20.55% | -20.17% | -6.94% | 25.68% | -5.67% | -24.74% | 5.92% | 2.12% | -6.66% | 1.74% | 7.68% | 7.7% | 30.93% | 31.38% | -7.63% | 2.14% | 26.89% | 27.57% | 17.35% | 28.01% | 26.11% | - |
| Cost of Goods Sold | 425.4M | 442.4M | 477.83M | 491.59M | 681.92M | 802.24M | 883.05M | 704.53M | 717.12M | 1.01B | 916.11M | 933.02M | 995.6M | 976.02M | 888.37M | 811.57M | 602.8M | 480.19M | 502.32M | 485.18M | 379.91M | 297.76M | 260.15M | 215.33M | 176.97M |
| COGS % of Revenue | - | 63.81% | 70.92% | 66.36% | 73.13% | 68.68% | 70.35% | 70.54% | 67.73% | 71.85% | 68.97% | 71.73% | 71.45% | 71.26% | 69.84% | 68.72% | 66.83% | 69.94% | 67.58% | 66.67% | 66.24% | 66.23% | 67.9% | 71.94% | 74.57% |
| Gross Profit | 262.74M | 250.96M | 195.93M | 249.25M | 250.55M | 365.84M | 372.15M | 294.23M | 341.7M | 396.04M | 412.19M | 367.68M | 397.92M | 393.62M | 383.55M | 369.45M | 299.25M | 206.4M | 241.02M | 242.61M | 193.66M | 151.85M | 122.98M | 83.97M | 60.36M |
| Gross Margin % | 38.18% | 36.19% | 29.08% | 33.64% | 26.87% | 31.32% | 29.65% | 29.46% | 32.27% | 28.15% | 31.03% | 28.27% | 28.56% | 28.74% | 30.16% | 31.28% | 33.17% | 30.06% | 32.42% | 33.33% | 33.76% | 33.77% | 32.1% | 28.06% | 25.43% |
| Gross Profit Growth % | - | 28.09% | -21.39% | -0.52% | -31.51% | -1.7% | 26.48% | -13.89% | -13.72% | -3.92% | 12.1% | -7.6% | 1.09% | 2.62% | 3.82% | 23.46% | 44.98% | -14.37% | -0.65% | 25.28% | 27.54% | 23.47% | 46.46% | 39.12% | - |
| Operating Expenses | 291.92M | 286.06M | 183.71M | 282.53M | 333.47M | 299.24M | 296.61M | 268.04M | 299.84M | 309.19M | 294.2M | 278.61M | 294.47M | 287.89M | 255.86M | 242.68M | 207.97M | 173.53M | 187.9M | 173.4M | 131.23M | 99.54M | 87.47M | 67.81M | 49.6M |
| OpEx % of Revenue | - | 41.26% | 27.27% | 38.14% | 35.76% | 25.62% | 23.63% | 26.84% | 28.32% | 21.98% | 22.15% | 21.42% | 21.13% | 21.02% | 20.12% | 20.55% | 23.06% | 25.27% | 25.28% | 23.82% | 22.88% | 22.14% | 22.83% | 22.65% | 20.9% |
| Selling, General & Admin | 212.77M | 193.73M | 187.16M | 194.02M | 195.99M | 205.62M | 209M | 187.58M | 217.43M | 214.59M | 204.84M | 192.11M | 203.57M | 202.72M | 194.79M | 193.99M | 168M | 140.97M | 153.42M | 145.16M | 112.79M | 85.28M | 76.03M | 57.94M | 40.73M |
| SG&A % of Revenue | - | 27.94% | 27.78% | 26.19% | 21.02% | 17.6% | 16.65% | 18.78% | 20.53% | 15.25% | 15.42% | 14.77% | 14.61% | 14.8% | 15.31% | 16.43% | 18.62% | 20.53% | 20.64% | 19.95% | 19.66% | 18.97% | 19.84% | 19.36% | 17.16% |
| Research & Development | 83.48M | 78.88M | 81.08M | 83.3M | 88.44M | 92.97M | 88.79M | 77.98M | 82.42M | 94.6M | 89.37M | 86.5M | 90.9M | 85.17M | 61.07M | 48.7M | 39.97M | 32.56M | 33.77M | 28.07M | 18.44M | 12.54M | 9.92M | 8.22M | 7.36M |
| R&D % of Revenue | - | 11.38% | 12.03% | 11.24% | 9.48% | 7.96% | 7.07% | 7.81% | 7.78% | 6.72% | 6.73% | 6.65% | 6.52% | 6.22% | 4.8% | 4.12% | 4.43% | 4.74% | 4.54% | 3.86% | 3.22% | 2.79% | 2.59% | 2.75% | 3.1% |
| Other Operating Expenses | 781K | 13.45M | -84.53M | 5.21M | 49.04M | 653K | -1.18M | 2.48M | 510K | 2.02M | -121K | -88K | 2.46M | -457K | 0 | 1.89M | 0 | 0 | 711K | 167K | 0 | 1.72M | 1.52M | 1.65M | 1.52M |
| Operating Income | -29.18M | -35.11M | 12.22M | -33.27M | -82.92M | 66.6M | 75.54M | 26.19M | 38.71M | 86.58M | 114.03M | 85.36M | 28.05M | 93.04M | 126.11M | 124.87M | 91.36M | 32.07M | 49.39M | 65.11M | 59.53M | 52.16M | 35.35M | 16.04M | 10.61M |
| Operating Margin % | -4.24% | -5.06% | 1.81% | -4.49% | -8.89% | 5.7% | 6.02% | 2.62% | 3.66% | 6.15% | 8.58% | 6.56% | 2.01% | 6.79% | 9.92% | 10.57% | 10.13% | 4.67% | 6.64% | 8.95% | 10.38% | 11.6% | 9.23% | 5.36% | 4.47% |
| Operating Income Growth % | - | -387.39% | 136.71% | 59.87% | -224.52% | -11.84% | 188.47% | -32.36% | -55.28% | -24.07% | 33.59% | 204.27% | -69.85% | -26.23% | 1% | 36.68% | 184.92% | -35.08% | -24.14% | 9.38% | 14.14% | 47.53% | 120.45% | 51.12% | - |
| EBITDA | -18.24M | -26.2M | 18.73M | -26.11M | -72.85M | 80.5M | 94.47M | 45.59M | 57.56M | 109.11M | 146.02M | 121.21M | 63.64M | 125.89M | 142.89M | 139.6M | 104.8M | 44.43M | 62.65M | 77.8M | 64.77M | 56.29M | 39.63M | 19.82M | 13.63M |
| EBITDA Margin % | -2.65% | -3.78% | 2.78% | -3.52% | -7.81% | 6.89% | 7.53% | 4.57% | 5.44% | 7.75% | 10.99% | 9.32% | 4.57% | 9.19% | 11.23% | 11.82% | 11.62% | 6.47% | 8.43% | 10.69% | 11.29% | 12.52% | 10.34% | 6.62% | 5.74% |
| EBITDA Growth % | -128% | -239.88% | 171.72% | 64.16% | -190.5% | -14.79% | 107.21% | -20.8% | -47.24% | -25.28% | 20.47% | 90.45% | -49.45% | -11.89% | 2.35% | 33.21% | 135.9% | -29.09% | -19.47% | 20.11% | 15.07% | 42.02% | 100% | 45.4% | - |
| D&A (Non-Cash Add-back) | 9.24M | 8.91M | 6.51M | 7.16M | 10.07M | 13.91M | 18.93M | 19.41M | 18.85M | 22.53M | 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 |
| EBIT | -25.99M | -26.44M | -72.32M | -32.2M | -33.88M | 65.5M | 75.54M | 26.19M | 38.71M | 42.55M | 115.07M | 89.07M | 103.45M | 105.73M | 127.69M | 126.76M | 91.48M | 34.95M | 53.12M | 69.21M | 62.43M | 52.3M | 35.52M | 16.16M | 10.76M |
| Net Interest Income | 5.2M | 8.3M | 12.15M | 6.84M | 1.82M | 157K | 436K | 2.54M | 3.98M | 2.11M | 1.16M | 295K | 253K | 400K | 498K | 477K | 426K | 629K | 4.34M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 5.2M | 8.3M | 12.15M | 6.84M | 1.82M | 157K | 436K | 2.54M | 3.98M | 2.11M | 1.16M | 295K | 253K | 400K | 498K | 477K | 426K | 629K | 4.34M | 0 | 6.97M | 4.1M | 1.59M | 0 | 0 |
| Interest Expense | 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 |
| Other Income/Expense | 3.19M | 17.68M | 12.67M | 14.14M | 902K | -1.09M | -4.74M | 3.38M | 4.49M | 3.67M | 1.04M | 207K | 2.71M | -57K | 3.17M | -659K | 1.91M | 501K | -4.05M | 11.72M | 9.47M | 2.33M | 1.03M | -6.46M | -1.14M |
| Pretax Income | -25.99M | -17.43M | 24.89M | -19.14M | -82.02M | 65.5M | 70.8M | 29.57M | 43.2M | 90.71M | 115.07M | 85.56M | 30.76M | 92.98M | 129.28M | 124.21M | 91.22M | 32.57M | 45.34M | 76.84M | 69M | 54.49M | 36.39M | 9.57M | 9.47M |
| Pretax Margin % | -3.78% | -2.51% | 3.69% | -2.58% | -8.8% | 5.61% | 5.64% | 2.96% | 4.08% | 6.45% | 8.66% | 6.58% | 2.21% | 6.79% | 10.16% | 10.52% | 10.11% | 4.74% | 6.1% | 10.56% | 12.03% | 12.12% | 9.5% | 3.2% | 3.99% |
| Income Tax | 14.68M | 15.41M | 12.53M | 85.63M | -13.04M | 16.12M | 12.51M | 3.78M | 24.22M | 71.28M | 39.22M | 36.98M | 21.97M | 37.77M | 42.74M | 32.84M | 40.31M | 23.23M | 27.29M | 30.88M | 27.87M | 20.87M | 12.92M | -3.52M | 1.33M |
| Effective Tax Rate % | -56.47% | -88.37% | 50.33% | -447.49% | 15.89% | 24.6% | 17.67% | 12.78% | 56.05% | 78.57% | 34.08% | 43.22% | 71.43% | 40.62% | 33.06% | 26.44% | 44.19% | 71.34% | 60.19% | 40.19% | 40.39% | 38.3% | 35.51% | -36.81% | 14.07% |
| Net Income | -40.67M | -32.84M | 12.36M | -104.77M | -68.99M | 49.39M | 58.29M | 25.79M | -2.64M | 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 |
| Net Margin % | -5.91% | -4.74% | 1.83% | -14.14% | -7.4% | 4.23% | 4.64% | 2.58% | -0.25% | 1.38% | 5.71% | 3.74% | 0.63% | 4.03% | 6.8% | 7.74% | 5.64% | 1.36% | 2.43% | 6.31% | 7.17% | 7.48% | 6.12% | 4.38% | 3.43% |
| Net Income Growth % | -163.82% | -365.62% | 111.8% | -51.86% | -239.69% | -15.28% | 126.02% | 1077.3% | -113.58% | -74.38% | 56.12% | 452.84% | -84.08% | -36.19% | -5.29% | 79.47% | 445.47% | -48.29% | -60.72% | 11.72% | 22.33% | 43.29% | 79.16% | 60.92% | - |
| Net Income (Continuing) | -40.67M | -32.84M | 12.36M | -104.77M | -68.99M | 49.39M | 58.29M | 25.79M | 17.33M | -11.13M | 70.31M | 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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 30.57M | 5.54M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 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 |
| EPS (Diluted) | -1.50 | -1.14 | 0.42 | -3.57 | -2.38 | 1.59 | 1.90 | 0.81 | -0.08 | 0.59 | 2.25 | 1.44 | 0.24 | 1.42 | 2.23 | 2.41 | 1.41 | 0.27 | 0.51 | 1.28 | 1.19 | 0.99 | 0.72 | 0.49 | -0.46 |
| EPS Growth % | -167.13% | -371.43% | 111.76% | -50% | -249.69% | -16.32% | 134.57% | 1117.59% | -113.49% | -73.78% | 56.25% | 500% | -83.1% | -36.32% | -7.47% | 70.92% | 422.22% | -47.06% | -60.16% | 7.56% | 20.2% | 37.5% | 46.94% | 206.52% | - |
| EPS (Basic) | - | -1.14 | 0.43 | -3.57 | -2.38 | 1.63 | 1.95 | 0.83 | -0.08 | 0.61 | 2.32 | 1.47 | 0.25 | 1.44 | 2.27 | 2.46 | 1.44 | 0.27 | 0.51 | 1.32 | 1.23 | 1.04 | 0.77 | 0.55 | -0.46 |
| Diluted Shares Outstanding | 27.04M | 28.89M | 29.68M | 29.36M | 29.01M | 31M | 30.64M | 31.96M | 33.14M | 33.04M | 33.73M | 33.79M | 36.45M | 38.95M | 38.75M | 37.93M | 36.12M | 34.85M | 35.62M | 35.84M | 34.55M | 33.94M | 32.63M | 26.8M | 21.18M |
| Basic Shares Outstanding | 27.04M | 28.89M | 28.91M | 29.36M | 29.01M | 30.24M | 29.9M | 30.94M | 31.63M | 32.1M | 32.76M | 33.16M | 35.77M | 38.38M | 38.06M | 37.12M | 35.38M | 34.48M | 35.21M | 34.81M | 33.38M | 32.35M | 30.44M | 23.65M | 21.18M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying NTGR stock.
For fiscal year 2025, NETGEAR, Inc. (NTGR) reported total revenue of $693.4M. This represents a 192.1% increase compared to $237.3M in 2002.
NETGEAR, Inc. (NTGR) reported a net loss of $32.8M for the fiscal year ending 2025.
NETGEAR, Inc. (NTGR) reported an operating income of $-35.1M, resulting in an operating profit margin of -5.1%. This margin reflects the operational efficiency of the business before interest and taxes.
NETGEAR, Inc. (NTGR) generated $251.0M in gross profit for the year, representing a gross profit margin of 36.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent negative operating margins
Metrics are mathematically derived from official filings.
Revenue Stagnation Amid Mix Shift
NTGR's revenue has been essentially flat, with 2026Q2 at $168.6M, down 1.2% YoY, though management's maintained guidance suggests a potential stabilization. According to recent SEC filings, the company's growth is increasingly reliant on enterprise momentum, which may offset consumer weakness.
The 2.9% YoY growth in 2025Q2 appears to be an outlier, as the broader trend over the past ten quarters shows a deceleration from $182.9M in 2024Q3 to $168.6M in 2026Q2. The shift toward Wi-Fi 7 and enterprise products may support ASPs, but the overall revenue base remains under pressure from retail channel contraction. Investors should monitor whether the enterprise segment can sustain growth to offset the declining Connected Home business.
Gross Margin Recovery Masks Structural Drag
Gross margin improved to 40.2% in 2026Q2 from 22.1% in 2024Q2, a significant recovery, but still below peers like Calix at 56.8%. As reported in financial statements, this improvement appears driven by product mix, yet the negative operating margin indicates cost structure misalignment.
The gross margin expansion from 22.1% to 40.2% over eight quarters suggests a favorable shift toward higher-margin enterprise and Pro AV products. However, the company's operating margin remains deeply negative at -5.0%, implying that SG&A and R&D expenses are not scaling down proportionally with revenue. This disconnect may indicate that the gross margin recovery is not yet sufficient to achieve profitability, and further cost discipline is needed.
Operating Leverage Absent in Cost Structure
Despite revenue growth of 2.9% YoY in 2025Q2, operating income remained negative at -$9.5M, indicating no operating leverage. Based on EDBL's reported figures, SG&A and R&D expenses have remained relatively stable, preventing margin expansion as revenue fluctuates.
The data shows that SG&A expenses have hovered around $50M per quarter, while R&D has ranged from $16.4M to $23.3M, with no clear downward trend. This suggests that the company's cost base is not flexing with revenue changes, leading to persistent operating losses. The lack of operating leverage is a critical concern, as even modest revenue growth does not translate into profitability, and investors should monitor whether management can right-size expenses.
Earnings Distorted by One-Time Gains
Net income swung from a $85.1M gain in 2024Q3 to losses in subsequent quarters, with 2026Q2 EPS at -$0.27 versus consensus of -$0.07. According to recent earnings releases, the 2024Q3 profit appears to be an anomaly, likely from a one-time item, not core operations.
The 2024Q3 net income of $85.1M and EPS of $2.90 are starkly inconsistent with the surrounding quarters, which all show losses. This suggests a non-operating gain, possibly from a legal settlement or asset sale, that inflates that period's earnings. Excluding that quarter, the company has consistently reported losses, indicating that the underlying business is not generating sustainable profits. The recent EPS miss further highlights the gap between expectations and actual performance.
R&D and SG&A Out of Sync with Revenue
Total operating expenses (R&D plus SG&A) have remained around $75M per quarter, even as revenue declined from $182.9M to $168.6M. As reported in financial statements, this rigidity in cost structure is a primary driver of the negative operating margin.
The combined R&D and SG&A expenses have not decreased proportionally with revenue, leading to an operating margin that has been negative for nine of the last ten quarters. The company's investment in R&D for Wi-Fi 7 and Pro AV may be necessary for future growth, but the current expense level appears unsustainable given the revenue base. Management's commentary on 'disciplined execution' suggests a focus on cost control, but the data shows limited progress, and further restructuring may be required.
Cost Structure Threatens Viability
The persistent negative operating margin, averaging -5.1% in recent quarters, suggests that NTGR's cost structure is fundamentally misaligned with its revenue generation. Short-sellers would argue that the company is burning cash and may need to raise capital or divest assets to survive.
Despite a fortress balance sheet with minimal debt, the company's inability to achieve operating profitability raises questions about its long-term viability. The negative operating margin, even with gross margin recovery, indicates that SG&A and R&D costs are too high relative to the scale of the business. If revenue continues to stagnate or decline, the company may face liquidity pressures, forcing difficult decisions. Investors should monitor whether management can execute a meaningful cost reduction or achieve a significant revenue inflection to reverse the trend.