Revenue trajectory remains under pressure with a 2.0% year-over-year decline to $158.8M in 2026Q1, while operating margins continue to struggle at -5.0% due to persistent cost misalignment.
| 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 | 690.11M | 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 % | 2.81% | 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 | 431.18M | 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 | 258.93M | 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 % | 37.52% | 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 | 289.21M | 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 | 211.39M | 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 | 81.99M | 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 | 937K | 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 | -30.28M | -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 % | -4.39% | -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 | -19.43M | -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 % | -2.82% | -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 % | -169.96% | -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) | 10.85M | 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 | -26.32M | -26.44M | -72.32M | -32.2M | -33.88M | 66.6M | 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 | 8.3M | 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 | 8.3M | 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 | 5.46M | 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 | -24.82M | -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 % | -3.6% | -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 | 15.03M | 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 % | -60.56% | -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 | -39.84M | -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 % | -5.77% | -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 % | -259.51% | -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) | -39.84M | -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) | -1.42 | -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 % | -270.73% | -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 | 27.98M | 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 | 27.98M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Persistent negative operating margins
As reported in recent financial filings, NETGEAR's revenue trajectory remains challenged, with the most recent quarter showing a 2.0% year-over-year decline to $158.8M, underscoring the difficulty of sustaining growth within a highly commoditized consumer networking market that continues to experience significant cyclical demand volatility.
The persistent revenue contraction suggests that the company's core Connected Home segment is struggling to offset the broader industry shift toward integrated networking solutions. While the SMB segment offers a potential growth vector, the current top-line performance indicates that these gains are insufficient to stabilize the overall enterprise revenue base.
Based on the provided income statement data, gross margins have fluctuated significantly, ranging from a low of 22.1% in 2024Q2 to a recent 40.5% in 2026Q1, highlighting the company's limited ability to maintain consistent pricing power amidst intense retail competition and fluctuating component costs.
The wide variance in gross margins suggests that the company is frequently forced to utilize promotional allowances and contra-revenue adjustments to clear channel inventory. This lack of margin stability implies that the product mix remains heavily skewed toward price-sensitive hardware rather than higher-margin, software-defined networking services.
According to the latest quarterly results, NETGEAR continues to struggle with negative operating leverage, as evidenced by an operating margin of -5.0% in 2026Q1, which indicates that the company's fixed cost base remains misaligned with its current, lower-volume revenue reality.
The inability to scale operating income alongside gross profit suggests that SG&A and R&D expenses are not being managed with sufficient discipline relative to the declining revenue base. Investors should monitor whether management can successfully right-size the cost structure without compromising the R&D necessary for the Pro AV pivot.
As indicated by the reported figures, net income has been consistently negative in recent periods, with the exception of a 2024Q3 anomaly, suggesting that the company's bottom-line performance is currently driven more by non-operating items and accounting adjustments than by core operational profitability.
The persistent reliance on stock-based compensation, which reached $8.2M in 2026Q1, further dilutes the quality of earnings for shareholders while the company remains in a cash-burning state. This pattern warrants further investigation into whether the current compensation structure is appropriately incentivizing a return to sustainable, GAAP-positive profitability.
Based on an analysis of the income statement, the primary risk to the investment thesis is the potential for permanent margin compression, as the company's reliance on retail distribution channels leaves it vulnerable to ongoing inventory write-downs and aggressive promotional pricing strategies.
Short-sellers would likely focus on the disconnect between the company's high cash balance and its inability to generate positive operating cash flow from its core business. If the transition to subscription-based recurring revenue fails to reach critical mass, the company may face a long-term erosion of its enterprise value.
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.