Key Takeaways NTGR posted Q4 non-GAAP EPS of 26 cents, beating estimates, as revenues of $182.5M came within guidance.NETGEAR's Enterprise segment grew 10.6% on ProAV switch demand, driving higher margins.NTGR guided Q1 revenues of $145M-$160M, citing memory cost headwinds and softer Consumer demand.NETGEAR, Inc. (NTGR) reported fourth-quarter 2025 non-GAAP earnings per share (EPS) of 26 cents compared with the Zacks Consensus Estimate of 5 cents. The company reported a non-GAAP loss of 6 cents per share in ...

On profitability, Murray said NETGEAR produced full-year non-GAAP operating profit of $5.9 million (0.8% operating margin), its first full-year non-GAAP operating profit since 2021. Full-year non-GAAP net income was $13.3 million, or $0.44 per share.For the full year, CFO Bryan Murray reported net revenue of $699.6 million, up 3.8% from 2024. The enterprise segment grew 18.8% for the year, while consumer revenue declined 7.3%, driven largely by a 23.3% drop in sales to service providers and associated produ ...

NETGEAR, Inc. (NTGR) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to a loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +447.37%. A quarter ago, it was expected that this company would post a loss of $0.09 per share when it actually produced earnings of $0.12, delivering a surprise of +233.33%.Over the last four quarters, the company ha ...

Financial Data and Key Metrics Changes - NETGEAR achieved its first year of revenue growth since 2020, with full-year revenues of $699.6 million, up 3.8% year-over-year [26] - Non-GAAP gross margin reached an all-time high of 41.2% in Q4 2025, marking an 840 basis point increase compared to the prior year [27] - Non-GAAP EPS for the full year was $0.44, with a significant improvement of $1.35 compared to the previous year [32] Business Line Data and Key Metrics Changes - The enterprise segment generated $89.4 million in revenue for Q4, up 10.6% year-over-year, while the consumer segment reported $93.1 million, down 8.4% year-over-year [21][24] - The enterprise gross margin was 51.4%, a record for this business, while the consumer segment gross margin improved to 31.4% [30] - The enterprise business saw double-digit growth year-over-year, particularly in ProAV solutions, which experienced over 25% sell-through growth [64] Market Data and Key Metrics Changes - The consumer business faced challenges with a 30% decline in sales to service providers, but core consumer business revenues increased by 1.6% year-over-year [26] - The company reported a decline in service provider revenue, projecting around $20 million for Q1 2026, a decrease of approximately 35% compared to Q1 2025 [37] - Inventory levels in retail are tightening, with expectations of lean inventory in anticipation of a broader Wi-Fi 7 rollout [60] Company Strategy and Development Direction - NETGEAR is focusing on transforming its business by investing in high-growth opportunities, particularly in the enterprise segment [6] - The company aims to leverage software investments to expand subscription and services revenue, with a goal of increasing its recurring subscriber base [25] - A recent restructuring was implemented to streamline operations and empower business units, impacting approximately 5% of employees [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges related to memory shortages impacting the consumer business, with expectations of limited gross margin impact in the first half of 2026 [16] - The company remains optimistic about its long-term growth trajectory, despite potential headwinds from rising memory costs [18] - Management emphasized the importance of maintaining operational efficiency and agility in navigating supply chain challenges [19] Other Important Information - NETGEAR repurchased approximately $50 million in shares throughout 2025, reflecting its commitment to returning capital to shareholders [15] - The company ended Q4 2025 with $323 million in cash and short-term investments, indicating a strong balance sheet [33] Q&A Session Summary Question: Can you elaborate on the potential impact of memory prices on the business? - Management indicated that mitigation efforts are in place, but the impact on the consumer side could be significant if memory prices remain high [40][42] Question: What is the competitive pricing environment in the consumer market? - Management noted that while enterprise pricing is increasing, the consumer side is more complex, with some competitors not raising prices [46][48] Question: How is the channel inventory health currently? - Management stated that retail partners are tightening inventory levels, which is typical post-holiday season [61] Question: What is the status of the backlog for ProAV managed switches? - Management confirmed that they are on track to clear the backlog and are now in a position to meet unconstrained demand [63]

Financial Data and Key Metrics Changes - NETGEAR achieved its first year of revenue growth since 2020, with full-year revenues of $699.6 million, up 3.8% year-over-year [26] - Non-GAAP gross margin reached an all-time high of 41.2% in Q4 2025, marking an 840 basis point increase compared to the prior year [27] - Non-GAAP operating profit for the full year was $5.9 million, resulting in a non-GAAP operating margin of 0.8%, the first return to profitability since 2021 [27] Business Line Data and Key Metrics Changes - The enterprise segment generated $89.4 million in revenue for Q4, up 10.6% year-over-year, while the consumer segment reported $93.1 million, down 8.4% year-over-year [22][24] - The enterprise gross margin was 51.4%, up 750 basis points year-over-year, driven by strong demand for Pro AV managed switches [30] - The consumer segment's gross margin improved to 31.4%, a 750 basis point increase year-over-year, aided by a better product mix [30] Market Data and Key Metrics Changes - The enterprise business saw double-digit growth year-over-year, with ASP and units growing in the Pro AV managed switch products [20] - The consumer business experienced a decline in sales to service providers by approximately 30% compared to the prior year, while core consumer business increased by 1.6% [26] - The company ended Q4 with 558,000 recurring subscribers, contributing to an 18% year-over-year growth in ARR, reaching over $40 million [25][79] Company Strategy and Development Direction - NETGEAR is focusing on transforming its business by investing in high-growth opportunities, particularly in the enterprise segment, while also enhancing software capabilities through acquisitions [8][9] - The company aims to increase its enterprise business to represent about 65% of overall revenue, which is expected to drive margin expansion [74] - A recent restructuring was implemented to empower business units and streamline execution, impacting approximately 5% of employees [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges due to memory shortages impacting the consumer business, but expressed confidence in mitigating these issues through various strategies [16][17] - The company remains optimistic about its long-term growth trajectory, despite potential headwinds in the second half of 2026 due to rising memory costs [35] - Management emphasized the importance of maintaining operational efficiency and agility in navigating supply chain challenges [19] Other Important Information - NETGEAR repurchased approximately $50 million in shares during 2025, reflecting its commitment to returning capital to shareholders [15][34] - The company is preparing for potential regulatory changes that could impact competition, particularly concerning foreign adversaries in the market [49][50] Q&A Session Summary Question: Can you elaborate on the potential impact of memory prices on the business? - Management indicated that mitigation efforts are in place, including cost-sharing and adjusting procurement strategies, but the impact remains unpredictable [40][42] Question: What is the competitive pricing environment in the consumer market? - Management noted that while enterprise pricing is increasing, the consumer side is more complex, with some competitors not raising prices [46][48] Question: How is the channel inventory health and the rollout of Wi-Fi 7? - Management confirmed that retail partners are tightening inventory levels, aligning with expectations for the new Wi-Fi 7 rollout [62] Question: What is the outlook for operating leverage and margin expansion? - Management stated that investments in the enterprise side are expected to yield long-term benefits, with a focus on maintaining operational discipline [71][74]

Financial Data and Key Metrics Changes - NETGEAR achieved full-year revenue of $699.6 million, representing a 3.8% increase compared to the previous year, marking the first year of revenue growth since 2020 [26][4] - Non-GAAP gross margin reached an all-time high of 41.2% in Q4 2025, an increase of 840 basis points year-over-year [27][14] - Non-GAAP operating profit for the full year was $5.9 million, with a non-GAAP operating margin of 0.8%, indicating a return to profitability for the first time since 2021 [27][4] Business Segment Data and Key Metrics Changes - The enterprise segment generated $89.4 million in revenue for Q4, up 10.6% year-over-year, while the consumer segment reported $93.1 million, down 8.4% year-over-year [20][24] - Enterprise gross margin was 51.4%, a record for this segment, up 750 basis points year-over-year, while the consumer segment gross margin improved to 31.4%, also up 750 basis points year-over-year [29][30] - The enterprise business saw double-digit growth in end-user demand for ProAV Managed Switch products, reaching record levels [20][14] Market Data and Key Metrics Changes - The consumer business experienced a decline in sales to service providers by approximately 30% year-over-year, while core consumer business revenue increased by 1.6% [26][24] - The company ended Q4 with 558,000 recurring subscribers, achieving an 18% year-over-year growth in annual recurring revenue (ARR), totaling over $40 million [25][13] Company Strategy and Development Direction - NETGEAR is focused on transforming its business by investing in software capabilities and expanding subscription and services revenue, including the launch of a ProAV full-service team [10][9] - The company aims to increase the enterprise segment's contribution to overall revenue to about 65%, which is expected to enhance margin expansion [72][74] - A recent restructuring aimed at improving business unit empowerment and streamlining execution was implemented, impacting approximately 5% of employees [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges related to memory shortages impacting the consumer business, with expectations of a limited gross margin impact in the first half of 2026 [16][35] - The company remains optimistic about its long-term growth trajectory, despite potential headwinds in the second half of 2026 due to rising memory costs [17][18] - Management emphasized the importance of maintaining operational efficiency and agility in navigating supply chain challenges [19][23] Other Important Information - NETGEAR repurchased approximately $50 million in shares during 2025, with $15 million repurchased in Q4 alone [15][33] - The company has a strong balance sheet, ending Q4 with $323 million in cash and short-term investments [33][21] Q&A Session Summary Question: Can you elaborate on the potential impact of memory prices on the business? - Management indicated that mitigation efforts are in place, but the impact of memory prices on the consumer side remains unpredictable [40][42] Question: What is the current competitive environment in the consumer market? - Management noted that while enterprise competitors are raising prices, the consumer market is more complex, with some players not following suit [46][48] Question: How is the channel inventory health currently? - Management stated that retail partners are tightening inventory levels, which is typical post-holiday, but there is no significant reset of optimal inventory levels [61][62]

Exhibit 99.1 NEWS RELEASE 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 exited 2025 with a strong fourth quarter that underscored the momentum we've built across the business, delivering the first year of revenue growth in five years and a 920 basis point increase in our non-GAAP gross margin compared to the prior year. It's clear that our transformation ...

Dolby Laboratories, Inc. (NYSE:DLB) is a renowned company in the audio and imaging industry, known for its innovative sound technologies. It provides audio, imaging, and voice technologies for cinemas, home theaters, PCs, mobile devices, and games. Dolby's competitors include companies like NETGEAR, Morningstar, Copart, and MSC Industrial Direct, each operating in different sectors but comparable in financial analysis.Dolby Laboratories has a Return on Invested Capital (ROIC) of 8.28% and a Weighted Average ...

Core Viewpoint - NETGEAR, Inc. (NTGR) has faced significant selling pressure, resulting in a 7% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1]. Technical Analysis - The Relative Strength Index (RSI) is utilized to determine if NTGR is oversold, with a current reading of 29.65, suggesting that the stock may soon experience a reversal in trend [2][5]. - RSI serves as a momentum oscillator that helps identify price movement changes, indicating potential entry opportunities for investors when a stock is undervalued due to excessive selling [3]. Fundamental Indicators - Analysts have raised earnings estimates for NTGR by 25.1% over the last 30 days, reflecting a strong consensus among sell-side analysts, which typically correlates with price appreciation in the near term [7]. - NTGR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [8].

NETGEAR Conference Call Summary Company Overview - NETGEAR is approaching its 30-year anniversary, having been spun out from Bay Networks in 1996 [2][4] - The company has historically been consumer-centric but is undergoing a significant transformation to elevate its enterprise business, which now accounts for about 50% of revenue [4][5] Financial Performance - The enterprise segment achieved a gross margin of approximately 50% and a contribution margin of around 25%, with a year-over-year growth of 16% [5] - The company recently held its first investor day, outlining mid and long-range targets and strategies for market success [5][7] Competitive Advantage - NETGEAR's competitive edge lies in its strong supply chain, global distribution, and high-quality product performance [10] - The company is focusing on software differentiation by insourcing software development, which was previously outsourced [10][11] - In the ProAV segment, NETGEAR's solutions reportedly reduce deployment time by 90% compared to legacy providers [12] Market Dynamics - The ProAV market is valued at approximately $3 billion and is expected to grow at a CAGR of 14% over the next five years [20] - NETGEAR aims to serve small to medium enterprises (SMEs) that are currently underserved by larger networking companies, focusing on affordability and reliability [21] Supply Chain and Component Issues - The company has faced supply constraints, particularly in the AV product line, with lead times exceeding one year for key components [24] - NETGEAR anticipates resolving supply issues by Q1 2026, with plans to build buffer stock [25] Consumer Market Insights - Despite concerns about consumer confidence and inflation, NETGEAR has experienced strong holiday sales, surpassing expectations [28] - The company is adapting its product offerings to include a "good, better, best" strategy to enhance market participation [28] Wi-Fi 8 and Future Opportunities - Wi-Fi 8 is expected to improve reliability and reduce latency, addressing key connectivity issues in homes [32] - The company is excited about the potential of Wi-Fi 8 and its alignment with their product roadmap [33] Subscription Services - NETGEAR sees long-term growth potential in consumer subscriptions, currently generating about $36 million in annual recurring revenue (ARR) [36] - The company plans to decouple subscription services from device sales to drive new subscriber growth [34] Service Provider Business Outlook - The service provider segment has declined by about 20% year-to-date, and NETGEAR does not expect it to be a growth area moving forward [37] - The company will continue to support its existing products but will focus on strategic investments in 5G technology [39] Financial Health and Cash Flow - NETGEAR's cash position has improved from $285 million at the start of 2024 to $326 million, despite stock repurchases and acquisitions [44] - The company expects to convert 85%-100% of non-GAAP net income into free cash flow [44] Strategic Focus - NETGEAR is committed to funding organic growth, exploring M&A opportunities, and returning capital to shareholders [45][46] - The company is in the early stages of a transformation roadmap, focusing on enhancing performance and growth in both consumer and enterprise segments [41][42] Conclusion - NETGEAR is executing a bold transformation strategy, with a focus on elevating its enterprise business and leveraging software differentiation [49] - Investors are encouraged to review the investor day presentation for detailed insights into the company's market strategies and financial outlook [49]