Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to Commission file number 000-50350 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended December 31, 2025 NETGEAR, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...

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Core Insights - NETGEAR, Inc. (NTGR) reported fourth-quarter 2025 non-GAAP earnings per share (EPS) of 26 cents, significantly exceeding the Zacks Consensus Estimate of 5 cents, and improved from a non-GAAP loss of 6 cents per share in the same quarter last year [1][8] Financial Performance - NETGEAR generated net revenues of $182.5 million, surpassing the consensus estimate by 2.9% and aligning with the high end of its guidance of $170-$185 million, with revenues remaining flat year over year and down 1.1% sequentially [2][8] - For the full year 2025, revenues increased by 3.8% to $699.6 million, while non-GAAP EPS improved to 44 cents from a loss of 91 cents in 2024, with the enterprise segment revenues rising by 18.8% [4] - The Enterprise segment's revenues grew 10.6% to $89.4 million, driven by strong demand for ProAV switch products, while the Consumer segment's revenues fell 8.4% year over year to $93.1 million [10][11] Segment Performance - Management restructured reporting segments, renaming NETGEAR for Business to NETGEAR Enterprise, and now reports under NETGEAR Enterprise and NETGEAR Consumer [3] - The Consumer segment faced challenges, particularly a 30% year-over-year decline in sales to Service Providers, although the core Consumer business saw a 1.6% increase driven by WiFi 7 routers and mesh systems [11] Market Dynamics - The company anticipates a 35% year-over-year decline in revenues from Service Provider and related products in the first quarter due to government shutdowns and softening demand in the Consumer segment [6] - First-quarter revenues are projected to be between $145 million and $160 million, reflecting headwinds from rising memory costs [8][17] Margin and Cost Structure - The adjusted gross margin improved to 41.2% from 32.8% year over year, with the Enterprise segment's non-GAAP gross margin at 51.4%, up 750 basis points from the prior year [14] - Non-GAAP operating expenses rose by 8.3% year over year to $69.2 million, attributed to hiring plans [15] Cash Flow and Shareholder Returns - For the quarter ended December 31, 2025, NETGEAR reported $19.5 million in cash from operations and had $323 million in cash and cash equivalents, with total current liabilities of $250.2 million [16] - The company repurchased shares worth $15 million in the quarter and $50 million throughout 2025, with 1.5 million shares remaining under its existing authorization [16] Guidance and Outlook - The company expects a 100-basis point headwind on gross margin due to rising memory costs, with GAAP operating margin forecasted between (16.3)% and (13.3)% and non-GAAP operating margin estimated to be (6)% to (3)% for the first quarter [17]

Core Insights - NETGEAR achieved its first year of revenue growth since 2020 in fiscal 2025, with net revenue reaching $699.6 million, a 3.8% increase from the previous year, and recorded non-GAAP profitability [4][7] - The enterprise segment saw significant growth, increasing by 18.8%, while consumer revenue declined by 7.3%, primarily due to a 23.3% drop in sales to service providers [2][4] - Management highlighted foundational changes and restructuring efforts that redirected investments towards higher growth and profitability areas, resulting in improved gross margins and net income [3][4] Financial Performance - Full-year non-GAAP operating profit was $5.9 million, marking the first full-year non-GAAP operating profit since 2021, with a non-GAAP net income of $13.3 million or $0.44 per share [1][7] - Non-GAAP gross margin improved by approximately 920 basis points year-over-year, reaching a record 41.2% in Q4 [9][7] - Q4 revenue was $182.5 million, flat year-over-year, with enterprise revenue contributing $89.4 million, up 10.6% year-over-year [8][9] Strategic Initiatives - The company is focusing on expanding its software capabilities and recurring revenue, with annual recurring revenue (ARR) growing 18% year-over-year to $40.4 million, supported by 558,000 recurring subscribers [6][14] - NETGEAR launched new products in 2025 to strengthen its consumer offerings and enhance subscription services [13] - A strategic agreement was made to acquire a perpetual license for the operating system powering its AV managed switches, which is expected to improve gross margins [11] Outlook for 2026 - For Q1 2026, management guided revenue to be between $145 million and $160 million, anticipating a gross margin headwind of approximately 100 basis points due to rising memory costs [5][19] - The company executed a small restructuring affecting about 5% of employees to streamline operations and maintain investment capacity [15] - Management expressed concerns about an industry-wide memory shortage impacting costs, particularly in the consumer segment, while noting that the enterprise segment is less affected [16][17]

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 ...

Company Overview - Dolby Laboratories, Inc. is a prominent player in the audio and imaging industry, recognized for its innovative sound technologies across various platforms including cinemas, home theaters, PCs, mobile devices, and games [1] Financial Performance - Dolby has a Return on Invested Capital (ROIC) of 8.28% and a Weighted Average Cost of Capital (WACC) of 7.90%, resulting in a ROIC to WACC ratio of 1.05, indicating efficient capital utilization with potential for improvement compared to peers [2] - NETGEAR, Inc. has a negative ROIC of -7.78% against a WACC of 8.91%, leading to a ROIC to WACC ratio of -0.87, highlighting inefficiencies in capital utilization [3] - Morningstar, Inc. exhibits a strong ROIC of 15.33% and a WACC of 8.43%, resulting in a ROIC to WACC ratio of 1.82, indicating high efficiency in generating returns over its cost of capital, outperforming Dolby and other peers [4] - Copart, Inc. has a ROIC of 14.43% and a WACC of 8.98%, yielding a ROIC to WACC ratio of 1.61, while MSC Industrial Direct shows a ROIC of 11.46% and a WACC of 7.32%, with a ratio of 1.57, both surpassing Dolby's efficiency [5]