Core Insights - NETGEAR, Inc. (NTGR) reported second-quarter 2025 non-GAAP earnings per share of 6 cents, surpassing the Zacks Consensus Estimate of a loss of 16 cents, compared to a non-GAAP loss of 74 cents per share in the same quarter last year [1][2] Financial Performance - NETGEAR generated net revenues of $170.5 million, exceeding the consensus estimate by 5.3% and surpassing the company's guidance of $155-$170 million, reflecting an 18.5% year-over-year increase and a 5.2% sequential rise [2][8] - The adjusted gross margin improved to 37.8% from 22.4% year-over-year, with the NFB segment gross margin at 46.7% compared to 33.7% in the prior year quarter [13] - Non-GAAP operating expenses were $65.7 million, up 3.7% year-over-year due to hiring plans [13][14] Segment Performance - The NFB segment revenues increased by 38% year-over-year to $82.6 million, driven by strong demand for ProAV managed switches, although supply constraints are a concern [9][10] - Home Networking revenues grew 13.1% year-over-year and 10% sequentially to $67.5 million, aided by an expanded product portfolio and improved operations [11] - The Mobile segment's revenues fell 16.1% year-over-year to $20.4 million due to weaker-than-expected service provider sales [10] Subscriber and Acquisition Updates - NETGEAR generated $9 million in recurring services revenues with 559,000 recurring subscribers, and acquired Exium to enhance its security offerings for small and medium enterprises [3] Guidance and Market Outlook - For the third quarter, NETGEAR predicts net revenues between $165 million and $180 million, with GAAP operating margin forecasted between (11)% and (8)% [4][18] - The company’s shares gained 4.4% in after-market trading, with a 50.1% increase over the past year compared to the Computer-Networking industry's growth of 43% [6]