NETGEAR delivered a strong third quarter in 2025, with net revenue of $184.6 million, a 0.9% increase year-over-year. The company achieved a record GAAP gross margin of 39.1% and positive non-GAAP operating income for the first time this year. This performance was primarily driven by the Enterprise segment, which saw a 15.7% revenue increase, and successful navigation of supply headwinds, particularly for ProAV managed switch products.
Q3 2025 net revenue reached $184.6 million, up 0.9% year-over-year, exceeding the high end of guidance.
GAAP gross margin hit a record 39.1%, an increase of 820 basis points from the prior year, with non-GAAP gross margin at 39.6%.
The Enterprise segment revenue grew by 15.7% year-over-year to $90.8 million, driven by strong ProAV solutions demand and improved supply.
NETGEAR repurchased approximately 815,000 shares for $20.0 million in Q3 at an average price of $24.55, and exited the quarter with over $326 million in cash and short-term investments.
For the fourth quarter of 2025, NETGEAR expects net revenue to be between $170 million and $185 million. Operating expenses are projected to slightly decrease due to normalizing facilities costs, partially offset by increased investments in software development and Enterprise go-to-market capabilities. Gross margins are anticipated to face a headwind of approximately 150 basis points due to rising memory costs.
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