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Dec 31, 2025
NETGEAR Q4 2025 Earnings Report
NETGEAR reported flat revenue, a significant increase in GAAP and non-GAAP gross margins, and improved operating income in Q4 2025.
Key Takeaways
NETGEAR, Inc. reported flat net revenue of $182.5 million in Q4 2025 compared to the prior year. The company achieved a record high GAAP gross margin of 40.4% and non-GAAP gross margin of 41.2%, significantly up from the prior year. GAAP operating income improved to $(4.7) million from $(15.1) million, and non-GAAP operating income was $5.9 million compared to $(4.2) million in Q4 prior year. GAAP EPS was $(0.02) and non-GAAP EPS was $0.26.
Net revenue remained flat at $182.5 million in Q4 2025 compared to the prior year.
GAAP gross margin reached a record high of 40.4%, an increase of 780 basis points from 32.6% in Q4 prior year.
Non-GAAP gross margin also saw a significant increase to 41.2%, up 840 basis points from 32.8% in Q4 prior year.
Non-GAAP EPS was $0.26, a substantial improvement from $(0.06) in Q4 prior year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
NETGEAR expects first quarter 2026 net revenue to be between $145 million and $160 million. Operating expenses are expected to be slightly reduced, while gross margins may face a headwind due to rising memory costs. GAAP operating margin is projected to be between (16.3)% and (13.3)%, and non-GAAP operating margin between (6.0)% and (3.0)%.
Positive Outlook
- Enterprise ProAV line demand expected to remain strong.
- Progress made on improving supply position for ProAV products.
- Operating expenses expected to be slightly reduced due to transformation-driven restructuring.
- Further acceleration of transformation later in the year due to redeployed savings.
- Additional improvements to subscription offerings planned for 2026 and launch of eSim-enabled M7 mobile hotspot to expand non-device revenue streams.
Challenges Ahead
- Softening market demand in the Consumer segment to start the quarter.
- Broader pricing pressures from electronics makers due to rising memory costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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