NETGEAR Reports Second Quarter 2025 Results

NETGEAR, Inc., a global leader in intelligent networking solutions, has released its financial results for the second quarter of 2025, ending June 29, 2025. The company reported significant improvements in revenue and gross margins, alongside strategic acquisitions and operational highlights.

Financial Highlights

For Q2 2025, NETGEAR reported a net revenue of $170.5 million, marking an 18.5% increase from the same period last year. The GAAP gross margin reached a record high of 37.5%, up 1,540 basis points from 22.1% in Q2 2024. Non-GAAP gross margin also saw a similar increase to 37.8%. Despite these gains, the company reported a GAAP operating loss of $(9.5) million, a significant improvement from the $(46.9) million loss in Q2 2024. Non-GAAP operating loss was $(1.2) million, compared to $(31.1) million in the previous year. GAAP EPS improved to $(0.22) from $(1.56), while non-GAAP EPS turned positive at $0.06 compared to $(0.74) last year.

Business and Operational Highlights

NETGEAR's business units showed strong performance, with the NETGEAR For Business (NFB) segment leading the way. NFB revenue was $82.6 million, up 38.0% year over year, with a non-GAAP gross margin of 46.7%. The Home Networking segment also performed well, with revenue of $67.5 million, up 13.1% year over year, and a non-GAAP gross margin of 29.5%. However, the Mobile segment saw a decline in revenue to $20.4 million, down 16.1% year over year, but managed to improve its non-GAAP gross margin to 29.1%.

Strategic Initiatives and Corporate Developments

In Q2 2025, NETGEAR completed the acquisition of Exium to enhance its NFB offerings with added security features. The company also repurchased approximately $7.5 million of common stock. These strategic moves are part of NETGEAR's broader plan to streamline operations and reinvest in growth areas.

Management's Perspective

CJ Prober, Chief Executive Officer, highlighted the company's strong execution and strategic investments that have accelerated the transformation of its business units. Bryan Murray, Chief Financial Officer, noted the improved linearity across business units and the lowest DSOs in nearly eight years at 77 days. The company exited the quarter with nearly $364 million in cash and short-term investments.

Future Outlook

Looking ahead, NETGEAR expects third-quarter net revenue to be in the range of $165 million to $180 million. The company anticipates a GAAP operating margin between (11.0)% and (8.0)% and a non-GAAP operating margin between (5.5)% and (2.5)%. GAAP tax expense is expected to be between $0.8 million and $1.8 million, while non-GAAP tax expense is projected to range from $(0.5) million to $0.5 million.

SEC Filing: NETGEAR, INC. [ NTGR ] - 8-K - Jul. 30, 2025