NETGEAR (NTGR) Q4 2025 earnings summary

Executive summary

• Achieved first year of revenue growth since 2020, with record gross margins and full-year non-GAAP profitability in 2025.

• Enterprise segment delivered double-digit revenue growth year-over-year, driving profitability improvements.

• Strategic restructuring, software acquisitions, and expansion of subscription and services revenue supported operational turnaround.

• Repurchased $50 million of common stock during 2025.

• Ended 2025 with strong momentum and $323 million in cash and short-term investments.

Financial highlights

• FY 2025 net revenue was $699.6 million, up 3.8% year-over-year.

• Q4 2025 revenue was $182.5 million, flat year-over-year.

• Q4 non-GAAP gross margin was 41.2%, up 840 basis points year-over-year.

• Q4 non-GAAP EPS was $0.26; full-year non-GAAP EPS was $0.44.

• Ended Q4 with $323 million in cash and short-term investments.

Outlook and guidance

• Q1 2026 net revenue expected between $145 million and $160 million.

• Q1 2026 non-GAAP operating margin expected between -6% and -3%.

• Anticipates a 100 basis point gross margin headwind in Q1 due to rising memory costs.

• Service provider revenue projected to decline ~35% year-over-year in Q1.

• Q2 2026 expected to see sequential revenue and margin improvement as enterprise price increases take effect.