$NTGR

NETGEAR, INC

CIK:0001122904|SEC Filings

Unaudited Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 28, 2026

Jun. 29, 2025

Jun. 28, 2026

Jun. 29, 2025

Income Statement [Abstract]

Net revenue

^[1],[2]

$ 168,562

$ 170,532

$ 327,381

$ 332,592

Cost of revenue

100,776

106,554

195,293

212,288

Gross profit

67,786

63,978

132,088

120,304

Operating expenses:

Research and development

22,332

20,845

43,997

39,154

Sales and marketing

33,310

31,053

64,980

59,094

General and administrative

19,804

20,683

38,987

38,753

Litigation reserves, net

(1)

499

Restructuring and other charges

782

862

5,658

5,604

Total operating expenses

76,227

73,518

154,121

142,643

Loss from operations

(8,441)

(9,540)

(22,033)

(22,339)

Other income, net

^[3]

1,701

3,976

3,282

12,147

Loss before income taxes

(6,740)

(5,564)

(18,751)

(10,192)

Provision for income taxes

513

864

1,542

2,270

Net loss

$ (7,253)

$ (6,428)

$ (20,293)

$ (12,462)

Net loss per share

Basic

$ (0.27)

$ (0.22)

$ (0.74)

$ (0.43)

Diluted

$ (0.27)

$ (0.22)

$ (0.74)

$ (0.43)

Weighted average shares used to compute net loss per share:

Basic

27,041

28,911

27,502

28,815

Diluted

27,041

28,911

27,502

28,815

[1]	No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
[2]	No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
[3]	Amounts included interest income of $1.7 million and $3.8 million for the three and six months ended June 28, 2026, respectively, and $3.1 million and $6.4 million for the three and six months ended June 29, 2025, respectively. Amounts also included gain/(loss), net from derivatives not designated as hedging instruments of $0.4 million and $0.8 million for the three and six months ended June 28, 2026, respectively, and $(2.1) million and $(3.1) million for the three and six months ended June 29, 2025, respectively. For the three and six months ended June 28, 2026, the amount also included $0.6 million and $1.3 million, respectively, of imputed interest expense related to an intangible asset acquisition. For the three and six months ended June 29, 2025, the amount also included gain/(loss), net from foreign currency transactions of $2.4 million and $3.8 million, respectively, and proceeds of $4.7 million from a sale of patents for the six months ended June 29, 2025.

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 28, 2026	Jun. 29, 2025
Cash flows from operating activities:
Net loss	$ (20,293)	$ (12,462)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	7,223	3,291
Stock-based compensation	18,225	12,171
Accretion of discounts and imputed interests, net	1,326	(783)
Deferred income taxes	174	(99)
Provision for excess and obsolete inventory	3,606	2,179
Other	10	(212)
Changes in assets and liabilities:
Accounts receivable, net	(10,775)	11,339
Inventories	(2,083)	3,055
Prepaid expenses and other assets	(7,026)	(2,173)
Accounts payable	10,683	273
Accrued employee compensation	(9,059)	3,939
Other accrued liabilities	1,366	(19,802)
Deferred revenue	(1,661)	(1,583)
Income taxes payable	(236)	(9,660)
Net cash used in operating activities	(8,520)	(10,527)
Cash flows from investing activities:
Purchases of short-term investments	(40,197)	(59,683)
Proceeds from maturities of short-term investments	60,000	60,000
Purchases of property and equipment	(5,276)	(4,927)
Payments made in connection with business acquisitions, net of cash acquired	0	(12,185)
Purchases of long-term investments	(60)	(105)
Net cash provided by (used in) investing activities	14,467	(16,900)
Cash flows from financing activities:
Repurchases of common stock, including excise tax	(33,033)	(15,662)
Restricted stock unit withholdings	(8,602)	(9,697)
Proceeds from exercise of stock options	0	5,266
Proceeds from issuance of common stock under employee stock purchase plan	2,555	2,089
Principal payments on deferred purchase price of intangible asset acquisition	(2,475)	0
Net cash used in financing activities	(41,555)	(18,004)
Net decrease in cash and cash equivalents and restricted cash	(35,608)	(45,431)
Cash and cash equivalents and restricted cash, at beginning of period	212,006	288,551
Cash and cash equivalents and restricted cash, at end of period	176,398	243,120
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets
Cash and cash equivalents at end of period	174,298	241,020
Restricted cash included within other non-current assets at end of period	2,100	2,100
Total cash, cash equivalents, and restricted cash at end of period shown in the condensed consolidated statements of cash flows	176,398	243,120
Non-cash investing and financing activities:
Additions to property and equipment included in accounts payable and accrued liabilities	$ 628	$ 2,863

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 28, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 174,298	$ 209,904
Short-term investments	93,581	113,132
Accounts receivable, net of allowance for doubtful accounts of $455 as of June 28, 2026 and $466 as of December 31, 2025	152,820	142,045
Inventories	174,933	176,456
Prepaid expenses and other current assets	38,031	31,745
Total current assets	633,663	673,282
Property and equipment, net	25,378	26,001
Operating lease right-of-use assets	32,149	36,715
Intangible assets, net	35,643	38,480
Goodwill	45,022	45,022
Other non-current assets	16,847	16,771
Total assets	788,702	836,271
Current liabilities:
Accounts payable	54,036	43,749
Accrued employee compensation	25,671	34,731
Other accrued liabilities	149,189	144,028
Deferred revenue	25,458	26,904
Income taxes payable	1,042	809
Total current liabilities	255,396	250,221
Non-current income taxes payable	6,707	7,176
Non-current operating lease liabilities	35,506	41,016
Other non-current liabilities	34,668	40,035
Total liabilities	332,277	338,448
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock: $0.001 par value; 5,000,000 shares authorized; none issued or outstanding
Common stock: $0.001 par value; 200,000,000 shares authorized; shares issued and outstanding: 27,142,599 as of June 28, 2026 and 27,943,198 as of December 31, 2025	27	28
Additional paid-in capital	1,057,325	1,036,545
Accumulated other comprehensive income (loss)	(32)	196
Accumulated deficit	(600,895)	(538,946)
Total stockholders' equity	456,425	497,823
Total liabilities and stockholders’ equity	$ 788,702	$ 836,271