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1. Company Snapshot

1.a. Company Description

NETGEAR, Inc.designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers.The company operates in two segments, Connected Home, and Small and Medium Business.


It offers smart home/connected home/broadband access products, such as Wi-Fi routers and home Wi-Fi systems, broadband modems, Wi-Fi gateways, Wi-Fi hotspots, Wi-Fi range extenders, Powerline adapters and bridges, Wi-Fi network adapters, and digital canvasses; and value-added service offerings, including technical support, parental controls, and cybersecurity protection.The company also provides Ethernet switches, Wi-Fi mesh systems and access points, local and remote unified storage products, and Internet security appliances for small and medium-sized businesses, as well as education, hospitality and health markets.It markets and sells its products through traditional retailers, online retailers, wholesale distributors, direct market resellers, value-added resellers, and broadband service providers, as well as through its direct online store at www.netgear.com.


in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.The company was incorporated in 1996 and is headquartered in San Jose, California.

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1.b. Last Insights on NTGR

NETGEAR's recent performance was driven by strong Q1 2025 earnings, beating estimates with a GAAP operating income of $(12.8) million, despite a 1.5% year-over-year decline in net revenue. The company's focus on cost cuts and buybacks also contributed to its growth, with a 550 basis point increase in GAAP gross margin to 34.8%. Additionally, NETGEAR's acquisition of Exium, a cybersecurity company, is expected to enhance its push into cloud-based security and deliver an integrated SASE platform for small and medium enterprises.

1.c. Company Highlights

2. NETGEAR's Q3 2025 Earnings: A Strong Performance in Enterprise Segment

NETGEAR reported a revenue of $184.6 million for Q3 2025, representing an 8.2% sequential increase and a 0.9% year-over-year growth, driven primarily by the Enterprise segment. The company's non-GAAP gross margin reached a record 39.6%, an 180 basis point increase from the previous quarter and 850 basis points higher than the same period last year. Non-GAAP EPS was $0.12, beating estimates of -$0.09. The company's cash and short-term investments stood at $326.4 million, a decrease of $37.1 million from the prior quarter due to $20 million in stock repurchases.

Publication Date: Nov -17

📋 Highlights
  • Enterprise Segment Growth: Revenue reached $90.8 million, up 9.9% sequentially and 15.7% year-over-year, driven by managed switch demand in ProAV.
  • Non-GAAP Gross Margin Record: Hit 39.6%, a 180 bps increase from the prior quarter and 850 bps higher than year-ago, reflecting operational efficiency.
  • Home Networking Expansion: Generated $72.6 million in revenue, up 7.6% sequentially, with share growth in WiFi 7 routers and mesh systems.
  • Stock Repurchases & Cash Reserves: $20 million in share repurchases (avg. $24.55/share) and $326.4 million in cash and short-term investments at quarter-end.
  • Recurring Revenue Growth: ARR reached $37.9 million (+17.2% YoY), supported by 560,000 recurring subscribers and strategic rebranding to strengthen enterprise focus.

Segment Performance

The Enterprise segment drove growth, delivering $90.8 million in revenue, up 9.9% sequentially and 15.7% year-over-year, driven by demand for managed switch products, particularly in the ProAV space. The home networking business also saw growth, with net revenue of $72.6 million, up 7.6% sequentially, driven by share growth in WiFi 7 routers and mesh systems.

Operational Highlights

NETGEAR repurchased $20 million of its common stock at an average price of $24.55 per share and is launching a new website and rebranding its commercial business as NETGEAR Enterprise. The company is also changing its segment reporting to NETGEAR Enterprise and NETGEAR Consumer starting Q4. NETGEAR's recurring subscriber base grew, with annual recurring revenue (ARR) reaching $37.9 million, up 17.2% year-over-year.

Outlook and Guidance

For Q4, NETGEAR expects net revenue to be in the range of $170 million to $185 million, with a GAAP operating margin to be in the range of negative 7.3% to negative 4.3% and a non-GAAP operating margin to be in the range of negative 2% to 1%. The company expects to drive long-term growth, profitability, and shareholder value creation, with investments needed to drive sustainable profitable growth.

Valuation

NETGEAR's current valuation metrics indicate a 'P/E Ratio' of -30.53, 'P/B Ratio' of 1.57, 'P/S Ratio' of 1.14, and 'EV/EBITDA' of -21.38. With analysts estimating next year's revenue growth at 2.7%, the current valuation appears to be factoring in moderate growth expectations. The company's 'ROIC (%)' is -7.91, and 'ROE (%)' is -4.96, indicating room for improvement in returns.

3. NewsRoom

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NETGEAR® to Present at Upcoming Investor Conference

Dec -03

Source: businesswire.com

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Ensign Peak Advisors Inc Trims Position in NETGEAR, Inc. $NTGR

Dec -01

Source: defenseworld.net

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NETGEAR (NTGR) Loses 24.3% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Nov -24

Source: zacks.com

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9,529 Shares in NETGEAR, Inc. $NTGR Purchased by Campbell & CO Investment Adviser LLC

Nov -18

Source: defenseworld.net

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NETGEAR, Inc. (NTGR) Analyst/Investor Day Transcript

Nov -18

Source: seekingalpha.com

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NETGEAR Introduces the Nighthawk 5G M7 Hotspot with New Mobile App and eSIM Marketplace to Enable Fast Portable Connectivity

Nov -17

Source: businesswire.com

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NETGEAR Enterprise Launches DRIVE Partner Success Program to Empower Partners, Accelerate Growth, and Deliver Exceptional Customer Value

Nov -04

Source: businesswire.com

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NETGEAR Q3 Earnings & Revenues Beat Estimates, Q4 Guidance Provided

Oct -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.82%)

6. Segments

Connected Home

Expected Growth: 10.43%

The 10.43% growth of Connected Home from NETGEAR, Inc. is driven by increasing demand for smart home devices, rising adoption of IoT technology, and growing need for secure and reliable home networks. Additionally, the shift towards remote work and online learning has boosted the demand for high-performance home Wi-Fi solutions.

NETGEAR for Business

Expected Growth: 8.9%

NETGEAR's 8.9% growth in its business segment is driven by increasing demand for secure and reliable networking solutions, particularly among small to medium-sized businesses and the growing need for Wi-Fi 6 and 5G-enabled products. Additionally, the company's focus on innovation, strategic partnerships, and expansion into new markets have contributed to its growth momentum.

7. Detailed Products

Routers

NETGEAR offers a wide range of routers for home and business use, providing fast and reliable internet connectivity.

Switches

NETGEAR's switches provide high-speed connectivity and advanced network management for businesses and homes.

Network Attached Storage (NAS)

NETGEAR's NAS solutions provide centralized storage and backup for homes and businesses.

Wireless Access Points

NETGEAR's wireless access points provide secure and reliable wireless connectivity for businesses and homes.

Cable Modems

NETGEAR's cable modems provide fast and reliable internet connectivity for homes and businesses.

Security Cameras

NETGEAR's security cameras provide surveillance and monitoring solutions for homes and businesses.

Range Extenders

NETGEAR's range extenders amplify and extend wireless signals for improved coverage and connectivity.

Smart Home Devices

NETGEAR's smart home devices provide automation and control solutions for homes.

8. NETGEAR, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

NETGEAR, Inc. faces moderate threat from substitutes, as customers have limited alternatives for networking equipment and services. However, the rise of wireless networking and cloud-based services may pose a threat to NETGEAR's traditional business model.

Bargaining Power Of Customers

NETGEAR, Inc. has a diverse customer base, including consumers, small businesses, and enterprises, which reduces the bargaining power of individual customers. Additionally, the company's products are often sold through retailers and distributors, which further reduces customer bargaining power.

Bargaining Power Of Suppliers

NETGEAR, Inc. relies on a few key suppliers for components and manufacturing services, which gives these suppliers some bargaining power. However, the company's size and scale of operations help to mitigate this risk.

Threat Of New Entrants

The networking equipment industry has high barriers to entry, including significant research and development investments, manufacturing capabilities, and established distribution channels. This makes it difficult for new entrants to compete with NETGEAR, Inc.

Intensity Of Rivalry

The networking equipment industry is highly competitive, with several established players, including Cisco Systems, Hewlett Packard Enterprise, and D-Link. NETGEAR, Inc. faces intense competition in terms of product features, pricing, and marketing.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 7.20%
Debt Cost 3.95%
Equity Weight 92.80%
Equity Cost 8.24%
WACC 7.93%
Leverage 7.76%

11. Quality Control: NETGEAR, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NETGEAR

A-Score: 4.8/10

Value: 8.0

Growth: 4.2

Quality: 3.1

Yield: 0.0

Momentum: 9.0

Volatility: 4.3

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Value: 7.8

Growth: 3.8

Quality: 3.5

Yield: 0.0

Momentum: 6.5

Volatility: 5.3

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A-Score: 4.2/10

Value: 1.8

Growth: 5.1

Quality: 5.6

Yield: 0.0

Momentum: 8.5

Volatility: 4.0

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ADTRAN Holdings

A-Score: 4.1/10

Value: 5.7

Growth: 3.4

Quality: 2.4

Yield: 1.0

Momentum: 9.0

Volatility: 3.0

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Inseego

A-Score: 3.6/10

Value: 5.7

Growth: 5.7

Quality: 6.0

Yield: 0.0

Momentum: 3.0

Volatility: 1.3

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AmpliTech

A-Score: 2.9/10

Value: 7.4

Growth: 1.7

Quality: 3.2

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.62$

Current Price

26.62$

Potential

-0.00%

Expected Cash-Flows