Netgear ( (NTGR) ) has released its Q3 earnings. Here is a breakdown of the information Netgear presented to its investors.
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NETGEAR, Inc., a global leader in intelligent networking solutions, offers innovative technologies for businesses, homes, and service providers, focusing on connectivity and performance. In its third quarter of 2025, NETGEAR reported revenues of $184.6 million, marking a slight increase from the previous year, and achieved a record high gross margin of over 39%. The company also repurchased $20 million worth of shares, maintaining a strong cash position with over $326 million in cash and short-term investments.
Key financial highlights include a GAAP gross margin increase to 39.1%, up significantly from the previous year, and a non-GAAP operating income of $3.8 million, reflecting improved operational efficiency. The Enterprise segment showed robust growth with a 15.7% increase in revenue, driven by strong demand for ProAV solutions. However, the Home Networking and Mobile segments faced revenue declines, though both segments improved their gross margins year over year.
The company’s strategic transformation efforts are beginning to show results, with a focus on innovation and expanding market presence. NETGEAR launched a new cybersecurity solution and is investing in software development to enhance its product offerings. The company remains optimistic about its long-term growth potential, particularly in the Enterprise segment, despite ongoing supply chain challenges.
Looking ahead, NETGEAR expects fourth-quarter revenues to range between $170 million and $185 million, with continued focus on operational efficiency and strategic investments. The company anticipates challenges due to rising memory costs but remains committed to driving profitability and shareholder value.