Netgear AI Stock Analysis
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Netgear (NTGR) AI Stock Analysis
Netgear
(NASDAQ:NTGR)
NTGR scores below average primarily due to weak profitability and deteriorating free cash flow, reinforced by bearish price/indicator trends. Offsetting factors include a low-leverage balance sheet and earnings-call positives in enterprise demand, improving enterprise margins, and recurring-revenue growth, though near-term guidance remains pressured by supply/manufacturing disruption and expected margin headwinds.
Netgear (NTGR) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $527.43M
- Dividend Yield
- ―
- Average Volume (3M)
- 328.22K
- Price to Earnings (P/E)
- -11.6
- Beta (1Y)
- 1.74
- Revenue Growth
- -3.25%
- EPS Growth
- -33.30%
- Country
- US
- Employees
- 784
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Communication Equipment
Netgear Business Overview & Revenue Model
Company Description
NETGEAR, Inc. specializes in the conceptualization, engineering, and distribution of a broad spectrum of networking and internet-enabled devices. The company caters to a diverse clientele, encompassing individual consumers, corporate entities, and in...
How the Company Makes Money
NETGEAR primarily makes money by selling networking hardware through retail, e-commerce, and channel partners (distributors, resellers, and service providers). Its key revenue streams are (1) Connected Home: sales of consumer WiFi routers, mesh WiFi...
Netgear Earnings Call Summary
The call presented strong underlying enterprise demand, improving enterprise margins, expanding software and Pro AV capabilities, recurring-revenue growth and profitability above guidance. However, these positives were offset by a significant manufacturing partner disruption, declining consolidated and consumer revenue, consumer margin pressure, low channel inventory and a cautious fourth-quarter outlook with expected gross-margin pressure. Overall, the call was balanced between encouraging long-term transformation progress and meaningful near-term execution and supply challenges.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For the fourth quarter of 2026, NETGEAR expects net revenue of $160 million to $175 million, service provider and related products revenue of approximately $17 million, representing an approximate 28% year-over-year decline for this category, approximately 150 basis points of consolidated gross margin pressure compared to the prior quarter, GAAP operating margin of negative 8.7% to negative 5.7%, non-GAAP operating margin of 0% to 3%, GAAP tax expense in the range of a benefit of $0.5 million to an expense of $0.5 million, and non-GAAP tax expense in the range of $0 to $1 million; manufacturing constraints are expected to persist into the first quarter of 2027, with production still falling short of customer demand in the fourth quarter, and the company believes it will be back to normal production levels with this partner in the first quarter of 2027.
Netgear Financial Statement Overview
Summary
Financial profile is mixed: the balance sheet is relatively conservative with low leverage (debt-to-equity ~0.07), but operating performance is weak with TTM losses (net margin around -7%) and cash flow quality has deteriorated, including negative TTM free cash flow after a stronger 2024.
Income Statement
34NegativeBalance Sheet
71PositiveCash Flow
41Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 670.93M | 693.35M | 673.76M | 740.84M | 932.47M | 1.17B |
| Gross Profit | 257.58M | 250.96M | 195.93M | 249.25M | 250.55M | 365.84M |
| EBITDA | -24.50M | -18.44M | -65.80M | -25.04M | -23.82M | 79.41M |
| Net Income | -48.17M | -32.84M | 12.36M | -104.77M | -68.99M | 49.39M |
Balance Sheet | ||||||
| Total Assets | 755.26M | 836.27M | 850.23M | 847.14M | 1.02B | 1.08B |
| Cash, Cash Equivalents and Short-Term Investments | 242.17M | 323.04M | 408.69M | 283.65M | 227.43M | 271.52M |
| Total Debt | 42.26M | 50.95M | 30.63M | 41.57M | 45.10M | 27.79M |
| Total Liabilities | 316.79M | 338.45M | 309.16M | 311.65M | 398.93M | 381.72M |
| Stockholders Equity | 438.47M | 497.82M | 541.07M | 535.50M | 620.86M | 696.82M |
Cash Flow | ||||||
| Free Cash Flow | -7.56M | -18.91M | 155.80M | 51.05M | -19.49M | -14.44M |
| Operating Cash Flow | 8.85M | 1.61M | 164.80M | 56.85M | -13.73M | -4.58M |
| Investing Cash Flow | 42.99M | -22.64M | -26.16M | -27.43M | -79.52M | -9.98M |
| Financing Cash Flow | -103.33M | -55.51M | -28.91M | 797.00K | -24.02M | -68.12M |
Netgear Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTGR, the sentiment is Negative. The current price of 20.09 is below the 20-day moving average (MA) of 21.87, below the 50-day MA of 22.09, and below the 200-day MA of 22.93, indicating a bearish trend. The MACD of -0.72 indicates Positive momentum. The RSI at 39.70 is Neutral, neither overbought nor oversold. The STOCH value of 26.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NTGR.
Netgear Risk Analysis
Netgear disclosed 78 risk factors in its most recent earnings report. Netgear reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
3 New RisksNetgear Peers Comparison
Overall Rating
UI76Outperform
EXTR70Outperform
CALX68Neutral
LITE62Neutral- NTGR45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| UI | 76Outperform | $41.49B | 38.34 | 80.33% | 0.50% | 29.37% | 35.44% |
| EXTR | 70Outperform | $3.34B | 66.92 | 59.74% | ― | 11.29% | 509.66% |
| CALX | 68Neutral | $1.99B | 45.91 | 6.09% | ― | 22.90% | ― |
| LITE | 62Neutral | $53.11B | -7.27 | -201.86% | ― | 103.20% | -4941.69% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| NTGR | 45Neutral | $515.35M | -11.61 | -10.34% | ― | -3.25% | -33.30% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| NTGR | Netgear | 20.09 | -7.46 | -27.08% | |
| CALX | Calix Inc | 32.60 | -27.70 | -45.94% | |
| EXTR | Extreme Networks | 26.67 | 9.02 | 51.10% | |
| UI | Ubiquiti Networks Inc | 679.42 | 124.83 | 22.51% | |
| LITE | Lumentum Holdings Inc | 648.06 | 421.20 | 185.67% |
Netgear Corporate Events
Netgear appoints Douglas Murray to board, advances enterprise shift
NeutralFor the second quarter ended June 28, 2026, NETGEAR reported net revenue of $168.6 million, down 1.2% year over year, but delivered higher profitability, with GAAP gross margin rising to 40.2% and non-GAAP gross margin to 41.4%, driven largely by an...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 06, 2026