NTGR News & Events

"Within Enterprise, end user demand for our ProAV line of managed switches is expected to remain strong and we have secured sufficient memory for virtually all our 2026 production plans. We expect the memory impact to be nominal for our Enterprise business given the relatively higher ASPs and margins, and the ability to increase our prices, as seen broadly in the market. On the Consumer side, while we have the right product portfolio and roadmap to address market demand, we will continue to prioritize gross profit over revenue with the rising cost of memory which we expect to continue throughout the year. We also expect to continue driving growth in higher margin recurring services. For Service Provider and related products, we remain steadfast in our approach of harvesting this business and expect revenue to be around $18 million, which would be a decline of approximately 33% as compared to the second quarter of 2025. Accordingly, we expect second quarter net revenue to be in the range of $150 million to $165 million. In the second quarter we expect our mitigation efforts, with greater benefit to the enterprise business, to counter the rising cost of memory. Accordingly, we expect our second quarter GAAP operating margin to be in the range of (8.4)% to (5.4)%, and non-GAAP operating margin to be in the range of (1.0)% to 2.0%. Our GAAP tax is expected to be in the range of $0.8 million to $1.8 million, and our non-GAAP tax expense is expected to be in the range of $0.5 to $1.5 million for the second quarter of 2026."

Reports Q1 revenue $158.82M, consensus $152.49M. CJ Prober, Chief Executive Officer, commented, "We delivered a strong start to 2026, building on a healthy operating foundation and disciplined execution across the business. As we progress into the next phase of our transformation, we're reaping the benefits of the foundation we've built, while continuing the investments that will fuel our future profitable growth. In Q1, we again achieved a record non-GAAP gross margin driven by the strength of our Enterprise business and supported by tighter supply chain discipline. AI is increasingly acting as a transformation catalyst across the organization - enhancing how we operate, accelerating software development, and creating value for customers. With sufficient memory secured for virtually all of our 2026 production, a strong balance sheet, and solid margin momentum, we are well positioned to deliver sustained, long-term shareholder value."

In a regulatory filing, Netgear provided the following updates regarding the March 23 Federal Communications Commission, or FCC, Public Safety and Homeland Security Bureau regulations adding all "routers produced in a foreign country" to the FCC's "Covered List". Netgear is the first retail consumer router company to be granted conditional approval under the new FCC regulations applicable to foreign made consumer routers. So long as the conditional approval is maintained, Netgear can launch new consumer routers and update the software on existing consumer routers indefinitely. While Netgear received conditional approval quickly, it is possible that key competitors could also receive conditional approval in the future. Even without conditional approval, Netgear's competitors are not restricted from selling existing products in the market and, as such, competition in this category remains significant, according to Netgear. The "Covered List" is a list of communications equipment and services that are deemed to pose an unacceptable risk to the national security of the United States or the security and safety of United States persons, based exclusively on any of four sources for such a determination and that such equipment or services possess certain capabilities as enumerated in section 2 of the Secure and Trusted Communications Networks Act of 2019.