NETGEAR® Reports First Quarter 2026 Results

Operating margin above the high end of guidance Record high GAAP gross margin of 40.5% and non-GAAP gross margin of 41.7% Share repurchases of $20 million at an average price of $21.53 ARR from subscription and services of approximately $40 million NETGEAR, Inc. (NASDAQ: NTGR), a global leader in intelligent networking solutions designed to power extraordinary experiences, today reported financial results for the first quarter ended March 29, 2026. Q1 2026 Net revenue of $158.8 million, down 2.0% as compared to Q1 prior yearGAAP gross margin of 40.5%, up 570 basis points from 34.8% in Q1 prior year Non-GAAP gross margin of 41.7%, up 670 basis points from 35.0% in Q1 prior yearGAAP operating income of $(13.6) million compared to $(12.8) million from Q1 prior year Non-GAAP operating income of $1.7 million compared to $(2.6) million from Q1 prior yearGAAP EPS of $(0.47) compared to $(0.21) from Q1 prior year Non-GAAP EPS of $0.06 compared to $0.02 from Q1 prior year The accompanying schedules provide a reconciliation of financial measures computed on a GAAP basis to financial measures computed on a non-GAAP basis. 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.” Bryan Murray, Chief Financial Officer, added, “Our first quarter results demonstrate the strength of our financial execution and the breadth of improvements we have made across the business as we progress into the second phase of our transformation. We exceeded expectations on the bottom line, improved our revenue mix toward higher-margin products and services, and maintained strong operational discipline in a dynamic environment, further underscoring the agility of our operating model and lean execution of our team. Continuing our opportunistic approach to stock repurchases, we repurchased $20 million of shares at an average price of $21.53 per share, and our Board of Directors has approved an additional $75 million for our repurchase authorization, which when combined with the remaining amount on the previous authorization totals approximately $89 million.” Enterprise Segment Results Revenue was $83.8 million, up 5.8% year over yearNon-GAAP gross margin was 52.7%, up 640 basis points year over yearNon-GAAP contribution margin was 23.9%, up 160 basis points year over year Mr. Prober continued, “Propelled by strong end user demand for our leading ProAV solutions and other high-impact growth initiatives, our Enterprise segment performed well, reaching 53% of our total revenue. We delivered solid year-over-year growth and another quarter of record segment gross margin validating the progress we’ve made in building a higher-margin growth profile. Momentum in non-device revenue is building with an important recent release of our Insight software, as we realize early benefits from our new Chennai software development center and the acquisitions of VAAG and Exium. We also launched a new structured portfolio of professional services and support offerings in the quarter and made strong progress expanding our presence in the Broadcast vertical for ProAV. Partnerships and projects with leading names in the industry are opening significant new opportunities. NETGEAR remains well-positioned to strengthen our leadership in the AV industry and deliver continued profitable growth.” Consumer Segment Results Revenue was $75.0 million, down 9.5% year over yearNon-GAAP gross margin was 29.4%, up 520 basis points year over yearNon-GAAP contribution margin was (0.2)%, up 160 basis points year over year Mr. Prober continued, “In Consumer, we delivered revenue growth for our core products, strong gross margin despite the memory headwind, and improved contribution margin year over year. Our good-better-best WiFi 7 lineup continues to perform well, and we are seeing the benefits of our disciplined focus on continued gross profit optimization. Our consumer subscription offering continues to perform well and is the driving force in generating nearly $40 million in annual recurring revenue across the company, growing 12% year over year, while improving ASPs and renewals. On the regulatory front, NETGEAR became the first retail company to receive conditional approval under the new FCC standards for consumer routers — a reflection of our longstanding commitment to security, supply chain integrity, and our status as an independent US-based public company. We believe this positions NETGEAR as the most trusted brand in consumer networking, and we remain focused on delivering the performance, reliability, and security our customers expect.” Business Outlook 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. A reconciliation between the Business Outlook on a GAAP and non-GAAP basis is provided in the following table: Three months ending June 28, 2026 (In millions, except for percentage data) Operating Margin Rate Tax Expense GAAP (8.4)% - (5.4)% $0.8-$1.8 Estimated adjustments for1: Stock-based compensation expense 6.3% - Amortization of intangible assets 0.9% - Restructuring and other charges 0.2% - Non-GAAP tax adjustments - (0.3) Non-GAAP (1.0)% - 2.0% $0.5 - $1.5 1 Business outlook does not include estimates for any currently unknown income and expense items which, by their nature, could arise late in a quarter, including: litigation reserves, net; acquisition-related charges; impairment charges; restructuring and other charges and discrete tax benefits or detriments that cannot be forecasted (e.g., windfalls or shortfalls from equity awards or items related to the resolution of uncertain tax positions). New material income and expense items such as these could have a significant effect on our guidance and future GAAP results. Investor Conference Call / Webcast Details NETGEAR will review the first quarter results and discuss management's expectations for the second quarter of 2026 today, Wednesday, April 29, 2026 at 5 p.m. ET (2 p.m. PT). The toll-free dial-in number for the live audio call is (888) 660-6392. The international dial-in number for the live audio call is (929) 203-0899. The conference ID for the call is 1030183. A live webcast of the conference call will be available on NETGEAR's Investor Relations website at http://investor.netgear.com. A replay of the call will be available via the web at http://investor.netgear.com. About NETGEAR, Inc. Founded in 1996 and headquartered in the USA, NETGEAR® (NASDAQ: NTGR) is a global leader in innovative networking technologies for businesses, homes, and service providers. NETGEAR delivers a wide range of award-winning, intelligent solutions designed to unleash the full potential of connectivity and power extraordinary experiences. For businesses, NETGEAR offers reliable, easy-to-use, high-performance networking solutions, including switches, routers, access points, software, and AV over IP technologies, tailored to meet the diverse needs of organizations of all sizes. NETGEAR’s Consumer products deliver advanced connectivity, powerful performance, and enhanced security features right out of the box, designed to keep families safe online, whether at home or on the go. More information is available from the NETGEAR Press Room or by calling (408) 907-8000. Connect with NETGEAR: Facebook, Instagram and the NETGEAR blog at NETGEAR.com. © 2026 NETGEAR, Inc. NETGEAR and the NETGEAR logo are trademarks or registered trademarks of NETGEAR, Inc. and its affiliates in the United States and/or other countries. Other brand and product names are trademarks or registered trademarks of their respective holders. The information contained herein is subject to change without notice. NETGEAR shall not be liable for technical or editorial errors or omissions contained herein. All rights reserved. Source: NETGEAR-F Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 for NETGEAR, Inc.: This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words “anticipate,” “expect,” “believe,” “will,” “may,” “should,” “estimate,” “project,” “outlook,” “forecast” or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. The forward-looking statements represent NETGEAR, Inc.’s expectations or beliefs concerning future events based on information available at the time such statements were made and include statements regarding: NETGEAR’s future operating performance and financial condition, including expectations regarding growth, revenue, operating margin and gross margin; creating long-term value for shareholders; positioning NETGEAR for long term success; long-term potential and profitable growth; continued end user demand for NETGEAR’s ProAV line of managed switches; revenue from the service provider channel; expectations regarding continuing market demand for the NETGEAR’s products and services; and expectations regarding expected tax benefits or tax expenses. These statements are based on management's current expectations and are subject to certain risks and uncertainties, including the following: future demand for NETGEAR’s products and services may be lower than anticipated; NETGEAR may be unsuccessful, or experience delays, in manufacturing and distributing its new and existing products and services; consumers may choose not to adopt NETGEAR’s new product and services offerings or adopt competing products and services; NETGEAR may fail to manage costs, including the cost of key components, the cost of air freight and ocean freight, and the cost of developing new products and manufacturing and distribution of its existing offerings; NETGEAR may fail to successfully continue to effect operating expense savings; changes in the level of NETGEAR's cash resources and NETGEAR’s planned usage of such resources; changes in NETGEAR’s stock price and developments in the business that could increase NETGEAR’s cash needs; fluctuations in foreign exchange rates; loss of services of key personnel may affect NETGEAR’s ability to executive on business strategy effectively; and the actions and financial health of NETGEAR’s customers, including NETGEAR’s ability to collect receivables as they become due. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Further information on potential risk factors that could affect NETGEAR and its business are detailed in NETGEAR’s periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled "Part I - Item 1A. Risk Factors" in NETGEAR’s annual report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission on February 13, 2026. Given these circumstances, you should not place undue reliance on these forward-looking statements. NETGEAR undertakes no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. Non-GAAP Financial Information: To supplement our unaudited selected financial data presented on a basis consistent with Generally Accepted Accounting Principles (“GAAP”), we disclose certain non-GAAP financial measures that exclude certain charges, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, non-GAAP total operating expenses, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP other income (expenses), net, non-GAAP net income (loss) and non-GAAP net income (loss) per diluted share. These supplemental measures exclude adjustments for amortization of intangible assets, stock-based compensation expense, acquisition related expenses, restructuring and other charges, litigation reserves, net, gain/loss on investments and others, and adjust for effects related to non-GAAP tax adjustments. These non-GAAP measures are not in accordance with or an alternative for GAAP, and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of our performance. In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of our operating performance on a period-to-period basis because such items are not, in our view, related to our ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, and for benchmarking performance externally against competitors. In addition, management’s incentive compensation is determined using certain non-GAAP measures. Since we find these measures to be useful, we believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by offering: the ability to make more meaningful period-to-period comparisons of our on-going operating results;the ability to better identify trends in our underlying business and perform related trend analyses;a better understanding of how management plans and measures our underlying business; andan easier way to compare our operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures. The following are explanations of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding them in the reconciliations of these non-GAAP financial measures: Amortization of intangible assets consists primarily of non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions. We consider our operating results without these charges when evaluating our ongoing performance and forecasting our earnings trends, and therefore exclude such charges when presenting non-GAAP financial measures. We believe that the assessment of our operations excluding these costs is relevant to our assessment of internal operations and comparisons to the performance of our competitors. Stock-based compensation expense consists of non-cash charges for the estimated fair value of restricted stock units and shares under the employee stock purchase plan granted to employees. We believe that the exclusion of these charges provides for more accurate comparisons of our operating results to peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, we believe it is useful to investors to understand the specific impact stock-based compensation expense has on our operating results. Other items consist of certain items that are the result of either unique or unplanned events, including, when applicable: acquisition related expenses, restructuring and other charges, litigation reserves, net, and gain/loss on investments and others. It is difficult to predict the occurrence or estimate the amount or timing of these items in advance. Although these events are reflected in our GAAP financial statements, these unique transactions may limit the comparability of our on-going operations with prior and future periods. The amounts result from events that often arise from unforeseen circumstances, which often occur outside of the ordinary course of continuing operations. Therefore, the amounts do not accurately reflect the underlying performance of our continuing business operations for the period in which they are incurred. Non-GAAP tax adjustments consist of adjustments that we incorporate into non-GAAP measures in order to provide a more meaningful measure on non-GAAP net income (loss). We believe providing financial information with and without the income tax effects relating to our non-GAAP financial measures, as well as adjustments for valuation allowances on deferred tax assets, provides our management and users of the financial statements with better clarity regarding both current period performance and the on-going performance of our business. Non-GAAP income tax expense (benefit) is computed on a current and deferred basis with non-GAAP income (loss) consistent with use of non-GAAP income (loss) as a performance measure. The Non-GAAP tax provision (benefit) is calculated by adjusting the GAAP tax provision (benefit) for the impact of the non-GAAP adjustments, with specific tax provisions such as state income tax and Base-erosion and Anti-Abuse Tax recomputed on a non-GAAP basis, as well as adjustments for valuation allowances on deferred tax assets. The tax valuation allowance is a non-cash adjustment primarily reflecting our expectations of, and assumptions as to, future operating results and applicable tax laws, that are not directly attributable to the current quarter’s operating performance. For interim periods, the non-GAAP income tax provision (benefit) is calculated based on the forecasted annual non-GAAP tax rate before discrete items and adjusted for interim discrete items. NETGEAR, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) March 29, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 183,476 $ 209,904 Short-term investments 113,033 113,132 Accounts receivable, net 142,155 142,045 Inventories 169,305 176,456 Prepaid expenses and other current assets 34,849 31,745 Total current assets 642,818 673,282 Property and equipment, net 26,182 26,001 Operating lease right-of-use assets 34,308 36,715 Intangible assets, net 37,061 38,480 Goodwill 45,022 45,022 Other non-current assets 16,540 16,771 Total assets $ 801,931 $ 836,271 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 43,367 $ 43,749 Accrued employee compensation 38,260 34,731 Other accrued liabilities 139,080 144,028 Deferred revenue 26,199 26,904 Income taxes payable 1,816 809 Total current liabilities 248,722 250,221 Non-current income taxes payable 6,702 7,176 Non-current operating lease liabilities 38,113 41,016 Other non-current liabilities 37,239 40,035 Total liabilities 330,776 338,448 Stockholders’ equity: Common stock 27 28 Additional paid-in capital 1,047,305 1,036,545 Accumulated other comprehensive income (loss) (28 ) 196 Accumulated deficit (576,149 ) (538,946 ) Total stockholders’ equity 471,155 497,823 Total liabilities and stockholders’ equity $ 801,931 $ 836,271 NETGEAR, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share and percentage data) (Unaudited) Three Months Ended March 29, 2026 March 30, 2025 Net revenue $ 158,819 $ 162,060 Cost of revenue 94,517 105,734 Gross profit 64,302 56,326 Gross margin 40.5 % 34.8 % Operating expenses: Research and development 21,665 18,309 Sales and marketing 31,670 28,041 General and administrative 19,183 18,070 Litigation reserves, net 500 (37 ) Restructuring and other charges 4,876 4,742 Total operating expenses 77,894 69,125 Loss from operations (13,592 ) (12,799 ) Operating margin (8.6 )% (7.9 )% Other income, net 1,581 8,171 Loss before income taxes (12,011 ) (4,628 ) Provision for income taxes 1,029 1,406 Net loss $ (13,040 ) $ (6,034 ) Net loss per share Basic $ (0.47 ) $ (0.21 ) Diluted $ (0.47 ) $ (0.21 ) Weighted average shares used to compute net income (loss) per share: Basic 27,977 28,717 Diluted 27,977 28,717 NETGEAR, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three Months Ended March 29, 2026 March 30, 2025 Cash flows from operating activities: Net loss $ (13,040 ) $ (6,034 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 3,624 1,684 Stock-based compensation 8,205 5,496 Accretion of discounts and imputed interests, net 644 (476 ) Deferred income taxes (67 ) (136 ) Provision for excess and obsolete inventory 1,900 1,435 Other (22 ) 9 Changes in assets and liabilities: Accounts receivable, net (110 ) 13,504 Inventories 5,251 3,206 Prepaid expenses and other assets (2,768 ) (620 ) Accounts payable (207 ) (3,603 ) Accrued employee compensation 3,530 (4,313 ) Other accrued liabilities (4,940 ) (19,102 ) Deferred revenue (886 ) (164 ) Income taxes payable 532 365 Net cash provided by (used in) operating activities 1,646 (8,749 ) Cash flows from investing activities: Purchases of short-term investments (30,152 ) (29,759 ) Proceeds from maturities of short-term investments 30,000 30,000 Purchases of property and equipment (3,822 ) (1,396 ) Purchases of long-term investments — (105 ) Net cash used in investing activities (3,974 ) (1,260 ) Cash flows from financing activities: Repurchases of common stock, including exercise tax (20,152 ) (8,162 ) Restricted stock unit withholdings (4,028 ) (5,141 ) Proceeds from exercise of stock options — 4,590 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 ) — Net cash used in financing activities (24,100 ) (6,624 ) Net decrease in cash and cash equivalents (26,428 ) (16,633 ) Cash and cash equivalents, at beginning of period 209,904 286,444 Cash and cash equivalents, at end of period $ 183,476 $ 269,811 NETGEAR, INC. RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (In thousands, except percentage data) (Unaudited) STATEMENT OF OPERATIONS DATA: Three Months Ended March 29, 2026 December 31, 2025 March 30, 2025 GAAP gross profit $ 64,302 $ 73,635 $ 56,326 GAAP gross margin 40.5 % 40.4 % 34.8 % Amortization of intangible assets 1,418 991 — Stock-based compensation expense 501 548 422 Non-GAAP gross profit $ 66,221 $ 75,174 $ 56,748 Non-GAAP gross margin 41.7 % 41.2 % 35.0 % GAAP research and development $ 21,665 $ 23,239 $ 18,309 Stock-based compensation expense (1,103 ) (1,332 ) (592 ) Acquisition related expenses (244 ) (243 ) — Non-GAAP research and development $ 20,318 $ 21,664 $ 17,717 GAAP sales and marketing $ 31,670 $ 34,877 $ 28,041 Amortization of intangible assets (1 ) (3 ) — Stock-based compensation expense (2,265 ) (2,604 ) (1,313 ) Non-GAAP sales and marketing $ 29,404 $ 32,270 $ 26,728 GAAP general and administrative $ 19,183 $ 19,544 $ 18,070 Stock-based compensation expense (4,336 ) (4,252 ) (3,169 ) Non-GAAP general and administrative $ 14,847 $ 15,292 $ 14,901 GAAP total operating expenses $ 77,894 $ 78,379 $ 69,125 Amortization of intangible assets (1 ) (3 ) — Stock-based compensation expense (7,704 ) (8,188 ) (5,074 ) Acquisition related expenses (244 ) (243 ) — Restructuring and other charges (4,876 ) (646 ) (4,742 ) Litigation reserves, net (500 ) (73 ) 37 Non-GAAP total operating expenses $ 64,569 $ 69,226 $ 59,346 GAAP operating income (loss) $ (13,592 ) $ (4,744 ) $ (12,799 ) GAAP operating margin (8.6 )% (2.6 )% (7.9 )% Amortization of intangible assets 1,419 994 — Stock-based compensation expense 8,205 8,736 5,496 Acquisition related expenses 244 243 — Restructuring and other charges 4,876 646 4,742 Litigation reserves, net 500 73 (37 ) Non-GAAP operating income (loss) $ 1,652 $ 5,948 $ (2,598 ) Non-GAAP operating margin 1.0 % 3.3 % (1.6 )% GAAP other income, net $ 1,581 $ 2,201 $ 8,171 Gain/loss on investments and others (22 ) (62 ) (4,642 ) Non-GAAP other income, net $ 1,559 $ 2,139 $ 3,529 NETGEAR, INC. RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED) (In thousands, except per share data) (Unaudited) STATEMENT OF OPERATIONS DATA (CONTINUED): Three Months Ended March 29, 2026 December 31, 2025 March 30, 2025 GAAP net income (loss) $ (13,040 ) $ (684 ) $ (6,034 ) Amortization of intangible assets 1,419 994 — Stock-based compensation expense 8,205 8,736 5,496 Acquisition related expenses 244 243 — Restructuring and other charges 4,876 646 4,742 Litigation reserves, net 500 73 (37 ) Gain/loss on investments and others (22 ) (62 ) (4,642 ) Non-GAAP tax adjustments (328 ) (2,207 ) 936 Non-GAAP net income (loss) $ 1,854 $ 7,739 $ 461 NET INCOME (LOSS) PER DILUTED SHARE: GAAP net income (loss) per diluted share $ (0.47 ) $ (0.02 ) $ (0.21 ) Amortization of intangible assets 0.05 0.03 — Stock-based compensation expense 0.29 0.30 0.18 Acquisition related expenses 0.01 0.01 — Restructuring and other charges 0.17 0.02 0.16 Litigation reserves, net 0.02 — — Gain/loss on investments and others — — (0.15 ) Non-GAAP tax adjustments (0.01 ) (0.08 ) 0.04 Non-GAAP net income (loss) per diluted share 1 $ 0.06 $ 0.26 $ 0.02 Shares used in computing GAAP net income (loss) per diluted share 27,977 28,180 28,717 Shares used in computing non-GAAP net income (loss) per diluted share 28,701 29,457 30,253 1 The per share reconciliation of GAAP to non-GAAP may not aggregate due to both calculations utilizing a different share basis. The net loss per diluted share calculation uses a lower share count as it excludes potentially dilutive shares included in the net income per diluted share calculation. NETGEAR, INC. SUPPLEMENTAL FINANCIAL INFORMATION (In thousands, except per share data, DSO, inventory turns, weeks of channel inventory, headcount and percentage data) (Unaudited) Three Months Ended March 29, 2026 December 31, 2025 September 28, 2025 June 29, 2025 March 30, 2025 Cash, cash equivalents and short-term investments $ 296,509 $ 323,036 $ 326,383 $ 363,472 $ 391,927 Cash, cash equivalents and short-term investments per diluted share $ 10.33 $ 10.97 $ 10.96 $ 11.95 $ 12.95 Accounts receivable, net $ 142,155 $ 142,045 $ 159,880 $ 144,871 $ 142,706 Days sales outstanding (DSO) 79 73 79 77 78 Inventories $ 169,305 $ 176,456 $ 166,561 $ 157,305 $ 157,898 Ending inventory turns 2.2 2.5 2.7 2.7 2.7 Weeks of channel inventory: U.S. retail channel 11.5 11.0 11.9 12.0 10.1 U.S. distribution channel 5.0 5.0 3.5 3.8 2.4 EMEA distribution channel 4.8 4.6 5.5 4.7 4.4 APAC distribution channel 12.7 13.7 8.3 10.2 8.3 Deferred revenue (current and non-current) $ 30,224 $ 31,110 $ 32,464 $ 33,779 $ 35,198 Headcount 786 784 753 707 636 Non-GAAP diluted shares 28,701 29,457 29,782 30,424 30,253 NET REVENUE BY GEOGRAPHY Three Months Ended March 29, 2026 December 31, 2025 March 30, 2025 Americas $ 105,863 67 % $ 123,895 68 % $ 107,761 66 % EMEA 33,475 21 % 36,162 20 % 32,129 20 % APAC 19,481 12 % 22,411 12 % 22,170 14 % Total $ 158,819 100 % $ 182,468 100 % $ 162,060 100 % SERVICE PROVIDER NET REVENUE Three Months Ended Consumer Segment March 29, 2026 December 31, 2025 March 30, 2025 Service provider net revenue1 $ 20,232 $ 22,866 $ 29,707 Other 54,785 70,223 53,162 Total Consumer segment net revenue $ 75,017 $ 93,089 $ 82,869 1 Service provider net revenue includes cable net revenue sold from retail. Prior-period amounts have been recast to conform to the current-period presentation. NETGEAR, INC. SUPPLEMENTAL FINANCIAL INFORMATION (CONTINUED) (In thousands, except percentage data) (Unaudited) SEGMENT DATA: Three Months Ended March 29, 2026 December 31, 2025 March 30, 2025 Enterprise Consumer Total Enterprise Consumer Total Enterprise Consumer Total Net revenue $ 83,802 $ 75,017 $ 158,819 $ 89,379 $ 93,089 $ 182,468 $ 79,191 $ 82,869 $ 162,060 Segment cost of revenue 39,658 52,940 92,598 43,416 63,878 107,294 42,530 62,782 105,312 Segment gross profit 44,144 22,077 66,221 45,963 29,211 75,174 36,661 20,087 56,748 Segment gross margin 52.7 % 29.4 % 51.4 % 31.4 % 46.3 % 24.2 % Segment operating expenses 24,087 22,203 46,290 25,455 24,196 49,651 19,026 21,552 40,578 Contribution income (loss) 20,057 (126 ) 19,931 20,508 5,015 25,523 17,635 (1,465 ) 16,170 Contribution margin 23.9 % (0.2 )% 22.9 % 5.4 % 22.3 % (1.8 )% Corporate and unallocated costs (18,279 ) (19,575 ) (18,768 ) Amortization of intangible assets (1,419 ) (994 ) — Stock-based compensation expense (8,205 ) (8,736 ) (5,496 ) Acquisition related expenses (244 ) (243 ) — Restructuring and other charges (4,876 ) (646 ) (4,742 ) Litigation reserves, net (500 ) (73 ) 37 Other income, net 1,581 2,201 8,171 Income (loss) before income taxes $ (12,011 ) $ (2,543 ) $ (4,628 ) Source: NETGEAR, Inc.