Netgear ( (NTGR) ) has released its Q1 earnings. Here is a breakdown of the information Netgear presented to its investors.
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 first quarter of 2025, NETGEAR reported a slight decline in net revenue to $162.1 million, a 1.5% decrease compared to the previous year. However, the company showed significant improvement in its gross margins and operating income, reflecting successful strategic initiatives and cost management efforts.
Key financial highlights include a GAAP gross margin increase to 34.8%, up 550 basis points from the previous year, and a non-GAAP gross margin of 35.0%. The company reduced its GAAP operating loss to $12.8 million from $21.6 million in the prior year, while non-GAAP operating income improved to a loss of $2.6 million from $16.0 million. Notably, NETGEAR achieved a positive non-GAAP EPS of $0.02, a significant turnaround from a loss of $0.28 in the previous year.
The NETGEAR for Business segment saw a revenue increase of 15.4% year over year, driven by strong demand for ProAV managed switches and effective supply chain management. The Mobile segment experienced a revenue decline but benefited from improved gross margins. The Home Networking segment also saw a revenue decline but managed to gain market share in key regions, supported by a strategic focus on a ‘good-better-best’ product strategy.
Looking ahead, NETGEAR’s management remains optimistic about continued revenue and profitability improvements throughout 2025. The company plans to focus on enhancing its software capabilities, expanding its product portfolio, and leveraging its new software development center in Chennai, India, to drive growth and maintain a competitive edge in the market.