Netgear ( (NTGR) ) has released its Q2 earnings. Here is a breakdown of the information Netgear presented to its investors.
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NETGEAR, Inc., a leader in innovative networking technologies, provides solutions for businesses, homes, and service providers, offering reliable and high-performance networking products. In its latest earnings report for the second quarter of 2025, NETGEAR announced a significant increase in net revenue, reaching $170.5 million, which is an 18.5% rise from the previous year. The company also reported record high gross margins and a positive contribution margin across all business units.
Key highlights from the report include a substantial improvement in the GAAP gross margin to 37.5% and a non-GAAP gross margin of 37.8%, both up by 1,540 basis points from the previous year. The company’s GAAP operating income showed a marked improvement, narrowing the loss to $9.5 million from $46.9 million in the prior year. Furthermore, NETGEAR’s acquisition of Exium is expected to enhance its security offerings, particularly in the NETGEAR for Business (NFB) segment.
The NFB segment saw a 38% increase in revenue, driven by strong demand for ProAV solutions, while the Home Networking segment experienced a 13.1% revenue growth, supported by a favorable product mix and successful inventory management. However, the Mobile segment faced a 16.1% decline in revenue, attributed to softer service provider demand, although retail demand remained strong.
Looking ahead, NETGEAR remains optimistic about its growth trajectory, anticipating continued strong demand for its ProAV line and improvements in its supply chain. The company expects third-quarter revenue to range between $165 million and $180 million, with a focus on strategic investments to enhance its market capabilities and product offerings.