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Netgear (NTGR)
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Netgear (NTGR) AI Stock Analysis

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NTGR

Netgear

(NASDAQ:NTGR)

Rating:65Neutral
Price Target:
$25.00
▲(5.53%Upside)
The overall stock score is primarily influenced by a solid financial performance and reasonable valuation. However, bearish technical indicators and challenges noted in the earnings call, such as supply constraints, weigh down the score. Strategic corporate moves add a positive outlook, but their impact is already considered in the earnings assessment.

Netgear (NTGR) vs. SPDR S&P 500 ETF (SPY)

Netgear Business Overview & Revenue Model

Company DescriptionNETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. The company operates in two segments, Connected Home, and Small and Medium Business. It offers smart home/connected home/broadband access products, such as Wi-Fi routers and home Wi-Fi systems, broadband modems, Wi-Fi gateways, Wi-Fi hotspots, Wi-Fi range extenders, Powerline adapters and bridges, Wi-Fi network adapters, and digital canvasses; and value-added service offerings, including technical support, parental controls, and cybersecurity protection. The company also provides Ethernet switches, Wi-Fi mesh systems and access points, local and remote unified storage products, and Internet security appliances for small and medium-sized businesses, as well as education, hospitality and health markets. It markets and sells its products through traditional retailers, online retailers, wholesale distributors, direct market resellers, value-added resellers, and broadband service providers, as well as through its direct online store at www.netgear.com. in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was incorporated in 1996 and is headquartered in San Jose, California.
How the Company Makes MoneyNetgear makes money through the sale of its networking products and services across its three primary segments: Retail, Commercial, and Service Provider. The Retail segment generates revenue from the sale of consumer-focused networking products such as Wi-Fi routers, mesh systems, and smart home devices. The Commercial segment targets small to medium-sized businesses, offering products like Ethernet switches, wireless access points, and NAS devices. The Service Provider segment earns revenue by supplying networking equipment to internet service providers who then offer these solutions to their end-users. Netgear also capitalizes on recurring revenue through subscriptions and services associated with their devices, such as security, parental controls, and cloud storage services. Key partnerships with technology distributors and retailers, as well as a strong global sales network, significantly contribute to Netgear's earnings.

Netgear Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: -3.93%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
NETGEAR reported strong financial performance with record gross margins and significant growth in key segments like NFB. However, supply constraints and challenges in the mobile segment tempered some of the positive outcomes. The company is focusing on long-term growth strategies and expanding its services offerings.
Q2-2025 Updates
Positive Updates
Record Gross Margin
NETGEAR achieved an all-time high non-GAAP gross margin of 37.8%, marking a sequential increase and a significant year-over-year improvement of 1,540 basis points.
NFB Segment Growth
Revenue in the NFB segment increased by 38% year-over-year, with ProAV products showing strong performance despite supply constraints.
Successful Product Launches
NETGEAR launched the Orbi 370, expanding their product portfolio and targeting a broader market segment.
Strong Cash Position
The company ended the quarter with $363.5 million in cash and short-term investments.
Positive Contribution Margins Across All Business Units
Each business unit reported positive contribution margins, reflecting improved profitability.
Expansion of Services
NETGEAR launched a new AV Professional Services group to enhance their enterprise value proposition.
Negative Updates
Supply Constraints in ProAV
Despite strong demand, the ProAV segment faced supply constraints that limited shipments and increased backlog.
Weak Performance in Mobile Segment
The mobile business segment recorded a 16.1% year-over-year decline in revenue, primarily due to weaker-than-expected service provider sales.
Increased Operating Expenses
Non-GAAP operating expenses rose by 10.6% sequentially, due to increased hiring and unique expenses such as double rent and litigation defense.
Company Guidance
In the recent NETGEAR conference call, guidance for the third quarter of 2025 was provided, highlighting expectations for continued strong performance across the company's business units. NETGEAR anticipates third-quarter net revenue to range between $165 million and $180 million, driven by robust demand in the NFB segment, particularly ProAV products, despite ongoing supply constraints. The company projects a non-GAAP operating margin between negative 5.5% and negative 2.5%, reflecting investments in software development and go-to-market capabilities. Additionally, NETGEAR expects its non-GAAP tax expense to range from a $500,000 benefit to a $500,000 expense.

Netgear Financial Statement Overview

Summary
Netgear showcases a stable financial position with a robust balance sheet and positive operating cash flows. Despite challenges in revenue growth and operational efficiency, the company is managing its debt effectively and improving its profitability metrics.
Income Statement
55
Neutral
Netgear's TTM (Trailing-Twelve-Months) revenue has declined compared to the previous year, indicating challenges in maintaining its sales momentum. The gross profit margin stands at 30.4%, suggesting moderate efficiency in managing production costs. However, the net profit margin is low at 3.7%, reflecting difficulties in controlling operational expenses. Additionally, the EBIT and EBITDA margins are weak, indicating limited operating profitability and cash flow generation.
Balance Sheet
68
Positive
Netgear maintains a strong equity position, with an equity ratio of 65.6%. The debt-to-equity ratio is low, demonstrating prudent debt management. Return on equity has improved to 4.7% from negative figures, indicating a recovery in profitability. Overall, the balance sheet is stable, albeit with room for enhancing asset utilization.
Cash Flow
62
Positive
Operating cash flow is solid relative to net income, with a ratio of 5.56, indicating strong cash generation capability. Free cash flow has grown, reflecting improved cash management. However, the free cash flow to net income ratio is high, suggesting potential overreliance on free cash flow in the short term.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue697.87M673.76M740.84M932.47M1.17B1.26B
Gross Profit236.17M195.93M249.25M250.55M365.84M372.15M
EBITDA-27.24M-65.80M-25.04M-23.82M80.50M94.47M
Net Income63.73M12.36M-104.77M-68.99M49.39M58.29M
Balance Sheet
Total Assets803.55M850.23M847.14M1.02B1.08B1.11B
Cash, Cash Equivalents and Short-Term Investments363.47M408.69M283.65M227.43M271.52M353.32M
Total Debt16.30M30.63M41.57M45.10M18.57M25.51M
Total Liabilities280.39M309.16M311.65M398.93M381.72M416.65M
Stockholders Equity523.16M541.07M535.50M620.86M696.82M689.38M
Cash Flow
Free Cash Flow109.54M155.80M51.05M-19.49M-14.44M170.85M
Operating Cash Flow118.64M164.80M56.85M-13.73M-4.58M181.15M
Investing Cash Flow-30.15M-26.16M-27.43M-79.52M-9.98M-16.84M
Financing Cash Flow-24.57M-28.91M797.00K-24.02M-68.12M-8.06M

Netgear Technical Analysis

Technical Analysis Sentiment
Negative
Last Price23.69
Price Trends
50DMA
28.24
Negative
100DMA
26.63
Negative
200DMA
26.02
Negative
Market Momentum
MACD
-1.40
Positive
RSI
30.92
Neutral
STOCH
27.98
Neutral
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 23.69 is below the 20-day moving average (MA) of 27.00, below the 50-day MA of 28.24, and below the 200-day MA of 26.02, indicating a bearish trend. The MACD of -1.40 indicates Positive momentum. The RSI at 30.92 is Neutral, neither overbought nor oversold. The STOCH value of 27.98 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 39 risk factors in its most recent earnings report. Netgear reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Netgear Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$25.84B47.08237.68%0.56%21.43%56.87%
69
Neutral
$4.45B21,238.890.42%13.96%-96.21%
66
Neutral
$701.09M-66.95%-10.18%75.30%
65
Neutral
$647.63M10.4412.97%0.76%
62
Neutral
$34.80B6.83-10.78%2.06%6.36%-8.52%
46
Neutral
$7.74B-1.60%-35.86%85.81%
$45.84M-4.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NTGR
Netgear
23.69
9.07
62.04%
ADTN
Adtran
9.47
4.79
102.35%
SATS
Echostar
26.33
7.39
39.02%
UI
Ubiquiti Networks
437.87
271.39
163.02%
PI
IMPINJ
164.05
23.80
16.97%
FKWL
Franklin Wireless
3.89
-0.11
-2.75%

Netgear Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Netgear Appoints Jonathan Oakes as SVP of Home Networking
Positive
Jul 29, 2025

On June 2, 2025, NETGEAR, Inc. appointed Jonathan Oakes as Senior Vice President of Home Networking, a role in which he will oversee the company’s home networking business, including hardware, software, and subscription services. Oakes, a seasoned product innovator with over two decades of experience, is expected to drive the next generation of reliable, secure, and intelligent connectivity for modern households. His appointment is part of NETGEAR’s ongoing transformation and commitment to customer-focused product development. The company anticipates that Oakes’ leadership will be instrumental in continuing to power extraordinary experiences for customers and enhancing NETGEAR’s position in the industry.

The most recent analyst rating on (NTGR) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Netgear stock, see the NTGR Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Netgear Announces Acquisition of Exium Inc.
Positive
Jun 5, 2025

On June 5, 2025, NETGEAR announced its agreement to acquire Exium Inc., a cybersecurity software company, to enhance its cloud-based solutions for business connectivity. This acquisition aims to integrate Exium’s Secure Access Service Edge (SASE) platform into NETGEAR’s offerings, aligning with its strategy to provide comprehensive networking and security solutions for small and medium enterprises. The transaction, expected to close by the end of Q2 2025, will not materially impact NETGEAR’s financial position for the year. Exium’s expertise will bolster NETGEAR’s ability to deliver an all-in-one solution, addressing the growing demand for cloud-based networking and security services.

The most recent analyst rating on (NTGR) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Netgear stock, see the NTGR Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Netgear Holds Annual Stockholders Meeting with Key Votes
Neutral
May 30, 2025

On May 29, 2025, Netgear, Inc. held its Annual Meeting of Stockholders virtually, where stockholders voted on five proposals. These included the election of seven directors, ratification of PricewaterhouseCoopers as the independent auditor, approval of executive compensation, the 2025 Equity Incentive Plan, and an amendment to the 2003 Employee Stock Purchase Plan. The meeting saw significant engagement with 25,361,311 shares represented, indicating active participation from stakeholders. The results of the votes reflect the company’s ongoing governance and strategic planning efforts, with implications for its operational and financial strategies moving forward.

The most recent analyst rating on (NTGR) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Netgear stock, see the NTGR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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: Aug 01, 2025