Revenue

3 Months Ended

Mar. 30, 2025

Revenue from Contract with Customer [Abstract]

Revenue

Note 3. Revenue

Revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

Transaction Price Allocated to the Remaining Performance Obligations

Remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities, in-transit orders with destination terms, and non-cancellable backlog. Non-cancellable backlog includes goods for which customer purchase orders have been accepted, that are scheduled or in the process of being scheduled for shipment, and that are not yet invoiced.

The following table summarizes estimated revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of March 30, 2025:

(In thousands)	Less than 1 year		1 to 2 years		Beyond 2 years		Total
Performance obligations	$	63,662	$	2,916	$	2,120	$	68,698

Contract Balances

The Company records accounts receivable when it has an unconditional right to consideration. Contract liabilities are recorded when cash payments are received or due in advance of performance. Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations. Contract liabilities are mainly classified as Deferred revenue on the unaudited condensed consolidated balance sheets.

Payment terms vary by customer. The time between invoicing and when payment is due is not significant. For certain products or services and customer types, payment is required before the products or services are delivered to the customer.

The following table reflects the contract balances:

(In thousands)	Balance Sheet Location	March 30, 2025		December 31, 2024
Accounts receivable, net	Accounts receivable, net	$	142,706	$	156,210
Contract liabilities – current	Deferred revenue	$	30,236	$	30,261
Contract liabilities – non-current	Other non-current liabilities	$	4,962	$	5,101

The difference in the balances of the Company’s contract assets and liabilities as of March 30, 2025 and December 31, 2024, primarily results from the timing difference between the Company's performance and the customer's payment.

During the three months ended March 30, 2025, $12.1 million of revenue was deferred primarily due to unsatisfied performance obligations for service contracts, $12.2 million of revenue was recognized for the satisfaction of performance obligations and $10.8 million of this recognized revenue was included in the contract liability balance at the beginning of the period.

There were no significant changes in estimates during the period that would affect the contract balances.

Disaggregation of Revenue

In the following tables, net revenue is disaggregated by geographic region and sales channel. The Company conducts business across three geographic regions: Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific (“APAC”). The tables also include reconciliations of the disaggregated revenue by reportable segment. As disclosed above, effective January 1, 2025, the Company operates and reports in three segments: NETGEAR for Business, Home Networking and Mobile. The prior-year segment financial information has been recast to conform to the current-year presentation. Sales and usage-based taxes are excluded from net revenue.

	Three Months Ended
	March 30, 2025								March 31, 2024
(In thousands)	NETGEAR for Business		Home Networking		Mobile		Total		NETGEAR for Business		Home Networking		Mobile		Total
Geographic regions (1):
Americas	$	40,481	$	52,539	$	14,741	$	107,761	$	31,933	$	55,731	$	22,264	$	109,928
EMEA		24,339		5,182		2,608		32,129		23,177		5,035		2,975		31,187
APAC		14,371		3,666		4,133		22,170		13,513		6,458		3,500		23,471
Total	$	79,191	$	61,387	$	21,482	$	162,060	$	68,623	$	67,224	$	28,739	$	164,586
Sales channels:
Service provider	$	270	$	719	$	16,951	$	17,940	$	243	$	4,615	$	22,938	$	27,796
Non-service provider		78,921		60,668		4,531		144,120		68,380		62,609		5,801		136,790
Total	$	79,191	$	61,387	$	21,482	$	162,060	$	68,623	$	67,224	$	28,739	$	164,586

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(1) No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.