Segment Information

6 Months Ended

Jun. 29, 2025

Segment Reporting [Abstract]

Segment Information

Note 12. Segment Information

Operating segments are components of an enterprise about which separate financial information is available and is evaluated quarterly by management, namely the Chief Operating Decision Maker (“CODM”) of an organization, in order to determine operating and resource allocation decisions. By this definition, the Company has identified its CEO as the CODM. As previously announced, in the first fiscal quarter of 2025, the Company realigned its business structure by separating the Connected Home segment into two distinct reportable segments: Mobile and Home Networking. This realignment is intended to further strengthen the Company's operational and financial management and enable further focus on growth opportunities while maintaining financial discipline. The leadership team of each segment focuses on serving the unique needs of their customers through product and service development from both a product marketing and engineering standpoint, while also managing the sales and marketing functions that support their businesses. Effective January 1, 2025, the Company operates and reports in three segments: NETGEAR for Business, Mobile, and Home Networking. The prior-year segment financial information has been recast to conform to the current-year presentation.

•NETGEAR for Business: Focuses on businesses and provides solutions for business networking, wireless local area network (“LAN”), audio and video over Ethernet for Pro AV applications, security and remote management providing enterprise-class functionality at an affordable price;

•Mobile: Focuses on both consumers and businesses and provides high-performance Mobile (4G/5G) products, including WiFi 7, WiFi 6/6E-enabled portable mobile hotspots and mobile routers, designed to meet the growing demand for on-the-go, high-speed and reliable internet connectivity with advanced security features.

•Home Networking: Focuses on consumers and provides high-performance, dependable and easy-to-use WiFi internet networking solutions such as WiFi 6, WiFi 6E and WiFi 7 multi-band mesh systems, routers, and subscription services that provide consumers a range of value-added services focused on performance, security, privacy, and premium support.

The results of the reportable segments are derived directly from the Company’s management reporting system. The results are based on the Company’s method of internal reporting and are not necessarily in conformity with accounting principles generally accepted in the United States. Management measures the performance of each segment based on several metrics, including contribution income (loss). Segment contribution income (loss) includes all product line segment revenues less the related cost of sales, research and development and sales and marketing costs. Contribution income (loss) is used, in part, to evaluate the performance of, and allocate resources to, each of the segments. Certain operating expenses are not allocated to segments because they are separately managed at the corporate level. These unallocated indirect costs include corporate costs, such as corporate research and development, corporate marketing and general and administrative expenses, stock-based compensation expense, acquisition related expenses, restructuring and other charges, litigation reserves, net, and other income (expenses), net.

Financial information for each reportable segment and a reconciliation of segment contribution income to income (loss) before income taxes is as follows:

	Three Months Ended
	June 29, 2025												June 30, 2024
(In thousands, except percentage data)	NETGEAR for Business			Mobile			Home Networking			Total			NETGEAR for Business			Mobile (2)			Home Networking (2)			Total
Net revenue	$	82,621		$	20,408		$	67,503		$	170,532		$	59,867		$	24,332		$	59,701		$	143,900
Cost of revenue		44,036			14,476			47,586			106,098			39,720			19,081			52,863			111,664
Gross profit		38,585			5,932			19,917			64,434			20,147			5,251			6,838			32,236
Gross margin		46.7	%		29.1	%		29.5	%		37.8	%		33.7	%		21.6	%		11.5	%		22.4	%
Operating expenses		22,623			5,799			16,763			45,185			18,086			6,418			19,465			43,969
Contribution income (loss)		15,962			133			3,154			19,249			2,061			(1,167	)		(12,627	)		(11,733	)
Contribution margin		19.3	%		0.7	%		4.7	%		11.3	%		3.4	%		(4.8	)%		(21.2	)%		(8.2	)%
Corporate and unallocated costs											(20,472	)											(19,350	)
Stock-based compensation expense											(6,675	)											(5,888	)
Acquisition related expenses											(705	)											—
Restructuring and other charges											(862	)											(1,688	)
Litigation reserves, net											(75	)											(8,200	)
Other income, net (1)											3,976												2,713
Loss before income taxes										$	(5,564	)										$	(44,146	)

	Six Months Ended
	June 29, 2025												June 30, 2024
(In thousands, except percentage data)	NETGEAR for Business			Mobile			Home Networking			Total			NETGEAR for Business			Mobile (2)			Home Networking (2)			Total
Net revenue	$	161,812		$	41,890		$	128,890		$	332,592		$	128,490		$	53,071		$	126,925		$	308,486
Cost of revenue		86,566			30,678			94,166			211,410			79,609			42,853			105,186			227,648
Gross profit		75,246			11,212			34,724			121,182			48,881			10,218			21,739			80,838
Gross margin		46.5	%		26.8	%		26.9	%		36.4	%		38.0	%		19.3	%		17.1	%		26.2	%
Operating expenses		41,649			10,822			33,292			85,763			36,916			12,366			39,525			88,807
Contribution income (loss)		33,597			390			1,432			35,419			11,965			(2,148	)		(17,786	)		(7,969	)
Contribution margin		20.8	%		0.9	%		1.1	%		10.6	%		9.3	%		(4.0	)%		(14.0	)%		(2.6	)%
Corporate and unallocated costs											(39,240	)											(39,156	)
Stock-based compensation expense											(12,171	)											(10,432	)
Acquisition related expenses											(705	)											—
Restructuring and other charges											(5,604	)											(2,720	)
Litigation reserves, net											(38	)											(8,230	)
Other income, net (1)											12,147												5,563
Loss before income taxes										$	(10,192	)										$	(62,944	)

(1)Amounts included interest income of $3.1 million and $6.4 million for the three and six months ended June 29, 2025, respectively, and $2.5 million and $5.0 million for the three and six months ended June 30, 2024, respectively. Amounts also included gain/(loss), net from derivatives not designated as hedging instruments of $(2.1) million and $(3.1) million for the three and six months ended June 29, 2025, respectively, and $0.6 million and $2.1 million for the three and six months ended June 30, 2024, respectively. For the six months ended June 29, 2025, the amount also included proceeds of $4.7 million from a sale of patents.

(2)Financial information for the Mobile segment and Home Networking segment in the prior year period were recast to conform to the current reportable segment structure.

The CODM does not evaluate operating segments using discrete asset information.

Operations by Geographic Region

For reporting purposes, revenue is generally attributed to each geographic region based on the location of the customer.

The following table shows net revenue by geography:

	Three Months Ended				Six Months Ended
(In thousands)	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
United States (U.S.)	$	112,762	$	92,794	$	216,801	$	200,083
Americas (excluding U.S.)		3,517		2,709		7,239		5,348
EMEA (1)		34,375		27,355		66,504		58,542
APAC (1)		19,878		21,042		42,048		44,513
Total net revenue	$	170,532	$	143,900	$	332,592	$	308,486

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

Long-lived assets by Geographic Region

The following table presents the Company’s long-lived assets located in geographic areas, which consist of property and equipment, net, and operating lease right-of-use assets:

(In thousands)	June 29, 2025		December 31, 2024
United States (U.S.)	$	18,605	$	19,057
Canada		4,980		5,573
Americas (excluding U.S. and Canada)		19		39
EMEA		2,883		3,127
Singapore		3,974		4,841
APAC (excluding Singapore) (1)		6,380		6,698
Total	$	36,841	$	39,335

(1)No individual country represented more than 10% of the Company’s total long-lived assets in the periods presented.