NETGEAR beats Q2 revenue expectations

NetGear

30/07/2025 21:21

Overview

NETGEAR Q2 revenue up 18.5% yr/yr, beating analysts estimates

GAAP gross margin hits record 37.5%, up 1,540 bps from Q2 prior yr

Co completes Exium acquisition to enhance NFB security offerings

Outlook

NETGEAR expects Q3 revenue between $165 mln and $180 mln

Company anticipates Q3 GAAP operating margin of -11.0% to -8.0%

NETGEAR sees Q3 non-GAAP operating margin of -5.5% to -2.5%

Company expects Q3 GAAP tax expense of $0.8 mln to $1.8 mln

Result Drivers

PROAV DEMAND - Strong demand for ProAV solutions drove NFB segment revenue up 38% yr/yr, despite supply constraints

PRODUCT MIX - Favorable product mix and operational improvements led to better-than-expected results in Home Networking segment

EXIUM ACQUISITION - Acquisition of Exium enhances security offerings, expected to drive future growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$170.53 mln
$162.10 mln (1 Analyst)
Q2 Adjusted EPS
Beat
$0.06
-$0.15 (1 Analyst)
Q2 Net Income
-$6.43 mln
Q2 Gross Margin
37.5%
Q2 Gross Profit
$63.98 mln
Q2 Operating Income
-$9.54 mln
Q2 Operating Margin
-5.6%
Q2 Pretax Profit
-$5.56 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the communications & networking peer group is "buy"

Wall Street's median 12-month price target for NETGEAR Inc is $29.00, about 13.5% above its July 29 closing price of $25.09

Press Release: ID:nBwb1s0bSa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)