Revenue: As of FY2026 Q1, the actual value is USD 158.82 M, beating the estimate of USD 158.66 M.EPS: As of FY2026 Q1, the actual value is USD -0.47.<h3>Overall Company Performance</h3>NETGEAR, Inc. reported a GAAP gross margin of 40.5%, which is an increase of 570 basis points from 34.8% in the first quarter of the prior year. The non-GAAP gross margin was 41.7%, up 670 basis points from 35.0% in the prior year’s first quarter. GAAP operating income was - $13.6 million, compared to - $12.8 million in the first quarter of the prior year. Non-GAAP operating income improved to $1.7 million from - $2.6 million in the prior year’s first quarter. The company experienced a GAAP net loss of - $13,040 thousand, while non-GAAP net income was $1,854 thousand. Annual Recurring Revenue (ARR) from subscription and services was approximately $40 million. Share repurchases amounted to $20 million at an average price of $21.53 per share, with an additional $75 million approved for repurchase authorization, bringing the total remaining authorization to approximately $89 million.<h3>Segment Revenue and Performance</h3><h4>Enterprise Segment</h4>Revenue for the Enterprise segment was $83.8 million, marking a 5.8% increase year over year. The non-GAAP gross margin for this segment was 52.7%, up 640 basis points year over year. The non-GAAP contribution margin for the Enterprise segment increased by 160 basis points year over year to 23.9%. This segment constituted 53% of the total revenue.<h4>Consumer Segment</h4>Revenue for the Consumer segment was $75.0 million, representing a 9.5% decrease year over year. The segment’s non-GAAP gross margin was 29.4%, an increase of 520 basis points year over year. The non-GAAP contribution margin for the Consumer segment was - 0.2%, which is an increase of 160 basis points year over year. Service provider net revenue within the Consumer segment totaled $20,232 thousand.<h3>Cash Flow (Three Months Ended March 29, 2026)</h3>Net cash provided by operating activities totaled $1,646 thousand. Net cash used in investing activities was - $3,974 thousand. Net cash used in financing activities amounted to - $24,100 thousand. Cash and cash equivalents at the end of the period were $183,476 thousand.<h3>Balance Sheet (As of March 29, 2026)</h3>Cash and cash equivalents were $183,476 thousand, and short-term investments amounted to $113,033 thousand. Total current assets were $642,818 thousand, with total assets reaching $801,931 thousand. Total liabilities stood at $330,776 thousand, and total stockholders’ equity was $471,155 thousand. Deferred revenue (current and non-current) totaled $30,224 thousand.<h3>Operational Metrics (Q1 2026)</h3>The company’s headcount was 786, and Days Sales Outstanding (DSO) was 79. Ending inventory turns were 2.2. Weeks of channel inventory were 11.5 for the U.S. retail channel, 5.0 for the U.S. distribution channel, 4.8 for the EMEA distribution channel, and 12.7 for the APAC distribution channel.<h3>Business Outlook for Q2 2026</h3>NETGEAR, Inc. anticipates second quarter net revenue to be in the range of $150 million to $165 million. GAAP operating margin is expected between - 8.4% and - 5.4%, while non-GAAP operating margin is projected to be between - 1.0% and 2.0%. The company forecasts service provider revenue to be around $18 million, representing an approximate 33% decline compared to the second quarter of 2025.

Netgear | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 158.82 M