Revenue: As of FY2026 Q2, the actual value is USD 168.56 M, beating the estimate of USD 157.8 M.

EPS: As of FY2026 Q2, the actual value is USD -0.27.

EBIT: As of FY2026 Q2, the actual value is USD -6.74 M.

Q2 2026 Consolidated Financial Performance

NETGEAR, Inc. reported net revenue of $168.6 million for Q2 2026, representing a decrease of 1.2% year over year. GAAP gross margin was 40.2%, an increase of 270 basis points year over year, while non-GAAP gross margin was 41.4%, up 360 basis points year over year. The company recorded a GAAP operating income of - $8.4 million, compared to - $9.5 million in Q2 prior year, and a non-GAAP operating income of $4.0 million, compared to - $1.2 million in Q2 prior year. Annual Recurring Revenue (ARR) from subscription and services was approximately $42 million. NETGEAR, Inc. repurchased $12.9 million of shares in Q2 2026, bringing the total to over $116 million since early 2024, with approximately $75 million remaining in current authorization. The company’s headcount was 822, and deferred revenue (current and non-current) amounted to $29,449 thousand as of June 28, 2026.

Segment Performance (Q2 2026)

Enterprise Segment

The Enterprise segment generated revenue of $89.0 million, marking a 7.7% increase year over year. Its non-GAAP gross margin reached 54.1%, up 740 basis points year over year, and the non-GAAP contribution margin was 25.9%, an increase of 660 basis points year over year.

Consumer Segment

The Consumer segment’s revenue was $79.6 million, a decrease of 9.4% year over year. The non-GAAP gross margin for this segment was 27.3%, down 210 basis points year over year, and the non-GAAP contribution margin was - 2.2%, a decrease of 590 basis points year over year. The recurring revenue component within the home networking business experienced a 15% year-over-year growth in annual recurring revenue.

Cash Flow (Six Months Ended June 28, 2026)

Net cash used in operating activities was - $8,520 thousand. Net cash provided by investing activities totaled $14,467 thousand. Net cash used in financing activities was - $41,555 thousand, resulting in a net decrease in cash and cash equivalents and restricted cash of - $35,608 thousand. Cash and cash equivalents and restricted cash at the end of the period were $176,398 thousand. Total cash, cash equivalents, and short-term investments amounted to $267,879 thousand, while accounts receivable, net, was $152,820 thousand and inventories stood at $174,933 thousand.

Business Outlook for Q3 2026

NETGEAR, Inc. anticipates third-quarter net revenue to be in the range of $165 million to $175 million, with Service Provider and related products revenue expected to be approximately $22 million. The company foresees an approximate 200 basis point headwind to its combined gross margin in the second half of the year, primarily affecting Q3. Third-quarter GAAP operating margin is projected to be between -12.0% and -9.0%, and non-GAAP operating margin is expected to range from -3.0% to 0.0%.