NETGEAR, Inc. has recently released its 10-Q report, providing detailed insights into the company's financial performance and operations. The company operates in two segments, Connected Home, and NETGEAR for Business. The Connected Home segment offers a range of connectivity solutions for homes, including Wi-Fi routers, broadband modems, and Wi-Fi range extenders. On the other hand, the NETGEAR for Business segment provides networking solutions for businesses, including enterprise-grade cloud-managed access points and ethernet switches. NETGEAR, Inc. markets and sells its products through wholesale distributors, retailers, and broadband service providers, as well as through its direct online store.
In the 10-Q report, NETGEAR discusses the forward-looking statements, highlighting its expectations and beliefs concerning future events based on available information. The company emphasizes its focus on capitalizing on technological inflection points and developing products that serve a broader market segment. Additionally, the report outlines the realignment of the business structure, with the separation of the Connected Home segment into two distinct reportable segments: Home Networking and Mobile, effective from January 1, 2025.
Financially, during the three months ended March 30, 2025, NETGEAR reported a decrease in net revenue by $2.5 million compared to the prior year period. This decline was primarily attributed to decreases in the Mobile and Home Networking segments, partially offset by an increase in the NETGEAR for Business segment. The company also noted an increase in gross margin by 550 basis points compared to the prior year period, primarily due to a higher mix of NETGEAR for Business products, which generally carry higher gross margins.
Geographically, net revenue from NETGEAR for Business increased in all three regions, while net revenue from Home Networking decreased in the Americas and APAC but increased in EMEA. Net revenue from the Mobile segment decreased in the Americas and EMEA but increased in APAC during the same period.
NETGEAR also addressed the global events affecting its business and operations, highlighting macroeconomic and geopolitical trends that have created uncertainty in the global economic environment. The company emphasized its focus on more predictable performance aligned with the market and anticipated continued net revenue growth in the NETGEAR for Business segment.
Following these announcements, the company's shares moved -0.6%, and are now trading at a price of $27.82. For more information, read the company's full 10-Q submission here.
