Recent News
NETGEAR scheduled investor presentations for March 2026 and announced product rollouts tied to ISE 2026, including ruggedized switching and updated network configuration features; coverage of the Nighthawk 5G M7 hotspot and reviews appeared in February 2026, and the company confirmed participation in investor conferences in March.
Technical Analysis
ADX sits at 17.88, below 20, indicating no established trend and leaving directional impulses fragile.
DI+ shows a peak-and-reversal while DI- shows a dip-and-reversal; both directional indicators therefore register bearish signals, implying recent strength gave way to renewed downside pressure.
MACD registers -0.02 with a peak-and-reversal trend, signaling weakening momentum; the MACD line currently sits above its signal line (-0.12), creating a short-term bullish crossover that contrasts with the underlying peak-and-reversal momentum.
MRO stands at 23.67 with a peak-and-reversal; the positive MRO indicates price currently trades above the model target and therefore faces downward pressure toward the target in the near term.
RSI at 43.23 with a peak-and-reversal places the stock in neutral-to-weak territory and aligns with other momentum signals pointing toward consolidation or modest selling pressure.
Price sits below the 20-day (21.21), 50-day (21.27), and well below the 200-day average (26.34); short-term EMAs and the 12-day EMA show a peak-and-reversal, reinforcing near-term downside bias versus the larger-term average.
Ichimoku components place price under the cloud (Senkou A 21.34, Senkou B 23.17), which constitutes a bearish configuration for trend-following traders.
Bollinger bands show price near the lower 1x band (~$20.71), leaving limited immediate downside cushion; intraday volume ran above the 10-day average, suggesting conviction behind recent moves and higher participation on the current leg of trading.
Fundamental Analysis
Profitability: EBIT totals -$4,025,000, yielding an EBIT margin of -2.21% (QoQ change -25.40%; YoY change -62.69%). That margin sits below the industry peer mean of 26.43% and below the industry peer median of 25.14%, indicating NETGEAR operates with compressed operating profitability relative to peers.
Income Statement and Cash Flow: Total revenue reached $182,468,000 with gross margin at 40.36% (up QoQ and YoY), and gross profit of $73,635,000. Net income recorded a small loss of -$684,000. Operating cash flow finished at $19,508,000 and free cash flow at $13,624,000, producing a free cash flow yield of 1.96% (free cash flow YoY growth +118.97%).
Liquidity and Capital Structure: Cash and short-term investments total $323,036,000 and the current ratio equals 2.69 with a quick ratio of 1.99 and a cash ratio of 1.29, indicating ample near-term liquidity to absorb operating shortfalls. Total debt stands at $50,949,000 with debt-to-equity of 10.23% and debt-to-assets of 6.09%—levels consistent with a low-leverage profile.
Valuation Multiples: Trailing P/E near 94.41x and forward P/E at 184.51x reflect earnings volatility and low forward earnings; price-to-book sits at 1.40x. EV-to-revenue (EVR) equals 2.33. WMDST values the stock as fair-valued under current assumptions.
Operational Efficiency: Asset turnover registers 0.22, above the industry peer mean of 0.14, signaling relatively efficient use of assets to generate sales. Days inventory outstanding of 139.35 and a cash conversion cycle of 173.43 days reflect extended working capital cycles that compress near-term cash conversion.
Earnings and Estimates: Reported EPS of $0.26 exceeded the $0.05 estimate by $0.21, producing an EPS surprise of +420%. Forward EPS sits near $0.147, and PEG and forward-PEG metrics indicate expectations for continued earnings growth but at elevated multiple dispersion versus peers.
Valuation Summary: Strong cash reserves, positive free cash flow, and improving gross margin support the WMDST designation of fair-valued, while negative operating margin and high trailing/forward multiples reflect earnings instability and elevated valuation sensitivity to margin recovery.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-04 |
| NEXT REPORT DATE: | 2026-05-06 |
| CASH FLOW | Begin Period Cash Flow | $ 203.5 M |
| Operating Cash Flow | $ 19.5 M | |
| Capital Expenditures | $ -5.88 M | |
| Change In Working Capital | $ 7.6 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 6.4 M | |
| End Period Cash Flow | $ 209.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 182.5 M | |
| Forward Revenue | $ -273.33 M | |
| COSTS | ||
| Cost Of Revenue | $ 108.8 M | |
| Depreciation | $ 2.9 M | |
| Depreciation and Amortization | $ 2.9 M | |
| Research and Development | $ 23.2 M | |
| Total Operating Expenses | $ 186.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 73.6 M | |
| EBITDA | $ -1.14 M | |
| EBIT | $ -4.03 M | |
| Operating Income | $ -4.03 M | |
| Interest Income | — | |
| Interest Expense | — | |
| Net Interest Income | — | |
| Income Before Tax | $ -2.54 M | |
| Tax Provision | $ -1.86 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ -684.00 K | |
| Net Income From Continuing Operations | $ -684.00 K | |
| EARNINGS | ||
| EPS Estimate | $ 0.05 | |
| EPS Actual | $ 0.26 | |
| EPS Difference | $ 0.21 | |
| EPS Surprise | 420.0 % | |
| Forward EPS | $ 0.15 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 836.3 M | |
| Intangible Assets | $ 83.5 M | |
| Net Tangible Assets | $ 414.3 M | |
| Total Current Assets | $ 673.3 M | |
| Cash and Short-Term Investments | $ 323.0 M | |
| Cash | $ 209.9 M | |
| Net Receivables | $ 142.0 M | |
| Inventory | $ 176.5 M | |
| Long-Term Investments | $ 5.7 M | |
| LIABILITIES | ||
| Accounts Payable | $ 43.7 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 250.2 M | |
| Net Debt | — | |
| Total Debt | $ 50.9 M | |
| Total Liabilities | $ 338.4 M | |
| EQUITY | ||
| Total Equity | $ 497.8 M | |
| Retained Earnings | $ -538.95 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 17.54 | |
| Shares Outstanding | 27.943 M | |
| Revenue Per-Share | $ 6.43 | |
| VALUATION | Market Capitalization | $ 696.7 M |
| Enterprise Value | $ 424.7 M | |
| Enterprise Multiple | -373.159 | |
| Enterprise Multiple QoQ | 133.252 % | |
| Enterprise Multiple YoY | 862.198 % | |
| Enterprise Multiple IPRWA | high: 162.94 median: 65.64 mean: 58.194 low: -131.326 NTGR: -373.159 |
|
| EV/R | 2.327 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.68 | |
| Asset To Liability | 2.471 | |
| Debt To Capital | 0.093 | |
| Debt To Assets | 0.061 | |
| Debt To Assets QoQ | 6.058 % | |
| Debt To Assets YoY | 69.081 % | |
| Debt To Assets IPRWA | high: 0.485 median: 0.232 mean: 0.216 NTGR: 0.061 low: 0.011 |
|
| Debt To Equity | 0.102 | |
| Debt To Equity QoQ | 11.372 % | |
| Debt To Equity YoY | 80.749 % | |
| Debt To Equity IPRWA | high: 3.018 median: 0.599 mean: 0.553 NTGR: 0.102 low: 0.016 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.4 | |
| Price To Book QoQ | -17.704 % | |
| Price To Book YoY | 3.972 % | |
| Price To Book IPRWA | high: 23.793 mean: 7.244 median: 5.824 NTGR: 1.4 low: -3.96 |
|
| Price To Earnings (P/E) | 94.408 | |
| Price To Earnings QoQ | -62.694 % | |
| Price To Earnings YoY | -122.165 % | |
| Price To Earnings IPRWA | high: 283.513 mean: 103.602 NTGR: 94.408 median: 55.371 low: -106.255 |
|
| PE/G Ratio | 0.809 | |
| Price To Sales (P/S) | 3.818 | |
| Price To Sales QoQ | -18.242 % | |
| Price To Sales YoY | -4.364 % | |
| Price To Sales IPRWA | high: 57.171 median: 18.342 mean: 16.544 NTGR: 3.818 low: -21.103 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 184.511 | |
| Forward PE/G | 1.582 | |
| Forward P/S | -2.509 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 23.14 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.222 | |
| Asset Turnover Ratio QoQ | -3.096 % | |
| Asset Turnover Ratio YoY | 4.023 % | |
| Asset Turnover Ratio IPRWA | high: 0.274 NTGR: 0.222 mean: 0.141 median: 0.126 low: -0.072 |
|
| Receivables Turnover | 1.209 | |
| Receivables Turnover Ratio QoQ | -0.208 % | |
| Receivables Turnover Ratio YoY | 10.5 % | |
| Receivables Turnover Ratio IPRWA | high: 3.545 mean: 2.094 median: 1.902 NTGR: 1.209 low: -0.557 |
|
| Inventory Turnover | 0.635 | |
| Inventory Turnover Ratio QoQ | -8.506 % | |
| Inventory Turnover Ratio YoY | -16.315 % | |
| Inventory Turnover Ratio IPRWA | high: 3.835 median: 1.469 mean: 1.138 NTGR: 0.635 low: 0.03 |
|
| Days Sales Outstanding (DSO) | 75.494 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 173.426 | |
| Cash Conversion Cycle Days QoQ | 5.833 % | |
| Cash Conversion Cycle Days YoY | 7.93 % | |
| Cash Conversion Cycle Days IPRWA | high: 244.291 NTGR: 173.426 mean: 105.392 median: 48.986 low: -114.906 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.431 | |
| CapEx To Revenue | -0.032 | |
| CapEx To Depreciation | -2.038 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 497.8 M | |
| Net Invested Capital | $ 497.8 M | |
| Invested Capital | $ 497.8 M | |
| Net Tangible Assets | $ 414.3 M | |
| Net Working Capital | $ 423.1 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.291 | |
| Current Ratio | 2.691 | |
| Current Ratio QoQ | -5.635 % | |
| Current Ratio YoY | -4.129 % | |
| Current Ratio IPRWA | high: 3.876 NTGR: 2.691 mean: 1.77 median: 1.294 low: 0.733 |
|
| Quick Ratio | 1.986 | |
| Quick Ratio QoQ | -7.863 % | |
| Quick Ratio YoY | -9.946 % | |
| Quick Ratio IPRWA | high: 6.175 NTGR: 1.986 mean: 1.457 median: 0.955 low: 0.59 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -44.771 | |
| Cost Of Debt | 3.072 % | |
| Interest Coverage Ratio | -2.863 | |
| Interest Coverage Ratio QoQ | -26.241 % | |
| Interest Coverage Ratio YoY | -62.68 % | |
| Interest Coverage Ratio IPRWA | high: 102.286 mean: 13.989 median: 10.689 NTGR: -2.863 low: -4.065 |
|
| Operating Cash Flow Ratio | -0.017 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 41.418 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 3.141 % | |
| Revenue Growth | -1.134 % | |
| Revenue Growth QoQ | -113.784 % | |
| Revenue Growth YoY | 376.471 % | |
| Revenue Growth IPRWA | high: 26.864 % mean: 6.457 % median: 5.944 % NTGR: -1.134 % low: -38.044 % |
|
| Earnings Growth | 116.667 % | |
| Earnings Growth QoQ | 16.667 % | |
| Earnings Growth YoY | -186.232 % | |
| Earnings Growth IPRWA | high: 150.0 % NTGR: 116.667 % mean: 7.99 % median: -5.882 % low: -130.769 % |
|
| MARGINS | ||
| Gross Margin | 40.355 % | |
| Gross Margin QoQ | 3.083 % | |
| Gross Margin YoY | 23.963 % | |
| Gross Margin IPRWA | high: 103.263 % median: 62.859 % mean: 57.623 % NTGR: 40.355 % low: 17.052 % |
|
| EBIT Margin | -2.206 % | |
| EBIT Margin QoQ | -25.397 % | |
| EBIT Margin YoY | -62.686 % | |
| EBIT Margin IPRWA | high: 41.519 % mean: 26.432 % median: 25.136 % NTGR: -2.206 % low: -19.959 % |
|
| Return On Sales (ROS) | -2.206 % | |
| Return On Sales QoQ | -25.397 % | |
| Return On Sales YoY | -62.686 % | |
| Return On Sales IPRWA | high: 41.519 % mean: 25.033 % median: 23.584 % NTGR: -2.206 % low: -19.959 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 13.6 M | |
| Free Cash Flow Yield | 1.955 % | |
| Free Cash Flow Yield QoQ | -198.638 % | |
| Free Cash Flow Yield YoY | -25.01 % | |
| Free Cash Flow Yield IPRWA | high: 8.108 % NTGR: 1.955 % mean: 1.279 % median: 1.058 % low: -8.625 % |
|
| Free Cash Growth | -179.738 % | |
| Free Cash Growth QoQ | -180.87 % | |
| Free Cash Growth YoY | 118.968 % | |
| Free Cash Growth IPRWA | high: 590.091 % mean: 2.831 % median: -28.081 % NTGR: -179.738 % low: -565.4 % |
|
| Free Cash To Net Income | -19.918 | |
| Cash Flow Margin | -2.363 % | |
| Cash Flow To Earnings | 6.304 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -0.083 % | |
| Return On Assets QoQ | -85.98 % | |
| Return On Assets YoY | -92.004 % | |
| Return On Assets IPRWA | high: 5.098 % mean: 2.806 % median: 2.35 % NTGR: -0.083 % low: -7.422 % |
|
| Return On Capital Employed (ROCE) | -0.687 % | |
| Return On Equity (ROE) | -0.001 | |
| Return On Equity QoQ | -85.456 % | |
| Return On Equity YoY | -91.657 % | |
| Return On Equity IPRWA | high: 0.23 mean: 0.066 median: 0.061 NTGR: -0.001 low: -0.452 |
|
| DuPont ROE | -0.136 % | |
| Return On Invested Capital (ROIC) | -0.639 % | |
| Return On Invested Capital QoQ | -24.912 % | |
| Return On Invested Capital YoY | -128.888 % | |
| Return On Invested Capital IPRWA | high: 7.017 % mean: 4.459 % median: 4.209 % NTGR: -0.639 % low: -8.444 % |
|