📊 NTGR Key Takeaways
Is Netgear, Inc.. (NTGR) a Good Investment?
Netgear exhibits severe profitability deterioration with negative operating and net margins despite a substantial revenue increase, indicating poor operational execution or unsustainable revenue recognition. The company is burning cash with negative free cash flow of -$18.9M while facing margin compression, suggesting fundamental business challenges beyond temporary headwinds.
NETGEAR’s balance sheet is clean with no long‑term debt, solid liquidity, and a healthy gross margin profile, providing runway to execute. However, the company remains loss‑making with negative free cash flow, and the outsized revenue growth appears low‑quality given the weak operating profitability. Evidence of sustained operating leverage and cash generation is needed before a more constructive stance.
Why Buy Netgear, Inc.. Stock? NTGR Key Strengths
- Strong liquidity position with $209.9M cash and 2.69x current ratio provides financial flexibility
- Healthy balance sheet with zero long-term debt and positive stockholders' equity of $497.8M
- Gross margin of 38% indicates reasonable product pricing power and cost of goods sold management
- Net cash position with no long-term debt
- Strong liquidity (current and quick ratios)
- Healthy gross margin (~38%) supporting potential operating leverage
NTGR Stock Risks: Netgear, Inc.. Investment Risks
- Negative net income of -$17.9M and operating margin of -4.9% demonstrate significant operational losses despite high revenue
- Free cash flow is negative at -$18.9M with minimal operating cash generation of $1.6M, indicating unsustainable cash burn
- Revenue spike of 5938.5% YoY is anomalous and may reflect one-time revenue recognition, acquisition accounting, or data quality issues requiring clarification
- Deteriorating profitability with net income decline of -245% YoY despite revenue growth signals margin compression or non-recurring charges
- Continued operating losses and negative free cash flow
- Volatile demand/channel dynamics impacting working capital and OCF
- Competitive pricing pressure risking margin compression
Key Metrics to Watch
- Operating cash flow trend and path to positive FCF generation
- Operating margin recovery and cost structure rationalization
- Sustainability and composition of revenue growth in subsequent quarters
- Operating margin trajectory toward sustained profitability
- Operating cash flow and free cash flow consistency
Netgear, Inc.. (NTGR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.69x current ratio provides a solid financial cushion.
NTGR Profit Margin, ROE & Profitability Analysis
NTGR vs Telecom Sector: How Netgear, Inc.. Compares
How Netgear, Inc.. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Netgear, Inc.. Stock Overvalued? NTGR Valuation Analysis 2026
Based on fundamental analysis, Netgear, Inc.. has mixed fundamental signals relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Netgear, Inc.. Balance Sheet: NTGR Debt, Cash & Liquidity
NTGR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Netgear, Inc..'s revenue has declined by 41% over the 5-year period, indicating business contraction. The most recent EPS of $-3.57 indicates the company is currently unprofitable.
NTGR Revenue Growth, EPS Growth & YoY Performance
NTGR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $182.9M | -$4.8M | $-0.17 |
| Q2 2025 | $143.9M | -$6.0M | $-0.22 |
| Q1 2025 | $162.1M | -$6.0M | $-0.21 |
| Q3 2024 | $182.9M | -$8.6M | $0.72 |
| Q2 2024 | $143.9M | -$8.6M | $-0.29 |
| Q1 2024 | $164.6M | -$9.7M | $-0.33 |
| Q3 2023 | $197.8M | $2.8M | $0.10 |
| Q2 2023 | $173.4M | -$8.5M | $-0.29 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Netgear, Inc.. Dividends, Buybacks & Capital Allocation
NTGR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Netgear, Inc.. (CIK: 0001122904)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NTGR
What is the AI rating for NTGR?
Netgear, Inc.. (NTGR) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NTGR's key strengths?
Claude: Strong liquidity position with $209.9M cash and 2.69x current ratio provides financial flexibility. Healthy balance sheet with zero long-term debt and positive stockholders' equity of $497.8M. ChatGPT: Net cash position with no long-term debt. Strong liquidity (current and quick ratios).
What are the risks of investing in NTGR?
Claude: Negative net income of -$17.9M and operating margin of -4.9% demonstrate significant operational losses despite high revenue. Free cash flow is negative at -$18.9M with minimal operating cash generation of $1.6M, indicating unsustainable cash burn. ChatGPT: Continued operating losses and negative free cash flow. Volatile demand/channel dynamics impacting working capital and OCF.
What is NTGR's revenue and growth?
Netgear, Inc.. reported revenue of $699.6M.
Does NTGR pay dividends?
Netgear, Inc.. does not currently pay dividends.
Where can I find NTGR SEC filings?
Official SEC filings for Netgear, Inc.. (CIK: 0001122904) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NTGR's EPS?
Netgear, Inc.. has a diluted EPS of $-0.63.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NTGR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Netgear, Inc.. has a SELL rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NTGR stock overvalued or undervalued?
Valuation metrics for NTGR: ROE of -3.6% (sector avg: 15%), net margin of -2.6% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
Should I buy NTGR stock in 2026?
Our dual AI analysis gives Netgear, Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NTGR's free cash flow?
Netgear, Inc..'s operating cash flow is $1.6M, with capital expenditures of $20.5M. FCF margin is -2.7%.
How does NTGR compare to other Telecom stocks?
Vs Telecom sector averages: Net margin -2.6% (avg: 14%), ROE -3.6% (avg: 15%), current ratio 2.69 (avg: 1).