📊 NTGR Key Takeaways
Is NTGR a Good Investment? Thesis Analysis
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.
Why Buy 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
NTGR Investment Risks to Consider
- 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
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
NTGR Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.69x current ratio provides a solid financial cushion.
NTGR Profitability Ratios
NTGR vs Default Sector
How NETGEAR, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NTGR Overvalued or Undervalued?
Based on fundamental analysis, NETGEAR, INC. has mixed fundamental signals relative to the Default 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.
NTGR Balance Sheet & Liquidity
NTGR 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
NTGR Quarterly 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.
NTGR Capital Allocation
NTGR SEC 10-K & 10-Q Filing 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 an AI rating of SELL with 75% 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.
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.
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 75% 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: 12%). 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 Default stocks?
Vs Default sector averages: Net margin -2.6% (avg: 12%), ROE -3.6% (avg: 15%), current ratio 2.69 (avg: 1.8).