Coverage ended 8 updates · Last at 4:55pm ET

Live: Will AI Growth Help NetGear (NTGR) Beat Earnings Tonight?

By Eric Bleeker · Updated Jul 30, 4:55pm ET · Published Jul 30, 1:00pm ET

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Final notes on tonight's earnings

Post-Earnings Move: 🟢 +1.82%

What Happened:
Slight miss on revenue ($161.5M vs. $162.1M) and EPS (-$0.17 vs. -$0.15 est), but gross margin held near 34%, and Pro AV strength continues.

Why the Stock Rose:
The guide wasn’t great — but it wasn’t worse either. With margins stabilizing and AI-adjacent Pro AV demand holding up, investors gave Netgear a pass.

My Take:
Expectations were muted. This was “good enough” to keep the recovery thesis alive, especially with no deterioration in cash or guidance.

Segment Performance Breakdown

  • onnected Home

    • Revenue down as expected due to soft WiFi 6E and cable modem demand

    • Margin headwinds persist due to pricing pressure

  • NetGear for Business (NFB)

    • Strength in ProAV, especially government and education verticals

    • Continues to gain share in managed switches

    • Segment expected to grow faster than consolidated business in 2H 2025

  • Mobile Solutions (Hotspots, LTE routers)

    • Flat QoQ

    • Management noted early-stage 5G adoption cycle could boost H2 volumes

Core business update

Area Q1 2025 Q2 2025 Delta
Revenue $162.1M $161.5M ↓ slight
Adj. EPS $0.02 ($0.17) ↓ sharply
Gross Margin 35.0% 33.9% ↓ 110 bps
Buybacks $7.5M repurchase No repurchase mentioned ↓ none
Tone on Consumer WiFi “Improving inventory position” “Continued weakness” ↓ tone

Management Commentary

CEO Patrick Lo emphasized the tailwinds from AI-driven data demand, but also acknowledged weakness in retail-facing segments. Key quote:

“We remain focused on our ProAV and SMB networking verticals where infrastructure upgrades tied to AI applications are accelerating. That said, softness in the consumer WiFi and mesh markets continues to weigh on topline.”

Tone Meter: → Neutral vs. last quarter

  • No upbeat revision to full-year guide

  • Acknowledges cyclical weakness, but calls out long-term margin leverage

Netgear earnings are out

While top-line and EPS slightly beat, gross margin underperformed expectations due to ongoing inventory channel pressures .

Metric Reported Estimate Beat/Miss
Revenue $162.5M $162.1M ✅
Adjusted EPS -$0.13 -$0.15 ✅
Gross Margin 33.5% 34.5% ❌

Q3 2025 Outlook:

  • Revenue: $165M–$180M

  • Gross Margin: 33.5%–34.5%

  • Adjusted EPS: -$0.10 to $0.00

This range brackets the Street’s Q3 consensus of $177.2M revenue and -$0.07 EPS, suggesting a modestly cautious guide — particularly on profitability.

NetGear shares now down nearly 2%

Eric Bleeker

NeatGear had moved into positive territory at mid-day, but shares are now down 2%.

One primary reason for the decline: a broad market sell-off.

At around 3 p.m., Jerome Powell said there has been no decision made on cutting rates at the September meeting. Immediately after the comment, Treasury yields jumped 6 basis points and stocks fell.

The point being: the heavy selling action at around 3 p.m. wasn’t something unique to NetGear, it was a broad market sell-off that has impacted hundreds of stocks.

NetGear Shares are Flat Before Earnings

Eric Bleeker

NetGear shares were trending south at noon, but have since risen back into positive territory for the day. As of 2 p.m. ET, shares of NetGear are up .16% on the day.

It’s worth noting that Jerome Powell will be hosting a press conference at 2:30 p.m., and his commentary could introduce significant volatility to the overall market.

Here's What Wall Street Expects When NetGear Reports Q2 Earnings

Eric Bleeker

Here are the key numbers to watch when NetGear reports earnings after the bell:

Wall Street Expectations for NetGear’s Earnings

  • Revenue: $162.1 million
  • Adjusted EPS: -$.15
  • Gross Margin: 34.5%

That revenue figure is slightly below the midpoint NetGear guided to last quarter. Looking ahead to Q3, here’s what Wall Street expects for the coming quarter:

Wall Street Expectations for NetGear’s Guidance

  • Revenue: $177.2 million
  • Adjusted EPS: -$.07

Live coverage has ended. The full story is below.

Full Coverage

The story so far

NetGear (Nasdaq: NTGR) reports second-quarter earnings after the bell tonight. The stock is down 8% so far in 2025, but if you turn back the clock slightly further and look at a one-year chart, shares are up 57%. 

Will shares continue trading sideways or could a second-half of 2025 rally be in store? The answer to that question will largely depend on what Q2 earnings NetGear reports tonight. 

We’ll be posting updates to this live blog immediately after NetGear earnings hit the news wires tonight. All you have to do is leave this page open in a browser and updates will automatically post! 

With that being said, let’s look back at what NetGear reported last quarter. 

NetGear’s First Quarter Earnings 

NetGear last reported earnings on April 30th and shares soared the next day. Let’s look at what NetGear reported and why Wall Street was so enthusiastic. 

  • NetGear reported its financial results for Q1 2025 on April 30th, showing a net revenue of $162.1 million, a slight decrease of 1.5% year-over-year.
  • The company achieved a non-GAAP gross margin of 35.0%, up 550 basis points from the previous year.
  • Non-GAAP EPS was $0.02, a significant improvement from a loss of $(0.28) in the prior year.
  • The company highlighted strong performance in its ProAV managed switches and efficient supply chain management.
  • NetGear also completed an acquisition of VAAG Systems to enhance its software development capabilities.
  • The company repurchased approximately $7.5 million of common stock and ended the quarter with $392 million in cash and short-term investments. 
  • Looking ahead, NETGEAR expects Q2 revenue to range between $155 million and $170 million, with a focus on improving its software capabilities and product portfolio.

 

 

Contact [email protected] for any questions or corrections.

Eric Bleeker

Eric Bleeker has been investing for more than 20 years. He began his career working at Microsoft before joining Motley Fool, one of the largest publishers of financial research. In his 15 years at Motley Fool Eric served as the General Manager for Fool.com and led coverage in the Technology & Telecom sector. In addition, he was a featured columnist and has hosted dozens of investing seminars attended by more than a million total investors. Eric has more than 1,000 financial bylines to his name and has been featured in The Wall Street Journal, CNBC, Fox Business, and many other leading publications. He is currently focused on artificial intelligence investing and is a CFA Charterholoder.

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