Earnings release
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NETGEAR® REPORTS THIRD QUARTER 2026 RESULTS NOVEMBER 4, 2026 SAN JOSE, Calif.--(BUSINESS WIRE)-- NETGEAR, Inc. (NASDAQ: NTGR), a global leader in intelligent networking solutions designed to power extraordinary experiences, today reported financial results for the third quarter ended September 27, 2026. Q3 2026 Net revenue of $167.3 million, down 9.3% as compared to Q3 prior year GAAP gross margin of 40.1%, up 100 basis points year over year Non-GAAP gross margin of 41.3%, up 170 basis points year over year GAAP operating income of $(13.7) million compared to $(7.1) million from Q3 prior year Non-GAAP operating income of $3.3 million compared to $3.8 million from Q3 prior year GAAP EPS of $(0.45) compared to $(0.17) from Q3 prior year Non-GAAP EPS of $0.13 compared to $0.12 from Q3 prior year The accompanying schedules provide a reconciliation of financial measures computed on a GAAP basis to financial measures computed on a non-GAAP basis. CJ Prober, Chief Executive Officer, commented, “We are encouraged by the continued progress in our transformation into a software-differentiated, Enterprise-led company. Our Enterprise business continues to benefit from strong customer demand, particularly across our line of ProAV managed switches, while our expanding software and services capabilities are strengthening our competitive differentiation and creating new opportunities for long-term profitable growth.While the underlying fundamentals of our Enterprise business continue to improve, manufacturing challenges at a key production partner have constrained our ability to fully translate customer demand into revenue during the quarter. We are working closely with our partner to improve production output and productavailability and expect to be back to normal production levels by Q1 2027. When combined with our supply constraints, our strategy to harvest our consumer Service Provider products and optimize the Consumer segment for gross profit are intentionally constraining our topline revenue. We remain confident in ourstrategic direction and remain focused on translating the progress we are making across our business into sustainable growth, greater profitability, and long- term shareholder value.” Bryan Murray, Chief Financial Officer, added, “Our third-quarter results demonstrate the continued progress toward a structurally more profitable business model, with Enterprise accounting for over 54% of our revenue and now approximately 70% of non-GAAP gross profit, underscoring the financial benefits of ourstrategic transformation. We delivered non-GAAP operating income of $3.3 million and a non-GAAP operating margin of 2.0%, exceeding the high end of our guidance range, while consolidated non-GAAP gross margin expanded approximately 170 basis points year over year to 41.3%. These results reflect the growingcontribution from our higher-margin Enterprise business and continued financial discipline, even as manufacturing constraints impacted shipments during the quarter. We also maintained a strong balance sheet, ending the quarter with over $242 million in cash and short-term investments, while repurchasingapproximately $15 million of common stock during Q3, bringing our cumulative share repurchases since the beginning of 2024 to more than $131 million. Looking ahead, we remain focused on improving manufacturing execution, managing Consumer profitability, and maintaining the financial flexibility to invest in ourstrategic priorities and drive sustainable long-term value creation.” Enterprise Segment Results Revenue was $90.7 million, down 0.1% year over year Non-GAAP gross margin was 53.2%, up 220 basis points year over year Non-GAAP contribution margin was 24.5%, down 40 basis points year over year Mr. Prober continued, “Our Enterprise business continues to demonstrate encouraging underlying momentum, particularly across our Pro AV line of managed switches. Despite our supply constraints, end customer sell through increased approximately 6% year over year globally, led by double-digit growth from ourmanaged switch products, with even more positive trends in both the Americas and Europe. While sell through and our reported revenue does not fully reflect end customer demand, these trends reinforce our confidence in the competitiveness of our solutions and the opportunities ahead. Enterprise backlog exited Q3 morethan 2.5x times higher than the end of Q2, which was already at an elevated level due to shortages in the prior quarter as well. Our most immediate priority is restoring reliable product availability following the factory transition at one of our key manufacturing partners given we have secured critical components tosupport our production plans. Given the elevated cost of supply and our pricing leverage in this category, we implemented an additional price increase for our Enterprise products that will take effect in November.” Consumer Segment Results Revenue was $76.6 million, down 18.2% year over year
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Non-GAAP gross margin was 27.2%, down 120 basis points year over year Non-GAAP contribution margin was (1.9)%, down 390 basis points year over year Mr. Prober continued, “In Consumer, we continued to execute our transformation with discipline, prioritizing gross profit in core home networking while managing the service provider business for value as we navigate the higher cost supply environment. Partner manufacturing challenges also impacted the availability ofsupply for a portion of our Consumer router product portfolio. Although revenue remained constrained for these reasons, the recurring revenue component of our home networking business continued to perform well, driving 12% year-over-year growth in our total annual recurring revenue. Consistent with the pricingactions in our Enterprise business, we are implementing a price increase for the products in this segment that will take effect in early 2027. In Q3, we also implemented a restructuring to drive efficiencies in this segment, and those cost reduction efforts will benefit our financial results beginning in 2027. We alsocontinue to monitor developments in the U.S. regulatory environment that could positively influence the competitive landscape for home networking products. NETGEAR's position as a trusted U.S.-based company, our focus on security, and our established brands provide a strong foundation for capitalizing on theseregulatory tail winds. Looking ahead, we remain confident in the strength of our Consumer brands, product portfolio, innovation roadmap and market position. While competitive pressures and rising component costs are expected to persist in the near term, we remain focused on optimizing profitability, expanding ourhigher-margin recurring services offerings, and positioning the business to capitalize on opportunities from the evolving regulatory landscape.” Business Outlook Mr. Murray continued, "Within Enterprise, we continue to see encouraging underlying demand, particularly for our Pro AV managed switches. However, our near- term revenue outlook remains constrained by manufacturing output and the timing of product availability, which we expect to persist into the first quarter of2027. Our guidance reflects the uncertainty surrounding improvements in production execution which we expect will still fall short of customer demand for the fourth quarter. Within Consumer, we expect to continue to optimize this business for gross profit with increasing impact from component costs, with someadditional impact from supply constraints. For service provider and related products, we expect revenue of approximately $17 million and, while it reflects our focus on optimizing contribution profits, this would represent an approximate 28% year over year decline for this category. Taking these factors into account, weexpect fourth-quarter net revenue of $160 million to $175 million. Turning to profitability, we anticipate approximately 150 basis points of consolidated gross margin pressure in the fourth quarter compared to the prior quarter,primarily driven by rising memory costs and increasing transportation costs associated with our production recovery efforts. While our pricing actions and cost mitigation efforts have offset the rising component cost headwinds within the Enterprise business, we expect elevated component costs to continue weighing onmargins within the Consumer business in the fourth quarter. In addition, ongoing manufacturing challenges could affect our product mix and the timing of shipments, creating further uncertainty around near-term gross margin performance. Taking these factors into account, we expect fourth-quarter GAAPoperating margin to be in the range of (8.7)% to (5.7)% and non-GAAP operating margin to be in the range of 0% to 3%. Our GAAP tax expense is expected to be in the range of a benefit of $0.5 million to an expense of $0.5 million, and our non-GAAP tax expense is expected to be in the range of zero to $1.0 million for thefourth quarter of 2026.” A reconciliation between the Business Outlook on a GAAP and non-GAAP basis is provided in the following table: Three months ending December 31, 2026 (In millions, except for percentage data) Operating Margin Rate Tax Expense GAAP (8.7)% - (5.7)% $(0.5) - $0.5Estimated adjustments for: Stock-based compensation expense 6.3% -Amortization of intangible assets 0.8% - Restructuring and other charges 1.6% -Non-GAAP tax adjustments - $0.5 Non-GAAP 0.0% - 3.0% $0.0 - $1.0 Business outlook does not include estimates for any currently unknown income and expense items which, by their nature, could arise late in a quarter, including: litigation reserves, net; acquisition-related charges; impairment charges; restructuring and other charges and discrete tax benefits or detriments that cannot beforecasted (e.g., windfalls or shortfalls from equity awards or items related to the resolution of uncertain tax positions). New material income and expense items such as these could have a significant effect on our guidance and future GAAP results. Investor Conference Call / Webcast Details NETGEAR will review the third quarter results and discuss management's expectations for the fourth quarter of 2026 today, Wednesday, November 4, 2026, at 5p.m. ET (2 p.m. PT). The toll-free dial-in number for the live audio call is (833) 461-5787. The international dial-in number for the live audio call is (585) 542-9983. The conference ID for the call is 677 851 425. A live webcast of the conference call will be available on NETGEAR's Investor Relations website athttp://investor.netgear.com. A replay of the call will be available via the web at http://investor.netgear.com. About NETGEAR, Inc. Founded in 1996 and headquartered in the USA, NETGEAR® (NASDAQ: NTGR) is a global leader in innovative networking technologies for businesses, homes, and service providers. NETGEAR delivers a wide range of award-winning, intelligent solutions designed to unleash the full potential of connectivity and powerextraordinary experiences. For businesses, NETGEAR offers reliable, easy-to-use, high-performance networking solutions, including switches, routers, access points, software, and AV over IP technologies, tailored to meet the diverse needs of small and medium enterprises. © 2026 NETGEAR, Inc. NETGEAR and the NETGEAR logo are trademarks or registered trademarks of NETGEAR, Inc. and its affiliates in the United States and/or other countries. Other brand and product names are trademarks or registered trademarks of their respective holders. The information contained hereinis subject to change without notice. NETGEAR shall not be liable for technical or editorial errors or omissions contained herein. All rights reserved. 1 1
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Source: NETGEAR-F NETGEAR, INC.CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)(Unaudited) September 27, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 178,420 $ 209,904 Short-term investments 63,672 113,132 Accounts receivable, net 156,357 142,045 Inventories 169,366 176,456 Prepaid expenses and other current assets 38,742 31,745 Total current assets 606,557 673,282 Property and equipment, net 24,188 26,001 Operating lease right-of-use assets 28,887 36,715 Intangible assets, net 34,228 38,480 Goodwill 45,022 45,022 Other non-current assets 16,376 16,771 Total assets $ 755,258 $ 836,271 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 49,272 $ 43,749 Accrued employee compensation 21,414 34,731 Other accrued liabilities 147,769 144,028 Deferred revenue 25,207 26,904 Income taxes payable 1,207 809 Total current liabilities 244,869 250,221 Non-current income taxes payable 7,621 7,176 Non-current operating lease liabilities 31,782 41,016 Other non-current liabilities 32,516 40,035 Total liabilities 316,788 338,448 Stockholders’ equity: Preferred stock: $0.001 par value; 5,000,000 shares authorized; none issued or outstanding — — Common stock: $0.001 par value; 200,000,000 shares authorized; shares issued and outstanding: 26,676,847 as of September 27, 2026 and 27,943,198 as of December 31, 2025 27 28 Additional paid-in capital 1,068,880 1,036,545 Accumulated other comprehensive income (loss) (140) 196 Accumulated deficit (630,297) (538,946) Total stockholders’ equity 438,470 497,823 Total liabilities and stockholders’ equity $ 755,258 $ 836,271 NETGEAR, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share and percentage data)(Unaudited) Three Months Ended Nine Months Ended September 27, 2026 June 28, 2026 September 28, 2025 September 27, 2026 September 28, 2025 Net revenue $ 167,345 $ 168,562 $ 184,561 $ 494,726 $ 517,153 Cost of revenue 100,252 100,776 112,309 295,545 324,597 Gross profit 67,093 67,786 72,252 199,181 192,556 Operating expenses: Research and development 22,288 22,332 23,328 66,285 62,482 Sales and marketing 33,031 33,310 33,762 98,011 92,856 General and administrative 19,921 19,804 20,619 58,908 59,372 Litigation reserves, net — (1) 98 499 136 Restructuring and other charges 5,554 782 1,514 11,212 7,118 Total operating expenses 80,794 76,227 79,321 234,915 221,964
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Loss from operations (13,701) (8,441) (7,069) (35,734) (29,408) Other income, net 1,037 1,701 3,028 4,319 15,175 Loss before income taxes (12,664) (6,740) (4,041) (31,415) (14,233)Provision (benefit) for income taxes (390) 513 736 1,152 3,006 Net loss $ (12,274) $ (7,253) $ (4,777) $ (32,567) $ (17,239) Net loss per share Basic $ (0.45) $ (0.27) $ (0.17) $ (1.19) $ (0.60) Diluted $ (0.45) $ (0.27) $ (0.17) $ (1.19) $ (0.60) Weighted average shares used tocompute net loss per share: Basic 27,057 27,041 28,638 27,352 28,756 Diluted 27,057 27,041 28,638 27,352 28,756 NETGEAR, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)(Unaudited) Nine Months Ended September 27, 2026 September 28, 2025 Cash flows from operating activities: Net loss $ (32,567) $ (17,239) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 11,186 5,109 Stock-based compensation 28,060 20,979 Accretion of discounts and imputed interests, net 2,010 (970) Deferred income taxes 153 (214)Provision for excess and obsolete inventory 5,641 2,878 Other 82 (171)Changes in assets and liabilities: Accounts receivable, net (14,311) (3,670)Inventories 1,449 (6,901) Prepaid expenses and other assets (7,576) 1,329 Accounts payable 5,863 (936) Accrued employee compensation (13,316) 4,253 Other accrued liabilities 1,676 (10,093) Deferred revenue (1,501) (2,898)Income taxes payable 843 (9,365) Net cash used in operating activities (12,308) (17,909) Cash flows from investing activities: Purchases of short-term investments (40,197) (89,579)Proceeds from maturities of short-term investments 90,000 90,000 Purchases of property and equipment (6,696) (14,631)Purchases of long-term investments (60) (165) Payments made in connection with business acquisitions, net of cash acquired — (12,185) Net cash provided by (used in) investing activities 43,047 (26,560) Cash flows from financing activities: Repurchases of common stock, including excise tax (48,033) (35,662) Restricted stock unit withholdings (10,633) (11,758)Proceeds from exercise of stock options — 5,266 Proceeds from issuance of common stock under employee stock purchase plan 4,275 3,652 Principal payments on deferred purchase price for acquisitions (7,834) — Net cash used in financing activities (62,225) (38,502) Net decrease in cash and cash equivalents and restricted cash (31,486) (82,971) Cash and cash equivalents and restricted cash, at beginning of period 212,006 288,551 Cash and cash equivalents and restricted cash, at end of period $ 180,520 $ 205,580 Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets Cash and cash equivalents at end of period $ 178,420 $ 203,480 Restricted cash included within other non-current assets at end of period 2,100 2,100 Total cash, cash equivalents, and restricted cash at end of period shown in the condensedconsolidated statements of cash flows $ 180,520 $ 205,580 NETGEAR, INC.
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RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (In thousands, except percentage data)(Unaudited) STATEMENT OF OPERATIONS DATA: Three Months Ended Nine Months Ended September 27, 2026 June 28, 2026 September 28, 2025 September 27, 2026 September 28, 2025 GAAP gross profit $ 67,093 $ 67,786 $ 72,252 $ 199,181 $ 192,556 Amortization of intangible assets 1,415 1,416 180 4,249 180 Stock-based compensation expense 547 616 562 1,664 1,440 Non-GAAP gross profit $ 69,055 $ 69,818 $ 72,994 $ 205,094 $ 194,176 GAAP research and development $ 22,288 $ 22,332 $ 23,328 $ 66,285 $ 62,482 Stock-based compensation expense (1,535) (1,557) (1,483) (4,195) (3,075) Acquisition related expenses (244) (244) (286) (732) (286) Non-GAAP research and development $ 20,509 $ 20,531 $ 21,559 $ 61,358 $ 59,121 GAAP sales and marketing $ 33,031 $ 33,310 $ 33,762 $ 98,011 $ 92,856 Amortization of intangible assets (1) (2) — (4) — Stock-based compensation expense (2,743) (2,712) (2,450) (7,720) (5,579) Non-GAAP sales and marketing $ 30,287 $ 30,596 $ 31,312 $ 90,287 $ 87,277 GAAP general and administrative $ 19,921 $ 19,804 $ 20,619 $ 58,908 $ 59,372 Stock-based compensation expense (5,010) (5,135) (4,313) (14,481) (10,885) Acquisition related expenses — — — — (705) Non-GAAP general and administrative $ 14,911 $ 14,669 $ 16,306 $ 44,427 $ 47,782 GAAP total operating expenses $ 80,794 $ 76,227 $ 79,321 $ 234,915 $ 221,964 Amortization of intangible assets (1) (2) — (4) — Stock-based compensation expense (9,288) (9,404) (8,246) (26,396) (19,539) Acquisition related expenses (244) (244) (286) (732) (991)Restructuring and other charges (5,554) (782) (1,514) (11,212) (7,118) Litigation reserves, net — 1 (98) (499) (136) Non-GAAP total operating expenses $ 65,707 $ 65,796 $ 69,177 $ 196,072 $ 194,180 GAAP operating income (loss) $ (13,701) $ (8,441) $ (7,069) $ (35,734) $ (29,408) Amortization of intangible assets 1,416 1,418 180 4,253 180 Stock-based compensation expense 9,835 10,020 8,808 28,060 20,979 Acquisition related expenses 244 244 286 732 991 Restructuring and other charges 5,554 782 1,514 11,212 7,118 Litigation reserves, net — (1) 98 499 136 Non-GAAP operating income (loss) $ 3,348 $ 4,022 $ 3,817 $ 9,022 $ (4) GAAP other income, net $ 1,037 $ 1,701 $ 3,028 $ 4,319 $ 15,175 Gain/loss on investments and others 72 32 42 82 (4,869) Non-GAAP other income, net $ 1,109 $ 1,733 $ 3,070 $ 4,401 $ 10,306 NETGEAR, INC. RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED)(In thousands, except per share data) (Unaudited)STATEMENT OF OPERATIONS DATA (CONTINUED): Three Months Ended Nine Months Ended September 27, 2026 June 28, 2026 September 28, 2025 September 27, 2026 September 28, 2025 GAAP net income (loss) $ (12,274) $ (7,253) $ (4,777) $ (32,567) $ (17,239) Amortization of intangible assets 1,416 1,418 180 4,253 180 Stock-based compensation expense 9,835 10,020 8,808 28,060 20,979 Acquisition related expenses 244 244 286 732 991 Restructuring and other charges 5,554 782 1,514 11,212 7,118 Litigation reserves, net — (1) 98 499 136 Gain/loss on investments and others 72 32 42 82 (4,869) Non-GAAP tax adjustments (1,186) (867) (2,692) (2,381) (1,695)
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Non-GAAP net income (loss) $ 3,661 $ 4,375 $ 3,459 $ 9,890 $ 5,601 NET INCOME (LOSS) PER DILUTEDSHARE: GAAP net income (loss) per diluted share$ (0.45) $ (0.27) $ (0.17) $ (1.19) $ (0.60)Amortization of intangible assets 0.05 0.05 0.01 0.15 0.01 Stock-based compensation expense 0.36 0.36 0.30 1.00 0.69 Acquisition related expenses 0.01 0.01 0.01 0.03 0.03 Restructuring and other charges 0.20 0.03 0.05 0.40 0.24 Litigation reserves, net — — — 0.02 — Gain/loss on investments and others — — — — (0.16)Non-GAAP tax adjustments (0.04) (0.02) (0.08) (0.06) (0.02) Non-GAAP net income (loss) per diluted share $ 0.13 $ 0.16 $ 0.12 $ 0.35 $ 0.19 Shares used in computing GAAP net income (loss) per diluted share 27,057 27,041 28,638 27,352 28,756 Shares used in computing non-GAAP net income (loss) per diluted share 27,667 27,881 29,782 28,186 30,219 The per share reconciliation of GAAP to non-GAAP may not aggregate due to both calculations utilizing a different share basis. The net loss per diluted share calculation uses a lower share count as it excludes potentially dilutive shares included in the net income per diluted share calculation. NETGEAR, INC. SUPPLEMENTAL FINANCIAL INFORMATION(In thousands, except per share data, DSO, inventory turns, weeks of channel inventory, headcount and percentage data) (Unaudited) Three Months Ended September 27, 2026 June 28, 2026 March 29, 2026 December 31, 2025 September 28, 2025 Cash, cash equivalents and short-terminvestments $ 242,092 $ 267,879 $ 296,509 $ 323,036 $ 326,383 Cash, cash equivalents and short-terminvestments per diluted share $ 8.75 $ 9.61 $ 10.33 $ 10.97 $ 10.96 Accounts receivable, net $ 156,357 $ 152,820 $ 142,155 $ 142,045 $ 159,880 Days sales outstanding (DSO) 85 83 79 73 79 Inventories $ 169,366 $ 174,933 $ 169,305 $ 176,456 $ 166,561Ending inventory turns 2.4 2.3 2.2 2.5 2.7 Weeks of channel inventory: U.S. retail channel 13.1 12.6 11.5 11.0 11.9U.S. distribution channel 3.1 4.0 5.0 5.0 3.5 EMEA distribution channel 5.2 5.6 4.8 4.6 5.5APAC distribution channel 8.9 10.9 12.7 13.7 8.3 Deferred revenue (current and non- current) $ 29,609 $ 29,449 $ 30,224 $ 31,110 $ 32,464 Headcount 819 822 786 784 753Non-GAAP diluted shares 27,667 27,881 28,701 29,457 29,782 NET REVENUE BY GEOGRAPHY Three Months Ended Nine Months Ended September 27, 2026 June 28, 2026 September 28, 2025 September 27, 2026 September 28, 2025 Americas $ 115,745 69% $ 116,526 69% $ 128,085 69% $ 338,134 68% $ 352,125 68% EMEA 33,074 20% 36,423 22% 36,936 20% 102,972 21% 103,440 20%APAC 18,526 11% 15,613 9% 19,540 11% 53,620 11% 61,588 12% Total $ 167,345 100% $ 168,562 100% $ 184,561 100% $ 494,726 100% $ 517,153 100% SERVICE PROVIDER NET REVENUE Three Months Ended Nine Months Ended Consumer Segment September 27, 2026 June 28, 2026 September 28, 2025 September 27, 2026 September 28, 2025 Service provider net revenue $ 20,795 $ 23,777 $ 26,975 $ 64,804 $ 83,900 Other 55,832 55,831 66,748 166,448 180,603 Total Consumer segment net revenue $ 76,627 $ 79,608 $ 93,723 $ 231,252 $ 264,503 Service provider net revenue includes cable net revenue sold from retail. Prior-period amounts have been recast to conform to the current-period presentation. NETGEAR, INC. SUPPLEMENTAL FINANCIAL INFORMATION (CONTINUED) 1 1 1 1
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(In thousands, except percentage data) (Unaudited)SEGMENT DATA: Three Months Ended September 27, 2026 June 28, 2026 September 28, 2025 Enterprise Consumer Total Enterprise Consumer Total Enterprise Consumer Total Net revenue $ 90,718 $ 76,627 $ 167,345 $ 88,954 $ 79,608 $ 168,562 $ 90,838 $ 93,723 $ 184,561 Segment cost of revenue 42,487 55,803 40,854 57,890 44,486 67,081 Segment gross profit 48,231 20,824 69,055 48,100 21,718 69,818 46,352 26,642 72,994 Amortization of intangible assets (1,415) (1,416) (180) Stock-based compensation expense (547) (616) (562) Total Consolidated gross profit $ 67,093 $ 67,786 $ 72,252 Segment operating expenses 25,980 22,246 25,050 23,452 23,737 24,790 Contribution income (loss) 22,251 (1,422) 20,829 23,050 (1,734) 21,316 22,615 1,852 24,467 Corporate and unallocated costs (17,481) (17,294) (20,650) Amortization of intangible assets (1,416) (1,418) (180)Stock-based compensation expense (9,835) (10,020) (8,808) Acquisition related expenses (244) (244) (286)Restructuring and other charges (5,554) (782) (1,514) Litigation reserves, net - 1 (98) Other income, net 1,037 1,701 3,028 Income (loss) before income taxes $ (12,664) $ (6,740) $ (4,041) Nine Months Ended September 27, 2026 September 28, 2025 Enterprise Consumer Total Enterprise Consumer Total Net revenue $ 263,474 $ 231,252 $ 494,726 $ 252,650 $ 264,503 $ 517,153 Segment cost of revenue 122,999 166,633 131,052 191,925 Segment gross profit 140,475 64,619 205,094 121,598 72,578 194,176 Amortization of intangible assets (4,249) (180) Stock-based compensation expense (1,664) (1,440) Total Consolidated gross profit $ 199,181 $ 192,556 Segment operating expenses 75,117 67,901 65,386 68,904 Contribution income (loss) 65,358 (3,282) 62,076 56,212 3,674 59,886 Corporate and unallocated costs (53,054) (59,890)Amortization of intangible assets (4,253) (180) Stock-based compensation expense (28,060) (20,979)Acquisition related expenses (732) (991) Restructuring and other charges (11,212) (7,118)Litigation reserves, net (499) (136) Other income, net 4,319 15,175 Income (loss) before income taxes $ (31,415) $ (14,233) NETGEAR Investor Relations Steven C. Pelayo, CFA Source: NETGEAR, Inc.