NETGEAR Reports 18.5% Revenue Growth to $170.5 Million in Q2 Fiscal 2025

NETGEAR, Inc. reported a significant increase in financial performance for the second quarter of fiscal 2025, with net revenue reaching $170.5 million, up 18.5% from $143.9 million in the same period last year. The company attributed this growth primarily to improved inventory optimization efforts with channel partners, which led to a $22.8 million increase in the NETGEAR for Business segment and a $7.8 million increase in the Home Networking segment. However, the Mobile segment experienced a decline of $3.9 million. Gross profit for the quarter was $64.0 million, resulting in a gross margin of 37.5%, a notable improvement from 22.1% in the prior year, driven by a favorable product mix and reduced sales returns.

In terms of profitability, NETGEAR reported a net loss of $6.4 million, or $(0.22) per share, compared to a net loss of $45.2 million, or $(1.56) per share, in the same quarter last year. The operating loss decreased significantly to $9.5 million from $46.9 million, reflecting the impact of higher revenues and improved gross margins. The company also recorded other income of $4.0 million, contributing to a loss before income taxes of $5.6 million, down from $44.1 million in the previous year.

Strategically, NETGEAR completed the acquisition of Exium Inc. on June 16, 2025, for approximately $12.5 million, which is expected to enhance its cloud-based networking and security offerings. This acquisition aligns with NETGEAR's focus on expanding its product portfolio and improving service delivery for small and medium-sized businesses. Additionally, the company has restructured its business segments, separating the Connected Home segment into Mobile and Home Networking, effective January 1, 2025, to better manage operations and capitalize on growth opportunities.

Operationally, NETGEAR's customer base and engagement metrics showed positive trends, with net revenue increases across all geographic regions, particularly in the Americas. The company reported a total of 29,008,557 outstanding shares as of July 25, 2025. However, it also noted challenges in the Mobile segment, where sales have declined as the company awaits new product introductions. Looking ahead, NETGEAR anticipates continued revenue growth in the NETGEAR for Business segment, driven by strong demand for its Pro AV managed switches, while the Home Networking segment is expected to benefit from an expanded product portfolio, including new WiFi 7 offerings.

In summary, NETGEAR's second-quarter results reflect a strong recovery in revenue and profitability, driven by strategic initiatives and operational improvements. The company remains focused on leveraging its acquisitions and product innovations to enhance its market position, despite facing challenges in certain segments and the broader economic environment.