What changed in this filing

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Item 1. Financial Statements

2026-05-01 compared with 2025-10-31 · 224 added, 334 removed, 469 unchanged (54% of the section changed)

3 unchanged sentences

(In thousands)

September 28, 2025

March 29, 2026

December 31, 2025

2 unchanged sentences

Short-term investments

Accounts receivable, net of allowance for doubtful accounts of $ 591 and $ 507 as of September 28, 2025 and December 31, 2024, respectively

Accounts receivable, net of allowance for doubtful accounts of $ 461 and $ 466 as of March 29, 2026 and December 31, 2025, respectively

Prepaid expenses and other current assets

19 unchanged sentences

Additional paid-in capital

Accumulated other comprehensive income

Accumulated other comprehensive income (loss)

Accumulated deficit

6 unchanged sentences

Three Months Ended

Nine Months Ended

September 28, 2025

September 29, 2024

September 28, 2025

September 29, 2024

March 29, 2026

March 30, 2025

Cost of revenue

6 unchanged sentences

Total operating expenses

Income (loss) from operations

Loss from operations

Other income, net

Income (loss) before income taxes

Loss before income taxes

Provision for income taxes

Net income (loss)

Net income (loss) per share

Weighted average shares used to compute net income (loss) per share:

Net loss per share

Weighted average shares used to compute net loss per share:

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3 unchanged sentences

Three Months Ended

Nine Months Ended

September 28, 2025

September 29, 2024

September 28, 2025

September 29, 2024

March 29, 2026

March 30, 2025

Net income (loss)

3 unchanged sentences

Other comprehensive income (loss), before tax

Tax benefit (provision) related to derivatives

Other comprehensive income (loss), net of tax

Comprehensive income (loss)

Tax benefit related to derivatives

Other comprehensive loss, net of tax

Comprehensive loss

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

9 unchanged sentences

Stock-based compensation

Repurchase of common stock

Repurchase of common stock, including exercise tax

Restricted stock unit withholdings

1 unchanged sentence

Balance as of March 29, 2026

Change in unrealized gains and losses on available-for-sale investments, net of tax

Change in unrealized gains and losses on derivatives, net of tax

Stock-based compensation

Repurchase of common stock

Restricted stock unit withholdings

Issuance of common stock under stock-based compensation plans

Balance as of June 29, 2025

Change in unrealized gains and losses on available-for-sale investments, net of tax

Change in unrealized gains and losses on derivatives, net of tax

Stock-based compensation

Repurchase of common stock

Restricted stock unit withholdings

Issuance of common stock under stock-based compensation plans

Balance as of September 28, 2025

Comprehensive

5 unchanged sentences

Stock-based compensation

Repurchase of common stock

Repurchase of common stock, including exercise tax

Restricted stock unit withholdings

1 unchanged sentence

Balance as of March 30, 2025

Change in unrealized gains and losses on available-for-sale investments, net of tax

Change in unrealized gains and losses on derivatives, net of tax

Stock-based compensation

Repurchase of common stock

Restricted stock unit withholdings

Issuance of common stock under stock-based compensation plans

Balance as of June 30, 2024

Change in unrealized gains and losses on available-for-sale investments, net of tax

Change in unrealized gains and losses on derivatives, net of tax

Stock-based compensation

Repurchase of common stock

Restricted stock unit withholdings

Issuance of common stock under stock-based compensation plans

Balance as of September 29, 2024

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

Nine Months Ended

September 28,

September 29,

Three Months Ended

Cash flows from operating activities:

Net income (loss)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

Stock-based compensation

Gain on investments, net

Accretion of discounts and imputed interests, net

Deferred income taxes

14 unchanged sentences

Purchases of long-term investments

Payments made in connection with business acquisitions, net of cash acquired

Net cash used in investing activities

Cash flows from financing activities:

Repurchases of common stock

Repurchases of common stock, including exercise tax

Restricted stock unit withholdings

1 unchanged sentence

Proceeds from issuance of common stock under employee stock purchase plan

Principal payments on deferred purchase price of intangible asset acquisition

Net cash used in financing activities

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents, at beginning of period

Net decrease in cash and cash equivalents and restricted cash

Cash and cash equivalents and restricted cash, at beginning of period

Cash and cash equivalents and restricted cash, at end of period

Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets

Cash and cash equivalents at end of period

Restricted cash included within other non-current assets at end of period

Total cash, cash equivalents, and restricted cash at end of period shown in the condensed consolidated statements of cash flows

Non-cash investing and financing activities:

Unpaid property and equipment

Intangible assets acquired with deferred consideration

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4 unchanged sentences

(“NETGEAR” or the “Company”) was incorporated in Delaware in January 1996.

The Company is a global leader in innovative and advanced networking technologies for businesses, homes, and service providers.

The Company delivers a wide range of intelligent solutions designed to unleash the full potential of connectivity.

Its highly differentiated connected solutions range from switching and wireless products to augment business networks and audio and video (“AV”) over Ethernet for Pro AV applications to the good, better, and best WiFi solutions, security and support services to protect and enhance business and home networks.

Additionally, the Company continually invests in research and development to create new technologies and services and to capitalize on technological inflection points and trends, such as audio and video over Ethernet, multi-Gigabit internet service to homes, WiFi 7, eSIM and future technologies.

Its product line helps to create and extend wired and wireless networks as well as devices that attach to the network, such as services that complement and enhance its product line offerings.

These products are available in multiple configurations to address the changing needs of our customers in each geographic region.

The Company sells networking products through multiple sales channels worldwide, including traditional retailers, online retailers, wholesale distributors, direct market resellers (“DMRs”), value-added resellers (“VARs”), broadband service providers and its direct online store at www.netgear.com .

The Company is a global provider of networking technologies for businesses, homes, and service providers.

The Company delivers a wide range of networking hardware, software, and services designed to enable reliable connectivity and security.

Its connected solutions range from switching and wireless products that support audio and video (“AV”) over Ethernet for Pro AV applications and business networks to WiFi networking solutions, security and support services for enterprise and home networks.

Additionally, the Company continually invests in research and development to create new technologies and services and to address technological trends such as AV over Ethernet, multi-Gigabit connectivity, WiFi 7, eSIM and future technologies.

Its product line enables the creation and extension of wired and wireless networks and includes services that complement and enhance our hardware offerings.

These products are available in multiple configurations to address the changing needs of our customers across geographic regions.

The Company sells networking products through multiple sales channels worldwide, including traditional retailers, online retailers, wholesale distributors, direct market resellers (“DMRs”), managed service providers (“MSPs”), broadband service providers and its direct online store at www.netgear.com .

The accompanying unaudited condensed consolidated financial statements include the accounts of NETGEAR, Inc.

1 unchanged sentence

They have been prepared in accordance with established guidelines for interim financial reporting and the instructions of Form 10-Q and Article 10 of Regulation S-X.

All significant intercompany balances and transactions have been eliminated in consolidation.

All intercompany balances and transactions have been eliminated in consolidation.

The balance sheet dated December 31, 2025, has been derived from audited financial statements at such date.

9 unchanged sentences

These estimates may change, as new events occur and additional information is obtained, and are recognized in the condensed consolidated financial statements as soon as they become known.

Actual results could differ materially from those estimates and operating results for the three and nine months ended September 28, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025, or any future period.

Actual results could differ materially from those estimates and operating results for the three months ended March 29, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026, or any future period.

The Company has two reportable segments:

Enterprise and Consumer.

During 2025, the Company realigned its reportable segments twice.

Effective the first quarter of 2025, the Company separated the former Connected Home segment into Home Networking and Mobile, resulting in three reportable segments during the first three fiscal quarters of 2025:

NETGEAR for Business, Home Networking, and Mobile.

Beginning in the fourth quarter of 2025, the Company combined Home Networking and Mobile into a single Consumer segment and renamed NETGEAR for Business as Enterprise, resulting in the current two reportable segments.

These realignments did not affect previously reported consolidated net revenue, income

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

As previously announced, in the first fiscal quarter of 2025, the Company realigned its business structure by separating the Connected Home segment into two distinct reportable segments:

Home Networking and Mobile.

This realignment is intended to further strengthen the Company's operational and financial management and enable further focus on growth opportunities while maintaining financial discipline.

Effective January 1, 2025, the Company operates and reports in three segments:

Enterprise (formerly known as NETGEAR for Business), Home Networking, and Mobile.

The prior-year segment financial information has been recast to conform to the current-year presentation.

None of the changes impacted previously reported consolidated net revenue, income (loss) from operations, net income (loss) per share, total assets, or stockholders’ equity.

In addition, a s the goodwill balance was zero for the Connected Home segment before the segment realignment, no goodwill has been allocated to the Home Networking and Mobile segments, and the entire goodwill balance of $ 36.3 million prior to the segment realignment in the first quarter of 2025 remained in the Enterprise segment.

An additional $ 9.5 million of goodwill was recorded in the Enterprise segment during the nine months ended September 28, 2025 in connection with the acquisition of Exium Inc.

Refer to Note 4, Business Acquisition and Note 12, Segment Information for additional information.

(loss) from operations, net income (loss) per share, total assets, or stockholders' equity.

Prior-period segment information has been recast to conform to the current presentation.

Refer to Note 12, Segment Information for additional information.

Summary of Signif icant Accounting Policies

2 unchanged sentences

Accounting Pronouncements Recently Adopted

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures”, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

ASU 2023-07 is effective for the Company for the year ended December 31, 2024 and early adoption is permitted.

The Company adopted the new standard effective December 31, 2024 on a retrospective basis.

The adoption did not have any impact on the Company’s financial position, results of operations or cash flows.

Refer to Note 12, Segment Information, for details.

In July 2025, the FASB issued ASU 2025-05, "Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets", which introduces a practical expedient permitting entities to assume that current economic conditions as of the balance sheet date do not change over the remaining life of current accounts receivable and contract assets arising from transactions within the scope of ASC 606, including assets acquired in a business combination.

The Company adopted ASU 2025-05 effective January 1, 2026 on a prospective basis.

The adoption of this standard did not have a material impact on the Company's financial position, results of operations, or cash flows.

Accounting Pronouncements Not Yet Effective

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740):

Improvements to Income Tax Disclosures”, which enhances annual income tax disclosures.

ASU 2023-09 requires the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold.

ASU 2023-09 also requires the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions.

ASU 2023-09 is effective for the Company for the annual reporting period of the year ending December 31, 2025 and early adoption is permitted.

The guidance allows for adoption using either a prospective or retrospective transition method.

The Company is evaluating the impact that the updated standard will have on its financial statement disclosures.

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

4 unchanged sentences

The Company is evaluating the impact that the updated standard will have on its financial statement disclosures.

In July 2025, the FASB issued ASU 2025-05, “Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets”, which introduces a practical expedient permitting entities to assume that current economic conditions as of the balance sheet date do not change over the remaining life of current accounts receivable and contract assets arising from transactions within the scope of ASC 606, including assets acquired in a business combination.

ASU2025-05 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2026 on a prospective basis.

Early adoption is permitted.

The Company is evaluating the impact that the updated standard will have on its financial position, results of operations or cash flow.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

In September 2025, the FASB issued ASU 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40):

3 unchanged sentences

The Company is evaluating the impact that the updated standard will have on its financial position, results of operations or cash flow.

In November 2025, the FASB issued ASU 2025-09, "Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements", which amends existing hedge accounting guidance to better align financial reporting with the economics of an entity’s risk management activities.

ASU 2025-09 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2027 on a prospective basis.

Early adoption is permitted.

The Company is evaluating the impact that the updated standard will have on its financial statement disclosures.

With the exception of the new standards discussed above, there have been no other new accounting pronouncements that have significance, or potential significance, to the Company’s financial position, results of operations and cash flows.

Business Acquisition

On June 16, 2025, the Company acquired Exium Inc.

("Exium"), a cybersecurity company focused on Secure Access Service Edge (SASE) platforms, for total purchase consideration of $ 12.6 million.

The acquisition was accounted for using the acquisition method, with $ 8.7 million allocated to goodwill (within the Enterprise segment) and $ 4.3 million to intangible assets, of which $ 4.2 million related to developed technology .

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

3 unchanged sentences

Non-cancellable backlog includes goods for which customer purchase orders have been accepted, that are scheduled or in the process of being scheduled for shipment, and that are not yet invoiced.

The following table summarizes estimated revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of September 28, 2025 :

The following table summarizes estimated revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of March 29, 2026:

(In thousands)

6 unchanged sentences

Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations.

Contract liabilities are mainly classified as Deferred revenue on the unaudited condensed consolidated balance sheets.

Contract liabilities are classified as Deferred revenue (current portion) and Other non-current liabilities (non-current portion) on the unaudited condensed consolidated balance sheets.

Payment terms vary by customer.

4 unchanged sentences

Balance Sheet Location

September 28, 2025

March 29, 2026

December 31, 2025

5 unchanged sentences

Other non-current liabilities

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

The difference in the balances of the Company’s contract assets and liabilities as of September 28, 2025 and December 31, 2024, primarily results from the timing difference between the Company's performance and the customer's payment.

During the nine months ended September 28, 2025 , $ 35.2 million of revenue was deferred primarily due to unsatisfied performance obligations for service contracts, $ 38.1 million of revenue was recognized for the satisfaction of performance obligations and $ 26.6 million of this recognized revenue was included in the contract liability balance at the beginning of the period.

The difference in the balances of the Company’s contract assets and liabilities as of March 29, 2026 and December 31, 2025, primarily results from the timing difference between the Company's performance and the customer's payment.

During the three months ended March 29, 2026 , $ 11.3 million of revenue was deferred primarily due to unsatisfied performance obligations for service contracts, $ 12.2 million of revenue was recognized for the satisfaction of performance obligations and $ 10.6 million of this recognized revenue was included in the contract liability balance at the beginning of the period.

During the three months ended Ma rch 30, 2025, $ 12.1 million of revenue was deferred primarily due to unsatisfied performance obligations for service contracts, $ 12.2 million of revenue was recognized for the satisfaction of performance obligations and $ 10.8 million of this recognized revenue was included in the contract liability balance at the beginning of the period.

There were no significant changes in estimates during the period that would affect the contract balances.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Disaggregation of Revenue

In the following tables, net revenue is disaggregated by geographic region and sales channel.

In the following tables, net revenue is disaggregated by geographic region and by product category, distinguishing the Company's service provider and related products from its other products .

The Company conducts business across three geographic regions:

2 unchanged sentences

The tables also include reconciliations of the disaggregated revenue by reportable segment.

As disclosed above, effective January 1, 2025, the Company operates and reports in three segments:

Enterprise, Home Networking and Mobile.

The prior-year segment financial information has been recast to conform to the current-year presentation.

As disclosed above, effective in the fourth quarter of 2025, the Company operates and reports in two segments:

Enterprise (formerly NETGEAR for Business), and Consumer (comprising the former Home Networking and Mobile segments).

Prior-period segment information has been recast to conform to the current presentation.

Sales and usage-based taxes are excluded from net revenue.

Three Months Ended

September 28, 2025

September 29, 2024

(In thousands)

Home Networking

Geographic regions (1) :

Sales channels:

Service provider

Non-service provider

Nine Months Ended

September 28, 2025

September 29, 2024

March 29, 2026

March 30, 2025

(In thousands)

Home Networking

Geographic regions (1) :

Sales channels:

Service provider

Product categories:

Service provider and related products (2)

Non-service provider

1 unchanged sentence

(1) No i ndividual foreign country represented more than 10 % of the Company ’ s total net revenue in the periods presented.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Business Acquisition

On June 16, 2025, the Company acquired Exium Inc.

(“Exium”), a cybersecurity company focused on developing and delivering Secure Access Service Edge (SASE) platforms, as part of its continued investment in cloud-based solutions for advanced business connectivity.

The Company believes that Exium’s products and expertise will enhance its network offering by adding an integrated SASE platform tailored for small and medium enterprises, which strategically aligns with its existing products, teams, and target markets.

The preliminary total purchase consideration was $ 12.6 million, which consisted of $ 12.1 million in cash paid in the second quarter of 2025, and $ 0.5 million in acquisition holdback for potential purchase price adjustments and indemnification, if any.

In addition, $ 2.4 million may be payable as retention compensation.

The acquisition qualified as a business combination and was accounted for using the acqu isition method.

The results of Exium have been included in the unaudited condensed consolidated financial statements since the date of acquisition.

Pro forma results of operations for the acquisition are not presented as the financial impact to the Company's consolidated results of operations is not material.

Of the total preliminary purchase consideration, $ 9.5 million was allocated to goodwill, $ 4.2 million to developed technology platform, and $ 1.1 million to deferred tax liability.

All the other assets acquired and liabilities assumed were immaterial.

The goodwill recorded on the acquisition of Exium is not deductible for U.S.

federal or U.S.

state income tax purposes.

The goodwill recognized was allocated to the Company's Enterprise segment, and it is primarily attributable to expected synergies, and future growth opportunities associated with Exium’s cybersecurity platform.

Developed technology platform of $ 4.2 million was valued using the multi-period excess earnings method under the income approach, which discounted the asset's projected future cash flows at 28.0 %.

The provisional amortization period is seven years .

In co nnection with the acquisition, the Company recorded net deferred tax liabilities of $ 1.1 million, resulting from the recognition of $ 4.3 million in gross temporary differences related to the book basis of the intangible assets for which the Company has no tax basis.

(2) Service provider and related products net revenue in Consumer Segment included cable net revenue sold through retail.

Prior-period amounts have been recast to conform to the current-period presentation.

Balance Sheet Components

Available-for-sale investments

Amortized cost and estimated fair market value of investments classified as available-for-sale, excluding cash equivalents, as of September 28, 2025 and December 31, 2024, were as follows:

September 28, 2025

Amortized cost and estimated fair market value of investments classified as available-for-sale, excluding cash equivalents, as of March 29, 2026 and December 31, 2025, were as follows:

March 29, 2026

(In thousands)

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treasury securities

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

The contractual maturities on the U.S.

treasury securities as of September 28, 2025 are all due within one year.

Accrued interest receivable as of September 28, 2025 was $ 1.4 million and was recorded within P repaid expenses and other current assets on the unaudited condensed consolidated balance sheet.

There we re no investments classified as ava ilable-for-sale in a continuous unrealized loss position for which an allowance for credit losses was not recorded as of September 28, 2025 and December 31, 2024.

In the three and nine months ended September 28, 2025 and September 29, 2024, no unrealized losses on available-for-sale securities were recognized in income.

The Company does not intend to sell, and it is unlikely that it will be require d to sell the investments in an unrealized loss position prior to their anticipated recovery.

There were no other-than-temporary impairments for these securities during the three and nine months ended September 28, 2025 and September 29, 2024.

treasury securities as of March 29, 2026 are all due within one year.

Accrued interest receivable as of March 29, 2026 was $ 1.4 million and was recorded within P repaid expenses and other current assets on the unaudited condensed consolidated balance sheet.

There were no investments classified as available-for-sale in a continuous unrealized loss position for which an allowance for credit losses was not recorded as of March 29, 2026 and December 31, 2025.

In the three months ended March 29, 2026 and March 30, 2025 , no unrealized losses on available-for-sale securities were recognized in income.

The Company does not intend to sell, and it is unlikely that it will be require d to sell the investments in

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

an unrealized loss position prior to their anticipated recovery.

There were no other-than-temporary impairments for these securities during the three months ended March 29, 2026 and March 30, 2025.

Refer to Note 13, Fair Value Measurements, for detailed disclosures regarding fair value measurements.

(In thousands)

September 28, 2025

March 29, 2026

December 31, 2025

1 unchanged sentence

Finished goods

The Company records provisions for ex cess and obsolete inventory based on assumptions about future demand and market conditions and the amounts incurred were $ 0.7 million and $ 2.9 million for the three and nine months ended September 28, 2025 , respectively, and $ 2.1 million and $ 5.1 million for the three and nine months ended September 29, 2024, respectively.

The Company records provisions for excess and obsolete inventory based on assumptions about future demand and market conditions and the amounts incurred were $ 1.9 m illion and $ 1.4 million for the three months ended March 29, 2026 and March 30, 2025, respectively.

While management believes the estimates and assumptions underlying its current forecasts are reasonable, there is a risk that additional charges may be necessary if current forecasts are greater than actual demand.

1 unchanged sentence

(In thousands)

September 28, 2025

March 29, 2026

December 31, 2025

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Accumulated depreciation

Intangible Assets, net

March 29, 2026

December 31, 2025

(In thousands)

Accumulated Impairment

In the fourth fiscal quarter of 2025, the Company acquired a perpetual software license related to its managed switch products, which is included within Technology intangible assets.

The license is accounted for as a finite-lived intangible asset and is amortized on a straight-line basis over its estimated useful life of seven years.

The gross carrying amount of the software license intangible asset of $ 35.4 million includes the present value of fixed deferred payments, the present value of contingent consideration when probable and reasonably estimable, and amount recognized upon the extinguishments of an accrued liability.

Increases in intangible assets not related to the aforementioned software license pertain to the Exium business acquisition.

Refer to Note 3, Business Acquisition , for additional details.

Amortization of the intangible assets for the three months ended March 29, 2026 and March 30, 2025 was $ 1.4 million and zero , respectively.

The weighted remaining useful life for the intangible assets was approximately 6.6 years as of March

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Other non-current assets

(In thousands)

September 28, 2025

March 29, 2026

December 31, 2025

2 unchanged sentences

Restricted cash

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Long-term equity investments

Long-term investments

The Company’s long -term investments are primarily comprised of equity investments without readily determinable fair values and investments in limited partnership funds.

The carrying value of the equity investments without readily determinable fair values was $ 6.1 million as of September 28, 2025 and September 29, 2024 , respectively.

For such equity investments without readily determinable fair value still held at September 28, 2025 , there were no cumulative downward adjustments for price changes or impairment, and the cumulative upward adjustments for price changes was $ 0.3 million.

Investments in limited partnership funds amounted to $ 2.7 million as of September 28, 2025 , $ 2.4 million as of September 29, 2024 , and $ 2.3 million as of December 31, 2024 and December 31, 2023, respectively.

Other accrued liabilities

The carrying value of the equity investments without readily determinable fair values was $ 6.1 million as of March 29, 2026 and March 30, 2025 , respectively.

For such equity investments without readily determinable fair value still held at March 29, 2026 , there were no cumulative downward adjustments for price changes or impairment, and the cumulative upward adjustments for price changes was $ 0.3 million.

Investments in limited partnership funds amounted to $ 2.7 million as of March 29, 2026 , $ 2.4 million as of March 30, 2025 , and $ 2.6 million and $ 2.3 million as of December 31, 2025 and December 31, 2024, respectively.

Other current accrued liabilities

(In thousands)

September 28, 2025

March 29, 2026

December 31, 2025

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Freight and duty

(1) Inventory expected to be received from future sales returns amounted to $ 11.1 million and $ 15.1 million as of September 28, 2025 and December 31, 2024 , respectively.

Provisions to write down expected returned inventory to net realizable value amounted to $ 8.3 million and $ 9.0 million as of September 28, 2025 and December 31, 2024 , respectively.

Current deferred consideration (2)

(1) Inventory expected to be received from future sales returns amounted to $ 9.3 million and $ 10.8 million as of March 29, 2026 and December 31, 2025 , respectively.

Provisions to write down expected returned inventory to net realizable value amounted to $ 7.1 million and $ 7.9 million as of March 29, 2026 and December 31, 2025 , respectively.

(2) The balance represented current deferred consideration related to the acquisition of a perpetual software license.

Refer to “Intangible Assets, net” above for additional information.

Other non-current accrued liabilities

(In thousands)

March 29, 2026

December 31, 2025

Non-current deferred consideration (1)

Non-current deferred revenue

(1) The balance represented non-current deferred consideration related to the acquisition of a perpetual software license.

Refer to “Intangible Assets, net” above for additional information.

Derivative F inancial Instruments

1 unchanged sentence

dollar, the Company’s functional currency worldwide.

The Company executes currency forward contracts that typically mature in less than six months to m itigate its currency risk, in currencies including Australian dollars, British pounds, euros, Canadian dollars, and Japanese yen.

The Company executes currency forward contracts that typically mature in less than six months to m itigate its currency risk, in currencies including Australian dollars, British

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

pounds, euros, Canadian dollars, and Japanese yen.

The Company does not enter into derivatives transactions for trading or speculative purposes.

1 unchanged sentence

The Company enters into derivative contracts with high-quality financial institutions and limits the amount of credit exposure to any individual counterparty.

The Company typically exec utes ten cash flow hedges per quarter with maturities under six months and with an average USD notional amount of approximately $ 4.7 million that are designated as cash flow hedges.

The Company typically executes ten cash flow hedges per quarter with maturities under six months and with an average USD notional amount of approximately $ 4.4 million that are designated as cash flow hedges.

The Company enters into non-designated hedges that are generally expected to offset the changes in value of its net non-functional currency asset and liability position resulting from foreign exchange rate fluctuations.

The Company adjusts its non-designated hedges monthly and typically executes about eleven non-designated forwards per quarter with maturities less than three months and an average USD notional amount of approximately $ 3.0 million.

The Company adjusts its non-designated hedges monthly and typically executes about twelve non-designated forwards per quarter with maturities less than three months and an average USD notional amount of approximately $ 2.9 million.

Fair Value of Derivative Instruments

3 unchanged sentences

(In thousands)

September 28,

Derivatives not designated as hedging instruments

4 unchanged sentences

Other accrued liabilities

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Refer to Note 13, Fair Value Measurements for detailed disclosures regarding fair value measurements.

5 unchanged sentences

Potentially dilutive common shares are excluded from the computation of diluted net income (loss) per share when their effect is anti-dilutive.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Net income (loss) per share consisted of the following:

Three Months Ended

Nine Months Ended

(In thousands, except per share data)

September 28, 2025

September 29, 2024

September 28, 2025

September 29, 2024

Net income (loss)

March 29, 2026

March 30, 2025

Weighted average common shares – basic

1 unchanged sentence

Weighted average common shares – dilutive

Basic net income (loss) per share

Diluted net income (loss) per share

Basic net loss per share

Diluted net loss per share

Anti-dilutive employee stock-based awards, excluded

In come Taxes

The income tax provision for the three and nine months ended September 28, 2025 was $ 0.7 million, or an effective tax rate of ( 18.2 )%, and $ 3.0 million, or an effective tax rate of ( 21.1 )%, respectively.

The income tax provision for the three and nine months ended September 29, 2024 was $ 14.2 million, or an effective tax rate of 14.3 %, and $ 15.1 million, or an effective tax rate of 41.5 %, respectively.

Due to the Company’s full valuation allowance for U.S.

federal and state tax purposes, the changes in taxes for the three and nine months ended September 28, 2025, compared to the prior year periods, were primarily a result of the Company reporting $ 99.3 million and $ 36.3 million of pretax book income for the three and nine months ended September 29, 2024, respectively, and the current income tax implications of this income with no deferred tax benefit in the 2024 year as compared to the Company reporting $ 4.0 million and $ 14.2 million of pretax book loss for the three and nine months ended September 28, 2025 and the current income tax implications in the 2025 year with no deferred tax benefit.

The Company is subject to income taxes in the U.S.

and numerous foreign jurisdictions.

The future foreign tax rate could be affected by changes in the composition in earnings in countries with tax rates differing from the U.S.

federal rate.

The income tax provision for the three months ended March 29, 2026 and March 30, 2025, was $ 1.0 million, or an effective tax rate of ( 8.6 )%, and $ 1.4 million, or an effective tax rate of ( 30.4 )%, respectively.

The year-over-year change was primarily driven by increased losses in the United States and lower income in foreign jurisdictions during the first quarter of 2026 relative to the prior-year period.

The Company is under examination in various U.S.

and foreign jurisdictions.

The Company files income tax returns in the U.S.

federal jurisdiction as well as various state, local, and foreign jurisdictions.

Due to the uncertain nature of ongoing tax audits, the Company has recorded its liability for uncertain tax positions as part of its long-term liability as payments cannot be anticipated over the next twelve months.

The existing tax positions of the Company continue to generate an increase in the liability for uncertain tax positions.

The liability for uncertain tax positions

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

may be reduced for liabilities that are settled with taxing authorities or on which the statute of limitations could expire without assessment from tax authorities.

Due to the uncertain nature of ongoing tax audits, the Company has recorded its liability for uncertain tax positions as a long-term liability, as payments cannot be anticipated over the next twelve months.

The possible reduction in liabilities for uncertain tax positions in multiple jurisdictions in the next twelve months is approximately $ 1.4 million excluding the interest, penalties and the effect of any related deferred tax assets or liabilities.

The Company is currently under examination in various U.S.

and foreign jurisdictions.

The Company accounts for income taxes under an asset and liability approach.

Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year.

In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences resulting from different treatment for tax versus accounting for certain items, such as accruals and allowances not currently deductible for tax purposes.

The deferred tax assets and liabilities represent the future tax return consequences of these differences, which will either be taxable or deductible when assets and liabilities are recovered or settled, as well as operating loss carryforwards.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

These differences result in deferred tax assets and liabilities, which are included within the consolidated balance sheets.

The Company must then assess the likelihood that the Company’s deferred tax assets will be recovered from future taxable income and to the extent the Company believes that recovery is not more likely than not, the Company must establish a valuation allowance.

The Company’s assessment considers the recognition of deferred tax assets on a jurisdictional basis.

Accordingly, in assessing its future taxable income on a jurisdictional basis, the Company considers the effect of its transfer pricing policies on that income.

As of the period ended October 1, 2023, the Company determined that recovery of its U.S.

federal and state deferred tax assets was no longer more likely than not and established a full valuation allowance on those net assets, based on evaluation of all available evidence, including actual and anticipated business results.

Accordingly, the balance sheet net deferred tax assets from the U.S.

federal and state jurisdictions reported in “Other Non-current Assets” were reduced after the effect of establishing the valuation allowance.

The Company evaluated the current results as of the period ended September 28, 2025, coupled with the expectations for the remainder of the year, and determined that it continues to not be more likely than not that the deferred tax assets would be realized, and accordingly, has recorded no benefit for the forecasted tax loss for the three months ended September 28, 2025.

The One Big Beautiful Bill Act (“OBBBA”) was enacted on July 4, 2025 and the Company continues to evaluate the impact on its financial position.

The OBBBA is not currently expected to materially impact the Company’s effective tax rate or cash flows in the current fiscal year.

The Company maintains a full valuation allowance on its U.S.

federal and state net deferred tax assets, initially established in the fourth quarter of fiscal 2023.

Based on an evaluation of current results as of March 29, 2026 and expectations for the remainder of the year, the Company determined that it continues to not be more likely than not that these deferred tax assets would be realized.

Accordingly, no benefit has been recorded for the forecasted U.S.

tax loss for the three months ended March 29, 2026.

The Company will continue to assess the realizability of its deferred tax assets each reporting period and will adjust the valuation allowance as warranted.

Commitment s and Contingencies

2 unchanged sentences

Generally, under these agreements, 50 % of orders are cancelable by giving notice 46 to 60 days prior to the expected shipment date and 25 % of orders are cancelable by giving notice 31 to 45 days prior to the expected shipment date.

As of September 28, 2025, the Company had approximately $ 60.5 million , as compared to $ 57.4 million as of December 31, 2024, in short-term non-cancelable purchase commitments with suppliers or where the suppliers had procured unique materials and components upon receipts of the Company’s purchase orders.

Due to an elongation of the time from order placement to production that occurred several years ago, the Company issued purchase orders to supply chain partners beyond contractual termination periods.

As of September 28, 2025 , $ 171.3 million of purchase orders beyond contractual termination periods remained outstanding.

The Company is exposed to lengthening lead times and increasing costs on various components, certain of which are non-cancelable regardless of lead time, and as a result the Company has issued purchase orders to supply chain partners beyond contractual termination periods.

As of March 29, 2026 , the Company had approximately $ 62.9 million, as compared to $ 55.3 million as of December 31, 2025, in short-term non-cancelable purchase commitments with suppliers or where the suppliers had procured unique materials and components upon receipts of the Company’s purchase orders.

As of March 29, 2026 , $ 224.7 million of purchase orders beyond contractual termination periods remained outstanding.

Consequently, the Company may incur expenses for materials and components, such as chipsets purchased by the supplier to fulfill the purchase order if the purchase order is cancelled.

Expenses incurred in respect of cancelled purchase orders have historically not been significant relative to the original order value.

For those orders not governed by master purchase agreements, the commitments are governed by the commercial terms on the Company’s purchase orders subject to acknowledgment from its suppliers.

The Company establishes a loss liability for all products it does not expect to sell or orders it anticipates canceling for which it has committed purchases from suppliers.

Such loss liability is included in Other accrued liabilities on the Company’s unaudited condensed consolidated balance sheets.

Losses incurred in relation to purchase commitments, including unique materials and components, amounted to less than $ 0.1 million and $ 0.4 million for the three and nine months ended September 28, 2025 , respectively, and a gain of $ 1.2 million and a loss of $ 5.0 million for the three and nine months ended September 29, 2024, respectively.

For those orders not governed by master purchase agreements, the commitments are governed by the commercial terms on the Company’s purchase

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

orders subject to acknowledgment from its suppliers.

The Company establishes a loss liability for all products it does not expect to sell or orders it anticipates canceling for which it has committed purchases from suppliers.

Such loss liability, which was not material as of March 29, 2026 and December 31, 2025, is included in Other accrued liabilities on the Company’s unaudited condensed consolidated balance sheets.

Losses incurred in relation to purchase commitments, including unique materials and components, were not material for the three months ended March 29, 2026 or March 30, 2025.

Non-Trade Commitments

As of September 28, 2025, the Company had non-cancellable purchas e commitments of $ 9.4 million pertaining to non-trade activities.

As of March 29, 2026, the Company had non-cancellable purchas e commitments of $ 9.4 million pertaining to non-trade activities.

Warranty Obligations

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Three Months Ended

Nine Months Ended

(In thousands)

September 28, 2025

September 29, 2024

September 28, 2025

September 29, 2024

March 29, 2026

March 30, 2025

Balance as of beginning of the period

2 unchanged sentences

Balance as of the end of the period

During the third fiscal quarter of 2025, the lease commencement date for the new headquarters office lease, which was executed in 2024, occurred.

While the contractual commencement date under the lease agreement differs from the accounting commencement date, the lease has a remaining non-cancelable term of 11 years and is now recognized on the unaudited consolidated balance sheets.

Short-term and long-term undiscounted non-cancelable lease payments associated with this lease totaled approximately $ 3.1 million and $ 39.8 million, respectively, as of September 28, 2025.

This lease replaced the Company's previous headquarters lease, which expired in September 2025, around the time of its relocation to the new facility.

Litigation and Other Legal Matters

13 unchanged sentences

Under the authorizations, the timing and actual number of shares subject to repurchase are at the discretion of management and are contingent on a number of factors, such as levels of cash generation from operations, cash requirements for acquisitions and the price of the Company’s common stock.

During the nine months ended September 28, 2025 and September 29, 2024 , the Company repurchased, retired and reported, based on trade date, approximately 1.3 million and 1.7

During the three months ended March 29, 2026 and March 30, 2025 , the Company repurchased, retired and reported, based on trade date, approximately 0.9 million and 0.3 million shares of common stock, at a cost of approximately $ 20.0 million and $ 7.5 million, respectively.

As of March 29, 2026 , approximately 559,000 shares remained authorized for repurchase under the repurchase program.

On April 22, 2026, th e Company's Board of Directors authorized an incremental $ 75.0 million for repurchases of the Company's common stock under the existing repurchase program.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

million shares of common stock, at a cost of approximately $ 35.0 million and $ 22.9 million, respectively.

As of September 28, 2025 , approximately 2.0 million shares remained authorized for repurchase under the repurchase program.

The Company’s policy related to repurchases of its common stock is to charge the excess of cost over par value to retained earnings.

2 unchanged sentences

The Company withholds shares of its common stock to facilitate the administrative process of withholding and remitting personal income and payroll taxes for individuals receiving RSUs.

The Company withheld and rep orted, based on trade date, approximately 452,000 shares and 222,000 shares of common stock, at a cost of approximately $ 11.8 million and $ 3.3 million, during the nine months ended September 28, 2025 and September 29, 2024, respectively.

The Company withheld and rep orted, based on trade date, approximately 193,000 shares and 186,000 shares of common stock, at a cost of approximately $ 4.0 million and $ 5.1 million, during the three months ended March 29, 2026 and March 30, 2025, respectively.

Accumulated Other Comprehensive Income (Loss)

5 unchanged sentences

Estimated tax benefit (provision)

(In thousands)

Balance as of December 31, 2025

2 unchanged sentences

Net current period other comprehensive income (loss)

Balance as of September 28, 2025

Balance as of March 29, 2026

(In thousands)

8 unchanged sentences

Net current period other comprehensive income (loss)

Balance as of September 29, 2024

Balance as of March 30, 2025

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

1 unchanged sentence

Three Months Ended

Nine Months Ended

(In thousands)

September 28, 2025

September 29, 2024

September 28, 2025

September 29, 2024

March 29, 2026

March 30, 2025

Amount Reclassified from AOCI

10 unchanged sentences

2025 Equity Incentive Plan

In April 2025, t he Company's Board of Directors adopted the 2025 Equity Incentive Plan (the "2025 Plan") which was approved by the Company's stockholders at the 2025 Annual Meeting of Stockholders on May 29, 2025.

The 2025 Plan provides for the granting of stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to eligible directors, employees and consultants of the Company.

The maximum aggregate number of shares that may be issued under the 2025 Plan is 750,000 shares, plus (i) any shares that were available for grant under the 2016 Plan as of immediately prior to the date the 2025 Plan becomes effective, plus (ii) any shares granted under the 2016 Plan t hat expire, are forfeited to or repurchased by the Company.

As of September 28, 2025 , approximately 2.3 million shares were reserved and available for future grants under the 2025 Plan.

The 2025 Equity Incentive Plan (the "2025 Plan"), adopted by the Board of Directors in April 2025 and approved by stockholders on May 29, 2025, provides for the grant of stock options, restricted stock, RSUs, stock appreciation rights, performance units and performance shares to eligible directors, employees and consultants.

The maximum aggregate number of shares issuable under the 2025 Plan is 750,000 , plus shares that remained available under the 2016 Plan at the 2025 Plan's effective date and shares subject to 2016 Plan awards that subsequently expire, are forfeited, or are repurchased by the Company.

As of March 29, 2026 , approximately 2.4 million shares were reserved and available for future grants under the 2025 Plan.

Time-based RSUs granted generally vest over three years with the first tranche at the end of twelve months from the vest start date and the remaining vesting quarterly over the remaining two years .

3 unchanged sentences

2016 Equity Incentive Plan

The Company granted options, time-based RSUs and performance-based RSUs under the 2016 Incentive Plan (the “2016 Plan”), under which awards were granted to employees.

Vesting periods under this plan were generally four years for options, three years for performance-based RSUs, and three or four years for time-based RSUs.

As disclosed above, in May 2025, the Company adopted the 2025 Plan, which superseded the 2016 Plan with respect to new equity award grants.

No additional awards will be granted under the 2016 Plan following the effective date of the 2025 Plan.

However, (i) any shares that remained available for grant under the 2016 Plan immediately prior to the 2025 Plan’s effective date and (ii) any shares subject to awards granted under the 2016 Plan that are subsequently forfeited, expire, or are repurchased by the Company, will become available for issuance under the 2025 Plan.

All outstanding awards previously granted under the 2016 Plan remain outstanding and continue to be governed by the applicable terms and conditions of that plan.

Any shares that are tendered by a participant of the 2016 Plan or retained by the Company as full or partial payment to the Company for the purchase of an award or to satisfy tax withholding obligations in connection with an award shall no longer again be made available for issuance under the 2016 Plan.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Upon effectiveness of the 2025 Plan in May 2025, the 2016 Equity Incentive Plan (the “2016 Plan”) was superseded with respect to new equity award grants.

Outstanding awards under the 2016 Plan remain outstanding and continue to be governed by its terms.

2024 Inducement Plan

In February 2024, the Company’s Board of Directors approved 2024 Inducement Equity Incentive Plan (the “2024 Inducement Plan”), under which options, restricted stock awards, RSUs, stock appreciation rights, performance units, performance shares, and other stock or cash awards can be granted to personnel for positions of substantial responsibility.

In May 2025, the Company’s Board of Directors approved an amendment to the 2024 Inducement Plan which increased t he number of shares of the Company’s common stock that may be issued under the 2024 Inducement Plan by an additional 600,000 shares.

As of September 28, 2025, approxim ately 0.3 million shares were reserved for future grants under the 2024 Inducement Plan.

As of March 29, 2026, approxim ately 0.2 million shares were reserved for future grants under the 2024 Inducement Plan.

Employee Stock Purchase Plan

2 unchanged sentences

The duration of each offering period is generally six months.

In May 2025, the stockholders of the Company appr oved an amendment to the 2003 Employee Stock Purchase Plan to increase the number of shares of common stock authorized for sale under the ESPP by 1.5 million shares.

As of September 28, 2025 , approximately 1.7 million shares were available for issuance under the ESPP.

As of March 29, 2026 , approximately 1.6 million shares were available for issuance under the ESPP.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Option Activity

3 unchanged sentences

Outstanding as of December 31, 2025

Outstanding as of September 28, 2025

Outstanding as of March 29, 2026

Time-Based RSU Activity

3 unchanged sentences

Outstanding as of December 31, 2025

Outstanding as of September 28, 2025

Outstanding as of March 29, 2026

Performance-Based RSU Activity

Since 2020, the Company’s executives have been granted performance-based restricted stock units (“PSUs”) under the 2016 Plan with vesting occurring at the end of a three-year period, contingent upon the achievement of specified performance conditions.

In February 2024, the Company granted PSUs under the 2024 Inducement Plan to its newly-hired Chief Executive Officer with 1/3 of the target PSUs being allocated to each tranche and vesting occurring at the end of each anniversary of the vesting commencement date over a three-year period.

In addition, in 2024 and 2025, the Company granted PSUs under the 2016 Plan, 2024 Inducement Plan and 2025 Plan to its newly-hired employees or executives with vesting generally occurring at the end of a three-year period if performance conditions are met.

The Company granted performance-based restricted stock units (“PSUs”) under the 2016 Plan, 2024 Inducement Plan and 2025 Plan to its newly-hired employees or executives with vesting generally occurring at the end of a three-year period if performance conditions are met.

The number of PSUs earned and eligible to vest are determined based on achievement of the pre-determined performance or market conditions and the recipients’ continued service with the Company.

The number of PSUs to vest could range from 0 % to up to 200 % of the target shares granted.

For PSUs with a performance condition, at the end of each reporting period, the Company evaluates the probability of achieving the performance conditions and records the related stock-based compensation expense based on performance to date over the

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

service period.

The stock-based compensation expense relating to PSUs with a market condition is recognized ratably from the service inception date to the vesting date for each tranche.

The stock-based compensation expense relating to PSUs with a market condition is recognized ratably from the service inception date to the vesting date.

PSU activity was as follows:

2 unchanged sentences

Outstanding as of December 31, 2025

Outstanding as of September 28, 2025

Outstanding as of March 29, 2026

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Valuation and Expense Information

1 unchanged sentence

Three Months Ended

Nine Months Ended

(In thousands)

September 28, 2025

September 29, 2024

September 28, 2025

September 29, 2024

March 29, 2026

March 30, 2025

Cost of revenue

2 unchanged sentences

General and administrative

As of September 28, 2025 , $ 64.6 million of unrecognized compensation cost related to unvested RSUs (time-based and performance-based) expected to be recognized over a weighted-average period of 2.0 years.

As of March 29, 2026 , $ 50.5 million of unrecognized compensation cost related to unvested RSUs (time-based and performance-based) expected to be recognized over a weighted-average period of 1.7 years.

Segme nt Information

1 unchanged sentence

By this definition, the Company has identified its CEO as the CODM.

As previously announced, i n the first fiscal quarter of 2025, the Company realigned its business structure by separating the Connected Home segment into two distinct reportable segments:

Home Networking and Mobile.

This realignment is intended to further strengthen the Company's operational and financial management and enable further focus on growth opportunities while maintaining financial discipline.

The leadership team of each segment focuses on serving the unique needs of their customers through product and service development from both a product marketing and engineering standpoint, while also managing the sales and marketing functions that support their businesses.

Effective January 1, 2025, the Company operates and reports in three segments:

Enterprise, Home Networking and Mobile.

The Company operates and reports in two segments:

Enterprise and Consumer.

As previously disclosed, d uring 2025, the Company realigned its reportable segments twice.

NETGEAR for Business, Home Networking, and Mobile.

The prior-year segment financial information has been recast to conform to the current-year presentation.

• Enterprise:

Focuses on businesses and provides solutions for business networking, wireless local area network (“LAN”), audio and video over Ethernet for Pro AV applications, security and remote management providing enterprise-class functionality at an affordable price;

• Home Networking:

Focuses on consumers and provides high-performance, dependable and easy-to-use WiFi internet networking solutions such as WiFi 6, WiFi 6E and WiFi 7 multi-band mesh systems, routers, and subscription services that provide consumers a range of value-added services focused on performance, security, privacy, and premium support;

Focuses on both consumers and businesses and provides high-performance Mobile (4G/5G) products, including WiFi 7, WiFi 6/6E-enabled portable mobile hotspots and mobile routers, designed to meet the growing demand for on-the-go, high-speed and reliable internet connectivity with advanced security features.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

focuses on small and medium enterprises and provides solutions for audio and video over Ethernet for AV applications, enterprise networking solutions, including wireless local area network (“LAN”) and cloud-managed networking capabilities, software platforms for deployment and remote management, and security offerings, including firewall and SASE functionality, designed to address the networking, security, and manageability requirements of organizations seeking reliable and cost-effective connectivity solutions;

focuses on consumers and provides high-performance, dependable and easy-to-use WiFi internet networking solutions such as multi-band WiFi 7 mesh systems and routers, subscription services offering performance, security, privacy and support, and 4G/5G mobile products, including WiFi 7 and WiFi 6/6E-enabled portable mobile hotspots and mobile routers, designed to address the demand for reliable, high-speed connectivity at home and on the go.

The Company believes that this structure reflects its current operational and financial management, with Enterprise and Consumer operating as distinct business units with integrated product development and go-to-market capabilities.

The leadership teams of each segment are responsible for sales, marketing, product management, engineering, and customer support activities tailored to their respective markets.

The results of the reportable segments are derived directly from the Company’s management reporting system.

The results are based on the Company’s method of internal reporting and are not necessarily in conformity with accounting principles generally accepted in the United States.

Management measures the performance of each segment based on several metrics, including contribution income (loss).

Segment contribution income (loss) includes all product line segment revenues less the related cost of sales, research and development and sales and marketing costs.

Contribution income (loss) is used, in part, to evaluate the performance of, and allocate resources to, each of the segments.

Management measures the performance of each segment based on several metrics, including segment gross profit and segment contribution income (loss).

Segment gross profit consists of segment net revenue less the related segment cost of revenue, where segment cost of revenue excludes stock-based compensation expense and amortization of intangible assets, each of which is managed at the corporate level and reported within unallocated indirect costs below.

Segment contribution income (loss) consists of segment net revenue less the related segment cost of revenue, research and development and sales and marketing costs, in each case excluding the corporate-level items described below.

Segment c ontribution income (loss) is used, in part, to evaluate the performance of, and allocate resources to, each of the segments.

Certain operating expenses are not allocated to segments because they are separately managed at the corporate level.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

These unallocated indirect costs include corporate costs, such as corporate research and development, corporate marketing and general and administrative expenses, amortization of intangible assets, stock-based compensation expense, acquisition related expenses, restructuring and other charges, litigation reserves, net, and other income (expenses), net.

1 unchanged sentence

Three Months Ended

September 28, 2025

September 29, 2024

(In thousands, except percentage data)

Home Networking

Home Networking (2)

Cost of revenue

Operating expenses

Contribution income (loss)

Contribution margin

Corporate and unallocated costs

Amortization of intangible assets

Stock-based compensation expense

Acquisition related expenses

Restructuring and other charges

Litigation reserves, net

Other income, net (1)

Income (loss) before income taxes

Nine Months Ended

September 28, 2025

September 29, 2024

March 29, 2026

March 30, 2025

(In thousands, except percentage data)

Home Networking

Home Networking (2)

Cost of revenue

Operating expenses

Segment cost of revenue

Segment Gross profit

Segment Gross margin

Segment operating expenses

Contribution income (loss)

8 unchanged sentences

Income (loss) before income taxes

(1) Amoun ts include d interest income of $ 2.7 million and $ 9.1 million for the three and nine months ended September 28, 2025 , respectively, and $ 3.3 million and $ 8.3 million for the three and nine months ended September 29, 2024, respectively.

Amounts also included gain/(loss), net from derivatives not designated as hedging instruments of $ 0.7 million and $( 2.4 ) million for the three and nine months ended September 28, 2025 , respectively, and $( 1.6 ) million

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

and $ 0.5 million for the three and nine months ended September 29, 2024, respectively.

For the nine months ended September 28, 2025 , the amount also included proceeds of $ 4.7 million from a sale of patents.

(2) Financial information for the Home Networking and Mobile segment in the prior year periods were recast to conform to the current reportable segment structure.

(1) Amounts included interest income of $ 2.0 million and $ 3.3 million for the three months ended March 29, 2026 and March 30, 2025, respectively.

Amounts also included gain/(loss), net from derivatives not designated as hedging instruments of $ 0.4 million and $( 1.0 ) million for the three months ended March 29, 2026, and March 30, 2025, respectively.

For the three months ended March 29, 2026, the amount also included $ 0.6 million of imputed interest expense related to an intangible asset acquisition.

For the three months ended March 30, 2025, the amount also included proceeds of $ 4.7 million from a sale of patents and gain/(loss), net from foreign currency transactions of $ 1.4 million.

The CODM does not evaluate operating segments using discrete asset information.

3 unchanged sentences

Three Months Ended

Nine Months Ended

(In thousands)

September 28, 2025

September 29, 2024

September 28, 2025

September 29, 2024

March 29, 2026

March 30, 2025

United States (U.S.)

2 unchanged sentences

(1) No individual foreign country represented more than 10 % of the Company’s total net revenue in the periods presented.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Long-lived assets by Geographic Region

1 unchanged sentence

(In thousands)

September 28, 2025

March 29, 2026

December 31, 2025

1 unchanged sentence

Americas (excluding U.S.

APAC (excluding Singapore) (1)

(1) No individual country represented more than 10 % of the Company’s total long-lived assets in the periods presented.

1 unchanged sentence

The following tables summarize assets and liabilities measured at fair value on a recurring basis:

September 28, 2025

March 29, 2026

(In thousands)

11 unchanged sentences

Total liabilities measured at fair value

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

December 31, 2025

17 unchanged sentences

The Company’s investments in U.S.

treasury securities are classified within Level 2 of the fair value hierarchy because they are valued based on readily available pricing sources for comparable or identical instruments in less active markets.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

securities are classified within Level 2 of the fair value hierarchy because they are valued based on readily available pricing sources for comparable or identical instruments in less active markets.

The Company’s foreign currency forward contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that consider the contract terms as well as currency rates and counterparty credit rates.

5 unchanged sentences

Accrued restructuring and other charges are classified within Accrued employee compensation and Other accrued liabilities on the condensed consolidated balance sheets.

Restructuring and other charges recognized in the three and nine months ended September 28, 2025 and September 29, 2024, respectively, were primarily for severance, and other costs in relation to the reorganization of the business.

These initiatives were undertaken to reduce costs, and reinvest into the business to capitalize on the Company's highest priority opportunities to drive revenue growth and improve profitability.

The vast majority of the liabilities as of September 28, 2025 are expected to be settled in 2025.

Restructuring and other charges recognized in the three months ended March 29, 2026 and March 30, 2025 were primarily for severance and other costs in relation to the reorganization of the business.

Charges in the current quarter primarily reflected a new restructuring action initiated in the first quarter of 2026, with the resulting savings intended to be reinvested in the Company’s strategic priorities to support its ongoing transformation.

This action consists of severance and related costs incurred in connection with the Company’s efforts to align its cost structure and organizational design, and does not represent a single, defined exit plan with a pre-established total cost.

Accordingly, the Company evaluates the total expected costs and cumulative costs incurred to date on an aggregate basis.

These costs are managed at the corporate level and are not allocated to, or evaluated by, reportable segment.

Restructuring and other charges are presented as a separate line item within operating expenses in the unaudited condensed consolidated statements of operations.

Additional costs to be incurred under this first quarter of 2026 action subsequent to March 29, 2026 are not expected to be material.

The vast majority of the liabilities as of March 29, 2026 are expected to be settled by the third fiscal quarter of 2026.

The following table provides a summary of the activity related to accrued restructuring and other charges:

2 unchanged sentences

Cash Payments

Accrued Restructuring and Other Charges at September 28, 2025

Accrued Restructuring and Other Charges at March 29, 2026

Restructuring

2 unchanged sentences

Total Restructuring and other charges

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands)

1 unchanged sentence

Cash Payments

Accrued Restructuring and Other Charges at September 29, 2024

Accrued Restructuring and Other Charges at March 30, 2025

Restructuring

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements