NETGEAR, INC. 10-Q

Item 1. Financial Statements NETGEAR, INC. UNAUDITED CONDENSED CONS OLIDATED BALANCE SHEETS (In thousands) March 29, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 183,476 $ 209,904 Short-term investments 113,033 113,132 Accounts receivable, net of allowance for doubtful accounts of $ 461 and $ 466 as of March 29, 2026 and December 31, 2025, respectively 142,155 142,045 Inventories 169,305 176,456 Prepaid expenses and other current assets 34,849 31,745 Total current assets 642,818 673,282 Property and equipment, net 26,182 26,001 Operating lease right-of-use assets 34,308 36,715 Intangible assets, net 37,061 38,480 Goodwill 45,022 45,022 Other non-current assets 16,540 16,771 Total assets $ 801,931 $ 836,271 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 43,367 $ 43,749 Accrued employee compensation 38,260 34,731 Other accrued liabilities 139,080 144,028 Deferred revenue 26,199 26,904 Income taxes payable 1,816 809 Total current liabilities 248,722 250,221 Non-current income taxes payable 6,702 7,176 Non-current operating lease liabilities 38,113 41,016 Other non-current liabilities 37,239 40,035 Total liabilities 330,776 338,448 Commitments and contingencies (Note 9) Stockholders’ equity: Common stock 27 28 Additional paid-in capital 1,047,305 1,036,545 Accumulated other comprehensive income (loss) ( 28 ) 196 Accumulated deficit ( 576,149 ) ( 538,946 ) Total stockholders’ equity 471,155 497,823 Total liabilities and stockholders’ equity $ 801,931 $ 836,271 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 3 Table of Contents NETGEAR, INC. UNAUDITED CONDENSED CONSOLIDA TED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three Months Ended March 29, 2026 March 30, 2025 Net revenue $ 158,819 $ 162,060 Cost of revenue 94,517 105,734 Gross profit 64,302 56,326 Operating expenses: Research and development 21,665 18,309 Sales and marketing 31,670 28,041 General and administrative 19,183 18,070 Litigation reserves, net 500 ( 37 ) Restructuring and other charges 4,876 4,742 Total operating expenses 77,894 69,125 Loss from operations ( 13,592 ) ( 12,799 ) Other income, net 1,581 8,171 Loss before income taxes ( 12,011 ) ( 4,628 ) Provision for income taxes 1,029 1,406 Net loss $ ( 13,040 ) $ ( 6,034 ) Net loss per share Basic $ ( 0.47 ) $ ( 0.21 ) Diluted $ ( 0.47 ) $ ( 0.21 ) Weighted average shares used to compute net loss per share: Basic 27,977 28,717 Diluted 27,977 28,717 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 4 Table of Contents NETGEAR, INC. UNAUDITED CONDENSED CONSOLIDATED S TATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In thousands) Three Months Ended March 29, 2026 March 30, 2025 Net income (loss) $ ( 13,040 ) $ ( 6,034 ) Other comprehensive income (loss), before tax: Change in unrealized gains and losses on derivatives ( 35 ) ( 280 ) Change in unrealized gains and losses on available-for-sale investments ( 195 ) ( 78 ) Other comprehensive income (loss), before tax ( 230 ) ( 358 ) Tax benefit related to derivatives 6 35 Other comprehensive loss, net of tax ( 224 ) ( 323 ) Comprehensive loss $ ( 13,264 ) $ ( 6,357 ) The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 5 Table of Contents NETGEAR, INC. UNAUDITED CONDENSED CONSOLIDATED S TATEMENTS OF STOCKHOLDERS' EQUITY (In thousands) Common Stock Shares Amount Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Total Stockholder's Equity Balance as of December 31, 2025 27,943 $ 28 $ 1,036,545 $ 196 $ ( 538,946 ) $ 497,823 Change in unrealized gains and losses on available-for-sale investments, net of tax — — — ( 195 ) — ( 195 ) Change in unrealized gains and losses on derivatives, net of tax — — — ( 29 ) — ( 29 ) Net loss — — — — ( 13,040 ) ( 13,040 ) Stock-based compensation — — 8,205 — — 8,205 Repurchase of common stock, including exercise tax ( 929 ) ( 1 ) — — ( 20,135 ) ( 20,136 ) Restricted stock unit withholdings ( 193 ) — — — ( 4,028 ) ( 4,028 ) Issuance of common stock under stock-based compensation plans 522 — 2,555 — — 2,555 Balance as of March 29, 2026 27,343 $ 27 $ 1,047,305 $ ( 28 ) $ ( 576,149 ) $ 471,155 Common Stock Shares Amount Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Total Stockholder's Equity Balance as of December 31, 2024 28,500 $ 29 $ 997,912 $ 241 $ ( 457,116 ) $ 541,066 Change in unrealized gains and losses on available-for-sale investments, net of tax — — — ( 78 ) — ( 78 ) Change in unrealized gains and losses on derivatives, net of tax — — — ( 245 ) — ( 245 ) Net loss — — — — ( 6,034 ) ( 6,034 ) Stock-based compensation — — 5,496 — — 5,496 Repurchase of common stock, including exercise tax ( 254 ) — — — ( 7,500 ) ( 7,500 ) Restricted stock unit withholdings ( 186 ) — — — ( 5,141 ) ( 5,141 ) Issuance of common stock under stock-based compensation plans 722 — 6,679 — — 6,679 Balance as of March 30, 2025 28,782 $ 29 $ 1,010,087 $ ( 82 ) $ ( 475,791 ) $ 534,243 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 6 Table of Contents NETGEAR, INC. UNAUDITED CONDENSED CONSOLIDA TED STATEMENTS OF CASH FLOWS (In thousands) Three Months Ended March 29, 2026 March 30, 2025 Cash flows from operating activities: Net loss $ ( 13,040 ) $ ( 6,034 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 3,624 1,684 Stock-based compensation 8,205 5,496 Accretion of discounts and imputed interests, net 644 ( 476 ) Deferred income taxes ( 67 ) ( 136 ) Provision for excess and obsolete inventory 1,900 1,435 Other ( 22 ) 9 Changes in assets and liabilities: Accounts receivable, net ( 110 ) 13,504 Inventories 5,251 3,206 Prepaid expenses and other assets ( 2,770 ) ( 615 ) Accounts payable ( 207 ) ( 3,603 ) Accrued employee compensation 3,530 ( 4,313 ) Other accrued liabilities ( 4,940 ) ( 19,102 ) Deferred revenue ( 886 ) ( 164 ) Income taxes payable 532 365 Net cash provided by (used in) operating activities 1,644 ( 8,744 ) Cash flows from investing activities: Purchases of short-term investments ( 30,152 ) ( 29,759 ) Proceeds from maturities of short-term investments 30,000 30,000 Purchases of property and equipment ( 3,822 ) ( 1,396 ) Purchases of long-term investments — ( 105 ) Net cash used in investing activities ( 3,974 ) ( 1,260 ) Cash flows from financing activities: Repurchases of common stock, including exercise tax ( 20,152 ) ( 8,162 ) Restricted stock unit withholdings ( 4,028 ) ( 5,141 ) Proceeds from exercise of stock options — 4,590 Proceeds from issuance of common stock under employee stock purchase plan 2,555 2,089 Principal payments on deferred purchase price of intangible asset acquisition ( 2,475 ) — Net cash used in financing activities ( 24,100 ) ( 6,624 ) Net decrease in cash and cash equivalents and restricted cash ( 26,430 ) ( 16,628 ) 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 $ 185,576 $ 271,923 Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets Cash and cash equivalents at end of period $ 183,476 $ 269,811 Restricted cash included within other non-current assets at end of period 2,100 2,112 Total cash, cash equivalents, and restricted cash at end of period shown in the condensed consolidated statements of cash flows $ 185,576 $ 271,923 Non-cash investing and financing activities: Unpaid property and equipment $ 687 $ 1,364 Intangible assets acquired with deferred consideration $ 41,446 $ — The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 7 Table of Contents NETGEAR, INC. NOTES TO UNAUDITED CONDENSED CO NSOLIDATED FINANCIAL STATEMENTS Note 1. The Company and Basis of Presentation NETGEAR, Inc. (“NETGEAR” or the “Company”) was incorporated in Delaware in January 1996. 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. and its wholly owned subsidiaries. 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 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. These unaudited condensed consolidated financial statements do not include all of the information and footnotes typically found in the audited consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K. In the opinion of management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments considered necessary to fairly state the Company's financial position, results of operations, comprehensive income (loss), stockholder's equity and cash flows for the periods indicated. These unaudited condensed consolidated financial statements should be read in conjunction with the notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “Annual Report”). The Company's fiscal year begins on January 1 of the year stated and ends on December 31 of the same year. The Company reports its results on a fiscal quarter basis rather than on a calendar quarter basis. Under the fiscal quarter basis, each of the first three fiscal quarters ends on the Sunday closest to the calendar quarter end, with the fourth quarter ending on December 31. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities at the date of the financial statements, and (iii) the reported amounts of net revenue and expenses during the reported period. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances. As of the date of issuance of these condensed consolidated financial statements, the Company is not aware of any specific event or circumstance that would require it to update its estimates, judgments or revise the carrying value of its assets or liabilities. 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 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. Segments 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 8 Table of Contents NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (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. Note 2. Summary of Signif icant Accounting Policies No material changes have been made to the Company’s significant accounting policies disclosed in Note 1, The Company and Summary of Significant Accounting Policies , in Part II, Item 8 “Financial Statements and Supplementary Data” in its Annual Report. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted 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 November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”, which expands the disclosure requirements for specific costs and expenses. ASU 2024-03 is effective for the Company for the year ending December 31, 2027 and early adoption is permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. The Company does not expect that the guidance will have material impacts on its financial position, results of operations or cash flows. The Company is evaluating the impact that the updated standard will have on its financial statement disclosures. In September 2025, the FASB issued ASU 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software”, which eliminates project stages and requires capitalizing costs when management has committed to funding the project and it is probable of completion. ASU 2025-06 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2028 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. 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. Note 3. 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 . 9 Table of Contents NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Note 4. Rev enue 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. Transaction Price Allocated to the Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities, in-transit orders with destination terms, and non-cancellable backlog. 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 March 29, 2026: (In thousands) Less than 1 year 1 to 2 years Beyond 2 years Total Performance obligations $ 59,073 $ 2,308 $ 1,755 $ 63,136 Contract Balances The Company records accounts receivable when it has an unconditional right to consideration. Contract liabilities are recorded when cash payments are received or due in advance of performance. Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations. 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. The time between invoicing and when payment is due is not significant. For certain products or services and customer types, payment is required before the products or services are delivered to the customer. The following table reflects the contract balances: (In thousands) Balance Sheet Location March 29, 2026 December 31, 2025 Accounts receivable, net Accounts receivable, net $ 142,155 $ 142,045 Contract liabilities – current Deferred revenue $ 26,199 $ 26,904 Contract liabilities – non-current Other non-current liabilities $ 4,025 $ 4,206 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. 10 Table of Contents NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Disaggregation of Revenue 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: Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific (“APAC”). The tables also include reconciliations of the disaggregated revenue by reportable segment. 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 March 29, 2026 March 30, 2025 (In thousands) Enterprise Consumer Total Enterprise Consumer Total Geographic regions (1) : Americas $ 44,738 $ 61,125 $ 105,863 $ 40,481 $ 67,280 $ 107,761 EMEA 25,113 8,362 33,475 24,339 7,790 32,129 APAC 13,951 5,530 19,481 14,371 7,799 22,170 Total $ 83,802 $ 75,017 $ 158,819 $ 79,191 $ 82,869 $ 162,060 Product categories: Service provider and related products (2) $ 191 $ 20,232 $ 20,423 $ 270 $ 29,707 $ 29,977 Non-service provider 83,611 54,785 138,396 78,921 53,162 132,083 Total $ 83,802 $ 75,017 $ 158,819 $ 79,191 $ 82,869 $ 162,060 _____________________________ (1) No i ndividual foreign country represented more than 10 % of the Company ’ s total net revenue in the periods presented. (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. Note 5. 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 March 29, 2026 and December 31, 2025, were as follows: March 29, 2026 (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. treasury securities $ 110,200 $ - $ ( 33 ) $ 110,167 Total $ 110,200 $ - $ ( 33 ) $ 110,167 December 31, 2025 (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. treasury securities $ 110,048 $ 162 $ — $ 110,210 Total $ 110,048 $ 162 $ — $ 110,210 The contractual maturities on the U.S. 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 11 Table of Contents 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. Inventories (In thousands) March 29, 2026 December 31, 2025 Raw materials $ 7,770 $ 8,828 Finished goods 161,535 167,628 Total $ 169,305 $ 176,456 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. Property and equipment, net (In thousands) March 29, 2026 December 31, 2025 Machinery and equipment $ 55,233 $ 54,007 Furniture and fixtures 3,525 3,482 Leasehold improvements 21,842 21,475 Software 21,828 21,642 Computer equipment 3,640 3,370 Total property and equipment, gross 106,068 103,976 Accumulated depreciation ( 79,886 ) ( 77,975 ) Total $ 26,182 $ 26,001 Intangible Assets, net March 29, 2026 December 31, 2025 (In thousands) Gross Accumulated Amortization Accumulated Impairment Net Gross Accumulated Amortization Accumulated Impairment Net Technology $ 39,594 $ ( 2,581 ) $ — $ 37,013 $ 39,594 $ ( 1,166 ) $ — $ 38,428 Other 60 ( 12 ) — 48 60 ( 8 ) — 52 Total $ 39,654 $ ( 2,593 ) $ — $ 37,061 $ 39,654 $ ( 1,174 ) $ — $ 38,480 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 12 Table of Contents NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 29, 2026. Other non-current assets (In thousands) March 29, 2026 December 31, 2025 Non-current deferred income taxes $ 2,459 $ 2,386 Long-term investments 8,754 8,732 Restricted cash 2,100 2,102 Other 3,227 3,551 Total $ 16,540 $ 16,771 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 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) March 29, 2026 December 31, 2025 Current operating lease liabilities $ 9,977 $ 9,933 Sales and marketing 58,778 61,144 Warranty obligations 5,797 5,928 Sales returns (1) 21,375 24,435 Freight and duty 3,940 4,518 Current deferred consideration (2) 9,014 8,355 Other 30,199 29,715 Total $ 139,080 $ 144,028 (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) $ 32,431 $ 34,921 Non-current deferred revenue 4,025 4,206 Other 783 908 Total $ 37,239 $ 40,035 (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. Note 6. Derivative F inancial Instruments The Company’s subsidiaries have material future cash flows related to revenue and expenses denominated in currencies other than the U.S. 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 13 Table of Contents 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. The Company’s foreign currency forward contracts do not contain any credit-risk-related contingent features. 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 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 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 The fair values of the Company’s derivative instruments and the line items on the unaudited condensed consolidated balance sheets to which they were recorded were summarized as follows: Balance Sheet Balance Sheet (In thousands) Location March 29, 2026 December 31, 2025 Location March 29, 2026 December 31, 2025 Derivatives not designated as hedging instruments Prepaid expenses and other current assets $ 366 $ 315 Other accrued liabilities $ 81 $ 699 Derivatives designated as hedging instruments Prepaid expenses and other current assets 15 — Other accrued liabilities 1 30 Total $ 381 $ 315 $ 82 $ 729 Refer to Note 13, Fair Value Measurements for detailed disclosures regarding fair value measurements. Refer to Note 10, Stockholders ’ Equity , for details on the accumulated other comprehensive income (loss) activity related to derivatives and refer to Note 12, Segment Information , for details on gain/(loss), net pertaining to derivatives not designated as hedging instruments that were recognized in Other income (expenses), net. Note 7. Net I ncome (Loss) Per Share Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include common shares issuable upon exercise of stock options, vesting of Restricted Stock Units (“RSUs”) and performance shares, and issuances of shares under the Employee Stock Purchase Plan (the “ESPP”), which are reflected in diluted net income (loss) per share by application of the treasury stock method. Potentially dilutive common shares are excluded from the computation of diluted net income (loss) per share when their effect is anti-dilutive. 14 Table of Contents NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Net income (loss) per share consisted of the following: Three Months Ended (In thousands, except per share data) March 29, 2026 March 30, 2025 Numerator: Net loss $ ( 13,040 ) $ ( 6,034 ) Denominator: Weighted average common shares – basic 27,977 28,717 Potentially dilutive common share equivalent — — Weighted average common shares – dilutive 27,977 28,717 Basic net loss per share $ ( 0.47 ) $ ( 0.21 ) Diluted net loss per share $ ( 0.47 ) $ ( 0.21 ) Anti-dilutive employee stock-based awards, excluded 905 258 Note 8. In come Taxes 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. 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 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. Note 9. Commitment s and Contingencies Purchase Obligations The Company has entered into various inventory-related purchase agreements with suppliers. 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. 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 15 Table of Contents 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 March 29, 2026, the Company had non-cancellable purchas e commitments of $ 9.4 million pertaining to non-trade activities. Warranty Obligations Changes in the Company’s warranty obligations, which is included in Other accrued liabilities on the unaudited condensed consolidated balance sheets, were as follows: Three Months Ended (In thousands) March 29, 2026 March 30, 2025 Balance as of beginning of the period $ 5,928 $ 5,192 Provision for warranty liability made 1,170 1,254 Settlements made ( 1,301 ) ( 1,139 ) Balance as of the end of the period $ 5,797 $ 5,307 Litigation and Other Legal Matters From time to time, the Company is involved in disputes, litigation, and other legal actions. In all cases, at each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. In such cases, the Company accrues for the amount, or if a range, the Company accrues the low end of the range, only if there is not a better estimate than any other amount within the range, as a component of legal expense within litigation reserves, net. The Company monitors developments in these legal matters that could affect the estimate the Company had previously accrued. In relation to such matters, the Company currently believes that there are no existing claims or proceedings that are likely to have a material adverse effect on its financial position within the next twelve months, or the outcome of these matters is currently not determinable. There are many uncertainties associated with any litigation, and these actions or other third-party claims against the Company may cause the Company to incur costly litigation and/or substantial settlement charges. In addition, the resolution of any intellectual property litigation may require the Company to make royalty payments, which could have an adverse effect in future periods. If any of those events were to occur, the Company’s business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from the Company’s estimates, which could result in the need to adjust the liability and record additional expenses. The Company does not believe that it will incur a material loss for any of its pending litigation matters at this time, and consequently has not established any material loss provisions. Note 10. Stock holders’ Equity Stock Repurchases From time to time, the Company’s Board of Directors has authorized programs under which the Company may repurchase shares of its common stock, depending on market conditions, in the open market or through privately negotiated transactions. 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 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. 16 Table of Contents NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The Company’s policy related to repurchases of its common stock is to charge the excess of cost over par value to retained earnings. All repurchases were made in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. Restricted Stock Unit Withholdings 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 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) The following tables set forth the changes in accumulated other comprehensive income (loss) (“AOCI”) by component: (In thousands) Unrealized gains (losses) on available -for-sale investments Unrealized gains (losses) on derivatives Estimated tax benefit (provision) Total (In thousands) Balance as of December 31, 2025 $ 160 $ 39 $ ( 3 ) $ 196 Other comprehensive income (loss) before reclassifications ( 195 ) ( 115 ) 23 ( 287 ) Less: Amount reclassified from accumulated other comprehensive income (loss) — ( 80 ) 17 ( 63 ) Net current period other comprehensive income (loss) ( 195 ) ( 35 ) 6 ( 224 ) Balance as of March 29, 2026 $ ( 35 ) $ 4 $ 3 $ ( 28 ) (In thousands) Unrealized gains (losses) on available -for-sale investments Unrealized gains (losses) on derivatives Estimated tax benefit (provision) Total Balance as of December 31, 2024 $ 169 $ 79 $ ( 7 ) $ 241 Other comprehensive income (loss) before reclassifications ( 78 ) ( 662 ) 115 ( 625 ) Less: Amount reclassified from accumulated other comprehensive income (loss) — ( 382 ) 80 ( 302 ) Net current period other comprehensive income (loss) ( 78 ) ( 280 ) 35 ( 323 ) Balance as of March 30, 2025 $ 91 $ ( 201 ) $ 28 $ ( 82 ) 17 Table of Contents NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The following table provides details about significant amounts reclassified out of each component of AOCI: Three Months Ended (In thousands) March 29, 2026 March 30, 2025 Amount Reclassified from AOCI Gains (losses) on cash flow hedge: Foreign currency forward contracts Affected line item in the statement of operations Net revenue $ ( 130 ) $ ( 522 ) Cost of revenue 1 — Research and development 14 32 Sales and marketing 24 79 General and administrative 11 29 Total before tax ( 80 ) ( 382 ) Tax impact 17 80 Total, net of tax $ ( 63 ) $ ( 302 ) Note 11. Employe e Benefit Plans 2025 Equity Incentive 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 . RSUs do not have an expiration date. Performance-based RSUs granted generally vest at the end of a three-year period if performance conditions are met. Any shares that are tendered by a participant or retained by the Company as full or partial payment for the purchase of an award or to satisfy tax withholding obligations in connection with an award granted under the 2025 Plan, or under the 2016 Plan after the 2025 Plan became effective, shall again be made available for issuance under the 2025 Plan. 2016 Equity Incentive Plan 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. 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 The Company sponsors an Employee Stock Purchase Plan (the “ESPP”). The terms of the plan include a look-back feature that enables employees to purchase stock semi-annually at a price equal to 85 % of the lesser of the fair market value at the beginning of the offering period or the purchase date. The duration of each offering period is generally six months. As of March 29, 2026 , approximately 1.6 million shares were available for issuance under the ESPP. 18 Table of Contents NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Option Activity Stock option activity was as follows: (In thousands, except per share amounts) Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Outstanding as of December 31, 2025 101 $ 33.24 Exercised — $ — Expired — $ — Outstanding as of March 29, 2026 101 $ 33.24 2.70 Time-Based RSU Activity Time-based RSU activity was as follows: (In thousands, except per share amounts) Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding as of December 31, 2025 2,294 $ 22.27 Granted 57 $ 21.76 Vested ( 227 ) $ 16.47 Cancelled ( 43 ) $ 22.00 Outstanding as of March 29, 2026 2,081 $ 22.90 Performance-Based RSU Activity 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 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. PSU activity was as follows: (In thousands, except per share amounts) Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding as of December 31, 2025 805 $ 33.64 Granted 6 $ 20.71 Vested ( 157 ) $ 20.71 Cancelled — $ — Outstanding as of March 29, 2026 654 $ 36.65 19 Table of Contents NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Valuation and Expense Information The following table sets forth the stock-based compensation expense resulting from stock options, RSUs (time-based and performance-based) and the ESPP included in the Company’s unaudited condensed consolidated statements of operations: Three Months Ended (In thousands) March 29, 2026 March 30, 2025 Cost of revenue $ 501 $ 422 Research and development 1,103 592 Sales and marketing 2,265 1,313 General and administrative 4,336 3,169 Total $ 8,205 $ 5,496 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. Note 12. Segme nt Information Operating segments are components of an enterprise about which separate financial information is available and is evaluated quarterly by management, namely the Chief Operating Decision Maker (“CODM”) of an organization, in order to determine operating and resource allocation decisions. By this definition, the Company has identified its CEO as the CODM. The Company operates and reports in two segments: Enterprise and Consumer. As previously disclosed, d uring 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. The prior-year segment financial information has been recast to conform to the current-year presentation. • Enterprise: 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; and • Consumer: 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 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. 20 Table of Contents 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. Financial information for each reportable segment and a reconciliation of segment contribution income to income (loss) before income taxes is as follows: Three Months Ended March 29, 2026 March 30, 2025 (In thousands, except percentage data) Enterprise Consumer Total Enterprise Consumer Total Net revenue $ 83,802 $ 75,017 $ 158,819 $ 79,191 $ 82,869 $ 162,060 Segment cost of revenue 39,658 52,940 92,598 42,530 62,782 105,312 Segment Gross profit 44,144 22,077 66,221 36,661 20,087 56,748 Segment Gross margin 52.7 % 29.4 % 46.3 % 24.2 % Segment operating expenses 24,087 22,203 46,290 19,026 21,552 40,578 Contribution income (loss) 20,057 ( 126 ) 19,931 17,635 ( 1,465 ) 16,170 Contribution margin 23.9 % ( 0.2 )% 22.3 % ( 1.8 )% Corporate and unallocated costs ( 18,279 ) ( 18,768 ) Amortization of intangible assets ( 1,419 ) — Stock-based compensation expense ( 8,205 ) ( 5,496 ) Acquisition related expenses ( 244 ) — Restructuring and other charges ( 4,876 ) ( 4,742 ) Litigation reserves, net ( 500 ) 37 Other income, net (1) 1,581 8,171 Income (loss) before income taxes $ ( 12,011 ) $ ( 4,628 ) (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. Operations by Geographic Region For reporting purposes, revenue is generally attributed to each geographic region based on the location of the customer. The following table shows net revenue by geography: Three Months Ended (In thousands) March 29, 2026 March 30, 2025 United States (U.S.) $ 102,579 $ 104,039 Americas (excluding U.S.) 3,284 3,722 EMEA (1) 33,475 32,129 APAC (1) 19,481 22,170 Total net revenue $ 158,819 $ 162,060 (1) No individual foreign country represented more than 10 % of the Company’s total net revenue in the periods presented. 21 Table of Contents NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Long-lived assets by Geographic Region The following table presents the Company’s long-lived assets located in geographic areas, which consist of property and equipment, net, and operating lease right-of-use assets: (In thousands) March 29, 2026 December 31, 2025 United States (U.S.) $ 40,549 $ 42,836 Americas (excluding U.S. ) 4,383 4,594 EMEA 2,563 2,345 APAC (1) 12,995 12,941 Total $ 60,490 $ 62,716 (1) No individual country represented more than 10 % of the Company’s total long-lived assets in the periods presented. Note 13. Fair V alue Measurements The following tables summarize assets and liabilities measured at fair value on a recurring basis: March 29, 2026 (In thousands) Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Assets: Cash equivalents: money-market funds $ 83,625 $ 83,625 $ — Available-for-sale investments: U.S. treasury securities (1) 110,167 — 110,167 Trading securities: mutual funds (1) 2,866 2,866 — Foreign currency forward contracts (2) 381 — 381 Total assets measured at fair value $ 197,039 $ 86,491 $ 110,548 Liabilities: Foreign currency forward contracts (3) $ 82 $ — $ 82 Total liabilities measured at fair value $ 82 $ — $ 82 December 31, 2025 (In thousands) Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Assets: Cash equivalents: money-market funds $ 107,070 $ 107,070 $ — Available-for-sale investments: U.S. treasury securities (1) 110,210 — 110,210 Trading securities: mutual funds (1) 2,922 2,922 — Foreign currency forward contracts (2) 315 — 315 Total assets measured at fair value $ 220,517 $ 109,992 $ 110,525 Liabilities: Foreign currency forward contracts (3) $ 729 $ — $ 729 Total liabilities measured at fair value $ 729 $ — $ 729 (1) Included in Short-term investments on the Company’s unaudited condensed consolidated balance sheets. (2) Included in Prepaid expenses and other current assets on the Company’s unaudited condensed c onsolidated balance sheets. (3) Included in Other accrued liabilities on the Company's unaudited condensed consolidated balance sheets. The Company’s investments in money-market funds and mutual funds are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company’s investments in U.S. treasury 22 Table of Contents 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. The Company verifies the reasonableness of these pricing models using observable market data for related inputs into such models. The Company enters into foreign currency forward contracts with only those counterparties that have long-term credit ratings of A-/A3 or higher. The carrying value of non-financial assets and liabilities measured at fair value in the financial statements on a recurring basis, including accounts receivable and accounts payable, approximate fair value due to their short maturities. Note 14. Restructuring and Other Charges The Company accounts for its restructuring plans under the authoritative guidance for exit or disposal activities. 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 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: (In thousands) Accrued Restructuring and Other Charges at December 31, 2025 Additions Cash Payments Adjustments Accrued Restructuring and Other Charges at March 29, 2026 Restructuring Employee termination charges $ 1,385 $ 4,890 $ ( 3,095 ) $ ( 15 ) $ 3,165 Lease contract termination and other charges 169 ( 14 ) — — $ 155 Total Restructuring and other charges $ 1,554 $ 4,876 $ ( 3,095 ) $ ( 15 ) $ 3,320 (In thousands) Accrued Restructuring and Other Charges at December 31, 2024 Additions Cash Payments Adjustments Accrued Restructuring and Other Charges at March 30, 2025 Restructuring Employee termination charges $ 664 $ 4,698 $ ( 4,259 ) $ ( 7 ) $ 1,096 Lease contract termination and other charges — 44 ( 8 ) ( 15 ) 21 Total Restructuring and other charges $ 664 $ 4,742 $ ( 4,267 ) $ ( 22 ) $ 1,117 23 Table of Contents