Netgear (NTGR) Q4 Loss Narrows To US$0.7m And Tests Bearish Profitability Narratives

NETGEAR (NTGR) has wrapped up FY 2025 with Q4 revenue of US$182.5 million and a basic EPS loss of US$0.02, while trailing twelve month revenue sits at US$699.6 million with a basic EPS loss of US$0.63. Over recent quarters, revenue has moved between US$162.1 million and US$184.6 million per quarter, as basic EPS shifted from a loss of US$0.31 in Q4 2024 to a loss of US$0.02 in Q4 2025. This sets up a story where investors are weighing gradual revenue progress against still thin margins and ongoing losses.

See our full analysis for NETGEAR.

With the headline numbers on the table, the next step is to see how this earnings profile lines up with the strongest narratives around NETGEAR, and where the recent results may push investors to rethink those stories.

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Losses Tighten From US$8.9m To Under US$1m

• Net income for Q4 2025 was a loss of US$0.7 million, compared with a Q4 2024 loss of US$8.9 million, while basic EPS moved from a loss of US$0.31 to a loss of US$0.02 over the same quarters.
• What stands out for a bearish view focused on widening losses over five years is that the trailing twelve month loss of US$17.9 million sits against quarterly results that show smaller losses in each 2025 quarter. This means:
  • Bears highlight that losses have increased at a 26.4% annual rate over five years, yet Q1 to Q4 2025 each reported losses between US$0.7 million and US$6.4 million, smaller than the US$8.9 million loss in Q4 2024.
  • Critics of the stock still point to forecasts of ongoing unprofitability over the next three years. Even with recent quarters looking less loss heavy than some past periods, the bearish concern about earnings risk remains tied to that multi year pattern.

TTM Revenue Around US$700m With 3.5% Growth

• On a trailing twelve month basis, revenue is about US$699.6 million, compared with earlier trailing figures between US$671.2 million and US$699.6 million, and the data cites revenue growth of roughly 3.5% per year versus a 10.3% per year reference rate for the wider US market.
• For a bullish angle that focuses on quiet underlying progress, this steady revenue line, moving between US$162.1 million and US$184.6 million per quarter in 2025, sits alongside continued losses, which creates a mixed picture:
  • Supporters can point out that revenue has not fallen away sharply, with Q4 2025 revenue of US$182.5 million close to the US$182.4 million reported in Q4 2024, matching the idea of a stable top line.
  • At the same time, the fact that the company is still loss making on US$699.6 million of trailing twelve month revenue means the bullish story depends on margin improvements that are not shown in the numbers yet.

P/S Of 0.8x And Big Gap To DCF Fair Value

• At a share price of US$19.87, the stock is quoted on a P/S of 0.8x compared with 1.6x for peers and 2.0x for the wider US Communications group. The data describes the price as about 67.7% below a DCF fair value of US$61.59 and below an analyst price target of US$36.67.
• What supports a bullish valuation story is how these discounts line up against the company still being unprofitable, which creates a clear tension between price and fundamentals:
  • Supporters point to the 0.8x P/S and the gap to the US$61.59 DCF fair value as signs the market is pricing in a lot of caution, even though trailing twelve month revenue has held around US$699.6 million.
  • On the other side, the forecast that NETGEAR may remain loss making over the next three years means the low P/S and the gaps to the DCF value and the US$36.67 target are being weighed against a business that has not yet turned those revenues into positive net income.

To see how other investors connect these numbers into a bigger story, you can read a full consensus style narrative on the company through 📊 Read the full NETGEAR Consensus Narrative..

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on NETGEAR's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Explore Alternatives

NETGEAR is still reporting losses on roughly US$699.6 million of trailing twelve month revenue, with forecasts pointing to ongoing unprofitability over the next three years.

If those continuing losses make you want more resilient options, check out 79 resilient stocks with low risk scores to quickly zero in on companies where earnings risk looks more contained.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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