NETGEAR

NTGR

Communication Equipment · Technology

Price

$21.02

-0.08 (-0.38%)

Market Cap

$564.2M

Exchange

NASDAQ

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Jun 28, 2026

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Weak

Stability

Data not available

Valuation

Data not available

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Share count falling — buybacks

−6.8% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 31.0M (2021) → 28.9M (2025)

Winston Score History

The full picture

NETGEAR makes Wi-Fi routers, network switches, and internet security cameras for homes and small businesses. Its best-known brands are Orbi (mesh Wi-Fi systems) and Arlo (smart home cameras), though Arlo was spun off as a separate public company. NETGEAR sells its gear through big retailers like Best Buy and Amazon, as well as directly to consumers online.

The company earns money mainly by selling hardware, with a smaller and growing portion coming from subscriptions tied to its Orbi Pro and security services. It operates globally, with meaningful sales in North America and Europe, and generates roughly $600 million in annual revenue. Its brand recognition and retail shelf space provide some competitive footing, but NETGEAR faces intense price pressure from larger rivals like TP-Link and Eero (owned by Amazon). The key challenge is returning to profitability as consumers spend less on home networking upgrades following the pandemic-era boom.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-1.2% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-22.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$79M/ year

→ Flat (-3% vs prior year)

11.4% of revenue

Below sector average (15%)

Steady R&D investment year-over-year

Insider Activity

5.5%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

~5 years

$277M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

$277M cash & investments at current burn rate

Revenue declining

NETGEAR's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

40.2%

Healthy — 40.2% gross margin

Profit after running costs

Operating Margin

-5.0%

Losing money on operations — -5.0%

Return on the money invested

ROCE

-6.4%

Weak — -6.4% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-1.4%

Shrinking sales (-1.4% YoY)

Profit growth

EPS YoY

-165.3%

Earnings shrinking (-165.3% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

-2.8%

Burning cash (-2.8%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

N/A

—

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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