NETGEAR, Inc. (NTGR): Business Model Canvas [Dec-2025 Updated]

You're trying to figure out if NETGEAR, Inc. (NTGR) is still just a box-seller or if its pivot is finally paying off, and honestly, the numbers from late 2025 tell a compelling story. We're looking at a company where the Enterprise segment is roaring-up 15.7% YoY to $90.8 million in Q3 2025-while the recurring subscription revenue base is now pushing close to $35 million annually, even as total Q3 Net Revenue settled at $184.6 million. This Business Model Canvas breaks down exactly how NETGEAR, Inc. (NTGR) balances its legacy hardware sales with its higher-margin software ambitions, showing you the key partnerships and cost pressures driving the whole operation right now.

NETGEAR, Inc. (NTGR) - Canvas Business Model: Key Partnerships

You're looking at the structure that powers NETGEAR, Inc.'s market reach and technology validation, especially as they pivot more toward the Enterprise segment. Here's the breakdown of the key players NETGEAR, Inc. relies on, using the latest figures from their late 2025 reporting.

The Pro AV segment, a key driver for the Enterprise business unit which posted $90.8 million in revenue for Q3 2025, is heavily reliant on deep technical alliances. NETGEAR, Inc. has successfully scaled this ecosystem to reach 500 AV partners as of the Q3 2025 earnings call.

This partnership strategy is formalized through industry groups and specific technology integrations:

• Steering member of the SDVoE Alliance, driving AV-over-IP standards.
• The joint training effort with the SDVoE Alliance has seen the SDVoE Academy attract over 6,000 students and deliver more than 120 courses.
• Interoperability validation with technology providers like Intel for SMPTE ST 2110-capable switches.
• Also supports the Alliance for IP Media Solutions (AIMS) for IPMX standards.

For the consumer and security offerings, the partnership with Bitdefender for NETGEAR Armor remains central. This service, available on Orbi and Nighthawk routers, provides unified security. The Armor Plus tier extends protection to mobile devices, covering up to 50 devices with unlimited VPN, and the Account Privacy feature monitors up to 10 email accounts for breaches.

Distribution and channel partners are critical for moving product, which, across all segments, generated $184.6 million in net revenue in Q3 2025. NETGEAR, Inc. utilizes a multi-channel approach that includes:

The commitment to channel enablement is clear; NETGEAR, Inc. sells through wholesale distributors, direct market resellers, and VARs. Honestly, building out that channel support is how they expect to see growth in the NETGEAR for Business segment throughout 2025.

NETGEAR, Inc. (NTGR) - Canvas Business Model: Key Activities

You're looking at the core actions NETGEAR, Inc. is taking to drive its transformation, especially as it pivots toward higher-margin, recurring revenue streams. Here's the breakdown of what they are actively doing right now, grounded in their late 2025 performance data.

In-house software development and AI integration (post-VAAG Systems acquisition)

NETGEAR, Inc. is heavily investing in building out its software capabilities internally, a move cemented by the acquisition of VAAG Systems. This activity focuses on leveraging artificial intelligence (AI) to simplify networking for small and medium enterprises (SMEs). The goal is to accelerate the in-sourcing of software development, with the Chennai Software Development Center forming the foundation.

• The VAAG Systems team brings expertise from companies like Qualcomm, HP, Cisco, and MaxLinear.
• NETGEAR, Inc. plans to rapidly expand the engineering team in Chennai by more than 100 employees over the next 12 to 18 months following the acquisition.
• The company plans to accelerate its investment in Research and Development (R&D) over the next three years to enhance business offerings, with AI integration being a key focus.

Research and development (R&D) for next-gen WiFi 7 products

While specific WiFi 7 product launch revenue isn't public yet, the commitment to R&D is a clear key activity supporting future product cycles. This is part of the broader plan to enhance current business offerings and create next-generation networking solutions.

For context on the financial commitment to innovation, consider the overall financial health supporting these investments:

Outsourced hardware manufacturing and global supply chain management

NETGEAR, Inc. relies on outsourced manufacturing, making global supply chain management a critical activity to ensure product availability and margin control. This was evident in Q3 2025, where supply chain improvements helped performance, but headwinds remain a concern.

The execution here directly impacts profitability, as seen by the expected margin pressure:

• The company expected a headwind to its gross margins of about 150 bps in Q4 2025, mainly related to the rising cost of memory as several main suppliers exited the DDR4 market.
• Strong demand for ProAV managed switch products in Q3 2025 was enabled by the company navigating supply headwinds.

Go-to-market execution for the high-margin Enterprise segment

Executing the go-to-market strategy for the Enterprise segment, recently rebranded as NETGEAR Enterprise, is a top priority, given its superior profitability. This segment's success is central to the company's overall margin expansion efforts.

The performance metrics clearly show this focus:

The SME sector, which the Enterprise business primarily serves, saw over 15% revenue growth in Q4 2024 and double-digit growth was anticipated for 2025. Also, the commercial business was officially rebranded to NETGEAR Enterprise starting in Q4 2025 to clarify market positioning.

Expanding subscription service features and subscriber base

Growing the subscription service, NETGEAR Armor, is a stated strategic priority, as it drives high-margin, recurring revenue. The activity involves continuous feature enhancement, such as the launch of a unified security solution for SMEs following the Exium acquisition, which is an all-in-one SASE and hybrid firewall platform.

The growth in this area is quantifiable:

• The Armor subscription service reached $37.9 million in Annual Recurring Revenue (ARR) as of Q3 2025.
• This ARR represented a year-over-year increase of 17.2% from the prior year period.

If onboarding for new security features takes 14+ days, churn risk rises.

NETGEAR, Inc. (NTGR) - Canvas Business Model: Key Resources

You're looking at the core assets NETGEAR, Inc. (NTGR) relies on to execute its strategy as of late 2025. These aren't just line items; they are the engines driving revenue and competitive advantage.

Brand Equity and Product Strength

The strength of NETGEAR, Inc.'s brand equity is anchored by its flagship product lines, which millions of users trust daily for critical connectivity. This trust is a massive intangible asset, especially as the company pivots more toward higher-margin enterprise solutions.

The consumer side is heavily reliant on these established names:

• Orbi: Known for creating seamless mesh WiFi networks, with the latest iterations like the Orbi 970 Series featuring exclusive patented quad-band technology with Enhanced Dedicated Backhaul.
• Nighthawk: Represents the high-performance, advanced router segment, exemplified by WiFi 7 models like the Nighthawk RS700S and RS300.
• ProSAFE: This brand is integral to the growing Enterprise segment, supporting the ProAV managed switch line that saw 15.7% year-over-year revenue growth in Q3 2025.

Financial Liquidity

A strong balance sheet provides the flexibility for strategic investments, share repurchases, and weathering any near-term supply chain volatility. NETGEAR, Inc. maintained a solid cash position exiting the third quarter of fiscal 2025.

Here's the quick math on their liquidity:

The company used approximately $20.0 million to repurchase shares in Q3 2025, showing a commitment to returning capital while maintaining significant liquidity. What this estimate hides is the working capital changes that also impacted the cash balance that quarter.

Intellectual Property and Technology

NETGEAR, Inc.'s ability to differentiate its premium products stems directly from its proprietary technology. This is not just about hardware specifications; it's about patented methods that deliver tangible user benefits.

The core technological assets include:

• Patented Mesh WiFi Technology: Specifically, the patented quad-band technology in the Orbi 970 Series, which ensures consistent, high-speed performance across large areas for up to 200+ concurrent devices.
• AI and Cloud IP: Acquired via the VAAG Systems purchase, this IP focuses on AI-driven network troubleshooting, which is now foundational for the Chennai software center's work.

Global Distribution and Channel Network

Product availability is non-negotiable, and NETGEAR, Inc. leverages an extensive, multi-faceted global network to place its devices in front of consumers and businesses worldwide. This network supports both its legacy consumer business and its strategic push into the Enterprise space.

The distribution structure is comprehensive:

• Global Footprint: The company maintains a global presence with offices in 25 major regions.
• Wholesale Distributors: Key partners include Ingram Micro, Inc., TD Synnex, and D&H Distributing Company, supplying the broader channel.
• Key Retailers: Direct relationships exist with major players like Amazon.com, Inc., Best Buy Co., Inc., and Wal-Mart Stores, Inc.
• Business Channel: An extensive network of Direct Market Resellers (DMRs) like CDW Corporation and Value-Added Resellers (VARs) serves the business marketplace.

Software Development Center

A critical strategic resource for the future is the in-sourcing of software development, which is key to shifting the business model toward recurring revenue and differentiated enterprise offerings. The new center in Chennai is the physical embodiment of this effort.

Details on this key investment include:

This center is focused on creating next-generation AI and Cloud-based platforms to simplify networking for small and medium enterprises. Finance: draft 13-week cash view by Friday.

NETGEAR, Inc. (NTGR) - Canvas Business Model: Value Propositions

You're looking at the core value NETGEAR, Inc. (NTGR) is delivering across its key customer segments as of late 2025. It's a story of premium performance meeting necessary security, especially as the company pivots more toward its higher-margin Enterprise business.

Consumers: Whole-home WiFi coverage up to 10,000 sq. ft. and speeds up to 27Gbps (Orbi 970)

For the home user demanding the absolute best in connectivity, the value proposition centers on the Orbi 970 Series, which leverages Wi-Fi 7 technology. This system is engineered to deliver whole-home coverage spanning up to 10,000 sq. ft. with a three-pack configuration. You get the promise of wireless speeds reaching up to 27 Gbps, which is 2.4X faster than Wi-Fi 6. This level of performance is designed to handle demanding tasks like 4K/8K streaming and AR/VR simultaneously for a capacity of up to 200 connected devices. Plus, the initial purchase includes a 1-year subscription to NETGEAR Armor protection.

Here's a quick look at the premium home offering:

SMBs: Simplified, scalable, and secure networking solutions (NFB focus)

The focus for Small and Medium Businesses (SMBs), now largely consolidated under the NETGEAR Enterprise branding, is on delivering simplified, scalable, and secure networking. This strategic shift is showing up in the financials; the Enterprise segment delivered revenue of $90.8 million in Q3 2025, marking a 15.7% year-over-year increase. The operational success is clear, as this segment achieved a record non-GAAP gross margin of over 50% in that same quarter. Furthermore, the company is building stickiness through recurring revenue, with Annual Recurring Revenue (ARR) hitting $37.9 million, a 17.2% year-over-year increase, supported by 560,000 recurring subscribers. The security aspect is bolstered by the recent launch of a new cybersecurity solution based on the Exium acquisition.

ProAV: High-performance, easy-to-deploy managed switches for AV-over-IP

For the Professional Audio/Video (ProAV) market, NETGEAR, Inc. (NTGR) offers high-performance managed switches, like the M4350 series, which simplify complex AV-over-IP deployments. The company supports this ecosystem by partnering with approximately 450 manufacturers. These switches feature advanced capabilities such as built-in grandmaster clock and boundary clock functionality for SMPTE ST 2110 broadcast applications. The ease of deployment is a major value point; the Engage Controller software can auto-discover and configure hundreds of ports, with one demo showing a 200+ port network set up in under 10 minutes. The M4250 and M4350 lines support over 400 different manufacturer protocols, including Dante and AES67.

The ProAV focus is driving segment growth:

• Sequential growth in managed switch revenue was 16% in Q3 2025.
• The M4250/M4350 lines support over 400 manufacturer protocols.
• Setup time for a 200+ port network can be under 10 minutes with the controller.

Security: Comprehensive cybersecurity and support via NETGEAR Armor

Security is integrated across the portfolio, with NETGEAR Armor, powered by Bitdefender, acting as a primary value-add. Based on 2025 data, the platform protects 6.1 million homes and monitors 58 million IoT devices, blocking over 12 million threats daily. The threat landscape is intense, with each protected home facing an average of about 29 attacks every day. For subscribers, this translates to tangible benefits: 80% of Armor Plus subscribers specifically chose the service for its network protection and VPN capabilities, and 70% report greater peace of mind online. This protection sits at the network edge, securing every connected device, which is critical since over half of smart home vulnerabilities come from streaming devices (26%), smart TVs (21%), and IP cameras (9%).

Finance: review Q4 guidance impact from DDR4 memory costs by next week.

NETGEAR, Inc. (NTGR) - Canvas Business Model: Customer Relationships

You're looking at how NETGEAR, Inc. engages with and retains its diverse customer base, which spans from home users to small and medium enterprises (SMEs). The strategy clearly leans into recurring revenue and specialized support channels as of late 2025.

Dedicated DRIVE Partner Success Program for business partners

NETGEAR Enterprise launched the DRIVE Partner Success Program in November 2025, signaling a major commitment to its channel partners serving SMEs. This program is built around three tiers designed to reward service excellence and long-term co-investment: IGNITE, APEX, and APEX MSP. Existing partners will transition to this new structure by January 1, 2026. The program is supported by a new dedicated partner portal for self-service capabilities, technical information, and sales resources.

The focus on the business segment is clear from the financial performance; the NETGEAR For Business (NFB) Segment reported revenue of $82.6 million in the second quarter of fiscal year 2025, marking an 38.0% year-over-year increase. The company forecasts double-digit growth for the NFB segment for the entirety of fiscal year 2025.

Automated, app-based setup and management for home products

For the Connected Home segment, NETGEAR, Inc. relies heavily on simplifying the initial user experience and ongoing management through mobile applications. The management of security services like NETGEAR Armor is handled via the Nighthawk or Orbi mobile apps, which allow for setup and management of features like Active Vulnerability Scans and Web Protection at the router level. While a specific adoption rate for app-based setup isn't public, the security service itself shows strong adoption.

The company reported over 958,000 subscribers by the end of Q2 2024, with 544,000 recurring subscribers driving a 30% year-over-year growth in recurring subscriber revenue in that period. Furthermore, anonymized insights from the 6.1 million homes protected by NETGEAR Armor in 2025 showed that technologies blocked 12 million threats daily across connected homes worldwide.

24/7 Priority Tech Support included with Armor Plus subscription

NETGEAR, Inc. has bundled enhanced support directly into its premium subscription tier. The Armor Plus service costs $149.99/year. This tier now includes 24/7 priority tech support accessible via chat, email, and phone, which was previously a separate offering. It also includes an extended hardware warranty, moving from the standard one-year coverage to a three-year warranty covering repairs, accidental damage, and free express replacement service.

The standard Armor service remains priced at $99.99/year, even with the added warranty and support features now bundled into it. The Armor Plus tier adds value by including unlimited VPN for up to 50 devices, unlimited Adblocking, and unlimited Anti-tracking.

• Armor Plus Annual Cost: $149.99
• Standard Armor Annual Cost: $99.99
• Armor Plus VPN Device Limit: Up to 50 devices
• Hardware Warranty Extension (with Armor/Armor Plus): From 1 year to 3 years

Professional services and direct engagement for business clients

Direct engagement for business clients is formalized through the NETGEAR For Business (NFB) segment, which is expanding its solutions-based differentiation. A key part of this direct engagement is the launch of the AV Professional Services group, designed to give customers expert engineering support during mission-critical deployments, particularly for ProAV managed switches. The company's AV Manufacturing partnership count grew to approximately 460 as of Q2 2025, indicating a deepening relationship with solution integrators.

The NFB segment's revenue reached $82.6 million in Q2 2025, a significant 38.0% increase year-over-year. The non-GAAP gross margin for this segment was 46.7% in the same quarter, showing a strong margin profile from direct business engagement.

• Q2 2025 NFB Revenue: $82.6 million
• Q2 2025 NFB Revenue Growth (YoY): 38.0%
• Q2 2025 NFB Non-GAAP Gross Margin: 46.7%
• Total AV Manufacturing Partners: Approximately 460

NETGEAR, Inc. (NTGR) - Canvas Business Model: Channels

You're looking at how NETGEAR, Inc. gets its products-from high-end ProAV switches to Orbi mesh systems-into the hands of customers. The channel strategy is clearly bifurcated, with a strong push in the high-margin Enterprise/NFB space contrasting with the more volume-driven, lower-margin Connected Home side.

Major e-commerce platforms and NETGEAR.com

Direct-to-consumer sales via NETGEAR.com remain a significant, high-touch channel, especially for premium and subscription-attached products. For October 2025, online sales through NETGEAR.com totaled $16,452,999. This channel shows a strong preference for desktop purchasing, with 95% of sales finalized on desktop devices, leaving only 5.3% from mobile web sessions. This direct channel is actively managed to drive attach rates for services like Armor subscription, which contributed $37.9 million in Annual Recurring Revenue (ARR) as of Q3 2025, up 17.2% year-over-year.

Global retail presence (24,000 locations approx.)

While the specific figure of 24,000 global retail locations isn't confirmed in the latest data, the performance of the Home Networking segment reflects the health of this broad retail channel, which includes major big-box stores and online marketplaces. The Home Networking segment generated $72.6 million in revenue for the third quarter of 2025. This segment's revenue was $67.5 million in the second quarter of 2025. The company has historically focused on penetrating tier 2 and tier 3 cities through channel development to expand this physical footprint.

Value-Added Resellers (VARs) and distributors

The strength in the NETGEAR for Business (NFB) segment is heavily reliant on a robust network of VARs and distributors who handle the complexity of enterprise and SMB sales, including ProAV and managed switches. The NFB segment is a key driver, posting revenue of $90.8 million in Q3 2025, marking a 15.7% increase year-over-year. This channel is crucial for delivering the high-margin, high-ASP (Average Selling Price) products that resulted in a Non-GAAP gross margin of 51.0% for the Enterprise segment in Q3 2025. The company's focus on adding security via the Exium acquisition is also channeled through these partners to enhance the NFB offering.

Direct sales force for Enterprise/NFB segment

A dedicated direct sales force supports the VAR/distributor channel, focusing on key growth areas like ProAV managed switches within the NFB segment. The NFB segment revenue was $82.6 million in Q2 2025, showing a substantial 38.0% year-over-year growth. The segment's Non-GAAP contribution margin reached 19.3% in Q2 2025, indicating effective management of the direct and indirect sales motions. The company had 223 employees in sales, marketing, and support as of December 31, 2024, showing a focus on front-end positions.

Mobile carriers for mobile hotspot products

Mobile hotspot products are distributed primarily through service provider channels, i.e., mobile carriers. The Mobile segment revenue for Q3 2025 was $21.1 million, down 20.7% year-over-year, showing the competitive nature of this channel. In the preceding quarter (Q2 2025), the Mobile segment revenue was $20.4 million, down 16.1% year-over-year. Management noted they continue to add new channel partners, citing a planned launch of the M7 Pro with O2 in the UK during Q4 2025. Service provider revenues for the full year 2024 totaled $91.01 million.

Here's a quick look at the segment revenue performance, which directly reflects the success across these varied channels:

The trailing twelve-month revenue as of September 30, 2025, stood at $700 million. The company's overall channel strategy is clearly prioritizing the Enterprise/NFB segment for growth and margin expansion, as evidenced by its superior revenue growth compared to the Home Networking and Mobile segments.

NETGEAR, Inc. (NTGR) - Canvas Business Model: Customer Segments

You're looking at the hard numbers for where NETGEAR, Inc. is actually making its money as of late 2025. The focus has clearly shifted, but the consumer base still matters.

High-end Consumers/Prosumers (demanding multi-gigabit WiFi 7)

This group is served by the Home Networking segment, which saw revenue of $72.6 million in the third quarter of fiscal 2025, a 6.6% decrease year-over-year. Still, the segment gained sequential market share in the U.S. and Europe, driven by WiFi 7 product offerings. The market for WiFi 7, which supports applications like 8K streaming and AR/VR, is expected to see shipments represent over a third of Indoor AP revenues in 2025. This customer base relies on the latest standards for high-bandwidth, low-latency connectivity.

Small to Medium Enterprises (SMEs) (primary growth focus for 2025)

NETGEAR, Inc. has sharpened its focus here, calling this the Enterprise Segment (formerly NETGEAR for Business or NFB). This segment delivered revenue of $90.8 million in Q3 2025, marking a 15.7% increase year-over-year. The company forecasted double-digit growth for this segment for the full year 2025, following over 15% revenue expansion in the prior quarter. The strategy is to deliver simplicity and reliability, moving away from overly complex systems that SMEs don't need.

The investment in this segment is substantial, including the acquisition of VAAG Systems to build a new Software Development Center focused on AI-driven networking for SMEs.

Audio-Visual (AV) System Integrators and Installers

This group falls within the Enterprise Segment and is a key driver of its growth, specifically through ProAV Managed Switches. Management noted material improvement in shipments of these market-leading ProAV managed switch products during Q3 2025. The company is reinforcing its position as a leader in AV-over-IP technology, supporting an ecosystem of 400 AV industry partners.

Mobile Users needing portable 5G connectivity

The Mobile segment is the smallest of the three reported units. In Q3 2025, this segment generated revenue of $21.1 million, which was a 20.7% decline year-over-year. Revenue for this segment in Q2 2025 was $20.4 million, down 16.1% year-over-year. The company is awaiting new product introductions to boost this revenue line, with Q3 revenue anticipated to be in line with Q2.

Key product offerings for this segment include the Nighthawk 5G M7 Hotspot.

Here's the quick math on the segment revenue performance for the third quarter of fiscal 2025:

The total Net Revenue for NETGEAR, Inc. in Q3 2025 was $184.6 million.

The primary customer groups NETGEAR, Inc. designs hardware for are consumers and small-to-medium-sized businesses (SMBs).

• The Enterprise Segment (Business) achieved a non-GAAP gross margin of 51.0% in Q3 2025.
• The Home Networking Segment achieved a non-GAAP gross margin of 27.7% in Q3 2025.
• The Mobile Segment achieved a non-GAAP gross margin of 31.0% in Q3 2025.

Finance: draft 13-week cash view by Friday.

NETGEAR, Inc. (NTGR) - Canvas Business Model: Cost Structure

You're looking at the cost side of NETGEAR, Inc. (NTGR) as of late 2025. The structure shows a clear pivot, moving away from pure hardware volume toward higher-margin enterprise and recurring revenue streams, which changes the cost profile significantly.

Cost of Goods Sold (COGS) for outsourced hardware production

The cost of the actual hardware, COGS, is heavily influenced by the success of inventory management and product mix. NETGEAR, Inc. outsources its hardware production, making component costs and logistics critical. The non-GAAP gross margin for Q3 2025 hit a record high, reported as above 39%. This margin expansion is directly tied to moving past older, higher-cost inventory and a favorable shift in product mix. For context, the Q3 2025 Net revenue was $184.6 million.

R&D expenses for software and next-gen product development

Research and Development (R&D) is a key area of strategic investment, particularly for software capabilities and next-generation products like WiFi 7 solutions. In Q2 2025, non-GAAP R&D expense represented 11.6% of net revenue. This spending is being strategically funded by cost savings elsewhere, with management explicitly stating they are reinvesting savings into areas like insourcing software development capabilities. The focus is on building out the software differentiation that supports the higher-margin NETGEAR for Business (NFB) segment.

Sales, General, and Administrative (SG&A) for global marketing and retail presence

SG&A covers the costs of maintaining a global footprint, marketing, and sales channels, including retail presence. While a direct SG&A number isn't explicitly isolated for a single quarter, total non-GAAP operating expenses for Q2 2025 were $65,700,000. This figure reflects the costs before the full impact of the January 2025 restructuring was realized in later quarters, as headcount increased sequentially in Q2 to catch up on hiring plans.

Supply chain costs, including rising DDR4 memory and logistics (Q4 2025 headwind)

Supply chain costs remain a dynamic factor. While specific DDR4 memory cost increases aren't quantified, the overall environment in late 2025 points to continued pressure. Reports for Q4 2025 suggest logistics operations will hinge on proactive planning due to capacity constraints and economic pressure, with analysts forecasting increased rates and volatility. For NETGEAR, Inc., persistent supply constraints for specific managed switch products in the NFB segment have limited the ability to fully capture demand, which impacts the efficiency of the entire supply chain cost structure. The company has been actively working to reduce finished goods inventory, which decreased by approximately $86 million year-over-year at the end of Q4 2024, indicating a past effort to manage high-cost inventory carrying costs.

Operating expense restructuring savings (over $20 million annually)

A major cost control action was the restructuring initiative implemented in January 2025. This move is designed to streamline operating costs and is projected to reduce annual operating expenses by over $20 million annually. These realized savings are being redeployed directly into growth opportunities, primarily within the NFB segment, rather than simply dropping to the bottom line.

Here's a look at the key cost and efficiency metrics available:

The shift in cost focus is clear: managing outsourced hardware COGS through mix and inventory, while aggressively funding R&D for software differentiation, all while extracting structural savings from SG&A. It's defintely a leaner operational model now.

NETGEAR, Inc. (NTGR) - Canvas Business Model: Revenue Streams

You see the core of NETGEAR, Inc.'s revenue still rests on selling physical networking gear, which is the primary driver. For the third quarter ending September 28, 2025, the total net revenue came in at $184.6 million. This was up 0.9% year-over-year, showing they are holding steady on the top line while focusing on margin improvement.

The Enterprise segment is definitely the star performer right now, pulling in $90.8 million in revenue for Q3 2025. That segment grew by a solid 15.7% year-over-year, largely thanks to strong demand for their ProAV managed switch products. To be fair, the Home Networking segment revenue was $72.6 million, down 6.6% year-over-year, and the Mobile segment brought in $21.1 million, which was down 20.7% year-over-year.

Here's a quick look at how the revenue streams broke down in that latest quarter snapshot:

The recurring subscription revenue stream is growing nicely, which is key for future stability. As of Q3 2025, the Annual Recurring Revenue (ARR) reached $37.9 million, marking a 17.2% year-over-year increase, supported by 560,000 total recurring subscribers. This recurring income comes from services like Armor and Parental Controls, helping to smooth out the lumpiness of hardware sales.

The pricing structure for the security offering, NETGEAR Armor, is tiered, which helps capture different levels of customer willingness to pay:

• Armor subscription cost: $99.99/year.
• Armor Plus subscription cost: $149.99/year.

The Armor Plus tier includes everything in the standard Armor, plus extras like unlimited VPN and unlimited Adblocking for up to 50 devices. Finance: draft 13-week cash view by Friday.