NETGEAR Inc (NTGR) 2025 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. At this time. (Operator Instructions) I would now like to turn the conference over to Erik Bylin.

女士們、先生們，感謝你們的耐心等待。此時。（操作員指示）現在我將把會議交給埃里克·拜林。

Thank you, operator. Good afternoon and welcome to next year's fourth quarter and full year 2025 financial results conference call. Joining us from the company are Mr. CJ Prober, CEO, and Mr. Brian Murray, CFO.

謝謝接線生。下午好，歡迎參加明年第四季及2025年全年財務業績電話會議。公司方面，執行長 CJ Prober 先生和財務長 Brian Murray 先生也來到了現場。

The format of the call will start with commentary on the business provided by CJ, followed by a review of the financials for the fourth quarter and full year, and guidance for the first quarter of 2026 provided by Bryan. We'll then have time for any questions. If you have not received a copy of today's release, please visit NETGEAR's investor relations website at www.netgear.com.

電話會議的形式將首先由 CJ 對公司業務進行評論，然後由 Bryan 回顧第四季度和全年的財務狀況，並給出 2026 年第一季的業績指引。之後我們會預留時間回答大家的問題。如果您尚未收到今天發布的新聞稿，請造訪 NETGEAR 的投資者關係網站 www.netgear.com。

Before we begin the formal remarks, we advise you that today's conference call contains forward-looking statements. Forward-looking statements include statements regarding expected revenue, gross and operating margins, expenses, tax expense, and future business outlook.

在正式發言之前，我們提醒各位，今天的電話會議包含前瞻性陳述。前瞻性陳述包括有關預期收入、毛利率和營業利潤率、支出、稅收支出和未來業務前景的陳述。

Actual results or trends could differ materially from those contemplated by these forward-looking statements. For more information, please refer to the risk factors discussed in next year's periodic filings with the SEC, including the most recent Form 10-Q.

實際結果或趨勢可能與這些前瞻性陳述所設想的結果或趨勢有重大差異。有關更多信息，請參閱明年向美國證券交易委員會提交的定期文件中討論的風險因素，包括最新的 10-Q 表格。

Any forward-looking statements that we make on this call are based on assumptions as of today, and NETGEAR undertakes no obligation to update these statements as a result of new information or future events except as required by law.

我們在本次電話會議中所做的任何前瞻性陳述均基於截至今日的假設，除法律要求外，NETGEAR 不承擔因新資訊或未來事件而更新這些陳述的義務。

In addition, several non-GAAP financial measures will be mentioned on this call. A reconciliation of the non-GAAP to GAAP measures can be found in today's press release on our investor relations website.

此外，本次電話會議也將提及幾個非GAAP財務指標。有關非GAAP指標與GAAP指標的調節表，請參閱我們投資者關係網站上今天發布的新聞稿。

At this time, I would now like to turn the call over to CJ.

現在，我想把電話交給CJ。

Thanks, Erik, and thank you all for joining us today. I have just completed my second year with NETGEAR, and I'm exceedingly proud of the team and the results that we've delivered. After years of declining revenue, NETGEAR turned the corner in 2025 and delivered the first year of revenue growth since 2020, and record gross margins on top of that, leading to full year non-GAAP profitability.

謝謝艾瑞克，也謝謝各位今天蒞臨現場。我在NETGEAR工作的第二年剛結束，我為團隊和我們所取得的成果感到無比自豪。經過多年的收入下滑，NETGEAR 在 2025 年扭轉了局面，實現了自 2020 年以來的首次收入增長，並且毛利率也創下歷史新高，最終實現了全年非 GAAP 盈利。

This turnaround comes at a time when NETGEAR is celebrating its 30-year anniversary with much promise for the years ahead, given our core strengths and the macro tailwinds that we outlined during our investor day in November.

NETGEAR 迎來 30 週年慶典之際，公司實現了這項轉變。鑑於我們的核心優勢以及我們在 11 月投資者日上概述的宏觀利好因素，NETGEAR 對未來幾年充滿希望。

Today I'll cover a review of our 2025 accomplishments and give some color on our expectations for the year ahead.

今天我將回顧我們 2025 年的成就，並展望我們對未來一年的期望。

I am extremely pleased with what we accomplished last year, and I want to remind everyone that the groundwork for our 2025 performance began in 2024.

我對我們去年的成就感到非常滿意，我想提醒大家，我們為 2025 年的業績所做的準備工作始於 2024 年。

Our objective during my first year was to correct foundational operational challenges NETGEAR faced, and we dug deep into the blocking and tackling of the organization to align a team that could deliver on the revenue opportunities while heeding the cost constraints required to turn NETGEAR's trajectory.

我第一年的目標是糾正 NETGEAR 面臨的基礎營運挑戰，我們深入研究了組織的運作機制，組建了一支能夠抓住收入機會，同時又能兼顧成本限制的團隊，以扭轉 NETGEAR 的發展軌跡。

As we moved into 2025, the emphasis turned back to the transition to growth as we worked to improve the margin profile of each business and translate that to improved profitability.

進入 2025 年，我們的重點重新轉向成長轉型，努力改善每項業務的利潤率，並將其轉化為更高的獲利能力。

Nowhere are our success and progress clearer than our full year financial performance. The momentum building behind NETGEAR's transformation clearly took off in 2025.

我們的全年財務表現最能反映我們的成功和進步。NETGEAR轉型背後的發展動能在2025年明顯加速。

Given our goal of entry in the year and the results we're sharing today, I'm proud to say that 2025 was a financial and operational success. I want to wholeheartedly thank the team here for their dedication and diligence that's been the engine of this achievement.

鑑於我們今年的目標以及我們今天分享的結果，我很自豪地說，2025 年在財務和營運方面都取得了成功。我要衷心感謝團隊的奉獻與勤奮，正是他們的努力成就了今天的輝煌。

We began in 2025 with a restructuring that whole investments in the business to ensure the spend was properly aligned with the greatest opportunities for growth and profitability.

我們從 2025 年開始對整個業務進行重組，以確保支出與最大的成長和獲利機會保持適當的聯繫。

This included the strategic investment in our highest growth opportunities and to find a framework to build our organization throughout the year that not only filled out our ability to capitalize on our opportunities but also improved our execution.

這包括對我們最具成長潛力的機會進行策略性投資，並找到一個框架來建立我們全年的組織，這不僅增強了我們把握機會的能力，而且還提高了我們的執行力。

As we began the year, our initial goal was to reverse the trajectory of our financials. We came into 2025 committing to investors that we would grow revenue.

年初時，我們的首要目標是扭轉財務狀況的下滑趨勢。我們在2025年向投資者承諾，我們將實現收入成長。

Gross margins and reduce our loss position while not quite expecting to be profitable.

提高毛利率並減少虧損，但不指望獲利。

With the diligent effort of the team throughout the year, we were able to dramatically outperform our goals while navigating supply constraints and a substantially leaner channel.

憑藉團隊一年來的辛勤努力，我們在克服供應限制和管道大幅縮減的情況下，取得了遠超預期目標的成績。

Full year revenue grew by more than $25 million and we also expanded our non-GAAP gross margins significantly across each part of the business, resulting in a 920-basis point improvement for the year.

全年營收成長超過 2500 萬美元，我們在業務的各個方面都大幅提高了非 GAAP 毛利率，從而使全年毛利率提高了 920 個基點。

These gains in our topline and operating leverage translated to an improvement of $1.35 in non-GAAP ETS, including delivering non-GAAP net profit in each quarter.

我們的營收和營運槓桿的這些成長轉化為非GAAP ETS 1.35美元的改善，包括每季實現非GAAP淨利。

Importantly, this performance proves that we've placed our bets in the right places and are firmly on the right path.

重要的是，這一成績證明我們押注的方向是正確的，我們正走在正確的道路上。

While delivering stellar financial performance, we were able to drive forward many growth and operational initiatives to improve our outlook for the years to come. I'll now cover a couple of our most important achievements for each business segment in the last year.

在取得優異的財務表現的同時，我們推進了許多成長和營運舉措，以改善未來幾年的發展前景。接下來，我將介紹過去一年中我們各個業務部門所取得的幾項最重要的成就。

A big part of why I joined NETGEAR is that I see an incredible opportunity to differentiate our traditional hardware products by adding substantial value through software. To accelerate this effort in our enterprise business, we successfully acquired two software teams, Bog and Nexium, which are now the foundation of our in-house software capabilities for enterprise.

我加入 NETGEAR 的一個重要原因是，我看到了一個絕佳的機會，可以透過軟體增加實質的價值，使我們的傳統硬體產品脫穎而出。為了加快我們在企業業務中的工作，我們成功收購了兩個軟體團隊 Bog 和 Nexium，它們現在是我們企業內部軟體能力的基礎。

With these acquisitions, we accelerated insourcing of our software development and have made great strides in leveraging AI to fast track our roadmap execution. We also acquired the software stack that powers our ProAV solutions, and we're building an internal team that can drive faster innovation and more customer value than our prior partner dependent development model.

透過這些收購，我們加快了軟體開發的內部化進程，並在利用人工智慧加速執行我們的路線圖方面取得了巨大進展。我們還收購了為我們的專業視聽解決方案提供支援的軟體堆疊，並且我們正在組建一支內部團隊，以推動比我們之前依賴合作夥伴的開發模式更快的創新和更大的客戶價值。

The second big opportunity for next year is to leverage these software investments to expand our subscriptions and services revenue. To further this, we launched our ProAV service team last year.

明年的第二個重大機會是利用這些軟體投資來擴大我們的訂閱和服務收入。為了進一步實現這一目標，我們去年成立了專業視聽服務團隊。

Our new team is helping our customers drive speed to value by providing dedicated best in class support to ensure seamless AV solution deployments. This is just the beginning of our efforts to expand our value proposition, improve customer experiences, and drive higher margin revenue streams.

我們的新團隊致力於為客戶提供一流的專屬支持，以確保無縫部署音訊和視訊解決方案，從而幫助客戶更快地實現價值。這只是我們拓展價值主張、改善客戶體驗、推動更高利潤收入來源的開端。

We also made significant strides in making NETGEAR the preferred vendor to work with across our enterprise AV partner ecosystem. A key point of emphasis for the team was to add AV ecosystem partners throughout the year, and I'm thrilled to share we grew our partner total to 524 by year end, an increase of more than 150 partners in the year.

我們在使 NETGEAR 成為我們企業 AV 合作夥伴生態系統中首選的供應商方面也取得了重大進展。團隊的重點工作之一是全年增加 AV 生態系統合作夥伴，我很高興地宣布，到年底我們的合作夥伴總數已增至 524 家，比前一年增加了 150 多家。

In addition to the software-led product innovation and non-device revenue initiatives, our enterprise go to market transformation made incredible strides in 2025. We evolved our leadership, organization structure, and incentive plans, launched our partner program, revamped our website and partner portal, and changed our pricing, all with the goal of delivering on our promise to customers of being a partner that's easy to do business with.

除了軟體驅動的產品創新和非設備收入計劃外，我們的企業市場轉型在 2025 年取得了巨大的進步。我們改進了領導層、組織結構和激勵計劃，推出了合作夥伴計劃，改造了網站和合作夥伴門戶，並調整了定價，所有這些舉措都是為了兌現我們對客戶的承諾，成為易於合作的伙伴。

For consumer, in 2025, we again proved next year's technical leadership by delivering a slate of innovative, highly lauded new products during the year.

對於消費者而言，在 2025 年，我們再次證明了來年在技術上的領先地位，在這一年中推出了一系列創新且備受讚譽的新產品。

While largely a strategic course correction to fill out our offerings in routers and mesh systems, these new products were met with strong market adoption and importantly stand as a cornerstone to help us expand our share position across the low and medium tiers of the market, while further opening the funnel to our subscription services.

雖然這主要是為了完善我們在路由器和網狀系統方面的產品而進行的策略調整，但這些新產品得到了市場的大力支持，更重要的是，它們成為了幫助我們擴大在中低端市場份額的基石，同時進一步拓展了我們訂閱服務的管道。

And next year's offerings continue to stand out to consumers and professional reviewers alike, collecting a multitude of awards and accolades throughout the year. Given all the progress, we remain extremely well positioned to capitalize on potential federal and state actions that could materially change the market dynamics in this space.

明年推出的產品繼續受到消費者和專業評論家的一致好評，並在全年獲得許多獎項和榮譽。鑑於目前取得的所有進展，我們仍然處於非常有利的地位，可以充分利用聯邦和州政府可能採取的行動，這些行動可能會實質地改變該領域的市場動態。

We also made great strides insourcing our software development capabilities on the consumer side of the business. Our newly formed software teams delivered a great new mobile app that launched with our new M7 mobile hotspot.

我們在消費者業務方面的軟體開發能力內部化方面也取得了長足進步。我們新組建的軟體團隊交付了一款非常棒的全新行動應用程序，該應用程式與我們新推出的 M7 行動熱點一起發布。

This software platform is the go forward foundation of our customer experience for our consumer products. We also capped off the year by growing our ARR in Q4 by 18% as compared to the prior year period, allowing us to end the year with over $40 million in ARR. with the launch of our new M7 mobile hotspot, we have added eSIM monetization to the mix of our subscription and services revenue.

此軟體平台是我們以消費者產品為導向提升顧客體驗的基礎。此外，我們第四季的年度經常性收入（ARR）年增18%，為全年業績畫上了圓滿的句號，最終使ARR超過4000萬美元。隨著新款M7行動熱點的推出，我們新增了eSIM貨幣化業務，進一步豐富了我們的訂閱和服務收入。

From a financial results perspective, I'm thrilled to share that we capped off 2025 on a high note, delivering fourth quarter that marked another tremendous proof point of the momentum we are building.

從財務表現的角度來看，我很高興地宣布，我們以優異的成績為 2025 年畫上了圓滿的句號，第四季度的業績再次有力地證明了我們正在建立的良好勢頭。

With enterprise demand again growing double-digits year over year and strong work by the supply chain team navigating ProAV supply challenges, we were able to come in near the high end of our revenue guidance and exceed the high end of our non-GAAP operating margin for the seventh quarter in a row.

由於企業需求再次達到兩位數年成長，加上供應鏈團隊在應對專業視聽設備供應挑戰方面表現出色，我們得以接近營收預期上限，並連續第七個季度超過非GAAP營業利潤率上限。

Non-GAAP gross margin grew 750 basis points year-over-year in both enterprise and consumer, resulting in record quarterly non-GAAP gross margin of 41.2%. This flows through the bottom line translating to non-GAAP EPS of $0.26 up 117% sequentially.

企業和消費者業務的非GAAP毛利率年增750個基點，季度非GAAP毛利率創下41.2%的歷史新高。此結果體現在淨利潤上，非GAAP每股收益為0.26美元，季增117%。

For the year, we improved our non-GAAP EPS by $1.35 an incredible validation of how the operational changes in 2024 flowed through to improve results in 2025.

今年，我們的非GAAP每股盈餘提高了1.35美元，這有力地證明了2024年的營運變革是如何在2025年改善業績的。

We also bought back roughly 15 million in shares in the fourth quarter with total repurchases in 2025 of approximately $50 million.

我們在第四季也回購了約 1,500 萬股股票，預計到 2025 年將回購總額達到約 5,000 萬美元。

With all we accomplished in 2025, we're entering into 2026 with great momentum. Our philosophy continues to be to aggressively drive our transformation and embrace the inevitable changes that come with this. As such, this week we executed a small restructuring impacting approximately 5% of our employees, including several senior leaders. Unlike in 2025, where we're looking to shift investments to our highest growth opportunities, this restructuring is driven by the opportunity to enable improved business unit empowerment, streamline execution, and ensure we have capacity to onboard the capabilities needed to drive our growth in the years to come.

憑藉我們在 2025 年取得的所有成就，我們帶著強勁的勢頭進入了 2026 年。我們的理念仍是積極推動轉型，並欣然接受隨之而來的必然改變。因此，本週我們進行了小規模重組，影響了約 5% 的員工，其中包括幾位高階領導。與 2025 年我們將投資轉移到成長最快的領域不同，此次重組的驅動力在於能夠更好地賦能業務部門，簡化執行流程，並確保我們有能力引進未來幾年推動成長所需的各項能力。

We remain committed to investing in our transformational initiatives, and these changes have the added benefit of making additional room for those investments.

我們將繼續致力於投資轉型計劃，而這些變化帶來的額外好處是為這些投資騰出了更多空間。

One macro factor impacting our industry is the memory shortage caused by the unprecedented AI data center buildup. We've had success mitigating the situation to date and expect to have a limited gross margin impact in the first half of this year.

影響我們行業的一個宏觀因素是前所未有的 AI 資料中心建設所導致的記憶體短缺。到目前為止，我們已成功緩解了這種情況，預計今年上半年對毛利率的影響有限。

That said, the memory challenges are escalating quickly, and the impact of the second half of the year is uncertain, but rest assured, we're continuing to do everything we can to mitigate these challenges. For our enterprise business, the situation is manageable. Memory is a small percentage of our bill of materials, and we have products that are more expensive with better margins. Also, we've seen and expect to see further industry-wide price increases by many of our competitors.

儘管如此，記憶體方面的挑戰正在迅速加劇，下半年的影響尚不確定，但請放心，我們將繼續盡一切努力減輕這些挑戰。對我們企業而言，這種情況是可以控制的。記憶體只占我們物料清單的一小部分，我們還有其他價格更高、利潤率更高的產品。此外，我們已經看到並預計會看到許多競爭對手進一步提高行業整體價格。

We will follow suit while remaining extremely competitive from a value and price perspective. for consumer, the situation is more challenging given memory represents a higher percentage of the bill of materials, and the products have lower gross margins.

我們將效仿，同時在價值和價格方面保持極強的競爭力。對於消費者而言，情況更具挑戰性，因為記憶體在物料清單中所佔比例更高，而且產品的毛利率更低。

We have multiple streams of mitigation efforts underway which include negotiating ongoing cost sharing with our supply chain and channel partners, adjusting our procurement strategy, reducing promotions, and constraining OpEx for this business.

我們正在採取多項緩解措施，包括與供應鏈和通路合作夥伴協商持續的成本分攤、調整採購策略、減少促銷活動以及限制該業務的營運支出。

We remain committed to minimizing the financial impact on operating income from our consumer business. While our efforts have successfully minimized the impact of the first half, our ability to navigate the second half is uncertain at this point and therefore we may be challenged in delivering on our 2026 goals of growing revenue, margin, and profitability despite our best efforts to mitigate the memory situation.

我們將繼續致力於最大限度地減少對消費者業務營業收入的財務影響。雖然我們的努力已成功將上半年的影響降到最低，但目前我們能否應對下半年尚不確定，因此，儘管我們盡最大努力緩解內存問題，但我們可能仍難以實現 2026 年增長收入、利潤率和盈利能力的目標。

That said, our objective remains to hold the line on these high-level goals for this year. In closing,NETGEAR remains on a great trajectory as we delivered revenue growth, record gross margins, and profitability in 2025. We remain committed to our transformation and the mid and long-term targets we shared with Investor Day, and we will continue to make decisions aligned with our philosophy of driving long-term value for shareholders. With that, I'll now turn it over to Brian.

儘管如此，我們的目標仍然是今年實現這些高層次目標。綜上所述，NETGEAR 繼續保持著良好的發展勢頭，我們在 2025 年實現了收入成長、創紀錄的毛利率和獲利能力。我們將繼續致力於轉型，並實現我們在投資者日上分享的中長期目標，我們將繼續做出符合我們為股東創造長期價值理念的決策。接下來，我將把麥克風交給布萊恩。

Thank you, CJ, and thank you everyone for joining today's call. We closed out 2025 with a strong finish, building momentum throughout the year. Propelled by continued strength in our enterprise business, we delivered revenue at the high end of our guidance range.

謝謝CJ，也謝謝大家參加今天的電話會議。我們在 2025 年末取得了強勁的成績，並在全年保持了良好的發展勢頭。由於企業業務的持續強勁成長，我們的營收達到了預期範圍的高端水準。

Coupled with discipline operational execution, we delivered non-GAAP gross margin of 41.2%. Yet another all-time high for NETGEAR.

憑藉嚴謹的營運執行，我們實現了 41.2% 的非 GAAP 毛利率。NETGEAR 又創下歷史新高。

I'm pleased to share that this marks the seventh consecutive quarter where non-GAAP operating margins exceeded the high end of our guidance range. These impressive results serve as further proof of our progress as next year continues to drive towards expanding long-term growth and profitability.

我很高興地宣布，這標誌著非GAAP營業利潤率連續第七個季度超過了我們預期範圍的上限。這些令人矚目的成果進一步證明了我們所取得的進展，明年我們將繼續朝著擴大長期成長和獲利能力的目標邁進。

We exited the year with DSOs at 73 days. A 10-year low and another testament to the operational efficiency and agility of our new restructured organization. The quarter ended December 31, 2025, revenue was near the high end of the guidance range, coming in at $182.5 million, down 1.1% on a sequential basis and flat year-over-year.

年底時，我們的應收帳款週轉天數為 73 天。這是 10 年來的最低水平，再次證明了我們新重組組織的營運效率和靈活性。截至 2025 年 12 月 31 日的季度，營收接近預期範圍的高端，達到 1.825 億美元，環比下降 1.1%，與去年同期持平。

The fourth quarter's performance was driven by continued strength and enterprise, where ASPs and units each grew year over year and our pro AV ProAV Managed Switch products. Impressively, we again saw double-digit growth year over year in end user demand to reach a record high level for this category.

第四季業績主要得益於企業市場的持續強勁成長，其中平均售價和銷售量均較去年同期成長，以及我們的專業視聽管理型交換器產品。令人印象深刻的是，我們再次看到終端用戶需求年增兩位數，達到該類別歷史最高水準。

We also saw both of our businesses deliver strong year over year contribution margin expansion of at least 320 basis points. In Q4, we repurchased $15 million of our shares and ended the quarter with $323 million in cash and short-term investments.

我們也看到，我們兩項業務的貢獻毛利率均實現了強勁的年成長，至少成長了 320 個基點。第四季度，我們回購了價值 1,500 萬美元的股票，季末現金和短期投資總額為 3.23 億美元。

Our balance sheet remains strong, and our capital allocation strategy is working. We delivered $89.4 million of revenue in the enterprise segment for the fourth quarter, down 1.6% sequentially and up 10.6% year-over-year. we made further progress in the quarter on mitigating the supply constraints around certain Managed Switch products, Working with key supply chain partners and thanks to the excellent execution of our team.

我們的資產負債表依然穩健，我們的資本配置策略行之有效。第四季度，我們在企業級業務領域實現了 8,940 萬美元的收入，季減 1.6%，年增 10.6%。本季度，我們與主要供應鏈合作夥伴攜手合作，並在緩解某些管理型交換機產品的供應限制方面取得了進一步進展，這要歸功於我們團隊的出色執行。

Consequently, the revenue mix of our products from the higher margin enterprise segment remains strong, coming in at 49%. An improvement of 470 basis points year-over-year. Taken in conjunction with a significant reduction in costs across our supply chain, this led to the record consolidated gross margin in the quarter and helped drive our operating margin outperformance.

因此，我們來自高利潤企業部門的產品的收入佔比依然強勁，達到 49%。年比改善470個基點。再加上我們供應鏈成本的大幅降低，這使得本季的綜合毛利率創下歷史新高，並推動了我們的營業利潤率超額完成。

While we experience supply constraints of certain of our Managed Switch products, the situation is dramatically improving, and we are slightly ahead of schedule. Fully capitalize on the substantial and growing demand, our team is rigorously working to increase our supply chain agility, and we continue to expect to be back into a healthy supply position this quarter.

雖然我們部分管理型交換器產品面臨供應限制，但情況正在顯著改善，我們目前進度略微超前。為了充分利用不斷增長的巨大需求，我們的團隊正在努力提高供應鏈的靈活性，我們預計本季將恢復健康的供應狀況。

As a reminder, beginning in Q4, we are reporting two business segments with the reporting of our current mobile products being included in our consumer business. We will continue to supplement reporting and revenue for products sold to service providers and plan to add our cable modem and gateway business sold in retail, which enables services offered by cable operators.

再次提醒大家，從第四季開始，我們將報告兩個業務部門，目前行動產品的報告將納入消費者業務。我們將繼續補充向服務提供者銷售的產品的報告和收入，並計劃增加我們在零售通路銷售的有線調變解調器和網關業務，這些業務能夠為有線電視業者提供服務。

This revenue call-out will allow investors to isolate these declining businesses in their assessment of next year and our transformation.

此次公佈營收情況將使投資人能夠在評估明年及我們轉型計畫時，將這些下滑的業務單獨列出來。

In Q4, the consumer business delivered net revenue of $93.1 million, down 8.4% on a year-over-year. basis and down 0.7% sequentially. Domestically, we saw sequential growth in Wi-Fi systems, and we're able to modestly gain shares sequentially in the US retail market.

第四季度，消費者業務淨收入為9,310萬美元，較去年同期下降8.4%，季減0.7%。在國內市場，Wi-Fi 系統實現了環比成長，我們在美國零售市場的份額也實現了環比小幅成長。

We're currently operating with lower cost inventory and continue to benefit from an improved product mix of Wi-Fi 7 offerings. Coupled with streamlined channel execution, which is driving our strong margin expansion leading to our highest gross margin performance for this business since Q1 of 2021.

我們目前以較低的庫存成本運營，並繼續受益於 Wi-Fi 7 產品組合的改進。再加上精簡的通路執行，推動了我們強勁的利潤成長，使我們該業務的毛利率達到了自 2021 年第一季以來的最高水平。

Sales to service providers and associated products were down approximately 30% as compared to the prior year. While the core consumer business increased 1.6% as compared to the prior year period. Now,moving on to an update on a recurring subscriber base.

與前一年相比，對服務提供者及相關產品的銷售額下降了約 30%。核心消費業務較上年同期成長1.6%。接下來，我們來看看續訂用戶群的最新情況。

The team has made progress with our initiative to transform these offerings, and we have additional improvements slated for the coming year. We continue to believe that focusing on increasing our recurring subscriber base is the optimal strategy to add high margin revenue throughout our business while differentiating our offerings.

團隊在產品轉型方面取得了進展，我們計劃在來年推出更多改進措施。我們仍然認為，專注於增加我們的回頭客用戶群是提高我們業務整體利潤率的最佳策略，同時也能讓我們的產品和服務脫穎而出。

In fact, we have been successful in incrementally improving our conversion rate and our push to move customers to a higher ASP Armor Plus offering. Was once again a strong contributor to growing our ARR by 18% year-over-year., reaching $40.4 million in the quarter.

事實上，我們已經成功地逐步提高了轉換率，並推動客戶升級到 ASP 更高的 Armor Plus 產品。再次為我們的年度經常性收入年增 18% 做出了重要貢獻，本季達到 4,040 萬美元。

We remain confident we can grow our highly profitable AR over time, and I'm pleased to share that we exited Q4 with 558,000 recurring subscribers. For the full year 2025, net year net revenues were $699.6 million up 3.8% compared to the prior year ending December 31, 2024.

我們仍然有信心隨著時間的推移，我們能夠發展利潤豐厚的 AR 業務，我很高興地宣布，截至第四季度末，我們的經常性訂閱用戶已達 558,000 人。2025 年全年淨收入為 6.996 億美元，比前一年（截至 2024 年 12 月 31 日）成長 3.8%。

This was led by an impressive 18.8% growth in our enterprise business topline. This was partially offset by a decline in our consumer business revenues of 7.3%. Due to a 23.3% decline in sales to service providers and associated products.

這主要得益於我們企業業務營收實現了令人矚目的 18.8% 的成長。但這部分被我們消費者業務收入下降 7.3% 所抵銷。由於對服務提供者及相關產品的銷售額下降了 23.3%。

Which was partially offset by an increase of 1.7% in the core consumer business. The proactive restructuring actions we took at the beginning of 2025 set the foundation for our success in the year. enabling us to make important investments for long-term growth, mostly within our enterprise business.

核心消費業務成長 1.7%，部分抵銷了上述損失。我們在 2025 年初採取的積極重組措施為我們當年的成功奠定了基礎，使我們能夠進行重要的長期成長投資，主要是在我們的企業業務領域。

As a result, we had a full year non-GAAP operating profit of $5.9 million resulting in a non-GAAP operating margin of 0.8%, marking our return to non-GAAP operating profit on a whole year basis for the first time since 2021. From this point on, my discussion points will focus on non-GAAP numbers.

因此，我們全年非GAAP營業利潤為590萬美元，非GAAP營業利益率為0.8%，這是自2021年以來我們首次實現全年非GAAP營業利潤。從現在開始，我的討論重點將集中在非GAAP財務資料。

Reconciliation from GAAP to non-GAAP is detailed in an Irving's release distributed earlier today. Gross margin came in at 41.2% in the fourth quarter of 2025. Once again, an all-time high in the sixth consecutive quarter of sequential gross margin expansion.

Irving今天稍早發布的新聞稿詳細闡述了GAAP與非GAAP之間的調整。2025年第四季毛利率為41.2%。連續第六個季度毛利率季增，再次創歷史新高。

This marked an 840 basis point increase compared to 32.8% in the prior comparable period, and 160 basis point increase compared to 39.6% in the third quarter of 2025.

與上一可比較期間的 32.8% 相比，這標誌著增長了 840 個基點；與 2025 年第三季的 39.6% 相比，這標誌著增長了 160 個基點。

A gross margin in the current period benefited from an improved mix of a higher margin enterprise business and Wi FY saving products within the consumer business. And improvement from a license acquisition relative to the year ago period.

本期毛利率受惠於高利潤率企業業務和消費業務中 Wi FY 儲蓄產品的組合最佳化。與去年同期相比，許可證收購方面有所改善。

In the fourth quarter, we entered into a strategic agreement to acquire a perpetual license for the operating system that powers our AV line manage switches.

第四季度，我們達成了一項策略協議，獲得了為我們的 AV 線路管理交換器提供支援的作業系統的永久許可。

Acquiring this technology improved our overall gross margins by roughly 100 basis points in the quarter. But more importantly, it will unlock our ability to bring greater value to the AB ecosystem faster than we could have otherwise.

這項技術的引進使我們本季的整體毛利率提高了約 100 個基點。但更重要的是，它將使我們能夠比以往更快地為 AB 生態系統帶來更大的價值。

Drilling down to the profitability of our two business segments, both segments were profitable on the contribution margin basis for the 3rd quarter in a row.

深入分析我們兩個業務部門的獲利能力，這兩個部門均連續第三個季度實現了邊際貢獻盈利。

Additionally, each grew their contribution margin by at least 320 basis points year over year.

此外，它們的貢獻毛利率均較去年同期成長至少 320 個基點。

Enabled by the operational discipline we've instilled across both business segments.

得益於我們在兩個業務部門中貫徹的營運紀律。

Enterprise gross margin was 51.4%, a record for this business, and up 750 basis points year to year.

企業毛利率為 51.4%，創該業務歷史新高，較上年同期成長 750 個基點。

Driven again by strong demand for our pro-A manage switches and aided by the aforementioned license acquisition.

再次受到市場對我們專業級管理交換器的強勁需求的推動，並得益於上述許可證的收購。

The consumer segment was once again aided by our improved mix of Wi-Fi 7 products and strength in our higher margin direct to consumer channel, which came in at approximately 15% of retail sales, improving our gross margin for this business by 750 basis points year over year to 31.4%. Total Q4 non-GAAP operating expenses came in at $59.2 million up 8.3% year over year and flat sequentially.

消費者業務再次受益於我們改進的 Wi-Fi 7 產品組合以及高利潤率的直接面向消費者通路的優勢，該通路約佔零售額的 15%，使我們該業務的毛利率同比提高了 750 個基點，達到 31.4%。第四季非GAAP營運總支出為5,920萬美元，較去年同期成長8.3%，較上季持平。

Our head count was 784 at the end of the quarter, up from 753 in Q3, as we continue to reinvest the savings from our January 2025 reorganization in the areas of the business that we expect will deliver the best growth and profitability.

本季末，我們的員工人數為 784 人，高於第三季的 753 人，因為我們將繼續把 2025 年 1 月重組節省下來的資金再投資到我們預期能夠帶來最佳增長和盈利能力的業務領域。

This is reflected in the sequential headcount increase as we develop and expand NETGEAR talent with the focus on insourcing software development capabilities and enhancing the go to market capabilities supporting our enterprise business.

這體現在員工人數的持續成長上，因為我們致力於發展和壯大 NETGEAR 人才隊伍，重點是內部軟體開發能力和增強市場推廣能力，以支持我們的企業業務。

Our non-GAAP R&D expense for the fourth quarter was 11.9% of net revenue, as compared to 10.5% of net revenue in the prior year comparable period. and 11.7% of net revenue in the third quarter of 2025.

我們第四季的非GAAP研發費用佔淨收入的11.9%，而上年同期為10.5%，2025年第三季為11.7%。

To continue our technology and product leadership, we are committed to significant but cost-effective investment in R&D. I'm pleased that we delivered no GAAP profitability above the high end of our guidance range, enabled by our strong gross margin performance.

為了保持我們在技術和產品方面的領先地位，我們致力於在研發方面進行大量但具有成本效益的投資。我很高興，由於我們強勁的毛利率表現，我們實現了高於預期範圍上限的GAAP利潤。

Our Q4 non-GAAP operating income was $5.9 million, resulting in non-GAAP operating margin of 3.3%, for an improvement of 560 basis points compared to year ago period, and an improvement of 120 basis points compared to the prior quarter.

我們第四季的非GAAP營業收入為590萬美元，非GAAP營業利潤率為3.3%，較去年同期提高了560個基點，較上一季提高了120個基點。

Our non-GAAP tax expense was approximately $350,000 in the fourth quarter of 2025. Looking at the bottom line for Q4, we reported non-GAAP net income of approximately $7.7 million resulting in a non-GAAP income of $0.26 per share.

2025 年第四季度，我們的非 GAAP 稅務支出約為 35 萬美元。從第四季的最終結果來看，我們報告的非GAAP淨收入約為770萬美元，導致非GAAP每股收益為0.26美元。

For the full year of 2025, we delivered non-GAAP net income of $13.3 million or $0.44 per share. Turning to the balance sheet, we entered the fourth quarter of 2025 with $323 million in cash and short-term investments. Down $3.3 million from the prior quarter with strong free cash flow largely offsetting $15 million in stock and purchases.

2025 年全年，我們實現了非 GAAP 淨收入 1,330 萬美元，即每股 0.44 美元。從資產負債表來看，截至 2025 年第四季度，我們擁有 3.23 億美元的現金和短期投資。與上一季相比減少了 330 萬美元，強勁的自由現金流基本上抵消了 1500 萬美元的股票和採購支出。

During the quarter, $19.5 million of cash was provided by operations, which brings our total cash provided by operations over the trillion 12 months to $1.6 million. We used $5.9 million in purchases of property and equipment during the quarter, which brings our total cash used for capital expenditures over the trillion 12 months to $20.5 million.

本季度，經營活動提供了 1,950 萬美元的現金，使我們在過去 12 個月中透過經營活動獲得的現金總額達到 160 萬美元。本季我們花了 590 萬美元用於購買房產和設備，使我們在過去 12 個月中用於資本支出的現金總額達到 2,050 萬美元。

In Q4 we spent $15 million to repurchase approximately 539,000 shares of NETGEAR common stock. We have approximately 1.5 million shares reserved in our current authorization, and our wholly diluted share account is approximately 29.5 million shares as of the end of the fourth quarter.

第四季度，我們花費 1500 萬美元回購了約 539,000 股 NETGEAR 普通股。我們目前的授權中預留了約 150 萬股，截至第四季末，我們完全稀釋後的股份帳戶約為 2,950 萬股。

We're committed to returning capital to our shareholders and plan to continue to opportunistically repurchase shares in future periods. Before I get into our Q1 outlook, I would like to take a moment to touch on the memory situation and how it may affect us in the year ahead.

我們致力於向股東返還資本，並計劃在未來繼續擇機回購股份。在展望第一季業績之前，我想花點時間談談儲存設備的情況以及它可能對我們未來一年產生的影響。

To date and for the first half of 2026. We have been able to and expect to largely mitigate the impact of the increasing supply constraints of DDR4 memory. and the resulting increase in memory pricing.

截至目前以及 2026 年上半年。我們已經能夠並且預計將在很大程度上緩解DDR4記憶體供應日益緊張以及由此導致的記憶體價格上漲的影響。

However, as we plan out the rest of 2026 with our suppliers, we believe we may see an escalating impact on the cost to produce certain products through the coming quarters, with potentially an outsized effect on our consumer business in the second half.

然而，當我們與供應商規劃 2026 年剩餘時間時，我們認為未來幾季某些產品的生產成本可能會受到不斷上升的影響，並且可能會在下半年對我們的消費者業務產生過大的影響。

We're undertaking a number of mitigation strategies, some of which look promising, but one is to bring this issue to light as it could have a meaningful impact on our consumer business starting in the back half of the year if our mitigation efforts do not substantially counteract the headwind.

我們正在採取一系列緩解策略，其中一些看起來很有希望，但其中一項策略是將這個問題公之於眾，因為如果我們的緩解措施不能實質地抵消不利因素，那麼從下半年開始，這個問題可能會對我們的消費者業務產生重大影響。

I'll now cover our outlook for the first quarter of 2026. Within an enterprise, and user demand for our Pro AV line of managed switches is expected to remain strong, and we have made progress on improving our supply position for these products.

接下來我將介紹我們對 2026 年第一季的展望。在企業內部，使用者對我們專業視聽管理型交換機的需求預計將保持強勁，我們在改善這些產品的供應狀況方面取得了進展。

On the consumer side, while we have a broader product portfolio to address the market, we are seeing softening market demand to start the quarter, which could be attributable to broader pricing pressures from electronic makers dealing with the rising cost of memory.

在消費者方面，雖然我們擁有更廣泛的產品組合來滿足市場需求，但我們看到本季初市場需求有所疲軟，這可能是由於電子產品製造商面臨記憶體成本上漲帶來的更廣泛的價格壓力所致。

For service provider and related products, we expect revenue to be around $20 million, in part tied to the latest government shutdown, which would be a decline of approximately 35% as compared to the first quarter of 2025.

對於服務提供者及相關產品，我們預計收入約為 2,000 萬美元，部分原因是最近政府停擺，與 2025 年第一季相比將下降約 35%。

Accordingly, we expect first quarter net revenue to be in the range of $145 million-$160 million. In the first quarter, we expect our operating expenses to be slightly reduced from the prior quarter, aided by a small transformation-driven restructuring, with the savings being redeployed to further accelerate our transformation later in the year.

因此，我們預計第一季淨收入將在 1.45 億美元至 1.6 億美元之間。第一季度，我們預計營運費用將比上一季度略有下降，這得益於一項小型轉型驅動的重組計劃，節省下來的資金將在今年晚些時候重新部署，以進一步加速我們的轉型。

Additionally, we expect a slight headwind to our gross margin of around 100 basis points, mainly relating to the rising cost of memory. Accordingly, we expect our first quarter GAAP operating margin to be in the range of negative 16.3%-negative 13.3%, and non-GAAP operating margin to be in the range of negative 6%-negative 3%.

此外，我們預計毛利率將受到約 100 個基點的輕微不利影響，主要與記憶體成本上升有關。因此，我們預計第一季 GAAP 營業利潤率將在 -16.3% 至 -13.3% 之間，非 GAAP 營業利潤率將在 -6% 至 -3% 之間。

Our GAAP tax expense is expected to be in the range of $1 million to $2 million, and our non-GAAP tax expense is expected to be in the range of $300,000-$1.3 million for the first quarter of 2026. With that, we can now open it up for questions.

預計 2026 年第一季度，我們的 GAAP 稅收支出將在 100 萬美元至 200 萬美元之間，非 GAAP 稅收支出將在 30 萬美元至 130 萬美元之間。接下來，我們可以開始接受提問了。

(Operator Instructions)

（操作說明）

Adam Tindle, Raymond James.

Adam Tindle，Raymond James。

Okay, thanks. Good afternoon and congrats on a strong finish to 2025 on profitability. I just wanted to, obviously you've been very clear on the memory situation, which I understand is out of your control and mainly affecting the consumer side of the business, which is a helpful distinction, but I wonder if you might just put a little bit more of a fine point on the potential scenarios here. So, for example, if we were to hold memory prices constant from here, and we look at the back half of the year, is there a way to maybe just ballpark the potential impact so investors can, set proper expectations on that, understand there's going to be changes in the pricing from here and we don't know what's going to happen in the back half, but just So we can run sort of a baseline analysis, we hold things constant, we enter the back half. What does that do to the business?

好的，謝謝。下午好，祝賀貴公司在2025年獲利方面取得優異成績。我只是想說，顯然您已經非常清楚地說明了內存問題，我知道這不在您的控制範圍內，而且主要影響到業務的消費者方面，這是一個很有幫助的區別，但我不知道您是否可以再詳細地說明一下這裡可能出現的情況。例如，如果我們假設記憶體價格從現在開始保持不變，並展望下半年，有沒有辦法大致估算一下潛在的影響，以便投資者能夠對此做出合理的預期，了解價格將會發生變化，我們不知道下半年會發生什麼，但我們可以進行一些基準分析，保持其他條件不變，進入下半年。這對企業會造成什麼影響？

Hey Adam, it's CJ, good question. I'll start and then Bryan can maybe, fill in. A lot of our mitigation efforts make it hard to answer that question. Because they range from designing in new memory sources, despising memory where it doesn't impact performance, cost sharing with our supply chain and channel partners, and so, but to paint a scenario that's possible on consumer.

嘿，亞當，我是CJ，問得好。我先開始，然後布萊恩或許可以接替我。我們採取的許多緩解措施使得這個問題很難回答。因為它們涵蓋了從設計新的記憶體來源、在不影響效能的情況下減少記憶體使用、與我們的供應鏈和通路合作夥伴分攤成本等等，但要描繪出一個消費者可能遇到的場景。

Is we could, look to, pull back on promotions, promote performance media so that we can, maintain a higher level of gross profit at a lower unit volume because that helps mitigate the memory impact.

我們是否可以考慮減少促銷活動，推廣效果行銷，以便在較低的單位銷售下維持較高的毛利水平，因為這有助於減輕記憶效應的影響。

And on the enterprise side of things, right, as we mentioned on the call, it's full steam even like we're driving the transformation we're nothing's really changed from our plans before this escalation. We are going to do a price increase, to help mitigate it. We've got air cover on that because a lot of our competition is doing the same, but you should think about enterprises like full steam ahead, and we're going to. Fairly easily managed through the memory situation there.

至於企業方面，正如我們在電話會議上提到的，一切都在全力推進，儘管我們正在推動轉型，但與此次事態升級之前的計劃相比，實際上並沒有什麼改變。為了緩解這種情況，我們將提價。我們已經做好了充分的準備，因為我們的許多競爭對手都在做同樣的事情，但你應該把企業看作是全力以赴的，而我們也正朝著這個方向努力。那裡的內存狀況很容易解決。

But to put it because I think we talked about just super candidly, you're going to ask that exact question and you have a model to update after the call. So we took a look at consensus and we said, okay, if we're looking at consensus with the results we delivered in 25, obviously there's a lot of upside there, right? If you look at the gross margin impact that we've delivered, the profitability shift that we've made. Then you factor in the potential risk around memory in the back half they're like oh maybe consensus, with that they'll take this as guidance this is basically what we know today it's like maybe consensus is actually not too unreasonable, and so that's, just to give you some framing because we did look at, the numbers of look at your model and we did want to be responsive to that question, it's just very unpredictable we have a lot of really. Good. Like I said, on the consumer side mitigation efforts, we've done great to date. Our partners are being supportive, so that's kind of like, the high level framing we would give you on kind of the full year consensus when we do the puts and takes, right? Do you have anything to add to that?

但說實話，因為我覺得我們已經非常坦誠地談過了，你會問這個問題，而且你會在通話後更新一個模型。所以我們研究了共識，然後說，好吧，如果我們用 25 年取得的成果來衡量共識，顯然還有很大的上升空間，對吧？如果你看看我們所實現的毛利率影響，以及我們所取得的獲利能力轉變。然後，考慮到後半部分內存方面的潛在風險，他們會說，哦，也許可以達成共識，以此作為指導，這基本上就是我們今天所知道的，也許達成共識實際上並非太不合理，所以，這只是為了給你一些框架，因為我們確實查看了你的模型中的數據，我們也確實想對這個問題做出回應，只是它非常難以預測，我們有很多真正的。好的。正如我所說，在消費者方面的緩解措施方面，我們迄今為止做得非常出色。我們的合作夥伴給予了支持，所以這有點像是我們進行年度預測時，會向你提供的關於全年共識的高層次框架，對吧？你還有什麼要補充的嗎？

No, I think you've covered most of it. Yeah, I think you've covered most of it. I just would stress that that the first half we feel pretty solid about have visibility, we have, roughly 4.5 months of inventory which gives us that level of confidence, but I think the way you framed it is appropriate.

不，我覺得你已經涵蓋了大部分內容。是的，我覺得你已經涵蓋了大部分內容。我只想強調，我們對上半年的業績感覺相當有把握，我們有大約 4.5 個月的庫存，這給了我們足夠的信心，但我認為你的說法是恰當的。

Got it. Okay, that, that's helpful. And I wanted to ask on sort of pricing and competitive environment that kind of ties into this thought, but it sounds like kind of really two different stories here and enterprise, as you mentioned, competitors are raising prices, which is understandable and certainly rational, given the input costs are rising here. It doesn't sound like.

知道了。好的，這很有幫助。我想問一下定價和競爭環境方面的問題，這與上述觀點有關，但聽起來這實際上是兩個不同的問題。正如您所提到的，企業和競爭對手都在提高價格，考慮到投入成本的上升，這是可以理解的，也是合理的。聽起來不像。

That's happening as much in the consumer side, if at all. So, I wonder if you might just kind of, talk about the competitive dynamics and pricing in consumer. Is there potential for that to follow enterprise? Is it just a couple of bad actors, right? And And this will be, the second part of the question. I assume, some of those bad actors, may ultimately potentially exit the market, whether willingly or unwillingly.

這種情況即便有發生，也大多發生在消費者方面。所以，我想請您談談消費領域的競爭動態和定價問題。企業發展是否也存在這種可能性？只是幾個不法分子嗎？這將是問題的第二部分。我推測，其中一些不良行為者最終可能會退出市場，無論是自願的還是非自願的。

Any update on sort of the competitive environment and the potential for some of those competitors to be forced to exit? Thanks.

關於競爭環境以及部分競爭對手可能被迫退出市場的可能性，是否有任何最新進展？謝謝。

Yeah, good question. I'll start and then Brian can fill in if I miss anything. You hit the nail on the head, so the way you described it, right? Enterprise across the board we're seeing price increases we haven't. In our checks we haven't seen any kind of macro impact to demand on that side of the business. The market dynamics at consumer are trickier. We have seen some behaviour change from some players in the space and not others, and.

嗯，問得好。我先開始，如果我漏掉了什麼，布萊恩可以補充。你說得太對了，就像你描述的那樣，對吧？我們看到企業整體價格都在上漲，而我們卻沒有看到這種情況。經我們調查，尚未發現該業務方面的需求受到任何宏觀影響。消費者市場的動態更加複雜。我們看到有些參與者的行為發生了改變，而有些參與者則沒有。

So, they're, it, it's not all competition is created equal, I will say I think you were basically asking like what's the latest update on the reg regulatory front and as we've been consistent in saying, throughout these calls like we're just kind of reading the same stuff that you are but. Of course we're prepared to talk about some of the latest developments we've read in the news. So, you basically, since our last discussion at your conference in, early December 4, there's a Bloomberg report that the FTC is examining whether TP-Link, may have deceived customers by allegedly concealing its connections to China. Some of these are connected, as you'll see.

所以，並非所有的競爭都是平等的。我想說，你基本上是在問監管方面的最新進展，正如我們一直以來在這些電話會議中所說的那樣，我們讀到的內容和你讀到的差不多。當然，我們準備好談談我們在新聞中看到的一些最新進展。所以，基本上，自從我們在 12 月 4 日早些時候的會議上進行上次討論以來，彭博社報道稱，聯邦貿易委員會正在調查 TP-Link 是否可能通過涉嫌隱瞞其與中國的聯繫來欺騙消費者。你會發現，其中一些是有關聯的。

On January 26, so just recently, Texas governor of Texas announced it was banning TP-Link along with a bunch of other companies from, use by Texas state employees, and they cited there's some cybersecurity risks. And then I think the most important update, and it's a little bit nuanced, but I'll try and explain it as simply as I can. Is the FCC passed a rule that requires companies that have FCC licenses in our space to certify whether they're owned by, controlled by, or subject to the jurisdiction of a foreign adversary that of course includes China, and those who say yes.

就在不久前的 1 月 26 日，德州州長宣布禁止德州政府員工使用 TP-Link 以及其他一些公司的產品，理由是存在一些網路安全風險。然後，我認為最重要的更新是，雖然有點微妙，但我會盡量用最簡單的方式解釋。美國聯邦通訊委員會是否通過了一項規則，要求在我們領域擁有美國聯邦通訊委員會許可證的公司證明其是否由外國敵對勢力（當然包括中國）擁有、控製或受其管轄？那些回答「是」的公司。

Would be subject to a national security review. Those that say no or don't respond can have their license revoked, and it was interesting, I think in the actual rulemaking, it was noted that TP-Link objected publicly to this specific rule. So obviously even putting TP-Link aside there's a lot of competition in the long tail from. For an adversary, so this is a welcome rule. It hasn't been implemented yet and I don't have the timing on that, but the momentum here continues to build and so we remain confident as ever that there's going to be more to come.

將接受國家安全審查。那些拒絕或不回應的人可能會被吊銷執照，而且有趣的是，我認為在實際的規則制定過程中，TP-Link 曾公開反對這項具體規定。所以很明顯，即使撇開 TP-Link 不談，長尾市場也有許多競爭。對對手來說，這是一條令人欣喜的規則。雖然尚未實施，我也不清楚具體時間，但目前的勢頭持續增強，因此我們一如既往地充滿信心，相信未來會有更多成果。

And maybe I'll go back to the the first part of your question just in terms of the consumer market and trends and and maybe try and relate it to the guidance that we provided, make sure it's clear.

也許我會回到你問題的第一部分，就消費者市場和趨勢而言，並嘗試將其與我們提供的指導聯繫起來，確保它清晰明了。

We have seen a softer start to the year on the consumer side. Typically the market would be down off the holiday, period, about 15%.

今年年初，消費者方面出現了較為疲軟的開局。通常情況下，假日過後市場會下跌，跌幅約 15%。

What we're seeing is probably more around 20 low 20% range, and you know there's plenty of market data out there talking about consumer sentiment. I think we have heard of other consumer products where price prices are on the rise. We've not seen that in our space.

我們看到的可能是 20% 到 20% 左右的區間，而且你也知道，有很多市場數據在談論消費者情緒。我想我們都聽說過其他消費品的價格上漲。我們在這個領域還沒有看到這種情況。

And maybe just kind of touching on the other pieces of the of the Q1 guidance just reminding folks that you know we're calling out the service provider revenue which now includes the cable products that enable cable operator services, and the guy that we provided there is projecting out what would be about a 35% decline compared to the Q125 period. This portion of the business is in harvest mode which we talked about at investor day.

或許還可以稍微提及第一季度業績指引的其他部分，提醒大家，我們正在重點關注服務提供商收入，其中現在包括支持有線電視運營商服務的有線電視產品，我們提供的預測數據顯示，與第一季相比，該收入將下降約 35%。這部分業務目前處於收穫期，我們在投資者日上討論過這個問題。

Probably less obvious is that Q1 is a relatively shorter quarter for us, just the way our fiscal calendar operates coming off Q4, it's down about 7.5%, which is pretty impactful on the enterprise side of the business where now that we've gotten to a healthier place on supply and then switch, POS is really driving. The replenishment back into the channel is pretty well matched so that would have an impact on that on that business and maybe just to give a little bit of.

可能不太明顯的是，第一季下降了約 7.5%，這對企業業務的影響相當大，因為現在我們的供應和轉換情況已經比較健康，POS 系統正在真正推動業務成長。補給回到通路的情況相當不錯，所以這會對該業務產生影響，也許只會帶來一點好處。

A context of Q2. What I was just saying with regards to the duration of Q1, Q2 returns to a normal quarter, that would be up about 4.5% off of Q1, which will certainly benefit the enterprise business. CJ touched on earlier anticipated price increases on our enterprise products that would start to kick in during that period, and then the consumer markets typically flat in Q2 off of Q1, so if.

Q2 的背景。我剛才說的關於第一季持續時間的問題，第二季將恢復正常，比第一季成長約 4.5%，這肯定會有利於企業業務。CJ 之前提到過，我們企業產品的價格預計會在此期間開始上漲，而消費市場通常會在第二季度從第一季開始趨於平穩，所以如果。

You put all. That Together like our best. Our best guess would be Q2 would probably be about a sequential increase of in the 5% range which would help on the operating margin too going into Q2 just from the incremental gross profit from the extra topline that's probably net of everything maybe a couple 100 basis point improvement from an op margin standpoint. So just wanted to bridge all that because there is a lot of stuff going on and and calling out specifically that Q1 is a shorter period for us.

你把一切都放進去了。我們團結一心，做到最好。我們估計第二季可能會較上季成長 5% 左右，這也有助於提高第二季的營業利潤率，因為新增收入帶來的毛利可能會提高數百個基點。所以，我只是想把所有這些事情聯繫起來，因為有很多事情正在發生，而且特別要指出的是，第一季對我們來說是一個較短的時期。

Yeah, and Adam, just to make sure you're that that 7.5%, that Q1 is a week shorter than Q4 and even a couple days shorter than the the same quarter last year.

是的，亞當，我只是想確認一下，那7.5%指的是第一季比第四季短一周，甚至比去年同期短幾天。

Got it. Really helpful. Thanks guys.

知道了。真的很有幫助。謝謝各位。

Tore Svanberg, Stifel

Tore Svanberg，Stifel

Yeah, thanks for taking my questions and congratulations on a solid quarter, guys, and so, just any colour on, is there on the current health, of channel inventory, are you seeing retail partners holding lien inventory levels in anticipation of a broader Wi-Fi 7 rollout, or is there still some legacy Wi-Fi 6 inventory, to be clear, thanks.

是的，感謝你們回答我的問題，恭喜你們本季業績優異。那麼，關於通路庫存的現狀，你們有什麼看法？零售合作夥伴是否因為預期 Wi-Fi 7 的更廣泛推廣而持有大量庫存？或者是否仍然存在一些 Wi-Fi 6 的舊庫存？謝謝。

Yeah, I would say it's. Not. Uncommon. On the retail side going into Q1 coming off the holidays where you'll see them tighten up inventory in the middle of the quarter. Many of them have January 31, year ends and so I'd say that activity is pretty in line with what we would expect, obviously with.

是的，我會這麼說。不是。罕見。零售方面，在假期過後進入第一季度，你會看到他們在季度中期收緊庫存。許多公司的財年截止日期是 1 月 31 日，所以我認為這種活動與我們預期的相當一致，當然，這是有原因的。

The software sell through that will dictate, but I wouldn't say we've heard or seen any wholesale resets of optimal weeks of supply that retailers would carry. It will just map back into the velocity of POS that they're seeing today.

軟體銷售情況將決定最終結果，但我不會說我們已經聽說或看到零售商的最佳庫存週數出現任何大規模的調整。它最終會反映出他們目前看到的POS銷售速度。

Okay, great. And kind of on a follow-up, last quarter you kind of pre previously mentioned establishing a more of a safety stock and reaching an optimal inventory level position, for Pro AV managed switches by this by 1 Q26, so any color you can provide on whether.

好的，太好了。還有一個後續問題，上個季度您曾提到要建立更充足的安全庫存，並在本季度 2026 年第一季度達到 Pro AV 管理交換機的最佳庫存水平，您能否就此提供一些信息？

There has been any successful clearing of the sales backlog and are you now in a position to ship more of an unconstrained and market demand for 2026?

銷售積壓訂單是否已成功清理？您現在是否能夠滿足 2026 年不受限制的市場需求？

I could start with that one. Solomon and Brian can win in as well. So we're actually, right where we said we would be, great execution by the team. We've burned down, most of our buffer stock, and so by the end of this quarter, we should be in a safety stock position, and just as a reminder.

我可以從那一個開始。所羅門和布萊恩也有機會獲勝。所以，我們實際上已經達到了我們預期的目標，團隊執行得非常出色。我們已經消耗了大部分緩衝庫存，因此到本季末，我們應該能夠達到安全庫存水平，再次提醒大家。

To tie this into kind of just the health of the enterprise business, if you look at Q1 and Q2 last year, managed revenue would be constrained because, we didn't have stock to sell because we burned down the backlog that.

為了將此與企業業務的健康狀況聯繫起來，如果你看去年第一季和第二季度，管理收入將受到限制，因為我們沒有庫存可賣，因為我們已經清空了積壓訂單。

Increases revenue and then if you look at it on a year over year basis we had the big channel reset the prior year so it's a bit noisy but just to put it into context like the the sell through of our pro AD solutions last year was over we're not going to give a specific growth number but it was over 25% so very healthy sell through growth and we will now be matching sell in and sell through since we've caught up on supply.

收入增加，如果按年來看，由於前一年大型管道進行了調整，所以數據可能有些波動，但為了便於理解，例如，去年我們專業廣告解決方案的銷售率超過了25%，我們不會給出具體的增長數字，但銷售率增長非常健康，而且由於我們已經趕上了供應進度，現在我們將實現銷售量和銷售率的平衡。

And I would just add, as I said earlier on the call that you know that the manage switch portion of our portfolio reached an all-time high in terms of end user sales, so.

我還要補充一點，正如我之前在電話會議上所說，你們也知道，我們產品組合中的管理交換機部分在終端用戶銷售額方面達到了歷史最高水平。

We're happy to see the trajectory it's on and in terms of our inventory position you would have seen us increase inventory quarter on quarter about $10 million and that is a largely attributable to getting into a better place on the manage.

我們很高興看到它的發展軌跡，就我們的庫存狀況而言，您會看到我們每個季度的庫存增加了約 1000 萬美元，這主要歸功於我們在管理方面取得了更好的進展。

Switch. Yeah, not to overly pile on, but we were talking about some a lot of customer wins on the ProAV side, with our team yesterday, and Topgolf, Brin and I are both golfers, so it's a fun one to talk about. Topgolf is actually across the board all of their locations powered by Pro AB, so like the core of their product experience, which obviously has zero room for. Any type of performance issues, so it's kind of really strong validation. Another point of validation, and then in terms of like the trusted nature of our brand, we've, deployed last quarter in the International Criminal Court in Benelux. We've, Deployed with NATO and so you know we we we love sharing kind of the customer wins on on this side of the business because they're big high visibility high performance requirements kind of deployments.

轉變。是的，我不想太多贅述，但昨天我們團隊在 ProAV 方面談到了許多客戶的成功案例，其中就包括 Topgolf。我和 Brin 都是高爾夫球愛好者，所以談論這個話題很有趣。Topgolf 的所有門市實際上都由 Pro AB 提供技術支持，這構成了其產品體驗的核心，顯然沒有其他選擇。任何類型的效能問題，所以這算是一種非常強有力的驗證。另一個驗證點，以及我們品牌的可信賴性，是我們在上個季度在比荷盧經濟聯盟國際刑事法院的部署。我們已經與北約合作部署，所以你知道，我們喜歡分享客戶在這項業務方面的成功案例，因為這些都是高知名度、高效能要求的大型部署專案。

Got it, very helpful.

明白了，很有幫助。

Thank you.

謝謝。

Jay Goldberg,Seaport Research Partners.

Jay Goldberg，Seaport Research Partners。

Hi, thanks for taking my question. First off, I want to just look at sort of, the structural change in the business.

您好，感謝您回答我的問題。首先，我想看看公司結構上的改變。

Looking at my numbers relative to what you guys delivered, revenue was a small beat, but the EPS was a pretty big beat.

從我方的數據來看，與你們的業績相比，營收略微超出預期，但每股盈餘卻大幅超出預期。

That seems to imply a fairly high degree of operating leverage built into the model, and I know in the near term we have all these memory problems sort of weighing things down, but I was just hoping you could speak to how you're going to build that operating leverage.

這似乎意味著該模型中內建了相當高的經營槓桿，我知道在短期內我們面臨各種記憶體問題，這些問題在某種程度上拖累了我們，但我只是希望您能談談您將如何建立這種經營槓桿。

Over what trajectory, like how does that look going forward and how we going to get the the business to the that more higher operating margin level.

發展軌跡如何？未來發展前景如何？我們將如何使業務達到更高的營業利潤率水準？

Yeah, I mean, maybe I'll just, I'll start off here. I mean, as we talked about an investor day, we are still investing in the business that's largely going into the enterprise side. We did say that we would outpace revenue or Growth ahead of revenue. Growth in '26, to really fund those long-term benefits that we see. We did say that would subside, in '27, it would get back in line with revenue trajectory.

是啊，我的意思是，或許我就從這裡開始吧。我的意思是，就像我們之前討論的投資者日一樣，我們仍在投資這項主要面向企業領域的業務。我們確實說過，我們的營收成長速度會超過營收成長速度，或者說，我們的成長速度會超過營收成長速度。2026 年的成長，是為了真正為我們所看到的那些長期效益提供資金。我們確實說過這種情況會緩解，到 2027 年，它會重新與收入軌跡保持一致。

In reference to to kind of what you were expecting for Q4, obviously the, record high gross margin over 41%, was the major driver there, one of the driving forces there, and we did mention this at Investor Day but was not necessarily factored into our guidance that we provided earlier than that. Was this acquisition of the perpetual license that is the operating system that powers our our AV product portfolio.

關於您對第四季度的預期，顯然，超過 41% 的歷史最高毛利率是主要驅動因素之一，我們在投資者日上也提到了這一點，但這並沒有完全納入我們之前提供的業績指引中。此次收購是否獲得了我們AV產品組合所依賴的作業系統的永久授權？

Which is a huge benefit, on a full quarter basis that will yield about 150 basis points of gross margin expansion.

從整個季度來看，這將帶來巨大的好處，毛利率將提高約 150 個基點。

We did get a portion of that in Q4, which is about 100 basis points as I mentioned.

我們在第四季度確實獲得了一部分，正如我之前提到的，大約是 100 個基點。

So those things are what's going to really drive leverage in our model, and again, another point we touched on investor day, we are expecting over the long-term to get the enterprise portion of the business up to about 65% of our overall business, based on what we see today, and that certainly will bode well in terms of market expansion.

所以這些因素將真正推動我們模式的槓桿作用，而且，正如我們在投資者日上提到的另一點，根據我們目前所看到的，我們預計從長遠來看，企業業務部分將占我們整體業務的約 65%，這無疑將有利於市場擴張。

Yeah Jay, the two things I would add are, right, if you take that pro AV sell through growth, it wasn't a growth number, I said it was bigger than 25%, and you apply that to the enterprise business.

是的，Jay，我還要補充兩點：如果你看看專業視聽產品的銷售成長情況，我說過，它不是成長數字，而是超過 25%，然後你把這個成長情況應用到企業業務中。

We've been clear about this. That means the rest of the business is declining and that it's because it's been in transformation mode. It's a lot of the, we have high conviction in the potential of our enterprise networking and security business. We're making the investments needed to get that.

我們已經明確地表明了這一點。這意味著公司其他業務正在下滑，而這是因為公司一直處於轉型期。我們對企業網路和安全業務的潛力充滿信心。我們正在進行必要的投資來實現這一目標。

This is on the right trajectory. We've got validation from, customers and channel partners that that we are addressing a significant GAAP in the market. So we're excited about that and we're excited to in planning for, building momentum in that business this year. That's one point. The second point is we transform our go to market team on the enterprise side. And this benefits both ProAV and the enterprise networking and security business. Those upfront investments, take time to pay back, right? It takes time for sales people to, build their partner portfolio. We've even changed incentive structures to ensure that that's happening this year. And so that's part of the equation around the operating leverage, on the enterprise side of the business.

這是正確的方向。我們已經從客戶和通路合作夥伴那裡得到了證實，我們正在解決市場上一個重要的公認會計準則問題。所以，我們對此感到興奮，也對今年在該業務領域建立發展勢頭充滿期待。這是一點。第二點是我們要對企業端的市場推廣團隊進行改革。這既有利於專業視聽領域，也有利於企業網路和安全業務。前期投資需要時間才能回本，對吧？銷售人員需要時間來建立合作夥伴組合。我們甚至改變了激勵機制，以確保今年能夠實現這一目標。因此，這是企業經營槓桿效應等式的一部分。

So it sounds like a lot of those drivers are still intact and so maybe they get disrupted later in this year a bit by gross margins and memory, but that shouldn't change the underlying trajectory. Is that safe to say?

聽起來很多驅動因素仍然保持不變，因此今年稍後它們可能會受到毛利率和市場記憶的一些幹擾，但這不應該改變其基本發展軌跡。這樣說是否準確？

Yeah, on enterprise that's correct. Consumer, we've got, like I was saying, we've got a, the incremental cost and it has a bigger impact there and then some of the mitigation stuff we might do, but we also have, an x lever to pull there and we remain committed to like one, we're very.

是的，在企業版中確實如此。對於消費者而言，正如我剛才所說，我們面臨著增量成本，而且它對消費者的影響更大，然後我們可能會採取一些緩解措施，但我們也有一個可以採取的措施，我們仍然致力於採取一些措施，我們非常重視這一點。

Optimistic and bullish about the long-term opportunity and consumer, so Jonathan's strategy, he shared it investor day, every day that passes, we feel stronger and stronger that we're heading down the right path with our Google partnership. With what we're doing in Wi-Fi 8, we're really excited about that, not just in terms of the new technology that that brings to market, but also that's the opportunity for us to reset our portfolio.

喬納森對長期機會和消費者持樂觀和看好態度，因此他在投資者日上分享了他的策略：“隨著時間的推移，我們越來越確信，我們與谷歌的合作正走在正確的道路上。”對於我們在 Wi-Fi 8 領域所做的工作，我們感到非常興奮，不僅是因為它為市場帶來了新技術，還因為它為我們重新調整了產品組合。

So I don't want to sound that the this memory thing is transitory and that you know it's not a transitory in like a one or two quarter, as you know very well it's going to, we're going to have to work our way through 2026, but at the end of the day we remain.

所以我不想讓人覺得這種記憶問題是暫時的，你也知道它不是一兩個季度就能解決的，我們得一直努力到 2026 年，但最終我們依然存在。

Very bullish, but we do have the lever to, slow our OpEx investment on that side of the business and we really do. Want to stand by our commitment of limiting the dilution to operating income from consumer while we go through that transformation. So that that's the exercise that we're going to go through this year as we we mitigate memory but super excited about the long-term vision that we shared at Investor Day.

非常樂觀，但我們確實有能力放緩這方面的營運支出投資，而且我們確實有這個能力。我們承諾在轉型過程中盡可能減少對消費者業務營業收入的稀釋。所以，這就是我們今年要進行的工作，我們將努力減輕記憶效應，但我們對在投資者日上分享的長期願景感到非常興奮。

Great, that's very helpful. Thank you. And just a quick housekeeping question, Brian, could you repeat the numbers for ARR and users?

太好了，這很有幫助。謝謝。Brian，還有一個簡單的事務性問題，可以再重複 ARR 和使用者數量的資料嗎？

Subscribers.

訂閱者。

Yeah. In Q4, ARR was just over $40 million, and the recurring subscribers was 558,000.

是的。第四季度，年度經常性收入略高於 4,000 萬美元，經常性訂閱用戶為 55.8 萬。

There are no further questions at this time, Mr. CJ. I tried to call back over to you.

CJ先生，目前沒有其他問題了。我試著回撥給你。

Yeah, I'd like to just close by making a couple of points that may come up in our callback, so I want to share them here so that we have the ability to talk about them candidly. One is.

是的，最後我想提幾點，這些內容可能會在我們的後續討論中被提及，所以我想在這裡分享一下，以便我們能夠坦誠地討論它們。一個是。

Around buyback, so we announced, or we disclosed that we repurchased in Q4 $150 million of shares. That's $15 which equates to $550 million for the year, $84 million in the last seven quarters or so. And if you look at the, if you do the math on the.

關於股票回購，我們宣布或揭露，我們在第四季度回購了價值 1.5 億美元的股票。那相當於 15 美元，一年下來就是 5.5 億美元，過去七個季度左右就是 8,400 萬美元。如果你看一下，如果你計算一下。

What we spent and the number of shares we got, it becomes clear that we've been out of the market for several weeks, and we've been restricted from purchasing for the last several weeks. So as of a couple days from now, we have earnings behind us, we expect to be unrestricted for the purpose of implementing implementing a plan or resuming buybacks. And so I just wanted to share that we view the current price as attractive. And wanted to just be able to share here that, returning capital to shareholders remains a priority. And then the last point I want to make is around AI because there's just obviously everybody who's following the market, small developments from some of the AI leaders are leading to a lot of fun.

從我們的支出和獲得的股票數量來看，很明顯我們已經好幾週沒有進入市場了，而且在過去的幾周里，我們一直被限制購買股票。所以，從現在起幾天后，我們的收益已經公佈，我們預計將不再受限，可以實施計劃或恢復股票回購。因此，我只是想分享一下，我們認為目前的價格很有吸引力。我在這裡想和大家分享的是，向股東返還資本仍然是我們的首要任務。最後我想說的一點是關於人工智慧的，因為很明顯，所有關注市場的人都會注意到，一些人工智慧領域的領導者所取得的小進展帶來了很多樂趣。

For software companies and other companies and I wanted to make very clear, I don't think we've been impacted by that, but I wanted to make very clear that we view AI as a long-term tailwind, and the fact that we have a device capability is a huge competitive advantage and we're insourcing software at a time when we can leverage AI to do that very efficiently and very quickly. And furthermore, we envision, a number of different opportunities to integrate AI into our products, not just for enabling better performance but enabling new use cases and so overall we're quite excited about what's happening and taking advantage of that to the max and all of those areas, not to mention driving operational efficiency at NETGEAR. So with that, I just want to reiterate my thanks to the NETGEAR team for delivering an incredible Q4 in 2025 and thank you all again for joining.

對於軟體公司和其他公司而言，我想非常明確地指出，我認為我們並未受到人工智慧的影響，但我想非常明確地指出，我們視人工智慧為長期的順風，而我們擁有設備能力這一事實是一個巨大的競爭優勢，我們正在利用人工智慧高效、快速地完成軟體內部開發。此外，我們設想，將人工智慧整合到我們的產品中有很多不同的機會，不僅可以提高效能，還可以實現新的用例，因此總的來說，我們對正在發生的事情感到非常興奮，並將最大限度地利用這些領域，更不用說提高 NETGEAR 的營運效率了。最後，我再次感謝 NETGEAR 團隊在 2025 年第四季取得了令人矚目的成績，也再次感謝大家的參與。

This concludes today's conference call. You may not disconnect.

今天的電話會議到此結束。您不得斷開連線。

Goodbye.

再見。