NETGEAR, INC., 10-K filed on 2/13/2026
Annual Report
v3.25.4
Document And Entity Information - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Feb. 06, 2026
Jun. 27, 2025
Cover [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2025    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Trading Symbol NTGR    
Entity Registrant Name NETGEAR, Inc.    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Central Index Key 0001122904    
Current Fiscal Year End Date --12-31    
Entity Filer Category Large Accelerated Filer    
ICFR Auditor Attestation Flag true    
Smaller Reporting Company false    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Emerging Growth Company false    
Entity Tax Identification Number 77-0419172    
Entity File Number 000-50350    
Entity Incorporation, State or Country Code DE    
Entity Address, Address Line One 3553 North First Street    
Entity Address, City or Town San Jose    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 95134    
City Area Code (408)    
Local Phone Number 907-8000    
Security Exchange Name NASDAQ    
Title of 12(b) Security Common Stock, $0.001 par value    
Document Annual Report true    
Document Transition Report false    
Entity Interactive Data Current Yes    
Entity Common Stock, Shares Outstanding (In shares)   28,113,151  
Entity Public Float     $ 807.6
Auditor Name PricewaterhouseCoopers LLP    
Auditor Location San Jose, California    
Auditor Firm ID 238    
Documents Incorporated by Reference

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Proxy Statement for the Registrant’s 2026 Annual Meeting of Stockholders are incorporated by reference in Part III of this Form 10-K. 		   
Auditor Opinion [Text Block]

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of NETGEAR, Inc. and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of operations, of comprehensive income (loss), of stockholders’ equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

    
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current assets:      
Cash and cash equivalents $ 209,904 $ 286,444  
Short-term investments 113,132 122,246  
Accounts receivable, net of allowance for doubtful accounts of $466 and $507 as of December 31, 2025 and December 31, 2024, respectively 142,045 156,210  
Inventories 176,456 162,539  
Prepaid expenses and other current assets 31,745 30,590  
Total current assets 673,282 758,029  
Property and equipment, net 26,001 11,288  
Operating lease right-of-use assets 36,715 28,047  
Intangible assets, net 38,480 0  
Goodwill 45,022 36,279 $ 36,279
Other non-current assets 16,771 16,587  
Total assets 836,271 850,230  
Current liabilities:      
Accounts payable 43,749 58,481  
Accrued employee compensation 34,731 23,290  
Other accrued liabilities 144,028 148,078  
Deferred revenue 26,904 30,261  
Income taxes payable 809 9,973  
Total current liabilities 250,221 270,083  
Non-current income taxes payable 7,176 7,583  
Non-current operating lease liabilities 41,016 19,796  
Other non-current liabilities 40,035 11,702  
Total liabilities 338,448 309,164  
Commitments and contingencies (Note 9)  
Stockholders’ equity:      
Preferred stock: $0.001 par value; 5,000,000 shares authorized; none issued or outstanding  
Common stock: $0.001 par value; 200,000,000 shares authorized; shares issued and outstanding: 27,943,198 and 28,500,118 as of December 31, 2025 and 2024, respectively 28 29  
Additional paid-in capital 1,036,545 997,912  
Accumulated other comprehensive income 196 241  
Accumulated deficit (538,946) (457,116)  
Total stockholders’ equity 497,823 541,066  
Total liabilities and stockholders’ equity $ 836,271 $ 850,230  
v3.25.4
Consolidated Balance Sheets (Parentheticals) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Accounts receivable, net of allowance for doubtful accounts of $466 and $507 as of December 31, 2025 and December 31, 2023, respectively $ 466 $ 507
Preferred Stock, par value (in usd per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 5,000,000 5,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 200,000,000 200,000,000
Common stock, shares issued (in shares) 27,943,198 28,500,118
Common stock, shares outstanding (in shares) 27,943,198 28,500,118
v3.25.4
Consolidated Statements of Operations - USD ($)
shares in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Net revenue [1] $ 699,621,000 $ 673,759,000 $ 740,840,000
Cost of revenue 433,430,000 477,832,000 491,588,000
Gross profit 266,191,000 195,927,000 249,252,000
Operating expenses:      
Research and development 85,721,000 81,082,000 83,295,000
Sales and marketing 127,733,000 123,694,000 127,778,000
General and administrative 78,916,000 63,468,000 66,243,000
Litigation reserves, net 209,000 (89,012,000) 178,000
Restructuring and other charges 7,764,000 4,479,000 3,962,000
Intangible assets impairment 0 0 1,071,000
Total operating expenses 300,343,000 183,711,000 282,527,000
Income (loss) from operations (34,152,000) 12,216,000 (33,275,000)
Other income, net 17,376,000 12,672,000 14,139,000
Income (loss) before income taxes (16,776,000) 24,888,000 (19,136,000)
Provision for income taxes 1,147,000 12,525,000 85,631,000
Net income (loss) $ (17,923,000) $ 12,363,000 $ (104,767,000)
Net income (loss) per share      
Basic $ (0.63) $ 0.43 $ (3.57)
Diluted $ (0.63) $ 0.42 $ (3.57)
Weighted average shares used to compute net income (loss) per share:      
Basic 28,607 28,905 29,355
Diluted 28,607 29,683 29,355
[1] No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
v3.25.4
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ (17,923) $ 12,363 $ (104,767)
Other comprehensive income (loss), before tax:      
Change in unrealized gains and losses on derivatives (40) 72 345
Change in unrealized gains and losses on available-for-sale investments (9) 43 448
Other comprehensive income (loss), before tax (49) 115 793
Tax benefit (provision) related to derivatives 4 (10) (43)
Tax provision related to available-for-sale investments 0 0 (79)
Other comprehensive income (loss), net of tax (45) 105 671
Comprehensive income (loss) $ (17,968) $ 12,468 $ (104,096)
v3.25.4
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Beginning balance at Dec. 31, 2022 $ 620,855 $ 29 $ 946,123 $ (535) $ (324,762)
Beginning balance (in shares) at Dec. 31, 2022   28,908,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Change in unrealized gains and losses on available-for-sale investments, net of tax 369     369  
Change in unrealized gains and losses on derivatives, net of tax 302     302  
Net income (loss) (104,767)       (104,767)
Stock-based compensation $ 17,938   17,938    
Repurchase of common stock (in shares) 0        
Restricted stock unit withholdings $ (2,793)       (2,793)
Restricted stock unit withholdings (in shares) (198,000) (198,000)      
Issuance of common stock under stock-based compensation plans $ 3,591 $ 1 3,590    
Issuance of common stock under stock-based compensation plans (in shares)   906,000      
Ending balance at Dec. 31, 2023 535,495 $ 30 967,651 136 (432,322)
Ending balance (in shares) at Dec. 31, 2023   29,616,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Change in unrealized gains and losses on available-for-sale investments, net of tax 43     43  
Change in unrealized gains and losses on derivatives, net of tax 62     62  
Net income (loss) 12,363       12,363
Stock-based compensation 22,678   22,678    
Repurchase of common stock $ (33,750) $ (2)     (33,748)
Repurchase of common stock (in shares) (2,100,000) (2,105,000)      
Restricted stock unit withholdings $ (3,409)       (3,409)
Restricted stock unit withholdings (in shares) (226,000) (226,000)      
Issuance of common stock under stock-based compensation plans $ 7,584 $ 1 7,583    
Issuance of common stock under stock-based compensation plans (in shares)   1,215,000      
Ending balance at Dec. 31, 2024 541,066 $ 29 997,912 241 (457,116)
Ending balance (in shares) at Dec. 31, 2024   28,500,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Change in unrealized gains and losses on available-for-sale investments, net of tax (9)     (9)  
Change in unrealized gains and losses on derivatives, net of tax (36)     (36)  
Net income (loss) (17,923)       (17,923)
Stock-based compensation 29,715   29,715    
Repurchase of common stock $ (50,147) $ (1)     (50,146)
Repurchase of common stock (in shares) (1,900,000) (1,865,000)      
Restricted stock unit withholdings $ (13,761)       (13,761)
Restricted stock unit withholdings (in shares) (515,000) (515,000)      
Issuance of common stock under stock-based compensation plans $ 8,918   8,918    
Issuance of common stock under stock-based compensation plans (in shares)   1,823,000      
Ending balance at Dec. 31, 2025 $ 497,823 $ 28 $ 1,036,545 $ 196 $ (538,946)
Ending balance (in shares) at Dec. 31, 2025   27,943,000      
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities:      
Net income (loss) $ (17,923,000) $ 12,363,000 $ (104,767,000)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation and amortization 7,996,000 6,514,000 7,161,000
Stock-based compensation 29,715,000 22,678,000 17,938,000
Accretion of discounts and imputed interests, net (632,000) (3,645,000) (3,286,000)
Intangible assets impairment 0 0 1,071,000
Deferred income taxes (152,000) 1,001,000 82,319,000
Provision for excess and obsolete inventory 3,490,000 6,064,000 3,168,000
Other (186,000) 93,000 60,000
Changes in assets and liabilities:      
Accounts receivable, net 14,165,000 28,849,000 92,425,000
Inventories (17,407,000) 80,248,000 47,595,000
Prepaid expenses and other assets (960,000) 5,101,000 (3,189,000)
Accounts payable (14,879,000) 11,486,000 (38,947,000)
Accrued employee compensation 11,441,000 2,004,000 (2,846,000)
Other accrued liabilities 1,069,000 (15,152,000) (45,893,000)
Deferred revenue (4,252,000) 3,368,000 6,969,000
Income taxes payable (9,879,000) 3,825,000 (2,925,000)
Net cash provided by operating activities 1,606,000 164,797,000 56,853,000
Cash flows from investing activities:      
Purchases of short-term investments (109,768,000) (137,228,000) (135,920,000)
Proceeds from maturities of short-term investments 120,000,000 120,290,000 115,006,000
Purchases of property and equipment (20,515,000) (8,994,000) (5,799,000)
Purchases of long-term investments (165,000) (225,000) (720,000)
Payments made in connection with business acquisitions, net of cash acquired (12,193,000) 0 0
Net cash used in investing activities (22,641,000) (26,157,000) (27,433,000)
Cash flows from financing activities:      
Repurchases of common stock (50,662,000) (33,088,000) 0
Restricted stock unit withholdings (13,761,000) (3,409,000) (2,793,000)
Proceeds from exercise of stock options 5,266,000 4,019,000 0
Proceeds from issuance of common stock under employee stock purchase plan 3,652,000 3,565,000 3,590,000
Net cash provided by (used in) financing activities (55,505,000) (28,913,000) 797,000
Net increase (decrease) in cash and cash equivalents (76,540,000) 109,727,000 30,217,000
Cash and cash equivalents, at beginning of period 286,444,000 176,717,000 146,500,000
Cash and cash equivalents, at end of period 209,904,000 286,444,000 176,717,000
Supplemental Cash Flow Information:      
Cash paid for income taxes, net 13,772,000 7,738,000 7,194,000
Non-cash investing and financing activities:      
Unpaid property and equipment 2,111,000 1,041,000 476,000
Intangible assets acquired with deferred consideration $ 43,276,000 $ 0 $ 0
v3.25.4
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Pay vs Performance Disclosure      
Net Income (Loss) $ (17,923) $ 12,363 $ (104,767)
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement

Insider Trading Arrangements

During the three months ended December 31, 2025, our Board of Directors and officers (as defined in Rule 16a-1(f)) under the Exchange Act adopted or terminated the contracts, instructions or written plans for the purchase or sale of the Company’s securities set forth in the table below.

 

 

 

 

Type of Trading Arrangement

 

 

 

Name and Title

Action

Adoption Date

Termination Date

Rule 10b5-1*

Non-Rule 10b5-1**

Total Shares of Common Stock to be Sold***

Total Shares of Common Stock to be Purchased

Expiration Date

Sarah Butterfass, Director

Adopted

12/9/2025

N/A

Yes

 

40.0% of net shares resulting from the vesting of 6,761 (gross) RSUs

N/A

6/30/2026

Shravan Goli, Director

Adopted

11/24/2025

N/A

Yes

 

5,262 shares resulted from the vested RSUs, and 50% of net shares resulting from the vesting of 6,761 (gross) RSUs

N/A

11/30/2026

Charles (CJ) Prober, Chief Executive Officer

Terminated

N/A

10/17/2025

Yes

 

6.3% of net shares resulting from the vesting of 531,789 (gross) restricted stock and performance shares, 1,707 net shares from a prior ESPP purchase, and net shares to be purchased in Feb 2025 under ESPP

N/A

11/21/2026

 

 

 

 

 

 

 

 

 

* Contract, instruction or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act.

** “Non-Rule 10b5-1 trading arrangement” as defined in Item 408(c) of Regulation S-K under the Exchange Act.

*** Net shares issued with shares withheld to administratively facilitate the withholding and subsequent remittance of personal income and payroll taxes for the vesting of RSUs.
Sarah Butterfass  
Trading Arrangements, by Individual  
Name Sarah Butterfass
Title Director
Rule 10b5-1 Arrangement Adopted true
Non-Rule 10b5-1 Arrangement Adopted false
Adoption Date 12/9/2025
Rule 10b5-1 Arrangement Terminated true
Non-Rule 10b5-1 Arrangement Terminated false
Termination Date N/A
Expiration Date 6/30/2026
Arrangement Duration 204 days
Aggregate Available 40
Shravan Goli  
Trading Arrangements, by Individual  
Name Shravan Goli
Title Director
Rule 10b5-1 Arrangement Adopted true
Non-Rule 10b5-1 Arrangement Adopted false
Adoption Date 11/24/2025
Rule 10b5-1 Arrangement Terminated true
Non-Rule 10b5-1 Arrangement Terminated false
Termination Date N/A
Expiration Date 11/30/2026
Arrangement Duration 372 days
Aggregate Available 50
Charles (CJ) Prober  
Trading Arrangements, by Individual  
Name Charles (CJ) Prober
Title Chief Executive Officer
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated true
Non-Rule 10b5-1 Arrangement Terminated true
Termination Date 10/17/2025
Expiration Date 11/21/2026
Aggregate Available 6.3
Restricted Stock Units (RSUs) | Shravan Goli  
Trading Arrangements, by Individual  
Aggregate Available 5,262
Gross Restricted Stock Units | Sarah Butterfass  
Trading Arrangements, by Individual  
Aggregate Available 6,761
Gross Restricted Stock Units | Shravan Goli  
Trading Arrangements, by Individual  
Aggregate Available 6,761
Gross Restricted Stock Units | Charles (CJ) Prober  
Trading Arrangements, by Individual  
Aggregate Available 531,789
Performance Shares | Charles (CJ) Prober  
Trading Arrangements, by Individual  
Aggregate Available 1,707
v3.25.4
Cybersecurity Risk Management, Strategy, and Governance
 12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Item 1C. Cybersecurity

 

Risk management and strategy

 

We implement and maintain various information security processes designed to identify, assess and manage material risks from cybersecurity threats to our critical computer networks, third party hosted services, communications systems, hardware and software, and our critical data, including intellectual property and confidential information that is proprietary, strategic or competitive in nature (“Information Systems and Data”).

 

Our cybersecurity functions include representatives from information technology, engineering, information security, legal, impacted business units or products and other departments as applicable (together, the “Cybersecurity Team”) helps identify, assess and manage the Company’s cybersecurity threats and risks. The Cybersecurity Team is responsible for identifying, assessing and managing cybersecurity risks by monitoring and evaluating our threat environment using various methods including, for example manual and automated tools such as vulnerability scans, penetration tests and a public bug bounty program; subscribing to reports and services that identify cybersecurity threats; conducting risk assessments and internal and external audits; using external intelligence feeds; and conducting tabletop incident response exercises.

 

Depending on the environment, we implement and maintain various technical, physical, and organizational measures, processes, standards and policies designed to manage and mitigate material risks from cybersecurity threats to our Information Systems and Data, including, for example: (1) having an information security incident response plan for incident detection and response; (2) maintaining a disaster recovery plan, business continuity program,

vulnerability management process and vendor risk management process; (3) conducting periodic risk assessments and employee training on cybersecurity; (4) maintaining security controls intended to address certain recognized industry cyber frameworks; (5) encrypting and segregating data, having network security controls, access controls and physical security, monitoring systems, managing assets (tracking and disposal) and conducting penetration testing; and (6) maintaining cybersecurity insurance.

 

Our assessment and management of material risks from cybersecurity threats are integrated into the Company’s overall risk management processes. For example, (1) cybersecurity risk is addressed as a component of the Company’s enterprise risk management program; (2) our Cybersecurity Team works with our management team in an effort to prioritize our risk management processes and mitigate cybersecurity threats that are more likely to lead to a material impact to our business; (3) our Cybersecurity Team and management team evaluates material risks from cybersecurity threats against our overall business objectives and reports to the cybersecurity committee chairperson of the board of directors who may then notify the cybersecurity committee and board of directors (as appropriate), to further evaluate our overall enterprise risk.

We use third-party service providers to assist us from time to time in an effort to identify, assess, and manage material risks from cybersecurity threats. For example, these service providers include professional services firms, threat intelligence service providers, managed cybersecurity service providers, penetration testing firms and forensic investigators. We also have a public bug bounty program.

We use third-party service providers to perform a variety of functions throughout our business, such as using application providers for core applications (including finance, HR, CRM, email services, collaboration tools etc.), hosting companies for our websites, contract manufacturing organizations, distributors and supply chain resources for software, hardware, manufacturing and distribution of our products. We have a vendor management process designed to manage cybersecurity risks associated with our use of these providers. This process includes risk assessments, security questionnaires, review of vendor security programs, review of available security assessments, reports, and audits. Depending on the nature of the services provided, the sensitivity of the Information Systems and Data at issue, and the type of provider, our vendor management process may involve different levels of assessment designed to help identify cybersecurity risks associated with a provider and impose contractual obligations related to cybersecurity on the provider.

 

For a description of the risks from cybersecurity threats that may materially affect the Company and how they may do so, see our risk factors under Part 1. Item 1A. Risk Factors in this Annual Report on Form 10-K, including “Product security vulnerabilities, system security risks, data protection breaches, cyber-attacks, improper use of artificial intelligence (“AI”) tools, and other threats and risks, could disrupt or otherwise compromise our products, services, internal operations or information technology systems, or those of third parties with whom we work. Actual or perceived non-compliance with our privacy and security obligations could lead to regulatory investigations or actions, litigation, fines and penalties, business operation disruption, reputational harm, loss of revenue or profits, loss of customers or sales, and other adverse business consequences.”.

Governance

 

Our board of directors addresses the Company’s cybersecurity risk management as part of its general oversight function. The board of directors’ cybersecurity committee is responsible for overseeing the Company’s cybersecurity risk management processes, including oversight and mitigation of risks from cybersecurity threats.

 

Our cybersecurity risk assessment and management processes are implemented and maintained by certain Company management, including our General Counsel & Chief Privacy Officer, Head of Corporate Security and Head of Product Security, each of whom have substantial industry expertise, including past experience in cyber security in roles at other public companies.

Our General Counsel & Chief Privacy Officer, who has worked in the privacy and cyber security space since 2008, is responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into the Company’s overall risk management strategy, and communicating key priorities to relevant personnel. She is responsible for approving budgets, helping prepare for cybersecurity incidents, approving cybersecurity processes, and reviewing security assessments and other security-related reports.

 

Our information security incident response plan is designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including the incident response leadership team. The incident response leadership team works with the Company’s incident response team to help the Company mitigate and remediate cybersecurity incidents of which they are notified. In addition, the Company’s information security incident response plan includes reporting to the cybersecurity committee chairperson of the board of directors for certain cybersecurity incidents and, if appropriate, the cybersecurity committee and the board of directors.

 

The cybersecurity committee receives periodic notices (written and verbal) from the Cybersecurity Team concerning the Company’s significant cybersecurity threats and risk and the processes the Company has implemented that are intended to address them. The cybersecurity committee also receives quarterly reports, summaries or presentations related to the Company's cybersecurity program as it relates to both our corporate systems and products.

Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] Our assessment and management of material risks from cybersecurity threats are integrated into the Company’s overall risk management processes. For example, (1) cybersecurity risk is addressed as a component of the Company’s enterprise risk management program; (2) our Cybersecurity Team works with our management team in an effort to prioritize our risk management processes and mitigate cybersecurity threats that are more likely to lead to a material impact to our business; (3) our Cybersecurity Team and management team evaluates material risks from cybersecurity threats against our overall business objectives and reports to the cybersecurity committee chairperson of the board of directors who may then notify the cybersecurity committee and board of directors (as appropriate), to further evaluate our overall enterprise risk.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Text Block]

For a description of the risks from cybersecurity threats that may materially affect the Company and how they may do so, see our risk factors under Part 1. Item 1A. Risk Factors in this Annual Report on Form 10-K, including “Product security vulnerabilities, system security risks, data protection breaches, cyber-attacks, improper use of artificial intelligence (“AI”) tools, and other threats and risks, could disrupt or otherwise compromise our products, services, internal operations or information technology systems, or those of third parties with whom we work. Actual or perceived non-compliance with our privacy and security obligations could lead to regulatory investigations or actions, litigation, fines and penalties, business operation disruption, reputational harm, loss of revenue or profits, loss of customers or sales, and other adverse business consequences.”.

Cybersecurity Risk Board of Directors Oversight [Text Block]

Governance

 

Our board of directors addresses the Company’s cybersecurity risk management as part of its general oversight function. The board of directors’ cybersecurity committee is responsible for overseeing the Company’s cybersecurity risk management processes, including oversight and mitigation of risks from cybersecurity threats.

 

Our cybersecurity risk assessment and management processes are implemented and maintained by certain Company management, including our General Counsel & Chief Privacy Officer, Head of Corporate Security and Head of Product Security, each of whom have substantial industry expertise, including past experience in cyber security in roles at other public companies.

Our General Counsel & Chief Privacy Officer, who has worked in the privacy and cyber security space since 2008, is responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into the Company’s overall risk management strategy, and communicating key priorities to relevant personnel. She is responsible for approving budgets, helping prepare for cybersecurity incidents, approving cybersecurity processes, and reviewing security assessments and other security-related reports.

 

Our information security incident response plan is designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including the incident response leadership team. The incident response leadership team works with the Company’s incident response team to help the Company mitigate and remediate cybersecurity incidents of which they are notified. In addition, the Company’s information security incident response plan includes reporting to the cybersecurity committee chairperson of the board of directors for certain cybersecurity incidents and, if appropriate, the cybersecurity committee and the board of directors.

 

The cybersecurity committee receives periodic notices (written and verbal) from the Cybersecurity Team concerning the Company’s significant cybersecurity threats and risk and the processes the Company has implemented that are intended to address them. The cybersecurity committee also receives quarterly reports, summaries or presentations related to the Company's cybersecurity program as it relates to both our corporate systems and products.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The board of directors’ cybersecurity committee is responsible for overseeing the Company’s cybersecurity risk management processes, including oversight and mitigation of risks from cybersecurity threats.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The cybersecurity committee also receives quarterly reports, summaries or presentations related to the Company's cybersecurity program as it relates to both our corporate systems and products.
Cybersecurity Risk Role of Management [Text Block]

Our General Counsel & Chief Privacy Officer, who has worked in the privacy and cyber security space since 2008, is responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into the Company’s overall risk management strategy, and communicating key priorities to relevant personnel. She is responsible for approving budgets, helping prepare for cybersecurity incidents, approving cybersecurity processes, and reviewing security assessments and other security-related reports.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our information security incident response plan is designed to escalate certain cybersecurity incidents to members of management depending on the circumstances, including the incident response leadership team. The incident response leadership team works with the Company’s incident response team to help the Company mitigate and remediate cybersecurity incidents of which they are notified.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]

Our cybersecurity risk assessment and management processes are implemented and maintained by certain Company management, including our General Counsel & Chief Privacy Officer, Head of Corporate Security and Head of Product Security, each of whom have substantial industry expertise, including past experience in cyber security in roles at other public companies.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The incident response leadership team works with the Company’s incident response team to help the Company mitigate and remediate cybersecurity incidents of which they are notified.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
The Company and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
The Company and Summary of Significant Accounting Policies

Note 1. The Company and Summary of Significant Accounting Policies

The Company

NETGEAR, Inc. (“NETGEAR” or the “Company”) was incorporated in Delaware in January 1996. The Company is a global provider of networking technologies for businesses, homes, and service providers. The Company delivers a wide range of networking hardware, software, and services designed to enable reliable connectivity and security. Its connected solutions range from switching and wireless products that support audio and video (“AV”) over Ethernet for Pro AV applications and business networks to WiFi networking solutions, security and support services for enterprise and home networks. Additionally, the Company continually invest in research and development to create new technologies and services and to address technological trends such as AV over Ethernet, multi-Gigabit connectivity, WiFi 7, eSIM and future technologies. Its product line enables the creation and extension of wired and wireless networks and includes services that complement and enhance our hardware offerings. These products are available in multiple configurations to address the changing needs of our customers across geographic regions.

The Company sells networking products through multiple sales channels worldwide, including traditional retailers, online retailers, wholesale distributors, direct market resellers (“DMRs”), managed service providers (“MSPs”), broadband service providers and its direct online store at www.netgear.com.

Basis of presentation

The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in the consolidation of these subsidiaries.

Fiscal periods

The Company’s fiscal year begins on January 1 of the year stated and ends on December 31 of the same year. The Company reports its results on a fiscal quarter basis rather than on a calendar quarter basis. Under the fiscal quarter basis, each of the first three fiscal quarters ends on the Sunday closest to the calendar quarter end, with the fourth quarter ending on December 31.

Use of estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. As of the date of issuance of these consolidated financial statements, the Company is not aware of any specific event or circumstance that would require it to update its estimates, judgments or revise the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known.

Segments

In the first quarter of 2025, the Company realigned its business structure by separating the previously disclosed Connected Home segment into two reportable segments: Home Networking and Mobile. Effective January 1, 2025, the Company operated and reported in three segments for the first three fiscal quarters of 2025: NETGEAR for Business, Home Networking, and Mobile. Beginning on the first day of the fourth fiscal quarter of 2025, the Company streamlined its operating and reporting structure and returned to two reportable segments: Enterprise (formerly NETGEAR for Business) and Consumer (previously reported as Connected Home), with Consumer comprising the former Home Networking and Mobile businesses. None of the changes impacted previously reported consolidated net revenue, income (loss) from operations, net income (loss) per share, total assets, or stockholders’ equity. As a result, the segment information for the year ended December 31, 2025 reflects the Company’s two reportable segments, and prior-period segment information has been presented on a comparable basis. The impact on the full-year disclosure therefore relates primarily to segment naming, reflecting Enterprise (formerly NETGEAR for Business) and

Consumer (previously reported as Connected Home). Refer to “Goodwill” in Note 4, Balance Sheet Components, and Note 12, Segment Information for additional information.

Significant Accounting Policies

Cash and cash equivalents

The Company considers all highly liquid investments with an original maturity or a remaining maturity at the time of purchase of three months or less to be cash equivalents. The Company deposits cash and cash equivalents with high credit quality financial institutions.

Investments

Short-term investments are partially comprised of marketable and convertible debt securities that consist of government debts with an original maturity or a remaining maturity at the time of purchase, of greater than three months and no more than 12 months. These debt securities are classified as available-for-sale securities in accordance with the provisions of the authoritative guidance for investments and are carried at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity. Credit losses on available-for-sale debt securities with unrealized losses are recognized as allowances for credit losses limited to the amount by which fair value is below amortized cost.

Short-term investments also include marketable securities related to deferred compensation under the Company’s Deferred Compensation Plan. Mutual funds are the only investments allowed in the Company’s Deferred Compensation Plan and the investments are held in a grantor trust formed by the Company. The Company has classified these investments as trading securities as the grantor trust actively manages the asset allocation to match the participants’ notional fund allocations. These securities are recorded at fair market value with unrealized gains and losses included in Other income, net in the consolidated statements of operations.

Long-term investments are comprised of equity investments without readily determinable fair values, and investments in limited partnership funds, and are included in Other non-current assets on the consolidated balance sheets. Equity investments without readily determinable fair values are accounted for at cost, less impairment and adjusted for subsequent observable price changes obtained from orderly transactions for identical or similar investments issued by the same investee. Such changes in the basis of the equity investment are recognized in Other income, net in the consolidated statements of operations. The Company does not have a controlling interest or the ability to exercise significant influence over these investees and these investments do not have readily determinable fair values. Investments in convertible debt securities are carried at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity. Investments in limited partnership funds amounted to $2.6 million and $2.3 million as of December 31, 2025 and 2024, respectively, which are measured at fair value using the net asset value practical expedient. Changes in the fair value of these investments are recognized in Other income, net in the consolidated statements of operations.

Certain risks and uncertainties

The Company’s products are concentrated in the networking industries, which are characterized by rapid technological advances, changes in customer requirements and evolving regulatory requirements and industry standards. The success of the Company depends on management’s ability to anticipate and/or to respond quickly and adequately to such changes. Any significant delays in the development or introduction of products and services could have a material adverse effect on the Company’s business and operating results.

The Company relies on a limited number of third parties to manufacture all of its products. If any of the Company’s third-party manufacturers cannot or will not manufacture its products in required volumes, on a cost-effective basis, in a timely manner, or at all, the Company will have to secure additional manufacturing capacity. Any interruption or delay in manufacturing could have a material adverse effect on the Company’s business and operating results.

Derivative financial instruments

The Company uses foreign currency forward contracts that generally mature within six months of inception to manage the exposures to foreign exchange risk related to expected future cash flows on certain forecasted revenue,

cost of revenue, operating expenses, and on certain existing assets and liabilities. Under its foreign currency risk management strategy, the Company utilizes derivative instruments to reduce the impact of currency exchange rate movements on the Company’s operating results by offsetting gains and losses on the forward contracts with increases or decreases in foreign currency transactions. The Company does not use derivative financial instruments for speculative purposes.

The Company accounts for its derivative instruments as either assets or liabilities and records them at fair value. The Company has entered into master netting arrangements which allow net settlements under certain conditions. Although netting is permitted, it is currently the Company’s policy and practice to record all derivative assets and liabilities on a gross basis on the consolidated balance sheets. Derivatives that are not designated as hedges under the authoritative guidance for derivatives are adjusted to fair value through earnings. For derivative instruments that hedge the exposure to variability in expected future cash flows and are designated as cash flow hedges, the gains or losses on the derivative instrument are reported as a component of accumulated other comprehensive income in stockholders’ equity and reclassified into the same line item in the statement of operations as the hedged transaction, and in the same period that the hedged transaction effects earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions.

Concentration of credit risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, short-term investments and accounts receivable. The Company believes that there is minimal credit risk associated with the investment of its cash and cash equivalents and short-term investments, due to the restrictions placed on the type of investment that can be entered into under the Company’s investment policy. The Company’s short-term investments consist of investment-grade securities, and the Company’s cash and investments are held and managed by recognized financial institutions.

The Company’s customers are primarily distributors as well as retailers and broadband service providers who sell or distribute the products to a large group of end-users. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. The Company regularly performs credit evaluations of the Company’s customers’ financial condition and considers factors such as historical experience, credit quality, age of the accounts receivable balances, geographic or country-specific risks and current economic conditions that may affect customers’ ability to pay. The Company does not require collateral from its customers.

As of December 31, 2025, Best Buy, Inc. and affiliates, Amazon and affiliates, and Wal-Mart Stores, Inc and affiliates, accounted for approximately 17%, 16% and 10% of the Company’s total accounts receivable, respectively. As of December 31, 2024, Best Buy, Inc. and affiliates and Amazon and affiliates each accounted for approximately 19% of the Company’s total accounts receivable. No other customers accounted for 10% or greater of the Company’s total accounts receivable.

The Company is exposed to credit loss in the event of nonperformance by counterparties to the foreign currency forward contracts used to mitigate the effect of foreign currency exchange rate changes. The Company believes the counterparties for its outstanding contracts are large, financially sound institutions and thus, the Company does not anticipate nonperformance by these counterparties. In the event of turbulence or the onset of a financial crisis in financial markets, the failure of counterparties cannot be ruled out.

Fair value measurements

The carrying amounts of the Company’s financial instruments, including cash equivalents, short-term investments, accounts receivable, and accounts payable approximate their fair values due to their short maturities. Foreign currency forward contracts are recorded at fair value based on observable market data. Refer to Note 13, Fair Value Measurements, in Notes to Consolidated Financial Statements for disclosures regarding fair value measurements in accordance with the authoritative guidance for fair value measurements and disclosures.

Allowance for doubtful accounts

The Company maintains an allowance for doubtful accounts for estimated credit losses resulting from the inability of its customers to make required payments and reviews it quarterly. The Company determines expected credit losses by performing credit evaluations of its customers’ financial condition, establishing specific reserves for

customers in an adverse financial condition and adjusting for its expectations of changes in conditions that may impact the collectability of outstanding receivables. The Company considers factors such as historical experience, credit quality, age of the accounts receivable balances, and geographic or country-specific risks. If the financial condition of the Company’s customers should deteriorate or if actual defaults are higher than the Company’s historical experience, additional allowances may be required, which could have an adverse impact on operating expenses.

Inventories

 

Inventories consist primarily of finished goods which are valued at the lower of cost and net realizable value, with cost being determined using the first-in, first-out method. On a quarterly basis, the Company assesses the value of the inventory and writes down its value for estimated excess and obsolete inventory based upon assumptions about the future demand by reviewing inventory quantities on hand and on order under non-cancelable purchase commitments in comparison to the Company’s estimated forecast of product demand to determine what inventory, if any, is not saleable at or above cost. The Company’s analysis is primarily based on the demand forecast which takes into account market conditions, product development plans, product life expectancy and other factors. At the point of loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase of the newly established cost basis.

Property and equipment, net

Property and equipment are stated at historical cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows:

 

Computer equipment

2 years

Furniture and fixtures

5 years

Software

2-5 years

Machinery and equipment

2-3 years

Leasehold improvements

Shorter of estimated useful life or remaining lease term

 

Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. The carrying value of the asset is reviewed on a regular basis for the existence of facts, both internal and external, that may suggest impairment.

Leases

The Company determines if an arrangement is a lease or contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other accrued liabilities, and operating lease liabilities on the consolidated balance sheets. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For certain office leases, the Company accounts for the lease and non-lease components as a single lease component to the extent that the timing and pattern of transfer are similar for the lease and non-lease components and the lease component qualifies as an operating lease. Lease expense is recognized on a straight-line basis over the lease term.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on a benchmark interest rate adjusted for its specific credit risk. The operating lease ROU asset includes any lease payments made and excludes lease incentives.

Intangible Assets, net

Purchased intangible assets with finite lives are recorded at cost and amortized using the straight-line method over the estimated economic lives of the assets, which range from one to seven years. Contingent consideration related

to acquired intangible assets is initially measured at present value and is reassessed each reporting period, with changes recorded as adjustments to the related liability and the carrying amount of the associated intangible asset. Any incremental cost is amortized using the same method and remaining useful life as the original intangible asset, with a cumulative catch-up adjustment recorded in the period of change. Finite-lived intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition.

Goodwill

Goodwill represents the purchase price over estimated fair value of net assets of businesses acquired in a business combination. Goodwill acquired in a business combination is not amortized, but instead tested for impairment at least annually on the first day of the fourth quarter. Should certain events or indicators of impairment occur between annual impairment tests, the Company performs the impairment test as those events or indicators occur. Examples of such events or circumstances include the following: a significant decline in the Company’s expected future cash flows; a sustained, significant decline in the Company’s stock price and market capitalization; a significant adverse change in the business climate; and slower growth rates.

Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of the reporting unit is less than its carrying value. The qualitative assessment considers the following factors: macroeconomic conditions, industry and market considerations, cost factors, overall company financial performance, events affecting the reporting units, and changes in the Company’s share price. If the reporting unit does not pass the qualitative assessment, the Company estimates its fair value and compares the fair value with the carrying value of its reporting unit, including goodwill. If the fair value is greater than the carrying value of its reporting unit, no impairment is recorded. If the fair value is less than the carrying value, an impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. The impairment charge would be recorded to earnings in the consolidated statements of operations.

Revenue Recognition

 

Revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers at the amount that reflects the consideration that the Company expects to be entitled to in exchange for those goods or services.

 

The Company derives its revenue primarily from product sales, consisting of sales of Enterprise and Consumer hardware products to its customers - retailers, distributors, service providers, and services. Revenue is recognized at a point in time when control of the goods is transferred to the customer, generally occurring upon shipment or delivery dependent upon the terms of the underlying contract or once the risk of loss has been transferred to the customer. The Company evaluates its customers’ ability to pay based on various factors like historical payment experience, financial metrics and customer credit scores. Payment is collected within a short period of time from the date control over the product is transferred to the customer or after commencement of services.

Revenue for services relates primarily to sales of subscriptions of the Company’s value-added services, including security and privacy, parental controls and remote network management as well as advanced technical support and extended warranty. Service revenue is generally recognized over time ratably over the contract term beginning when the customer is expected to activate their account. Service contracts are generally for 30 days or 12 months in length, billed either monthly or annually and generally in advance. The technical support services consist of telephone and internet access to technical support personnel and extended warranty. All such service or support sales are typically recognized using an input measure of progress by looking at the time elapsed and based on the customer receiving the benefit throughout the contract period. To date, services revenue has not represented a significant percentage of our total revenue.

 

Revenue from all sale types is recognized at the transaction price and is calculated as selling price net of variable consideration which may include estimates for future returns, sales incentives and price protection. We record estimated variable consideration related to these items as a reduction to revenue at the time of revenue recognition. An allowance for future sales returns is established based on historical trends in product return rates. The Company

uses the expected value method to arrive at the amount of variable consideration which is based on management’s analysis of historical and anticipated returns information, sell through and channel inventory levels, current economic trends, and changes in customer demand. The Company’s standard obligation to its direct customers generally provides for a full refund in the event that such product is not merchantable or is found to be damaged or defective. Certain distributors and retailers generally have the right to return product for stock rotation purposes as well. At the time the Company records the reduction to revenue, the Company includes within cost of revenue a write-down to reduce the carrying value of such products to net realizable value.

 

In addition to channel returns, sales incentive programs offer certain reimbursement rights to qualified distributors and retailers for marketing expenditures. If distinct goods or services are received from the customer in exchange for the payment, the expenditures are accrued within operating expenses or cost of revenue as appropriate, otherwise expenditures are recorded as a reduction of revenue. The Company provides price protections in limited cases, with variable consideration assessed based on customary business practice such as anticipated price decreases, historical pricing information and customer claims processing.

 

For products sold with third-party services where the Company obtains control of the product and/or service before transferring it to the customer, the Company recognizes revenue based on the gross amount billed to customers. The Company recognizes revenue on a net basis when the Company is acting as an agent between the customer and the vendor. The Company considers several factors in determining when it obtains control, such as determining the responsible party for fulfillment of the services, whether the Company has inventory risk before the service is transferred or if it has discretion to establish pricing for the third-party services.

Contracts with Multiple Performance Obligations

 

Some of the Company’s contracts with customers contain multiple promised goods or services. Such contracts may include hardware products with embedded software and other various software subscription services and support. For these contracts, the Company evaluates whether each deliverable is a distinct promise and if so, accounts for the promises separately as individual performance obligations. If a promised good or service is not distinct in accordance with the revenue guidance, the Company combines that good or service with the other promised goods or services in the arrangement and accounts for it as a distinct good. The embedded software on most of the hardware products is not considered distinct and therefore the combined hardware and incidental software are treated as one performance obligation and recognized at the point in time when control of product transfers to the customer. Services included with certain hardware products are considered distinct, as a customer can benefit from the product without these services and, therefore, the hardware and service are treated as separate performance obligations.

 

Revenue is allocated among the performance obligations based on their relative standalone selling prices. Standalone selling prices are generally determined based on the prices charged to customers or using an adjusted market assessment. The estimated standalone selling price is typically directly observable from sales based on a range of prices, but may be determined using information such as prices charged for similar offerings, estimated costs to provide the performance obligation and other observable inputs. Revenues allocated to the hardware and bundled subscription are recognized when control has transferred to the customer, which generally occurs when the product is shipped. Revenue allocated to product-related bundled services are deferred and recognized on a straight-line basis over the estimated period they are expected to be provided.

Deferred Revenue

Deferred revenue consists of service and support fees due in advance of satisfying performance. The majority of the Company’s deferred revenue balance consists of the unrecognized portion of service revenue from its value-added services, including cyber security, parental controls and remote network management services as well as advanced technical support and extended warranty, which is recognized as revenue ratably over the contractual service period. Performance obligations expected to be fulfilled within one year are classified as current liabilities and the remaining are recorded as noncurrent liabilities.

Warranties

Hardware products regularly include warranties to the end customers that consist of bug fixes, minor updates such that the product continues to function according to published specs in a dynamic environment, and phone support. These standard warranties are assurance type warranties and do not offer any services beyond the assurance that the product will continue working as specified. Therefore, warranties are not considered separate performance obligations

in the arrangement. Instead, the expected cost of product warranty is accrued as expense at the time we recognize revenue in accordance with authoritative guidance. Extended warranties are sold separately and include additional support services. The transaction price for extended warranties is accounted for as service revenue and recognized over the life of the contract.

Shipping and Handling

Shipping and handling fees billed to customers are included in Net revenue. Shipping and handling costs associated with inbound freight are included in Cost of revenue. In cases where the Company gives a freight allowance to the customer for their own inbound freight costs, such costs are appropriately recorded as a reduction in Net revenue. Shipping and handling costs associated with outbound freight are included in Sales and marketing expenses. The Company has elected to account for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products.

Shipping and handling costs associated with outbound freight totaled $9.4 million, $9.5 million and $8.8 million in the years ended December 31, 2025, 2024 and 2023, respectively.

Research and development

Costs incurred in the research and development of new products are charged to expense as incurred.

Advertising costs

Advertising costs are expensed as incurred. Total advertising and promotional expenses were $19.5 million, $23.3 million, and $28.9 million in the years ended December 31, 2025, 2024 and 2023, respectively.

Income taxes

The Company accounts for income taxes under an asset and liability approach. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences resulting from different treatment for tax versus accounting for certain items, such as accruals and allowances not currently deductible for tax purposes. These differences result in deferred tax assets and liabilities, which are included within the consolidated balance sheets. The Company must then assess the likelihood that the Company’s deferred tax assets will be recovered from future taxable income and to the extent the Company believes that recovery is not more likely than not, the Company must establish a valuation allowance. The Company’s assessment considers the recognition of deferred tax assets on a jurisdictional basis. Accordingly, in assessing its future taxable income on a jurisdictional basis, the Company considers the effect of its transfer pricing policies on that income. The Tax Act introduced a new tax on Global Intangible Low-Taxed Income (“GILTI”) effective as of January 1, 2018. The Company’s policy is to treat GILTI as a period cost if and when incurred.

In the ordinary course of business there is inherent uncertainty in assessing the Company’s income tax positions. The Company assesses its tax positions and records benefits for all years subject to examination based on management’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company records the largest amount of tax benefit with a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recorded in the financial statements. Where applicable, associated interest and penalties have also been recognized as a component of income tax expense.

Net income (loss) per share

Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include common shares issuable upon exercise of stock options, vesting of restricted stock awards and performance shares, and issuances of shares under the Employee Stock Purchase Plan, which are reflected in diluted net income per share by application of

the treasury stock method. Potentially dilutive common shares are excluded from the computation of diluted net income per share when their effect is anti-dilutive.

Stock-based compensation

The Company measures stock-based compensation at the grant date based on the fair value of the award. The fair value of stock options and the shares offered under the Employee Stock Purchase Plan (“ESPP”) is estimated using the Black-Scholes option pricing model. Estimated compensation cost relating to restricted stock units (“RSUs”) and performance shares is based on the closing fair market value of the Company’s common stock on the date of grant.

The compensation expense for equity awards is recognized over the vesting period of the award under a straight-line vesting method. Forfeitures are accounted for as they occur. In addition, for performance shares, the Company evaluates the probability of achieving the performance conditions at the end of each reporting period and records the related stock-based compensation expense based on performance to date over the service period. All excess tax benefits and tax deficiencies arising from stock awards vesting or settlement are recorded as income tax expense or benefit rather than in equity. Refer to Note 11, Employee Benefit Plans, in Notes to Consolidated Financial Statements for a further discussion on stock-based compensation.

Comprehensive income (loss)

Comprehensive income (loss) consists of net income (loss) and other gains and losses affecting stockholder’s equity that the Company excluded from net income (loss), including gains and losses related to fair value of short-term investments and the effective portion of cash flow hedges that were outstanding as of the end of the year.

Foreign currency translation and re-measurement

The Company’s functional currency is the U.S. dollar for all of its international subsidiaries. Foreign currency transactions of international subsidiaries are re-measured into U.S. dollars at the end-of-period exchange rates for monetary assets and liabilities, and at historical exchange rates for non-monetary assets. Revenue is re-measured at average exchange rates in effect during each period. Expenses are re-measured at average exchange rates in effect during each period, except for expenses related to non-monetary assets, which are re-measured at historical exchange rates. Gains and losses arising from foreign currency transactions are included in Other income, net.

Recent accounting pronouncements

Accounting Pronouncements Recently Adopted

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” which requires the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 requires the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. ASU 2023-09 is effective for the Company for the year ending December 31, 2025 and early adoption is permitted. The Company adopted the new standard effective December 31, 2025 on a prospective basis. Refer to Note 8, Income Taxes, for details.

Accounting Pronouncements Not Yet Effective

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”, which expands the disclosure requirements for specific costs and expenses. ASU 2024-03 is effective for the Company for the year ending December 31, 2027 and early adoption is permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. The Company does not expect that the guidance will have material impacts on its financial position, results of operations or cash flows. The Company is evaluating the impact that the updated standard will have on its financial statement disclosures.

In July 2025, the FASB issued ASU 2025-05, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets”, which introduces a practical expedient permitting entities to assume that current economic conditions as of the balance sheet date do not change over the remaining life

of current accounts receivable and contract assets arising from transactions within the scope of ASC 606, including assets acquired in a business combination. ASU2025-05 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2026 on a prospective basis. Early adoption is permitted. The Company does not expect that the updated standard will have material impacts on its financial position, results of operations or cash flow.

In September 2025, the FASB issued ASU 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software”, which eliminates project stages and requires capitalizing costs when management has committed to funding the project and it is probable of completion. ASU2025-06 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2028 on a prospective basis. Early adoption is permitted. The Company is evaluating the impact that the updated standard will have on its financial position, results of operations or cash flow.

In November 2025, the FASB issued ASU 2025-09, "Derivatives and Hedging (Topic 815): Hedge Accounting Improvements", which amends existing hedge accounting guidance to better align financial reporting with the economics of an entity’s risk management activities. ASU2025-09 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2027 on a prospective basis. Early adoption is permitted. The Company is evaluating the impact that the updated standard will have on its financial statement disclosures.

In December 2025, the FASB issued ASU 2025-11, "Interim Reporting (Topic 270): Narrow Scope Improvement”, which amends interim reporting guidance to improve the consistency and transparency of interim disclosures, including clarifications to required disclosures and a new principle for reporting material events occurring after the most recent annual period. ASU 2025-11 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2028 on a prospective basis. Early adoption is permitted. The Company is evaluating the impact that the updated standard will have on its financial statement disclosures.

In December 2025, the FASB issued ASU 2025-12, “Codification Improvements”, which makes minor corrections, clarifications, and enhancements across the FASB Accounting Standards Codification. ASU2025-12 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2027 on a prospective basis. Early adoption is permitted. The Company is evaluating the impact that the updated standard will have on its financial statement disclosures.

With the exception of the new standards discussed above, there have been no other new accounting pronouncements that have significance, or potential significance, to the Company’s financial position, results of operations and cash flows.
v3.25.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Note 2. Revenue Recognition

Revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

Transaction Price Allocated to the Remaining Performance Obligations

Remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities, in-transit orders with destination terms, and non-cancellable backlog. Non-cancellable backlog includes goods for which customer purchase orders have been accepted, that are scheduled or in the process of being scheduled for shipment, and that are not yet invoiced.

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that were unsatisfied or partially unsatisfied as of December 31, 2025:

 

(In thousands)

 

 

Less than 1 year

 

 

1 to 2 years

 

 

Beyond 2 years

 

 

Total

Performance obligations

 

$

50,726

 

$

2,355

 

$

1,904

 

$

54,985

 

 

Contract Costs

Costs to fulfill a contract are capitalized when they relate directly to an existing contract or specific anticipated contract, generate or enhance resources that will be used to fulfill performance obligations and are recoverable. These costs include direct cost incurred at inception of a contract which enables the fulfillment of the performance obligation and totaled $6.4 million and $6.3 million as of December 31, 2025 and 2024, respectively. There was no impairment of capitalized contract costs during the years ended December 31, 2025, 2024 and 2023.

Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that otherwise would have been recognized is one year or less. These costs are included in Sales and marketing and General and administrative expenses. If the incremental direct costs of obtaining a contract, which consist of sales commissions, relate to a service recognized over a period longer than one year, costs are deferred and amortized in line with the related services over the period of benefit. Deferred commissions are classified as non-current based on the original amortization period of over one year. As of December 31, 2025 and 2024, deferred commissions were not significant.

Contract Balances

The Company records accounts receivable when it has an unconditional right to consideration. Contract liabilities are recorded when cash payments are received or due in advance of performance, where the Company has unsatisfied performance obligations. Contract liabilities are mainly classified as Deferred revenue on the consolidated balance sheets.

Payment terms vary by customer. The time between invoicing and when payment is due is not significant. For certain products or services and customer types, payment is required before the products or services are delivered to the customer.

The following table reflects the contract balances:

 

(In thousands)

 

Balance Sheet Location

 

 

December 31, 2025

 

 

December 31, 2024

Accounts receivable, net

 

Accounts receivable, net

 

$

142,045

 

$

156,210

Contract liabilities – current

 

Deferred revenue

 

$

26,904

 

$

30,261

Contract liabilities – non-current

 

Other non-current liabilities

 

$

4,206

 

$

5,101

 

The difference in the balances of the Company’s contract assets and liabilities as of December 31, 2025 and 2024 primarily results from the timing difference between the Company’s performance and the customer’s payment.

 

During the years ended December 31, 2025, 2024 and 2023, $47.2 million, $51.1 million and $48.4 million, respectively, of revenue were deferred due to unsatisfied performance obligations for service contracts and undelivered product commitments, $51.5 million, $47.7 million and $41.4 million, respectively, of revenue were recognized for the satisfaction of performance obligations, and $30.4 million, $27.4 million and $21.5 million, respectively, of this recognized revenue were included in the contract liability balance at the beginning of the period, respectively.

There were no significant changes in estimates during the periods that would affect the contract balances.

Disaggregation of Revenue

In the following table, net revenue is disaggregated by geographic region and sales channel. The Company conducts business across three geographic regions: Americas; Europe, Middle East, and Africa (“EMEA”); and Asia Pacific (“APAC”). The table also includes reconciliations of the disaggregated revenue by reportable segment. Refer to “Segments” in Note 1, The Company and Summary of Significant Accounting Policies, for information regarding the Company’s segment changes during 2025. As of December 31, 2025, the Company operated and reported in two segments: Enterprise (formerly NETGEAR for Business), and Consumer (formerly reported as
Connected Home). Sales and usage-based taxes are excluded from net revenue.

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

(In thousands)

 

 

Enterprise

 

 

Consumer

 

 

Total

 

 

Enterprise

 

 

Consumer

 

 

Total

 

 

Enterprise

 

 

Consumer

 

 

Total

Geographic regions (1) :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

176,791

 

$

299,229

 

$

476,020

 

$

144,336

 

$

311,704

 

$

456,040

 

$

146,045

 

$

358,304

 

$

504,349

EMEA

 

 

106,195

 

 

33,407

 

 

139,602

 

 

88,782

 

 

38,478

 

 

127,260

 

 

102,839

 

 

46,083

 

 

148,922

APAC

 

 

59,043

 

 

24,956

 

 

83,999

 

 

54,694

 

 

35,765

 

 

90,459

 

 

45,091

 

 

42,478

 

 

87,569

Total

 

$

342,029

 

$

357,592

 

$

699,621

 

$

287,812

 

$

385,947

 

$

673,759

 

$

293,975

 

$

446,865

 

$

740,840

Sales channels:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service provider (2)

 

$

1,127

 

$

106,766

 

$

107,893

 

$

977

 

$

139,202

 

$

140,179

 

$

579

 

$

151,697

 

$

152,276

Non-service provider

 

 

340,902

 

 

250,826

 

 

591,728

 

 

286,835

 

 

246,745

 

 

533,580

 

 

293,396

 

 

295,168

 

 

588,564

Total

 

$

342,029

 

$

357,592

 

$

699,621

 

$

287,812

 

$

385,947

 

$

673,759

 

$

293,975

 

$

446,865

 

$

740,840

_____________________________

(1) No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.

(2) Service provider net revenue in Consumer Segment included cable net revenue from retail channels. Prior-period amounts have been recast to conform to the current-period presentation.
v3.25.4
Business Acquisition
 12 Months Ended
Dec. 31, 2025
Business Combinations [Abstract]  
Business Acquisition

Note 3. Business Acquisition

On June 16, 2025, the Company acquired Exium Inc. (“Exium”), a cybersecurity company focused on developing and delivering Secure Access Service Edge (SASE) platforms, as part of its continued investment in cloud-based solutions for advanced business connectivity. The Company believes that Exium’s products and expertise will enhance its network offering by adding an integrated SASE platform tailored for small and medium enterprises, which strategically aligns with its existing products, teams, and target markets.

The total purchase consideration was $12.6 million, which consisted of $12.1 million in cash paid upon acquisition, and $0.5 million in acquisition holdback for potential purchase price adjustments and indemnification, if any. In addition, $2.4 million may be payable as retention compensation. The acquisition qualified as a business combination and was accounted for using the acquisition method. The results of Exium have been included in the consolidated financial statements since the date of acquisition. Pro forma results of operations for the acquisition are not presented as the financial impact to the Company's consolidated results of operations is not material.

Of the total purchase consideration, $8.7 million was allocated to goodwill, and $4.3 million to intangible assets, of which $4.2 million related to developed technology. The developed technology was valued using the multi-period excess earnings method under the income approach with a 28.0% discount rate and has a provisional amortization period of seven years. All the other assets acquired and liabilities assumed were not material. The deferred tax balance recognized in connection with the acquisition was not material.

The goodwill recorded on the acquisition of Exium is not deductible for U.S. federal or U.S. state income tax purposes. The goodwill recognized was allocated to the Company's Enterprise segment, and it is primarily attributable to expected synergies, and future growth opportunities associated with Exium’s cybersecurity platform.
v3.25.4
Balance Sheet Components
 12 Months Ended
Dec. 31, 2025
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Components

Note 4. Balance Sheet Components

Available-for-sale investments

 

Amortized cost and estimated fair market value of investments classified as available-for-sale, excluding cash equivalents, as of December 31, 2025, and December 31, 2024, were as follows:

 

 

 

 

December 31, 2025

(In thousands)

 

 

Amortized Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Estimated
Fair Value

U.S. treasury securities

 

$

110,048

 

$

162

 

$

—

 

$

110,210

Total

 

$

110,048

 

$

162

 

$

—

 

$

110,210

 

 

 

 

December 31, 2024

(In thousands)

 

 

Amortized Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Estimated
Fair Value

U.S. treasury securities

 

$

119,199

 

$

171

 

$

—

 

$

119,370

Total

 

$

119,199

 

$

171

 

$

—

 

$

119,370

The contractual maturities on the U.S. treasury securities as of December 31, 2025, are all due within one year. Accrued interest receivable as of December 31, 2025 and 2024 was $1.1 million and $0.8 million, respectively, and was recorded within Prepaid expenses and other current assets on the consolidated balance sheets.

 

The Company had no investment classified as available-for-sale in a continuous unrealized loss position for which an allowance for credit losses was not recorded as of December 31, 2025 and 2024.

 

In the years ended December 31, 2025, 2024 and 2023, no unrealized losses on available-for-sale securities were recognized in income. The Company does not intend to sell, and it is unlikely that it will be required to sell the investments in an unrealized loss position prior to their anticipated recovery. The investments are high quality U.S. treasury securities and the decline in fair value is largely due to changes in interest rates and other market conditions with the fair value expected to recover as they reach maturity. There were no other-than-temporary impairments for these securities during the years ended December 31, 2025, 2024 and 2023. Refer to Note 13, Fair Value Measurements, for detailed disclosures regarding fair value measurements.

Inventories

 

(In thousands)

 

 

December 31, 2025

 

 

December 31, 2024

Raw materials

 

$

8,828

 

$

13,439

Finished goods

 

 

167,628

 

 

149,100

Total

 

$

176,456

 

$

162,539

 

The Company records provisions for excess and obsolete inventory based on assumptions about future demand and the amounts incurred were $3.5 million, $6.1 million and $3.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. While management believes the estimates and assumptions underlying its current forecasts are reasonable, there is risk that additional charges may be necessary if current forecasts are greater than actual demand.

Property and equipment, net

 

(In thousands)

 

 

December 31, 2025

 

 

December 31, 2024

Machinery and equipment

 

$

54,007

 

$

54,355

Furniture and fixtures

 

 

3,482

 

 

4,185

Leasehold improvements

 

 

21,475

 

 

15,843

Software

 

 

21,642

 

 

24,610

Computer equipment

 

 

3,370

 

 

5,384

Total property and equipment, gross

 

 

103,976

 

 

104,377

Accumulated depreciation

 

 

(77,975)

 

 

(93,089)

Total

 

$

26,001

 

$

11,288

 

Depreciation expense pertaining to property and equipment was $6.8 million, $6.5 million and $6.9 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Intangible Assets, net

 

 

December 31, 2025

(In thousands)

 

Gross

 

 

Accumulated
Amortization

 

 

Accumulated Impairment

 

 

Net

Technology

$

39,594

 

$

(1,166)

 

$

—

 

$

38,428

Customer contracts and related relationships

 

50

 

 

(3)

 

 

—

 

 

47

Other

 

10

 

 

(5)

 

 

—

 

 

5

Total

$

39,654

 

$

(1,174)

 

$

—

 

$

38,480

 

In the fourth fiscal quarter of 2025, the Company acquired a perpetual software license related to its managed switch products, which is included within Technology intangible assets. The license is accounted for as a finite-lived intangible asset and is amortized on a straight-line basis over its estimated useful life of seven years. The gross carrying amount of the software license intangible asset of $35.4 million includes the present value of fixed deferred payments, the present value of contingent consideration when probable and reasonably estimable, and amount recognized upon the extinguishments of an accrued liability. Increases in intangible assets not related to the aforementioned software license pertain to the Exium business acquisition. Refer to Note 3, Business Acquisition, for additional details.

As of December 31, 2024, all of the Company’s intangible assets were fully amortized. There was no amortization expense or other activity related to intangible assets during the year ended December 31, 2024. Amortization of the intangible assets in the years ended December 31, 2025, 2024 and 2023 was $1.2 million, zero and $0.3 million, respectively.

An intangible asset impairment charge of $1.1 million was recognized in the year ended December 31, 2023, which reduced the intangible assets, net to zero. No intangibles impairment was recorded in the years ended December 31, 2025 or 2024.

As of December 31, 2025, estimated amortization expense related to finite-lived intangibles for each of the remaining years was as follows (in thousands):

2026

 

$

5,666

2027

 

 

5,661

2028

 

 

5,661

2029

 

 

5,661

2030

 

 

5,661

Thereafter

 

 

10,170

Total

 

$

38,480

Goodwill

(In thousands)

 

 

Enterprise

 

 

Consumer

 

Total

 As of December 31, 2023

 

$

36,279

 

$

—

$

$36,279

 As of December 31, 2024

 

$

36,279

 

$

—

$

$36,279

 Goodwill from acquisition of Exium

 

 

8,743

 

 

—

 

8,743

 As of December 31, 2025

 

$

45,022

 

$

—

$

45,022

 

As disclosed under “Segments” in Note 1, The Company and Summary of Significant Accounting Policies, the Company underwent segment realignments during fiscal 2025. The Company had three reportable segments: NETGEAR for Business, Home Networking, and Mobile, during the first three fiscal quarters of 2025, and returned to two reportable segments: Enterprise (formerly NETGEAR for Business) and Consumer (formerly Connected Home in the prior year), during the fourth fiscal quarter, with Consumer comprising the former Home Networking and Mobile businesses. These changes reflected modifications to internal reporting and external segment presentation and did not result in changes to the underlying businesses, expected cash flows, or the allocation of goodwill among reporting units. The Consumer business (formerly Connected Home) comprising Home Networking and Mobile, has had a zero goodwill balance since the first quarter of 2022; accordingly, the segment realignments did not affect goodwill. The segment realignment did not involve changes to the composition or carrying amount of reporting units’ net assets, plans to dispose of any reporting unit, or changes in strategy, and therefore did not result in a reorganization of reporting units or trigger a goodwill impairment assessment.

Each year on the first day of fourth fiscal quarter, the Company assesses its goodwill for potential impairment. This impairment testing is applied more frequently than once a year if the Company is aware of changed conditions or circumstances since the last impairment testing that might call into question whether the current balances are fairly recorded.

The Company completed its annual impairment test of goodwill as of the first day of the fourth fiscal quarter of 2025, or September 29, 2025. The Company identified the reporting units for the purpose of goodwill impairment testing as Enterprise and Consumer and performed a qualitative test for the Enterprise reporting unit as the Consumer reporting unit has had no goodwill since the first fiscal quarter of 2022. Based upon the results of the qualitative testing, the Company concluded that it was more-likely-than-not that the fair value of the Enterprise reporting unit was greater than its carrying value and therefore, no further quantitative impairment testing was required. No goodwill impairment was recognized for the Enterprise reporting unit in the years ended December 31, 2025, 2024 or 2023. Accumulated goodwill impairment charges as of December 31, 2025 was $44.4 million for the Consumer reporting unit and zero for the Enterprise reporting unit.

Other non-current assets

 

(In thousands)

 

 

December 31, 2025

 

 

December 31, 2024

Non-current deferred income taxes

 

$

2,386

 

$

2,332

Long-term investments

 

 

8,732

 

 

8,381

Restricted cash

 

 

2,102

 

 

2,107

Other

 

 

3,551

 

 

3,767

Total

 

$

16,771

 

$

16,587

Long-term investments

The Company’s long-term investments are primarily comprised of equity investments without readily determinable fair values and investments in limited partnership funds. The carrying value of the equity investments

without readily determinable fair values was $6.1 million as of December 31, 2025, 2024 and 2023, respectively. For such equity investments without readily determinable fair value still held at December 31, 2025, there were no cumulative downward adjustments for price changes or impairment, and the cumulative upward adjustments for price changes was $0.3 million. Investments in limited partnership funds amounted to $2.6 million as of December 31, 2025 and $2.3 million as of December 31, 2024 and 2023, respectively.

Other current accrued liabilities

 

(In thousands)

 

 

December 31, 2025

 

 

December 31, 2024

Current operating lease liabilities

 

$

9,933

 

$

10,837

Sales and marketing

 

 

61,144

 

 

59,129

Warranty obligations

 

 

5,928

 

 

5,192

Sales returns(1)

 

 

24,435

 

 

31,711

Freight and duty

 

 

4,518

 

 

4,979

Current deferred consideration(2)

 

 

8,355

 

 

—

Other

 

 

29,715

 

 

36,230

Total

 

$

144,028

 

$

148,078

_______________________

(1)
Inventory expected to be received from future sales returns amounted to $10.8 million and $15.1 million as of December 31, 2025 and 2024, respectively. Provisions to write down expected returned inventory to net realizable value amounted to $7.9 million and $9.0 million as of December 31, 2025 and 2024, respectively.
(2)
It represented current deferred consideration related to the acquisition of a perpetual soft license as of December 31, 2025. Refer to “Intangible Assets, net” in Note 4, Balance Sheet Components above, for additional information.

Other non-current accrued liabilities

(In thousands)

 

 

December 31, 2025

 

 

December 31, 2024

Non-current deferred consideration(1)

 

$

34,921

 

$

—

Non-current deferred revenue

 

 

4,206

 

 

5,101

Other

 

 

908

 

 

6,601

Total

 

$

40,035

 

$

11,702

_______________________

(1)
It represented non-current deferred consideration related to the acquisition of a perpetual soft license as of December 31, 2025. Refer to “Intangible Assets, net” in Note 4, Balance Sheet Components above, for additional information.
v3.25.4
Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

Note 5. Derivative Financial Instruments

The Company’s subsidiaries have material future cash flows related to revenue and expenses denominated in currencies other than the U.S. dollar, the Company’s functional currency worldwide. The Company executes currency forward contracts that typically mature in less than 6 months to mitigate its currency risk, in currencies including Australian dollars, British pounds, euros, Canadian dollar and Japanese Yen. The Company does not enter into derivatives transactions for trading or speculative purposes.

The Company’s foreign currency forward contracts do not contain any credit-risk-related contingent features. The Company enters into derivative contracts with high-quality financial institutions and limits the amount of credit exposure to any individual counter-party. The Company continuously evaluates the credit quality of its counter-party financial institutions and does not consider non-performance a material risk.

The Company may choose not to hedge certain foreign exchange exposures for a variety of reasons, including, but not limited to, materiality, accounting considerations or the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign exchange rates. The Company’s accounting policies for these instruments are based on whether the instruments are designated as hedge or non-hedge instruments in accordance with the authoritative guidance for derivatives and hedging. The Company records all derivatives on the balance sheets at fair value. Cash flow hedge gains and losses are recorded in the other comprehensive income (loss) (“OCI”) until the hedged item is recognized in earnings. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in Other income, net in the consolidated statements of operations.

 

Cash flow hedges

To help manage the exposure of operating margins to fluctuations in foreign currency exchange rates, the Company hedges a portion of its anticipated foreign currency revenue, costs of revenue and certain operating expenses. These hedges are designated at the inception of the hedge relationship as cash flow hedges under the authoritative guidance for derivatives and hedging. Effectiveness of the hedge relationships are tested at least quarterly both prospectively and retrospectively using regression analysis to ensure that the hedge relationship has been effective and is likely to remain effective in the future. The Company typically executes ten forward contracts per quarter with maturities under six months and with an average USD notional amount of approximately $4.6 million that are designated as cash flow hedges.

The Company expects to reclassify to earnings all of the amounts recorded in OCI associated with its cash flow hedges over the next twelve months. OCI associated with cash flow hedges of foreign currency revenue, cost of revenue and operating expenses are recognized in the same period and in the same line item in the statement of operations as hedged item. The Company did not recognize any material net gains or losses related to anticipated transactions that failed to occur during the years ended December 31, 2025, 2024 and 2023.

 

Non-designated hedges

The Company enters into non-designated hedges under the authoritative guidance for derivatives and hedging to manage the exposure of non-functional currency monetary assets and liabilities not already hedged by de-designated cash flow hedges. The non-designated hedges are generally expected to offset the changes in value of its net non-functional currency asset and liability position resulting from foreign exchange rate fluctuations. The Company adjusts its non-designated hedges monthly and typically executes about eleven non-designated forwards per quarter with maturities less than three months and an average USD notional amount of approximately $3.0 million.

 

Fair Value of Derivative Instruments

The fair values of the Company’s derivative instruments and the line items on the consolidated balance sheets to which they were recorded were summarized as follows:

 

 

 

Balance Sheet

 

 

 

 

 

 

 

Balance Sheet

 

 

 

 

 

 

(In thousands)

 

Location

 

 

December 31,
2025

 

 

December 31,
2024

 

Location

 

 

December 31,
2025

 

 

December 31,
2024

Derivatives not designated as hedging instruments

 

Prepaid expenses and other current assets

 

$

315

 

$

979

 

Other accrued liabilities

 

$

699

 

$

254

Derivatives designated as hedging instruments

 

Prepaid expenses and other current assets

 

 

—

 

 

74

 

Other accrued liabilities

 

 

30

 

 

19

Total

 

 

 

$

315

 

$

1,053

 

 

 

$

729

 

$

273

 

Refer to Note 13, Fair Value Measurements, in Notes to Consolidated Financial Statements for detailed disclosures regarding fair value measurements. Refer to Note 10, Stockholders' Equity, for details on the accumulated other comprehensive income (loss) activity related to derivatives and refer to Note 12, Segment Information, for details on gain/(loss), net pertaining to derivatives not designated as hedging instruments that were recognized in Other income, net.
v3.25.4
Net Income (Loss) Per Share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share

Note 6. Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include common shares issuable upon exercise of stock options, vesting of restricted stock units and performance shares, and issuances of shares under the Employee Stock Purchase Plan (the “ESPP”), which are reflected in diluted net income per share by application of the treasury stock method. Potentially dilutive common shares are excluded from the computation of diluted net income per share when their effect is anti-dilutive.

Net income (loss) per share consisted of the following:

 

 

 

 

Year Ended December 31,

(In thousands, except per share data)

 

 

2025

 

 

2024

 

 

2023

Numerator:

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(17,923)

 

$

12,363

 

$

(104,767)

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average common shares – basic

 

 

28,607

 

 

28,905

 

 

29,355

Potentially dilutive common share equivalent

 

 

—

 

 

778

 

 

—

Weighted average common shares – dilutive

 

 

28,607

 

 

29,683

 

 

29,355

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share

 

$

(0.63)

 

$

0.43

 

$

(3.57)

Diluted net income (loss) per share

 

$

(0.63)

 

$

0.42

 

$

(3.57)

 

 

 

 

 

 

 

 

 

Anti-dilutive employee stock-based awards, excluded

 

 

378

 

 

1,127

 

 

2,362
v3.25.4
Other Income, Net
 12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Abstract]  
Other Income, Net

Note 7. Other Income, Net

Other income, net consisted of the following:

 

 

 

 

Year Ended December 31,

(In thousands)

 

 

2025

 

 

2024

 

 

2023

Interest income

 

 $

11,586

 

 $

12,152

 

 $

6,842

Foreign currency transaction gain (loss), net

 

 

3,135

 

 

(3,434)

 

 

(6)

Foreign currency contract gain (loss), net

 

 

(2,228)

 

 

3,292

 

 

267

Gain (loss) on investments and other

 

 

4,883

 

 

662

 

 

1,036

Gain on litigation settlement

 

 

—

 

 

—

 

 

6,000

Total

 

 $

17,376

 

 $

12,672

 

 $

14,139
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8. Income Taxes

Income before income taxes and the provision for income taxes consisted of the following:

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

(In thousands)

 

 

 

United States

 

$

(34,560)

 

$

10,634

 

$

(33,944)

International

 

 

17,784

 

 

14,254

 

 

14,808

Total

 

$

(16,776)

 

$

24,888

 

$

(19,136)

 

 

 

 

 

Year Ended December 31,

(In thousands)

 

 

2025

 

 

2024

 

 

2023

Current:

 

 

 

 

 

 

 

 

 

U.S. Federal

 

$

(510)

 

$

7,641

 

$

358

State

 

 

(1,079)

 

 

1,868

 

 

599

Foreign

 

 

2,787

 

 

2,286

 

 

2,423

 

 

1,198

 

 

11,795

 

 

3,380

Deferred:

 

 

 

 

 

 

 

 

 

U.S. Federal

 

 

—

 

 

—

 

 

65,880

State

 

 

(102)

 

 

—

 

 

15,629

Foreign

 

 

51

 

 

730

 

 

742

 

 

(51)

 

 

730

 

 

82,251

Total

 

$

1,147

 

$

12,525

 

$

85,631

Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 1. The Company and Summary of Significant Accounting Policies, the Company discloses cash paid for income taxes, net of refunds, for the year ended December 31, 2025, as follows:

 

 

 

Year Ended December 31,

(In thousands)

 

 

2025

Federal taxes paid

 

$

9,044

State and local taxes paid

 

 

1,141

Foreign Taxes paid

 

 

3,587

Total income taxes paid

 

$

13,772

 

 

Net deferred tax assets consisted of the following:

 

 

 

 

Year Ended December 31,

(In thousands)

 

 

2025

 

 

2024

Deferred Tax Assets:

 

 

 

 

 

 

Accruals and allowances

 

$

18,085

 

$

18,573

Net operating loss carryforwards

 

 

9,795

 

 

1,604

Stock-based compensation

 

 

1,633

 

 

1,416

Operating lease liability

 

 

10,092

 

 

5,146

Deferred revenue

 

 

2,068

 

 

1,889

Tax credit carryforwards

 

 

3,852

 

 

1,673

Acquired intangibles

 

 

12,463

 

 

14,814

Capitalized research and development

 

 

59,265

 

 

61,703

Depreciation and amortization

 

 

—

 

 

999

Other

 

 

4,606

 

 

4,161

Total deferred tax assets

 

 

121,859

 

 

111,978

Deferred Tax Liabilities:

 

 

 

 

 

 

Depreciation and amortization

 

 

(3,521)

 

 

—

Right of use asset

 

 

(6,521)

 

 

(4,412)

Other

 

 

(1,555)

 

 

(1,414)

Total deferred tax liabilities

 

 

(11,597)

 

 

(5,826)

 

 

 

 

 

 

Valuation Allowance(1)

 

 

(107,876)

 

 

(103,820)

Net deferred tax assets

 

$

2,386

 

$

2,332

 

(1)
Valuation allowance is presented gross. The valuation allowance net of the federal tax effect was $103.5 million and $99.6 million for the years ended December 31, 2025 and 2024, respectively.

 

Management’s judgment is required in determining the Company’s provision for income taxes, its deferred tax assets and any valuation allowance recorded against its deferred tax assets. As of December 31, 2025, a valuation allowance of $107.9 million was placed against deferred tax assets. As of December 31, 2024, a valuation allowance of $103.8 million was placed against deferred tax assets. Accordingly, the valuation allowance increased $4.1 million during 2025. In management’s judgment it is more likely than not that foreign deferred tax assets will be realized in the future as of December 31, 2025, and as such no valuation allowance has been recorded against these deferred tax assets.

As described in Note 1, The Company and Summary of Significant Accounting Policies, the Company elected to prospectively adopt ASU 2023-09. For the years ended December 31, 2024 and 2023, the effective tax rate differed from the applicable U.S. federal statutory income tax rate based on the guidance in effect prior to the adoption of ASU 2023-09, as follows:

 

 

Year Ended December 31,

 

 

2024

 

2023

Tax at federal statutory rate

 

21.0%

 

21.0 %

State, net of federal benefit

 

6.0 %

 

(3.1)%

Impact of international operations

 

(2.6)%

 

8.3 %

Stock-based compensation

 

1.0 %

 

(2.3)%

Tax credits

 

(2.5)%

 

5.8 %

Valuation allowance

 

26.7 %

 

(474.3)%

Recognition of previously unrecognized tax benefits

 

(0.8)%

 

(0.3)%

Non-deductible license fees

 

1.5 %

 

(1.7)%

Others

 

0.0 %

 

(0.9)%

Provision for income taxes

 

50.3 %

 

(447.5%)

 

For the year ended December 31, 2025, the effective tax rate differed from the applicable U.S. statutory federal income tax rate as follows:

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

 

Amount
(In thousands)

 

Percent

Tax at federal statutory rate

 

$

(3,523)

 

21.0%

1. State and local income tax, net of federal (national) income tax effect 1

 

 

(450)

 

2.7%

2. Foreign tax effects

 

 

 

 

 

India

 

 

 

 

 

   Statutory tax rate difference between Ireland and United States

 

 

180

 

(1.1)%

Germany

 

 

 

 

 

   Statutory tax rate difference between Ireland and United States

 

 

(224)

 

1.3%

   UTP - IC commission

 

 

40

 

(0.2)%

Romania

 

 

 

 

 

   Withholdings

 

 

351

 

(2.1)%

Other Foreign

 

 

(529)

 

3.2%

3. Effect of changes in tax laws or rates enacted in the current period

 

 

—

 

—%

4. Effect of cross-border tax laws

 

 

 

 

 

GILTI

 

 

1,704

 

(10.2)%

FDII

 

 

166

 

(1.0)%

BEAT

 

 

—

 

—%

5. Tax credits

 

 

 

 

 

R&D credit

 

 

(1,152)

 

6.9%

6. Changes in valuation allowances

 

 

2,102

 

(12.5)%

7. Nontaxable or nondeductible items

 

 

 

 

 

Stock based compensation

 

 

2,975

 

(17.7)%

Non-deductible license fees

 

 

430

 

(2.6)%

Section 162 (m)

 

 

223

 

(1.3)%

Other

 

 

517

 

(3.1)%

8. Changes in unrecognized tax benefits.

 

 

(1,660)

 

9.9%

9. Other adjustments

 

 

(3)

 

(0.0)%

Provision for (benefit from) income taxes

 

$

1,147

 

(6.8)%

 

(1)
In 2025, state taxes in Philadelphia, Texas, North Carolina, California and Indiana accounted for the majority (over 50%) of the tax effect in this category

Refer to Note 10, Stockholders Equity, for income tax impacts resulting from changes in fair value of available-for-sale securities and foreign currency hedging.

As of December 31, 2025, the Company has approximately $34.5 million of federal net operating loss carryforwards, $15.2 million of California net operating loss carryforwards, $30.9 million of other state net operating loss carryforwards as well as $0.9 million of Federal tax credits carryforwards and $2.9 million of California tax credits carryforwards. All the losses and credit carryforwards are subject to annual usage limitations under Internal Revenue Code Section 382. The federal net operating losses expire in different years beginning in fiscal year 2035. The California net operating losses expire beginning in 2044. The other state net operating losses have various expiration dates as early as the 2029 year, with the carryforward period depending on the state. The Federal tax credit carryforwards expire in 2045. The California tax credit carryforwards have no expiration date.

The Company files income tax returns in the U.S. federal jurisdiction and various state, local, and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state, or local income tax examinations for years prior to 2020. The Company is no longer subject to foreign income tax examinations before 2004. The Italian Tax Authority (ITA) has audited the Company’s 2004 through 2012 tax years. The Company was in litigation with the ITA with respect to these years and had appellate hearings on all years at the Italian Supreme Court in March 2024. The Company successfully defended its positions for the 2007 through 2012 tax years. In Q4 2025, the Italian Tax Court upheld the Company’s appeal with respect to the 2004 through 2006 tax years and annulled

the related ITA tax assessments. The ITA retains the right to appeal this decision to the Italian Supreme Court and, accordingly, the 2004 through 2006 tax years remain subject to ongoing litigation. The Company has limited audit activity in various other states and foreign jurisdictions. Due to the uncertain nature of ongoing tax audits, the Company has recorded its liability for uncertain tax positions as part of its long-term liability as payments cannot be anticipated over the next 12 months. The existing tax positions of the Company continue to generate an increase in the liability for uncertain tax positions. The liability for uncertain tax positions may be reduced for liabilities that are settled with taxing authorities or on which the statute of limitations could expire without assessment from tax authorities. The possible reduction in liabilities for uncertain tax positions resulting from the expiration of statutes of limitation in multiple jurisdictions in the next 12 months is approximately $1.4 million, excluding the interest, penalties and the effect of any related deferred tax assets or liabilities.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (“UTB”) is as follows:

(In thousands)

 

 

Federal, State,
and Foreign Tax

Balance as of December 31, 2022

 

$

7,934

Additions based on tax positions related to the current year

 

 

426

Additions for tax positions of prior years

 

 

533

Reductions due to lapse of applicable statutes

 

 

(507)

Adjustments due to foreign exchange rate movement

 

 

232

Balance as of December 31, 2023

 

 

8,618

Additions based on tax positions related to the current year

 

 

372

Additions for tax positions of prior years

 

 

10

Settlements

 

 

(712)

Reductions for tax positions of prior years

 

 

(31)

Reductions due to lapse of applicable statutes

 

 

(799)

Adjustments due to foreign exchange rate movement

 

 

72

Balance as of December 31, 2024

 

 

7,530

Additions based on tax positions related to the current year

 

 

604

Additions for tax positions of prior years

 

 

239

Reductions due to lapse of applicable statutes

 

 

(1,479)

Adjustments due to foreign exchange rate movement

 

 

403

Balance as of December 31, 2025

 

$

7,297

 

The total amount of net UTB that, if recognized would affect the effective tax rate as of December 31, 2025 is $4.4 million. The ending net UTB results from adjusting the gross balance at December 31, 2025 for items such as U.S. federal and state deferred tax, interest, and deductible taxes. The net UTB is included as a component of non-current income taxes payable within the consolidated balance sheets.

As of December 31, 2025 and 2024, accrued interest and penalties on a gross basis were $2.2 million, and $2.1 million, respectively. Included in accrued interest are amounts related to tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.

The Company has not provided deferred taxes on earnings of $10.1 million of undistributed earnings of foreign subsidiaries that are indefinitely reinvested outside of the U.S. The Company estimates that if these earnings were repatriated to the U.S., it would result in approximately $2.1 million in associated tax without consideration of foreign tax credits. Determination of foreign tax credit limitations depends on several factors which cannot be estimated.
v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 9. Commitments and Contingencies

 

Purchase Obligations

The Company has entered into various inventory-related purchase agreements with suppliers. Generally, under these agreements, 50% of orders are cancelable by giving notice 46 to 60 days prior to the expected shipment date and 25% of orders are cancelable by giving notice 31 to 45 days prior to the expected shipment date. As of December 31, 2025, the Company had approximately $55.3 million, as compared to $57.4 million as of December 31, 2024, in short-term non-cancelable purchase commitments with suppliers or where the suppliers had procured unique materials and components upon receipts of the Company’s purchase orders. Due to an elongation of the time from order placement to production that occurred several years ago, the Company issued purchase orders to supply chain partners beyond contractual termination periods. As of December 31, 2025, $200.5 million of purchase orders beyond contractual termination periods remained outstanding. Consequently, the Company may incur expenses for materials and components, such as chipsets purchased by the supplier to fulfill the purchase order if the purchase order is cancelled. Expenses incurred in respect of cancelled purchase orders have historically not been significant relative to the original order value. For those orders not governed by master purchase agreements, the commitments are governed by the commercial terms on the Company’s purchase orders subject to acknowledgment from its suppliers. The Company establishes a loss liability for all products it does not expect to sell or orders it anticipates canceling for which it has committed purchases from suppliers. Such loss liability is included in Other accrued liabilities on the Company’s consolidated balance sheets. Losses incurred in relation to purchase commitments, including unique materials and components, amounted to $0.7 million, $4.6 million and $3.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Non-Trade Commitments

As of December 31, 2025, the Company’s non-cancellable commitments pertaining to non-trade activities were as follows (in thousands):

 

2026

 

$

11,910

2027

 

 

14,111

2028

 

 

14,216

2029

 

 

3,030

2030

 

 

—

Total

 

$

43,267

The amounts disclosed in the table above represented undiscounted future cash payment obligations under non-cancellable contractual arrangements. Certain of these obligations, including deferred payments related to a software license acquisition, were reflected on the Company’s consolidated balance sheets at their present value as of December 31, 2025. Refer to “Intangible Assets, net” and "Other non-current accrued liabilities" in Note 4, Balance Sheet Components, for additional disclosures regarding the software license acquisition.

Leases

Refer to Note 15, Leases, for detailed disclosures regarding non-cancellable commitments pertaining to leases.

Warranty Obligations

Changes in the Company’s warranty obligations, which is included in Other accrued liabilities on the consolidated balance sheets, were as follows:

 

 

 

 

Year Ended December 31,

(In thousands)

 

 

2025

 

 

2024

 

 

2023

Balance as of beginning of the period

 

$

5,192

 

$

5,738

 

$

6,320

Provision for warranty liability made

 

 

5,523

 

 

3,925

 

 

5,105

Settlements made

 

 

(4,787)

 

 

(4,471)

 

 

(5,687)

Balance as of the end of the period

 

$

5,928

 

$

5,192

 

$

5,738

 

Guarantees and Indemnifications

The Company, as permitted under Delaware law and in accordance with its Bylaws, indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum amount of potential future indemnification is unlimited; however, the Company has a Director and Officer Insurance Policy that enables it to recover a portion of any future amounts paid. As a result of its insurance policy coverage, the Company believes the fair value of each indemnification agreement is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of December 31, 2025.

In its sales agreements, the Company typically agrees to indemnify its direct customers, distributors and resellers (the “Indemnified Parties”) for any expenses or liability resulting from claimed infringements by the Company’s products of patents, trademarks or copyrights of third parties that are asserted against the Indemnified Parties, subject to customary carve outs. The terms of these indemnification agreements are generally perpetual after execution of the agreement. The maximum amount of potential future indemnification is generally unlimited. From time to time, the Company receives requests for indemnity and may choose to assume the defense of such litigation asserted against the Indemnified Parties. The Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of December 31, 2025.

Litigation and Other Legal Matters

From time to time, the Company is involved in disputes, litigation, and other legal actions. In all cases, at each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. In such cases, the Company accrues for the amount, or if a range, the Company accrues the low end of the range, only if there is not a better estimate than any other amount within the range, as a component of legal expense within litigation reserves, net. The Company monitors developments in these legal matters that could affect the estimate the Company had previously accrued. In relation to such matters, the Company currently believes that there are no existing claims or proceedings that are likely to have a material adverse effect on its financial position within the next twelve months, or the outcome of these matters is currently not determinable. There are many uncertainties associated with any litigation, and these actions or other third-party claims against the Company may cause the Company to incur costly litigation and/or substantial settlement charges. In addition, the resolution of any intellectual property litigation may require the Company to make royalty payments, which could have an adverse effect in future periods. If any of those events were to occur, the Company’s business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from the Company’s estimates, which could result in the need to adjust the liability and record additional expenses.

The Company does not believe that it will incur a material loss for any of its pending litigation matters at this time, and consequently has not established any material loss provisions.
v3.25.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2025
Stockholders' Equity Note [Abstract]  
Stockholders' Equity

Note 10. Stockholders’ Equity

Stock Repurchases

From time to time, the Company’s Board of Directors has authorized programs under which the Company may repurchase shares of its common stock, depending on market conditions, in the open market or through privately negotiated transactions. Under the authorizations, the timing and actual number of shares subject to repurchase are at the discretion of management and are contingent on a number of factors, such as levels of cash generation from operations, cash requirements for acquisitions and the price of the Company’s common stock. As of December 31, 2025, 1.5 million shares remained authorized for repurchase under the repurchase program. The Company repurchased and retired, reported based on trade date, approximately 1.9 million and 2.1 million shares of common stock, at a cost of approximately $50.0 million and $33.6 million during the years ended December 31, 2025 and 2024, respectively. The Company did not repurchase any shares during the year ended December 31, 2023. Under the Inflation Reduction Act signed into law in 2022, the excise tax on stock repurchases was approximately $0.1 million and $0.2 million for the years ended December 31, 2025 and 2024, respectively.

The Company’s policy related to repurchases of its common stock is to charge the excess of cost over par value to retained earnings. All repurchases were made in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended.

Restricted Stock Unit Withholdings

The Company withheld and reported, based on trade date, approximately 515,000, 226,000 and 198,000 shares of common stock at a cost of approximately $13.8 million, $3.4 million and $2.8 million, to administratively facilitate the withholding and subsequent remittance of personal income and payroll taxes for individuals receiving RSUs during the years ended December 31, 2025, 2024 and 2023, respectively.

Accumulated Other Comprehensive Income (Loss)

The following table sets forth the changes in accumulated other comprehensive income (loss) (“AOCI”) by component:

 

(In thousands)

 

 

Unrealized gains (losses)
on available
-for-sale
investments

 

 

Unrealized
gains (losses)
on derivatives

 

 

Estimated tax
benefit (provision)

 

 

Total

Balance as of December 31, 2022

 

$

(322)

 

$

(338)

 

$

125

 

$

(535)

Other comprehensive income (loss) before reclassifications

 

 

448

 

 

2,337

 

 

(540)

 

 

2,245

Less: Amount reclassified from accumulated other comprehensive income (loss)

 

 

—

 

 

1,992

 

 

(418)

 

 

1,574

Net current period other comprehensive income (loss)

 

 

448

 

 

345

 

 

(122)

 

 

671

Balance as of December 31, 2023

 

 

126

 

 

7

 

 

3

 

 

136

Other comprehensive income (loss) before reclassifications

 

 

43

 

 

(733)

 

 

159

 

 

(531)

Less: Amount reclassified from accumulated other comprehensive income (loss)

 

 

—

 

 

(805)

 

 

169

 

 

(636)

Net current period other comprehensive income (loss)

 

 

43

 

 

72

 

 

(10)

 

 

105

Balance as of December 31, 2024

 

 

169

 

 

79

 

 

(7)

 

 

241

Other comprehensive income (loss) before reclassifications

 

 

(9)

 

 

(960)

 

 

197

 

 

(772)

Less: Amount reclassified from accumulated other comprehensive income (loss)

 

 

—

 

 

(920)

 

 

193

 

 

(727)

Net current period other comprehensive income (loss)

 

 

(9)

 

 

(40)

 

 

4

 

 

(45)

Balance as of December 31, 2025

 

$

160

 

$

39

 

$

(3)

 

$

196

 

The following table provides details about significant amounts reclassified out of each component of AOCI:

 

 

 

 

Year Ended December 31,

(In thousands)

 

 

2025

 

 

2024

 

 

2023

Amount Reclassified from AOCI

 

 

 

 

 

 

 

 

 

Gains (losses) on cash flow hedge:

Foreign currency forward contracts

 

 

 

 

 

 

 

 

 

Affected line item in the statement of operations

 

 

 

 

 

 

 

 

 

Net revenue

 

$

(1,181)

 

$

(897)

 

$

2,337

Cost of revenue

 

 

2

 

 

—

 

 

(4)

Research and development

 

 

48

 

 

13

 

 

(33)

Sales and marketing

 

 

164

 

 

58

 

 

(246)

General and administrative

 

 

47

 

 

21

 

 

(62)

Total before tax

 

 

(920)

 

 

(805)

 

 

1,992

Tax impact

 

 

193

 

 

169

 

 

(418)

Total, net of tax

 

$

(727)

 

$

(636)

 

$

1,574
v3.25.4
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2025
Employee Benefit and Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Employee Benefit Plans

Note 11. Employee Benefit Plans

2016 Equity Incentive Plan

The Company granted options, time-based RSUs and performance-based RSUs under the 2016 Incentive Plan (the “2016 Plan”), under which awards were granted to employees. Vesting periods under this plan were generally four years for options, three years for performance-based RSUs, and three or four years for time-based RSUs. As disclosed below, in May 2025, the Company adopted the 2025 Equity Incentive Plan (the "2025 Plan"), which superseded the 2016 Plan with respect to new equity award grants. No additional awards will be granted under the 2016 Plan following the effective date of the 2025 Plan. However, (i) any shares that remained available for grant under the 2016 Plan immediately prior to the 2025 Plan’s effective date and (ii) any shares subject to awards granted under the 2016 Plan that are subsequently forfeited, expire, or are repurchased by the Company, will become available for issuance under the 2025 Plan. All outstanding awards previously granted under the 2016 Plan remain outstanding and continue to be governed by the applicable terms and conditions of that plan.

2024 Inducement Equity Incentive Plan

In February 2024, the Company adopted the 2024 Inducement Equity Incentive Plan (the “2024 Inducement Plan”), which was approved by the Company’s Board of Directors on February 9, 2024. The 2024 Inducement Plan provides for the granting of stock options, stock appreciation rights, restricted stock, RSUs, performance shares and performance units to eligible individuals who are entering into employment with the Company. The original maximum aggregate number of shares that could be issued under the 2024 Inducement Plan was 2.0 million shares. In May 2025, the Company’s Board of Directors approved an amendment to the 2024 Inducement Plan which increased the number of shares of the Company’s common stock that may be issued under the 2024 Inducement Plan by an additional 0.6 million shares. As of December 31, 2025, approximately 0.3 million shares were reserved for future grants under the 2024 Inducement Plan.

2025 Equity Incentive Plan

In April 2025, the Company's Board of Directors adopted the 2025 Equity Incentive Plan (the "2025 Plan") which was approved by the Company's stockholders at the 2025 Annual Meeting of Stockholders on May 29, 2025. The 2025 Plan provides for the granting of stock options, restricted stock, RSUs, stock appreciation rights, performance units and performance shares to eligible directors, employees and consultants of the Company. The maximum aggregate number of shares that may be issued under the 2025 Plan is 750,000 shares, plus (i) any shares that were available for grant under the 2016 Plan as of immediately prior to the date the 2025 Plan becomes effective, plus (ii) any shares granted under the 2016 Plan that expire, are forfeited to or repurchased by the Company. As of December 31, 2025, approximately 2.3 million shares were reserved and available for future grants under the 2025 Plan.

Time-based RSUs granted generally vest over three years with the first tranche at the end of twelve months from the vest start date and the remaining vesting quarterly over the remaining two years. RSUs do not have an expiration date. Performance-based RSUs granted generally vest at the end of a three-year period if performance conditions are met.

Any shares that are tendered by a participant or retained by the Company as full or partial payment for the purchase of an award or to satisfy tax withholding obligations in connection with an award granted under the 2025 Plan, or under the 2016 Plan after the 2025 Plan became effective, shall again be made available for issuance under the 2025 Plan.

Employee Stock Purchase Plan

The Company sponsors an Employee Stock Purchase Plan (the “ESPP”), pursuant to which eligible employees may contribute up to 10% of compensation, subject to certain income limits, to purchase shares of the Company’s common stock. The terms of the plan include a look-back feature that enables employees to purchase stock semi-annually at a price equal to 85% of the lesser of the fair market value at the beginning of the offering period and the purchase date. The duration of each offering period is generally six-months. In April 2022, the Company approved an amendment to the plan to increase the number of shares of common stock authorized for sale under the plan by 1.0 million shares to a total of 3.0 million shares. In May 2025, the stockholders of the Company approved another amendment to the plan to increase the number of shares of common stock authorized for sale under the ESPP by 1.5

million shares. For the years ended December 31, 2025, 2024, and 2023, the Company recognized ESPP compensation expense of $1.5 million, $1.2 million and $1.1 million, respectively. Approximately 237,000 shares of common stock were purchased at an average exercise price of $15.37 in the year ended December 31, 2025. As of December 31, 2025, approximately 1.7 million shares were reserved for future issuance under the ESPP.

Option Activity

Stock option activity was as follows:

 

(In thousands, except per share amounts)

 

Number of
Shares

 

 

Weighted Average Exercise Price Per Share

 

Weighted
Average
Remaining
Contractual
Term

Outstanding as of December 31, 2024

 

475

 

$

32.60

 

 

Exercised

 

(198)

 

$

26.56

 

 

Expired

 

(176)

 

$

39.07

 

 

Outstanding as of December 31, 2025

 

101

 

$

33.24

 

2.95

 

 

 

 

 

 

 

As of December 31, 2025

 

 

 

 

 

 

 

Vested and expected to vest

 

101

 

$

33.24

 

2.95

Exercisable Options

 

101

 

$

33.24

 

2.95

 

The aggregate intrinsic values, which represented the total pre-tax intrinsic values (the difference between the Company’s closing stock price on the last trading day of 2025, or December 31, 2025, and the exercise price, multiplied by the number of shares underlying the in-the-money options) that would have been received by the option holders had all option holders exercised their options, were zero as of December 31, 2025. This amount changes based on the fair market value of the Company’s stock. Total intrinsic value of options exercised for the years ended December 31, 2024 was $0.4 million. There was no option exercised for the year ended 2023.

There were no options vested during the year ended December 31, 2025 or 2024. The total fair value of options vested during the years ended December 31, 2023 was $0.7 million.

The following table summarizes significant ranges of outstanding and exercisable stock options as of December 31, 2025:

 

 

 

Options Outstanding

 

Options Exercisable

Range of Exercise Prices

 

Shares
Outstanding

 

Weighted-
Average
Remaining
Contractual
Life

 

 

Weighted-
Average
Exercise
Price Per
Share

 

Shares
Exercisable

 

 

Weighted-
Average
Exercise
Price Per
Share

 

 

(In thousands)

 

(In years)

 

 

(In dollars)

 

(In thousands)

 

 

(In dollars)

 $26.61 - $26.61

 

51

 

3.55

 

$

26.61

 

51

 

$

26.61

 $38.32 - $38.32

 

25

 

2.59

 

$

38.32

 

25

 

$

38.32

 $41.67 - $41.67

 

25

 

2.07

 

$

41.67

 

25

 

$

41.67

 $26.61 - $41.67

 

101

 

2.95

 

$

33.24

 

101

 

$

33.24

 

Time-Based RSU Activity

Time-based RSU activity was as follows:

 

(In thousands, except per share amounts)

 

Number
of Shares

 

 

Weighted Average Grant Date Fair Value Per Share

Outstanding as of December 31, 2024

 

2,550

 

$

17.64

Granted

 

1,124

 

$

28.12

Vested

 

(1,138)

 

$

18.49

Cancelled

 

(242)

 

$

18.40

Outstanding as of December 31, 2025

 

2,294

 

$

22.27

 

The total fair value of time-based RSUs vested during the years ended December 31, 2025, 2024 and 2023 was $30.3 million, $11.0 million and $9.2 million, respectively. The grant date fair value of time-based RSUs vested during the years ended December 31, 2025, 2024 and 2023 was $21.0 million, $17.4 million and $17.8 million, respectively.

Performance-Based RSU Activity

Since 2020, the Company’s executives have been granted performance-based restricted stock units (“PSUs”) under the 2016 Plan with vesting occurring at the end of a three-year period, contingent upon the achievement of specified performance conditions. In February 2024, the Company granted PSUs under the 2024 Inducement Plan to its newly-hired Chief Executive Officer with 1/3 of the target PSUs being allocated to each tranche and vesting occurring at the end of each anniversary of the vesting commencement date over a three-year period. In addition, in 2024 and 2025, the Company granted PSUs under the 2016 Plan, 2024 Inducement Plan and 2025 Plan to its newly-hired employees or executives with vesting generally occurring at the end of a three-year period if performance conditions are met. The number of PSUs earned and eligible to vest are determined based on achievement of the pre-determined performance or market conditions and the recipients’ continued service with the Company. The number of PSUs to vest could range from 0% to up to 200% of the target shares granted. For PSUs with a performance condition, at the end of each reporting period, the Company evaluates the probability of achieving the performance conditions and records the related stock-based compensation expense based on performance to date over the service period. The stock-based compensation expense relating to PSUs with a market condition is recognized ratably from the service inception date to the vesting date for each tranche.

Performance-based RSU activity was as follows:

(In thousands, except per share amounts)

 

Number
of Shares

 

 

Weighted Average Grant Date Fair Value Per Share

Outstanding as of December 31, 2022

 

430

 

$

29.38

Granted

 

145

 

$

14.44

Vested

 

—

 

$

—

Cancelled

 

(158)

 

$

27.85

Outstanding as of December 31, 2023

 

417

 

$

24.76

Granted

 

630

 

$

21.00

Vested

 

—

 

$

—

Cancelled

 

(392)

 

$

25.12

Outstanding as of December 31, 2024

 

655

 

$

20.93

Granted

 

434

 

$

44.59

Vested

 

(250)

 

$

20.85

Cancelled

 

(34)

 

$

22.13

Outstanding as of December 31, 2025

 

805

 

$

33.64

 

The total fair value and the grant date fair value performance-based RSUs vested during the year ended December 31, 2025, was $6.8 million and $3.9 million, respectively.

Valuation and Expense Information

The Company measures stock-based compensation at the grant date based on the estimated fair value of the award. Estimated compensation cost relating to time-based RSUs and PSUs with a performance condition is based on the closing fair market value of the Company’s common stock on the date of grant. The grant date fair value for PSUs with a market condition is determined using the Monte Carlo valuation method. The fair value of options granted and the purchase rights granted under the ESPP is estimated on the date of grant using a Black-Scholes-Merton option valuation model that uses the assumptions noted in the following table. The estimated expected term of options granted is derived from historical data on employee exercise and post-vesting employment termination behavior. The risk-free interest rate of options granted and the purchase rights granted under the ESPP is based on the implied yield currently available on U.S. Treasury securities with a remaining term commensurate with the estimated expected term. Expected volatility of options granted under the 2016 Plan and the purchase rights granted under the ESPP is based on historical volatility over the most recent period commensurate with the estimated expected term. The Company has never declared or paid cash dividends on its capital stock and does not anticipate paying cash dividends in the foreseeable future.

No stock options were granted during the years ended December 31, 2025, 2024 and 2023. The following table sets forth the weighted-average assumptions used to estimate the fair value of purchase rights granted under the ESPP:

 

 

 

Year Ended December 31,

 

 

2025

 

2024

 

2023

 

 

 

Expected life (in years)

 

0.5

 

0.5

 

0.5

Risk-free interest rate

 

4.12%

 

5.01%

 

5.19%

Expected volatility

 

55.0%

 

48.1%

 

35.8%

Dividend yield

 

—

 

—

 

—

The following table sets forth the stock-based compensation expense resulting from stock options, time-based and performance-based RSUs and the ESPP included in the Company’s consolidated statements of operations:

 

 

 

 

Year Ended December 31,

(In thousands)

 

 

2025

 

 

2024

 

 

2023

Cost of revenue

 

$

1,988

 

$

1,613

 

$

1,405

Research and development

 

 

4,407

 

 

3,297

 

 

3,935

Sales and marketing

 

 

8,183

 

 

6,182

 

 

5,336

General and administrative

 

 

15,137

 

 

11,586

 

 

7,262

Total

 

$

29,715

 

$

22,678

 

$

17,938

Total stock-based compensation cost capitalized in inventory was less than $0.8 million as of each of the years ended December 31, 2025, 2024 and 2023, respectively.

As of December 31, 2025, $58.9 million of unrecognized compensation cost related to unvested RSUs is expected to be recognized over a weighted-average period of 1.8 years. If there are any modifications or cancellations of the underlying unvested awards, the Company may be required to accelerate, increase or cancel all or a portion of the remaining unearned stock-based compensation expense.
v3.25.4
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information

Note 12. Segment Information

Operating segments are components of an enterprise about which separate financial information is available and is evaluated quarterly by management, namely the Chief Operating Decision Maker (“CODM”) of an organization, in order to determine operating and resource allocation decisions. By this definition, the Company has identified its CEO as the CODM. As disclosed above, beginning on the first day of the fourth fiscal quarter of 2025, the Company operates and reports in two segments: Enterprise (formerly NETGEAR For Business) and Consumer, with Consumer comprising the former Home Networking and Mobile businesses, previously reported as Connected Home. Refer to “Segments” in Note 1, The Company and Summary of Significant Accounting Policies, for additional information

regarding the Company’s segment changes during 2025. These changes did not impact the Company’s consolidated financial statements or segment financial information for the year ended December 31, 2025, and prior-period segment information has been presented on a comparable basis.

The Company’s reportable segments are described as follows:

•
Enterprise: focuses on small and medium enterprises and provides solutions for audio and video over Ethernet for AV applications, enterprise networking solutions, including wireless local area network (“LAN”) and cloud-managed networking capabilities, software platforms for deployment and remote management, and security offerings, including firewall and SASE functionality, designed to address the networking, security, and manageability requirements of organizations seeking reliable and cost-effective connectivity solutions; and
•
Consumer: focuses on consumers and provides high-performance, dependable and easy-to-use WiFi internet networking solutions such as multi-band WiFi 7 mesh systems and routers, subscription services offering performance, security, privacy and support, and 4G/5G mobile products, including WiFi 7 and WiFi 6/6E-enabled portable mobile hotspots and mobile routers, designed to address the demand for reliable, high-speed connectivity at home and on the go.

The Company believes that this structure reflects its current operational and financial management, with Enterprise and Consumer operating as distinct business units with integrated product development and go-to-market capabilities. The leadership teams of each segment are responsible for sales, marketing, product management, engineering, and customer support activities tailored to their respective markets.

The results of the reportable segments are derived directly from the Company’s management reporting system. The results are based on the Company’s method of internal reporting and are not necessarily in conformity with accounting principles generally accepted in the United States. Management measures the performance of each segment based on several metrics, including contribution income (loss). Segment contribution income (loss) includes all product line segment revenue less the related cost of sales, research and development and sales and marketing costs. Contribution income (loss) is used, in part, to evaluate the performance of, and allocate resources to, each of the segments. Certain operating expenses are not allocated to segments because they are separately managed at the corporate level. These unallocated indirect costs include corporate costs, such as corporate research and development, corporate marketing expense and general and administrative costs, amortization of intangibles, acquisition related expenses, stock-based compensation expense, intangible assets impairment, restructuring and other charges, litigation reserves, net, and other income, net.

Financial information for each reportable segment and a reconciliation of total segment contribution income to income (loss) before income taxes is as follows:

 

 

 

Year Ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

(In thousands, except percentage data)

 

 

Enterprise

 

 

Consumer

 

 

Total

 

 

Enterprise

 

 

Consumer

 

 

Total

 

 

Enterprise

 

 

Consumer

 

 

Total

 

Net revenue

 

$

342,029

 

$

357,592

 

$

699,621

 

$

287,812

 

$

385,947

 

$

673,759

 

$

293,975

 

$

446,865

 

$

740,840

 

Cost of revenue

 

 

174,468

 

 

255,803

 

 

430,271

 

 

168,399

 

 

307,820

 

 

476,219

 

 

163,083

 

 

326,843

 

 

489,926

 

Gross profit

 

 

167,561

 

 

101,789

 

 

269,350

 

 

119,413

 

 

78,127

 

 

197,540

 

 

130,892

 

 

120,022

 

 

250,914

 

Gross margin

 

 

49.0%

 

 

28.5%

 

 

38.5%

 

 

41.5%

 

 

20.2%

 

 

29.3%

 

 

44.5%

 

 

26.9%

 

 

33.9%

 

Operating expenses

 

 

90,841

 

 

93,100

 

 

183,941

 

 

75,408

 

 

104,138

 

 

179,546

 

 

74,127

 

 

110,477

 

 

184,604

 

Contribution income (loss)

 

 

76,720

 

 

8,689

 

 

85,409

 

 

44,005

 

 

(26,011)

 

 

17,994

 

 

56,765

 

 

9,545

 

 

66,310

 

Contribution margin

 

 

22.4%

 

 

2.4%

 

 

12.2%

 

 

15.3%

 

 

(6.7)%

 

 

2.7%

 

 

19.3%

 

 

2.1%

 

 

9.0%

 

Corporate and unallocated costs

 

 

 

 

 

 

 

 

(79,465)

 

 

 

 

 

 

 

 

(67,633)

 

 

 

 

 

 

 

 

(76,179)

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

(1,174)

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

(257)

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

(29,715)

 

 

 

 

 

 

 

 

(22,678)

 

 

 

 

 

 

 

 

(17,938)

 

Intangible assets impairment

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

(1,071)

 

Acquisition related expenses

 

 

 

 

 

 

 

 

(1,234)

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

—

 

Restructuring and other charges

 

 

 

 

 

 

 

 

(7,764)

 

 

 

 

 

 

 

 

(4,479)

 

 

 

 

 

 

 

 

(3,962)

 

Litigation reserves, net

 

 

 

 

 

 

 

 

(209)

 

 

 

 

 

 

 

 

89,012

 

 

 

 

 

 

 

 

(178)

 

Other income, net (1)

 

 

 

 

 

 

 

 

17,376

 

 

 

 

 

 

 

 

12,672

 

 

 

 

 

 

 

 

14,139

 

Income (loss) before income taxes

 

 

 

 

 

 

 

$

(16,776)

 

 

 

 

 

 

 

$

24,888

 

 

 

 

 

 

 

$

(19,136)

 

_______________________

(1)
Refer to Note 7, Other Income, Net for detailed information.

The Company does not report total assets by segment for internal or external reporting purposes as the Company’s CODM does not evaluate operating segments, make strategic decisions, or allocate resources using discrete asset information.

Operations by Geographic Region

For reporting purposes, revenue is generally attributed to each geographic region based on the location of the customer. The following table shows net revenue by geography:

 

 

 

 

Year Ended December 31,

(In thousands)

 

 

2025

 

 

2024

 

 

2023

United States (U.S.)

 

$

461,866

 

$

443,818

 

$

489,968

Americas (excluding U.S.)

 

 

14,154

 

 

12,222

 

 

14,381

EMEA (1)

 

 

139,602

 

 

127,260

 

 

148,922

APAC (1)

 

 

83,999

 

 

90,459

 

 

87,569

Total net revenue

 

$

699,621

 

$

673,759

 

$

740,840

______________________

(1)
No individual country, other than disclosed above, represented more than 10% of the Company’s total net revenue in the periods presented.

 

Long-lived assets by Geographic Region

The following table represents the Company’s long-lived assets located in geographic areas, which consist of property and equipment, net and operating lease right-of-use assets:

 

(In thousands)

 

 

December 31, 2025

 

 

December 31, 2024

United States (U.S.)

 

$

42,836

 

$

19,057

Canada

 

 

4,584

 

 

5,573

Americas (excluding U.S. and Canada)

 

 

10

 

 

39

EMEA

 

 

2,345

 

 

3,127

Singapore

 

 

4,075

 

 

4,841

APAC (excluding Singapore) (1)

 

 

8,866

 

 

6,698

Total

 

$

62,716

 

$

39,335

_______________________

(1)
No individual country, other than disclosed above, represented more than 10% of the Company’s total long-lived assets in the periods presented.

 

Significant Customers

For the years ended December 31, 2025 and 2024, the Company had one customer in each year that individually accounted for 17% and 16% of net revenue, respectively. For the year ended December 31, 2023, the Company had two customers, that each individually accounted for 17% and 12% of net revenue, respectively. All of the customers were primarily within the Consumer segment.
v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 13. Fair Value Measurements

The Company determines the fair values of its financial instruments based on a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

The following tables summarize assets and liabilities measured at fair value on a recurring basis:

 

 

 

 

December 31, 2025

(In thousands)

 

 

Total

 

 

Quoted market
prices in active
markets
(Level 1)

 

 

Significant
other
observable
inputs
(Level 2)

Assets:

 

 

 

 

 

 

 

 

 

Cash equivalents: money-market funds

 

$

107,070

 

$

107,070

 

$

—

Available-for-sale investments: U.S. treasury securities(1)

 

 

110,210

 

 

—

 

 

110,210

Trading securities: mutual funds(1)

 

 

2,922

 

 

2,922

 

 

—

Foreign currency forward contracts(2)

 

 

315

 

 

—

 

 

315

Total assets measured at fair value

 

$

220,517

 

$

109,992

 

$

110,525

Liabilities:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts(3)

 

$

729

 

$

—

 

$

729

Total liabilities measured at fair value

 

$

729

 

$

—

 

$

729

 

 

 

 

 

 

December 31, 2024

(In thousands)

 

 

Total

 

 

Quoted market
prices in active
markets
(Level 1)

 

 

Significant
other
observable
inputs
(Level 2)

Assets:

 

 

 

 

 

 

 

 

 

Cash equivalents: money-market funds

 

$

111,043

 

$

111,043

 

$

—

Available-for-sale investments: U.S. treasury securities(1)

 

 

119,370

 

 

—

 

 

119,370

Trading securities: mutual funds(1)

 

 

2,876

 

 

2,876

 

 

—

Foreign currency forward contracts(2)

 

 

1,053

 

 

—

 

 

1,053

Total assets measured at fair value

 

$

234,342

 

$

113,919

 

$

120,423

Liabilities:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts(3)

 

$

273

 

$

—

 

$

273

Total liabilities measured at fair value

 

$

273

 

$

—

 

$

273

 

(1)
Included in Short-term investments on the Company’s consolidated balance sheets.
(2)
Included in Prepaid expenses and other current assets on the Company’s consolidated balance sheets.
(3)
Included in Other accrued liabilities on the Company’s consolidated balance sheets.

The Company’s investments in money-market funds and mutual funds are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company’s investments in U.S. treasury securities are classified within Level 2 of the fair value hierarchy because they are valued based on readily available pricing sources for comparable or identical instruments in less active markets. The Company’s foreign currency forward contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that consider the contract terms as well as currency rates and counterparty credit rates. The Company verifies the reasonableness of these pricing models using observable market data for related inputs into such models. The Company enters into foreign currency forward contracts with only those counterparties that have long-term credit ratings of A-/A3 or higher. The carrying value of non-financial assets and liabilities measured at fair value in the financial statements on a recurring basis, including accounts receivable and accounts payable, approximate fair value due to their short maturities.
v3.25.4
Restructuring and Other Charges
 12 Months Ended
Dec. 31, 2025
Restructuring Charges [Abstract]  
Restructuring and Other Charges

Note 14. Restructuring and Other Charges

The Company accounts for its restructuring plans under the authoritative guidance for exit or disposal activities. Accrued restructuring and other charges are classified within Accrued employee compensation and Other accrued liabilities on the consolidated balance sheets.

Restructuring and other charges recognized in fiscal years 2025, 2024 and 2023 were primarily for severance, and other costs in relation to the reorganization of the Company's business to aim at reducing costs, and reinvesting into the business to capitalize on its highest priority opportunities to drive revenue growth and improve profitability or better align the cost structure of the business with projected revenue levels. The liabilities as of December 31, 2025 are expected to be settled in 2026.

The following table provides a summary of the activity related to accrued restructuring and other charges:

 

 

 

 

Employee
termination
charges

 

 

Lease contract
termination and
other charges

 

 

Total

(In thousands)

 

 

 

Balance as of December 31, 2022

 

$

1,912

 

$

—

 

$

1,912

Additions

 

 

3,834

 

 

631

 

 

4,465

Cash payments

 

 

(5,384)

 

 

(579)

 

 

(5,963)

Adjustments

 

 

(105)

 

 

(22)

 

 

(127)

Balance as of December 31, 2023

 

 

257

 

 

30

 

 

287

Additions

 

 

4,154

 

 

325

 

 

4,479

Cash payments

 

 

(3,722)

 

 

(86)

 

 

(3,808)

Adjustments

 

 

(25)

 

 

(269)

 

 

(294)

Balance as of December 31, 2024

 

 

664

 

 

—

 

 

664

Additions

 

 

7,550

 

 

214

 

 

7,764

Cash payments

 

 

(6,849)

 

 

(10)

 

 

(6,859)

Adjustments

 

 

20

 

 

(35)

 

 

(15)

Balance as of December 31, 2025

 

$

1,385

 

$

169

 

$

1,554
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases

Note 15. Leases

The Company leases office space, cars, distribution centers and equipment under non-cancellable operating lease arrangements with various expiration dates through December 2037. The leases have remaining lease terms of approximately 1 year to 12 years, some of which include options to extend for up to a further 5 years, and some of which include options to terminate prior to completion of the contractual lease term with or without penalties. The Company determines the duration of the lease arrangement giving thought to whether or not it is reasonably certain that the Company will exercise options to extend or terminate the lease arrangement ahead of its contractual term. The leases do not contain any material residual value guarantees.

The components of lease cost were as follows:

 

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

(In Thousands)

 

 

 

Operating lease cost

 

$

12,393

 

$

12,424

 

$

12,586

Short-term lease cost

 

 

158

 

 

315

 

 

305

Total lease cost (1)

 

$

12,551

 

$

12,739

 

$

12,891

_______________________

(1)
Included in cost of revenue, sales and marketing, research and development and general and administration in the Company’s consolidated statement of operations.

Supplemental cash flow information related to leases was as follows:

 

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

(In Thousands)

 

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

 

Operating cash flows relating to operating leases

 

$

12,633

 

$

13,733

 

$

12,697

 

 

 

 

 

 

 

 

 

Lease liabilities arising from obtaining right-of-use assets:

 

 

 

 

 

 

 

 

 

Operating leases

 

$

18,996

 

$

1,273

 

$

6,987

 

Supplemental balance sheet information related to leases was as follows:

 

 

 

As of December 31,

 

 

2025

 

2024

Weighted Average Remaining Lease Term (in years)

 

 

 

 

Operating leases

 

7.7

 

4.1

 

 

 

 

Weighted Average Discount Rate

 

 

 

 

Operating leases

 

6.6%

 

6.1%

 

As of December 31, 2025, maturities of operating lease liabilities were as follows (in thousands):

 

 

 

 

Operating Lease

2026

 

$

12,925

2027

 

 

11,898

2028

 

 

5,623

2029

 

 

4,793

2030

 

 

4,788

Thereafter

 

 

27,011

Total lease payments

 

 

67,038

Less imputed interest

 

 

(16,089)

Total

 

$

50,949
v3.25.4
Schedule II - Valuation and Qualifying Accounts
 12 Months Ended
Dec. 31, 2025
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts

Schedule II—Valuation and Qualifying Accounts

 

(In thousands)

 

 

Balance at
Beginning
of Year

 

 

Other

 

 

Additions

 

 

Deductions

 

 

Balance at
End of Year

Allowance for doubtful accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2025

 

$

507

 

$

—

 

$

142

 

$

(183)

 

$

466

Year ended December 31, 2024

 

 

338

 

 

—

 

 

169

 

 

—

 

 

507

Year ended December 31, 2023

 

$

397

 

$

—

 

$

—

 

$

(59)

 

$

338
v3.25.4
The Company and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of presentation

Basis of presentation

The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in the consolidation of these subsidiaries.
Fiscal periods

Fiscal periods

The Company’s fiscal year begins on January 1 of the year stated and ends on December 31 of the same year. The Company reports its results on a fiscal quarter basis rather than on a calendar quarter basis. Under the fiscal quarter basis, each of the first three fiscal quarters ends on the Sunday closest to the calendar quarter end, with the fourth quarter ending on December 31.
Use of estimates

Use of estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. As of the date of issuance of these consolidated financial statements, the Company is not aware of any specific event or circumstance that would require it to update its estimates, judgments or revise the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known.
Segments

Segments

In the first quarter of 2025, the Company realigned its business structure by separating the previously disclosed Connected Home segment into two reportable segments: Home Networking and Mobile. Effective January 1, 2025, the Company operated and reported in three segments for the first three fiscal quarters of 2025: NETGEAR for Business, Home Networking, and Mobile. Beginning on the first day of the fourth fiscal quarter of 2025, the Company streamlined its operating and reporting structure and returned to two reportable segments: Enterprise (formerly NETGEAR for Business) and Consumer (previously reported as Connected Home), with Consumer comprising the former Home Networking and Mobile businesses. None of the changes impacted previously reported consolidated net revenue, income (loss) from operations, net income (loss) per share, total assets, or stockholders’ equity. As a result, the segment information for the year ended December 31, 2025 reflects the Company’s two reportable segments, and prior-period segment information has been presented on a comparable basis. The impact on the full-year disclosure therefore relates primarily to segment naming, reflecting Enterprise (formerly NETGEAR for Business) and

Consumer (previously reported as Connected Home). Refer to “Goodwill” in Note 4, Balance Sheet Components, and Note 12, Segment Information for additional information.
Cash and cash equivalents

Cash and cash equivalents

The Company considers all highly liquid investments with an original maturity or a remaining maturity at the time of purchase of three months or less to be cash equivalents. The Company deposits cash and cash equivalents with high credit quality financial institutions.
Investments

Investments

Short-term investments are partially comprised of marketable and convertible debt securities that consist of government debts with an original maturity or a remaining maturity at the time of purchase, of greater than three months and no more than 12 months. These debt securities are classified as available-for-sale securities in accordance with the provisions of the authoritative guidance for investments and are carried at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity. Credit losses on available-for-sale debt securities with unrealized losses are recognized as allowances for credit losses limited to the amount by which fair value is below amortized cost.

Short-term investments also include marketable securities related to deferred compensation under the Company’s Deferred Compensation Plan. Mutual funds are the only investments allowed in the Company’s Deferred Compensation Plan and the investments are held in a grantor trust formed by the Company. The Company has classified these investments as trading securities as the grantor trust actively manages the asset allocation to match the participants’ notional fund allocations. These securities are recorded at fair market value with unrealized gains and losses included in Other income, net in the consolidated statements of operations.

Long-term investments are comprised of equity investments without readily determinable fair values, and investments in limited partnership funds, and are included in Other non-current assets on the consolidated balance sheets. Equity investments without readily determinable fair values are accounted for at cost, less impairment and adjusted for subsequent observable price changes obtained from orderly transactions for identical or similar investments issued by the same investee. Such changes in the basis of the equity investment are recognized in Other income, net in the consolidated statements of operations. The Company does not have a controlling interest or the ability to exercise significant influence over these investees and these investments do not have readily determinable fair values. Investments in convertible debt securities are carried at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity. Investments in limited partnership funds amounted to $2.6 million and $2.3 million as of December 31, 2025 and 2024, respectively, which are measured at fair value using the net asset value practical expedient. Changes in the fair value of these investments are recognized in Other income, net in the consolidated statements of operations.

Certain risks and uncertainties

Certain risks and uncertainties

The Company’s products are concentrated in the networking industries, which are characterized by rapid technological advances, changes in customer requirements and evolving regulatory requirements and industry standards. The success of the Company depends on management’s ability to anticipate and/or to respond quickly and adequately to such changes. Any significant delays in the development or introduction of products and services could have a material adverse effect on the Company’s business and operating results.

The Company relies on a limited number of third parties to manufacture all of its products. If any of the Company’s third-party manufacturers cannot or will not manufacture its products in required volumes, on a cost-effective basis, in a timely manner, or at all, the Company will have to secure additional manufacturing capacity. Any interruption or delay in manufacturing could have a material adverse effect on the Company’s business and operating results.
Derivative financial instruments

Derivative financial instruments

The Company uses foreign currency forward contracts that generally mature within six months of inception to manage the exposures to foreign exchange risk related to expected future cash flows on certain forecasted revenue,

cost of revenue, operating expenses, and on certain existing assets and liabilities. Under its foreign currency risk management strategy, the Company utilizes derivative instruments to reduce the impact of currency exchange rate movements on the Company’s operating results by offsetting gains and losses on the forward contracts with increases or decreases in foreign currency transactions. The Company does not use derivative financial instruments for speculative purposes.

The Company accounts for its derivative instruments as either assets or liabilities and records them at fair value. The Company has entered into master netting arrangements which allow net settlements under certain conditions. Although netting is permitted, it is currently the Company’s policy and practice to record all derivative assets and liabilities on a gross basis on the consolidated balance sheets. Derivatives that are not designated as hedges under the authoritative guidance for derivatives are adjusted to fair value through earnings. For derivative instruments that hedge the exposure to variability in expected future cash flows and are designated as cash flow hedges, the gains or losses on the derivative instrument are reported as a component of accumulated other comprehensive income in stockholders’ equity and reclassified into the same line item in the statement of operations as the hedged transaction, and in the same period that the hedged transaction effects earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions.
Concentration of credit risk

Concentration of credit risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, short-term investments and accounts receivable. The Company believes that there is minimal credit risk associated with the investment of its cash and cash equivalents and short-term investments, due to the restrictions placed on the type of investment that can be entered into under the Company’s investment policy. The Company’s short-term investments consist of investment-grade securities, and the Company’s cash and investments are held and managed by recognized financial institutions.

The Company’s customers are primarily distributors as well as retailers and broadband service providers who sell or distribute the products to a large group of end-users. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. The Company regularly performs credit evaluations of the Company’s customers’ financial condition and considers factors such as historical experience, credit quality, age of the accounts receivable balances, geographic or country-specific risks and current economic conditions that may affect customers’ ability to pay. The Company does not require collateral from its customers.

As of December 31, 2025, Best Buy, Inc. and affiliates, Amazon and affiliates, and Wal-Mart Stores, Inc and affiliates, accounted for approximately 17%, 16% and 10% of the Company’s total accounts receivable, respectively. As of December 31, 2024, Best Buy, Inc. and affiliates and Amazon and affiliates each accounted for approximately 19% of the Company’s total accounts receivable. No other customers accounted for 10% or greater of the Company’s total accounts receivable.

The Company is exposed to credit loss in the event of nonperformance by counterparties to the foreign currency forward contracts used to mitigate the effect of foreign currency exchange rate changes. The Company believes the counterparties for its outstanding contracts are large, financially sound institutions and thus, the Company does not anticipate nonperformance by these counterparties. In the event of turbulence or the onset of a financial crisis in financial markets, the failure of counterparties cannot be ruled out.
Fair value measurements

Fair value measurements

The carrying amounts of the Company’s financial instruments, including cash equivalents, short-term investments, accounts receivable, and accounts payable approximate their fair values due to their short maturities. Foreign currency forward contracts are recorded at fair value based on observable market data. Refer to Note 13, Fair Value Measurements, in Notes to Consolidated Financial Statements for disclosures regarding fair value measurements in accordance with the authoritative guidance for fair value measurements and disclosures.
Allowance for doubtful accounts

Allowance for doubtful accounts

The Company maintains an allowance for doubtful accounts for estimated credit losses resulting from the inability of its customers to make required payments and reviews it quarterly. The Company determines expected credit losses by performing credit evaluations of its customers’ financial condition, establishing specific reserves for

customers in an adverse financial condition and adjusting for its expectations of changes in conditions that may impact the collectability of outstanding receivables. The Company considers factors such as historical experience, credit quality, age of the accounts receivable balances, and geographic or country-specific risks. If the financial condition of the Company’s customers should deteriorate or if actual defaults are higher than the Company’s historical experience, additional allowances may be required, which could have an adverse impact on operating expenses.
Inventories

Inventories

 

Inventories consist primarily of finished goods which are valued at the lower of cost and net realizable value, with cost being determined using the first-in, first-out method. On a quarterly basis, the Company assesses the value of the inventory and writes down its value for estimated excess and obsolete inventory based upon assumptions about the future demand by reviewing inventory quantities on hand and on order under non-cancelable purchase commitments in comparison to the Company’s estimated forecast of product demand to determine what inventory, if any, is not saleable at or above cost. The Company’s analysis is primarily based on the demand forecast which takes into account market conditions, product development plans, product life expectancy and other factors. At the point of loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase of the newly established cost basis.
Property and equipment, net

Property and equipment, net

Property and equipment are stated at historical cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows:

 

Computer equipment

2 years

Furniture and fixtures

5 years

Software

2-5 years

Machinery and equipment

2-3 years

Leasehold improvements

Shorter of estimated useful life or remaining lease term

 

Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. The carrying value of the asset is reviewed on a regular basis for the existence of facts, both internal and external, that may suggest impairment.
Leases

Leases

The Company determines if an arrangement is a lease or contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other accrued liabilities, and operating lease liabilities on the consolidated balance sheets. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For certain office leases, the Company accounts for the lease and non-lease components as a single lease component to the extent that the timing and pattern of transfer are similar for the lease and non-lease components and the lease component qualifies as an operating lease. Lease expense is recognized on a straight-line basis over the lease term.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on a benchmark interest rate adjusted for its specific credit risk. The operating lease ROU asset includes any lease payments made and excludes lease incentives.
Intangible Assets, net

Intangible Assets, net

Purchased intangible assets with finite lives are recorded at cost and amortized using the straight-line method over the estimated economic lives of the assets, which range from one to seven years. Contingent consideration related

to acquired intangible assets is initially measured at present value and is reassessed each reporting period, with changes recorded as adjustments to the related liability and the carrying amount of the associated intangible asset. Any incremental cost is amortized using the same method and remaining useful life as the original intangible asset, with a cumulative catch-up adjustment recorded in the period of change. Finite-lived intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition.
Goodwill

Goodwill

Goodwill represents the purchase price over estimated fair value of net assets of businesses acquired in a business combination. Goodwill acquired in a business combination is not amortized, but instead tested for impairment at least annually on the first day of the fourth quarter. Should certain events or indicators of impairment occur between annual impairment tests, the Company performs the impairment test as those events or indicators occur. Examples of such events or circumstances include the following: a significant decline in the Company’s expected future cash flows; a sustained, significant decline in the Company’s stock price and market capitalization; a significant adverse change in the business climate; and slower growth rates.

Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of the reporting unit is less than its carrying value. The qualitative assessment considers the following factors: macroeconomic conditions, industry and market considerations, cost factors, overall company financial performance, events affecting the reporting units, and changes in the Company’s share price. If the reporting unit does not pass the qualitative assessment, the Company estimates its fair value and compares the fair value with the carrying value of its reporting unit, including goodwill. If the fair value is greater than the carrying value of its reporting unit, no impairment is recorded. If the fair value is less than the carrying value, an impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. The impairment charge would be recorded to earnings in the consolidated statements of operations.
Revenue Recognition

Revenue Recognition

 

Revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers at the amount that reflects the consideration that the Company expects to be entitled to in exchange for those goods or services.

 

The Company derives its revenue primarily from product sales, consisting of sales of Enterprise and Consumer hardware products to its customers - retailers, distributors, service providers, and services. Revenue is recognized at a point in time when control of the goods is transferred to the customer, generally occurring upon shipment or delivery dependent upon the terms of the underlying contract or once the risk of loss has been transferred to the customer. The Company evaluates its customers’ ability to pay based on various factors like historical payment experience, financial metrics and customer credit scores. Payment is collected within a short period of time from the date control over the product is transferred to the customer or after commencement of services.

Revenue for services relates primarily to sales of subscriptions of the Company’s value-added services, including security and privacy, parental controls and remote network management as well as advanced technical support and extended warranty. Service revenue is generally recognized over time ratably over the contract term beginning when the customer is expected to activate their account. Service contracts are generally for 30 days or 12 months in length, billed either monthly or annually and generally in advance. The technical support services consist of telephone and internet access to technical support personnel and extended warranty. All such service or support sales are typically recognized using an input measure of progress by looking at the time elapsed and based on the customer receiving the benefit throughout the contract period. To date, services revenue has not represented a significant percentage of our total revenue.

 

Revenue from all sale types is recognized at the transaction price and is calculated as selling price net of variable consideration which may include estimates for future returns, sales incentives and price protection. We record estimated variable consideration related to these items as a reduction to revenue at the time of revenue recognition. An allowance for future sales returns is established based on historical trends in product return rates. The Company

uses the expected value method to arrive at the amount of variable consideration which is based on management’s analysis of historical and anticipated returns information, sell through and channel inventory levels, current economic trends, and changes in customer demand. The Company’s standard obligation to its direct customers generally provides for a full refund in the event that such product is not merchantable or is found to be damaged or defective. Certain distributors and retailers generally have the right to return product for stock rotation purposes as well. At the time the Company records the reduction to revenue, the Company includes within cost of revenue a write-down to reduce the carrying value of such products to net realizable value.

 

In addition to channel returns, sales incentive programs offer certain reimbursement rights to qualified distributors and retailers for marketing expenditures. If distinct goods or services are received from the customer in exchange for the payment, the expenditures are accrued within operating expenses or cost of revenue as appropriate, otherwise expenditures are recorded as a reduction of revenue. The Company provides price protections in limited cases, with variable consideration assessed based on customary business practice such as anticipated price decreases, historical pricing information and customer claims processing.

 

For products sold with third-party services where the Company obtains control of the product and/or service before transferring it to the customer, the Company recognizes revenue based on the gross amount billed to customers. The Company recognizes revenue on a net basis when the Company is acting as an agent between the customer and the vendor. The Company considers several factors in determining when it obtains control, such as determining the responsible party for fulfillment of the services, whether the Company has inventory risk before the service is transferred or if it has discretion to establish pricing for the third-party services.

Contracts with Multiple Performance Obligations

 

Some of the Company’s contracts with customers contain multiple promised goods or services. Such contracts may include hardware products with embedded software and other various software subscription services and support. For these contracts, the Company evaluates whether each deliverable is a distinct promise and if so, accounts for the promises separately as individual performance obligations. If a promised good or service is not distinct in accordance with the revenue guidance, the Company combines that good or service with the other promised goods or services in the arrangement and accounts for it as a distinct good. The embedded software on most of the hardware products is not considered distinct and therefore the combined hardware and incidental software are treated as one performance obligation and recognized at the point in time when control of product transfers to the customer. Services included with certain hardware products are considered distinct, as a customer can benefit from the product without these services and, therefore, the hardware and service are treated as separate performance obligations.

 

Revenue is allocated among the performance obligations based on their relative standalone selling prices. Standalone selling prices are generally determined based on the prices charged to customers or using an adjusted market assessment. The estimated standalone selling price is typically directly observable from sales based on a range of prices, but may be determined using information such as prices charged for similar offerings, estimated costs to provide the performance obligation and other observable inputs. Revenues allocated to the hardware and bundled subscription are recognized when control has transferred to the customer, which generally occurs when the product is shipped. Revenue allocated to product-related bundled services are deferred and recognized on a straight-line basis over the estimated period they are expected to be provided.

Deferred Revenue

Deferred revenue consists of service and support fees due in advance of satisfying performance. The majority of the Company’s deferred revenue balance consists of the unrecognized portion of service revenue from its value-added services, including cyber security, parental controls and remote network management services as well as advanced technical support and extended warranty, which is recognized as revenue ratably over the contractual service period. Performance obligations expected to be fulfilled within one year are classified as current liabilities and the remaining are recorded as noncurrent liabilities.

Warranties

Hardware products regularly include warranties to the end customers that consist of bug fixes, minor updates such that the product continues to function according to published specs in a dynamic environment, and phone support. These standard warranties are assurance type warranties and do not offer any services beyond the assurance that the product will continue working as specified. Therefore, warranties are not considered separate performance obligations

in the arrangement. Instead, the expected cost of product warranty is accrued as expense at the time we recognize revenue in accordance with authoritative guidance. Extended warranties are sold separately and include additional support services. The transaction price for extended warranties is accounted for as service revenue and recognized over the life of the contract.

Shipping and Handling

Shipping and handling fees billed to customers are included in Net revenue. Shipping and handling costs associated with inbound freight are included in Cost of revenue. In cases where the Company gives a freight allowance to the customer for their own inbound freight costs, such costs are appropriately recorded as a reduction in Net revenue. Shipping and handling costs associated with outbound freight are included in Sales and marketing expenses. The Company has elected to account for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products.

Shipping and handling costs associated with outbound freight totaled $9.4 million, $9.5 million and $8.8 million in the years ended December 31, 2025, 2024 and 2023, respectively.
Research and development

Research and development

Costs incurred in the research and development of new products are charged to expense as incurred.
Advertising costs

Advertising costs

Advertising costs are expensed as incurred. Total advertising and promotional expenses were $19.5 million, $23.3 million, and $28.9 million in the years ended December 31, 2025, 2024 and 2023, respectively.
Income taxes

Income taxes

The Company accounts for income taxes under an asset and liability approach. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences resulting from different treatment for tax versus accounting for certain items, such as accruals and allowances not currently deductible for tax purposes. These differences result in deferred tax assets and liabilities, which are included within the consolidated balance sheets. The Company must then assess the likelihood that the Company’s deferred tax assets will be recovered from future taxable income and to the extent the Company believes that recovery is not more likely than not, the Company must establish a valuation allowance. The Company’s assessment considers the recognition of deferred tax assets on a jurisdictional basis. Accordingly, in assessing its future taxable income on a jurisdictional basis, the Company considers the effect of its transfer pricing policies on that income. The Tax Act introduced a new tax on Global Intangible Low-Taxed Income (“GILTI”) effective as of January 1, 2018. The Company’s policy is to treat GILTI as a period cost if and when incurred.

In the ordinary course of business there is inherent uncertainty in assessing the Company’s income tax positions. The Company assesses its tax positions and records benefits for all years subject to examination based on management’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company records the largest amount of tax benefit with a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recorded in the financial statements. Where applicable, associated interest and penalties have also been recognized as a component of income tax expense.

Net income (loss) per share

Net income (loss) per share

Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include common shares issuable upon exercise of stock options, vesting of restricted stock awards and performance shares, and issuances of shares under the Employee Stock Purchase Plan, which are reflected in diluted net income per share by application of

the treasury stock method. Potentially dilutive common shares are excluded from the computation of diluted net income per share when their effect is anti-dilutive.
Stock-based compensation

Stock-based compensation

The Company measures stock-based compensation at the grant date based on the fair value of the award. The fair value of stock options and the shares offered under the Employee Stock Purchase Plan (“ESPP”) is estimated using the Black-Scholes option pricing model. Estimated compensation cost relating to restricted stock units (“RSUs”) and performance shares is based on the closing fair market value of the Company’s common stock on the date of grant.

The compensation expense for equity awards is recognized over the vesting period of the award under a straight-line vesting method. Forfeitures are accounted for as they occur. In addition, for performance shares, the Company evaluates the probability of achieving the performance conditions at the end of each reporting period and records the related stock-based compensation expense based on performance to date over the service period. All excess tax benefits and tax deficiencies arising from stock awards vesting or settlement are recorded as income tax expense or benefit rather than in equity. Refer to Note 11, Employee Benefit Plans, in Notes to Consolidated Financial Statements for a further discussion on stock-based compensation.
Comprehensive income (loss)

Comprehensive income (loss)

Comprehensive income (loss) consists of net income (loss) and other gains and losses affecting stockholder’s equity that the Company excluded from net income (loss), including gains and losses related to fair value of short-term investments and the effective portion of cash flow hedges that were outstanding as of the end of the year.
Foreign currency translation and re-measurement

Foreign currency translation and re-measurement

The Company’s functional currency is the U.S. dollar for all of its international subsidiaries. Foreign currency transactions of international subsidiaries are re-measured into U.S. dollars at the end-of-period exchange rates for monetary assets and liabilities, and at historical exchange rates for non-monetary assets. Revenue is re-measured at average exchange rates in effect during each period. Expenses are re-measured at average exchange rates in effect during each period, except for expenses related to non-monetary assets, which are re-measured at historical exchange rates. Gains and losses arising from foreign currency transactions are included in Other income, net.
Recent accounting pronouncements

Recent accounting pronouncements

Accounting Pronouncements Recently Adopted

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” which requires the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 requires the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. ASU 2023-09 is effective for the Company for the year ending December 31, 2025 and early adoption is permitted. The Company adopted the new standard effective December 31, 2025 on a prospective basis. Refer to Note 8, Income Taxes, for details.

Accounting Pronouncements Not Yet Effective

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”, which expands the disclosure requirements for specific costs and expenses. ASU 2024-03 is effective for the Company for the year ending December 31, 2027 and early adoption is permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. The Company does not expect that the guidance will have material impacts on its financial position, results of operations or cash flows. The Company is evaluating the impact that the updated standard will have on its financial statement disclosures.

In July 2025, the FASB issued ASU 2025-05, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets”, which introduces a practical expedient permitting entities to assume that current economic conditions as of the balance sheet date do not change over the remaining life

of current accounts receivable and contract assets arising from transactions within the scope of ASC 606, including assets acquired in a business combination. ASU2025-05 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2026 on a prospective basis. Early adoption is permitted. The Company does not expect that the updated standard will have material impacts on its financial position, results of operations or cash flow.

In September 2025, the FASB issued ASU 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software”, which eliminates project stages and requires capitalizing costs when management has committed to funding the project and it is probable of completion. ASU2025-06 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2028 on a prospective basis. Early adoption is permitted. The Company is evaluating the impact that the updated standard will have on its financial position, results of operations or cash flow.

In November 2025, the FASB issued ASU 2025-09, "Derivatives and Hedging (Topic 815): Hedge Accounting Improvements", which amends existing hedge accounting guidance to better align financial reporting with the economics of an entity’s risk management activities. ASU2025-09 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2027 on a prospective basis. Early adoption is permitted. The Company is evaluating the impact that the updated standard will have on its financial statement disclosures.

In December 2025, the FASB issued ASU 2025-11, "Interim Reporting (Topic 270): Narrow Scope Improvement”, which amends interim reporting guidance to improve the consistency and transparency of interim disclosures, including clarifications to required disclosures and a new principle for reporting material events occurring after the most recent annual period. ASU 2025-11 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2028 on a prospective basis. Early adoption is permitted. The Company is evaluating the impact that the updated standard will have on its financial statement disclosures.

In December 2025, the FASB issued ASU 2025-12, “Codification Improvements”, which makes minor corrections, clarifications, and enhancements across the FASB Accounting Standards Codification. ASU2025-12 is effective for the Company for its fiscal year and all interim periods beginning January 1, 2027 on a prospective basis. Early adoption is permitted. The Company is evaluating the impact that the updated standard will have on its financial statement disclosures.

With the exception of the new standards discussed above, there have been no other new accounting pronouncements that have significance, or potential significance, to the Company’s financial position, results of operations and cash flows.
v3.25.4
The Company and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Estimated Useful Lives of Property and Equipment, Net

Property and equipment are stated at historical cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows:

 

Computer equipment

2 years

Furniture and fixtures

5 years

Software

2-5 years

Machinery and equipment

2-3 years

Leasehold improvements

Shorter of estimated useful life or remaining lease term
v3.25.4
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Remaining Performance Obligations

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that were unsatisfied or partially unsatisfied as of December 31, 2025:

 

(In thousands)

 

 

Less than 1 year

 

 

1 to 2 years

 

 

Beyond 2 years

 

 

Total

Performance obligations

 

$

50,726

 

$

2,355

 

$

1,904

 

$

54,985

 
Schedule of Contract Balances

The following table reflects the contract balances:

 

(In thousands)

 

Balance Sheet Location

 

 

December 31, 2025

 

 

December 31, 2024

Accounts receivable, net

 

Accounts receivable, net

 

$

142,045

 

$

156,210

Contract liabilities – current

 

Deferred revenue

 

$

26,904

 

$

30,261

Contract liabilities – non-current

 

Other non-current liabilities

 

$

4,206

 

$

5,101
Schedule of Net Revenue Disaggregated by Geographical Region and Sales Channel

In the following table, net revenue is disaggregated by geographic region and sales channel. The Company conducts business across three geographic regions: Americas; Europe, Middle East, and Africa (“EMEA”); and Asia Pacific (“APAC”). The table also includes reconciliations of the disaggregated revenue by reportable segment. Refer to “Segments” in Note 1, The Company and Summary of Significant Accounting Policies, for information regarding the Company’s segment changes during 2025. As of December 31, 2025, the Company operated and reported in two segments: Enterprise (formerly NETGEAR for Business), and Consumer (formerly reported as
Connected Home). Sales and usage-based taxes are excluded from net revenue.

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

(In thousands)

 

 

Enterprise

 

 

Consumer

 

 

Total

 

 

Enterprise

 

 

Consumer

 

 

Total

 

 

Enterprise

 

 

Consumer

 

 

Total

Geographic regions (1) :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

176,791

 

$

299,229

 

$

476,020

 

$

144,336

 

$

311,704

 

$

456,040

 

$

146,045

 

$

358,304

 

$

504,349

EMEA

 

 

106,195

 

 

33,407

 

 

139,602

 

 

88,782

 

 

38,478

 

 

127,260

 

 

102,839

 

 

46,083

 

 

148,922

APAC

 

 

59,043

 

 

24,956

 

 

83,999

 

 

54,694

 

 

35,765

 

 

90,459

 

 

45,091

 

 

42,478

 

 

87,569

Total

 

$

342,029

 

$

357,592

 

$

699,621

 

$

287,812

 

$

385,947

 

$

673,759

 

$

293,975

 

$

446,865

 

$

740,840

Sales channels:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service provider (2)

 

$

1,127

 

$

106,766

 

$

107,893

 

$

977

 

$

139,202

 

$

140,179

 

$

579

 

$

151,697

 

$

152,276

Non-service provider

 

 

340,902

 

 

250,826

 

 

591,728

 

 

286,835

 

 

246,745

 

 

533,580

 

 

293,396

 

 

295,168

 

 

588,564

Total

 

$

342,029

 

$

357,592

 

$

699,621

 

$

287,812

 

$

385,947

 

$

673,759

 

$

293,975

 

$

446,865

 

$

740,840

_____________________________

(1) No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.

(2) Service provider net revenue in Consumer Segment included cable net revenue from retail channels. Prior-period amounts have been recast to conform to the current-period presentation.
v3.25.4
Balance Sheet Components (Tables)
 12 Months Ended
Dec. 31, 2025
Balance Sheet Related Disclosures [Abstract]  
Schedule of Amortized Cost and Estimated Fair Market Value of Investments Classified as Available-for-Sale Excluding Cash Equivalents

Amortized cost and estimated fair market value of investments classified as available-for-sale, excluding cash equivalents, as of December 31, 2025, and December 31, 2024, were as follows:

 

 

 

 

December 31, 2025

(In thousands)

 

 

Amortized Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Estimated
Fair Value

U.S. treasury securities

 

$

110,048

 

$

162

 

$

—

 

$

110,210

Total

 

$

110,048

 

$

162

 

$

—

 

$

110,210

 

 

 

 

December 31, 2024

(In thousands)

 

 

Amortized Cost

 

 

Unrealized
Gains

 

 

Unrealized
Losses

 

 

Estimated
Fair Value

U.S. treasury securities

 

$

119,199

 

$

171

 

$

—

 

$

119,370

Total

 

$

119,199

 

$

171

 

$

—

 

$

119,370
Schedule of Inventories

Inventories

 

(In thousands)

 

 

December 31, 2025

 

 

December 31, 2024

Raw materials

 

$

8,828

 

$

13,439

Finished goods

 

 

167,628

 

 

149,100

Total

 

$

176,456

 

$

162,539
Schedule of Property and Equipment, Net

Property and equipment, net

 

(In thousands)

 

 

December 31, 2025

 

 

December 31, 2024

Machinery and equipment

 

$

54,007

 

$

54,355

Furniture and fixtures

 

 

3,482

 

 

4,185

Leasehold improvements

 

 

21,475

 

 

15,843

Software

 

 

21,642

 

 

24,610

Computer equipment

 

 

3,370

 

 

5,384

Total property and equipment, gross

 

 

103,976

 

 

104,377

Accumulated depreciation

 

 

(77,975)

 

 

(93,089)

Total

 

$

26,001

 

$

11,288
Schedule of Intangible Assets, Net

 

 

December 31, 2025

(In thousands)

 

Gross

 

 

Accumulated
Amortization

 

 

Accumulated Impairment

 

 

Net

Technology

$

39,594

 

$

(1,166)

 

$

—

 

$

38,428

Customer contracts and related relationships

 

50

 

 

(3)

 

 

—

 

 

47

Other

 

10

 

 

(5)

 

 

—

 

 

5

Total

$

39,654

 

$

(1,174)

 

$

—

 

$

38,480

 

In the fourth fiscal quarter of 2025, the Company acquired a perpetual software license related to its managed switch products, which is included within Technology intangible assets. The license is accounted for as a finite-lived intangible asset and is amortized on a straight-line basis over its estimated useful life of seven years. The gross carrying amount of the software license intangible asset of $35.4 million includes the present value of fixed deferred payments, the present value of contingent consideration when probable and reasonably estimable, and amount recognized upon the extinguishments of an accrued liability. Increases in intangible assets not related to the aforementioned software license pertain to the Exium business acquisition. Refer to Note 3, Business Acquisition, for additional details.

As of December 31, 2024, all of the Company’s intangible assets were fully amortized. There was no amortization expense or other activity related to intangible assets during the year ended December 31, 2024. Amortization of the intangible assets in the years ended December 31, 2025, 2024 and 2023 was $1.2 million, zero and $0.3 million, respectively.

Schedule of Estimated Amortization Expense Related to Finite-lived Intangibles

As of December 31, 2025, estimated amortization expense related to finite-lived intangibles for each of the remaining years was as follows (in thousands):

2026

 

$

5,666

2027

 

 

5,661

2028

 

 

5,661

2029

 

 

5,661

2030

 

 

5,661

Thereafter

 

 

10,170

Total

 

$

38,480
Schedule of Goodwill

Goodwill

(In thousands)

 

 

Enterprise

 

 

Consumer

 

Total

 As of December 31, 2023

 

$

36,279

 

$

—

$

$36,279

 As of December 31, 2024

 

$

36,279

 

$

—

$

$36,279

 Goodwill from acquisition of Exium

 

 

8,743

 

 

—

 

8,743

 As of December 31, 2025

 

$

45,022

 

$

—

$

45,022

 

As disclosed under “Segments” in Note 1, The Company and Summary of Significant Accounting Policies, the Company underwent segment realignments during fiscal 2025. The Company had three reportable segments: NETGEAR for Business, Home Networking, and Mobile, during the first three fiscal quarters of 2025, and returned to two reportable segments: Enterprise (formerly NETGEAR for Business) and Consumer (formerly Connected Home in the prior year), during the fourth fiscal quarter, with Consumer comprising the former Home Networking and Mobile businesses. These changes reflected modifications to internal reporting and external segment presentation and did not result in changes to the underlying businesses, expected cash flows, or the allocation of goodwill among reporting units. The Consumer business (formerly Connected Home) comprising Home Networking and Mobile, has had a zero goodwill balance since the first quarter of 2022; accordingly, the segment realignments did not affect goodwill. The segment realignment did not involve changes to the composition or carrying amount of reporting units’ net assets, plans to dispose of any reporting unit, or changes in strategy, and therefore did not result in a reorganization of reporting units or trigger a goodwill impairment assessment.
Schedule of Other Non-Current Assets

Other non-current assets

 

(In thousands)

 

 

December 31, 2025

 

 

December 31, 2024

Non-current deferred income taxes

 

$

2,386

 

$

2,332

Long-term investments

 

 

8,732

 

 

8,381

Restricted cash

 

 

2,102

 

 

2,107

Other

 

 

3,551

 

 

3,767

Total

 

$

16,771

 

$

16,587

Long-term investments

The Company’s long-term investments are primarily comprised of equity investments without readily determinable fair values and investments in limited partnership funds. The carrying value of the equity investments

without readily determinable fair values was $6.1 million as of December 31, 2025, 2024 and 2023, respectively. For such equity investments without readily determinable fair value still held at December 31, 2025, there were no cumulative downward adjustments for price changes or impairment, and the cumulative upward adjustments for price changes was $0.3 million. Investments in limited partnership funds amounted to $2.6 million as of December 31, 2025 and $2.3 million as of December 31, 2024 and 2023, respectively.
Schedule of Other Current and Non-current Accrued Liabilities

Other current accrued liabilities

 

(In thousands)

 

 

December 31, 2025

 

 

December 31, 2024

Current operating lease liabilities

 

$

9,933

 

$

10,837

Sales and marketing

 

 

61,144

 

 

59,129

Warranty obligations

 

 

5,928

 

 

5,192

Sales returns(1)

 

 

24,435

 

 

31,711

Freight and duty

 

 

4,518

 

 

4,979

Current deferred consideration(2)

 

 

8,355

 

 

—

Other

 

 

29,715

 

 

36,230

Total

 

$

144,028

 

$

148,078

_______________________

(1)
Inventory expected to be received from future sales returns amounted to $10.8 million and $15.1 million as of December 31, 2025 and 2024, respectively. Provisions to write down expected returned inventory to net realizable value amounted to $7.9 million and $9.0 million as of December 31, 2025 and 2024, respectively.
(2)
It represented current deferred consideration related to the acquisition of a perpetual soft license as of December 31, 2025. Refer to “Intangible Assets, net” in Note 4, Balance Sheet Components above, for additional information.

Other non-current accrued liabilities

(In thousands)

 

 

December 31, 2025

 

 

December 31, 2024

Non-current deferred consideration(1)

 

$

34,921

 

$

—

Non-current deferred revenue

 

 

4,206

 

 

5,101

Other

 

 

908

 

 

6,601

Total

 

$

40,035

 

$

11,702

_______________________

(1)
It represented non-current deferred consideration related to the acquisition of a perpetual soft license as of December 31, 2025. Refer to “Intangible Assets, net” in Note 4, Balance Sheet Components above, for additional information.
v3.25.4
Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Values of the Company's Derivative Instruments and the Line Items on the Consolidated Balance Sheets

The fair values of the Company’s derivative instruments and the line items on the consolidated balance sheets to which they were recorded were summarized as follows:

 

 

 

Balance Sheet

 

 

 

 

 

 

 

Balance Sheet

 

 

 

 

 

 

(In thousands)

 

Location

 

 

December 31,
2025

 

 

December 31,
2024

 

Location

 

 

December 31,
2025

 

 

December 31,
2024

Derivatives not designated as hedging instruments

 

Prepaid expenses and other current assets

 

$

315

 

$

979

 

Other accrued liabilities

 

$

699

 

$

254

Derivatives designated as hedging instruments

 

Prepaid expenses and other current assets

 

 

—

 

 

74

 

Other accrued liabilities

 

 

30

 

 

19

Total

 

 

 

$

315

 

$

1,053

 

 

 

$

729

 

$

273
v3.25.4
Net Income (Loss) Per Share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Net Income (Loss) Per Share

Net income (loss) per share consisted of the following:

 

 

 

 

Year Ended December 31,

(In thousands, except per share data)

 

 

2025

 

 

2024

 

 

2023

Numerator:

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(17,923)

 

$

12,363

 

$

(104,767)

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average common shares – basic

 

 

28,607

 

 

28,905

 

 

29,355

Potentially dilutive common share equivalent

 

 

—

 

 

778

 

 

—

Weighted average common shares – dilutive

 

 

28,607

 

 

29,683

 

 

29,355

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share

 

$

(0.63)

 

$

0.43

 

$

(3.57)

Diluted net income (loss) per share

 

$

(0.63)

 

$

0.42

 

$

(3.57)

 

 

 

 

 

 

 

 

 

Anti-dilutive employee stock-based awards, excluded

 

 

378

 

 

1,127

 

 

2,362
v3.25.4
Other Income, Net (Tables)
 12 Months Ended
Dec. 31, 2025
Other Income and Expenses [Abstract]  
Schedule of Other Nonoperating Income

Other income, net consisted of the following:

 

 

 

 

Year Ended December 31,

(In thousands)

 

 

2025

 

 

2024

 

 

2023

Interest income

 

 $

11,586

 

 $

12,152

 

 $

6,842

Foreign currency transaction gain (loss), net

 

 

3,135

 

 

(3,434)

 

 

(6)

Foreign currency contract gain (loss), net

 

 

(2,228)

 

 

3,292

 

 

267

Gain (loss) on investments and other

 

 

4,883

 

 

662

 

 

1,036

Gain on litigation settlement

 

 

—

 

 

—

 

 

6,000

Total

 

 $

17,376

 

 $

12,672

 

 $

14,139
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Before Income Taxes

Income before income taxes and the provision for income taxes consisted of the following:

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

(In thousands)

 

 

 

United States

 

$

(34,560)

 

$

10,634

 

$

(33,944)

International

 

 

17,784

 

 

14,254

 

 

14,808

Total

 

$

(16,776)

 

$

24,888

 

$

(19,136)
Schedule of Components of Income Tax Expense (Benefit)

 

 

 

Year Ended December 31,

(In thousands)

 

 

2025

 

 

2024

 

 

2023

Current:

 

 

 

 

 

 

 

 

 

U.S. Federal

 

$

(510)

 

$

7,641

 

$

358

State

 

 

(1,079)

 

 

1,868

 

 

599

Foreign

 

 

2,787

 

 

2,286

 

 

2,423

 

 

1,198

 

 

11,795

 

 

3,380

Deferred:

 

 

 

 

 

 

 

 

 

U.S. Federal

 

 

—

 

 

—

 

 

65,880

State

 

 

(102)

 

 

—

 

 

15,629

Foreign

 

 

51

 

 

730

 

 

742

 

 

(51)

 

 

730

 

 

82,251

Total

 

$

1,147

 

$

12,525

 

$

85,631

Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 1. The Company and Summary of Significant Accounting Policies, the Company discloses cash paid for income taxes, net of refunds, for the year ended December 31, 2025, as follows:
Schedule of Income Taxes Paid (Net of Refunds) The Company and Summary of Significant Accounting Policies, the Company discloses cash paid for income taxes, net of refunds, for the year ended December 31, 2025, as follows:

 

 

 

Year Ended December 31,

(In thousands)

 

 

2025

Federal taxes paid

 

$

9,044

State and local taxes paid

 

 

1,141

Foreign Taxes paid

 

 

3,587

Total income taxes paid

 

$

13,772

 
Schedule of Deferred Tax Assets and Liabilities

Net deferred tax assets consisted of the following:

 

 

 

 

Year Ended December 31,

(In thousands)

 

 

2025

 

 

2024

Deferred Tax Assets:

 

 

 

 

 

 

Accruals and allowances

 

$

18,085

 

$

18,573

Net operating loss carryforwards

 

 

9,795

 

 

1,604

Stock-based compensation

 

 

1,633

 

 

1,416

Operating lease liability

 

 

10,092

 

 

5,146

Deferred revenue

 

 

2,068

 

 

1,889

Tax credit carryforwards

 

 

3,852

 

 

1,673

Acquired intangibles

 

 

12,463

 

 

14,814

Capitalized research and development

 

 

59,265

 

 

61,703

Depreciation and amortization

 

 

—

 

 

999

Other

 

 

4,606

 

 

4,161

Total deferred tax assets

 

 

121,859

 

 

111,978

Deferred Tax Liabilities:

 

 

 

 

 

 

Depreciation and amortization

 

 

(3,521)

 

 

—

Right of use asset

 

 

(6,521)

 

 

(4,412)

Other

 

 

(1,555)

 

 

(1,414)

Total deferred tax liabilities

 

 

(11,597)

 

 

(5,826)

 

 

 

 

 

 

Valuation Allowance(1)

 

 

(107,876)

 

 

(103,820)

Net deferred tax assets

 

$

2,386

 

$

2,332

 

(1)
Valuation allowance is presented gross. The valuation allowance net of the federal tax effect was $103.5 million and $99.6 million for the years ended December 31, 2025 and 2024, respectively.
Schedule of Effective Income Tax Rate Reconciliation

 

 

Year Ended December 31,

 

 

2024

 

2023

Tax at federal statutory rate

 

21.0%

 

21.0 %

State, net of federal benefit

 

6.0 %

 

(3.1)%

Impact of international operations

 

(2.6)%

 

8.3 %

Stock-based compensation

 

1.0 %

 

(2.3)%

Tax credits

 

(2.5)%

 

5.8 %

Valuation allowance

 

26.7 %

 

(474.3)%

Recognition of previously unrecognized tax benefits

 

(0.8)%

 

(0.3)%

Non-deductible license fees

 

1.5 %

 

(1.7)%

Others

 

0.0 %

 

(0.9)%

Provision for income taxes

 

50.3 %

 

(447.5%)

 

For the year ended December 31, 2025, the effective tax rate differed from the applicable U.S. statutory federal income tax rate as follows:

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

 

Amount
(In thousands)

 

Percent

Tax at federal statutory rate

 

$

(3,523)

 

21.0%

1. State and local income tax, net of federal (national) income tax effect 1

 

 

(450)

 

2.7%

2. Foreign tax effects

 

 

 

 

 

India

 

 

 

 

 

   Statutory tax rate difference between Ireland and United States

 

 

180

 

(1.1)%

Germany

 

 

 

 

 

   Statutory tax rate difference between Ireland and United States

 

 

(224)

 

1.3%

   UTP - IC commission

 

 

40

 

(0.2)%

Romania

 

 

 

 

 

   Withholdings

 

 

351

 

(2.1)%

Other Foreign

 

 

(529)

 

3.2%

3. Effect of changes in tax laws or rates enacted in the current period

 

 

—

 

—%

4. Effect of cross-border tax laws

 

 

 

 

 

GILTI

 

 

1,704

 

(10.2)%

FDII

 

 

166

 

(1.0)%

BEAT

 

 

—

 

—%

5. Tax credits

 

 

 

 

 

R&D credit

 

 

(1,152)

 

6.9%

6. Changes in valuation allowances

 

 

2,102

 

(12.5)%

7. Nontaxable or nondeductible items

 

 

 

 

 

Stock based compensation

 

 

2,975

 

(17.7)%

Non-deductible license fees

 

 

430

 

(2.6)%

Section 162 (m)

 

 

223

 

(1.3)%

Other

 

 

517

 

(3.1)%

8. Changes in unrecognized tax benefits.

 

 

(1,660)

 

9.9%

9. Other adjustments

 

 

(3)

 

(0.0)%

Provision for (benefit from) income taxes

 

$

1,147

 

(6.8)%

 

(1)
In 2025, state taxes in Philadelphia, Texas, North Carolina, California and Indiana accounted for the majority (over 50%) of the tax effect in this category

Refer to Note 10, Stockholders Equity, for income tax impacts resulting from changes in fair value of available-for-sale securities and foreign currency hedging.
Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (“UTB”) is as follows:

(In thousands)

 

 

Federal, State,
and Foreign Tax

Balance as of December 31, 2022

 

$

7,934

Additions based on tax positions related to the current year

 

 

426

Additions for tax positions of prior years

 

 

533

Reductions due to lapse of applicable statutes

 

 

(507)

Adjustments due to foreign exchange rate movement

 

 

232

Balance as of December 31, 2023

 

 

8,618

Additions based on tax positions related to the current year

 

 

372

Additions for tax positions of prior years

 

 

10

Settlements

 

 

(712)

Reductions for tax positions of prior years

 

 

(31)

Reductions due to lapse of applicable statutes

 

 

(799)

Adjustments due to foreign exchange rate movement

 

 

72

Balance as of December 31, 2024

 

 

7,530

Additions based on tax positions related to the current year

 

 

604

Additions for tax positions of prior years

 

 

239

Reductions due to lapse of applicable statutes

 

 

(1,479)

Adjustments due to foreign exchange rate movement

 

 

403

Balance as of December 31, 2025

 

$

7,297
v3.25.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Non-cancellable Commitments Pertaining to Non-trade Activities

As of December 31, 2025, the Company’s non-cancellable commitments pertaining to non-trade activities were as follows (in thousands):

 

2026

 

$

11,910

2027

 

 

14,111

2028

 

 

14,216

2029

 

 

3,030

2030

 

 

—

Total

 

$

43,267
Schedule of Changes in Warranty Obligations

Changes in the Company’s warranty obligations, which is included in Other accrued liabilities on the consolidated balance sheets, were as follows:

 

 

 

 

Year Ended December 31,

(In thousands)

 

 

2025

 

 

2024

 

 

2023

Balance as of beginning of the period

 

$

5,192

 

$

5,738

 

$

6,320

Provision for warranty liability made

 

 

5,523

 

 

3,925

 

 

5,105

Settlements made

 

 

(4,787)

 

 

(4,471)

 

 

(5,687)

Balance as of the end of the period

 

$

5,928

 

$

5,192

 

$

5,738

 
v3.25.4
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2025
Stockholders' Equity Note [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)

The following table sets forth the changes in accumulated other comprehensive income (loss) (“AOCI”) by component:

 

(In thousands)

 

 

Unrealized gains (losses)
on available
-for-sale
investments

 

 

Unrealized
gains (losses)
on derivatives

 

 

Estimated tax
benefit (provision)

 

 

Total

Balance as of December 31, 2022

 

$

(322)

 

$

(338)

 

$

125

 

$

(535)

Other comprehensive income (loss) before reclassifications

 

 

448

 

 

2,337

 

 

(540)

 

 

2,245

Less: Amount reclassified from accumulated other comprehensive income (loss)

 

 

—

 

 

1,992

 

 

(418)

 

 

1,574

Net current period other comprehensive income (loss)

 

 

448

 

 

345

 

 

(122)

 

 

671

Balance as of December 31, 2023

 

 

126

 

 

7

 

 

3

 

 

136

Other comprehensive income (loss) before reclassifications

 

 

43

 

 

(733)

 

 

159

 

 

(531)

Less: Amount reclassified from accumulated other comprehensive income (loss)

 

 

—

 

 

(805)

 

 

169

 

 

(636)

Net current period other comprehensive income (loss)

 

 

43

 

 

72

 

 

(10)

 

 

105

Balance as of December 31, 2024

 

 

169

 

 

79

 

 

(7)

 

 

241

Other comprehensive income (loss) before reclassifications

 

 

(9)

 

 

(960)

 

 

197

 

 

(772)

Less: Amount reclassified from accumulated other comprehensive income (loss)

 

 

—

 

 

(920)

 

 

193

 

 

(727)

Net current period other comprehensive income (loss)

 

 

(9)

 

 

(40)

 

 

4

 

 

(45)

Balance as of December 31, 2025

 

$

160

 

$

39

 

$

(3)

 

$

196
Schedule of Reclassification out of AOCI

The following table provides details about significant amounts reclassified out of each component of AOCI:

 

 

 

 

Year Ended December 31,

(In thousands)

 

 

2025

 

 

2024

 

 

2023

Amount Reclassified from AOCI

 

 

 

 

 

 

 

 

 

Gains (losses) on cash flow hedge:

Foreign currency forward contracts

 

 

 

 

 

 

 

 

 

Affected line item in the statement of operations

 

 

 

 

 

 

 

 

 

Net revenue

 

$

(1,181)

 

$

(897)

 

$

2,337

Cost of revenue

 

 

2

 

 

—

 

 

(4)

Research and development

 

 

48

 

 

13

 

 

(33)

Sales and marketing

 

 

164

 

 

58

 

 

(246)

General and administrative

 

 

47

 

 

21

 

 

(62)

Total before tax

 

 

(920)

 

 

(805)

 

 

1,992

Tax impact

 

 

193

 

 

169

 

 

(418)

Total, net of tax

 

$

(727)

 

$

(636)

 

$

1,574
v3.25.4
Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2025
Employee Benefit and Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Schedule of Stock Option Activity

Stock option activity was as follows:

 

(In thousands, except per share amounts)

 

Number of
Shares

 

 

Weighted Average Exercise Price Per Share

 

Weighted
Average
Remaining
Contractual
Term

Outstanding as of December 31, 2024

 

475

 

$

32.60

 

 

Exercised

 

(198)

 

$

26.56

 

 

Expired

 

(176)

 

$

39.07

 

 

Outstanding as of December 31, 2025

 

101

 

$

33.24

 

2.95

 

 

 

 

 

 

 

As of December 31, 2025

 

 

 

 

 

 

 

Vested and expected to vest

 

101

 

$

33.24

 

2.95

Exercisable Options

 

101

 

$

33.24

 

2.95
Schedule of Ranges of Outstanding And Exercisable Stock Options

The following table summarizes significant ranges of outstanding and exercisable stock options as of December 31, 2025:

 

 

 

Options Outstanding

 

Options Exercisable

Range of Exercise Prices

 

Shares
Outstanding

 

Weighted-
Average
Remaining
Contractual
Life

 

 

Weighted-
Average
Exercise
Price Per
Share

 

Shares
Exercisable

 

 

Weighted-
Average
Exercise
Price Per
Share

 

 

(In thousands)

 

(In years)

 

 

(In dollars)

 

(In thousands)

 

 

(In dollars)

 $26.61 - $26.61

 

51

 

3.55

 

$

26.61

 

51

 

$

26.61

 $38.32 - $38.32

 

25

 

2.59

 

$

38.32

 

25

 

$

38.32

 $41.67 - $41.67

 

25

 

2.07

 

$

41.67

 

25

 

$

41.67

 $26.61 - $41.67

 

101

 

2.95

 

$

33.24

 

101

 

$

33.24
Schedule of Time-based RSU Activity RSU activity was as follows:

 

(In thousands, except per share amounts)

 

Number
of Shares

 

 

Weighted Average Grant Date Fair Value Per Share

Outstanding as of December 31, 2024

 

2,550

 

$

17.64

Granted

 

1,124

 

$

28.12

Vested

 

(1,138)

 

$

18.49

Cancelled

 

(242)

 

$

18.40

Outstanding as of December 31, 2025

 

2,294

 

$

22.27
Schedule of Performance Shares Activity activity was as follows:

(In thousands, except per share amounts)

 

Number
of Shares

 

 

Weighted Average Grant Date Fair Value Per Share

Outstanding as of December 31, 2022

 

430

 

$

29.38

Granted

 

145

 

$

14.44

Vested

 

—

 

$

—

Cancelled

 

(158)

 

$

27.85

Outstanding as of December 31, 2023

 

417

 

$

24.76

Granted

 

630

 

$

21.00

Vested

 

—

 

$

—

Cancelled

 

(392)

 

$

25.12

Outstanding as of December 31, 2024

 

655

 

$

20.93

Granted

 

434

 

$

44.59

Vested

 

(250)

 

$

20.85

Cancelled

 

(34)

 

$

22.13

Outstanding as of December 31, 2025

 

805

 

$

33.64

 

The total fair value and the grant date fair value performance-based RSUs vested during the year ended December 31, 2025, was $6.8 million and $3.9 million, respectively.
Schedule of Weighted Average Assumptions The following table sets forth the weighted-average assumptions used to estimate the fair value of purchase rights granted under the ESPP:

 

 

 

Year Ended December 31,

 

 

2025

 

2024

 

2023

 

 

 

Expected life (in years)

 

0.5

 

0.5

 

0.5

Risk-free interest rate

 

4.12%

 

5.01%

 

5.19%

Expected volatility

 

55.0%

 

48.1%

 

35.8%

Dividend yield

 

—

 

—

 

—
Schedule of Total Stock-Based Compensation Expense Resulting from Stock Options, RSUs, Performance Shares and the ESPP

The following table sets forth the stock-based compensation expense resulting from stock options, time-based and performance-based RSUs and the ESPP included in the Company’s consolidated statements of operations:

 

 

 

 

Year Ended December 31,

(In thousands)

 

 

2025

 

 

2024

 

 

2023

Cost of revenue

 

$

1,988

 

$

1,613

 

$

1,405

Research and development

 

 

4,407

 

 

3,297

 

 

3,935

Sales and marketing

 

 

8,183

 

 

6,182

 

 

5,336

General and administrative

 

 

15,137

 

 

11,586

 

 

7,262

Total

 

$

29,715

 

$

22,678

 

$

17,938
v3.25.4
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Reportable Segments and Reconciliation of Total Segment Contribution Income to Income (loss) Before Income Taxes

Financial information for each reportable segment and a reconciliation of total segment contribution income to income (loss) before income taxes is as follows:

 

 

 

Year Ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

(In thousands, except percentage data)

 

 

Enterprise

 

 

Consumer

 

 

Total

 

 

Enterprise

 

 

Consumer

 

 

Total

 

 

Enterprise

 

 

Consumer

 

 

Total

 

Net revenue

 

$

342,029

 

$

357,592

 

$

699,621

 

$

287,812

 

$

385,947

 

$

673,759

 

$

293,975

 

$

446,865

 

$

740,840

 

Cost of revenue

 

 

174,468

 

 

255,803

 

 

430,271

 

 

168,399

 

 

307,820

 

 

476,219

 

 

163,083

 

 

326,843

 

 

489,926

 

Gross profit

 

 

167,561

 

 

101,789

 

 

269,350

 

 

119,413

 

 

78,127

 

 

197,540

 

 

130,892

 

 

120,022

 

 

250,914

 

Gross margin

 

 

49.0%

 

 

28.5%

 

 

38.5%

 

 

41.5%

 

 

20.2%

 

 

29.3%

 

 

44.5%

 

 

26.9%

 

 

33.9%

 

Operating expenses

 

 

90,841

 

 

93,100

 

 

183,941

 

 

75,408

 

 

104,138

 

 

179,546

 

 

74,127

 

 

110,477

 

 

184,604

 

Contribution income (loss)

 

 

76,720

 

 

8,689

 

 

85,409

 

 

44,005

 

 

(26,011)

 

 

17,994

 

 

56,765

 

 

9,545

 

 

66,310

 

Contribution margin

 

 

22.4%

 

 

2.4%

 

 

12.2%

 

 

15.3%

 

 

(6.7)%

 

 

2.7%

 

 

19.3%

 

 

2.1%

 

 

9.0%

 

Corporate and unallocated costs

 

 

 

 

 

 

 

 

(79,465)

 

 

 

 

 

 

 

 

(67,633)

 

 

 

 

 

 

 

 

(76,179)

 

Amortization of intangible assets

 

 

 

 

 

 

 

 

(1,174)

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

(257)

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

(29,715)

 

 

 

 

 

 

 

 

(22,678)

 

 

 

 

 

 

 

 

(17,938)

 

Intangible assets impairment

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

(1,071)

 

Acquisition related expenses

 

 

 

 

 

 

 

 

(1,234)

 

 

 

 

 

 

 

 

—

 

 

 

 

 

 

 

 

—

 

Restructuring and other charges

 

 

 

 

 

 

 

 

(7,764)

 

 

 

 

 

 

 

 

(4,479)

 

 

 

 

 

 

 

 

(3,962)

 

Litigation reserves, net

 

 

 

 

 

 

 

 

(209)

 

 

 

 

 

 

 

 

89,012

 

 

 

 

 

 

 

 

(178)

 

Other income, net (1)

 

 

 

 

 

 

 

 

17,376

 

 

 

 

 

 

 

 

12,672

 

 

 

 

 

 

 

 

14,139

 

Income (loss) before income taxes

 

 

 

 

 

 

 

$

(16,776)

 

 

 

 

 

 

 

$

24,888

 

 

 

 

 

 

 

$

(19,136)

 

_______________________

(1)
Refer to Note 7, Other Income, Net for detailed information.
Schedule of Net Revenue by Geography The following table shows net revenue by geography:

 

 

 

 

Year Ended December 31,

(In thousands)

 

 

2025

 

 

2024

 

 

2023

United States (U.S.)

 

$

461,866

 

$

443,818

 

$

489,968

Americas (excluding U.S.)

 

 

14,154

 

 

12,222

 

 

14,381

EMEA (1)

 

 

139,602

 

 

127,260

 

 

148,922

APAC (1)

 

 

83,999

 

 

90,459

 

 

87,569

Total net revenue

 

$

699,621

 

$

673,759

 

$

740,840

______________________

(1)
No individual country, other than disclosed above, represented more than 10% of the Company’s total net revenue in the periods presented.
Schedule of Long-Lived Asset By Geographic Region

The following table represents the Company’s long-lived assets located in geographic areas, which consist of property and equipment, net and operating lease right-of-use assets:

 

(In thousands)

 

 

December 31, 2025

 

 

December 31, 2024

United States (U.S.)

 

$

42,836

 

$

19,057

Canada

 

 

4,584

 

 

5,573

Americas (excluding U.S. and Canada)

 

 

10

 

 

39

EMEA

 

 

2,345

 

 

3,127

Singapore

 

 

4,075

 

 

4,841

APAC (excluding Singapore) (1)

 

 

8,866

 

 

6,698

Total

 

$

62,716

 

$

39,335

_______________________

(1)
No individual country, other than disclosed above, represented more than 10% of the Company’s total long-lived assets in the periods presented.
v3.25.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables summarize assets and liabilities measured at fair value on a recurring basis:

 

 

 

 

December 31, 2025

(In thousands)

 

 

Total

 

 

Quoted market
prices in active
markets
(Level 1)

 

 

Significant
other
observable
inputs
(Level 2)

Assets:

 

 

 

 

 

 

 

 

 

Cash equivalents: money-market funds

 

$

107,070

 

$

107,070

 

$

—

Available-for-sale investments: U.S. treasury securities(1)

 

 

110,210

 

 

—

 

 

110,210

Trading securities: mutual funds(1)

 

 

2,922

 

 

2,922

 

 

—

Foreign currency forward contracts(2)

 

 

315

 

 

—

 

 

315

Total assets measured at fair value

 

$

220,517

 

$

109,992

 

$

110,525

Liabilities:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts(3)

 

$

729

 

$

—

 

$

729

Total liabilities measured at fair value

 

$

729

 

$

—

 

$

729

 

 

 

 

 

 

December 31, 2024

(In thousands)

 

 

Total

 

 

Quoted market
prices in active
markets
(Level 1)

 

 

Significant
other
observable
inputs
(Level 2)

Assets:

 

 

 

 

 

 

 

 

 

Cash equivalents: money-market funds

 

$

111,043

 

$

111,043

 

$

—

Available-for-sale investments: U.S. treasury securities(1)

 

 

119,370

 

 

—

 

 

119,370

Trading securities: mutual funds(1)

 

 

2,876

 

 

2,876

 

 

—

Foreign currency forward contracts(2)

 

 

1,053

 

 

—

 

 

1,053

Total assets measured at fair value

 

$

234,342

 

$

113,919

 

$

120,423

Liabilities:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts(3)

 

$

273

 

$

—

 

$

273

Total liabilities measured at fair value

 

$

273

 

$

—

 

$

273

 

(1)
Included in Short-term investments on the Company’s consolidated balance sheets.
(2)
Included in Prepaid expenses and other current assets on the Company’s consolidated balance sheets.
(3)
Included in Other accrued liabilities on the Company’s consolidated balance sheets.
v3.25.4
Restructuring and Other Charges (Tables)
 12 Months Ended
Dec. 31, 2025
Restructuring Charges [Abstract]  
Summary of Activity Related to Accrued Restructuring and Other Charges

The following table provides a summary of the activity related to accrued restructuring and other charges:

 

 

 

 

Employee
termination
charges

 

 

Lease contract
termination and
other charges

 

 

Total

(In thousands)

 

 

 

Balance as of December 31, 2022

 

$

1,912

 

$

—

 

$

1,912

Additions

 

 

3,834

 

 

631

 

 

4,465

Cash payments

 

 

(5,384)

 

 

(579)

 

 

(5,963)

Adjustments

 

 

(105)

 

 

(22)

 

 

(127)

Balance as of December 31, 2023

 

 

257

 

 

30

 

 

287

Additions

 

 

4,154

 

 

325

 

 

4,479

Cash payments

 

 

(3,722)

 

 

(86)

 

 

(3,808)

Adjustments

 

 

(25)

 

 

(269)

 

 

(294)

Balance as of December 31, 2024

 

 

664

 

 

—

 

 

664

Additions

 

 

7,550

 

 

214

 

 

7,764

Cash payments

 

 

(6,849)

 

 

(10)

 

 

(6,859)

Adjustments

 

 

20

 

 

(35)

 

 

(15)

Balance as of December 31, 2025

 

$

1,385

 

$

169

 

$

1,554
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Summary of Lease Cost and Supplemental Cash Flow Information

The components of lease cost were as follows:

 

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

(In Thousands)

 

 

 

Operating lease cost

 

$

12,393

 

$

12,424

 

$

12,586

Short-term lease cost

 

 

158

 

 

315

 

 

305

Total lease cost (1)

 

$

12,551

 

$

12,739

 

$

12,891

_______________________

(1)
Included in cost of revenue, sales and marketing, research and development and general and administration in the Company’s consolidated statement of operations.

Supplemental cash flow information related to leases was as follows:

 

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

(In Thousands)

 

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

 

Operating cash flows relating to operating leases

 

$

12,633

 

$

13,733

 

$

12,697

 

 

 

 

 

 

 

 

 

Lease liabilities arising from obtaining right-of-use assets:

 

 

 

 

 

 

 

 

 

Operating leases

 

$

18,996

 

$

1,273

 

$

6,987
Summary of Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases was as follows:

 

 

 

As of December 31,

 

 

2025

 

2024

Weighted Average Remaining Lease Term (in years)

 

 

 

 

Operating leases

 

7.7

 

4.1

 

 

 

 

Weighted Average Discount Rate

 

 

 

 

Operating leases

 

6.6%

 

6.1%
Schedule of Operating Lease Liability Maturities

As of December 31, 2025, maturities of operating lease liabilities were as follows (in thousands):

 

 

 

 

Operating Lease

2026

 

$

12,925

2027

 

 

11,898

2028

 

 

5,623

2029

 

 

4,793

2030

 

 

4,788

Thereafter

 

 

27,011

Total lease payments

 

 

67,038

Less imputed interest

 

 

(16,089)

Total

 

$

50,949
v3.25.4
The Company and Summary of Significant Accounting Policies (Narrative) (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Segment
Customer
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Significant Accounting Policies [Line Items]      
Equity investments $ 8,732 $ 8,381  
Subscription contracts, typical length Service contracts are generally for 30 days or 12 months in length, billed either monthly or annually and generally in advance.    
Shipping and handling costs $ 127,733 123,694 $ 127,778
Advertising and promotional expenses $ 19,500 23,300 28,900
Number of reportable segments | Segment 2    
Number of operating segments | Segment 2    
Limited Partnership Fund      
Significant Accounting Policies [Line Items]      
Equity investments $ 2,600 2,300 2,300
Limited Partnership Fund | Fair Value Measured at Net Asset Value Per Share      
Significant Accounting Policies [Line Items]      
Equity investments $ 2,600 $ 2,300  
Accounts Receivable | Customer Concentration Risk      
Significant Accounting Policies [Line Items]      
Number of customer | Customer 0    
Concentration risk, customer No other customers accounted for 10% or greater of the Company’s total accounts receivable.    
Accounts Receivable | Customer Concentration Risk | Minimum      
Significant Accounting Policies [Line Items]      
Concentration risk, percentage 10.00%    
Accounts Receivable | Best Buy Inc | Customer Concentration Risk      
Significant Accounting Policies [Line Items]      
Concentration risk, percentage 17.00% 19.00%  
Accounts Receivable | Amazon | Customer Concentration Risk      
Significant Accounting Policies [Line Items]      
Concentration risk, percentage 16.00% 19.00%  
Accounts Receivable | Wal-Mart Stores | Customer Concentration Risk      
Significant Accounting Policies [Line Items]      
Concentration risk, percentage 10.00%    
Shipping and Handling      
Significant Accounting Policies [Line Items]      
Shipping and handling costs $ 9,400 $ 9,500 $ 8,800
Foreign Exchange Forward | Maximum      
Significant Accounting Policies [Line Items]      
Derivative, term of contract (in months) 6 months    
v3.25.4
The Company and Summary of Significant Accounting Policies (Property and Equipment, Net Schedule of Estimated Useful Lives) (Details)
Dec. 31, 2025
Property, Plant and Equipment [Line Items]  
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember
Computer equipment  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 2 years
Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 5 years
Software | Minimum  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 2 years
Software | Maximum  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 5 years
Machinery and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 2 years
Machinery and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 3 years
v3.25.4
Revenue Recognition (Schedule of Remaining Performance Obligations) (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Performance obligations, amount $ 54,985
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Performance obligations, amount $ 50,726
Performance obligations, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Performance obligations, amount $ 2,355
Performance obligations, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2028-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Performance obligations, amount $ 1,904
Performance obligations, period
v3.25.4
Revenue Recognition (Schedule of Remaining Performance Obligations) (Details 1)
$ in Thousands
Dec. 31, 2025
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Performance obligations, amount $ 54,985
v3.25.4
Revenue Recognition (Narrative) (Details)
 12 Months Ended
Dec. 31, 2025
USD ($)
Segment
Region
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Revenue from Contract with Customer [Abstract]      
Capitalized contract costs $ 6,400,000 $ 6,300,000  
Capitalized contract costs, impairment 0 0 $ 0
Revenue deferred due to unsatisfied performance obligations 47,200,000 51,100,000 48,400,000
Revenue recognized for satisfaction of performance obligations 51,500,000 47,700,000 41,400,000
Contract with Customer, Liability Included In Beginning Balance, Revenue Recognized $ 30,400,000 $ 27,400,000 $ 21,500,000
Number of geographic regions in which the Company conducts business | Region 3    
Number of operating segments | Segment 2    
Number of reportable segments | Segment 2    
v3.25.4
Revenue Recognition (Schedule of Contract Balances) (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Accounts receivable, net $ 142,045 $ 156,210
Contract liabilities - current 26,904 30,261
Contract liabilities - non-current $ 4,206 $ 5,101
v3.25.4
Revenue Recognition (Schedule of Net Revenue Disaggregated by Geographical Region and Sales Channel) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Total net revenue [1] $ 699,621 $ 673,759 $ 740,840
Service provider      
Disaggregation of Revenue [Line Items]      
Total net revenue [2] 107,893 140,179 152,276
Non-service provider      
Disaggregation of Revenue [Line Items]      
Total net revenue 591,728 533,580 588,564
Enterprise      
Disaggregation of Revenue [Line Items]      
Total net revenue [1] 342,029 287,812 293,975
Enterprise | Service provider      
Disaggregation of Revenue [Line Items]      
Total net revenue [2] 1,127 977 579
Enterprise | Non-service provider      
Disaggregation of Revenue [Line Items]      
Total net revenue 340,902 286,835 293,396
Consumer      
Disaggregation of Revenue [Line Items]      
Total net revenue [1] 357,592 385,947 446,865
Consumer | Service provider      
Disaggregation of Revenue [Line Items]      
Total net revenue [2] 106,766 139,202 151,697
Consumer | Non-service provider      
Disaggregation of Revenue [Line Items]      
Total net revenue 250,826 246,745 295,168
Americas      
Disaggregation of Revenue [Line Items]      
Total net revenue [1] 476,020 456,040 504,349
Americas | Enterprise      
Disaggregation of Revenue [Line Items]      
Total net revenue [1] 176,791 144,336 146,045
Americas | Consumer      
Disaggregation of Revenue [Line Items]      
Total net revenue [1] 299,229 311,704 358,304
EMEA      
Disaggregation of Revenue [Line Items]      
Total net revenue [1],[3] 139,602 127,260 148,922
EMEA | Enterprise      
Disaggregation of Revenue [Line Items]      
Total net revenue [1] 106,195 88,782 102,839
EMEA | Consumer      
Disaggregation of Revenue [Line Items]      
Total net revenue [1] 33,407 38,478 4,608
APAC      
Disaggregation of Revenue [Line Items]      
Total net revenue [1] 83,999 90,459 87,569
APAC | Enterprise      
Disaggregation of Revenue [Line Items]      
Total net revenue [1] 59,043 54,694 45,091
APAC | Consumer      
Disaggregation of Revenue [Line Items]      
Total net revenue [1] $ 24,956 $ 35,765 $ 42,478
[1] No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
[2] Service provider net revenue in Consumer Segment included cable net revenue from retail channels. Prior-period amounts have been recast to conform to the current-period presentation.
[3] No individual country, other than disclosed above, represented more than 10% of the Company’s total net revenue in the periods presented.
v3.25.4
Revenue Recognition - Schedule of Net Revenue Disaggregated by Geographical Region and Sales Channel (Parenthetical) (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Maximum      
Disaggregation of Revenue [Line Items]      
Percentage of net revenue 10.00% 10.00% 10.00%
v3.25.4
Business Acquisition (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 16, 2025
Jun. 29, 2025
Dec. 31, 2025
Dec. 31, 2024
Business Acquisition [Line Items]        
Goodwill acquired     $ 8,743  
Net operating loss carryforwards     9,795 $ 1,604
Valuation allowance [1]     $ 107,876 $ 103,820
Exium        
Business Acquisition [Line Items]        
Total purchase consideration $ 12,600      
Intangible assets acquired 4,300      
Goodwill acquired 8,700      
Cash paid for acquisition   $ 12,100    
Acquisition holdback for potential purchase price adjustments and indemnification 500      
Post combination compensation expense $ 2,400      
Exium | Technology        
Business Acquisition [Line Items]        
Projected future cash flows percentage 28.00%      
Provisional amortization period 7 years      
Exium | Developed Technology        
Business Acquisition [Line Items]        
Intangible assets acquired $ 4,200      
[1] Valuation allowance is presented gross. The valuation allowance net of the federal tax effect was $103.5 million and $99.6 million for the years ended December 31, 2025 and 2024, respectively.
v3.25.4
Balance Sheet Components (Schedule of Amortized Cost and Estimated Fair Market Value of Investments Classified as Available-for-Sale Excluding Cash Equivalents) (Details) - USD ($)
Dec. 31, 2025
Dec. 31, 2024
Schedule Of Available For Sale Securities [Line Items]    
Amortized Cost $ 110,048,000 $ 119,199,000
Unrealized Gains 162,000 171,000
Unrealized Losses 0 0
Estimated Fair Value 110,210,000 119,370,000
U.S. Treasury Securities    
Schedule Of Available For Sale Securities [Line Items]    
Amortized Cost 110,048,000 119,199,000
Unrealized Gains 162,000 171,000
Unrealized Losses 0 0
Estimated Fair Value $ 110,210,000 $ 119,370,000
v3.25.4
Balance Sheet Components (Narrative) (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Balance Sheet Related Disclosures [Line Items]      
Accrued interest receivable $ 1,100,000 $ 800,000  
Unrealized losses on available-for-sale securities 0 0 $ 0
Other-than-temporary impairments 0 0 0
Unrealized Losses 0 0  
Provisions for excess and obsolete inventory 3,490,000 6,064,000 3,168,000
Amortization expense 1,174,000 0 257,000
Intangible assets, net 38,480,000    
Intangible assets impairment charges 0 0 1,071,000
Goodwill 45,022,000 36,279,000 36,279,000
Carrying value of equity investments without readily determinable fair values 6,100,000 6,100,000 6,100,000
Equity securities without readily determinable fair value, cumulative downward adjustments for price change and impairment loss 0    
Cumulative upward adjustments for price changes 300,000    
Equity investments 8,732,000 8,381,000  
Consumer Reporting Unit      
Balance Sheet Related Disclosures [Line Items]      
Intangible assets, net     0
Intangible assets impairment charges     1,100,000
Accumulated goodwill impairment charges 44,400,000    
Enterprise Reporting Unit      
Balance Sheet Related Disclosures [Line Items]      
Goodwill impairment charges 0 0 0
Accumulated goodwill impairment charges 0    
Software License      
Balance Sheet Related Disclosures [Line Items]      
Payments to acquire intangible assets 35,400,000    
Limited Partnership Fund      
Balance Sheet Related Disclosures [Line Items]      
Equity investments $ 2,600,000 $ 2,300,000 $ 2,300,000
v3.25.4
Balance Sheet Components (Schedule of Inventories) (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Balance Sheet Related Disclosures [Abstract]    
Raw materials $ 8,828 $ 13,439
Finished goods 167,628 149,100
Total $ 176,456 $ 162,539
v3.25.4
Balance Sheet Components (Schedule of Property and Equipment, Net) (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Total property and equipment, gross $ 103,976 $ 104,377
Accumulated depreciation (77,975) (93,089)
Total 26,001 11,288
Machinery and equipment    
Total property and equipment, gross 54,007 54,355
Furniture and fixtures    
Total property and equipment, gross 3,482 4,185
Leasehold improvements    
Total property and equipment, gross 21,475 15,843
Software    
Total property and equipment, gross 21,642 24,610
Computer equipment    
Total property and equipment, gross $ 3,370 $ 5,384
v3.25.4
Balance Sheet Components (Property and Equipment, Other Information) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Balance Sheet Related Disclosures [Abstract]      
Depreciation and amortization $ 6.8 $ 6.5 $ 6.9
v3.25.4
Balance Sheet Components (Schedule of Intangible Assets, Net) (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]      
Gross $ 39,654,000    
Accumulated Amortization (1,174,000)    
Accumulated Impairment 0 $ 0 $ 1,071,000
Net 38,480,000    
Technology      
Finite-Lived Intangible Assets [Line Items]      
Gross 39,594,000    
Accumulated Amortization (1,166,000)    
Accumulated Impairment 0    
Net 38,428,000    
Customer contracts and related relationships      
Finite-Lived Intangible Assets [Line Items]      
Gross 50,000    
Accumulated Amortization (3,000)    
Accumulated Impairment 0    
Net 47,000    
Other      
Finite-Lived Intangible Assets [Line Items]      
Gross 10,000    
Accumulated Amortization (5,000)    
Accumulated Impairment 0    
Net $ 5,000    
v3.25.4
Balance Sheet Components - (Schedule of Estimated Amortization Expense Related to Finite-lived Intangibles) (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Balance Sheet Related Disclosures [Abstract]  
2026 $ 5,666
2027 5,661
2028 5,661
2029 5,661
2030 5,661
Thereafter 10,170
Net $ 38,480
v3.25.4
Balance Sheet Components (Schedule of Goodwill) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Goodwill [Line Items]      
Goodwill $ 45,022 $ 36,279 $ 36,279
Goodwill from acquisition of Exium 8,743    
Enterprise      
Goodwill [Line Items]      
Goodwill 45,022 36,279 36,279
Goodwill from acquisition of Exium 8,743    
Consumer      
Goodwill [Line Items]      
Goodwill 0 $ 0 $ 0
Goodwill from acquisition of Exium $ 0    
v3.25.4
Balance Sheet Components (Schedule of Other Non-Current Assets) (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Balance Sheet Related Disclosures [Abstract]    
Non-current deferred income taxes $ 2,386 $ 2,332
Long-term investments 8,732 8,381
Restricted cash 2,102 2,107
Other 3,551 3,767
Total $ 16,771 $ 16,587
v3.25.4
Balance Sheet Components (Schedule of Other Current Accrued Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Balance Sheet Related Disclosures [Abstract]    
Current operating lease liabilities $ 9,933 $ 10,837
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Total Total
Sales and marketing $ 61,144 $ 59,129
Warranty obligations 5,928 5,192
Sales returns [1] 24,435 31,711
Freight and duty 4,518 4,979
Current deferred consideration [2] 8,355  
Other 29,715 36,230
Total $ 144,028 $ 148,078
[1] Inventory expected to be received from future sales returns amounted to $10.8 million and $15.1 million as of December 31, 2025 and 2024, respectively. Provisions to write down expected returned inventory to net realizable value amounted to $7.9 million and $9.0 million as of December 31, 2025 and 2024, respectively.
[2] It represented current deferred consideration related to the acquisition of a perpetual soft license as of December 31, 2025. Refer to “Intangible Assets, net” in Note 4, Balance Sheet Components above, for additional information.
v3.25.4
Balance Sheet Components (Schedule of Other Non-current Accrued Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Balance Sheet Related Disclosures [Abstract]    
Non-current deferred consideration [1] $ 34,921  
Non-current deferred revenue 4,206 $ 5,101
Other 908 6,601
Total $ 40,035 $ 11,702
[1] It represented non-current deferred consideration related to the acquisition of a perpetual soft license as of December 31, 2025. Refer to “Intangible Assets, net” in Note 4, Balance Sheet Components above, for additional information.
v3.25.4
Balance Sheet Components (Schedule of Other Accrued Liabilities) (Parentheticals) (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Balance Sheet Related Disclosures [Abstract]    
Inventory expected to be received from future sales returns $ 10.8 $ 15.1
Provisions to write down expected returned inventory to net realizable value $ 7.9 $ 9.0
v3.25.4
Derivative Financial Instruments (Narrative) (Details) - Foreign currency forward contracts
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Derivative_instrument
Dec. 31, 2024
Dec. 31, 2023
Derivatives Not Designated as Hedging Instruments      
Derivative [Line Items]      
Approximate number of derivatives per quarter | Derivative_instrument 11    
Notional amount | $ $ 3.0    
Cash Flow Hedges      
Derivative [Line Items]      
Approximate number of derivatives per quarter | Derivative_instrument 10    
Notional amount | $ $ 4.6    
Estimated term of reclassification from OCI to Income 12 months 12 months 12 months
Maximum      
Derivative [Line Items]      
Term of derivative contracts 6 months    
Maximum | Derivatives Not Designated as Hedging Instruments      
Derivative [Line Items]      
Term of derivative contracts 3 months    
Maximum | Cash Flow Hedges      
Derivative [Line Items]      
Term of derivative contracts 6 months    
v3.25.4
Derivative Financial Instruments (Schedule of Fair Values of the Company's Derivative Instruments and the Line Items on the Consolidated Balance Sheets) (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Derivatives, Fair Value [Line Items]    
Gross Amounts of recognized assets $ 315 $ 1,053
Gross Amounts of recognized liabilities 729 273
Prepaid expenses and other current assets | Derivatives not designated as hedging instruments    
Derivatives, Fair Value [Line Items]    
Gross Amounts of recognized assets 315 979
Prepaid expenses and other current assets | Derivatives designated as hedging instruments    
Derivatives, Fair Value [Line Items]    
Gross Amounts of recognized assets 0 74
Other accrued liabilities | Derivatives not designated as hedging instruments    
Derivatives, Fair Value [Line Items]    
Gross Amounts of recognized liabilities 699 254
Other accrued liabilities | Derivatives designated as hedging instruments    
Derivatives, Fair Value [Line Items]    
Gross Amounts of recognized liabilities $ 30 $ 19
v3.25.4
Net Income (Loss) Per Share (Schedule of Net Income (Loss) Per Share) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Numerator:      
Net income (loss) $ (17,923) $ 12,363 $ (104,767)
Denominator:      
Weighted average common shares - basic 28,607 28,905 29,355
Potentially dilutive common share equivalent 0 778 0
Weighted average common shares - dilutive 28,607 29,683 29,355
Basic net income (loss) per share $ (0.63) $ 0.43 $ (3.57)
Diluted net income (loss) per share $ (0.63) $ 0.42 $ (3.57)
Anti-dilutive employee stock-based awards, excluded 378 1,127 2,362
v3.25.4
Other Income, Net (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other Income and Expenses [Abstract]      
Interest income $ 11,586 $ 12,152 $ 6,842
Foreign currency transaction gain (loss), net 3,135 (3,434) (6)
Foreign currency contract gain (loss), net (2,228) 3,292 267
Gain (loss) on investments and other 4,883 662 1,036
Gain on litigation settlement 0 0 6,000
Total $ 17,376 $ 12,672 $ 14,139
v3.25.4
Income Taxes (Schedule of Income Before Income Taxes) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
United States $ (34,560) $ 10,634 $ (33,944)
International 17,784 14,254 14,808
Income (loss) before income taxes $ (16,776) $ 24,888 $ (19,136)
v3.25.4
Income Taxes (Schedule of Provision For Income Taxes) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current:      
U.S. Federal $ (510) $ 7,641 $ 358
State (1,079) 1,868 599
Foreign 2,787 2,286 2,423
Current, Total 1,198 11,795 3,380
Deferred:      
U.S. Federal 0 0 65,880
State (102) 0 15,629
Foreign 51 730 742
Deferred, Total (51) 730 82,251
Provision for (benefit from) income taxes, Amount $ 1,147 $ 12,525 $ 85,631
v3.25.4
Income Taxes - Schedule of Income Taxes Paid (Net of Refunds) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Paid, by Individual Jurisdiction [Abstract]      
Federal taxes paid $ 9,044    
State and local taxes paid 1,141    
Foreign Taxes paid 3,587    
Total income taxes paid $ 13,772 $ 7,738 $ 7,194
v3.25.4
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred Tax Assets:    
Accruals and allowances $ 18,085 $ 18,573
Net operating loss carryforwards 9,795 1,604
Stock-based compensation 1,633 1,416
Operating lease liability 10,092 5,146
Deferred revenue 2,068 1,889
Tax credit carryforwards 3,852 1,673
Acquired intangibles 12,463 14,814
Capitalized research and development 59,265 61,703
Depreciation and amortization 0 999
Other 4,606 4,161
Total deferred tax assets 121,859 111,978
Deferred Tax Liabilities:    
Depreciation and amortization (3,521) 0
Right of use asset (6,521) (4,412)
Other (1,555) (1,414)
Total deferred tax liabilities (11,597) (5,826)
Valuation Allowance [1] (107,876) (103,820)
Net deferred tax assets 2,386 2,332
Valuation allowance, net of federal tax $ 103,500 $ 99,600
[1] Valuation allowance is presented gross. The valuation allowance net of the federal tax effect was $103.5 million and $99.6 million for the years ended December 31, 2025 and 2024, respectively.
v3.25.4
Income Taxes (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Line Items]        
Valuation allowance [1] $ 107,876 $ 107,876 $ 103,820  
Valuation allowance increased   4,100    
Net current period other comprehensive income (loss)   $ 4 (10) $ (122)
Income tax examination, year under examination   2007 2008 2009 2010 2011 2012    
Possible reduction in liabilities for uncertain tax positions 1,400 $ 1,400    
Unrecognized tax benefits that would impact effective tax rate 4,400 4,400    
Unrecognized tax benefits, income tax penalties and interest accrued 2,200 2,200 $ 2,100  
Undistributed earnings 10,100 10,100    
Associated tax without consideration of foreign tax credit 2,100 $ 2,100    
Italian Supreme Court Rehearing        
Income Tax Disclosure [Line Items]        
Income tax examination, year under examination   2004 2005 2006    
US Federal        
Income Tax Disclosure [Line Items]        
Operating loss carryforwards 34,500 $ 34,500    
Tax credit carryforwards $ 900 $ 900    
Operating loss carryforwards expiration year   2035    
Tax credit carryforwards expiration year   2045    
ITALY        
Income Tax Disclosure [Line Items]        
Income tax examination, year under examination 2004 2005 2006 2004 2005 2006 2007 2008 2009 2010 2011 2012    
State of California        
Income Tax Disclosure [Line Items]        
Operating loss carryforwards $ 15,200 $ 15,200    
Tax credit carryforwards 2,900 $ 2,900    
Operating loss carryforwards expiration year   2044    
Other State        
Income Tax Disclosure [Line Items]        
Operating loss carryforwards $ 30,900 $ 30,900    
Operating loss carryforwards expiration year   2029    
[1] Valuation allowance is presented gross. The valuation allowance net of the federal tax effect was $103.5 million and $99.6 million for the years ended December 31, 2025 and 2024, respectively.
v3.25.4
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Effective Income Tax Rate Reconciliation [Line Items]      
Tax at federal statutory rate 21.00% 21.00% 21.00%
State and local income tax, net of federal (national) income tax effect 2.70% [1] 6.00% (3.10%)
Impact of international operations   (2.60%) 8.30%
Effect of changes in tax laws or rates enacted in the current period 0.00%    
GILTI (10.20%)    
FDII (1.00%)    
BEAT 0.00%    
Tax credits   (2.50%) 5.80%
R&D credit 6.90%    
Valuation allowance (12.50%) 26.70% (474.30%)
Recognition of previously unrecognized tax benefits   (0.80%) (0.30%)
Stock-based compensation (17.70%) 1.00% (2.30%)
Non-deductible license fees (2.60%) 1.50% (1.70%)
Section 162 (m) (1.30%)    
Other (3.10%)    
Changes in unrecognized tax benefits 9.90%    
Others (0.00%) 0.00% (0.90%)
Provision for income taxes (6.80%) 50.30% (447.50%)
Tax at federal statutory rate, Amount $ (3,523)    
State and local income tax, net of federal (national) income tax effect, Amount [1] (450)    
Effect of changes in tax laws or rates enacted in the current period, Amount 0    
GILTI, Amount 1,704    
FDII, Amount 166    
BEAT, Amount 0    
R&D credit, Amount (1,152)    
Changes in valuation allowances, Amount 2,102    
Stock based compensation, Amount 2,975    
Non-deductible license fees, Amount 430    
Section 162 (m), Amount 223    
Other, Amount 517    
Changes in unrecognized tax benefits, Amount (1,660)    
Other adjustments, Amount (3)    
Provision for (benefit from) income taxes, Amount $ 1,147 $ 12,525 $ 85,631
India      
Effective Income Tax Rate Reconciliation [Line Items]      
Impact of international operations (1.10%)    
Statutory tax rate difference between Ireland and United States $ 180    
Germany      
Effective Income Tax Rate Reconciliation [Line Items]      
Impact of international operations 1.30%    
UTP - IC commission (0.20%)    
Statutory tax rate difference between Ireland and United States $ (224)    
UTP - IC commission, Amount $ 40    
Romania      
Effective Income Tax Rate Reconciliation [Line Items]      
Withholdings (2.10%)    
Withholdings, Amount $ 351    
Other Foreign      
Effective Income Tax Rate Reconciliation [Line Items]      
Others 3.20%    
Other adjustments, Amount $ (529)    
[1] In 2025, state taxes in Philadelphia, Texas, North Carolina, California and Indiana accounted for the majority (over 50%) of the tax effect in this category
v3.25.4
Income Taxes (Schedule of Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Beginning balance $ 7,530 $ 8,618 $ 7,934
Additions based on tax positions related to the current year 604 372 426
Additions for tax positions of prior years 239 10 533
Settlements   (712)  
Reductions for tax positions of prior years   (31)  
Reductions due to lapse of applicable statutes (1,479) (799) (507)
Adjustments due to foreign exchange rate movement 403 72 232
Ending balance $ 7,297 $ 7,530 $ 8,618
v3.25.4
Commitments and Contingencies (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Loss Contingencies [Line Items]      
Non-cancelable purchase commitments with suppliers $ 55,300,000 $ 57,400,000  
Additional purchase orders beyond contractual termination periods 200,500,000    
Losses incurred related to purchase commitments 700,000 4,600,000 $ 3,500,000
Liabilities recorded for director and officer indemnification agreements 0    
Liabilities recorded for customers, distributors, and resellers indemnification agreements 0    
Litigation reserves, net $ (209,000) $ 89,012,000 $ (178,000)
46 to 60 Days      
Loss Contingencies [Line Items]      
Percentage of cancelable orders 50.00%    
46 to 60 Days | Minimum      
Loss Contingencies [Line Items]      
Required notice period prior to expected shipment date 46 days    
46 to 60 Days | Maximum      
Loss Contingencies [Line Items]      
Required notice period prior to expected shipment date 60 days    
31 to 45 Days      
Loss Contingencies [Line Items]      
Percentage of cancelable orders 25.00%    
31 to 45 Days | Minimum      
Loss Contingencies [Line Items]      
Required notice period prior to expected shipment date 31 days    
31 to 45 Days | Maximum      
Loss Contingencies [Line Items]      
Required notice period prior to expected shipment date 45 days    
v3.25.4
Commitments and Contingencies (Schedule of Non-cancellable Commitments Pertaining to Non-trade Activities (Details) - Non -Trade Activities
$ in Thousands
Dec. 31, 2025
USD ($)
Purchase Obligation Fiscal Year Maturity [Line Items]  
2026 $ 11,910
2027 14,111
2028 14,216
2029 3,030
2030 0
Total $ 43,267
v3.25.4
Commitments and Contingencies (Schedule of Changes in Warranty Obligations) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]      
Balance as of beginning of the period $ 5,192 $ 5,738 $ 6,320
Provision for warranty liability made 5,523 3,925 5,105
Settlements made (4,787) (4,471) (5,687)
Balance as of the end of the period $ 5,928 $ 5,192 $ 5,738
v3.25.4
Stockholders' Equity (Narrative) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Class of Stock [Line Items]      
Shares remaining authorized for repurchase (in shares) 1,500,000    
Stock repurchased and retired (in shares) 1,900,000 2,100,000 0
Cost of stock repurchased and retired $ 50,147 $ 33,750  
Cost of stock repurchased and retired excluding exercise tax 50,000 33,600  
Excise taxes on stock repurchases $ 100 $ 200  
RSU withholdings (in shares) 515,000 226,000 198,000
RSU withholdings $ 13,761 $ 3,409 $ 2,793
v3.25.4
Stockholders' Equity (Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Estimated tax benefit (provision)      
Beginning balance $ (7) $ 3 $ 125
Other comprehensive income (loss) before reclassifications 197 159 (540)
Less: Amount reclassified from accumulated other comprehensive income (loss) 193 169 (418)
Net current period other comprehensive income (loss) 4 (10) (122)
Ending balance (3) (7) 3
AOCI, after tax      
Beginning balance 541,066 535,495 620,855
Other comprehensive income (loss) before reclassifications (772) (531) 2,245
Less: Amount reclassified from accumulated other comprehensive income (loss) (727) (636) 1,574
Net current period other comprehensive income (loss) (45) 105 671
Ending balance 497,823 541,066 535,495
Unrealized gains (losses) on available-for-sale investments      
AOCI, before tax      
Beginning balance 169 126 (322)
Other comprehensive income (loss) before reclassifications (9) 43 448
Less: Amount reclassified from accumulated other comprehensive income (loss) 0 0 0
Net current period other comprehensive income (loss) (9) 43 448
Ending balance 160 169 126
Unrealized gains (losses) on derivatives      
AOCI, before tax      
Beginning balance 79 7 (338)
Other comprehensive income (loss) before reclassifications (960) (733) 2,337
Less: Amount reclassified from accumulated other comprehensive income (loss) (920) (805) 1,992
Net current period other comprehensive income (loss) (40) 72 345
Ending balance 39 79 7
AOCI      
AOCI, after tax      
Beginning balance 241 136 (535)
Ending balance $ 196 $ 241 $ 136
v3.25.4
Stockholders' Equity (Schedule of Reclassifications out of AOCI) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]      
Net revenue [1] $ 699,621 $ 673,759 $ 740,840
Cost of revenue (433,430) (477,832) (491,588)
Research and development (85,721) (81,082) (83,295)
Sales and marketing (127,733) (123,694) (127,778)
General and administrative (78,916) (63,468) (66,243)
Tax impact (1,147) (12,525) (85,631)
Amount Reclassified from AOCI      
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]      
Net revenue (1,181) (897) 2,337
Cost of revenue 2 0 (4)
Research and development 48 13 (33)
Sales and marketing 164 58 (246)
General and administrative 47 21 (62)
Total before tax (920) (805) 1,992
Tax impact 193 169 (418)
Total, net of tax $ (727) $ (636) $ 1,574
[1] No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
v3.25.4
Employee Benefit Plans (Narrative) (Details) - USD ($)
 1 Months Ended 12 Months Ended
May 31, 2025
Apr. 30, 2025
Feb. 29, 2024
Apr. 30, 2022
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Stock-based compensation         $ 29,715,000 $ 22,678,000 $ 17,938,000
Employee Stock Purchase Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Increase in number of shares of common stock authorized 1,500,000     1,000,000.0      
Number of shares reserved for future grant (in shares)         1,700,000    
Maximum percentage of compensation contributed by employees (in percentage)         10.00%    
Purchase percentage of stock at fair market value (in percentage)         85.00%    
Number of shares authorized (in shares)       3,000,000      
Stock-based compensation         $ 1,500,000 1,200,000 1,100,000
Shares purchased under ESPP         237,000    
Weighted average price of shares purchased under ESPP (in dollars per share)         $ 15.37    
2024 Inducement Equity Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Increase in number of shares of common stock authorized     2,000,000        
Additional shares available for issuance (in shares) 600,000            
Number of shares reserved for future grant (in shares)         300,000    
2025 Equity Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Increase in number of shares of common stock authorized   750,000          
Number of shares reserved for future grant (in shares)         2,300,000    
Maximum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Stock-based compensation cost capitalized in inventory         $ 800,000 800,000 800,000
Employee Stock Option              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Options, exercises in period, intrinsic value         0 400,000 0
Options, vested in period, total fair value         $ 0 0 700,000
Employee Stock Option | A2016 Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting term         4 years    
Performance Shares | 2016 Plan and 2024 Inducement Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting term         3 years    
Performance Shares | Target Shares Granted | Minimum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Percentage vest of performance shares         0.00%    
Performance Shares | Target Shares Granted | Maximum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Percentage vest of performance shares         200.00%    
Performance-Based RSU              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
RSU aggregate intrinsic value, vested         $ 6,800,000    
RSU fair value, vested         $ 3,900,000    
Performance-Based RSU | A2016 Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting term         3 years    
Performance-Based RSU | 2025 Equity Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting term         3 years    
Time-Based RSU              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
RSU aggregate intrinsic value, vested         $ 30,300,000 11,000,000 9,200,000
RSU fair value, vested         $ 21,000,000 $ 17,400,000 $ 17,800,000
Time-Based RSU | 2025 Equity Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting term         3 years    
Time-Based RSU | Minimum | A2016 Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting term         3 years    
Time-Based RSU | Maximum | A2016 Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting term         4 years    
Time-Based RSU | Target Shares Granted | 2025 Equity Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting term         12 months    
Time-Based RSU | Remaining Tranche | 2025 Equity Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting term         2 years    
Restricted Stock Units (RSUs)              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Total unrecognized compensation         $ 58,900,000    
Weighted-average period of recognition of stock based compensation         1 year 9 months 18 days    
v3.25.4
Employee Benefit Plans (Schedule of Stock Option Activity) (Details) - Employee Stock Option
shares in Thousands
 12 Months Ended
Dec. 31, 2025
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]  
Number of shares, beginning balance (in shares) | shares 475
Number of shares, exercised (in shares) | shares (198)
Number of shares, expired (in shares) | shares (176)
Number of shares, ending balance (in shares) | shares 101
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]  
Vested and expected to vest (in shares) | shares 101
Exercisable (in shares) | shares 101
Beginning balance (in dollars per share) | $ / shares $ 32.60
Exercised (in dollars per share) | $ / shares 26.56
Expired (in dollar per share) | $ / shares 39.07
Ending balance (in dollars per share) | $ / shares 33.24
Vested and expected to vest, weighted average exercise price (in dollars per share) | $ / shares 33.24
Exercisable, weighted average exercise price (in dollars per share) | $ / shares $ 33.24
Outstanding, Weighted Average Remaining Contractual Term 2 years 11 months 12 days
Vested and expected to vest, weighted average remaining contractual term 2 years 11 months 12 days
Exercisable, weighted average remaining contractual term 2 years 11 months 12 days
v3.25.4
Employee Benefit Plans (Schedule of Ranges of Outstanding And Exercisable Stock Options) (Details)
shares in Thousands
 12 Months Ended
Dec. 31, 2025
$ / shares
shares
$26.61 - $26.61  
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Exercise price, lower range (USD per share) $ 26.61
Exercise price, upper range (USD per share) $ 26.61
Number of outstanding options (in shares) | shares 51
Outstanding options, weighted-average remaining contractual life 3 years 6 months 18 days
Outstanding options, weighted- average exercise price per share (in dollars per share) $ 26.61
Number of exercisable options (in shares) | shares 51
Exercisable options, weighted-average exercise price (in dollars per share) $ 26.61
$38.32 - $38.32  
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Exercise price, lower range (USD per share) 38.32
Exercise price, upper range (USD per share) $ 38.32
Number of outstanding options (in shares) | shares 25
Outstanding options, weighted-average remaining contractual life 2 years 7 months 2 days
Outstanding options, weighted- average exercise price per share (in dollars per share) $ 38.32
Number of exercisable options (in shares) | shares 25
Exercisable options, weighted-average exercise price (in dollars per share) $ 38.32
$41.67 - $41.67  
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Exercise price, lower range (USD per share) 41.67
Exercise price, upper range (USD per share) $ 41.67
Number of outstanding options (in shares) | shares 25
Outstanding options, weighted-average remaining contractual life 2 years 25 days
Outstanding options, weighted- average exercise price per share (in dollars per share) $ 41.67
Number of exercisable options (in shares) | shares 25
Exercisable options, weighted-average exercise price (in dollars per share) $ 41.67
$26.61 - $41.67  
Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Exercise price, lower range (USD per share) 26.61
Exercise price, upper range (USD per share) $ 41.67
Number of outstanding options (in shares) | shares 101
Outstanding options, weighted-average remaining contractual life 2 years 11 months 12 days
Outstanding options, weighted- average exercise price per share (in dollars per share) $ 33.24
Number of exercisable options (in shares) | shares 101
Exercisable options, weighted-average exercise price (in dollars per share) $ 33.24
v3.25.4
Employee Benefit Plans (Schedule of Time-based RSU Activity) (Details) - Time-Based RSU
shares in Thousands
 12 Months Ended
Dec. 31, 2025
$ / shares
shares
Number of Shares  
Beginning balance (in shares) | shares 2,550
Granted (in shares) | shares 1,124
Vested (in shares) | shares (1,138)
Cancelled (in shares) | shares (242)
Ending balance (in shares) | shares 2,294
Weighted Average Grant Date Fair Value Per Share  
Beginning Balance (in dollars per share) | $ / shares $ 17.64
Granted (in dollars per share) | $ / shares 28.12
Vested (in dollars per share) | $ / shares 18.49
Cancelled (in dollars per share) | $ / shares 18.4
Ending Balance (in dollars per share) | $ / shares $ 22.27
v3.25.4
Employee Benefit Plans (Schedule of Performance Shares Activity) (Details) - Performance Shares - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Number of Shares      
Beginning balance (in shares) 655 417 430
Granted (in shares) 434 630 145
Vested (in shares) (250) 0 0
Cancelled (in shares) (34) (392) (158)
Ending balance (in shares) 805 655 417
Weighted Average Grant Date Fair Value Per Share      
Beginning Balance (in dollars per share) $ 20.93 $ 24.76 $ 29.38
Granted (in dollars per share) 44.59 21 14.44
Vested (in dollars per share) 20.85 0 0
Cancelled (in dollars per share) 22.13 25.12 27.85
Ending Balance (in dollars per share) $ 33.64 $ 20.93 $ 24.76
v3.25.4
Employee Benefit Plans (Schedule of Valuation and Expense Information) (Details) - ESPP
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected life (in years) 6 months 6 months 6 months
Risk-free interest rate 4.12% 5.01% 5.19%
Expected volatility 55.00% 48.10% 35.80%
Dividend yield 0.00% 0.00% 0.00%
v3.25.4
Employee Benefit Plans (Schedule of Total Stock-Based Compensation Expense Resulting from Stock Options, RSUs, Performance Shares and the ESPP) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation $ 29,715 $ 22,678 $ 17,938
Cost of revenue      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation 1,988 1,613 1,405
Research and development      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation 4,407 3,297 3,935
Sales and marketing      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation 8,183 6,182 5,336
General and administrative      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation $ 15,137 $ 11,586 $ 7,262
v3.25.4
Segment Information (Narrative) (Details)
 12 Months Ended
Dec. 31, 2025
Segment
Customer
Dec. 31, 2024
Customer
Dec. 31, 2023
Customer
Segment Reporting Information [Line Items]      
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration] srt:ChiefExecutiveOfficerMember    
Segment Reporting, CODM, Profit (Loss) Measure, How Used, Description Management measures the performance of each segment based on several metrics, including contribution income (loss). Segment contribution income (loss) includes all product line segment revenue less the related cost of sales, research and development and sales and marketing costs. Contribution income (loss) is used, in part, to evaluate the performance of, and allocate resources to, each of the segments. Certain operating expenses are not allocated to segments because they are separately managed at the corporate level.    
Number of operating segments 2    
Number of reportable segments 2    
Consumer | Net revenue      
Segment Reporting Information [Line Items]      
Number of customer | Customer 1 1 2
Consumer | Net revenue | Customer A | Customer Concentration Risk | Sales Revenue      
Segment Reporting Information [Line Items]      
Concentration risk, percentage 17.00% 16.00% 17.00%
Consumer | Net revenue | Customer B | Customer Concentration Risk | Sales Revenue      
Segment Reporting Information [Line Items]      
Concentration risk, percentage     12.00%
v3.25.4
Segment Information (Schedule of Reportable Segments and Reconciliation of Total Segment Contribution Income to Income (loss) Before Income Taxes) (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Net revenue [1] $ 699,621,000 $ 673,759,000 $ 740,840,000
Cost of revenue 430,271,000 476,219,000 489,926,000
Gross profit $ 269,350,000 $ 197,540,000 $ 250,914,000
Gross margin 38.50% 29.30% 33.90%
Operating expenses $ 183,941,000 $ 179,546,000 $ 184,604,000
Contribution income (loss) $ 85,409,000 $ 17,994,000 $ 66,310,000
Segment contribution margin 12.20% 2.70% 9.00%
Corporate and unallocated costs $ (79,465,000) $ (67,633,000) $ (76,179,000)
Amortization of intangible assets (1,174,000) 0 (257,000)
Stock-based compensation expense (29,715,000) (22,678,000) (17,938,000)
Intangibles impairment 0 0 (1,071,000)
Acquisition related expenses (1,234,000) 0 0
Restructuring and other charges (7,764,000) (4,479,000) (3,962,000)
Litigation reserves, net (209,000) 89,012,000 (178,000)
Other income, net 17,376,000 12,672,000 14,139,000
Income (loss) before income taxes (16,776,000) 24,888,000 (19,136,000)
Enterprise      
Segment Reporting Information [Line Items]      
Net revenue [1] 342,029,000 287,812,000 293,975,000
Cost of revenue 174,468,000 168,399,000 163,083,000
Gross profit $ 167,561,000 $ 119,413,000 $ 130,892,000
Gross margin 49.00% 41.50% 44.50%
Operating expenses $ 90,841,000 $ 75,408,000 $ 74,127,000
Contribution income (loss) $ 76,720,000 $ 44,005,000 $ 56,765,000
Segment contribution margin 22.40% 15.30% 19.30%
Consumer      
Segment Reporting Information [Line Items]      
Net revenue [1] $ 357,592,000 $ 385,947,000 $ 446,865,000
Cost of revenue 255,803,000 307,820,000 326,843,000
Gross profit $ 101,789,000 $ 78,127,000 $ 120,022,000
Gross margin 28.50% 20.20% 26.90%
Operating expenses $ 93,100,000 $ 104,138,000 $ 110,477,000
Contribution income (loss) $ 8,689,000 $ (26,011,000) $ 9,545,000
Segment contribution margin 2.40% (6.70%) 2.10%
[1] No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
v3.25.4
Segment Information (Schedule of Net Revenue by Geographic Areas) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]      
Total net revenue [1] $ 699,621 $ 673,759 $ 740,840
United States (U.S.)      
Segment Reporting Information [Line Items]      
Total net revenue 461,866 443,818 489,968
Americas (excluding U.S.)      
Segment Reporting Information [Line Items]      
Total net revenue 14,154 12,222 14,381
EMEA      
Segment Reporting Information [Line Items]      
Total net revenue [1],[2] 139,602 127,260 148,922
APAC      
Segment Reporting Information [Line Items]      
Total net revenue [2] $ 83,999 $ 90,459 $ 87,569
[1] No individual foreign country represented more than 10% of the Company’s total net revenue in the periods presented.
[2] No individual country, other than disclosed above, represented more than 10% of the Company’s total net revenue in the periods presented.
v3.25.4
Segment Information (Schedule of Net Revenue by Geographic Areas) (Parenthetical) (Details) - Maximum
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues From External Customers And Long Lived Assets [Line Items]      
Percentage of net revenue 10.00% 10.00% 10.00%
EMEA      
Revenues From External Customers And Long Lived Assets [Line Items]      
Percentage of net revenue 10.00%    
APAC      
Revenues From External Customers And Long Lived Assets [Line Items]      
Percentage of net revenue 10.00%    
v3.25.4
Segment Information (Schedule of Long-Lived Asset by Geographic Region) (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total $ 62,716 $ 39,335
United States (U.S.)    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total 42,836 19,057
Canada    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total 4,584 5,573
Americas (excluding U.S. and Canada)    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total 10 39
EMEA    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total 2,345 3,127
Singapore    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total 4,075 4,841
APAC    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total [1] $ 8,866 $ 6,698
[1] No individual country, other than disclosed above, represented more than 10% of the Company’s total long-lived assets in the periods presented.
v3.25.4
Segment Information (Schedule of Long-Lived Asset by Geographic Region) (Parenthetical) (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Maximum | APAC (excluding Singapore)    
Revenues From External Customers And Long Lived Assets [Line Items]    
Percentage of total long-lived assets owned 10.00% 10.00%
v3.25.4
Fair Value Measurements (Summary of Valuation of Company's Financial Instruments by Various Levels) (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value $ 220,517 $ 234,342
Liabilities measured at fair value 729 273
Quoted market prices in active markets (Level 1)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 109,992 113,919
Liabilities measured at fair value 0 0
Significant other observable inputs (Level 2)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 110,525 120,423
Liabilities measured at fair value 729 273
Cash Equivalents    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 107,070 111,043
Cash Equivalents | Quoted market prices in active markets (Level 1)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 107,070 111,043
Cash Equivalents | Significant other observable inputs (Level 2)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value 0 0
Trading securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [1] 2,922 2,876
Trading securities | Quoted market prices in active markets (Level 1)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [1] 2,922 2,876
Trading securities | Significant other observable inputs (Level 2)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [1] 0 0
Available-for-sale Investments | U.S. Treasury Securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [1] 110,210 119,370
Available-for-sale Investments | U.S. Treasury Securities | Quoted market prices in active markets (Level 1)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [1] 0 0
Available-for-sale Investments | U.S. Treasury Securities | Significant other observable inputs (Level 2)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [1] 110,210 119,370
Foreign currency forward contracts    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [2] 315 1,053
Liabilities measured at fair value [3] 729 273
Foreign currency forward contracts | Quoted market prices in active markets (Level 1)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [2] 0 0
Liabilities measured at fair value [3] 0 0
Foreign currency forward contracts | Significant other observable inputs (Level 2)    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Assets measured at fair value [2] 315 1,053
Liabilities measured at fair value [3] $ 729 $ 273
[1] Included in Short-term investments on the Company’s consolidated balance sheets.
[2] Included in Prepaid expenses and other current assets on the Company’s consolidated balance sheets
[3] Included in Other accrued liabilities on the Company’s consolidated balance sheets.
v3.25.4
Restructuring and Other Charges (Summary of Activity Related to Accrued Restructuring and Other Charges ) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]      
Beginning balance $ 664 $ 287 $ 1,912
Additions 7,764 4,479 4,465
Cash payments (6,859) (3,808) (5,963)
Adjustments (15) (294) (127)
Ending balance 1,554 664 287
Employee Termination Charges      
Restructuring Cost and Reserve [Line Items]      
Beginning balance 664 257 1,912
Additions 7,550 4,154 3,834
Cash payments (6,849) (3,722) (5,384)
Adjustments 20 (25) (105)
Ending balance 1,385 664 257
Lease Contract Termination and Other Charges      
Restructuring Cost and Reserve [Line Items]      
Beginning balance 0 30 0
Additions 214 325 631
Cash payments (10) (86) (579)
Adjustments (35) (269) (22)
Ending balance $ 169 $ 0 $ 30
v3.25.4
Leases (Narrative) (Details)
 12 Months Ended
Dec. 31, 2025
Lessee, Lease, Description [Line Items]  
Lease expiration date December 2037
Maximum  
Lessee, Lease, Description [Line Items]  
Operating lease, remaining lease term 12 years
Operating lease, renewal term option 5 years
Minimum  
Lessee, Lease, Description [Line Items]  
Operating lease, remaining lease term 1 year
v3.25.4
Leases (Lease Cost) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Operating lease cost $ 12,393 $ 12,424 $ 12,586
Short-term Lease, Cost 158 315 305
Total lease cost [1] $ 12,551 $ 12,739 $ 12,891
[1] Included in cost of revenue, sales and marketing, research and development and general and administration in the Company’s consolidated statement of operations.
v3.25.4
Leases (Supplemental Cash Flow Information) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows relating to operating leases $ 12,633 $ 13,733 $ 12,697
Lease liabilities arising from obtaining right-of-use assets:      
Operating leases $ 18,996 $ 1,273 $ 6,987
v3.25.4
Leases (Supplemental Balance Sheet Information) (Details)
Dec. 31, 2025
Dec. 31, 2024
Weighted Average Remaining Lease Term (in years)    
Operating leases 7 years 8 months 12 days 4 years 1 month 6 days
Weighted Average Discount Rate    
Operating leases 6.60% 6.10%
v3.25.4
Leases (Maturities of Operating Lease Liabilities - Topic 842) (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Leases [Abstract]  
2026 $ 12,925
2027 11,898
2028 5,623
2029 4,793
2030 4,788
Thereafter 27,011
Total lease payments 67,038
Less imputed interest (16,089)
Total $ 50,949
v3.25.4
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for doubtful accounts - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of year $ 507 $ 338 $ 397
Other 0 0 0
Additions 142 169 0
Deductions (183) 0 (59)
Balance at end of year $ 466 $ 507 $ 338