Jay Goldberg's questions to NETGEAR Inc (NTGR) leadership • Q2 2025
Question
Jay Goldberg from Seaport Research Partners asked for an update on the Home Networking business strategy, the key drivers of the record gross margin and its sustainability, and the progress of the company's software insourcing initiative.
Answer
CEO Charles (CJ) Prober described the Home Networking market as a 'dogfight' but noted NETGEAR is now better positioned with its expanded product portfolio, including the new Orbi 370. He also confirmed the software insourcing initiative is progressing well, leading to better quality and faster execution. CFO Bryan Murray attributed the record 37.8% gross margin to a strong NFB business mix and getting past higher-cost inventory, stating he expects margins to remain in the mid-to-high 30% range.