Netgear (NTGR) Returns to Growth in 2025 Behind Strategic Enterprise Expansion

Netgear Inc. (NASDAQ:NTGR) is one of the best small cap tech stocks with high upside potential. On February 4, Netgear achieved a turnaround in 2025, marking its first year of revenue growth since 2020 with a $25 million annual increase. Strategically, Netgear strengthened its enterprise division by acquiring two software teams and expanding its partner ecosystem to 524 members. These moves are part of a broader shift to increase the enterprise portion of the business to 65%, supported by the acquisition of a perpetual license for its Pro AV operating system to drive long-term margin expansion.

Despite these successes, the company faces external pressures, most notably a global memory shortage driven by AI data center demand. This shortage is expected to escalate costs and potentially squeeze gross margins in H2 2026. On the consumer side, revenue declined by 7.3%, hampered by a steep drop in sales to service providers and a post-holiday demand softening that was more severe than typical seasonal trends.

Netgear Inc. (NASDAQ:NTGR) is focusing on its high-growth Pro AV managed switches, expecting to reach a stable inventory position by the end of Q1 to better match market demand. To mitigate rising component costs, the company plans to implement price increases in the enterprise sector and reduce promotions for consumer products.

Netgear Inc. (NASDAQ:NTGR) provides networking technologies for businesses, homes, and service providers in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments: Enterprise and Consumer.

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