Revenue

9 Months Ended

Sep. 28, 2025

Revenue from Contract with Customer [Abstract]

Note 3. Revenue

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 summarizes estimated revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of September 28, 2025:


(In thousands)	Less than 1 year		1 to 2 years		Beyond 2 years		Total
Performance obligations	$	70,280	$	2,538	$	2,050	$	74,868

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. Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations. Contract liabilities are mainly classified as Deferred revenue on the unaudited condensed 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	September 28, 2025		December 31, 2024
Accounts receivable, net	Accounts receivable, net	$	159,880	$	156,210
Contract liabilities – current	Deferred revenue	$	27,938	$	30,261
Contract liabilities – non-current	Other non-current liabilities	$	4,526	$	5,101

The difference in the balances of the Company’s contract assets and liabilities as of September 28, 2025 and December 31, 2024, primarily results from the timing difference between the Company's performance and the customer's payment. During the nine months ended September 28, 2025, $35.2 million of revenue was deferred primarily due to unsatisfied performance obligations for service contracts, $38.1 million of revenue was recognized for the satisfaction of performance obligations and $26.6 million of this recognized revenue was included in the contract liability balance at the beginning of the period.

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

Disaggregation of Revenue

In the following tables, 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 tables also include reconciliations of the disaggregated revenue by reportable segment. As disclosed above, effective January 1, 2025, the Company operates and reports in three segments: Enterprise, Home Networking and Mobile. The prior-year segment financial information has been recast to conform to the current-year presentation. Sales and usage-based taxes are excluded from net revenue.


	Three Months Ended
	September 28, 2025								September 29, 2024
(In thousands)	Enterprise		Home Networking		Mobile		Total		Enterprise		Home Networking		Mobile		Total
Geographic regions (1) :
Americas	$	47,596	$	64,835	$	15,654	$	128,085	$	42,035	$	65,906	$	19,811	$	127,752
EMEA		28,011		5,153		3,772		36,936		22,975		6,295		3,528		32,798
APAC		15,231		2,659		1,650		19,540		13,520		5,539		3,245		22,304
Total	$	90,838	$	72,647	$	21,076	$	184,561	$	78,530	$	77,740	$	26,584	$	182,854
Sales channels:
Service provider	$	331	$	846	$	15,920	$	17,097	$	268	$	2,675	$	20,274	$	23,217
Non-service provider		90,507		71,801		5,156		167,464		78,262		75,065		6,310		159,637
Total	$	90,838	$	72,647	$	21,076	$	184,561	$	78,530	$	77,740	$	26,584	$	182,854


	Nine Months Ended
	September 28, 2025								September 29, 2024
(In thousands)	Enterprise		Home Networking		Mobile		Total		Enterprise		Home Networking		Mobile		Total
Geographic regions (1):
Americas	$	129,767	$	179,111	$	43,247	$	352,125	$	103,189	$	172,155	$	57,839	$	333,183
EMEA		79,298		13,052		11,090		103,440		64,549		15,216		11,575		91,340
APAC		43,585		9,374		8,629		61,588		39,282		17,294		10,241		66,817
Total	$	252,650	$	201,537	$	62,966	$	517,153	$	207,020	$	204,665	$	79,655	$	491,340
Sales channels:
Service provider	$	839	$	2,507	$	47,182	$	50,528	$	713	$	9,298	$	60,936	$	70,947
Non-service provider		251,811		199,030		15,784		466,625		206,307		195,367		18,719		420,393
Total	$	252,650	$	201,537	$	62,966	$	517,153	$	207,020	$	204,665	$	79,655	$	491,340

_____________________________

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

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-7

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

NETGEAR, INC. 10-Q