Netgear Inc. (NTGR) stock plummeted 7.58% in after-hours trading on Wednesday, February 5, 2025, after the networking equipment maker reported disappointing fourth quarter 2024 results and provided a soft outlook for the first quarter of 2025.

For the fourth quarter, Netgear reported revenue of $182.4 million, down 3.3% year-over-year. The company posted a GAAP operating loss of $15.1 million compared to a $2.9 million operating loss in the prior year quarter. On a non-GAAP basis, Netgear reported an operating loss of $4.2 million versus operating income of $2.7 million a year ago.

The company's profitability was negatively impacted by higher operating expenses during the quarter. Netgear incurred restructuring charges of $0.7 million and litigation reserves of $3.6 million related to ongoing legal matters.

For the first quarter of 2025, Netgear expects revenue in the range of $145 million to $160 million. The company forecasts a GAAP operating margin between -16.4% to -13.4% and a non-GAAP operating margin of -10.0% to -7.0%.

The weak fourth quarter results and disappointing outlook for the first quarter appear to have spooked investors, leading to the sharp sell-off in Netgear's shares after the market closed on Wednesday.