NETGEAR, INC. Income Taxes Disclosure

Note 8. Income Taxes

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:

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.

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.