NETCAUTIOUS

NET Return on Equity (ROE) Analysis

-5.9%

Higher than 29% of Technology sector peers

Updated 72h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity.

Sector Performance

29th percentile

NET

-5.9%

Sector Median

6.8%

Sector Avg

-3.9%

Prior Period

-7.0%(May 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity.

A negative ROE of -5.9% means NET is currently losing money relative to the equity invested, which is poor performance. This value sits well below the sector median of 6.9% and places NET in the 28th percentile among its technology peers, indicating the majority of competitors are more profitable. The year-over-year change is not available, but quarter-over-quarter ROE improved by +15.7% (from -7.0% to -5.9%), showing a recent narrowing of losses. The combination of a deeply negative ROE with a modest quarter-over-quarter improvement points to continued high risk, as the company has not yet achieved profitability. This metric directly supports the overall CAUTIOUS verdict: the negative ROE reinforces caution, even as the recent trend suggests the situation may be stabilizing rather than deteriorating further.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about NET?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does NET's Return on Equity (ROE) compare to its sector?

NET's Return on Equity (ROE) of -5.9% compares to a Technology sector median of 6.8%, placing it in the 29th percentile.

Who are NET's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: ANSS (9.5%), QRVO (10.1%), ARM (10.9%), ACLS (11.6%), MNDY (12.8%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.