Apache CloudStack provides basic and advanced networking models. The basic model uses L3 isolation and security groups, while the advanced model enables L2 isolation, IP management, firewalls, load balancing, and other features. Network offerings define networks for users, specifying isolation type, services, and virtual router configuration. Virtual routers are virtual machines that act as DHCP servers and provide routing, firewalling, load balancing, and other services within CloudStack networks.