10-Q · April 22, 2026
Calix reported Q1 2026 revenue of $279.984M, up $59.742M (27.1%) versus Q1 2025, with gross margin expanding to 56.9% and operating income of $12.716M (versus an operating loss of $6.081M a year ago). Diluted EPS turned…
Earnings analysis · 10-Q
CALX earnings analysis
Filed July 21, 2026 · Our reading of the company's report
The latest report
Calix delivered a strong Q2 top-line result, with revenue of $293.329 million, up 21% year over year, and EPS of $0.47; operating margin improved to 7.4% through substantial operating leverage. However, gross margin…
Read full summary
Calix delivered a strong Q2 top-line result, with revenue of $293.329 million, up 21% year over year, and EPS of $0.47; operating margin improved to 7.4% through substantial operating leverage. However, gross margin fell 170 basis points to 54.6% as memory costs increased, and first-half cash conversion weakened as inventory and receivables grew. The filing provides no numerical outlook, but management expects further absolute-dollar investment in AI development while maintaining its view that existing $194.3 million liquidity can fund anticipated needs for at least 12 months.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.47
What stood out
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Revenue growth remained above 20%
Q2 revenue was $293.329 million, up $51.447 million, or 21%, from $241.882 million a year earlier. Appliance revenue rose 23% to $242.783 million and software and service revenue increased 16% to $50.546 million.
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EPS and operating margin accelerated
Diluted EPS was $0.47, versus $0.16 in Q1 2026, while operating margin expanded to 7.4% from approximately 4.5% sequentially. Operating leverage was aided by sales and marketing falling to 21% of revenue from 26% a year ago and G&A falling to 8% from 11%.
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Meaningful operating leverage year over year
Operating profit was approximately $21.849 million, calculated from $160.124 million of gross profit less $138.275 million of operating expenses. This compares with an approximately 0.2% operating margin in Q2 2025.
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Liquidity supports operating plan
Six-month operating cash flow remained positive at $31.1 million, and the company held $194.3 million of cash, cash equivalents and marketable securities at June 27, 2026. Management states this liquidity is sufficient for anticipated needs for at least the next 12 months.
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Large capital return program
The company repurchased 5.0 million shares for $240.2 million in the first half and had $94.1 million remaining under its authorization at June 27, 2026. The board added $100.0 million of repurchase capacity in April 2026.
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Platform adoption drove both revenue streams
Management attributed the $44.657 million appliance increase to adoption by new customers and expansion within existing accounts, while the $6.790 million software/services increase reflected CXP customers adding subscribers.
What to watch
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Memory inflation is compressing gross margin
Gross margin declined 170 basis points year over year to 54.6%, which management attributed primarily to higher memory-component costs. The updated risk discussion says AI-infrastructure build-outs are constraining memory supply and notes surcharges may recover only part of cost increases.
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New FCC router rule could constrain support
The filing adds a specific FCC regulatory-development risk: the FCC updated its Covered List on March 23, 2026, and affected hardware could face restrictions on critical patches or enhancements after early 2027 absent approvals or waivers. Securing approvals may require onshoring plans and higher unit costs.
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AI rollout carries regulatory and liability risk
AI-related regulation and execution risk is more prominent in the updated risk factors. The EU AI Act's substantive requirements are expected from August 2, 2026, and applicable fines can reach the greater of €15 million or 3% of global revenue.
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Inventory and receivables absorbed cash
Working-capital investment materially reduced operating cash conversion: inventory increased $46.7 million, receivables increased $37.0 million, and prepaid assets increased $10.1 million in the first half. These uses were only partly offset by a $50.9 million increase in accounts payable.
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Single customer represented 12% of Q2 sales
Customer concentration re-emerged during Q2, with one customer accounting for 12% of revenue. A delayed order, payment issue, or pricing concession from that account could affect revenue and working capital.
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High supplier commitments raise inventory risk
Outstanding non-cancelable purchase commitments were $338.300 million, including $260.037 million due within one year. If demand or product requirements shift, inventory and supplier-commitment valuation may be pressured.
Management's outlook
The 10-Q contains no explicit quantitative revenue or EPS guidance. Management expects sales and marketing and G&A spending to rise in absolute dollars but decline as a percentage of revenue, while R&D investment is expected to increase in the short term to accelerate AI functionality; it also expects near-term focus on the U.S. and Canada.
Earlier filings 4
10-Q · October 30, 2025
Calix reported strong Q3 results with revenue of $265,437 (in thousands) vs $200,945 (in thousands) in Q3 2024, driven by higher product and service demand. Gross profit expanded to $152,010 (in thousands) (57.3% gross…
10-Q · July 22, 2025
Calix reported quarterly revenue of $241.882 million (three months ended June 28, 2025), up from $198.139 million a year earlier, with gross profit rising to $136.295 million and operating income swinging to a $0.391…
10-K · February 21, 2025
Calix positions itself as a platform-first provider (Calix Cloud, Intelligent Access, Unlimited Subscriber) plus SmartLife managed services to enable broadband experience providers (BEPs) to monetize networks and reduce…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.