10-Q · April 30, 2026
Extreme Networks reported strong Q3 2026 results, with revenue of $316.9 million, up 11.4% year-over-year, and diluted EPS of $0.26, surpassing estimates. Gross margins remained steady at 61.7% and SaaS ARR grew…
Earnings analysis · 10-K
EXTR earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
Extreme Networks delivered a clear fiscal 2026 recovery, with revenue up 12.6% to $1.28 billion, operating margin improving to 4.9%, and GAAP diluted EPS returning to $0.31 from a $0.06 loss. The strategic transition…
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Extreme Networks delivered a clear fiscal 2026 recovery, with revenue up 12.6% to $1.28 billion, operating margin improving to 4.9%, and GAAP diluted EPS returning to $0.31 from a $0.06 loss. The strategic transition toward AI-powered cloud networking is gaining traction, with SaaS ARR up 17.7% to $244.3 million and particularly strong growth in EMEA and APAC. However, operating cash flow declined to $123.2 million, the company funded $87.0 million of buybacks while carrying new $200.0 million revolver borrowings, and securities litigation has advanced to class certification, supporting a balanced outlook.
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
- $0.31
What stood out
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Revenue growth reaccelerated
Fiscal 2026 net revenue increased 12.6% to $1,283.6 million from $1,140.1 million in fiscal 2025 and $1,117.2 million in fiscal 2024. Product revenue accelerated 14.9% to $809.6 million, while subscription and support revenue rose 8.8% to $474.0 million.
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SaaS ARR growth supports platform shift
SaaS ARR reached $244.3 million at June 30, 2026, up 17.7% from $207.6 million a year earlier, primarily due to cloud network management adoption including Extreme Platform ONE, which became generally available in July 2025.
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Profitability returned
Profitability improved materially: gross margin was 61.5% versus 62.2% in fiscal 2025 and 56.5% in fiscal 2024, while operating margin improved to 4.9% from 1.5% and negative 5.8%, respectively. Net income was $42.1 million versus a $7.5 million loss in fiscal 2025 and an $86.0 million loss in fiscal 2024.
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EMEA and APAC drove growth
Growth was led by EMEA and APAC. EMEA revenue increased $82.7 million, or 18.3%, to $534.3 million, and APAC increased $32.0 million, or 34.9%, to $123.7 million; Americas grew only 4.8% to $625.5 million.
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Cash generation remained positive
Operating cash flow was $123.2 million in fiscal 2026, compared with $152.0 million in fiscal 2025 and $55.5 million in fiscal 2024. Cash declined approximately $20.0 million to $211.8 million after $27.9 million of investing outflows and $114.5 million of financing outflows.
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Aggressive buybacks alongside deleveraging
The company repurchased 5,377,808 shares for $87.0 million during fiscal 2026, including a $50.0 million accelerated share repurchase, and had $113.0 million remaining under its $200.0 million authorization. It also made $15.0 million of debt repayments and invested $27.9 million in property, equipment and capitalized software development.
What to watch
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Securities litigation reached class certification
The securities class action materially progressed: after the court denied the company’s motion to dismiss on March 3, 2026, it certified the class on July 16, 2026. The lawsuit seeks unspecified damages, and the company states that litigation could require significant financial and managerial resources.
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New revolver increases covenant risk
The post-year-end 2026 Credit Agreement creates new financing and covenant exposure. Extreme borrowed $200.0 million at closing, leaving $300.0 million available under the $500.0 million facility, and must maintain a minimum interest coverage ratio of 3.00 to 1.00 and maximum net leverage of 3.75 to 1.00 beginning with the quarter ending September 30, 2026.
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Inventory commitments and component costs
Supply-chain exposure remains material amid tariffs and component volatility. The company had non-cancelable commitments to purchase $112.5 million of inventory for fiscal 2027, while higher memory component costs already increased purchase price variances by $10.6 million in fiscal 2026; tariffs may also be increased on products manufactured in Taiwan, Vietnam, Thailand and the Philippines.
Management's outlook
The 10-K does not provide quantitative FY2027 revenue or EPS guidance; annual outlook was provided in the August 5, 2026 earnings press release and call.
Earlier filings 4
10-Q · January 29, 2026
Extreme Networks reported quarterly net revenues of $317,925 (in thousands) for the three months ended December 31, 2025, up $38,570 versus $279,355 in the prior-year quarter and modestly higher than the prior quarter.…
10-K · August 18, 2025
Extreme Networks, Inc. has made significant strides in integrating AI and cloud networking solutions, launching the Extreme Platform ONE, which aims to simplify complex network operations while maintaining a competitive…
10-Q · May 1, 2025
Extreme Networks delivered a tangible operational turnaround in the quarter ended March 31, 2025: net revenues increased to $284,505 (in thousands) from $211,036 a year ago and the company swung to operating income of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.