Extreme Networks' High-Quality Earnings Supported by Accrual Ratio and Unusual Items
ByAinvest
Thursday, Feb 5, 2026 2:06 pm ET1min read
EXTR--
Extreme Networks' (NASDAQ:EXTR) earnings are high quality, with a strong cash conversion rate and free cash flow exceeding reported profit. The company's accrual ratio of -2.04 indicates that its earnings understate its free cash flow. Unusual items, including non-cash charges, contributed to the high accrual ratio. Investors should consider the future profitability of Extreme Networks, which is expected to be strong based on analyst estimates.
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