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- **Revenue Growth Acceleration**: Q1 FY26 revenue up 15% YoY to $310M, driven by 20% YoY product revenue growth and 24% SaaS ARR expansion.
- **AI-Driven Differentiation**: Extreme Platform ONE adoption ahead of expectations, with service agent reducing IT task resolution time by 90%. WiFi 7 solutions win healthcare and government contracts.
- **Financial Resilience**: GAAP EPS $0.22 (29% YoY growth), EBITDA $45M (21% YoY). Price increases offset 100bps component cost impact, with gross margin recovery to 63%+ by FY26 end.
- **Market Expansion**: 21% YoY bookings growth, 36+ customers >$1M spend (29% YoY). MSP partnerships at 61, contributing 14% of new subscriptions.
- **Competitive Edge**: Extreme Fabric's subsecond convergence and cloud flexibility outperform Cisco/HPE, with 30%+ win rate in large deals.

**【CEO Summary Section】**
- **Revenue Growth**: Q1 FY26 revenue reached $310 million, up 15% YoY, driven by product revenue growth (20% YoY) and SaaS ARR expansion (24% YoY to $216 million). 
- **AI Innovation**: Extreme Platform ONE achieved early adoption, with service agent automation reducing IT task resolution time from hours to minutes. WiFi 7 solutions gained traction in healthcare, government, and venues.
- **Market Expansion**: Won major deals in Asia Pacific (government-wide network) and EMEA, with bookings up 21% YoY. MSP partnerships grew to 61, contributing 14% of new subscription bookings.
- **Competitive Position**: Differentiated by Extreme Fabric's subsecond convergence, cloud flexibility, and AI-driven networking. Secured 36+ customers spending >$1M, up 29% YoY.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP EPS $0.22 (29% YoY growth), Non-GAAP EPS exceeded expectations. Gross margin 61.3% (impacted by 100bps from component costs). EBITDA $45M (21% YoY growth). Free cash flow usage $21M due to one-time legal expenses.
- **Guidance**: Q2 FY26 revenue $309-315M, FY26 revenue $1.247-1.264B (10% YoY growth). SaaS ARR target low-20% YoY. Price increases (mid-single digits) to offset component costs, with gross margin recovery to 63%+ by end of FY26.
- **Liquidity**: $209M cash, positive net cash position. Shares repurchased $12M (577K shares).

**【Q&A Key Highlights】**
- **Gross Margin Challenges**: Component costs (memory, optics) up 100bps, mitigated by price increases. Gross margin expected to improve 100-200bps YoY. Platform ONE ASPs up 10-15%.
- **Competitive Dynamics**: Benefiting from Cisco partner program disruption and HPE-Juniper integration delays. Extreme's cloud flexibility and AI/automation outperform competitors.
- **Federal Impact**: Minimal impact from government shutdown; certifications open federal opportunities. MSP model growth driven by consumption-based billing.
- **AI Strategy**: AI Summit in NYC to showcase Agentic AI capabilities. Platform ONE bookings ahead of expectations, with full migration to platform by end of calendar year.

Extreme Networks, Inc. (EXTR) Q1 2026 Earnings Call Transcript

- **Revenue Growth Accelerates**: Q4 revenue up 20% YoY to $307M, driven by APAC wins (Japan judiciary deal) and EMEA recovery.
- **SaaS Momentum Strong**: SaaS ARR +24% YoY to $208M, fueled by Wi-Fi 7 adoption (30% mix) and Platform 1 trials.
- **AI Platform Breakthrough**: Extreme Platform 1 goes GA with 47-minute migrations, winning praise for multimodal AI and 6x faster deployment than Cisco.
- **Cash Flow Strength**: $75M free cash flow (highest since 2023), backing $0.25 EPS beat and $1.23B FY26 guidance.
- **Competitive Edge**: MSP program doubles to 53 partners, leveraging consumption billing and composable workspace for flexible growth.

**【CEO Summary Section】**
- Q4 revenue reached $307 million, up 20% YoY, driven by APAC (8-digit wins in Japan) and EMEA growth. SaaS ARR grew 24% YoY to $208 million.
- Extreme Platform 1 achieved GA in Q4, with early wins like West Suffolk NHS migrating in 47 minutes. Competitive win rates remain strong, displacing larger players with 6x faster deployment times.
- Major deals include MetLife Stadium (WiFi 6E), Pinnacle Bank Arena, and Qatar Energy. Government wins in Japan and U.K. (e.g., NHS) highlight mission-critical reliability.
- MSP program doubled to 53 partners YoY, offering consumption-based billing and composable workspace for flexible scaling.

**【CFO Financial Commentary】**
- Q4 GAAP EPS of $0.25 beat estimates, with 20% YoY revenue growth and 15.2% operating margin. Free cash flow hit $75 million (highest since 2023).
- SaaS deferred revenue rose 15% YoY to $308 million, backing 36% recurring revenue mix. Wi-Fi 7 mix reached 30%, driving wireless product growth.
- FY26 guidance: $1.228B-$1.238B revenue, 12.7%-14.5% operating margin, and $0.20-$0.23 EPS for Q1.

**【Q&A Key Highlights】**
- **EMEA/APAC Growth Sustainability**: CEO cites Japan government wins and EMEA stabilization as drivers, with German government security mandates on the horizon.
- **Platform 1 Impact**: Early trials show 20%+ ARR growth potential; full migration expected in H2. Customers praise AI's ability to resolve issues in minutes vs. hours.
- **Competitive Positioning**: MSPs prefer Extreme's automation and multi-tenancy over Cisco. Juniper/HP merger may create channel opportunities, but direct wins (e.g., 8x faster deployment) remain core differentiator.
- **Tariff Impact**: Minimal pull-forward demand as product categories remain tariff-exempt.


Extreme Networks, Inc. (EXTR) Q4 2025 Earnings Call Transcript

- **Revenue Surge**: Q3 up 35% YoY to $284.5M, driven by 67% product growth and 13.4% SaaS ARR expansion.
- **AI Platform Momentum**: Platform ONE secures 100+ customers, positioning Extreme as leader in AI-driven networking.
- **Competitive Dominance**: 35%+ win rate vs. Cisco, HP, Juniper, with 40+ $1M+ deals Q3.
- **Tariff Mitigation**: $1.5M Q4 impact absorbed, no price hikes; long-term risk minimal if trade deals proceed.
- **Cash Flow Strength**: 29-day improvement in cash conversion cycle, $30M Q3 operating cash flow.

**【CEO Summary Section】**
- Q3 revenue reached $284.5M, up 35% YoY, driven by 67% product revenue growth and 13.4% SaaS ARR expansion. Americas and EMEA regions saw strong growth, with sequential product bookings up 21%.
- Highlighted wins against Cisco, HP, and Juniper in key accounts like City of Everett and West London NHS, leveraging Extreme Fabric's sub-second convergence and micro-segmentation.
- Platform ONE, the industry's first AI-driven networking solution, achieved 100+ customer subscriptions and is expected to accelerate SaaS growth.
- Q4 guidance: $295M-$305M revenue, 61.8%-62.8% gross margin, and $0.21-$0.25 EPS.

**【CFO Financial Commentary】**
- Gross margin improved 120bps YoY to 62.3%, driven by product mix optimization and lower freight costs. Operating expenses were controlled at $137.3M, enabling 14.1% operating margin.
- Deferred recurring revenue grew 7% YoY to $578M, reflecting strong subscription momentum. Cash flow improved by 29 days in the quarter, with $30M operating cash flow.
- Tariff impact estimated at $1.5M in Q4, with no material demand-side effects seen to date.

**【Q&A Key Takeaways】**
- **Tariff Strategy**: Company absorbed $1.5M Q4 tariff impact without price hikes, prioritizing customer retention. Management expects minimal long-term impact if trade deals are finalized.
- **Competitive Edge**: Extreme's Fabric technology outperforms Cisco's complexity, with 40+ $1M+ bookings Q3 vs. 36 prior. Platform ONE's AI-driven automation is gaining traction in education, healthcare, and manufacturing.
- **Wi-Fi 7 Adoption**: Early wins in mission-critical use cases (e.g., Six Flags ride monitoring), with adoption rates in line with expectations.
- **Government Growth**: New federal certifications open opportunities, though current federal revenue remains <5% of total.
- **Inventory Management**: Reduced finished goods inventory while maintaining ample supply, mitigating tariff risks.

Extreme Networks (EXTR)-30 Apr 25-2025 Q3 Earnings call transcript

- **Revenue Resilience**: Q2 revenue up 4% sequentially, driven by product sales and 37% recurring revenue growth. Q3 guidance reflects better-than-seasonal trends.
- **AI Platform Momentum**: Platform ONE gains traction with 37 MSP partners, doubling bookings QoQ. CRN named it 2024's hottest networking product.
- **Margin Expansion**: Gross margin stable at 63.4%, with operating expenses down $2M QoQ. Free cash flow of $16M signals improving liquidity.
- **Wi-Fi 7 Leadership**: 12% of APs sold are Wi-Fi 7, aligning with Gartner's 50% market share forecast by 2027. Extreme leads in enterprise Wi-Fi 7 adoption.
- **Share Gains Outlook**: Full-year revenue raised to $1.12B-$1.14B, reflecting confidence in EMEA recovery and Platform ONE upsell opportunities.

**【CEO Summary Section】**
- Q2 revenue of $279.4M grew 4% sequentially, driven by 6% product sales growth and 37% recurring revenue. Product bookings hit a 5-quarter high, with 36 customers spending over $1M (up from 27 last quarter). EMEA revenue grew both sequentially and YoY, while Americas faced K-12 seasonality. ExtremeCloud Universal Zero Trust Network Access (UZTNA) gained momentum, with a new aerospace customer adopting the solution.
- Platform ONE, a unified AI-driven networking and security platform, received strong customer feedback and was named one of 2024's hottest networking products by CRN. The company expects Platform ONE to drive productivity gains and sticky upsell opportunities through its consumption-based billing model.
- Guidance for Q3 2025: Revenue $276M-$284M, gross margin 62%-63%, EPS $0.16-$0.20. Full-year revenue outlook raised to $1.12B-$1.14B, reflecting confidence in market share gains and margin expansion.

**【CFO Financial Commentary】**
- Q2 GAAP net income was $42M, with non-GAAP EPS of $0.21 (up 24% QoQ). Gross margin of 63.4% was stable sequentially but up 90bps YoY due to cost improvements. Operating expenses declined $2M QoQ to $136M, driven by sales productivity and new commercial models. Free cash flow of $16M reflected higher revenue and profitability.
- Subscription deferred revenue grew 18% YoY to $290M, with total deferred revenue at $589M. The company expects subscription and support revenue to grow sequentially in H2, offsetting low product growth in H2 2024. Inventory improved by $11M QoQ, targeting $100M by year-end.

**【Q&A Key Highlights】**
- **U.S. Market Weakness**: K-12 seasonality and German government delays weighed on Americas and EMEA. EMEA recovery expected post-German elections. FX hedging mitigated currency impacts.
- **Wi-Fi 7 Adoption**: 12% of APs sold are Wi-Fi 7, aligning with Gartner's 50% APs sold as Wi-Fi 7 by 2027. Extreme was first to market with Wi-Fi 7, positioning for enterprise adoption.
- **Platform ONE Business Model**: Platform ONE offers 100% attach rate for new deals, with incremental revenue from enhanced AI-driven features. MSP pilot bookings doubled QoQ, with 37 partners leveraging consumption-based billing.
- **Service Provider Growth**: Private subscription offers for Verizon and Ericsson are in early stages, with potential to drive high-margin recurring revenue in H2 2026.
- **Industry Growth**: CEO expects mid-single-digit industry growth, with Extreme targeting high-single-digit to double-digit share gains through differentiated AI and cloud solutions.

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