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- **Record Q3 Growth**: $265M revenue, 57.7% gross margin, and $27M free cash flow highlight Calix's strong execution.
- **AI-Driven Innovation**: Launch of Calix Agent Workforce with Google Cloud enables customers to automate subscriber growth and reduce churn.
- **BEAD Opportunity**: First orders received, with potential for multi-year revenue from government-funded broadband expansion.
- **Sustainable Growth**: 2026 guidance for 10-15% revenue growth (excluding BEAD), with AI investments driving long-term margin expansion.
- **Customer Expansion**: 20 new wins in Q3 and $141M current RPOs reflect broad-based demand across all customer segments.

**【CEO Summary Section】**
- Calix achieved record revenue of $265 million in Q3 2025, marking the fifth consecutive quarter of sequential growth. Gross margin reached a new high of 57.7%, the seventh straight quarter of margin improvement.
- The launch of the Calix Agent Workforce, powered by Agentic AI, enables customers to automate subscriber acquisition, revenue growth, and churn reduction. This platform is now integrated with Google Cloud for global scalability.
- 20 new customers adopted the Calix platform in Q3, with RPOs growing 2% sequentially to $35 million and current RPOs at $141 million, up 5% sequentially.
- Management emphasized the company's ability to balance growth with operational discipline, generating $27 million in free cash flow and ending the quarter with $340 million in cash.

**【CFO Financial Commentary】**
- Q3 2025 GAAP net income was $420 million, with Non-GAAP EPS of $1.08 exceeding expectations. Non-GAAP gross margin improved 90 basis points sequentially to 57.7%.
- Guidance for Q4 2025 revenue is $267 million to $273 million, reflecting a 2% sequential increase and 20% year-over-year growth. Gross margin is expected to remain stable, with OpEx investments in AI development and Connections event support.
- The company expects to return to its target financial model (100-200 basis points of annual gross margin expansion) by the end of 2026.

**【Q&A Highlights】**
- **Revenue Overperformance**: Driven by broad-based demand, competitive displacements, and customers winning new subscribers. Sequential growth will moderate in 2026 but remain within the 10-15% target range.
- **AI Strategy**: Accelerating AI agent development to automate customer workflows, with 725 exploratory agents created in the last 6 months. This will drive RPO growth as customers adopt AI-enabled solutions.
- **BEAD Program**: First orders received in Q3, with potential for lens-shaped spending over 3-5 years. Calix expects to benefit from fiber deployment and subscriber growth in underserved areas.
- **Customer Growth**: 20 new Q3 wins and 60+ year-to-date, with no single customer driving results. International expansion will accelerate in 2026 with sovereign data centers.
- **Gross Margin Outlook**: 2025 gross margin expansion exceeded the 100-200 basis point target, with 2026 growth expected at the lower end of the range due to higher R&D investments.

Calix, Inc. (CALX) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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Loss on Disposal of Assets

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Operating Income

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Net Income

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Preferred Stock Dividends

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Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

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CALX

CALX fundamentals

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