NASDAQ$EXTR

Extreme Networks Inc · Q2 2025 earnings

Q2 2025 earnings · · Before market open · Investor relations

Briefing

Sequential revenue growth and earnings above guidance were driven by consistent execution.

Extreme Networks reported Q2 fiscal year 2025 financial results, demonstrating continued market recovery in enterprise networking and marking the third consecutive quarter of sequential revenue growth. The company's competitive win rates improved, especially with larger enterprise customers, due to the simplicity and feature differentiation of their cloud networking platform and enterprise campus fabric solution.

  • Revenue reached $279.4 million, a 5.7% decrease year-over-year but a 3.8% increase quarter-over-quarter.
  • SaaS ARR was $181.1 million, up 14.4% year-over-year and 4.0% quarter-over-quarter.
  • GAAP diluted EPS was $0.06, compared to $0.03 last year.
  • Non-GAAP diluted EPS was $0.21, compared to $0.24 last year.

Headline financials

Total Revenue

$279M

Previous: $296M-5.7%
EPS (adj)

$0.21

Previous: $0.03+600.0%
SaaS ARR

$181M

Previous: $158M+14.7%
GAAP Gross Margin

62.7%

Previous: 61.9%+1.3%
Non-GAAP Gross Margin

63.4%

Previous: 62.5%+1.4%
GAAP Operating Margin

4.5%

Previous: 3.5%+28.6%
Non-GAAP Operating Margin

14.7%

Previous: 14.8%-0.7%
Net Cash

-$14.7M

No prior period
Capital Expenditures

-$12.3M

Previous: -$9.96M-23.8%
Net Income

$7.4M

Previous: $3.99M+85.6%
Operating Income

$12.7M

Previous: $10.3M+22.8%
Gross Profit

$175M

Previous: $183M-4.5%
R&D Expense

$54.9M

Previous: $52.8M+3.9%
Stock-Based Comp

$21.5M

Previous: $21M+2.4%

Revenue & EPS history

Extreme Networks · Revenue · Quarterly

$279M

Q2 2025-5.7%vs Q2 2024
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Extreme Networks · $253M total across 1 segment · Q1 2024

  • Product
    $253M+22.9%

Forward guidance

For its third quarter of fiscal 2025, ending March 31, 2025, the Company is targeting revenue between $276.0 million and $284.0 million.

Tailwinds

  • Total net revenue between $276.0 million and $284.0 million.
  • Gross margin between 61.2% and 62.2%.
  • Operating margin between 0.0% and 2.1%.
  • Earnings (Loss) per share between ($0.04) and $0.00.
  • Non-GAAP earnings per share between $0.16 and $0.20.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

+0.2%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+3.9%

Avg return

30 days after

61%

39 / 64 earnings

Positive

+28.2%

Q3 2026

Best reaction

-30.4%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+28.2%+33.9%+55.5%
Q2 2026+2.4%-0.9%-6.9%
Q1 2026-15.4%-11.7%-17.7%
Q3 2025+4.9%+7.8%+19.1%
Q2 2025-3.0%-6.3%-4.9%
Q1 2025+5.0%+6.9%+16.7%
Q4 2024+3.6%+2.7%+5.8%
Q3 2024+2.0%-2.1%-0.4%
Q2 2024-20.6%-25.9%-25.1%
Q1 2024-17.1%-17.6%-20.6%
Q4 2023+6.6%+9.6%-2.5%
Q3 2023+8.4%+10.8%+19.4%
Q2 2023-9.0%-9.4%-2.4%
Q1 2023+13.8%+16.4%+29.4%
Q4 2022+17.4%+16.7%+28.6%
Q3 2022-13.0%-12.1%-10.9%
Q2 2022-1.9%+1.5%-2.5%
Q1 2022+15.5%+11.5%+30.6%
Q4 2021+14.7%+13.5%+12.6%
Q3 2021+16.8%+10.3%+11.3%
Q2 2021+1.7%-3.6%-6.6%
Q1 2021-5.1%-16.3%+22.0%
Q4 2020+4.6%+1.3%-14.5%
Q3 2020-1.5%-13.9%+36.8%
Q2 2020-15.8%-19.3%-30.7%
Q1 2020-14.9%-13.6%-7.1%
Q4 2019+13.7%+10.2%-9.2%
Q3 2019-20.1%-17.0%-29.6%
Q2 2019+9.0%+7.7%+21.1%
Q1 2019+14.7%+11.6%+12.1%
Q4 2018-30.4%-29.1%-33.1%
Q3 2018-23.5%-26.7%-24.3%
Q2 2018-13.5%-21.8%-8.1%
Q1 2018+0.6%-4.7%+10.1%
Q4 2017+20.4%+23.8%+30.7%
Q3 2017+11.1%+19.7%+33.2%
Q2 2017+0.0%+0.9%+11.2%
Q1 2017+2.9%+2.4%+1.9%
Q4 2016+0.8%+4.2%+1.3%
Q3 2016+5.7%
Q2 2016-29.6%
Q1 2016+1.4%
Q4 2015+21.5%
Q3 2015-0.8%
Q2 2015+12.6%
Q1 2015+15.2%
Q4 2014-0.8%
Q3 2014-29.0%
Q2 2014-16.3%
Q1 2014+12.0%
Q4 2013-4.8%
Q3 2013-4.6%
Q2 2013+0.8%
Q1 2013+8.0%
Q4 2012+0.3%
Q3 2011-0.8%
Q3 2012+0.3%
Q2 2011+2.2%
Q2 2012+0.9%
Q1 2012+2.4%
Q1 2011+2.4%
Q4 2011+2.4%
Q4 2010-2.3%
Q3 2010+0.3%

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