Executive Summary
Extreme Networks reported Q4 2025 revenue of $307.0 million, up 19.6% year over year and 7.9% quarter over quarter, supported by higher demand for software-driven networking solutions and a cloud-centric product mix. Gross profit rose 65.7% YoY to $189.1 million, yielding a gross margin of 61.6%. Despite this growth, operating income remained modestly negative at $(1.38) million and net income deteriorated to $(7.80) million, translating to an EPS of $(0.0588). The disparity between top-line strength and bottom-line profitability reflects ongoing investments in R&D and sales/marketing, plus non-cash or unusual items that are not fully captured in EBITDA. Cash flow remained robust, with net cash from operating activities of $92.99 million and free cash flow of $86.35 million, supporting a cash balance of $231.75 million and a net cash position near zero after liabilities. The balance sheet shows a substantial deferred revenue balance (current $325.1 million; non-current $292.4 million), indicative of a growing software/subscription component and long-duration bookings. Management commentary in the available data is limited, with no transcript provided, but the results point to continued emphasis on ExtremeCloud IQ and software-enabled networking as a growth vector, while profitability improvements require ongoing operating discipline and scale benefits.
Key Performance Indicators
QoQ: -113.26% | YoY:96.47%
QoQ: -325.65% | YoY:85.60%
QoQ: -326.15% | YoY:86.00%
Key Insights
Revenue: $307.003 million; YoY +19.62%, QoQ +7.91%; Gross Profit: $189.088 million; YoY +65.70%, QoQ +7.80%; Operating Income: $(1.376) million; YoY +96.47% and QoQ -113.26% (still marginally negative); EBITDA: $25.779 million; Net Income: $(7.803) million; YoY +85.60% (loss narrowed) and QoQ -325.65%; EPS: $(0.0588); YoY +86.00%, QoQ -326.15%....
Financial Highlights
Revenue: $307.003 million; YoY +19.62%, QoQ +7.91%; Gross Profit: $189.088 million; YoY +65.70%, QoQ +7.80%; Operating Income: $(1.376) million; YoY +96.47% and QoQ -113.26% (still marginally negative); EBITDA: $25.779 million; Net Income: $(7.803) million; YoY +85.60% (loss narrowed) and QoQ -325.65%; EPS: $(0.0588); YoY +86.00%, QoQ -326.15%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
307.00M |
19.62% |
7.91% |
| Gross Profit |
189.09M |
65.70% |
7.80% |
| Operating Income |
-1.38M |
96.47% |
-113.26% |
| Net Income |
-7.80M |
85.60% |
-325.65% |
| EPS |
-0.06 |
86.00% |
-326.15% |
Key Financial Ratios
operatingProfitMargin
-0.45%
operatingCashFlowPerShare
$0.7
freeCashFlowPerShare
$0.65
priceEarningsRatio
-76.38
Management Commentary
No earnings call transcript data provided. As a result, no management quotes or thematic highlights from a QQ4 2025 earnings call can be extracted or quoted in this report.
Forward Guidance
No explicit forward guidance is contained within the provided data. Given the results, investors should monitor: (1) the trajectory of cloud-based software/saaS revenue (e.g.,ExtremeCloud IQ) and the associated gross margin uplift; (2) operating expense discipline, including R&D and SG&A investments, to determine a path to sustained profitability; (3) the evolution of deferred revenue as an indicator of bookings quality and future revenue recognition; (4) working capital dynamics and cash flow conversion as the company scales. If Extreme can translate the current revenue growth into meaningful operating margin expansion and improved net income through cost containment and favorable mix, the stock could re-rate against software-defined networking peers. Factors to watch include ARR growth, customer wins in enterprise and service provider segments, product mix shifts toward high-margin software, and any supply-chain or competitive pressures that could impact timing of large enterprise deals.