Extreme Networks reported its first quarter of fiscal year 2025 with revenue of $269.2 million, up 5% sequentially but down 23.8% year over year. The company posted a GAAP net loss of $10.5 million and an EPS of -$0.08, while Non-GAAP operating profit reached $33.5 million (12.4% of revenue) and Non-GAAP EPS of $0.17, beating the top end of previously guided ranges. Gross margin improved to 63.7% (+20 bps sequentially) driven by a favorable product mix and higher product revenue offsetting fixed costs. Recurring revenue remained a meaningful and visible portion of the business, totaling $107 million (38% of revenue), with subscription deferred revenue up 19% YoY to $282 million and total deferred revenue at $577 million (up 10% YoY). Net cash from operations was $18.6 million in the quarter, with free cash flow of $11.7 million; cash balance stood at $159.5 million and total debt was $236.1 million with net debt of $76.6 million. Management signaled ongoing quarterly growth in Q2 and reiterated a full-year revenue target of $1.117–$1.137 billion, accompanied by margin expansion and higher cash flow as the company grows revenue and improves profitability. CEO Ed Meyercord framed the quarter as the early stage of a broad networking market recovery, aided by higher new logo win rates, cloud-based operating models, and differentiated end-to-end solutions (campus data center to WAN) that support faster wins and higher stickiness. Key growth levers include the company’s campus fabric architecture, Cloud IQ platform, Wi‑Fi 7 deployment (AP5020), and the new AI-enabled co-pilot (AIOps) for proactive network management. The management team underscored market dynamics in the U.S. leading the recovery, with Europe (EMEA) showing improvement but facing government-budget timing lags, which may push some projects into the second half of fiscal year 2025. Overall, Extreme is transitioning its mix toward more predictable recurring revenue and higher margin contributions from software, services, and consumption-based offerings.