Extreme Networks Reports Fourth Quarter and Fiscal Year 2025 Financial Results

Q4 revenue up 20% year-over-year, marking fifth consecutive quarter of sequential growth

SaaS ARR up 24% YoY

MORRISVILLE, N.C.–(BUSINESS WIRE)–Extreme Networks, Inc. (“Extreme”) (Nasdaq: EXTR) today released financial results for its fourth quarter and fiscal year ended June 30, 2025. Q4 revenue grew 20 percent year-over-year and SaaS ARR by 24 percent, year-over-year.

“We closed the fourth quarter with significant momentum, driven by sharp execution and growing demand for our solutions and services,” said Ed Meyercord, President and CEO of Extreme. “Five consecutive quarters of revenue growth and ARR jumping 24 percent year-over-year are clear indicators that our subscription model is gaining traction. Increased customer engagement in EMEA and APAC underscores our global momentum, highlighted by sizeable wins this quarter.”

Meyercord continued, “I’m proud of our team for putting Extreme at the forefront of AI innovation in networking. Platform ONE is the first generally available AI for networking platform that provides a fundamentally advanced customer experience achieved through a mix of conversational and agentic AI capabilities. With Extreme Platform ONE we’re intent to redefine enterprise networking with end-to-end visibility, AI-powered automation, and the industry’s most intuitive and simplified licensing model. We are well-positioned to accelerate growth, gain market share, and lead this next wave of AI-driven innovation.”

Kevin Rhodes, Executive Vice President and Chief Financial Officer stated, “Fourth quarter results were driven by continuous sequential growth in revenue and prudent expense management leading to a strong cash flow quarter. Heading into the new fiscal year, our outlook is for a re-acceleration of overall revenue growth on a full-year basis, which we expect to translate to higher earnings and cash flow.”

Fiscal Fourth Quarter Results:

• Revenue $307.0 million, up 19.6% year-over-year and up 7.9% quarter-over-quarter
• SaaS ARR $207.6 million, up 24.4% year-over-year and 13.0% quarter-over-quarter
• GAAP diluted loss per share $0.06, compared to GAAP diluted loss per share $0.42 last year and GAAP diluted EPS $0.03 last quarter
• Non-GAAP diluted EPS $0.25, compared to Non-GAAP diluted loss per share $0.08 last year and Non-GAAP diluted EPS $0.21 last quarter
• GAAP gross margin 61.6%, compared to 44.7% last year and 61.7% last quarter
• Non-GAAP gross margin 62.3%, compared to 45.4% last year and 62.3% last quarter
• GAAP operating loss margin 0.4%, compared to GAAP operating loss margin 19.1% last year and GAAP operating profit margin 3.6% last quarter
• Non-GAAP operating profit margin 15.2%, compared to Non-GAAP operating loss margin 4.6% last year and Non-GAAP operating profit margin 14.1% last quarter
• Shares repurchases amounted to $25.0 million during the quarter for a total of approximately 1.5 million shares

Fiscal Year 2025 Results:

• Revenue $1,140.1 million, up 2% year-over-year
• GAAP diluted loss per share $0.06, compared to GAAP diluted loss per share $0.66 last year
• Non-GAAP diluted EPS $0.84, compared to Non-GAAP diluted EPS $0.33 last year
• GAAP gross margin 62.2%, compared to GAAP gross margin 56.5% last year
• Non-GAAP gross margin 62.9%, compared to Non-GAAP gross margin 57.2% last year
• GAAP operating profit margin 1.5%, compared to GAAP operating loss margin 5.8% last year
• Non-GAAP operating profit margin 14.2%, compared to Non-GAAP operating profit margin 6.2% in the prior year

Liquidity:

• Q4 ending cash balance was $231.7 million, an increase of $46.2 million from the end of Q3 2025 and an increase of $75.0 million from the end of Q4 in the prior year.
• Q4 net cash was $51.7 million, an increase of $48.7 million from net cash of $3.0 million at the end of Q3 2025 and an increase of $85.0 million from net debt of $33.3 million at the end of Q4 in the prior year.

Recent Key Highlights:

• Extreme is now the first and only networking vendor to deliver conversational, multimodal, and agentic AI fully integrated into the networking experience with Extreme Platform ONE™, which was made generally available last month. Interest in the platform has been strong.
• Extreme Connect 2025 in Paris, France, was the company’s largest user event to date, attracting nearly 1,000 in-person attendees and thousands of livestream viewers. Attendees experienced live demos of Extreme Platform ONE in action, gained insights from top industry leaders—including executives from Microsoft and Intel—and participated in hands-on technical breakouts.
• Extreme continued to extend its footprint within the Japanese government with two new multimillion dollar deals. Extreme and partners will deploy Extreme Fabric from core to the branch using ExtremeCloud SD-WAN devices, managed from ExtremeCloud IQ. This can improve the efficiency of the government employees by making it convenient to securely connect to the network anywhere across the country.
• MetLife Stadium selected Extreme to displace a large incumbent provider and replace its legacy wireless infrastructure. This builds on MetLife’s existing Extreme wired network to deliver a modernized, high-density Wi-Fi 6E experience. The upgrade enhances overhead and under-seat wireless connectivity to support major events like NFL games, concerts, and high-profile international soccer games.
• ENAIRE, the fourth largest air navigation service provider in Europe, which provides services for more than 2.3 million aircraft movements across Spain each year, recently deployed Extreme’s wired solutions to improve connectivity and network performance for its mission-critical operations.
• Pinnacle Bank Arena, owned by the City of Lincoln, Nebraska, and managed by ASM Global, is home to year-round concerts and events – including the University of Nebraska men’s and women’s basketball teams – is now fully supported by Extreme’s wired and wireless solutions. The arena selected Extreme’s 6 GHz under-seat and overhead Wi-Fi solutions to power a more modern fan and operational experience, including digital ticketing, concessions, Audio Visual, and IP-based TV improvements.
• Hendrick Motorsports has deployed wired and wireless solutions from Extreme to upgrade and replace legacy hardware across its 150-acre campus. The leading professional race team will now have the improved coverage, connectivity, and security necessary for onsite team operations, and Extreme Fabric will deliver the security, flexibility, and visibility necessary for Hendrick’s separate R&D facilities.
• Surrey & Sussex Healthcare NHS Trust (“SASH”) is a network of healthcare facilities that supports a population of 740,000+ in southern England. It deployed Extreme to improve the Wi-Fi connectivity that is essential to delivering continuity of patient care. The healthcare network will also leverage ExtremeCloud IQ and Extreme Fabric for flexible, centralized and secure network management, enforcement and visualization.
• Extreme was named one of Newsweek’s World’s Greenest Companies in 2025, based on research of publicly available data provided by GIST Impact as available through March 1, 2025. Extreme was also a winner in the 2025 Newsweek AI Impact Awards for innovation of its internal Marketing and Sales AI Assistant, which has significantly boosted productivity for sales and marketing teams as well as Extreme partners.

Extreme uses the non-GAAP free cash flow metric as a measure of operating performance. Free cash flow represents GAAP net cash provided by (used in) operating activities, less purchases of property, equipment and capitalized software development costs. Extreme considers free cash flow to be useful information for management and investors regarding the amount of cash generated by the business after the purchases of property, equipment and capitalized software development costs, which can then be used to, among other things, invest in Extreme’s business, make strategic acquisitions, and strengthen the balance sheet. A limitation of the utility of this non-GAAP free cash flow metric as a measure of financial performance is that it does not represent the total increase or decrease in the Company’s cash balance for the period. The following table shows non-GAAP free cash flow calculation (in millions):

SaaS ARR: Extreme uses SaaS annual recurring revenue (“SaaS ARR”) to identify the annual recurring revenue of ExtremeCloud IQ and other subscription revenue, based on the annualized value of quarterly subscription revenue and term-based licenses. We believe that SaaS ARR is an important metric because it is driven by our ability to acquire new customers and to maintain and expand our relationships with existing customers. SaaS ARR should be viewed independently of revenue or deferred revenue that are accounted for under U.S. GAAP. SaaS ARR does not have a standardized meaning and therefore may not be comparable to similarly titled measures presented by other companies. SaaS ARR is not intended to be a replacement for forecasts of revenue.

Gross debt: Gross debt is defined as long-term debt and the current portion of long-term debt as shown on the balance sheet plus unamortized debt issuance costs, if any.

Net cash (debt): is defined as cash and cash equivalents minus gross debt, as shown in the table below (in millions):

Business Outlook:

Extreme’s business outlook is based on current expectations. The following statements are forward-looking, and actual results could differ materially based on various factors, including market conditions and the factors set forth under “Forward-Looking Statements” below.

For its first quarter fiscal 2026, ending September 30, 2025, the Company is targeting:

The following table shows the GAAP to non-GAAP reconciliation for Q1 FY’26 guidance:

For the full year fiscal 2026, ending June 30, 2026, the Company is targeting (in millions):

Conference Call:

Extreme will host a conference call at 8:00 a.m. Eastern (5:00 a.m. Pacific) today to review the fourth quarter and fiscal year 2025 results as well as the business outlook for the first quarter of fiscal 2026 ending September 30, 2025, including significant factors and assumptions underlying the targets noted above. The conference call will be available to the public through a live audio web broadcast via the internet at http://investor.extremenetworks.com and a replay of the call will be available on the website for at least 7 days following the call. To access the call, please go to this link (Registration Link) and you will be provided with dial in details. If you would like to participate in the Q&A, please register here: Q&A Registration Link. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

About Extreme:

Extreme Networks, Inc. (EXTR) is a leader in AI-driven cloud networking, focused on delivering simple and secure solutions that help businesses address challenges and enable connections among devices, applications, and users. We push the boundaries of technology, leveraging the powers of artificial intelligence, analytics, and automation. Tens of thousands of customers globally trust our AI-driven cloud networking solutions and industry-leading support to enable businesses to drive value, foster innovation, and overcome extreme challenges. For more information, visit Extreme’s website at https://www.extremenetworks.com/ or LinkedIn, YouTube, X (Formerly Twitter), Facebook or Instagram

Extreme Networks, ExtremeCloud, Extreme Platform ONE, and the Extreme Networks logo, are trademarks of Extreme Networks, Inc. or its subsidiaries in the United States and/or other countries. Other trademarks shown herein are the property of their respective owners.

Non-GAAP Financial Measures:

Extreme provides all financial information required in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company is providing with this press release non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, net cash (debt) and free cash flow. In preparing non-GAAP information, the Company has excluded, where applicable, the impact of share-based compensation, amortization of intangibles, restructuring and related charges, system transition costs, litigation charges, debt refinancing charges and the tax effect of non-GAAP adjustments. The Company believes that excluding these items provides both management and investors with additional insight into its current operations, the trends affecting the Company, the Company’s marketplace performance, and the Company’s ability to generate cash from operations. Please note the Company’s non-GAAP measures may be different than those used by other companies. The additional non-GAAP financial information the Company presents should be considered in conjunction with, and not as a substitute for, the Company’s GAAP financial information.

The Company has provided a non-GAAP reconciliation of the results for the periods presented in this release, which are adjusted to exclude certain items as indicated. These measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures for comparable financial information and understanding of the Company’s ongoing performance as a business. Extreme uses both GAAP and non-GAAP measures to evaluate and manage its operations.

Forward-Looking Statements:

Statements in this press release, including statements regarding those concerning (i) the Company’s business outlook and future operating metrics, and financial and operating results, (ii) global demand, (iii), adoption of the Company’s highly technical solutions, and (iv) the Company’s ability to benefit from the industry disruption from larger players in the enterprise market are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements speak only as of the date of this release. There are several important factors that could cause actual results and other future events to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, risks related to global macroeconomic and business trends; the Company’s failure to achieve targeted financial metrics; a highly competitive business environment for network switching equipment and cloud management of network devices; the Company’s effectiveness in controlling expenses; the possibility that the Company might experience delays in the development or introduction of new technology and products; customer response to the Company’s new technology and products; risks related to pending or future litigation; political and geopolitical factors, including the possible impact of tariffs and changes to U.S. tax regulations; and a dependency on third parties for certain components and for the manufacturing of the Company’s products.

For more information about factors that could cause actual results and other future events to differ materially from those suggested or indicated by such forward-looking statements, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2024, Quarterly Reports on Form 10-Q for the quarters ended September 30, 2024, December 31, 2024 and March 31, 2025 and other documents of the Company on file with the Securities and Exchange Commission (available at www.sec.gov). As a result of these risks and others, actual results could vary significantly from those anticipated in this press release, and the Company’s financial condition and results of operations could be materially adversely affected. Except as required under the U.S. federal securities laws and the rules and regulations of the Securities and Exchange Commission, Extreme disclaims any obligation to update any forward-looking statements after the date of this release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.

Contacts

Investor Relations

Stan Kovler

919/595-4196

[email protected]

Media Contact

Amy Aylward

603/952-5138

[email protected]

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