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Extreme Networks(EXTR) - 2025 Q3 - Quarterly Results
EXTRExtreme Networks(EXTR)2025-04-30 11:14

Financial Performance - Total revenue for Q3 2025 was 285million,representingayear−over−yearincreaseof34.8285 million, representing a year-over-year increase of 34.8% and a quarter-over-quarter increase of 1.8%[5] - GAAP diluted EPS was 0.03, a significant improvement from a loss of 0.50pershareinthesamequarterlastyear[5]−Non−GAAPdilutedEPSwas0.50 per share in the same quarter last year[5] - Non-GAAP diluted EPS was 0.21, compared to a loss of 0.19persharelastyear[5]−GAAPgrossmarginimprovedto61.70.19 per share last year[5] - GAAP gross margin improved to 61.7%, up from 56.8% last year[8] - Non-GAAP operating profit margin was 14.1%, compared to a loss margin of 12.2% last year[8] - Operating income for Q3 2025 was 10.4 million, a significant recovery from an operating loss of 62.5millioninthesamequarterlastyear[24]−NetincomeforQ32025was62.5 million in the same quarter last year[24] - Net income for Q3 2025 was 3.5 million, compared to a net loss of 64.4millioninQ32024[24]−GAAPrevenuesforthethreemonthsendedMarch31,2025,were64.4 million in Q3 2024[24] - GAAP revenues for the three months ended March 31, 2025, were 284,505 thousand, compared to 211,036thousandforthesameperiodin2024,representingayear−over−yearincreaseof34.7211,036 thousand for the same period in 2024, representing a year-over-year increase of 34.7%[43] - GAAP operating income for the three months ended March 31, 2025, was 10,377 thousand, compared to a loss of 62,469thousandinthesameperiodof2024,indicatingasignificantturnaround[43]−GAAPnetincomeforthethreemonthsendedMarch31,2025,was62,469 thousand in the same period of 2024, indicating a significant turnaround[43] - GAAP net income for the three months ended March 31, 2025, was 3,458 thousand, compared to a loss of 64,425thousandinthesameperiodof2024[44]RevenueBreakdown−SaaSARRreached64,425 thousand in the same period of 2024[44] Revenue Breakdown - SaaS ARR reached 184 million, up 13.4% year-over-year and up 1.5% quarter-over-quarter[5] - Total net revenues for Q3 2025 reached 284.5million,a35284.5 million, a 35% increase from 211.0 million in Q3 2024[24] - Product revenues increased to 178.1million,up67178.1 million, up 67% from 106.4 million year-over-year[24] - Gross profit for Q3 2025 was 175.4million,comparedto175.4 million, compared to 119.9 million in Q3 2024, reflecting a gross margin improvement[24] - Non-GAAP gross profit for the three months ended March 31, 2025, was 177,358thousand,withanon−GAAPgrossmarginof62.3177,358 thousand, with a non-GAAP gross margin of 62.3%, up from 57.6% in the same period of 2024[43] Cash Flow and Assets - The company generated net cash flow from operations of 30 million and had free cash flow of 24.2millioninQ3[8]−Cashandcashequivalentsincreasedto24.2 million in Q3[8] - Cash and cash equivalents increased to 185.5 million as of March 31, 2025, up from 156.7millionattheendofJune2024[22]−Thecompanyreportedanetcashprovidedbyoperatingactivitiesof156.7 million at the end of June 2024[22] - The company reported a net cash provided by operating activities of 70.1 million for the nine months ended March 31, 2025, compared to 40.0millionforthesameperiodlastyear[26]−Thecompanyhasatotalof40.0 million for the same period last year[26] - The company has a total of 1.07 billion in assets as of March 31, 2025, compared to 1.04billionasofJune30,2024[22]FutureGuidance−ForQ42025,thecompanytargetstotalnetrevenuebetween1.04 billion as of June 30, 2024[22] Future Guidance - For Q4 2025, the company targets total net revenue between 295 million and 305million[12]−Thefullyearfiscal2025revenueguidanceissetbetween305 million[12] - The full year fiscal 2025 revenue guidance is set between 1,128 million and 1,138million[13]MarketPositionandRisks−ExtremePlatformONEhasnearly100pre−ordersandisgainingtractionwithmanagedserviceproviders[3]−Futureoutlookincludespotentialrisksrelatedtoglobalmacroeconomictrendsandcompetitioninthenetworkswitchingequipmentmarket[18]Non−GAAPMeasures−Non−GAAPoperatingincomeforthethreemonthsendedMarch31,2025,was1,138 million[13] Market Position and Risks - Extreme Platform ONE has nearly 100 pre-orders and is gaining traction with managed service providers[3] - Future outlook includes potential risks related to global macroeconomic trends and competition in the network switching equipment market[18] Non-GAAP Measures - Non-GAAP operating income for the three months ended March 31, 2025, was 40,048 thousand, with a non-GAAP operating margin of 14.1%, compared to a loss margin of 12.2% in the same period of 2024[43] - Non-GAAP net income for the three months ended March 31, 2025, was 27,958thousand,comparedtoalossof27,958 thousand, compared to a loss of 24,797 thousand in the same period of 2024[44] - Non-GAAP net income per diluted share for the three months ended March 31, 2025, was 0.21,comparedtoalossof0.21, compared to a loss of 0.19 per diluted share in the same period of 2024[44] - Total adjustments to GAAP net income for the three months ended March 31, 2025, amounted to $24,500 thousand, primarily due to share-based compensation and restructuring charges[44] - The company expects to continue incurring share-based compensation expenses in future periods, which are excluded from non-GAAP measures[34] - The non-GAAP provision for income taxes is calculated using a blended U.S. statutory tax rate of 24.6%[39]