Core Insights - CDE Lightband has successfully launched Calix SmartBiz, surpassing its first-year goals and driving growth in the small business sector through effective strategies and offerings [1][3][5] Group 1: Product and Service Offering - SmartBiz provides flexibility for small business subscribers, catering to various needs from simple guest Wi-Fi to secure networks for point-of-sale systems [2][7] - The integration of SmartBiz with the Calix Broadband Platform allows for secure, managed Wi-Fi tailored for small businesses, enhancing network management and reliability [4][6] Group 2: Implementation and Strategy - CDE Lightband deployed SmartBiz in just six weeks with support from Calix Success, establishing a dedicated small business organization across sales, engineering, and support [3][5] - The company made SmartBiz a standard feature in every bundle, which has helped maintain a market share of 40-45% while simplifying purchasing for small businesses [5][6] Group 3: Leadership and Vision - Leadership at CDE Lightband emphasizes the importance of reliability and simplicity in service offerings, adapting to the unique needs of different types of businesses [7] - Calix's President highlighted CDE Lightband's success as a model for service providers to differentiate themselves through value rather than price, showcasing the potential for community-focused growth [8]

Calix, Inc. (NYSE:CALX) reported better-than-expected third-quarter financial results and issued fourth-quarter guidance above estimates, after the closing bell on Wednesday.Calix posted adjusted earnings of 44 cents per share, beating market estimates of 24 cents per share. The company's quarterly sales came in at $265.437 million versus expectations of $246.100 million.Calix said it sees fourth-quarter adjusted EPS of $0.35-$0.41, versus estimates of $0.20. The company projects sales of $267.000 million-$ ...

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Core Insights - Calix, Inc. has been upgraded to a "Buy" rating by Roth Capital with a new price target of $85, reflecting strong confidence in the company's future performance [1][6] - The company reported a 32% year-over-year increase in revenue, reaching over $265 million in the third quarter, significantly exceeding analyst expectations [2][6] - Calix's GAAP net profit improved to $15.7 million, a notable turnaround from a nearly $4 million loss in the same quarter last year [3][6] Financial Performance - Revenue for the third quarter was over $265 million, surpassing the forecast of slightly over $246 million [2] - The company achieved a non-GAAP net profit of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.34, resulting in an earnings surprise of 29.41% [3] - Calix's market capitalization is approximately $4.44 billion, with a trading volume of 2,623,212 shares [5] Stock Market Reaction - Following the earnings release, CALX's stock price surged by 20%, contrasting with a 0.9% decline in the S&P 500 index on the same day [4] - The current stock price of $68.04 reflects a 9.34% increase, with a trading range between $63.50 and $69.68, marking its highest price over the past year [4] Strategic Growth Initiatives - The company added 20 new clients, positioning itself well for future success [5] - Calix continues to outperform consensus EPS estimates, solidifying its status as a key player in the Zacks Internet - Software industry [5]

Key Points The third time was quite the charm, as third-quarter results easily topped analyst expectations. It did even better with solid beats on fourth-quarter guidance too. 10 stocks we like better than Calix › Calix (NYSE: CALX) published its latest quarterly earnings report after market close on Wednesday, and investors reacted positively to this the following day. The specialty tech company's shares finished Thursday 20% higher in price, contrasting very well with the 0.9% slide of the S&P 500 ...

Financial Data and Key Metrics Changes - The company reported record revenue of $265 million for Q3 2025, reflecting a sequential growth of 10% [8] - Non-GAAP gross margin reached a record 57.7%, representing a 90 basis point sequential increase [8] - Record cash investments at the end of the quarter amounted to $340 million, an increase of $41 million sequentially [9] Business Line Data and Key Metrics Changes - RPOs (Remaining Performance Obligations) grew 2% sequentially to a record $355 million and increased 20% year over year [8] - Current RPOs were $141 million, up 5% sequentially and up 28% year over year, indicating strong platform performance [8] Market Data and Key Metrics Changes - The company experienced broad-based demand from BXP customers, contributing to robust deployments and subscriber growth [8][28] - The international market showed fluctuations, with a noted decline due to one customer in Europe, but overall demand remains strong [51][57] Company Strategy and Development Direction - The company is focused on leveraging AI through its third-generation platform in partnership with Google Cloud to enhance customer success and operational efficiency [16][17] - Investments of $2 billion over 15 years have established foundational elements for growth, enabling customers to optimize their operations and scale rapidly [16][31] - The strategy includes expanding into international markets and enhancing service offerings to drive revenue and margin growth [34][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth due to broad-based demand and the success of customers using the Calix platform [28][46] - The outlook for Q4 2025 anticipates revenue between $267 million and $273 million, reflecting a 2% sequential increase and 20% growth for the fiscal year compared to 2024 [13] - Management highlighted the transformative potential of AI in driving operational performance and customer success [19][24] Other Important Information - The company achieved its tenth consecutive quarter of eight-figure free cash flow, ending the quarter with record cash [6][9] - The management team emphasized the importance of customer success and the ability to add subscribers as key drivers of revenue growth [56][94] Q&A Session Summary Question: What has driven the outperformance in revenue this quarter? - Management attributed the outperformance to broad-based demand and competitive expansion, with customers winning more subscribers [25][28] Question: How does the innovation cycle impact investment strategies? - The company is focused on leveraging past investments to capitalize on growth opportunities, particularly in AI and international markets [30][34] Question: What is the sustainability of growth into 2026? - Management indicated that while growth may be more muted, the demand profile remains strong, and they expect to be at the lower end of their target growth model [46][56] Question: How will AI impact monetization strategies? - The company plans to monetize AI by helping customers increase subscriber acquisition and service rollout speed, which will enhance RPO growth [53][56] Question: What are the risks and upside factors in the industry? - Management noted that while permitting and labor could be natural governors on growth, they see no significant risks and are optimistic about broad-based demand [121][124]

Core Insights - Calix (CALX) reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, and showing significant growth from $0.13 per share a year ago [1][2] - The company achieved revenues of $265.44 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 7.93% and increasing from $200.95 million year-over-year [3] Earnings Performance - The earnings surprise for the quarter was +29.41%, following a previous surprise of +65% when earnings were $0.33 per share against an expectation of $0.20 [2] - Over the last four quarters, Calix has exceeded consensus EPS estimates three times [2] Revenue Performance - Calix has consistently topped consensus revenue estimates, achieving this four times over the last four quarters [3] - The current consensus EPS estimate for the upcoming quarter is $0.30 on revenues of $250.89 million, and for the current fiscal year, it is $1.17 on revenues of $958.93 million [8] Stock Performance - Calix shares have increased approximately 77.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 17.2% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Outlook - The Internet - Software industry, to which Calix belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a favorable outlook [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]

Financial Performance - In Q3 2025, Calix achieved record revenue of $265 million, marking a 10% sequential growth and a 32% year-over-year increase[3]. - Total revenue for the three months ended September 27, 2025, was $265.4 million, up from $200.9 million in the same period last year, representing a 32% year-over-year increase[58]. - Gross profit for the nine months ended September 27, 2025, was $411 million, compared to $340.2 million for the same period in 2024, marking a 21% increase[58]. - Net income for the nine months ended September 27, 2025, was $10,672,000, a significant improvement from a net loss of $11,823,000 for the same period in 2024[62]. - Non-GAAP net income for the three months ended September 27, 2025, was $30,586,000, compared to $8,907,000 for the same quarter in 2024[68]. - Free cash flow generated was $27 million, marking the 10th consecutive quarter of eight-figure free cash flow[4]. Margins and Expenses - Non-GAAP gross margin reached a record 57.7%, improving by 90 basis points sequentially and 230 basis points year-over-year[29]. - Non-GAAP gross margin for the three months ended September 27, 2025, was 57.7%, up from 54.8% in the same quarter of 2024[64]. - Non-GAAP gross margin guidance for Q4 2025 is set at 57.75% at the midpoint, indicating an annual improvement of 100 to 200 basis points in 2025[43]. - GAAP operating expenses for the three months ended September 27, 2025, totaled $134,605,000, compared to $120,943,000 for the same period in 2024[66]. - Non-GAAP operating expense guidance for Q4 2025 is estimated at $123 million at the midpoint, primarily due to investments in customer success and AI development[44]. Cash and Investments - Cash and investments reached a record $340 million, with a quarterly increase of $40.7 million driven by operating cash flow of $32.4 million[39]. - Cash and cash equivalents increased to $95 million as of September 27, 2025, from $43.2 million at the end of 2024[60]. - Cash and cash equivalents at the end of the period on September 27, 2025, were $95,012,000, up from $62,361,000 at the end of the same period in 2024[62]. - The company reported net cash provided by operating activities of $88,907,000 for the nine months ended September 27, 2025, compared to $53,037,000 for the same period in 2024[62]. - Stock-based compensation for the nine months ended September 27, 2025, was $65,976,000, an increase from $48,686,000 in the same period of 2024[62]. Customer and Market Growth - U.S. revenue accounted for 94% of total revenue, up from 91% in the previous quarter, with a 14% sequential increase and a 33% year-over-year increase[17]. - Revenue from large customers increased by $6.9 million sequentially, representing 13% of total revenue, while revenue from small customers accounted for 76% of total revenue[27]. - Calix added 20 new platform customers in Q3 2025, contributing to the ongoing growth and success of its broadband experience provider (BXP) customers[3]. - The company is focused on expanding its customer base and enhancing its platform, cloud, and managed services offerings[47]. Future Guidance - Revenue guidance for Q4 2025 is projected between $267 million and $273 million, reflecting a 2% increase at the midpoint from the prior quarter[42]. - Net income per diluted common share for Q4 2025 is expected to be between $0.35 and $0.41, compared to $0.15 to $0.21 under GAAP[41]. - The company expects a non-GAAP effective tax rate between 23% and 25% for 2025 and 2026[45]. - The guidance for net income per diluted common share for the three months ending December 31, 2025, is projected to be between $0.15 and $0.21[71]. Operational Efficiency - Days sales outstanding (DSO) remained low at 30 days, while inventory turns improved to 3.8, indicating strong operational efficiency[36]. - The third-generation platform and Calix Agent Workforce are set to launch in Q4 2025, aimed at enhancing customer success and operational efficiency[7]. - The company has launched the Calix Agent Workforce, leveraging investments in AI to drive innovation and customer success[46].

Core Insights - Calix, Inc. announced the winners of the 2025 Partner Awards at Calix ConneXions, recognizing companies that align with its vision to support broadband service providers [1] Group 1 - The Partner Awards honor exemplary companies that help broadband service provider customers simplify their business, innovate for subscribers, and enhance value for their members, investors, and communities [1] - Calix delivers industry-leading expertise, consulting, hands-on support, and innovative solutions to its partners [1]

Core Insights - Calix has launched new SmartBiz and SmartMDU capabilities aimed at enhancing service providers' ability to serve small businesses and multi-dwelling units (MDUs) more effectively and efficiently [1][4][8] Product Innovations - The introduction of the GP5G plug-and-play 5G access point and GPS8P/GPS24P managed switches will provide automatic cellular backup and simplified network management for small businesses, ensuring business continuity and reducing operational costs [1][4] - New Wi-Fi 7 systems, including GigaPro 7p6 and GigaSpire 7u4, will enhance connectivity in MDUs, offering high-performance, low-latency Wi-Fi coverage [4][6] Market Demand - The National Multifamily Housing Council reports that 92% of residents consider free Wi-Fi in communal workspaces essential, highlighting the increasing importance of reliable broadband for both small businesses and MDUs [3] Operational Efficiency - Calix's SmartBiz and SmartMDU innovations are designed to simplify deployment, support, and management, allowing service providers to grow without complexity [3][8] - The modular Wi-Fi 7 designs and intelligent Calix Cloud management will facilitate property-wide deployment and streamline operations as service portfolios expand [6][8] Customer Support - Calix offers a Success organization that assists customers with network design, optimization, and tailored guidance to reduce time to revenue for new service launches [7]