Financial Data and Key Metrics Changes - The company reported revenue of $242 million for the second quarter, representing a 10% sequential growth [17] - Record remaining performance obligations (RPOs) grew 2% sequentially to $347 million and increased 30% year over year [17] - Non-GAAP gross margin reached a record 56.8%, a 60 basis point sequential increase [18] - Free cash flow was $36 million, marking the ninth consecutive quarter of generating eight-digit free cash flow [18] - Days sales outstanding (DSO) was a record 24 days, down six days sequentially [19] Business Line Data and Key Metrics Changes - The company added 18 new broadband service provider (BSP) customers, primarily through competitive takeaways [18] - The strength in RPOs indicates robust demand for the platform, cloud, and managed services model [17] Market Data and Key Metrics Changes - The company noted a broad-based demand environment during the second quarter, allowing for continued sequential growth [20] - The impact of tariffs on operations has been minimal so far, with the company prepared to mitigate any future changes [19] Company Strategy and Development Direction - The company is transitioning from a network system company to a platform company, focusing on broadband experience providers [22] - The introduction of AgenTeq AI is expected to enhance operational efficiency and customer experience, allowing for faster deployment of value-added services [10][12] - The third generation platform aims to eliminate geographic constraints and expand into new markets, including private cloud offerings for large customers [13][98] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation of the broadband industry, emphasizing the importance of customer experience over traditional speed metrics [6][7] - The company anticipates continued revenue growth in the third quarter, with guidance between $243 million and $249 million [20] - Management highlighted the significant impact of AI on the industry, predicting it will be a transformative force [10][108] Other Important Information - The company has invested over $2 billion into its platform over the past 15 years, enabling it to support a diverse range of broadband providers [11] - The third generation platform is set to launch in the second half of 2025, with the first component, a mobile application, debuting in August [12][41] Q&A Session Summary Question: Clarification on normalized numbers and smaller customer growth - Management indicated that the growth for smaller customers on an organic basis was mid-single digits [29] Question: Impact of AI investment on OpEx and ARPU - Management acknowledged that while OpEx is constrained, there may be a need for increased investment due to the rapid pace of AI development [31][36] Question: Update on supply situation and capacity in Mexico - Management confirmed a stable manufacturing environment and ongoing plans to expand capacity over the next 9 to 18 months [55] Question: Confidence in the BEAD program's impact on closing the digital divide - Management stated that while the program is still in flux, it is not included in current numbers, but they are prepared to capitalize on it when it materializes [69][72] Question: Elements of AgenTeq AI benefiting end subscribers - The first iteration of AgenTeq AI will enhance customer-facing capabilities, including performance analysis and troubleshooting [77][79] Question: Expectations for double-digit growth in 2026 - Management confirmed expectations for double-digit growth in 2026, supported by improved visibility and results [88] Question: Details on new large customer win - Management confirmed a net new large customer that became a cloud-only customer, indicating strong future potential [118]

Financial Data and Key Metrics Changes - Revenue for the second quarter of 2025 was $242 million, representing a 10% sequential growth [14] - Record remaining performance obligations (RPOs) grew 2% sequentially to $347 million and increased 30% year over year [14] - Current RPOs were $134 million, up 5% sequentially and up 30% year over year [14] - Non-GAAP gross margin reached a record 56.8%, a 60 basis point sequential increase [15] - Free cash flow was $36 million, marking the ninth consecutive quarter of generating eight-digit free cash flow [16] - Days sales outstanding (DSO) was a record 24 days, down six days sequentially [17] Business Line Data and Key Metrics Changes - The company added 18 new broadband service provider (BSP) customers, primarily through competitive takeaways [16] - The strength in gross margin was attributed to customer mix and the success of VSP customers in winning new subscribers [15] Market Data and Key Metrics Changes - The demand environment was described as very strong and broad-based during the second quarter [14] - The company anticipates continued sequential growth in the third quarter of 2025, with revenue guidance between $243 million and $249 million [18] Company Strategy and Development Direction - The company is transitioning from a network system company to a platform company, focusing on broadband experience providers [20] - The introduction of AgenTeq AI is expected to enhance operational efficiency and customer experience, allowing for faster deployment of value-added services [20][39] - The third generation platform aims to eliminate geographic constraints and enable private cloud solutions for large customers [90] Management's Comments on Operating Environment and Future Outlook - Management emphasized the significant impact of AI on the broadband industry, predicting a transformation in how broadband providers operate [20][99] - The company is positioned to leverage its platform and investments to drive growth and enhance customer success [20][102] - Management expressed confidence in achieving double-digit growth in 2026, supported by improved visibility and demand [82] Other Important Information - The company has invested over $2 billion into its platform over the past 15 years [9] - The third generation platform is in preproduction, with a launch expected in the second half of 2025 [10] Q&A Session Summary Question: Clarification on normalized numbers and growth for smaller customers - Management indicated that the growth for smaller customers on an organic basis was mid-single digits [27] Question: Impact of AI on OpEx and ARPU - Management acknowledged that investments in AI may require a slight increase in OpEx but emphasized that the transformation would enhance customer monetization opportunities [32] Question: Update on supply situation and capacity in Mexico - Management reported a stable manufacturing environment and indicated that capacity expansion would take 9 to 18 months [52] Question: Confidence in the BEAD program's impact on closing the digital divide - Management expressed cautious optimism about the program but noted it is not included in current forecasts [66] Question: Elements of AgenTeq AI benefiting end subscribers - Management highlighted that the first iteration of the AI platform would enhance customer-facing capabilities, including performance analysis and troubleshooting [75] Question: Expectations for double-digit growth in 2026 - Management confirmed the expectation for double-digit growth in 2026, supported by the ongoing rollout of the third generation platform [82]

Group 1: Earnings Performance - Calix reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, and up from $0.09 per share a year ago [1] - The earnings surprise for this quarter was +65.00%, following a previous surprise of +46.15% in the last quarter [2] - Over the last four quarters, Calix has surpassed consensus EPS estimates three times [2] Group 2: Revenue Performance - The company posted revenues of $241.88 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 8.02%, compared to $198.14 million in the same quarter last year [3] - Calix has also topped consensus revenue estimates three times over the last four quarters [3] Group 3: Stock Performance and Outlook - Calix shares have increased approximately 53.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1% [4] - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $226.85 million, and for the current fiscal year, it is $0.86 on revenues of $901.91 million [8] - The Zacks Industry Rank for Internet - Software is in the top 32% of over 250 Zacks industries, indicating a favorable outlook for the sector [9]

Exhibit 99.2 July 21, 2025 Fellow Calix stockholders: During the second quarter of 2025, the Calix team delivered strong sequential revenue growth of 10%, as our broadband experience provider customers (BXPs) continued to win new subscribers, drive down churn and grow revenue via the unique capabilities of our appliance-based platform, cloud and managed services model. As a result, our remaining performance obligations (RPOs) rose 30% year-over-year and 2% quarter-over- quarter to $347 million, and gross ma ...

Back in January, I rated Calix, Inc. (NYSE : CALX ) a Hold . The business was executing well, the platform strategy was taking shape, and gross margins were clearly heading in the right direction. But growth was slower, customer momentum looked uneven, andI’m Emmanuel Onwusah—a financial analyst, writer, and recovering engineer. I hold FMVA® and BIDA® certifications from the Corporate Finance Institute, and I spend most of my time creating pitch decks, building models, analyzing companies, and trying to mak ...

Industry Overview - The Internet Software and Services sector is experiencing growth due to increased IT spending on solutions that support hybrid operating environments [1] - The Internet Software industry is ranked in the top 17% of Zacks Industry Rank, indicating an expectation to outperform the market in the next three to six months [2] Company Highlights UiPath Inc. (PATH) - UiPath offers an end-to-end automation platform with a range of robotic process automation solutions [6] - The platform includes AI, ML, and NLP capabilities, enhancing decision-making and information processing [7] - Expected revenue and earnings growth rates for the current year are 8.5% and 3.8%, respectively, with a 1.9% improvement in earnings estimates over the last week [8] Five9 Inc. (FIVN) - Five9 provides intelligent cloud software for contact centers, enabling a wide range of customer service functions [11] - The platform includes AI-driven features such as virtual agents and workflow automation, benefiting from the growing adoption of AI tools [13] - Expected revenue and earnings growth rates for the current year are 9.6% and 11.7%, respectively, with a 5.7% improvement in earnings estimates over the last 60 days [14] Fastly Inc. (FSLY) - Fastly offers infrastructure software for cloud computing, security, and edge computing solutions [15] - The Fastly AI Accelerator was introduced to optimize LLM generative AI applications [15] - Expected revenue and earnings growth rates for 2025 are 8.6% and 25%, respectively, with a 10% improvement in earnings estimates over the last week [17] Calix Inc. (CALX) - Calix provides cloud and software platforms for broadband service providers [18] - The company has integrated AI into its platforms to enhance operations and service delivery [20] - Expected revenue and earnings growth rates for 2025 are 7.1% and 65.4%, respectively, with a 21.1% improvement in earnings estimates over the last 60 days [20] Confluent Inc. (CFLT) - Confluent operates a data streaming platform that allows real-time data streaming for various industries [21][22] - Expected revenue and earnings growth rates for the current year are 19% and 24.1%, respectively, with a 2.9% improvement in earnings estimates over the last 60 days [23]

Financial Data and Key Metrics Changes - The company has experienced a sequential growth rate that has exceeded previous expectations, moving beyond the anticipated low single-digit growth [16][19] - The business fundamentals are based on subscribers transitioning to broadband experience providers, which has led to increased confidence in growth [20][21] - The company has maintained a strong balance sheet and is focused on leveraging cash to build inventory while navigating tariff uncertainties [28][30] Business Line Data and Key Metrics Changes - The Platform Cloud and Managed Services business has shown consistent growth, while hardware sales have fluctuated due to pandemic-related disruptions [20][21] - The introduction of SmartMDU is expected to expand the addressable market significantly, as 30% of subscribers live in multi-dwelling units [60][61] Market Data and Key Metrics Changes - The U.S. market remains the primary focus, with 95% of revenue generated domestically, providing a safe harbor amid geopolitical uncertainties [24][25] - The company is witnessing a shift from legacy service providers to broadband experience providers, which is indicative of market disruption [68][69] Company Strategy and Development Direction - The company aims to help service providers transition to broadband experience providers, focusing on delivering superior subscriber experiences [13][14] - There is a clear strategy to separate appliance revenues from other business segments by 2026, allowing for better visibility into financial performance [56][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the inelastic demand for broadband services, noting that many subscribers are dissatisfied with their current providers [20][21] - The ongoing consolidation in the service provider space is seen as a sign of market disruption, with legacy players struggling to retain subscribers [68][69] Other Important Information - The company is focused on maintaining a disciplined approach to stock buybacks, evaluating market conditions and internal financial metrics [88][90] - The management team is committed to enhancing transparency regarding recurring revenue and software revenue as the competitive landscape evolves [55][56] Q&A Session Summary Question: What is the biggest upside opportunity right now? - The biggest opportunity lies in expanding into multi-dwelling units (MDUs) and transforming existing customer business models [84] Question: What's holding back larger revenues in Europe? - The primary constraint is the investment portfolio, as opportunities in the U.S. are significantly larger [86] Question: Are you still buying back stock at these levels? - The company employs a disciplined stock buyback strategy, assessing market conditions and internal financial health before making purchases [88][90]

Group 1 - Calix, Inc (CALX) has reached a key level of support, with its 50-day simple moving average crossing above its 200-day simple moving average, indicating a "golden cross" which may signify a potential bullish breakout [1] - A golden cross consists of three stages: a downtrend that bottoms out, a shorter moving average crossing above a longer moving average, and a subsequent upward price movement [2] - CALX has experienced a rally of 33.7% over the past four weeks, and currently holds a 3 (Hold) rating on the Zacks Rank, suggesting it could be poised for a breakout [3] Group 2 - There have been two upward revisions in earnings expectations for CALX in the current quarter, with no downward revisions, and the Zacks Consensus Estimate has also increased [3] - The combination of positive earnings estimate revisions and the technical breakout signals indicates that investors should monitor CALX for potential gains in the near future [4]

Summary of Calix (CALX) FY Conference Call - May 13, 2025 Company Overview - **Company**: Calix (CALX) - **Industry**: Broadband Equipment and Services Key Points and Arguments Industry Dynamics - The company is experiencing a wave of disruption in the broadband equipment landscape, particularly post-COVID, with a return to sequential growth and gross margin expansion [1][6] - Larger public companies are losing broadband subscribers to "broadband experience providers," which are gaining market share due to superior customer experiences [5][6] Customer Engagement and Strategy - Calix focuses on helping broadband experience providers enhance their service offerings, which leads to high net promoter scores and low churn rates among subscribers [6][7] - The company emphasizes the importance of deployment rates and customer success, indicating that they have direct relationships with customers to monitor and support their growth [17][18] Financial Performance - Calix reported a 16% continuous annual growth rate from Q1 2019 to the present, with gross margins expanding by 175 basis points annually [13][14] - Gross margins have improved from 50% during the pandemic to 56.2% currently, indicating recovery and growth in profitability [15] Market Trends and Customer Behavior - Higher interest rates are seen as beneficial for Calix, as they prompt customers to optimize their network infrastructure and subscriber acquisition strategies [8][9] - The company has observed lumpiness in customer spending patterns, which is attributed to varying deployment schedules among small, medium, and large customers [12][16] Growth Drivers - The primary growth driver for Calix is the expansion of existing customers rather than acquiring new ones, focusing on a "land and expand" model [28] - The deployment of GigaSpire systems is a key indicator of new subscriber acquisition and overall business health [26][27] Supply Chain and Tariff Management - Calix is proactively managing supply chain challenges and tariffs, with plans to move manufacturing to Mexico to mitigate costs [30][31] - The company aims to minimize disruption to customers and will only pass on tariff costs as a last resort [32][36] Future Outlook - The company expects to maintain a long-term growth rate of 10% to 15% annually, with margin expansion of 100 to 200 basis points, despite uncertainties in the macroeconomic environment [71][72] - The potential relaxation of technology rules in government funding programs is anticipated, which could further benefit the broadband sector [64][67] Managed Services and Cloud Offerings - Adoption of managed services is increasing, with a notable ramp-up in customer deployments, which is expected to positively impact gross margins [48][51] - The Service Cloud is the most advanced offering, while the Engagement Cloud is growing as customers evolve into broadband experience providers [54][56] Government Funding and BEAD Program - There is ongoing uncertainty regarding the BEAD program, but no indications of cancellation have been reported, suggesting continued investment opportunities in the broadband space [62][63] Additional Important Insights - The company has a strong focus on cash flow management, emphasizing the importance of maintaining gross profit neutrality amidst changing market conditions [75][78] - Calix's strategic positioning and customer-centric approach are expected to provide a competitive advantage in the evolving broadband landscape [36][67]

Core Insights - Calix (NYSE: CALX) reported a strong quarter with positive growth across its financial metrics, indicating robust performance [1] - The company is successfully transitioning its business model towards a more SaaS and subscription-based approach, which is expected to enhance visibility for investors [1]