Calix(US:CALX)2025-07-21 20:14Financial Performance - In Q2 2025, Calix reported revenue of $241.9 million, a 10% increase sequentially and a 22% increase year-over-year[15]. - Remaining performance obligations (RPOs) rose to $347 million, reflecting a 30% year-over-year increase and a 2% quarter-over-quarter increase[3][20]. - Gross margin reached a record 56.3%, up 60 basis points sequentially and 200 basis points year-over-year[29]. - Free cash flow for the quarter was $36 million, marking the ninth consecutive quarter of eight-figure free cash flow[4]. - U.S. revenue accounted for 91% of total revenue, with a 20% increase compared to the same quarter last year[16]. - International revenue increased by 152% sequentially and 48% year-over-year, now representing 9% of total revenue[16]. - Non-GAAP net income was $22.2 million, an increase of $9.1 million from the prior quarter and $16.1 million from the same quarter last year[33]. - For the six months ended June 28, 2025, revenue was $462.1 million, up from $424.4 million in the same period of 2024, indicating a year-over-year growth[63]. - The net loss for the three months ended June 28, 2025, was $199,000, compared to a net loss of $7.96 million in the same period of 2024[63]. - The company reported a net loss of $4,986 thousand for the six months ended June 28, 2025, an improvement from a net loss of $7,855 thousand in the same period of 2024[67]. Cash and Investments - Cash and investments at the end of Q2 2025 totaled $299 million, a sequential increase of $16.7 million[38]. - Net cash provided by operating activities for the six months ended June 28, 2025, was $56,593 thousand, up 52.9% from $37,038 thousand in the same period of 2024[67]. - Cash and cash equivalents at the end of the period increased to $76,538 thousand in June 2025 from $43,162 thousand at the beginning of the period, marking a net increase of 77.1%[67]. Guidance and Projections - Revenue guidance for Q3 2025 is projected between $243 million and $249 million, reflecting a 2% increase at the midpoint from the prior quarter[42]. - Non-GAAP gross margin guidance for Q3 2025 is expected to be 57.0% at the midpoint, indicating a slight increase from the previous quarter[43]. - Non-GAAP operating expense guidance for Q3 2025 is set at $113 million at the midpoint, representing a modest sequential increase[44]. - The expected non-GAAP effective tax rate for 2025 is projected to be between 23% and 25%[45]. - The company expects a non-GAAP gross margin of 56.0% - 58.0% for the three months ending September 27, 2025[76]. - Operating expenses are projected to be between $112,000 thousand and $114,000 thousand for the same period, down from $132,000 thousand - $134,000 thousand on a GAAP basis[76]. - The company plans to issue guidance for net income per diluted common share of $0.31 - $0.37 for the upcoming quarter[76]. Operational Highlights - The company has transformed from a systems to a platform company, leveraging investments in artificial intelligence to drive innovation and growth[46]. - The company aims to expand into new markets, including MDU and new geographies, while enhancing internal operations[47]. - Strong demand for the company's appliances, platform, cloud, and managed services supports confidence in sequential revenue growth[49]. - The company continues to add new subscribers and help existing ones adopt additional services, enhancing operational efficiency and revenue growth[54]. - Days sales outstanding (DSO) improved to a record low of 24 days, down from 30 days in the prior quarter[4][36]. Stock-Based Compensation - Stock-based compensation for the three months ended June 28, 2025, was $25,613 thousand, compared to $15,458 thousand in June 2024, reflecting a year-over-year increase of 65.8%[73].