Extreme Networks(US:EXTR)2025-08-06 11:09Financial Performance - Q4 revenue reached $307.0 million, up 19.6% year-over-year and 7.9% quarter-over-quarter[3] - SaaS ARR increased to $207.6 million, reflecting a 24.4% year-over-year growth and 13.0% quarter-over-quarter growth[3] - Revenue for the fiscal year 2025 was $1,140.1 million, up 2% year-over-year[6] - Total net revenues for the three months ended June 30, 2025, increased to $307.003 million, a 19.5% increase from $256.653 million in the same period last year[25] - Revenues for the three months ended June 30, 2025, reached $307.003 million, a 19.6% increase from $256.653 million in the same period of 2024[44] Profitability Metrics - GAAP gross margin improved to 61.6%, compared to 44.7% last year, while non-GAAP gross margin was 62.3%, up from 45.4% last year[3] - Non-GAAP diluted EPS for Q4 was $0.25, compared to a loss of $0.08 in the same quarter last year[3] - The company achieved a GAAP operating profit margin of 1.5%, compared to a loss margin of 5.8% last year[6] - Non-GAAP net income for the three months ended June 30, 2025, was $33.493 million, compared to a loss of $9.863 million in the same period of 2024[45] - Non-GAAP operating margin improved to 15.2% for the three months ended June 30, 2025, from a negative 4.6% in the prior year[44] Cash and Liquidity - The company reported a net cash position of $51.7 million, an increase of $48.7 million from the previous quarter[6] - The company reported a significant increase in cash and cash equivalents, rising to $231.7 million in June 2025 from $156.7 million in June 2024[23] - Cash provided by operating activities for the year ended June 30, 2025, was $152.031 million, compared to $55.486 million in 2024, indicating a strong operational cash flow improvement[27] - The company’s cash and cash equivalents at the end of the period increased to $231.745 million from $156.699 million, showing a positive cash flow trend[27] Shareholder Actions - The company executed share repurchases totaling $25.0 million during the quarter, amounting to approximately 1.5 million shares[6] Future Guidance - For Q1 FY'26, the company targets total net revenue between $292.0 million and $300.0 million, with a gross margin of 61.1% to 61.6%[13] - The non-GAAP earnings per share (EPS) guidance for Q1 FY'26 is projected to be between $0.20 and $0.23, while GAAP EPS is expected to range from $(0.03) to $0.02[13] - For the full fiscal year 2026, the company anticipates total net revenue between $1,228.0 million and $1,238.0 million[14] Operational Efficiency - Extreme secured multimillion-dollar deals with the Japanese government to deploy networking solutions, enhancing operational efficiency[6] - Extreme Platform ONE was launched, integrating AI capabilities into networking solutions, enhancing customer experience[2] Balance Sheet Strength - The total assets of the company reached $1,153.2 million as of June 30, 2025, up from $1,042.6 million a year earlier[23] - The company’s total stockholders' equity increased to $65.6 million in June 2025, compared to $25.3 million in June 2024, reflecting stronger financial health[23] Expense Management - Operating expenses for the three months ended June 30, 2025, totaled $190.464 million, compared to $163.572 million for the same period in 2024, representing a 16.4% increase[25] - Research and development expenses for the year ended June 30, 2025, were $221.459 million, up from $211.931 million, reflecting a 4.3% increase[25] - Total cost of revenues decreased to $430.940 million for the year ended June 30, 2025, down from $486.372 million, a reduction of 11.4%[25] Loss and Adjustments - The net loss for the year ended June 30, 2025, was $7.467 million, a significant improvement from a net loss of $85.964 million in the previous year[27] - The company reported a basic and diluted loss per share of $0.06 for the year ended June 30, 2025, compared to a loss of $0.66 per share in the previous year[25] - GAAP net loss for the three months ended June 30, 2025, was $7.803 million, a significant improvement from a loss of $54.203 million in the same period of 2024[45] - Total adjustments to GAAP net loss amounted to $41.296 million for the three months ended June 30, 2025[45] - The company experienced a significant reduction in litigation charges, totaling $22.006 million for the three months ended June 30, 2025, compared to $5.127 million in the same period of 2024[45]