Financial Data and Key Metrics Changes - Revenue reached $310 million, up 15% year-over-year, marking the sixth consecutive quarter of revenue growth and the third straight quarter of double-digit year-over-year increases [4][12] - Earnings per share (EPS) was $0.22, up 29% from $0.17 in the prior year [12] - SaaS Annual Recurring Revenue (ARR) grew 24% year-over-year to $216 million [4][12] - Total bookings increased by 21% year-over-year, reflecting strong customer demand [13] Business Line Data and Key Metrics Changes - Product revenue was $194 million, growing 20% year-over-year and achieving six sequential quarters of product revenue growth [13] - Subscription and support revenue totaled $116 million, up 9% year-over-year, with total recurring revenue growing 8% year-over-year [14] - Non-GAAP gross margin was 61.3%, impacted by industry-wide increases in component costs [15] Market Data and Key Metrics Changes - Strong performance was noted in Asia-Pacific and EMEA regions, with significant new customer wins [14] - 36 customers spent over $1 million with the company in the quarter, up from 34 last quarter and 27 in the prior year [14] Company Strategy and Development Direction - The company is focused on expanding its footprint in government sectors and enhancing its technology offerings, particularly with Extreme Fabric and Extreme Platform One [6][9] - The introduction of Extreme Platform One is expected to drive future growth, with positive customer feedback noted [5][10] - The company aims to achieve a revenue growth rate of 10% for the full fiscal year 2026, with a focus on large opportunities and increasing market share [11][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering gross margins through price increases and operational efficiencies [15][20] - The company anticipates continued growth in SaaS ARR and recurring revenue, with a target of 35% of total revenue from recurring sources in fiscal 2026 [17] - Management highlighted the competitive landscape, noting opportunities arising from disruptions among larger competitors [27][29] Other Important Information - The company has been recognized for its corporate responsibility efforts, reducing emissions by 34% since 2021 [11] - The company plans to host an AI Summit to discuss future innovations and strategies [10] Q&A Session Summary Question: Can you talk more about component price increases impacting gross margins? - Management acknowledged rising prices in memory and optics, indicating plans for price increases to recover costs [20][21] Question: What is the impact of the federal government shutdown on your business? - Management stated that the shutdown has had little to no impact, with opportunities opening up in the federal market due to recent certifications [24][25] Question: How is the competitive environment with Cisco and Juniper? - Management noted confusion in the market due to acquisitions and changes in partner programs, presenting opportunities for the company [27][29] Question: Can you provide metrics on Extreme Platform One's commercial introduction? - Management indicated that it is early for metrics but noted high adoption and excitement about the platform [36][38] Question: What are the long-term gross margin targets? - Management maintained a long-term target of 64% to 66% gross margins, with expectations for recovery from current levels [62][65]

Financial Data and Key Metrics Changes - Revenue reached $310 million, up 15% year-over-year, marking the sixth consecutive quarter of revenue growth and the third straight quarter of double-digit year-over-year increases [4][12] - Earnings per share (EPS) was $0.22, up 29% from $0.17 in the prior year [12] - SaaS Annual Recurring Revenue (ARR) grew 24% year-over-year to $216 million [4][12] - Total bookings increased by 21% year-over-year, reflecting strong customer demand [13] Business Line Data and Key Metrics Changes - Product revenue was $194 million, growing 20% year-over-year and achieving six consecutive quarters of product revenue growth [13] - Subscription and support revenue totaled $116 million, up 9% year-over-year, with total recurring revenue growing 8% year-over-year, representing 36% of total revenue [14] - Non-GAAP gross margin was 61.3%, impacted by industry-wide increases in component costs [15] Market Data and Key Metrics Changes - Strong performance was noted in Asia-Pacific and EMEA regions, with significant new customer wins contributing to growth [14] - 36 customers spent over $1 million with the company in the quarter, up from 34 last quarter and 27 in the prior year [14] Company Strategy and Development Direction - The company is focused on expanding its market share through innovative technology solutions, including Extreme Fabric and Extreme Platform ONE, which leverage AI for enhanced networking capabilities [4][5] - The company aims to achieve a revenue growth target of 10% for the fiscal year 2026, with a strong emphasis on SaaS ARR growth in the low 20% range [11][17] - The company is positioning itself as a strategic alternative to incumbents, particularly in the public sector and hospitality markets [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to recover gross margins through price increases and operational efficiencies [15][20] - The company anticipates continued growth in large opportunities and believes fiscal 2026 will mark an inflection point in its growth trajectory [11] - Management highlighted the competitive landscape, noting confusion among competitors as an opportunity for the company to gain market share [28][70] Other Important Information - The company has been recognized as a leader in the 2025 MarketScape by IDC, highlighting its unique technology and deployment flexibility [5] - The company is committed to corporate responsibility, having reduced emissions by 34% since 2021 and aiming for 50% renewable electricity sourcing [11] Q&A Session Summary Question: Can you talk more about component price increases impacting gross margins? - Management acknowledged rising prices in memory and optics, implementing price increases to recover costs, with expectations to improve gross margins over time [20][21] Question: What is the impact of the federal government shutdown on your business? - Management indicated that the shutdown had little to no impact, with opportunities opening up in the federal market due to recent certifications [25] Question: How is the competitive environment with Cisco and Juniper? - Management noted confusion in the market due to HPE's acquisition of Juniper and Cisco's partner program overhaul, creating opportunities for the company [27][29] Question: What metrics do you have for Extreme Platform ONE's commercial introduction? - Management stated that it is early to present metrics but noted high adoption and excitement about the capabilities of Platform ONE [38][39] Question: What are the long-term gross margin targets? - Management maintained a long-term gross margin target of 64%-66%, with expectations for recovery in the near term [63][66]

Financial Data and Key Metrics Changes - Revenue reached $310 million, up 15% year-over-year, marking the sixth consecutive quarter of revenue growth and the third straight quarter of double-digit year-over-year increases [4][13] - Earnings per share (EPS) was $0.22, up 29% from $0.17 in the prior year [13] - SaaS Annual Recurring Revenue (ARR) grew 24% year-over-year to $216 million [4][14] - Total bookings increased by 21% year-over-year, reflecting strong customer demand [15] Business Line Data and Key Metrics Changes - Product revenue was $194 million, growing 20% year-over-year and achieving six sequential quarters of product revenue growth [15][16] - Total subscription and support revenue was $116 million, up 9% year-over-year [16] - Recurring revenue grew 8% year-over-year, representing 36% of total revenue [16] Market Data and Key Metrics Changes - Strong performance was noted in Asia-Pacific and EMEA regions, with significant new customer wins [16] - 36 customers spent over $1 million with the company in the quarter, up from 34 last quarter and 27 in the prior year [16] Company Strategy and Development Direction - The company is focusing on technology innovation, with strong interest in the new Extreme Platform One and Wi-Fi 7 solutions [5][10] - The company aims to expand its footprint in government sectors and enhance its offerings with new sovereign cloud capabilities [6][7] - The company is positioning itself as a strategic alternative to incumbents, particularly in public sector and hospitality markets [16] Management's Comments on Operating Environment and Future Outlook - Management expects revenue growth to accelerate to 10% for the remainder of fiscal 2026, driven by large opportunities and increasing win rates [12] - The company is optimistic about its growth trajectory, with expectations of continued strong performance in SaaS ARR and new commercial models [12][39] Other Important Information - Non-GAAP gross margin was 61.3%, impacted by industry-wide increases in component costs, but expected to recover over time [17] - The company has implemented price increases to mitigate higher costs and drive margin recovery [17][22] Q&A Session Summary Question: Can you talk more about component price increases affecting gross margins? - Management acknowledged rising prices in memory and optics and mentioned plans for a mid-single-digit price increase to recover costs [21][22] Question: What is the impact of the federal government shutdown on the business? - Management indicated that the shutdown had little to no impact on their business, with opportunities opening up in the federal market due to recent certifications [24][25] Question: How is the competitive environment with Cisco and Juniper? - Management noted confusion in the market due to HPE's acquisition of Juniper and Cisco's partner program overhaul, creating opportunities for the company [26][27] Question: What is the status of Extreme Platform One's commercial introduction? - Management reported high adoption and excitement about the capabilities of Extreme Platform One, with metrics expected to be shared in future updates [32][34] Question: What are the long-term gross margin targets? - Management maintained a long-term gross margin target of 64% to 66%, with expectations of recovery from current tactical challenges [50][52]

Financial Data and Key Metrics Changes - Revenue for Q4 reached $307 million, representing a 20% year-over-year increase and marking the fifth consecutive quarter of sequential revenue growth [5][17] - SaaS ARR revenue accelerated to $208 million, up 24% year-over-year [5][18] - Earnings per share (EPS) for Q4 was $0.25, up 32% from $0.19 in the prior year quarter on an adjusted basis [17][22] - Non-GAAP gross margin was 62.3% in Q4, with operating margin at 15.2%, up from 13.5% in the prior year [21][22] Business Line Data and Key Metrics Changes - Product revenue for Q4 was $192 million, growing 26% year-over-year [18] - WiFi 7 products represented 30% of all wireless units sold, contributing to a second consecutive quarter of revenue growth in wireless products [18][19] - Total subscription and support revenue was $115 million, up 11% year-over-year [20] Market Data and Key Metrics Changes - APAC region saw significant growth, with major new customer wins leading to the largest bookings quarter ever in the region [19] - EMEA revenue grew 21% year-over-year, the highest level since early 2024 [19] - Americas revenue grew 4% year-over-year, with a strong pipeline for future growth [20] Company Strategy and Development Direction - The company is focused on moving upmarket and has seen robust demand across both wired and wireless network solutions [5][6] - The launch of the AI-powered Extreme Platform One is expected to drive future growth and customer interest [11][12] - The company is expanding its footprint in strategic markets, including significant wins in the Japanese government and high-density public venues [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained customer demand based on strong funnel generation and pipeline growth [15][23] - The company anticipates a reacceleration of overall revenue growth for fiscal 2026, with guidance for revenue between $1.228 billion and $1.238 billion [24] - Management highlighted the positive impact of recent large customer wins and the competitive positioning of the company [15][42] Other Important Information - The company achieved a net cash position of $52 million, up $49 million from the previous quarter [22] - The company returned value to shareholders through a share repurchase of 1.5 million shares for a total of $25 million [21] Q&A Session Summary Question: Success in EMEA and APAC - Management noted gradual recovery in EMEA and expects continued momentum due to a stabilized political environment and unique opportunities in the region [26][27] Question: Impact of Pricing Stability - Management indicated minimal pull-forward orders due to stable pricing and product category exemptions from tariffs [29][30] Question: Contribution of Platform One - Management stated that while Platform One had limited availability, it is expected to significantly impact ARR bookings in the second half of the year [33][34] Question: MSP Partners Growth - Management described the MSP program as still in early stages but noted excitement around the fully automated billing platform and consumption model [37][39] Question: Competitive Landscape Post-HPE Juniper Merger - Management acknowledged increased inbound opportunities due to the HPE Juniper merger and changes in Cisco's partner program, which could benefit Extreme [59][63] Question: Gross Margin Outlook - Management expects product margins to improve, targeting a range of 58% to 60% in the future, driven by higher-margin products like WiFi 7 [70][71] Question: Demand Trends by Vertical - Government and education sectors account for about 40% of total revenue, with other verticals like retail, healthcare, and hospitality also contributing [72][73]

Financial Data and Key Metrics Changes - Revenue for Q4 reached $307 million, representing a 20% year-over-year increase and marking the fifth consecutive quarter of sequential revenue growth [5][17] - SaaS ARR revenue accelerated to $28 million, up 24% year-over-year [5][17] - Non-GAAP EPS for Q4 was $0.25, up 32% from $0.19 in the prior year quarter [17][22] - Total revenue for the full fiscal year was $1.14 billion, growing 2% year-over-year [22] Business Line Data and Key Metrics Changes - Product revenue for Q4 was $192 million, growing 26% year-over-year [17][18] - WiFi 7 products represented 30% of all wireless units sold, contributing to a second consecutive quarter of revenue growth in wireless products [18][19] - Total subscription and support revenue was $115 million, up 11% year-over-year [20] Market Data and Key Metrics Changes - APAC region saw significant growth, with major new customer wins leading to the largest bookings quarter ever in the region [19] - EMEA revenue grew 21% year-over-year, the highest level since early 2024 [19] - Americas revenue grew 4% year-over-year, with a strong pipeline for future growth [20] Company Strategy and Development Direction - The company is focused on moving upmarket and has seen robust demand across both wired and wireless network solutions [5][6] - The launch of the AI-powered Extreme Platform One is expected to drive customer interest and enhance competitive positioning [11][12] - The company is investing in automation and differentiation to drive commercial success [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained customer demand based on strong funnel generation and pipeline [15][22] - The company anticipates a reacceleration of overall revenue growth for fiscal 2026, with guidance for revenue between $1.228 billion and $1.238 billion [23] - Management noted that the competitive landscape is shifting due to mergers and changes in partner programs among competitors, creating opportunities for Extreme [52][60] Other Important Information - The company achieved a net cash position of $52 million, up $49 million from the previous quarter [22] - The company returned value to shareholders through a share repurchase of 1.5 million shares for a total of $25 million [21] Q&A Session Summary Question: Success in EMEA and APAC - Management noted gradual recovery in EMEA and expects momentum to continue due to stabilization in the political environment and unique opportunities in the German government [26][27] Question: Pricing Stability and Order Pull Forward - Management indicated minimal pull forward of orders due to product category exemptions from tariffs [29] Question: Contribution of Platform One to ARR Bookings - Management stated that while Platform One had limited availability, it is expected to contribute meaningfully in the second half of the year [34][35] Question: Growth of MSP Partners - Management described the MSP program as still in early stages but expects momentum to build with the new automated billing platform [38][40] Question: Competitive Environment Post HP Juniper Deal - Management highlighted increased opportunities due to the HP Juniper merger and Cisco's shift away from networking [52][56] Question: Gross Margin Outlook - Management expects product margins to improve, targeting a range of 58% to 60% in the future [67][68] Question: Demand Trends by Vertical - Government and education account for about 40% of total revenue, with other verticals like retail, healthcare, and hospitality also contributing [69][70]