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]

Financial Data and Key Metrics Changes - Revenue for the quarter reached $284.5 million, representing a 35% increase year over year and a 2% sequential increase [6][19] - Earnings per share were $0.21, consistent with the prior quarter and significantly up year over year, exceeding the high end of guidance [18] - Gross margin for the quarter was 62.3%, a 110 basis point sequential decrease but up 470 basis points year over year [23] Business Line Data and Key Metrics Changes - Product revenue increased to $178.1 million, up 67% year over year and 3% quarter over quarter, with wireless solutions growing 12% sequentially [19] - Subscription business grew double digits, with SaaS annual recurring revenue reaching $184 million, up 13.4% year over year [19] - Total deferred recurring revenue grew 7% year over year to $578 million, reflecting strong momentum in the recurring revenue model [19] Market Data and Key Metrics Changes - The Americas region grew 19% year over year, while EMEA revenue grew 81% year over year [20] - APAC revenue was flat year over year, but bookings were up double digits [20] - K-12 bookings, including E Rate, grew double digits over both periods, indicating market share gains in this segment [22] Company Strategy and Development Direction - The company is focusing on expanding its footprint in larger enterprise customers and enhancing its competitive position against major players like Cisco and HP [8][9] - The introduction of Extreme Platform One aims to leverage AI for networking, driving automation and efficiency for enterprise customers [14][15] - The company is committed to strategic investments in R&D and marketing to support product innovation and market expansion [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained customer demand based on strong funnel generation and pipeline growth [8] - The company anticipates further market share gains and revenue growth for the full year, with expectations of increased margins and cash flow [17] - Management noted that the tariff situation is dynamic but currently has minimal impact on the business [36][39] Other Important Information - The company repurchased $13 million worth of shares during the quarter and authorized an additional $200 million for buybacks over the next three years [26] - The company transitioned to a net cash position of $3 million, a significant improvement from a net debt position of $15 million at the end of the previous year [27] Q&A Session Summary Question: Feedback from customers regarding tariffs and future outlook - Management indicated that there is minimal impact from tariffs currently, with customers showing minor early buying to mitigate potential price increases [32][36] Question: Competitive trends among major players - Management noted that HPE is struggling and losing market share, while Cisco remains strong but faces dissatisfaction from customers regarding complexity and cost [44][47] Question: Growth expectations for SaaS ARR - Management highlighted strong bookings for SaaS subscriptions, with expectations for growth driven by the adoption of Platform One [50][51] Question: Customer adoption of WiFi 7 - Management reported strong adoption of WiFi 7, with enterprises increasingly confident in using it for mission-critical solutions [69][71] Question: Regional demand and inventory planning - Management noted that demand is returning to the marketplace, particularly in the Americas, and that inventory levels are normalizing [78][100]