Core Insights - Calix has launched new SmartBiz and SmartMDU capabilities aimed at enhancing service providers' ability to serve small businesses and multi-dwelling units (MDUs) more effectively and efficiently [1][4][8] Product Innovations - The introduction of the GP5G plug-and-play 5G access point and GPS8P/GPS24P managed switches will provide automatic cellular backup and simplified network management for small businesses, ensuring business continuity and reducing operational costs [1][4] - New Wi-Fi 7 systems, including GigaPro 7p6 and GigaSpire 7u4, will enhance connectivity in MDUs, offering high-performance, low-latency Wi-Fi coverage [4][6] Market Demand - The National Multifamily Housing Council reports that 92% of residents consider free Wi-Fi in communal workspaces essential, highlighting the increasing importance of reliable broadband for both small businesses and MDUs [3] Operational Efficiency - Calix's SmartBiz and SmartMDU innovations are designed to simplify deployment, support, and management, allowing service providers to grow without complexity [3][8] - The modular Wi-Fi 7 designs and intelligent Calix Cloud management will facilitate property-wide deployment and streamline operations as service portfolios expand [6][8] Customer Support - Calix offers a Success organization that assists customers with network design, optimization, and tailored guidance to reduce time to revenue for new service launches [7]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $220 million, representing a 7% sequential growth and a 39% year-over-year increase in RPOs to $340 million [17][18] - Non-GAAP gross margin reached a record 56.2% in Q1, driven by customer mix and new subscriber wins [18] - Cash and investments totaled $282 million, with double-digit free cash flow generated for the eighth consecutive quarter [19][20] Business Line Data and Key Metrics Changes - The company added 16 new BSP customers in Q1, primarily through competitive takeaways, indicating strong demand for its platform [18] - The introduction of SmartBiz for small businesses and SmartMDU for multi-dwelling units expanded the customer base and service offerings [9][18] Market Data and Key Metrics Changes - Demand for broadband experiences remains strong and inelastic, with consumers prioritizing broadband over discretionary spending [12][44] - The company anticipates continued growth in demand through 2025, supported by its unique business model [11][12] Company Strategy and Development Direction - The company aims to differentiate itself from traditional speed-based network operators by focusing on experience-based broadband services [7][8] - The strategy includes leveraging marketing analytics to help customers reduce churn and grow revenue per subscriber [35][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of broadband demand despite potential economic downturns, citing historical trends during the pandemic [44][45] - The company raised its revenue guidance for Q2 2025 to between $221 million and $227 million, reflecting ongoing strong demand [21] Other Important Information - The board approved an additional $100 million for the stock repurchase program, indicating confidence in the company's financial health [23] - The company plans to keep operating expenses flat to slightly up in 2025, while gross margins are expected to improve by 100 to 200 basis points annually [22] Q&A Session Summary Question: Insights on macro spending environment and CapEx plans - Management noted that customers are continuing to invest appropriately in capital expenditures, driven by consumer and business demand [34][36] Question: Clarification on customer pull-forwards - Management clarified that the pull-forwards were not related to tariffs but were due to inherent business lumpiness [39][40] Question: Expectations for sequential revenue growth - Management confirmed expectations for continued sequential revenue growth, even with the pull-forward from a large customer [49] Question: Impact of tariffs on gross margins - Management stated that there was no impact from tariffs in Q1, and they will pass through any future costs without adding a profit margin [54][56] Question: Opportunities from DZS bankruptcy - Management expressed sympathy for affected customers but noted that they are offering support and assistance to those in need [102][103]