Executive Summary

Extreme Networks delivered a clean top- and bottom-line beat: revenue $307.0M and non-GAAP EPS $0.25, marking the fifth straight quarter of sequential growth; revenue rose 19.6% YoY and 7.9% QoQ, and SaaS ARR accelerated to $207.6M (+24.4% YoY). Management highlighted momentum in EMEA and APAC and record bookings in APAC, aided by wins in Japanese government and high-density venue deployments .
Q4 revenue exceeded the high end of guidance and EPS landed at the high end; non-GAAP gross margin was stable at 62.3%, and non-GAAP operating margin expanded to 15.2% from 14.1% in Q3 .
FY26 outlook introduced: FQ1’26 revenue $292–$300M (non-GAAP EPS $0.20–$0.23) and FY26 revenue $1.228–$1.238B; management expects a re-acceleration of full-year revenue growth with higher earnings and cash flow .
Stock-relevant catalysts: early customer interest in Platform ONE (GA in July) with expected impact ramping in 2H, Wi‑Fi 7 mix at 30% of wireless units, strong APAC traction, and competitive disruption from HPE–Juniper and Cisco partner program changes potentially driving share gains .

What Went Well and What Went Wrong

What Went Well
- Fifth straight quarter of sequential growth; Q4 revenue topped guidance high end; non-GAAP EPS at high end; strong free cash flow of $75.3M, the highest since 2023. “We also delivered strong operating margins and free cash flow” (CFO) .
- SaaS ARR rose to $207.6M (+24.4% YoY), with non-GAAP operating margin expanding to 15.2% (from 14.1% in Q3) as Platform ONE GA and larger upmarket wins bolster momentum .
- Regional strength: record APAC bookings; EMEA revenue +21% YoY; notable wins include Japanese government, MetLife Stadium, and ENAIRE. “This was our largest bookings quarter ever in Asia Pac” (CFO) .
What Went Wrong
- GAAP still negative in Q4 (loss per share $(0.06)), reflecting elevated items such as litigation charges ($22.0M) and system transition costs ($4.6M); GAAP operating margin at (0.4)% .
- Americas growth lagged (+4% YoY vs. stronger EMEA/APAC), implying continued dependence on international momentum for near-term outperformance .
- Platform ONE contribution to ARR is still limited at GA, with management expecting meaningful migrations and revenue impact primarily in the second half of FY26; near-term ARR acceleration depends on execution of trials and migrations .

Financial Results

P&L snapshot

Metric	Q2 2025	Q3 2025	Q4 2025
Revenue ($M)	$279.4	$284.5	$307.0
GAAP EPS ($)	$0.06	$0.03	$(0.06)
Non-GAAP EPS ($)	$0.21	$0.21	$0.25
GAAP Gross Margin (%)	62.7%	61.7%	61.6%
Non-GAAP Gross Margin (%)	63.4%	62.3%	62.3%
Non-GAAP Operating Margin (%)	14.7%	14.1%	15.2%

Revenue breakdown

Revenue Mix ($M)	Q2 2025	Q3 2025	Q4 2025
Product	$172.3	$178.1	$191.9
Subscription & Support	$107.1	$106.4	$115.1
Total	$279.4	$284.5	$307.0

KPIs and balance sheet items

KPI / Balance ($M)	Q2 2025	Q3 2025	Q4 2025
SaaS ARR	$181.1	$184.0	$207.6
Free Cash Flow	$16.1	$24.2	$75.3
Net Cash (Debt)	$(14.7)	$3.0	$51.7
Deferred Revenue – Current	$312.1	$311.8	$325.1
Deferred Revenue – Non-current	$277.4	$276.9	$292.4

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance / Actual	Change
Revenue ($M)	Q4 2025	$295–$305	$307.0 actual	Exceeded high end
Non-GAAP EPS ($)	Q4 2025	$0.21–$0.25	$0.25 actual	At high end
Non-GAAP Gross Margin (%)	Q4 2025	61.8–62.8	62.3 actual	In range
Non-GAAP Operating Margin (%)	Q4 2025	13.3–15.3	15.2 actual	At high end
Revenue ($M)	Q1 2026	N/A	$292–$300 (GAAP & non-GAAP)	New
Non-GAAP EPS ($)	Q1 2026	N/A	$0.20–$0.23	New
Non-GAAP Gross Margin (%)	Q1 2026	N/A	61.9–62.3	New
Non-GAAP Operating Margin (%)	Q1 2026	N/A	12.7–14.5	New
Revenue ($B)	FY 2026	N/A	$1.228–$1.238	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4 2025)	Trend
AI/Platform ONE	Vision announced in Q2; “Platform ONE” highlighted as holistic AI; ~100 pre-orders by Q3	GA in July; customers trialing; expected meaningful impact in 2H FY26; strong analyst/ customer feedback	Strengthening adoption pipeline
MSP program	Early traction in Q2; 48 MSP partners in Q3	Program doubled to 53; fully automated billing; early innings but growing	Expanding
Regional trends	Market recovery; marquee customer wins (PHL, Taylor Wessing, city/venues)	Record APAC bookings; EMEA +21% YoY; Americas +4% YoY	Improving ex-US
Product performance	—	Wi‑Fi 7 = 30% of wireless units; supports higher product margin trajectory	Mix tailwind
Tariffs/macro	Recovery in enterprise networking noted	Minimal tariff impact; categories exempt; no pull-forward effect	Stable
Competitive landscape	Improved win rates vs larger competitors; multiple displacements	Opportunities from HPE–Juniper integration and Cisco partner changes; upmarket pipeline larger than ever	Favorable disruption

Management Commentary

“Q4 revenue grew 20 percent year-over-year… Five consecutive quarters of revenue growth and ARR jumping 24 percent year-over-year are clear indicators that our subscription model is gaining traction.” – Ed Meyercord, CEO .
“Platform ONE is the first generally available AI for networking platform… We are well-positioned to accelerate growth, gain market share, and lead this next wave of AI-driven innovation.” – Ed Meyercord, CEO .
“Revenue exceeded the high end of our guidance range… best bookings quarter in the past two years… Wi‑Fi 7 adoption… strong performance in APAC… EMEA revenue grew 21% YoY.” – Kevin Rhodes, CFO .
“We expect growth in fiscal ’26 to accelerate… translate to higher earnings and cash flow.” – Kevin Rhodes, CFO .

Q&A Highlights

Sustainability of EMEA/APAC: Management expects momentum to continue, citing stabilizing politics in EMEA and strategic wins/partner traction in Japan supporting APAC strength .
Platform ONE contribution: Limited in Q4; meaningful ARR and migration impact expected primarily in 2H FY26 as trials convert; near-term benefit is improved win rates and upmarket engagement .
MSP ramp: Now 53 partners; platform features (consumption billing, pooled licensing, multitenancy) attractive; targeting large carriers though none onboarded yet; economics expected to improve as deployments scale .
Competitive dynamics: Anticipated disruption from HPE–Juniper synergies and Cisco partner program changes yielding opportunities and inbounds; upmarket pipeline expanding .
Margins and mix: Product gross margin targeted to move from ~58% toward 60% aided by Wi‑Fi 7 mix and lower freight costs; Wi‑Fi 7 was 30% of wireless units in Q4 .
Vertical mix: SLED ~40% of revenue; hospitality/venues, retail/transportation, healthcare, manufacturing around ~10% each .

Estimates Context

Q4 beat on both revenue and EPS; consistent beat pattern through Q2–Q4.

Metric	Q2 2025	Q3 2025	Q4 2025
Revenue Consensus Mean ($M)*	277.1	279.9	299.5
Revenue Actual ($M)	279.4	284.5	307.0
Revenue Surprise ($M)*	+2.3	+4.6	+7.5
Primary EPS Consensus Mean ($)*	0.175	0.182	0.222
Non-GAAP EPS Actual ($)	0.21	0.21	0.25
EPS Surprise ($)*	+0.04	+0.03	+0.03

Values retrieved from S&P Global.*

Key Takeaways for Investors

Execution inflection: Extreme posted five straight sequential revenue increases with expanding non-GAAP operating margin (15.2%), signaling operating leverage as ARR scales and mix shifts to Wi‑Fi 7/subscriptions .
Demand durability: Record APAC bookings and EMEA growth (+21% YoY) point to sustained international momentum; Americas pipeline improving into FY26 per management .
AI-platform optionality: Platform ONE is GA and generating strong interest; while near-term ARR uplift is modest, 2H FY26 migrations could accelerate recurring growth and retention .
Competitive share gains: Disruption from HPE–Juniper and Cisco’s partner changes may catalyze further displacement opportunities; Extreme’s fabric/AI differentiation is resonating upmarket .
Strong cash generation and balance sheet: Q4 free cash flow of $75.3M and net cash of $51.7M increase financial flexibility for buybacks and growth investments .
Guidance sets a constructive bar: FQ1’26 revenue $292–$300M and FY26 $1.228–$1.238B embed a re-acceleration narrative; execution on Platform ONE conversions and MSP expansion are key swing factors .
Watch items: GAAP losses driven by litigation and system transition costs; regional mix (Americas lagging) and timing of Platform ONE monetization remain focal points for estimate revisions .

Appendix: Additional Data and Disclosures

Selected Q4 detail (GAAP to Non-GAAP drivers): litigation charges $22.0M, system transition costs $4.6M, share-based comp $20.7M; non-GAAP net income $33.5M ($0.25) . Free cash flow reconciliation: CFO defined and provided calculation; Q4 FCF $75.3M . Net cash defined as cash and equivalents minus gross debt; Q4 net cash $51.7M .

All financials, guidance, and commentary are sourced from the company’s Q4 FY2025 8-K/press release and earnings call transcript .

EXTREME NETWORKS INC (EXTR)·Q4 2025 Earnings Summary