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Dec 31, 2025
Extreme Networks Q2 2026 Earnings Report
Extreme Networks reported strong results for Q2 2026, exceeding expectations in both revenue and profitability.
Key Takeaways
Extreme Networks delivered its seventh consecutive quarter of sequential revenue growth, with revenue up 14% year-over-year. Both GAAP and non-GAAP earnings improved, and the company ended the quarter with a significantly stronger net cash position.
Revenue reached $317,900,000, marking a 14% year-over-year increase.
Non-GAAP EPS rose to $0.26, up from $0.21 in the same quarter last year.
SaaS ARR climbed to $226,800,000, up 25.2% year-over-year.
The company ended the quarter with $47,300,000 in net cash, reversing a net debt position from a year ago.
Revenue by Segment
Forward Guidance
Extreme Networks is forecasting Q3 2026 revenue between $309.1M and $314.1M, with non-GAAP EPS between $0.23 and $0.25. FY26 revenue guidance has been raised, and non-GAAP EPS is expected between $0.98 and $1.02.
Positive Outlook
- Raised full-year FY26 revenue guidance to $1.262B–$1.270B.
- Q3 2026 revenue guidance remains strong at up to $314.1M.
- Q3 2026 non-GAAP EPS projected up to $0.25.
- Non-GAAP operating margin expected between 13.6% and 14.8% in Q3.
- Maintains solid cash position with $219.8M in cash and equivalents.
Challenges Ahead
- GAAP gross margin expected to decline slightly to 60.4%–60.8%.
- GAAP operating margin projected to be low at 2.8%–4.1%.
- Non-GAAP gross margin is expected to remain below prior-year levels.
- Guidance implies flat to slightly down EPS on a GAAP basis ($0.03–$0.06).
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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