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Mar 31
Extreme Networks Q3 2025 Earnings Report
reported strong third quarter fiscal year 2025 financial results, marking the fourth consecutive quarter of sequential revenue growth
Key Takeaways
Extreme Networks reported robust financial results for Q3 FY25, with significant year-over-year revenue growth and improved profitability. The company saw strong execution, market recovery, and increased visibility driven by a robust funnel and traction with new commercial models.
Revenue grew 34.8% year-over-year to $285 million.
Non-GAAP diluted EPS was $0.21, compared to a loss of $0.19 in the prior year.
GAAP gross margin improved to 61.7% from 56.8% in the prior year.
Generated $24.2 million in free cash flow during the quarter.
Extreme Networks
Extreme Networks
Extreme Networks Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comSubscription and Support Revenue
CapyFin.com Forward Guidance
For the fourth quarter of fiscal 2025, the company is targeting total net revenue between $295.0 million and $305.0 million, with GAAP EPS between $0.02 and $0.07 and Non-GAAP EPS between $0.21 and $0.25. For the full fiscal year 2025, total net revenue is targeted between $1,128.0 million and $1,138.0 million.
Positive Outlook
- Targeting sequential revenue growth in Q4 FY25.
- Expected year-over-year topline growth for the full fiscal year.
- Anticipating earnings growth based on higher revenue outlook.
- Prudent expense management is expected to contribute to earnings and cash flow growth.
- Guidance suggests continued improvement in operating margins.
Challenges Ahead
- GAAP EPS guidance range is relatively wide.
- GAAP operating margin guidance is lower than the non-GAAP guidance.
- Forward-looking statements are subject to various risks and uncertainties.
- Reliance on third parties for components and manufacturing could impact results.
- Highly competitive business environment could pose challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income