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Jun 30
Extreme Networks Q4 2025 Earnings Report
Extreme Networks reported strong financial results for its fourth quarter and fiscal year ended June 30, 2025, with significant year-over-year revenue growth and SaaS ARR increase, driven by strong execution and demand for their solutions.
Key Takeaways
Extreme Networks concluded Q4 2025 with substantial momentum, achieving its fifth consecutive quarter of sequential revenue growth, up 20% year-over-year to $307.0 million. SaaS ARR also saw a significant increase of 24% year-over-year, reaching $207.6 million. The company reported a GAAP diluted loss per share of $0.06 and a non-GAAP diluted EPS of $0.25, alongside strong gross and operating margins, indicating effective expense management and a successful subscription model transition.
Q4 2025 revenue reached $307.0 million, marking a 20% increase year-over-year and the fifth consecutive quarter of sequential growth.
SaaS Annual Recurring Revenue (ARR) grew by 24% year-over-year to $207.6 million, demonstrating strong traction in their subscription model.
Non-GAAP diluted EPS for Q4 2025 was $0.25, a significant improvement compared to a non-GAAP diluted loss per share of $0.08 in the prior year.
The company ended Q4 with a strong cash balance of $231.7 million and net cash of $51.7 million, reflecting prudent expense management and strong cash flow generation.
Extreme Networks
Extreme Networks
Extreme Networks Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comSubscription and Support Revenue
CapyFin.com Forward Guidance
For Q1 fiscal 2026, Extreme Networks targets total net revenue between $292.0 million and $300.0 million, with non-GAAP diluted EPS projected to be between $0.20 and $0.23. For the full fiscal year 2026, the company anticipates total net revenue between $1,228.0 million and $1,238.0 million, expecting a re-acceleration of overall revenue growth, higher earnings, and increased cash flow.
Positive Outlook
- Expected re-acceleration of overall revenue growth for the full fiscal year 2026.
- Anticipated higher earnings and cash flow in the new fiscal year.
- Strong Q1 FY26 non-GAAP operating margin guidance between 12.7% and 14.5%.
- Continued momentum from the subscription model, as indicated by SaaS ARR growth.
- Strategic positioning in AI innovation with Extreme Platform ONE expected to drive market share gains.
Challenges Ahead
- GAAP diluted EPS for Q1 FY26 is projected to be between -$0.03 and $0.02, indicating potential for a GAAP loss.
- The company operates in a highly competitive business environment for network switching equipment and cloud management.
- Potential for delays in the development or introduction of new technology and products.
- Risks related to global macroeconomic and business trends could impact financial results.
- Dependency on third parties for certain components and manufacturing of products.
Revenue & Expenses
Visualization of income flow from segment revenue to net income