Calix (CALX) AI Stock Analysis

• Market Cap: $2.57B
• Dividend Yield: N/A
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -18.75%
• EPS Growth: -256.14%
• Country: US
• Employees: 1,820
• Sector: Technology
• Sector Strength: 62
• Industry: Software - Application
• EPS (TTM): -0.52
• Shares Outstanding: 64,820,250
• 10 Day Avg. Volume: 1,377,640
• 30 Day Avg. Volume: 1,002,119
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.88
• Price to Cash Flow (P/CF): 38.90
• P/FCF Ratio: 58.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $51.71
• Price Target Upside: 30.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Calix's overall stock score reflects a strong balance sheet and positive earnings call insights, which are offset by operational challenges and a challenging valuation. The technical indicators show upward momentum, adding a positive note. To improve its score, Calix needs to address revenue declines and improve profitability while leveraging its strong financial position for growth.

Positive Factors

Financial Performance

CALX delivered strong results with revenue and EPS above consensus, showcasing the effectiveness of its software-centric model.

Market Position

Reduced competitive concerns and a renewed focus on fiber deployments uniquely position CALX to benefit from the rural fiber build.

Negative Factors

Share Repurchases

Share repurchases were uninspiring, with only $7 million repurchased despite the stock trading down below $30 at one point.

Stock Compensation Expense

It's hard to justify a bigger premium given the size of their stock compensation expense.

Calix Business Overview & Revenue Model

Company Description

Calix, Inc., together with its subsidiaries, provides cloud and software platforms, and systems and services in the United States, rest of Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company's cloud and software platforms, and systems and services enable broadband service providers (BSPs) to provide a range of services. It provides Calix Cloud platform, a role-based analytics platform comprising Calix Marketing Cloud, Calix Support Cloud, and Calix Operations Cloud, which are configurable to display role-based insights and enable BSPs to anticipate and target new revenue-generating services and applications through mobile application. The company also offers EXOS, a carrier class premises operating system and fully integrated with its GigaSpire family of systems to be ready for deployment as a complete subscriber experience solutions for BSP's residential and business subscribers; and AXOS, a software platform to access edge of the network by its architecture and operations. It offers its products through its direct sales force and resellers. Calix, Inc. was incorporated in 1999 and is headquartered in San Jose, California.

How the Company Makes Money

Calix generates revenue primarily through the sale of its software platforms, systems, and professional services to broadband service providers. The company's revenue streams include the sale of access systems and software licenses, as well as services such as maintenance, support, and training. Calix also earns money through subscriptions to its cloud-based solutions, which provide network management, analytics, and subscriber experience management tools. Key factors contributing to its earnings include the increasing demand for high-speed internet and the ongoing digital transformation efforts by broadband service providers. Calix's strategic partnerships with leading telecommunications companies further bolster its revenue by expanding its market reach and facilitating the adoption of its solutions.

Calix Financial Statement Overview

Summary

Calix shows resilience in managing debt with a strong balance sheet and zero debt. However, operational challenges are evident with recent losses and fluctuating revenue. The company needs to focus on restoring profitability and achieving consistent cash flow growth to enhance its financial health.

Income Statement

Calix experienced fluctuating revenue with a notable decline from 2023 to 2024. The gross profit margin remains healthy; however, the company reported a negative EBIT and net income in 2024, indicating operational challenges. Previous years showed profitability, suggesting potential recovery if managed effectively.

Balance Sheet

The balance sheet is strong with zero debt in 2024, enhancing financial stability. The equity ratio is robust, indicating high asset coverage by equity. Despite these strengths, the declining stockholders' equity from 2023 suggests potential risks in maintaining financial health.

Cash Flow

Operating cash flow improved in 2024, and the company maintains positive free cash flow, indicating efficient management of cash resources. However, the free cash flow growth rate is inconsistent, reflecting potential volatility in cash generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
831.52M	1.04B	867.83M	679.39M	541.24M
	Gross Profit
453.59M	518.32M	435.43M	356.59M	267.02M
	EBIT
-43.03M	25.59M	52.61M	73.94M	36.85M
	EBITDA
-43.03M	42.22M	66.92M	91.17M	52.69M
	Net Income Common Stockholders
-29.75M	29.32M	41.01M	238.38M	33.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
297.09M	220.35M	241.72M	204.34M	133.79M
	Total Assets
939.27M	941.87M	884.84M	742.03M	427.35M
	Total Debt
8.02M	11.56M	12.39M	12.38M	12.95M
	Net Debt
-35.14M	-51.85M	-66.68M	-38.96M	-67.86M
	Total Liabilities
158.33M	222.88M	205.27M	173.60M	147.03M
	Stockholders Equity
780.94M	718.98M	679.57M	568.43M	280.32M
Cash Flow		Free Cash Flow
50.35M	38.40M	13.12M	46.33M	43.59M
	Operating Cash Flow
68.40M	56.25M	27.18M	56.79M	51.41M
	Investing Cash Flow
-109.53M	-6.25M	-24.08M	-110.66M	-60.80M
	Financing Cash Flow
20.90M	-65.93M	25.06M	24.38M	42.15M

Calix Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CALX, the sentiment is Positive. The current price of 39.62 is above the 20-day moving average (MA) of 34.60, above the 50-day MA of 35.37, and above the 200-day MA of 36.23, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 65.68 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CALX.

Calix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRGS	78 Outperform	$2.54B	45.84	12.70%	1.18%	12.85%	-16.89%
CALX	66 Neutral	$2.57B	―	-4.59%	―	-18.75%	-256.14%
FORM	66 Neutral	$2.18B	31.94	7.50%	―	15.16%	-15.16%
RNG	62 Neutral	$2.28B	―	16.58%	―	8.99%	63.84%
VIAV	59 Neutral	$2.33B	―	-5.53%	―	-0.67%	-856.71%
Sector *	59 Neutral	$10.72B	10.22	-6.67%	3.02%	7.42%	-11.38%
AMBA	47 Neutral	$2.02B	―	-20.89%	―	25.78%	32.95%

Calix Corporate Events

Calix Appoints Mike Berry to Board Amid Strategic Shift

On March 21, 2025, Ellie Fields announced she would not seek re-election to the Calix board of directors, as she plans to focus on an AI startup. Calix has nominated Mike Berry, a seasoned finance executive with experience at companies like NetApp, to join the board. Berry’s expertise is expected to support Calix’s growth and innovation in the broadband industry, aligning with its strategy to expand its platform, cloud, and managed services model. This transition reflects Calix’s commitment to leveraging industry veterans to enhance its market positioning and drive long-term success.