tiprankstipranks
Trending News
More News >
Calix Inc (CALX)
NYSE:CALX
Advertisement

Calix (CALX) AI Stock Analysis

Compare
881 Followers

Top Page

CALX

Calix

(NYSE:CALX)

Rating:65Neutral
Price Target:
$65.00
▲(6.49% Upside)
Calix's overall stock score is driven by strong technical momentum and positive earnings call insights, indicating potential for future growth. However, financial performance challenges and a negative valuation score due to current losses and lack of dividend yield temper the overall score.
Positive Factors
Customer Growth
Calix added 18 new customers in 2Q, indicating continued adoption of its platform offerings.
Earnings Performance
CALX delivered well ahead of consensus on results and guidance.
Revenue Expectations
Revenue guidance for 3Q25 is materially above expectations, suggesting management believes in the sustainability of the new quarterly revenue run-rate.
Negative Factors
International Sales
Soft international sales were impacted by strong shipments in the previous quarter to CityFibre in the UK.

Calix (CALX) vs. SPDR S&P 500 ETF (SPY)

Calix Business Overview & Revenue Model

Company DescriptionCalix, 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 MoneyCalix generates revenue primarily through the sale of its software and hardware products, along with subscription services associated with its cloud platform. Key revenue streams include the sale of access hardware, such as optical network terminals and routers, and ongoing subscription fees for software solutions that help service providers manage their networks and optimize service delivery. Additionally, Calix earns revenue from professional services that assist CSPs in deploying and managing their broadband networks. Significant partnerships with various telecommunications companies further enhance its market reach and contribute to its earnings.

Calix Earnings Call Summary

Earnings Call Date:Jul 21, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive, with significant revenue growth, strong gross margins, and successful investment in AI and platform development. Calix's strategic focus on expanding its customer base and enhancing its platform with AI is yielding favorable financial results and positioning the company for future growth. Challenges remain in terms of inventory management and geographic expansion, but these are being actively addressed.
Q2-2025 Updates
Positive Updates
Revenue Growth
Calix reported revenue of $242 million for the second quarter of 2025, which represented a 10% sequential quarterly growth. The company also provided a positive outlook for the third quarter with expected revenue between $243 million and $249 million.
Record Gross Margin and Free Cash Flow
Calix achieved a record non-GAAP gross margin of 56.8%, a 60 basis point sequential increase, and generated record free cash flow of $36 million.
RPO Growth
Record RPOs grew 2% sequentially to $347 million and increased 30% year-over-year, indicating strong demand for Calix's platform, cloud, and managed services model.
Investment in AI and New Platform Launch
Calix is investing in a third-generation platform incorporating agentic AI, with a planned launch in the second half of 2025. This aims to enhance operational efficiency and provide new revenue opportunities for customers.
Strong Balance Sheet
Calix ended the second quarter with record cash and investments of $299 million, even after utilizing $33 million for share repurchases.
New Customer Acquisition
Calix added 18 new BXP customers in the second quarter, mostly competitive takeaways, and signed a large new cloud customer.
Negative Updates
Inventory Turns
Inventory turns were at 3.4%, a slight decrease from 3.6% in the first quarter.
Supply Chain and Geographic Constraints
Calix faces geographic constraints due to data sovereignty and privacy rules, which they are addressing with new sovereign data centers.
Company Guidance
During the Calix Second Quarter 2025 Earnings Conference Call, the company provided robust guidance and shared several key metrics highlighting their performance and future outlook. Calix reported a 10% sequential revenue growth, reaching $242 million, with record RPOs growing 2% sequentially to $347 million, marking a 30% year-over-year increase. Their non-GAAP gross margin hit a record 56.8%, an increase of 60 basis points sequentially. The company also generated a record free cash flow of $36 million for the quarter, marking their ninth consecutive quarter with eight-digit free cash flow. Looking ahead, Calix projected a third-quarter revenue between $243 million and $249 million, suggesting a 2% sequential increase, and anticipated annual gross margin improvements at the higher end of their target financial model. Additionally, Calix is preparing for a significant launch of their third-generation platform in the second half of 2025, which is expected to further drive growth and operational efficiency through agentic AI and expanded service offerings.

Calix Financial Statement Overview

Summary
Calix demonstrates moderate revenue growth and strong gross profitability but faces operational and earnings challenges with negative EBIT and net margins. The balance sheet is robust, with low leverage and a strong equity position, though profitability metrics are impacted by recent losses. Cash flow generation shows improvement, indicating potential for future recovery.
Income Statement
45
Neutral
For TTM (Trailing-Twelve-Months), Calix shows a gross profit margin of 55.54% and a net profit margin of -3.09%, indicating strong gross profitability but negative net profitability. The revenue growth rate from 2024 to TTM is 4.53%, suggesting moderate growth. However, the EBIT and EBITDA margins are negative, -4.07% and -2.12% respectively, reflecting operational and earnings challenges.
Balance Sheet
72
Positive
Calix has a debt-to-equity ratio of 0.004, indicating low leverage and strong equity backing. The return on equity (ROE) is -3.48%, impacted by negative net income. The equity ratio stands at 83.87%, showing a solid equity base. Overall, the balance sheet suggests financial stability with minor profitability concerns.
Cash Flow
60
Neutral
The free cash flow growth rate is 42.06%, reflecting strong cash generation improvements. The operating cash flow to net income ratio is -3.27, and the free cash flow to net income ratio is -2.66, suggesting efficient cash management despite negative net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue869.19M831.52M1.04B867.83M679.39M541.24M
Gross Profit482.64M453.59M518.32M435.43M356.59M267.02M
EBITDA-18.47M-23.48M42.22M66.92M91.17M52.69M
Net Income-26.88M-29.75M29.32M41.01M238.38M33.48M
Balance Sheet
Total Assets921.41M939.27M941.87M884.84M742.03M427.35M
Cash, Cash Equivalents and Short-Term Investments298.97M297.09M220.35M241.72M204.34M133.79M
Total Debt2.95M8.02M11.56M12.39M12.38M12.95M
Total Liabilities148.73M158.33M222.88M205.27M173.60M147.03M
Stockholders Equity772.67M780.94M718.98M679.57M568.43M280.32M
Cash Flow
Free Cash Flow71.52M50.35M38.40M13.12M46.33M43.59M
Operating Cash Flow87.95M68.40M56.25M27.18M56.79M51.41M
Investing Cash Flow-56.63M-109.53M-6.25M-24.08M-110.66M-60.80M
Financing Cash Flow-39.53M20.90M-65.93M25.06M24.38M42.15M

Calix Technical Analysis

Technical Analysis Sentiment
Positive
Last Price61.04
Price Trends
50DMA
55.49
Positive
100DMA
49.57
Positive
200DMA
42.63
Positive
Market Momentum
MACD
1.33
Negative
RSI
65.20
Neutral
STOCH
67.93
Neutral
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 61.04 is above the 20-day moving average (MA) of 58.21, above the 50-day MA of 55.49, and above the 200-day MA of 42.63, indicating a bullish trend. The MACD of 1.33 indicates Negative momentum. The RSI at 65.20 is Neutral, neither overbought nor oversold. The STOCH value of 67.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CALX.

Calix Risk Analysis

Calix disclosed 41 risk factors in its most recent earnings report. Calix reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Calix Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$3.28B39.665.22%-0.54%626.94%
68
Neutral
$3.60B-3.15%13.24%-12.97%
66
Neutral
$3.34B42.3323.79%7.99%-28.47%
65
Neutral
$3.85B-3.52%-8.80%-657.91%
62
Neutral
$3.28B-80.55%9.74%22.36%
61
Neutral
$35.51B8.11-10.49%1.89%8.55%-8.72%
53
Neutral
$3.19B78.53-85.12%0.11%-817.49%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CALX
Calix
61.04
26.56
77.03%
BLKB
Blackbaud
66.35
-15.12
-18.56%
BL
BlackLine
53.07
5.15
10.75%
GTM
ZoomInfo Technologies
10.12
0.57
5.97%
NCNO
nCino
30.45
0.40
1.33%
ASAN
Asana
14.63
2.85
24.19%

Calix Corporate Events

Executive/Board Changes
Calix Mourns Loss of Chief Operations Officer
Negative
May 13, 2025

Calix announced the passing of its chief commercial operations officer, J. Matthew Collins, on May 7, 2025. Michael Weening, the company’s President and CEO, expressed deep regret and highlighted Collins’ significant impact on the company’s culture and customer relations over the past eight years, extending condolences to his family.

The most recent analyst rating on (CALX) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Calix stock, see the CALX Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2025