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Calix Inc (CALX)
:CALX
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Calix (CALX) AI Stock Analysis

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CALX

Calix

(NYSE:CALX)

Rating:65Neutral
Price Target:
$60.00
▲(8.48%Upside)
Calix's overall stock score is driven by strong technical momentum and positive earnings call highlights, despite operational and valuation challenges. While the financial performance shows potential for recovery, the recent corporate event may pose short-term risks.
Positive Factors
Customer Expansion
Calix added 18 new customers in 2Q, indicating continued adoption of its platform offerings.
Financial Performance
CALX delivered well ahead of consensus on results and guidance.
Negative Factors
Competitive Environment
The trend towards an increasingly competitive broadband services market favors Calix.
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. is a provider of cloud and software platforms, systems, and services that focus on delivering broadband communications access solutions. The company operates primarily in the telecommunications sector, offering products and services that enable communications service providers (CSPs) to build and optimize networks, streamline operations, and enhance their offerings to end-users. Calix's core solutions are designed to facilitate the deployment of high-speed broadband services, enhance operational efficiency, and improve customer experiences.
How the Company Makes MoneyCalix generates revenue through a combination of product sales and subscription-based services. Its primary revenue streams include the sale of its cloud and software platforms, such as the Calix Cloud, which offers analytics and management tools for broadband networks. Additionally, the company earns from hardware sales, including network access systems and modules that CSPs use to deliver high-speed internet services. Calix also provides professional services, training, and support for its platforms and systems, contributing to its revenue. Strategic partnerships with CSPs and technology vendors play a crucial role in expanding its market reach and driving sales. The company's revenue model is bolstered by long-term contracts and recurring revenue from its subscription services, providing a stable financial foundation.

Calix Earnings Call Summary

Earnings Call Date:Jul 21, 2025
(Q2-2025)
|
% Change Since: 2.94%|
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Positive
The earnings call showcased strong financial performance with significant revenue growth, record gross margins, and robust free cash flow. The company is expanding its capabilities with the introduction of a third-generation platform and a new large cloud customer. However, challenges remain with supply chain stability, the slow progress of the BEAD program, and past geographical constraints. Despite these challenges, the overall sentiment is positive due to the outweighing highlights of financial success and strategic advancements.
Q2-2025 Updates
Positive Updates
Exceptional Revenue Growth
Revenue for the second quarter was $242 million, representing a 10% sequential quarterly revenue growth.
Record Gross Margin
The company achieved a record non-GAAP gross margin of 56.8%, a 60 basis point sequential increase.
Strong RPO Growth
Record RPOs grew 2% sequentially to $347 million and increased 30% year-over-year.
Free Cash Flow Achievement
Record free cash flow of $36 million was generated in the quarter, marking the ninth consecutive quarter generating 8-digit free cash flow.
Large Cloud Customer Acquisition
Calix enabled 1,116 broadband providers and added a new large cloud customer in the second quarter.
Introduction of Third Generation Platform
Investments in a third-generation platform began, with preproduction starting in the second quarter for a second half launch in 2025.
Negative Updates
Supply Chain and Manufacturing Challenges
Though the current supply situation is stable, it requires ongoing attention and adaptation, with potential future changes to manufacturing processes.
Slow BEAD Program Progress
The BEAD program is still in a state of flux, with uncertainty around when it will be sorted out and no current impact on Calix's numbers.
Geographic Constraint Limitations
Data sovereignty and privacy rules have historically limited Calix's expansion into new markets, though steps are being taken to address these constraints.
Company Guidance
During the Calix Second Quarter 2025 Earnings Conference Call, the company provided guidance with a revenue outlook for the third quarter of 2025 projected between $243 million and $249 million, indicating a 2% sequential increase. The second quarter of 2025 saw revenue of $242 million, marking a 10% sequential quarterly growth. Record non-GAAP gross margins were reported at 56.8%, a 60 basis point increase from the previous quarter, attributed to favorable customer mix and continued platform adoption. The company's record Remaining Performance Obligations (RPOs) grew 2% sequentially to $347 million and 30% year-over-year, while current RPOs increased 5% sequentially to $134 million, also up 30% year-over-year. Calix's free cash flow reached a record $36 million, marking the ninth consecutive quarter of 8-digit free cash flow. Additionally, the company ended the quarter with record cash and investments totaling $299 million, despite $33 million used for share repurchases. Looking ahead, Calix anticipates annual gross margin improvement to reach the higher end of its target model, with an increase of 100 to 200 basis points for 2025. The company plans to maintain constrained operating expenses until they align with the target financial model, although slight increases are expected due to strategic investments in sales and marketing.

Calix Financial Statement Overview

Summary
Calix's financial performance is mixed. The balance sheet is strong with no debt and a high equity ratio. However, the income statement shows declining revenue and negative profit margins, indicating operational challenges.
Income Statement
46
Neutral
Calix's income statement reveals some concerning trends with declining revenue and profitability. The Gross Profit Margin for TTM is approximately 54.96%, which is relatively stable. However, the Net Profit Margin has turned negative to -4.2%, indicating losses in the current period. Revenue has been declining, with a TTM revenue of $825.45M compared to $831.52M in the previous annual report, reflecting a decrease of approximately 0.73%. EBIT and EBITDA margins are negative, showing operational challenges. The company needs to address its declining revenue and negative profit margins to improve its financial health.
Balance Sheet
75
Positive
Calix has a strong balance sheet characterized by no debt and a high equity ratio of 85.83% for TTM. The Debt-to-Equity Ratio is 0, and the Return on Equity (ROE) is approximately -4.51%, indicating a loss-making period. The equity cushion provides stability, but operational losses have impacted the ROE negatively. The company maintains a robust financial position with significant cash reserves, which could support future strategic initiatives or cushion against operational setbacks.
Cash Flow
68
Positive
The cash flow analysis shows a positive trend with operating cash flow improving to $70.92M in TTM, up from $68.4M in the previous annual report. The Free Cash Flow has grown to $52.27M, reflecting a growth of approximately 3.82% from the prior period. The Operating Cash Flow to Net Income ratio is positive, indicating effective cash generation relative to reported net losses. However, the Free Cash Flow to Net Income ratio is skewed due to the negative net income, highlighting the need to improve profitability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue831.52M1.04B867.83M679.39M541.24M
Gross Profit453.59M518.32M435.43M356.59M267.02M
EBITDA-23.48M42.22M66.92M91.17M52.69M
Net Income-29.75M29.32M41.01M238.38M33.48M
Balance Sheet
Total Assets939.27M941.87M884.84M742.03M427.35M
Cash, Cash Equivalents and Short-Term Investments297.09M220.35M241.72M204.34M133.79M
Total Debt8.02M11.56M12.39M12.38M12.95M
Total Liabilities158.33M222.88M205.27M173.60M147.03M
Stockholders Equity780.94M718.98M679.57M568.43M280.32M
Cash Flow
Free Cash Flow50.35M38.40M13.12M46.33M43.59M
Operating Cash Flow68.40M56.25M27.18M56.79M51.41M
Investing Cash Flow-109.53M-6.25M-24.08M-110.66M-60.80M
Financing Cash Flow20.90M-65.93M25.06M24.38M42.15M

Calix Technical Analysis

Technical Analysis Sentiment
Positive
Last Price55.31
Price Trends
50DMA
49.35
Positive
100DMA
42.70
Positive
200DMA
39.58
Positive
Market Momentum
MACD
1.71
Negative
RSI
68.98
Neutral
STOCH
78.98
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 55.31 is above the 20-day moving average (MA) of 52.62, above the 50-day MA of 49.35, and above the 200-day MA of 39.58, indicating a bullish trend. The MACD of 1.71 indicates Negative momentum. The RSI at 68.98 is Neutral, neither overbought nor oversold. The STOCH value of 78.98 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 39 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$3.52B26.0344.83%8.93%102.77%
71
Outperform
$3.61B89.572.23%-3.12%-37.59%
67
Neutral
$3.59B-2.75%13.39%16.12%
65
Neutral
$3.61B-3.52%-8.80%-657.91%
64
Neutral
$3.52B-83.36%9.84%13.74%
63
Neutral
$34.70B4.89-11.39%1.66%5.53%-19.00%
54
Neutral
$3.17B78.53-101.31%2.07%-1519.89%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CALX
Calix
55.31
18.63
50.79%
BLKB
Blackbaud
65.25
-14.73
-18.42%
BL
BlackLine
56.51
8.69
18.17%
GTM
ZoomInfo Technologies
10.99
-0.60
-5.18%
NCNO
nCino
30.66
-2.88
-8.59%
ASAN
Asana
14.94
-0.43
-2.80%

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.

Executive/Board ChangesShareholder Meetings
Calix Approves Key Proposals at Annual Meeting
Neutral
May 9, 2025

On May 8, 2025, Calix, Inc. held its annual stockholders’ meeting where several key proposals were approved. The stockholders elected three Class III directors to the Board, approved an increase in shares under the 2019 Equity Incentive Award Plan, and ratified the selection of KPMG LLP as the independent accounting firm for 2025. These decisions are expected to impact the company’s governance and financial strategies moving forward.

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: Jul 24, 2025