Calix Inc (CALX)
NYSE:CALX
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Calix
(NYSE:CALX)
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Rating:68Neutral
Price Target:
$55.00
▲(15.23% Upside)
Action:ReiteratedDate:02/05/26
The score is driven primarily by strong financial stability (low leverage) and solid cash-flow momentum, reinforced by a positive earnings outlook with improving visibility (record RPO and sequential growth guidance). These positives are tempered by weak current technicals (below key moving averages with negative MACD) and a stretched valuation (very high P/E with no dividend yield provided).
Positive Factors
Balance Sheet Strength
Very low debt-to-equity (~3% in 2025) and a sizable equity base ($859M vs. ~$1.06B assets) provide durable financial flexibility. This reduces refinancing risk, supports opportunistic buybacks/capex, and allows the firm to invest through industry cycles without stressing liquidity.
Negative Factors
Thin Profitability
Despite margin improvement at the gross level, operating and net margins are narrow, limiting internal reinvestment and buffering against cost shocks. Thin profitability constrains ability to scale sales/marketing investments without pressuring cash generation and makes returns sensitive to commodity or mix swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low debt-to-equity (~3% in 2025) and a sizable equity base ($859M vs. ~$1.06B assets) provide durable financial flexibility. This reduces refinancing risk, supports opportunistic buybacks/capex, and allows the firm to invest through industry cycles without stressing liquidity.
Read all positive factors
Calix (CALX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.24B
Dividend YieldN/A
Average Volume (3M)834.26K
Price to Earnings (P/E)197.7
Beta (1Y)1.00
Revenue Growth4.89%
EPS Growth55.80%
CountryUS
Employees1,820
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.39
Shares Outstanding65,607,666
10 Day Avg. Volume890,116
30 Day Avg. Volume834,258
Financial Highlights & Ratios
PEG Ratio-1.24
Price to Book (P/B)4.12
Price to Sales (P/S)3.54
P/FCF Ratio30.61
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue3.01
Enterprise Value/Gross Profit5.30
Enterprise Value/Ebitda72.89
Forecast
1Y Price Target
$75.00Price Target Upside57.13% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)1.78
Revenue Forecast (FY)$1.14B
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,...
How the Company Makes Money
Calix generates revenue through multiple streams primarily centered around its software and hardware products. The company sells access systems, including optical network terminals and fiber management solutions, which are critical for deploying h...
Calix Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Positive
The call highlights strong execution: record quarterly and annual revenue, record gross margin, rising RPOs, robust cash generation, a successful third-generation platform launch with >300 customers migrated, and a quantified BEAD opportunity ($1.0B–$1.5B). Near-term headwinds include overlapping cloud costs during platform transition, higher operating expenses to accelerate AI, memory/component cost risk, and multi-year timelines to monetize Tier 1/international markets. Management expects the near-term cost hits to be temporary and is projecting continued sequential revenue growth (Q1 guide midpoint +2%) and return to target operating model by end of 2026. Overall, positive operational and financial momentum outweighs the transitional and timing-related challenges.Positive Updates
Record Quarterly and Annual Revenue
Q4 revenue of $272M, up 3% sequentially and 32% year-over-year; full-year revenue surpassed $1.0B, a 20% increase vs. 2024.
Negative Updates
Near-Term Margin Pressure from Cloud Transition
Non-GAAP gross margin expected to face some near-term impact due to customer mix and overlapping cloud costs while transitioning to the third-generation platform (dual cloud running).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Annual Revenue
Q4 revenue of $272M, up 3% sequentially and 32% year-over-year; full-year revenue surpassed $1.0B, a 20% increase vs. 2024.
Read all positive updates
Company Guidance
Calix guided that it expects continued sequential revenue growth into Q1 2026 with revenue guidance of $275–281 million (midpoint ~2% above the prior quarter) after reporting record Q4 revenue of $272 million (+3% sequential, +32% YoY) and surpassing $1 billion in 2025 annual revenue (≈20% growth vs. 2024); backlog and visibility remain strong with RPO at a record $385 million (+9% seq, +18% YoY) and current RPO $152 million (+8% seq, +26% YoY), the company generated Q4 free cash flow of $40 million (11th consecutive quarter of 8‑figure FCF), ended the year with $388 million in cash and investments (+$48M seq, +$91M YoY), DSO of 35 days and inventory turns of 3, and deployed $17 million to repurchase 300,000 shares while the Board authorized an incremental $125 million buyback; management expects non‑GAAP gross margin to remain strong (Q4 was a record 58% — eighth quarter of improvement) but to face near‑term pressure from customer mix and overlapping dual‑cloud costs during the third‑generation platform transition, anticipates a sequential increase in non‑GAAP operating expenses in Q1 to accelerate AI development with a return to target operating‑expense model by the end of 2026, noted more than 300 customers have been migrated to the new platform (all migrations targeted by end of Q1), and quantified the BEAD opportunity for Calix at roughly $1.0–1.5 billion with appliance deliveries ramping later this year into 2027.Calix Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.00B | 831.52M | 1.04B | 867.83M | 679.39M |
| Gross Profit | 568.32M | 453.59M | 518.32M | 435.43M | 356.59M |
| EBITDA | 51.88M | -23.48M | 42.22M | 66.92M | 88.07M |
| Net Income | 17.88M | -29.75M | 29.32M | 41.01M | 238.38M |
Balance Sheet | |||||
| Total Assets | 1.06B | 939.27M | 941.87M | 884.84M | 742.03M |
| Cash, Cash Equivalents and Short-Term Investments | 388.10M | 297.09M | 220.35M | 241.72M | 204.34M |
| Total Debt | 25.51M | 8.02M | 11.56M | 19.60M | 20.70M |
| Total Liabilities | 199.30M | 158.33M | 222.88M | 205.27M | 173.60M |
| Stockholders Equity | 859.22M | 780.94M | 718.98M | 679.57M | 568.43M |
Cash Flow | |||||
| Free Cash Flow | 115.52M | 50.35M | 38.40M | 13.12M | 46.33M |
| Operating Cash Flow | 134.95M | 68.40M | 56.25M | 27.18M | 56.79M |
| Investing Cash Flow | -6.37M | -109.53M | -6.25M | -24.08M | -110.66M |
| Financing Cash Flow | -28.43M | 20.90M | -65.93M | 25.06M | 24.38M |
Calix Technical Analysis
Negative
47.73
Price Trends
51.04
Negative
52.91
Negative
55.78
Negative
Market Momentum
-0.95
Positive
40.94
Neutral
65.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CALX, the sentiment is Negative. The current price of 47.73 is below the 20-day moving average (MA) of 50.03, below the 50-day MA of 51.04, and below the 200-day MA of 55.78, indicating a bearish trend. The MACD of -0.95 indicates Positive momentum. The RSI at 40.94 is Neutral, neither overbought nor oversold. The STOCH value of 65.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $3.24B | 197.73 | 2.22% | ― | 4.89% | 55.80% | |
68 Neutral | $2.00B | 465.26 | 0.49% | ― | 12.14% | -19.29% | |
66 Neutral | $1.60B | 26.41 | 7.96% | ― | 1.47% | 1077.70% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $1.30B | -12.84 | -94.12% | ― | 9.47% | 16.97% | |
56 Neutral | $1.66B | 26.26 | 146.36% | ― | -1.17% | -597.89% | |
54 Neutral | $1.80B | 168.71 | 6.57% | ― | 7.36% | -40.62% |
* Technology Sector Average
CALX
Calix
47.73
14.09
41.88%
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Calix Corporate Events
Business Operations and StrategyStock Buyback
Calix Expands Share Repurchase Authorization to Support Flexibility
Positive
Jan 28, 2026
On January 28, 2026, Calix, Inc. announced that its board of directors had increased the authorization under its stock repurchase program by an additional $125 million, supplementing the $109.3 million that remained authorized as of December 31, 2...
Business Operations and StrategyExecutive/Board Changes
Calix Appoints John Durocher as Chief Operating Officer
Positive
Nov 17, 2025
On November 13, 2025, Calix, Inc. appointed John Durocher as Chief Operating Officer, effective November 16, 2025. Durocher, who joined Calix in 2023 as Chief Customer Officer, has a strong background in customer success and operational excellence...
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.