Calix (CALX) AI Stock Analysis

• Market Cap: $2.71B
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -18.75%
• EPS Growth: -256.14%
• Country: US
• Employees: 1,820
• Sector: Technology
• Sector Strength: 65
• Industry: Software - Application
• EPS (TTM): 0.19
• Shares Outstanding: 64,820,250
• 10 Day Avg. Volume: 1,488,177
• 30 Day Avg. Volume: 1,010,569
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.49
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $48.83
• Price Target Upside: 13.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

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

Earnings

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

Growth Opportunities

Recent wins from PE-backed Tier 2 operators demonstrate an important trend driving share expansion up-market and revenue upside.

Market Position

An improving competitive environment and robust spending by business enterprises are increasing CALX's U.S. market share.

Negative Factors

Market Concerns

A slowing/maturing end market remains a concern.

Stock Performance

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

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'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. Cash flow generation remains solid, providing some cushion.

Income Statement

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

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

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.

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
-23.48M	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: 43.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 43.18 is above the 20-day moving average (MA) of 38.64, above the 50-day MA of 35.91, and above the 200-day MA of 36.53, indicating a bullish trend. The MACD of 2.11 indicates Negative momentum. The RSI at 74.35 is Negative, neither overbought nor oversold. The STOCH value of 93.68 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	$2.61B	47.09	12.70%	1.15%	12.85%	-16.89%
RNG	69 Neutral	$2.34B	―	16.58%	―	7.78%	70.43%
CALX	66 Neutral	$2.71B	―	-4.59%	―	-18.75%	-256.14%
FORM	66 Neutral	$2.26B	42.60	5.74%	―	15.33%	-47.04%
Sector *	60 Neutral	$10.96B	10.28	-6.73%	2.97%	7.74%	-12.45%
VIAV	60 Neutral	$2.01B	428.10	0.71%	―	3.34%	―
AMBA	47 Neutral	$2.11B	―	-20.89%	―	25.78%	32.95%

Calix Corporate Events

Calix Approves Key Proposals at Annual Meeting

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.

Spark’s Take on CALX Stock

According to Spark, TipRanks’ AI Analyst, CALX is a Neutral.

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.

To see Spark’s full report on CALX stock, click here.

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.