Calix (CALX) AI Stock Analysis

• Market Cap: $3.43B
• Dividend Yield: N/A
• Average Volume (3M): 582.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: -18.75%
• EPS Growth: -256.14%
• Country: US
• Employees: 1,820
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 0.19
• Shares Outstanding: 64,820,250
• 10 Day Avg. Volume: 713,337
• 30 Day Avg. Volume: 582,949
• PEG Ratio: -1.30
• Price to Book (P/B): 6.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 339.43
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 1.25
• Enterprise Value/Gross Profit: 9.66
• Enterprise Value/Ebitda: -73.60
• 1Y Price Target: $49.50
• Price Target Upside: -6.44% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: $54.00 ▲(2.06%Upside)

Calix's overall stock score reflects a strong technical outlook and positive earnings call guidance, which are offset by financial and valuation concerns. The stable cash flow and strategic board appointment provide some balance, but profitability and valuation issues remain significant challenges.

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

Market Concerns

A slowing/maturing end market remains a concern.

Stock Repurchase

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. 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 Money

Calix 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 Financial Statement Overview

Summary

Calix has a strong balance sheet with no debt and a high equity ratio, but faces income challenges with declining revenues and negative profit margins. Cash flow generation remains solid, providing a cushion for the company. Improvement is needed in revenue and profit to enhance financial standing.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	825.45M	831.52M	1.04B	867.83M	679.39M	541.24M
Gross Profit	453.73M	453.59M	518.32M	435.43M	356.59M	267.02M
EBITDA	-28.13M	-23.48M	42.22M	66.92M	91.17M	52.69M
Net Income	-34.64M	-29.75M	29.32M	41.01M	238.38M	33.48M
Balance Sheet
Total Assets	917.12M	939.27M	941.87M	884.84M	742.03M	427.35M
Cash, Cash Equivalents and Short-Term Investments	282.31M	297.09M	220.35M	241.72M	204.34M	133.79M
Total Debt	7.04M	8.02M	11.56M	12.39M	12.38M	12.95M
Total Liabilities	149.95M	158.33M	222.88M	205.27M	173.60M	147.03M
Stockholders Equity	767.17M	780.94M	718.98M	679.57M	568.43M	280.32M
Cash Flow
Free Cash Flow	52.27M	50.35M	38.40M	13.12M	46.33M	43.59M
Operating Cash Flow	70.92M	68.40M	56.25M	27.18M	56.79M	51.41M
Investing Cash Flow	-101.82M	-109.53M	-6.25M	-24.08M	-110.66M	-60.80M
Financing Cash Flow	-15.31M	20.90M	-65.93M	25.06M	24.38M	42.15M

Calix Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.91
• 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 52.91 is above the 20-day moving average (MA) of 49.27, above the 50-day MA of 46.10, and above the 200-day MA of 38.55, indicating a bullish trend. The MACD of 2.02 indicates Negative momentum. The RSI at 78.91 is Negative, neither overbought nor oversold. The STOCH value of 89.65 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
FORM	74 Outperform	$2.80B	52.55	5.74%	―	15.33%	-47.04%
PRGS	72 Outperform	$2.35B	41.69	13.48%	1.30%	22.10%	-20.37%
CALX	68 Neutral	$3.43B	―	-4.59%	―	-18.75%	-256.14%
VIAV	61 Neutral	$2.32B	494.29	0.71%	―	3.34%	―
AMBA	59 Neutral	$2.86B	―	-18.35%	―	44.54%	41.55%
RNG	53 Neutral	$2.69B	―	16.58%	―	7.78%	70.43%
Sector *	49 Neutral	C$2.91B	2.04	-80.91%	2.67%	12.55%	-24.32%

Calix Corporate Events

Calix Mourns Loss of Chief Operations Officer

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.

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.