Extreme Networks (EXTR) AI Stock Analysis

• Market Cap: $2.36B
• Dividend Yield: N/A
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 268.2
• Beta (1Y): 1.80
• Revenue Growth: 14.31%
• EPS Growth: N/A
• Country: US
• Employees: 2,656
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.22
• Shares Outstanding: 133,718,480
• 10 Day Avg. Volume: 1,839,654
• 30 Day Avg. Volume: 1,812,989
• PEG Ratio: 3.48
• Price to Book (P/B): 36.22
• Price to Sales (P/S): 2.08
• P/FCF Ratio: 18.66
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 2.39
• Enterprise Value/Gross Profit: 3.94
• Enterprise Value/Ebitda: 41.40
• 1Y Price Target: $24.14
• Price Target Upside: 41.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.99
• Revenue Forecast (FY): $1.23B

• Rating: 58 Neutral
• Price Target: $18.50 ▲(8.63% Upside)

Extreme Networks' overall stock score is primarily driven by strong earnings call performance, showcasing robust revenue growth and strategic wins. However, financial performance is moderate due to high leverage and profitability challenges. The technical analysis indicates a bearish trend, and the valuation is weak with a negative P/E ratio. The absence of corporate events does not impact the score.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

SaaS ARR Growth

Growth in SaaS ARR reflects successful adoption of subscription models, providing a reliable and recurring revenue stream.

Strategic Partnerships

Long-term partnerships with major organizations like the NFL strengthen market position and provide stable revenue opportunities.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder investment in growth initiatives and affect long-term financial health.

High Leverage

High leverage can limit financial flexibility and increase risk, especially in volatile market conditions.

Component Cost Increases

Rising component costs can pressure margins, reducing profitability and potentially impacting competitive pricing strategies.

Extreme Networks Business Overview & Revenue Model

Company Description

Extreme Networks, Inc. (EXTR) is a prominent provider of networking solutions that enable organizations to deliver high-performance connectivity across various sectors, including enterprise, education, healthcare, and hospitality. The company specializes in software-driven networking solutions, offering a comprehensive range of products such as switches, routers, and wireless access points, along with cloud-managed networking services designed to optimize network performance and enhance user experiences.

How the Company Makes Money

Extreme Networks generates revenue primarily through the sale of its hardware products, including network switches, routers, and access points, which are essential for building and maintaining network infrastructure. Additionally, the company earns significant income from its software solutions, particularly its cloud-based management systems that provide analytics, security, and network optimization services. Recurring revenue is also a vital aspect of its business model, with maintenance contracts, subscription services, and support agreements contributing to ongoing earnings. Furthermore, Extreme Networks has formed strategic partnerships with major technology companies and service providers, enabling it to expand its market reach and enhance its offerings, ultimately driving further revenue growth.

Extreme Networks Financial Statement Overview

Summary

Extreme Networks demonstrates moderate financial health with stable revenue growth and profitability challenges. The high leverage poses a risk, but the company maintains a solid cash conversion rate. Improvements in operational efficiency and debt management could enhance financial stability.

Income Statement

Extreme Networks shows a moderate revenue growth rate of 3.6% in the TTM, with a gross profit margin of 61.6%. However, the net profit margin is low at 0.73%, indicating challenges in converting revenue into profit. The EBIT and EBITDA margins are also relatively low, suggesting room for improvement in operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 1.22 in the TTM, indicating significant leverage, which could pose financial risks. Return on equity is 13.46%, showing some profitability, but the equity ratio is low, suggesting a reliance on debt financing.

Cash Flow

Operating cash flow to net income ratio is 0.23, indicating moderate cash generation relative to net income. Free cash flow growth is negative at -18.55%, which is a concern. However, the free cash flow to net income ratio is strong at 86.36%, showing good cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.18B	1.14B	1.12B	1.31B	1.11B	1.01B
Gross Profit	716.62M	709.13M	628.79M	752.67M	626.70M	573.41M
EBITDA	68.18M	39.42M	-19.61M	158.62M	120.07M	110.09M
Net Income	9.52M	-7.47M	-85.96M	78.07M	44.27M	1.94M
Balance Sheet
Total Assets	1.15B	1.15B	1.04B	1.14B	1.07B	1.01B
Cash, Cash Equivalents and Short-Term Investments	209.00M	231.75M	156.70M	234.83M	194.52M	246.89M
Total Debt	83.49M	223.44M	250.15M	275.46M	365.09M	409.59M
Total Liabilities	1.08B	1.09B	1.02B	1.02B	978.17M	955.63M
Stockholders Equity	68.56M	65.58M	25.28M	116.75M	90.34M	54.47M
Cash Flow
Free Cash Flow	112.71M	127.32M	37.37M	235.41M	112.74M	127.36M
Operating Cash Flow	130.50M	152.03M	55.49M	249.21M	128.18M	144.53M
Investing Cash Flow	-24.65M	-24.71M	-18.12M	-13.80M	-84.95M	-17.18M
Financing Cash Flow	-56.24M	-52.59M	-114.98M	-194.78M	-94.66M	-74.78M

Extreme Networks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXTR, the sentiment is Negative. The current price of 17.03 is below the 20-day moving average (MA) of 18.80, below the 50-day MA of 20.20, and below the 200-day MA of 17.24, indicating a bearish trend. The MACD of -0.81 indicates Positive momentum. The RSI at 35.47 is Neutral, neither overbought nor oversold. The STOCH value of 26.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EXTR.

Extreme Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGII	76 Outperform	$1.42B	34.95	6.71%	―	1.46%	78.77%
VIAV	68 Neutral	$3.77B	254.19	2.13%	―	15.60%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COMM	61 Neutral	$3.72B	―	―	―	9.86%	99.11%
EXTR	58 Neutral	$2.36B	268.19	17.08%	―	14.31%	―
VSAT	56 Neutral	$4.88B	―	-11.04%	―	1.23%	-31.80%
ADTN	41 Neutral	$598.47M	―	-48.44%	―	14.33%	83.32%

Extreme Networks Corporate Events

Extreme Networks Reports Strong Q1 Fiscal 2026 Results

Extreme Networks, Inc. is a leader in AI-driven cloud networking, providing simple and secure solutions that enable connections among devices, applications, and users across various industries worldwide.

Extreme Networks Navigates Geopolitical and Economic Challenges Amid Tariff Uncertainties

Extreme Networks faces significant business risks due to geopolitical changes and economic policy uncertainties, particularly those stemming from U.S. tariff adjustments and broader global tensions. These factors could lead to decreased demand for their products, increased costs, and supply chain disruptions, potentially affecting their financial performance and stock price. The company is attempting to mitigate these risks by diversifying its manufacturing and supply chain strategies, yet the unpredictability of tariffs and retaliatory measures from trade partners remains a concern. Such economic volatility may prompt customers to delay IT spending, impacting sales and competitiveness in the global market.

Extreme Networks Reports Strong Growth in Q4 2025

Extreme Networks, Inc., a leader in AI-driven cloud networking, focuses on delivering simple and secure solutions to help businesses connect devices, applications, and users. The company leverages artificial intelligence, analytics, and automation to push technological boundaries.

Extreme Networks Reports Strong Growth and Strategic Wins

Extreme Networks’ latest earnings call painted a picture of robust growth and strategic achievements, underscored by a positive sentiment. The company reported strong revenue growth and significant wins in key regions, alongside the successful launch of an innovative AI platform. Despite facing some regional revenue challenges and the need for margin improvement, the overall momentum and positive financial results suggest a favorable outlook for the company.