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Extreme Networks
(NASDAQ:EXTR)
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Rating:59Neutral
Price Target:
$30.00
▲(1.73% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by improving operating fundamentals and strong cash generation, plus a notably positive earnings outlook and SaaS momentum from the latest call. These positives are tempered by meaningful leverage and thin margins, weak near-term technical positioning versus key moving averages, and an expensive valuation (very high P/E with no dividend support).
Positive Factors
Recurring revenue / SaaS ARR growth
Rapid SaaS ARR expansion and a rising share of subscription revenue increase revenue visibility and stickiness versus one‑time hardware refresh cycles. This structural shift supports more predictable cash flows, higher lifetime value per customer, and reduces sensitivity to cyclical product demand over the next several quarters.
Negative Factors
Elevated leverage
Material leverage constrains strategic optionality and raises refinancing and covenant risk. With debt still sizable versus equity, the company has less capacity to absorb demand shocks, pursue large M&A, or increase investment without prioritizing debt reduction, making capital allocation more constrained over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue / SaaS ARR growth
Rapid SaaS ARR expansion and a rising share of subscription revenue increase revenue visibility and stickiness versus one‑time hardware refresh cycles. This structural shift supports more predictable cash flows, higher lifetime value per customer, and reduces sensitivity to cyclical product demand over the next several quarters.
Read all positive factors
Extreme Networks (EXTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.90B
Dividend YieldN/A
Average Volume (3M)2.04M
Price to Earnings (P/E)247.3
Beta (1Y)1.78
Revenue Growth14.90%
EPS GrowthN/A
CountryUS
Employees2,811
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.12
Shares Outstanding130,778,090
10 Day Avg. Volume1,729,961
30 Day Avg. Volume2,037,725
Financial Highlights & Ratios
PEG Ratio3.48
Price to Book (P/B)36.22
Price to Sales (P/S)2.08
P/FCF Ratio18.66
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$30.42Price Target Upside3.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)1.31
Revenue Forecast (FY)$1.39B
Extreme Networks Business Overview & Revenue Model
Company Description
Extreme Networks, Inc. (EXTR) is a networking technology company that designs, develops, and sells enterprise-grade wired and wireless networking solutions. The company’s offerings generally include network infrastructure hardware (such as Etherne...
How the Company Makes Money
Extreme Networks primarily generates revenue by selling networking products and associated software and services to enterprise and public-sector customers, typically through a mix of channel partners and direct sales. Key revenue streams include: ...
Extreme Networks Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call highlighted multiple clear operational and financial improvements: revenue beat, sustained double-digit growth, rapid SaaS ARR acceleration (+29% YoY), margin expansion (62.3% GM, +30 bps q/q), recordably strong EBITDA, resolved supply constraints and meaningful product and partner traction (Wi‑Fi 7 adoption, Platform ONE wins, MSP growth). Lowlights were primarily execution/timing and margin-transmission uncertainties — higher component costs necessitating price increases whose net benefits are diluted by discounting, some project timing shifts and regional shipping delays. Overall, positives (growth, margin improvement, supply resolution, recurring revenue momentum, capital returns) materially outweigh the challenges, though timing and competitive dynamics require monitoring.Positive Updates
Revenue Beat and Sustained Growth
Total revenue of $317.0M, up 11% year-over-year, beat the high end of guidance. This marks 5 consecutive quarters of double-digit revenue growth and 8 quarters of sequential product revenue growth; product revenue rose 12% year-over-year.
Negative Updates
Higher Component Costs and Price Increase Headwinds
Rising memory and component costs required selective price increases (mid-single-digit in Nov; additional increases in March). Net realized pricing is diluted by industry discounting (company notes typical discount rates that reduce a headline price increase to ~2%–3% net), so margin benefit timing and magnitude remain constrained.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Beat and Sustained Growth
Total revenue of $317.0M, up 11% year-over-year, beat the high end of guidance. This marks 5 consecutive quarters of double-digit revenue growth and 8 quarters of sequential product revenue growth; product revenue rose 12% year-over-year.
Read all positive updates
Company Guidance
Extreme guided Q4 revenue of $330–335 million with gross margins of 61.8%–62.2%, operating margins of 15.2%–16.1% and EPS of $0.28–0.30 on roughly 132 million diluted shares; for full FY2026 it expects revenue of $1.275–1.280 billion (midpoint implying ≈12% y/y growth), full‑year gross margin of 61.8%–61.9%, operating margin of 14.7%–14.9% and EPS of $1.02–1.04. Management also reiterated strong SaaS momentum (Q3 SaaS ARR $236M, +29% y/y; guidance for long‑run SaaS ARR growth of ~20%–30%), highlighted $342M of SaaS deferred revenue (+19% y/y), subscription & support of $114M (36% of revenue), exited the quarter with >$200M annualized EBITDA, and noted $137.5M remaining of a $200M share‑repurchase authorization after a $50M buyback.Extreme Networks Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
48
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.25B | 1.14B | 1.12B | 1.31B | 1.11B | 1.01B |
| Gross Profit | 767.74M | 709.13M | 630.83M | 754.72M | 629.94M | 585.12M |
| EBITDA | 62.33M | 39.42M | -31.07M | 146.37M | 105.14M | 88.36M |
| Net Income | 16.27M | -7.47M | -85.96M | 78.07M | 44.27M | 1.94M |
Balance Sheet | ||||||
| Total Assets | 1.17B | 1.15B | 1.04B | 1.14B | 1.07B | 1.01B |
| Cash, Cash Equivalents and Short-Term Investments | 210.11M | 231.75M | 156.70M | 234.83M | 194.52M | 246.89M |
| Total Debt | 235.74M | 223.44M | 250.15M | 275.46M | 365.09M | 409.59M |
| Total Liabilities | 1.09B | 1.09B | 1.02B | 1.02B | 978.17M | 955.63M |
| Stockholders Equity | 78.97M | 65.58M | 25.28M | 116.75M | 90.34M | 54.47M |
Cash Flow | ||||||
| Free Cash Flow | 139.55M | 127.32M | 37.37M | 235.41M | 112.74M | 127.36M |
| Operating Cash Flow | 132.27M | 152.03M | 55.49M | 249.21M | 128.18M | 144.53M |
| Investing Cash Flow | -27.01M | -24.71M | -18.12M | -13.80M | -84.95M | -17.18M |
| Financing Cash Flow | -80.33M | -52.59M | -114.98M | -194.78M | -94.66M | -74.78M |
Extreme Networks Technical Analysis
Positive
29.49
Price Trends
29.90
Positive
24.10
Positive
20.37
Positive
Market Momentum
0.12
Positive
45.22
Neutral
21.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXTR, the sentiment is Positive. The current price of 29.49 is below the 20-day moving average (MA) of 30.74, below the 50-day MA of 29.90, and above the 200-day MA of 20.37, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 45.22 is Neutral, neither overbought nor oversold. The STOCH value of 21.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXTR.
Extreme Networks Risk Analysis
Extreme Networks disclosed 39 risk factors in its most recent earnings report. Extreme Networks 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
Extreme Networks Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $2.57B | 60.10 | 6.72% | ― | 13.48% | 0.69% | |
67 Neutral | $10.69B | -248.16 | -0.74% | ― | 2.67% | 93.53% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $3.90B | 247.25 | 21.07% | ― | 14.90% | ― | |
51 Neutral | $8.65B | -152.31 | -6.92% | ― | 30.59% | -1171.00% | |
48 Neutral | $682.00M | -19.01 | -24.02% | ― | 18.84% | 77.12% |
* Technology Sector Average
EXTR
Extreme Networks
30.14
12.87
74.52%
ADTN
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8.51
-0.25
-2.85%
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VIAV
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36.95
27.19
278.59%
Extreme Networks Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Extreme Networks Secures New $500 Million Credit Facility
Positive
Jul 30, 2026
On July 29, 2026, Extreme Networks entered into a new Credit Agreement providing a five-year, $500 million revolving loan facility arranged by JPMorgan Chase, replacing its prior credit agreement led by Bank of Montreal. The facility, which carrie...
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.