Extreme Networks (EXTR) AI Stock Analysis

• Market Cap: $2.16B
• Dividend Yield: N/A
• Average Volume (3M): 975.60K
• Price to Earnings (P/E): 249.6
• Beta (1Y): 1.77
• 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: 745,216
• 30 Day Avg. Volume: 975,604
• 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: 1.21
• Enterprise Value/Revenue: 2.22
• Enterprise Value/Gross Profit: 3.66
• Enterprise Value/Ebitda: 38.44
• 1Y Price Target: $24.75
• Price Target Upside: 56.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.99
• Revenue Forecast (FY): $1.26B

• Rating: 59 Neutral
• Price Target: $18.50 ▲(16.72% Upside)

Extreme Networks' overall stock score is primarily influenced by its financial performance, which shows stable revenue growth but significant profitability and leverage challenges. The technical analysis suggests neutral to bearish momentum, while the valuation indicates potential overvaluation. Positive sentiment from the earnings call and strategic corporate events provide some optimism, but the financial and valuation concerns weigh heavily on the overall score.

Positive Factors

Revenue Growth

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

SaaS ARR Growth

Strong SaaS ARR growth reflects successful adoption of subscription models, providing a stable and recurring revenue stream.

Strategic Wins and Partnerships

Strategic partnerships and wins enhance market presence and provide long-term growth opportunities in key regions.

Negative Factors

High Leverage

High leverage could limit financial flexibility and increase risk, potentially impacting long-term financial health.

Declining Free Cash Flow

Declining free cash flow may constrain the company's ability to invest in growth opportunities and manage debt effectively.

Profitability Challenges

Low profitability margins indicate operational challenges, which may hinder the company's ability to sustain long-term growth.

Extreme Networks Business Overview & Revenue Model

Company Description

Extreme Networks, Inc. provides software-driven networking solutions worldwide. It designs, develops, and manufactures wired and wireless network infrastructure equipment; and develops software for network management, policy, analytics, security, and access controls. The company offers ExtremeCloud IQ, an ML/AI powered, wired, and wireless cloud network management solution that offers advanced visibility and control over users, devices, and applications; ExtremeCloud IQ – Site Engine that provides task automation, access control, granular visibility with real-time analytics and multi-vendor device management; and ExtremeCloud IQ Essentials offers WIPS, location services, IoT, and guest management services. It also provides wireless access point products; ExtremeSwitching portfolio that includes access edge products that offer physical presentations along with options to deliver Ethernet or convergence-friendly Power-over-Ethernet (POE), including high-power universal POE; aggregation/core switches designed to address aggregation, top-of-rack, and campus core environments; and data center switches and routers. In addition, the company offers cloud native platforms and applications for service providers; and customer support and services. It markets and sells its products through distributors, resellers, and field sales organizations to healthcare, education, government, manufacturing, retail, and hospitality markets. Extreme Networks, Inc. was incorporated in 1996 and is headquartered in Morrisville, North Carolina.

How the Company Makes Money

Extreme Networks generates revenue through multiple streams, primarily from the sale of hardware, software, and services. Key revenue streams include the sale of network switches, routers, and wireless access points, which cater to organizations seeking robust networking solutions. Additionally, the company offers subscription-based software licenses for its management and analytics platforms, which provide ongoing revenue. Service and support contracts also contribute significantly to the company's earnings, providing maintenance, training, and technical support to clients. Strategic partnerships with other technology companies and service providers enhance its market reach and drive additional revenue opportunities, particularly in the cloud and managed services sectors.

Extreme Networks Financial Statement Overview

Summary

Extreme Networks demonstrates stable revenue growth and strong gross margins, but faces challenges with profitability and high leverage. The balance sheet reveals significant debt, which could impact financial stability. Cash flow performance is mixed, with strong cash conversion but declining free cash flow. The company needs to focus on improving profitability and managing leverage to enhance financial health.

Income Statement

Extreme Networks shows a moderate revenue growth rate of 3.6% TTM, indicating steady growth. The gross profit margin remains strong at over 60%, but the net profit margin is low at 0.81%, suggesting limited profitability. EBIT and EBITDA margins are modest, reflecting operational challenges. Overall, the income statement reflects stable revenue growth but highlights profitability concerns.

Balance Sheet

The company has a high debt-to-equity ratio of 1.22 TTM, indicating significant leverage. Return on equity is positive at 14.81%, showing some profitability on equity. However, the equity ratio is low, suggesting potential financial risk. The balance sheet reflects high leverage, which could pose risks if not managed carefully.

Cash Flow

Free cash flow growth is negative at -25.54% TTM, indicating a decline in cash generation. The operating cash flow to net income ratio is 0.23, showing moderate cash conversion efficiency. The free cash flow to net income ratio is strong at 0.86, suggesting good cash flow relative to net income. Overall, cash flow performance is mixed, with strong cash conversion but declining free cash flow.

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	242.39M	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	94.80M	127.32M	37.37M	235.41M	112.74M	127.36M
Operating Cash Flow	119.45M	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	-45.18M	-52.59M	-114.98M	-194.78M	-94.66M	-74.78M

Extreme Networks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 15.85 is below the 20-day moving average (MA) of 16.80, below the 50-day MA of 17.37, and below the 200-day MA of 17.57, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 29.52 is Positive, neither overbought nor oversold. The STOCH value of 13.77 is Positive, 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
VIAV	71 Outperform	$4.14B	260.43	2.13%	―	15.60%	―
DGII	68 Neutral	$1.61B	39.09	6.71%	―	1.46%	78.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COMM	60 Neutral	$3.92B	-141.67	―	―	9.86%	99.11%
EXTR	59 Neutral	$2.16B	249.61	17.08%	―	14.31%	―
VSAT	56 Neutral	$5.10B	-9.67	-11.04%	―	1.23%	-31.80%
ADTN	50 Neutral	$707.42M	-8.13	-48.44%	―	14.33%	83.32%

Extreme Networks Corporate Events

Extreme Networks Holds Annual Stockholders Meeting

On November 12, 2025, Extreme Networks, Inc. held its annual meeting of stockholders where several key proposals were voted on. Seven director nominees were elected for a one-year term, executive officer compensation was approved, Grant Thornton LLP was ratified as the independent auditor for the fiscal year ending June 30, 2026, and an amendment to the 2013 Equity Incentive Plan was approved, adding 6,800,000 shares for issuance. These decisions reflect the company’s strategic direction and governance priorities, potentially impacting its operational and financial strategies.

The most recent analyst rating on (EXTR) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Extreme Networks stock, see the EXTR Stock Forecast page.

Extreme Networks Announces 2026 Financial Guidance

On November 10, 2025, Extreme Networks announced its financial guidance for the fiscal year 2026, ending June 30, 2026, during its Investor Day. The company reaffirmed its fiscal second quarter 2026 outlook and provided detailed guidance for the full year, targeting total net revenue between $1,247 million and $1,264 million, with gross margins and operating margins outlined for both GAAP and non-GAAP measures. This announcement reflects Extreme Networks’ strategic positioning and expectations for continued growth, despite market conditions and competitive challenges.

The most recent analyst rating on (EXTR) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Extreme Networks stock, see the EXTR Stock Forecast page.