Q1 revenue up 15% year-over-year, marking sixth consecutive quarter of sequential growth

SaaS ARR up 24% YoY

MORRISVILLE, N.C.: Extreme Networks, Inc. (“Extreme”) (Nasdaq: EXTR) today released financial results for its first quarter of fiscal 2026 ended September 30, 2025.

“The strength of our first quarter results was driven by improved execution, increasing customer demand and expanding interest in our AI-powered networking platform and our high-performance solutions,” said Ed Meyercord, President and CEO of Extreme. “This marked six consecutive quarters of revenue growth and three straight quarters of double-digit year-over-year gains, which is a positive sign that we are gaining share. ARR is up 24% year-over-year, as momentum grows with our subscription model. Continuing share gains in the Americas along with increased customer engagement in EMEA and APAC underscores our global momentum, highlighted by significant wins this quarter.”

Meyercord said, “Bookings for Extreme Platform ONE were solid in the quarter. Since its general availability in mid-July, customers have responded positively to the platform’s simplicity and advanced AI capabilities, which combine conversational, multimodal, and agentic technologies to automate a wide range of networking tasks. Our recently released service agent is designed to streamline network management, automate routine workflows, and enable IT teams to deliver faster, smarter support, reducing manual effort by up to 95%. These innovations position us to drive growth, expand market share, and capitalize on opportunities arising from shifts among competitors.”

Kevin Rhodes, Executive Vice President and Chief Financial Officer, stated, “First quarter results were strong, driven by continuous growth in revenue, higher margin ARR growth, and prudent expense management leading to earnings above our expectations. Our outlook for a re-acceleration of overall revenue growth to 10% at the midpoint of our outlook on a full-year basis continues to improve, and we expect that to translate to even higher earnings and cash flow than our initial forecast. I’m also pleased with our overall execution as a company.”

Fiscal First Quarter Results:

• Revenue $310.2 million, up 15.2% year-over-year and up 1.1% quarter-over-quarter
• SaaS ARR $216.2 million, up 24.2% year-over-year and 4.1% quarter-over-quarter
• GAAP diluted EPS $0.04, compared to GAAP diluted loss per share $0.08 last year and GAAP diluted loss per share $0.06 last quarter
• Non-GAAP diluted EPS $0.22, compared to $0.17 last year and $0.25 last quarter
• GAAP gross margin 60.6%, compared to 63.0% last year and 61.6% last quarter
• Non-GAAP gross margin 61.3%, compared to 63.7% last year and 62.3% last quarter
• GAAP operating profit margin 3.6%, compared to GAAP operating loss margin 1.8% last year and GAAP operating loss margin 0.4% last quarter
• Non-GAAP operating margin 13.3 % compared to 12.4 % last year and 15.2% last quarter
• Shares repurchases amounted to $12.0 million during the quarter for a total of approximately 0.6 million shares

Liquidity:

• Q1 ending cash balance was $209.0 million, a decrease of $22.7 million from the end of Q4 2025 and an increase of $49.5 million from the end of Q1 in the prior year.
• Due to a one-time settlement, Q1 net cash was $7.8 million, as compared to net cash of $51.7 million at the end of Q4 2025 and net debt of $28.0 million at the end of Q1 in the prior year.

Recent Key Highlights:

• Extreme scored a major win within a major government customer in APAC to deploy a nationwide backbone powered by Extreme Fabric over SD-WAN. The network unites agencies and regional offices with secure, resilient connectivity, showcasing Extreme’s ability to drive large-scale, multi-phase government transformations with scalable, future-ready solutions.
• T-Mobile Center, a multi-purpose arena in downtown Kansas City that hosts top concerts, family shows, and sporting events, is now fully supported by Extreme’s wired and wireless networking solutions. The venue deployed Extreme’s Wi-Fi 7 access points, centrally managed through Extreme Platform ONE to enhance operational connectivity and elevate the digital fan experience.
• Doosan Enerbility, the world’s largest SMR (Small Modular Reactor) manufacturer specializing in sustainable energy and water infrastructure with operations across 40 countries, is refreshing networks across its HQ and domestic plants. Using Extreme Fabric and ExtremeCloud IQ, they’ll gain secure data management, reliable connectivity, real-time monitoring, and simplified automation-scaling operations while advancing their mission of sustainable energy solutions.
• Exyte, a €5 billion global pioneer in cleanroom technology and complex plant engineering, headquartered in Stuttgart, Germany has standardized exclusively on Extreme for LAN, WLAN, and NAC managed all by ExtremeCloud XIQ. Exyte benefits from a standardized, scalable network that accelerates integration of new sites, enables efficient network management, ensures security and compliance, and delivers improved performance across its mission-critical environment.
• Burgers Zoo, one of the largest zoos in the Netherlands at over 111 acres, recently deployed Extreme wired and wireless solutions managed by Extreme Platform ONE to ensure reliable connectivity for security cameras, ticketing, guest Wi-Fi, mobile point-of-sale systems, and smart habitats. With Platform ONE, the IT team can now monitor and optimize the entire network from a single platform, reduce troubleshooting time, and easily scale as new exhibits are added.
• King County Housing Authority in Washington State recently chose Extreme to drive a network refresh with a Network Infrastructure as a Service as their existing infrastructure from a large competitor was nearing end of life. The new network, which includes a mix of Extreme wired and wireless solutions, managed by Extreme Platform ONE and secured by Extreme Security Cloud NAC, will help the housing authority create more predictable costs for IT investments, manage the network from any location, and easily scale as they add new properties.
• Hyatt Regency Samarafushi Maldives, a new luxury resort set to open next year, is raising the bar for guests by choosing Extreme to deliver seamless Wi-Fi to both enhance guest experiences and power hotel operations. Located on a remote island, the resort is turning to ExtremeCloud™ XIQ to make it simple and flexible for its teams to manage the network from remote locations.
• Gateshead Council, a metro borough in England, selected Extreme to modernize and secure its entire network infrastructure with Extreme Fabric. Fabric delivers unified network management, enhanced cyber resilience, and automation capabilities that align with Gateshead’s vision for a smarter, more connected borough. This transformation will create a single, secure, and agile digital foundation, managed through Extreme Platform ONE, which will help improve service delivery, support hybrid working, and future-proof IT operations across roughly 200 sites.

Fiscal Q1 2026 Financial Results:

(in millions, except percentages and per share information)

Extreme uses the non-GAAP free cash flow metric as a measure of operating performance. Free cash flow represents GAAP net cash provided by (used in) operating activities, less purchases of property, equipment and capitalized software development costs. Extreme considers free cash flow to be useful information for management and investors regarding the amount of cash generated by the business after the purchases of property, equipment and capitalized software development costs, which can then be used to, among other things, invest in Extreme’s business, make strategic acquisitions, and strengthen the balance sheet. A limitation of the utility of this non-GAAP free cash flow metric as a measure of financial performance is that it does not represent the total increase or decrease in the Company's cash balance for the period. The following table shows non-GAAP free cash flow calculation (in millions):

SaaS ARR: Extreme uses SaaS annual recurring revenue (“SaaS ARR”) to identify the annual recurring revenue of ExtremeCloud IQ and other subscription revenue, based on the annualized value of quarterly subscription revenue and term-based licenses. We believe that SaaS ARR is an important metric because it is driven by our ability to acquire new customers and to maintain and expand our relationships with existing customers. SaaS ARR should be viewed independently of revenue or deferred revenue that are accounted for under U.S. GAAP. SaaS ARR does not have a standardized meaning and therefore may not be comparable to similarly titled measures presented by other companies. SaaS ARR is not intended to be a replacement for forecasts of revenue.

Gross debt: Gross debt is defined as long-term debt and the current portion of long-term debt as shown on the balance sheet plus unamortized debt issuance costs, if any.

Net cash (debt): is defined as cash and cash equivalents minus gross debt, as shown in the table below (in millions):

Business Outlook:

Extreme’s business outlook is based on current expectations. The following statements are forward-looking, and actual results could differ materially based on various factors, including market conditions and the factors set forth under “Forward-Looking Statements” below.

For its second quarter fiscal 2026, ending December 31, 2025, the Company is targeting:

The following table shows the GAAP to non-GAAP reconciliation for Q2 FY'26 guidance:

The total of percentage rate changes may not equal the total change in all cases due to rounding.

For the full year fiscal 2026, ending June 30, 2026, the Company is targeting (in millions):

Conference Call:

Extreme will host a c