Revenue climbs 10% on seven straight quarters of double-digit growth

Strong Extreme Platform ONETM Bookings help drive SaaS ARR growth up 22%

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

“Extreme delivered its seventh consecutive quarter of double-digit year-over-year growth in Q1. Demand for Extreme Platform ONE continues to accelerate, with strong quarter-over-quarter subscription gains. Platform ONE bookings are now over 50% of subscription bookings, up 5x from the prior year. Based on the strength of our business and visibility of demand for our solutions, we are confident in calling 10% growth next quarter and for the rest of the year. The combination of our unique enterprise fabric solution, our differentiated Wi-Fi 7 offerings, and the most modern agentic AI management platform is giving us an advantage in the marketplace,” said Ed Meyercord, President and CEO of Extreme.

“The release of our second-generation AI platform, Agent ONE Coworker, marks our shift from conversational to ambient AI. This context-aware, proactive agentic AI management platform is the most advanced in the industry. Within the first month of availability, customer engagement was roughly 10x that of our first-generation conversational AI platform. We are making it easy for our customers to take advantage of new AI capabilities in networking,” Meyercord continued.

Kevin Rhodes, Executive Vice President and Chief Financial Officer, noted, “Our SaaS ARR accelerated to 22% year-over-year growth, based on strong customer adoption of Extreme Platform ONE. Fiscal 2027 got off to a better than seasonal start, and we expect to sustain this level of growth through the year. The supply chain actions we have taken allow us to take more measured, targeted pricing actions than our competitors, while offsetting the incremental supply chain costs the industry is facing. Adjusted EBITDA grew 47% year-over-year fueling 50% non-GAAP EPS growth in Q1. These trends are adding to our confidence in the growth of cash flow and earnings going forward.”

Fiscal First Quarter Results:

• Revenue $341.1 million, up 10% year-over-year
• SaaS ARR $264.7 million, up 22% year-over-year
• GAAP diluted EPS $0.12, up 200% year-over-year
• Non-GAAP diluted EPS $0.33, up 50% year-over-year
• GAAP gross margin 62.1%, compared to 60.6% last year
• Non-GAAP gross margin 62.6%, compared to 61.3% last year
• GAAP operating profit margin 6.8%, compared to 3.6% last year
• Non-GAAP operating margin 17.4%, compared to 13.3% last year
• GAAP net income of $16.0 million, up 185% year-over-year
• Non-GAAP net income of $44.5 million, up 48% year-over-year
• Adjusted EBITDA of $65.6 million, up 47% year-over-year
• Share repurchases of $25.0 million during the quarter equivalent to 844,131 shares at an average price of $29.62 per share

Liquidity:

• Q1 ending cash balance was $244.5 million, an increase of $32.7 million from the end of Q4 2026 and an increase of $35.5 million from the end of Q1 in the prior year.
• Q1 net cash was $44.5 million, compared to $46.8 million at the end of Q4 2026 and $7.8 million at the end of Q1 in the prior year.

Recent Key Highlights:

• In early September, Extreme Networks announced the industry’s first proactive, ambient, context-aware AI agent for networking with the general availability of Extreme Agent ONE Coworker for Extreme Platform ONE. Extreme Agent ONE Coworker’s “Nudge” skill combines real-time network context, historical trend analysis, and agentic reasoning that delivers recommendations directly into the workflow, telling IT teams what they need to know before they ask. Early engagement with Agent ONE Coworker was roughly 10x that of Extreme’s first-generation conversational AI agent, signaling that enterprise organizations are ready for AI that proactively surfaces potential network issues. In the first month of availability, users responded to 98% of critical nudges and Extreme Agent ONE helped customers resolve issues in minutes, compared to the industry average of two days.
• Last week, Extreme Networks previewed its roadmap for on-prem enterprise AI. Extreme Exchange zones bring enterprise AI on-premises, allowing customers to choose their level of data sovereignty and control. Enterprises can run the same AI applications locally and in the cloud, wherever their data originates and workloads run, with full control over data residency and processing. Exchange zones are planned for general availability in the first half of CY27.
• Extreme displaced a major competitor at one of the largest U.S. health networks with 21 hospitals and 600 care locations across California. Extreme Switching and Campus Fabric will help the hospital strengthen clinical uptime, reduce security risk and simplify IT operations. Within the first month of deployment, the hospital cut support tickets by more than 90%.
• Extreme continues to expand its footprint within the NHS in the UK with a new win at the Cambridgeshire & Peterborough NHS Foundation Trust (CPFT). What started as a wireless-only deployment last year has expanded to a significant switching and NAC upgrade, displacing a long-time incumbent competitor. The end-to-end Extreme network will be managed by Extreme Platform ONE, delivering enterprise security and operational resilience across the trust's clinical sites.
• A large state agency in Nevada deployed Extreme Wi-Fi 7, switching, and Fabric to build a modern, segmented network across multiple locations. With Fabric's flexibility, the agency was able to create discrete network domains by operational function, supporting diverse user groups while maintaining isolation and control. Platform ONE provides centralized management across the entire infrastructure.
• New Mexico State University is deploying Extreme Wi-Fi 7 and Platform ONE to power advanced research labs, enabling real-time experimental data collection, connected lab instruments, quantum computing and remote researcher access. Wi-Fi 7 delivers the speed, low latency, and capacity that research-grade equipment requires in high-density environments. Platform ONE provides unified management, visibility, and AI capabilities across all facilities.
• Phoenix International Raceway became Extreme’s 10th NASCAR venue win, displacing major competitors in wireless and switching. The deployment delivers unified wired-wireless infrastructure through Extreme’s Fabric-ready architecture, seamless connectivity for 100,000+ concurrent fans, and a scalable foundation for next-generation applications including 4K streaming and real-time venue analytics. Extreme will help reduce operational overhead and enable faster deployment of innovative new digital services across the venue.
• regio iT GmbH, the largest municipal IT service provider in North Rhine-Westphalia, Germany, selected Extreme Wi-Fi 7 and Extreme Platform ONE™ to modernize connectivity for its public sector customers across the region. The multi-year agreement covers 1,500 Wi-Fi 7 access points and gives regio iT a single, AI-powered platform for planning, deploying and managing networks across hundreds of sites. With Extreme, the municipalities can deliver faster, more reliable digital citizen services, schools can support high-density digital learning, and energy and waste management providers can keep critical operations connected with less IT overhead.
• Extreme continues to gain ground in financial services with a win-back at one of Austria’s largest banks. Working with partner A1 Telekom Austria, the bank selected Extreme over a long-time competitor to refresh its wired and wireless networks across more than 70 branches, as part of a cloud-first strategy that is unique among Austrian financial institutions. The bank will run its entire branch network on Extreme Platform ONE, gaining centralized, cloud-based operations at scale.

Fiscal Q1 2027 Financial Results:

Extreme uses the non-GAAP free cash flow metric as a measure of operating performance. Free cash flow represents GAAP net cash provided by 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 the non-GAAP free cash flow calculation (in millions):

SaaS ARR: SaaS ARR is an operating metric used by management to measure the annualized value of customer arrangements for our software solutions, which are delivered via cloud-based subscription (such as Extreme Platform ONE, generally available July 2025, and ExtremeCloud IQ) or term-based software deployed on-premises by the customer. We include term-based license arrangements in SaaS ARR because they provide time-bound access to our software solutions and are operationally and economically similar to our cloud-based subscriptions, even though they are accounted for differently under U.S. GAAP.

SaaS ARR is calculated using the annualized value of quarterly subscription revenue plus the trailing twelve months of the software license portion of term-based license arrangements, which includes revenue recognized during the applicable period with respect to multi-year term-based license arrangements. The Company has not adjusted SaaS ARR to allocate revenue from these multi-year term-based license arrangements over their contractual term because they have historically been immaterial to SaaS ARR and doing so would not be expected to materially affect reported SaaS ARR or related growth rates. For those software solutions that include embedded support as part of a bundled offering, including Extreme Platform ONE and term-based license arrangements, the quarterly revenue recognized in the period with respect to the support portion of the offering is annualized and included in SaaS ARR.

SaaS ARR excludes perpetual licenses, professional services revenue, support revenue associated with hardware or standalone maintenance contracts, and other non-recurring or non-subscription revenue streams. Management evaluates and manages support revenues from maintenance contracts primarily through analysis of the related GAAP revenue trends, renewal activity, and customer support operations, together with broader business performance indicators, rather than through a single standalone metric, in part due to the Company’s go-to-market model in which many customers transact through distributors and resellers, limiting consistent visibility into end-customer usage and renewals.

Management uses SaaS ARR to evaluate the scale and trajectory of the Company’s subscription-based offerings and progress against customer adoption initiatives. We believe this metric is useful to investors for the same reasons, as it provides insight into our ability to acquire new customers and to maintain and expand our existing customer relationships. SaaS ARR should be considered independently of revenue or deferred revenue under U.S. GAAP, does not have a standardized meaning, and is not a substitute for, or a forecast 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, as applicable.

Net cash: 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 market conditions and other risks and uncertainties, including the factors described under “Forward-Looking Statements” below.

For its second quarter of fiscal 2027, ending December 31, 2026, the Company is targeting:

The following table shows the GAAP to non-GAAP reconciliation for Q2 FY'27 guidance:

For the full year fiscal 2027, ending June 30, 2027, the Company is targeting:

(in millions, except percentages and per share information)	Low-End				High-End
FY'27 Guidance – GAAP
Total net revenue	$	1,402.3			$	1,412.3
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