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Extreme Networks
(NASDAQ:EXTR)
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Rating:68Neutral
Price Target:
$35.00
▲(18.68% Upside)
Action:Reiterated
Date:08/05/26
EXTR scores positively on operational momentum and forward outlook (strong earnings call and constructive technical trend), supported by solid cash generation. The score is held back primarily by high balance-sheet leverage and an extremely elevated P/E multiple, which increases downside risk if execution or growth falls short.
Positive Factors
Cash generation
Consistent trailing‑twelve‑month free cash flow that modestly exceeds net income provides durable internal funding for R&D, share repurchases, working capital and debt service. Strong cash conversion supports resilience across IT spending cycles and reduces dependence on external financing.
Negative Factors
Elevated leverage
Leverage near three times equity constrains financial flexibility and raises covenant/default risk if execution weakens. Even with a new revolving facility and liquidity, the capital structure limits optionality for large investments or acquisitions and makes results more sensitive to margin or demand shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent trailing‑twelve‑month free cash flow that modestly exceeds net income provides durable internal funding for R&D, share repurchases, working capital and debt service. Strong cash conversion supports resilience across IT spending cycles and reduces dependence on external financing.
Read all positive factors
Extreme Networks (EXTR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.94B
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)0.32
Shares Outstanding130,778,090
10 Day Avg. Volume1,729,961
30 Day Avg. Volume2,037,725
Financial Highlights & Ratios
PEG Ratio-0.66
Price to Book (P/B)47.09
Price to Sales (P/S)12.32
P/FCF Ratio0.04
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
$32.81Price Target Upside11.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
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:Aug 05, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum: solid quarter and full-year revenue beats, margin expansion, record EBITDA, secured supply chain into FY28, robust Platform ONE adoption, meaningful upmarket progress (average deal size +~33% and 187 $1M+ customers), and conservative but positive FY27 guidance including >20% EPS growth. Notable near-term headwinds include slower SaaS ARR growth versus an elevated prior‑year comparable, recurring revenue mix transition from services to subscriptions, potential professional services timing impacts on margins, and the need to capture price increases against competitive discounting. On balance, the positive beats, operational execution, supply advantages and clear go-to-market traction materially outweigh the manageable risks and transitional challenges.Positive Updates
Quarterly Revenue Beat and Sequential Growth
Q4 revenue of $339 million beat consensus and the high end of guidance, up 10% year-over-year and 7% sequentially; product demand drove 14% year-over-year and 10% sequential product growth.
Negative Updates
SaaS ARR Growth Deceleration vs Prior Year
SaaS ARR grew 18% year-over-year to $244 million, slower than the 24% growth in the prior-year quarter (driven last year by several large wins), creating a near-term reacceleration challenge to reach mid-20% growth.
Read all updates
Q4-2026 Updates
Positive
Negative
Quarterly Revenue Beat and Sequential Growth
Q4 revenue of $339 million beat consensus and the high end of guidance, up 10% year-over-year and 7% sequentially; product demand drove 14% year-over-year and 10% sequential product growth.
Read all positive updates
Company Guidance
The company guided Q1 FY‑27 revenue of $334M–$339M, gross margin of 62.2%–62.7%, operating margin of 14.7%–15.3% and EPS of $0.27–$0.29; for full FY‑27 it guided revenue of $1.38B–$1.40B, gross margin 62.2%–62.7%, operating margin 16.7%–17.1%, EPS $1.28–$1.33 and a non‑GAAP tax rate of ~23%. Management also expects double‑digit product revenue growth, more than 20% EPS growth in FY‑27, SaaS ARR growth to reaccelerate toward the mid‑20% range by year‑end, half of the installed base on Platform ONE by the end of FY‑27, and secured supply into FY‑28 to support the outlook.Extreme Networks Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
46
Neutral
Cash Flow
74
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 338.55M | 1.14B | 1.12B | 1.31B | 1.11B |
| Gross Profit | 210.49M | 709.13M | 630.83M | 754.72M | 629.94M |
| EBITDA | 21.83M | 39.42M | -31.07M | 146.37M | 105.14M |
| Net Income | 18.04M | -7.47M | -85.96M | 78.07M | 44.27M |
Balance Sheet | |||||
| Total Assets | 1.18B | 1.15B | 1.04B | 1.14B | 1.07B |
| Cash, Cash Equivalents and Short-Term Investments | 211.76M | 231.75M | 156.70M | 234.83M | 194.52M |
| Total Debt | 194.57M | 223.44M | 250.15M | 275.46M | 365.09M |
| Total Liabilities | 1.09B | 1.09B | 1.02B | 1.02B | 978.17M |
| Stockholders Equity | 88.59M | 65.58M | 25.28M | 116.75M | 90.34M |
Cash Flow | |||||
| Free Cash Flow | 95.24B | 127.32M | 37.37M | 235.41M | 112.74M |
| Operating Cash Flow | 123.18B | 152.03M | 55.49M | 249.21M | 128.18M |
| Investing Cash Flow | -27.94B | -24.71M | -18.12M | -13.80M | -84.95M |
| Financing Cash Flow | -114.50B | -52.59M | -114.98M | -194.78M | -94.66M |
Extreme Networks Technical Analysis
Negative
29.49
Price Trends
30.11
Negative
24.74
Negative
20.54
Positive
Market Momentum
-1.02
Positive
31.88
Neutral
2.61
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 29.49 is below the 20-day moving average (MA) of 29.63, below the 50-day MA of 30.11, and above the 200-day MA of 20.54, indicating a neutral trend. The MACD of -1.02 indicates Positive momentum. The RSI at 31.88 is Neutral, neither overbought nor oversold. The STOCH value of 2.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $2.63B | 60.10 | 7.39% | ― | 13.48% | 0.69% | |
68 Neutral | $3.94B | 247.25 | 50.74% | ― | 14.90% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $10.60B | -248.16 | -0.64% | ― | 2.67% | 93.53% | |
51 Neutral | $9.12B | -152.31 | -3.16% | ― | 30.59% | -1171.00% | |
46 Neutral | $689.29M | -19.01 | -18.82% | ― | 18.84% | 77.12% |
* Technology Sector Average
EXTR
Extreme Networks
23.97
3.89
19.37%
ADTN
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VIAV
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28.28
260.41%
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.