Highlights

  • Fiscal first quarter 2027 revenue was $341.1 million, up 10% year-over-year, with GAAP net income of $16.0 million.
  • SaaS ARR was $264.7 million, up 22% year-over-year, and GAAP diluted EPS was $0.12 compared with $0.04 a year earlier.
  • The company repurchased 844,131 shares for $25.0 million at an average price of $29.62 per share during the quarter.
  • Fiscal 2027 targets are total net revenue of $1,402.3 million to $1,412.3 million and non-GAAP EPS of $1.35 to $1.39.

Extreme Networks, Inc. (NASDAQ:EXTR) shares were trading at USD 24.23 on October 28, 2026, up 1.59%, with a relative volume at time of 3.96. The cloud networking company announced general availability of Extreme Agent ONE Coworker in early September and reported results for its first quarter of fiscal 2027, along with second quarter and full-year targets, on October 28.

Extreme Networks, Inc. is incorporated in Delaware and has its principal executive offices in Morrisville, North Carolina. The company describes itself as an AI-powered cloud networking provider focused on simple and secure solutions that help businesses connect devices, applications and users. Its offerings include Extreme Platform ONE, ExtremeCloud IQ, switching, Wi-Fi 7 and fabric solutions. Its fiscal year ends June 30, and the quarter reported here ended September 30, 2026.

First Quarter Fiscal 2027 Results

Total net revenue was $341.1 million for the quarter ended September 30, 2026, compared with $310.2 million a year earlier. Product revenue was $218.3 million and subscription and support revenue was $122.8 million.

On a GAAP basis, gross margin was 62.1%, compared with 60.6% last year, and operating margin was 6.8%, compared with 3.6%. Net income was $16.0 million, compared with $5.6 million, and net income per diluted share was $0.12, compared with $0.04.

On a non-GAAP basis, gross margin was 62.6%, operating margin was 17.4% and net income was $44.5 million. Non-GAAP diluted EPS was $0.33, compared with $0.22. Adjusted EBITDA was $65.6 million, up 47% year-over-year. SaaS ARR, an operating metric, was $264.7 million.

Liquidity and Capital Return

The quarter-ending cash balance was $244.5 million, which the company described as an increase of $32.7 million from the end of the fourth quarter of fiscal 2026 and an increase of $35.5 million from the end of the first quarter a year earlier. Gross debt was $200.0 million and net cash was $44.5 million, compared with $46.8 million at the end of the fourth quarter of fiscal 2026.

Cash flow provided by operations was $45.4 million, compared with cash used of $14.0 million a year earlier. Capital expenditures were $6.8 million, and non-GAAP free cash flow was $38.6 million, compared with negative $20.9 million.

Extreme repurchased 844,131 shares for $25.0 million during the quarter at an average price of $29.62 per share. On the call, management said it held $36 million of memory inventory, purchased to secure supply through calendar 2027.

Business Developments

In early September, Extreme announced general availability of Extreme Agent ONE Coworker for Extreme Platform ONE. The company said early engagement was roughly 10x that of its first-generation conversational AI agent.

Last week the company previewed its roadmap for on-premises enterprise AI. It said Extreme Exchange zones are planned for general availability in the first half of CY27.

The company also described customer wins, including a U.S. health network with 21 hospitals and 600 care locations, the Cambridgeshire and Peterborough NHS Foundation Trust, Phoenix International Raceway, and regio iT GmbH in Germany, which selected Extreme Wi-Fi 7 for 1,500 access points.

Business Outlook

For the second quarter of fiscal 2027, ending December 31, 2026, Extreme is targeting total net revenue of $345.8 million to $350.8 million. GAAP earnings per share are targeted at $0.19 to $0.22, and non-GAAP earnings per share at $0.32 to $0.34. Non-GAAP operating margin is targeted at 16.4% to 17.4%.

For the full fiscal year 2027, ending June 30, 2027, the company is targeting total net revenue of $1,402.3 million to $1,412.3 million. GAAP earnings per share are targeted at $0.77 to $0.83, and non-GAAP earnings per share at $1.35 to $1.39. Non-GAAP operating margin is targeted at 17.2% to 17.6%.

On the call, management said it is increasing its fiscal 2027 guidance and expects a non-GAAP tax rate of 21.8% for the year. The company noted that actual results could differ materially from these forward-looking targets.