Extreme Networks, Inc. (EXTR)
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-09-04
$21.70-0.87%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-09-04
QuarterlyIQ Insights · EXTR
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-09-04.
The screen ranks EXTR against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 3 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated strong grew net income 65% of the time over the next year (vs 52% for the rest of the cohort, n=6360).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 100% of the last 5 guided quarters · 200.0% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue to grow product revenue at a double-digit pace fueled by AI platform demand and broad product availability.
Stated as a priority in 3 of last 3 quarters. Revenue grew from $1,140.1M in 2025-Q4 to $1,283.6M in 2026-Q4, a 13% increase year-over-year. Management emphasized six consecutive quarters of double-digit product revenue growth, indicating the trajectory is delivering.
“We closed Fiscal 2026 delivering 13% year-over-year revenue growth, and the fourth quarter marked our sixth consecutive quarter of double-digit growth.”
“Our fifth straight quarter of double-digit growth highlights strong momentum, fueled by disciplined execution and rising demand for our AI-powered platform.”
“Demand and Supply Chain Management Drive Double-Digit Product Revenue Growth Outlook for FY27.”
Sustain gross margin near 61-62% through pricing actions and supply chain management.
Stated as a priority in 3 of last 3 quarters. GAAP gross margin was 61.5% in fiscal 2026, slightly down from 62.2% the prior year, while non-GAAP gross margin was 62.1%, down from 62.9%. Management attributes margin stability to pricing actions offsetting supply chain costs, showing delivering with slight margin pressure.
“The fourth quarter marked our third consecutive quarter of gross margin improvement, translating into operating leverage.”
Expand SaaS annual recurring revenue and subscription revenue through platform adoption and customer engagement.
Stated as a priority in 3 of last 3 quarters. SaaS ARR increased from approximately $207.6M in 2025-Q4 to $244.3M in 2026-Q4, a 17.7% year-over-year growth. Management highlighted accelerating SaaS ARR growth driven by platform adoption, indicating delivering progress.
Enhance operating margin and net income through revenue growth and cost management.
Stated as a priority in 3 of last 3 quarters. GAAP operating margin improved from 1.5% in fiscal 2025 to 4.9% in fiscal 2026, and non-GAAP operating margin rose from 14.2% to 14.8%. Net income turned positive with $18.0M GAAP net income in 2026-Q4 versus a loss last year. The trajectory is delivering.
Ensure liquidity and financial flexibility through cash flow generation and credit facilities.
Stated as a priority in 2 of last 3 quarters. The company entered a $500 million revolving credit facility in July 2026, enhancing liquidity. Net cash improved from $11.3M at 2026-Q3 to $46.8M at 2026-Q4. Management is delivering on financial flexibility.
Over the trailing year it converted 3.27x of net income into operating cash flow. Historically, Information Technology names rated robust grew net income 62% of the time over the next year (vs 50% for the rest of the cohort, n=3128).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
6 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Information Technology names rated neutral grew net income 60% of the time over the next year (vs 57% for the rest of the cohort, n=3673).
Not investment advice. As of 2026-09-04.
“Targeted pricing actions we implemented are successfully offsetting the incremental supply chain costs we have incurred.”
“Demand and Supply Chain Management Drive Double-Digit Product Revenue Growth Outlook for FY27.”
“SaaS ARR $244.3 million, up 17.7% year-over-year and 3.4% quarter-over-quarter.”
“SaaS ARR $236.4 million, up 28.6% year-over-year and 4.2% quarter-over-quarter.”
“Demand and Supply Chain Management Drive Double-Digit Product Revenue Growth Outlook for FY27.”
“GAAP operating profit margin 6.2%, compared to GAAP operating loss margin 0.4% last year.”
“GAAP operating margin 5.5%, compared to 3.6% last year.”
“Operating margin improvement driven by revenue growth and cost discipline.”
“Strengthened financial flexibility with a $500 million revolving credit facility entered into on July 29, 2026.”
“Q3 net cash was $11.3 million, compared to $47.3 million at the end of Q2 2026.”