EXTR · Extreme Networks, Inc.

Extreme Networks delivered its fifth consecutive quarter of double-digit revenue growth, with Q3 FY2026 total revenue reaching $316.9 million, up 11% year-over-year, driven by product revenue growth of $21.3 million to $199.4 million and subscription and support revenue up $11.1 million to $117.5 million. SaaS ARR accelerated sharply to $236.4 million, reflecting 28.6% YoY growth and deeper adoption of Extreme Platform ONE, as highlighted by CEO Ed Meyercord, who emphasized the platform's role in driving automation and recurring revenue. Gross margins held steady at 61.7% GAAP and 62.3% non-GAAP, supported by targeted pricing actions offsetting supply chain costs, with the company securing forward supply chain commitments including memory sourcing and product redesigns to stabilize margins ahead. Operating margins expanded to 5.5% GAAP and 15.2% non-GAAP, with non-GAAP net income rising to $34.8 million and EPS steady at $0.26. Liquidity remained solid with $210.1 million in cash, though net cash dipped to $11.3 million amid $50 million in share repurchases signaling confidence in cash flow durability. New wins with Asiana Airlines, UK NHS trusts, London Business School, and others underscore platform momentum and share gains against competitors. Q4 guidance targets revenue growth to $330-335 million with non-GAAP EPS of $0.28-0.30, while full-year revenue outlook of $1,275-1,280 million supports ongoing execution amid resilient enterprise demand.