0001406666-26-000034
SEC filingCalix holds $194M in liquidity, $338M in purchase commitments, and $94M remaining buyback authorization.
As of June 27, 2026, Calix reported cash and cash equivalents of $68.9 million and marketable securities of $125.4 million, totaling $194.3 million in liquid assets, a decrease from $388.1 million at year-end 2025 due to aggressive share repurchases and investing activities. The company has no debt. Stockholders' equity stood at $710.0 million, down from $859.2 million at December 31, 2025, primarily driven by $242 million in stock repurchases. Inventory increased to $180.5 million from $133.7 million, reflecting higher finished goods and component stock. Remaining performance obligations (RPOs) totaled $386.4 million, with 42% expected to be recognized as revenue over the next 12 months.
The most notable commitment is $338.3 million in outstanding purchase obligations to contract manufacturers and other vendors as of June 27, 2026, up from $317.8 million at year-end 2025. These are primarily for component and finished goods inventory to support build forecasts. Additionally, operating lease commitments total $13.98 million in present value, with future minimum lease payments of $16.4 million through 2033, including $8.4 million for the San Jose headquarters lease expiring in January 2033.
During the six months ended June 27, 2026, Calix repurchased 5.0 million shares for $240.2 million at an average price of $48.42. The board authorized a $225.0 million increase to the repurchase program during 2026, leaving $94.1 million available as of quarter-end. No dividends were paid or declared. Capital expenditures were not disclosed in the Notes but the cash flow statement showed $12.7 million in property and equipment purchases for the six months. The company also maintained a significant stock-based compensation program, with $37.3 million in expense for the six months.
Calix operates as a single reporting segment. The CODM, the CEO, evaluates performance based on company-wide revenue, gross margin, and operating loss. For the six months ended June 27, 2026, total revenue was $573.3 million, with 94.7% from the United States ($543.1 million), 2.5% from the Americas ex US, 2.0% from Europe, and 0.7% from the rest of the world. Property and equipment is primarily located in the US ($31.6 million), with smaller amounts in India and China.
Operating cash flow (OCF) of $31.1M was significantly lower than net income of $28.3M, indicating reasonable cash conversion despite a large negative swing in working capital. Key non-cash items like stock-based comp ($37.3M) and depreciation ($8.8M) added back, but working capital consumed $39.9M net (driven by $37.0M increase in accounts receivable, $46.7M inventory build, offset by $50.9M increase in accounts payable). The inventory buildup and receivable growth suggest potential demand softening or channel stuffing, though payable increase provides some offset.
Capital expenditures rose 58% YoY to $12.7M, modest relative to OCF, resulting in OCF-capex coverage of 2.5x. However, investing activities overall provided $106.9M due to net sales of marketable securities, indicating the company is liquidating investments to fund operations and share repurchases.
Share repurchases of $240.2M far exceeded OCF, financed by both operating cash and investment liquidation. This aggressive capital return raises sustainability concerns if OCF does not rebound. No dividends were paid.
Overall, cash flow quality is adequate but pressured by working capital and heavy buybacks. The cash balance declined from $143.1M to $68.9M.