Calix Inc (CALX) Q1 2025 Earnings Call Highlights: Record Growth and Strategic Expansions
Non-GAAP Gross Margin: 56.2%, a record for the company.
Remaining Performance Obligations (RPOs): $340 million, up 4% sequentially and 39% year over year.
Current RPOs: $128 million, up 6% sequentially and 30% year over year.
New BSP Customers: 16 added in the first quarter.
Free Cash Flow: Double-digit for the eighth consecutive quarter.
Cash and Investments: $282 million, after $40 million in share repurchases.
Days Sales Outstanding (DSO): 30 days, down six days sequentially and 10 days year over year.
Inventory Turns: 3.6.
Q2 2025 Revenue Guidance: $221 million to $227 million, a 2% sequential increase at the midpoint.
Stock Repurchase Program: Increased by $100 million.
Warning! GuruFocus has detected 5 Warning Sign with CALX.
Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Calix Inc (NYSE:CALX) reported strong demand in the first quarter, delivering revenue of $220 million, which represented a 7% sequential quarterly revenue growth.
The company achieved a record non-GAAP gross margin of 56.2% in the first quarter, driven by customer mix and new subscriber wins.
Calix Inc (NYSE:CALX) added 16 new BSP customers, with the majority being competitive takeaways, indicating strong market positioning.
The company maintained a strong balance sheet, generating double-digit free cash flow for the eighth consecutive quarter and ending with cash and investments of $282 million.
Calix Inc (NYSE:CALX) increased its stock repurchase program by $100 million, reflecting confidence in its financial position and future prospects.
The dynamic environment presents challenges in forecasting costs with precision, potentially impacting financial performance.
The company faces ongoing uncertainty related to tariffs, which could affect future costs and supply chain dynamics.
Calix Inc (NYSE:CALX) acknowledges the inherent lumpiness in its business, particularly with large customer accounts, which can lead to variability in quarterly results.
The company is not including potential BEAD funding in its growth forecasts due to uncertainty around timing and disbursement.
Despite strong performance, Calix Inc (NYSE:CALX) operates in a competitive market with ongoing challenges from other broadband providers and technology shifts.
Q: Can you provide insights into the macro spending environment and your customers' CapEx plans for 2025? A: Michael Weening, President and CEO, explained that customers are investing appropriately in capital for network builds and consumer demand. Calix's business model, which focuses on marketing analytics and consumer insights, helps broadband experience providers attract new subscribers and drive capital investment. The company is confident in its business model and has guided higher for Q2 due to strong demand.
Q: What impact do tariffs have on your business, and how are you managing potential cost increases? A: Cory Sindelar, CFO, stated that tariffs have not impacted Q1 results, and the company has inventory to protect against immediate effects. Calix plans to pass any future tariff-related costs to customers without adding profit margins. The company has a strong supply chain team and a diversified manufacturing presence to minimize costs and ensure supply.
Q: Do you expect sequential revenue growth throughout 2025, and what is your outlook for 2026? A: Cory Sindelar confirmed that Calix expects sequential revenue growth throughout 2025, even with demand pull-forwards from large customers. The company anticipates low double-digit growth for 2026, maintaining its growth trajectory.
Q: How is Calix positioned to benefit from the DZS bankruptcy, and what opportunities do you see? A: Michael Weening expressed sympathy for customers affected by the DZS bankruptcy and emphasized Calix's focus on offering support and solutions to those in need. While there may be opportunities for Calix, the company's primary goal is to help affected customers navigate their challenges.
Q: What is the status of BEAD funding, and how does it impact your growth projections? A: Michael Weening noted that BEAD funding is not included in Calix's growth projections due to ongoing uncertainties. The company expects BEAD to take longer to arrive but believes it will eventually provide a significant tailwind. Calix remains focused on its strong broadband business model, which drives demand independently of BEAD funding.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
5 minutes ago
- Yahoo
Redwood Trust Launches Reopening of $50 Million of 7.75% Convertible Senior Notes Due 2027
MILL VALLEY, Calif., August 21, 2025--(BUSINESS WIRE)--Redwood Trust, Inc. (NYSE: RWT; "Redwood" or the "Company") today announced that it plans to offer, subject to market and other conditions, $50 million aggregate principal amount of its 7.75% convertible senior notes due 2027 (the "Notes") in a direct placement registered under the Securities Act of 1933, as amended. The Notes will be issued as a reopening of, and will be part of the same series as, the 7.75% convertible senior notes due 2027 that the Company originally issued in June 2022 (the "Initial Notes") and the 7.75% convertible senior notes due 2027 that the Company issued in October 2024 (the "Initial Additional Notes" and, together with the Initial Notes, the "Existing Notes"). Currently, $247,170,000 aggregate principal amount of Existing Notes are outstanding. Redwood intends to use the net proceeds from this offering for general corporate purposes, which may include (i) funding of Redwood's operating business and investment activity, which may include funding its residential and business purpose lending mortgage banking businesses, acquiring mortgage-backed securities for its investment portfolio, and funding strategic acquisitions and investments and/or (ii) the repayment of existing indebtedness, which may include the repurchase or repayment of a portion of the 5.75% exchangeable senior notes due 2025 issued by one of Redwood's subsidiaries. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities referred to in this press release, nor will there be any sale of any such securities, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. About Redwood Trust Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit where we provide liquidity to growing segments of the U.S. housing market not well served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms, whole-loan distribution activities, joint ventures and our publicly traded shares. We operate through three core residential housing-focused operating platforms — Sequoia, Aspire, and CoreVest — alongside our complementary Redwood Investments portfolio which is primarily composed of assets we source through these platforms. In addition, through RWT Horizons®, our venture investing initiative, we invest in early-stage companies that have a direct nexus to our operating platforms. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. Redwood Trust is internally managed and structured as a real estate investment trust ("REIT") for tax purposes. CAUTIONARY STATEMENT: This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, such as statements related to the placement of Notes and the expected use of the net proceeds. Forward-looking statements involve numerous risks and uncertainties. Redwood's actual results may differ materially from those projected, and Redwood cautions investors not to place undue reliance on the forward-looking statements contained in this release. Forward-looking statements are not historical in nature and can be identified by words such as "anticipate," "estimate," "will," "should," "expect," "believe," "intend," "seek," "plan," and similar expressions or their negative forms, or by references to strategy, plans, or intentions. These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in Redwood's filings with the Securities and Exchange Commission. Redwood undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. View source version on Contacts Kaitlyn MauritzHead of Investor RelationsPhone: (866) 269-4976Email: investorrelations@
Business Wire
37 minutes ago
- Business Wire
Redwood Trust Launches Reopening of $50 Million of 7.75% Convertible Senior Notes Due 2027
MILL VALLEY, Calif.--(BUSINESS WIRE)--Redwood Trust, Inc. (NYSE: RWT; 'Redwood' or the 'Company') today announced that it plans to offer, subject to market and other conditions, $50 million aggregate principal amount of its 7.75% convertible senior notes due 2027 (the 'Notes') in a direct placement registered under the Securities Act of 1933, as amended. The Notes will be issued as a reopening of, and will be part of the same series as, the 7.75% convertible senior notes due 2027 that the Company originally issued in June 2022 (the 'Initial Notes') and the 7.75% convertible senior notes due 2027 that the Company issued in October 2024 (the 'Initial Additional Notes' and, together with the Initial Notes, the 'Existing Notes'). Currently, $247,170,000 aggregate principal amount of Existing Notes are outstanding. Redwood intends to use the net proceeds from this offering for general corporate purposes, which may include (i) funding of Redwood's operating business and investment activity, which may include funding its residential and business purpose lending mortgage banking businesses, acquiring mortgage-backed securities for its investment portfolio, and funding strategic acquisitions and investments and/or (ii) the repayment of existing indebtedness, which may include the repurchase or repayment of a portion of the 5.75% exchangeable senior notes due 2025 issued by one of Redwood's subsidiaries. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities referred to in this press release, nor will there be any sale of any such securities, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. About Redwood Trust Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit where we provide liquidity to growing segments of the U.S. housing market not well served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms, whole-loan distribution activities, joint ventures and our publicly traded shares. We operate through three core residential housing-focused operating platforms — Sequoia, Aspire, and CoreVest — alongside our complementary Redwood Investments portfolio which is primarily composed of assets we source through these platforms. In addition, through RWT Horizons®, our venture investing initiative, we invest in early-stage companies that have a direct nexus to our operating platforms. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. Redwood Trust is internally managed and structured as a real estate investment trust ('REIT') for tax purposes. CAUTIONARY STATEMENT: This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, such as statements related to the placement of Notes and the expected use of the net proceeds. Forward-looking statements involve numerous risks and uncertainties. Redwood's actual results may differ materially from those projected, and Redwood cautions investors not to place undue reliance on the forward-looking statements contained in this release. Forward-looking statements are not historical in nature and can be identified by words such as 'anticipate,' 'estimate,' 'will,' 'should,' 'expect,' 'believe,' 'intend,' 'seek,' 'plan,' and similar expressions or their negative forms, or by references to strategy, plans, or intentions. These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in Redwood's filings with the Securities and Exchange Commission. Redwood undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Business Wire
37 minutes ago
- Business Wire
California American Water Files Motion for Summary Judgment on Hostile Government Takeover Attempt
PACIFIC GROVE, Calif.--(BUSINESS WIRE)--California American Water has filed a Motion for Summary Judgment asking the Monterey County Superior Court to enter Judgment in favor of California American Water and dismiss the Monterey Peninsula Water Management District's (District) lawsuit seeking to take ownership of the company's Monterey Peninsula water system through eminent domain. The motion argues that the District cannot meet fundamental legal requirements needed to proceed with its action, which therefore should be dismissed. 'California American Water is the Monterey Peninsula's provider of safe, reliable water service. Our team is focused on and remains committed to serving their community,' said Evan Jacobs, Director of External Affairs. 'The District does not have the required Monterey County LAFCO approval or authority to be a retail water provider and has spent more than $3 million dollars of residents' funds on their misguided effort.' California American Water's motion asserts that the District lacks legal authorization from the Monterey County Local Agency Formation Commission (LAFCO) to provide retail potable water service. In addition, California American Water asserts that the District is not and has never been an operator of a public water system responsible for the provision of safe drinking water to homes, schools and businesses. The District was created to manage water resources and endeavor to find new, reliable water sources. It is not a retail potable water provider. Subject to any appeals, the Motion for Summary Judgment will end the eminent domain case with judgment in favor of California American Water. 'The Water Management District needs to focus on its original charge, to secure reliable new water sources for the Monterey Peninsula and protect the Carmel River,' said Jacobs. 'Instead, they are focused on lawsuits that are driving up costs for local residents.' California American Water and its predecessor companies have operated the Monterey Peninsula's water system for more than 60 years. The system currently serves roughly 100,000 people with a network of over 680 miles of pipeline and over 100 storage tanks. It is one of the most complex water systems in California. About American Water American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water's 6,700 talented professionals leverage their significant expertise and the company's national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders. For more information, visit and join American Water on LinkedIn, Facebook, X and Instagram. About California American Water California American Water, a subsidiary of American Water, provides safe, clean, reliable and affordable water and wastewater services to approximately 750,000 people. For more information, visit and follow California American Water on LinkedIn, Facebook, X, and Instagram.
