Latest news with #ExtremeNetworks
Yahoo
07-08-2025
- Business
- Yahoo
Extreme Networks Inc (EXTR) Q4 2025 Earnings Call Highlights: Record Revenue Growth and ...
Revenue: $307 million in Q4, a 20% increase year-over-year. SaaS ARR Revenue: $208 million, up 24% year-over-year. Earnings Per Share (EPS): $0.25, exceeding consensus of $0.23, up 32% from $0.19 in the prior year quarter. Product Revenue: $192 million, a 26% increase year-over-year. Non-GAAP Gross Margin: 62.3% in Q4. Operating Margin: 15.2%, up from 13.5% in the prior year. Free Cash Flow: $75 million in Q4, highest quarterly level since 2023. Cash Position: Ended the quarter with $232 million in cash. Deferred Revenue: SaaS-deferred revenue at $308 million, total deferred revenue above $600 million. Full Fiscal Year Revenue: $1.140 billion, a 2% increase year-over-year. Guidance for Q1 Fiscal 2026: Revenue between $292 million to $300 million; EPS between $0.20 to $0.23. Warning! GuruFocus has detected 7 Warning Signs with EXTR. Release Date: August 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Extreme Networks Inc (NASDAQ:EXTR) reported its fifth consecutive quarter of sequential revenue growth, with Q4 revenue reaching $307 million, a 20% increase year-over-year. The company saw strong performances in the APAC and EMEA regions, with significant wins such as the Japanese government and MetLife Stadium. Extreme Networks Inc (NASDAQ:EXTR) launched its AI-powered Extreme Platform ONE, which has been positively received and is expected to drive future growth. The company achieved its best bookings quarter in the past two years, reflecting strong customer demand across its portfolio. Extreme Networks Inc (NASDAQ:EXTR) expanded its MSP program, doubling the number of partners year-over-year, and introduced consumption-based billing to enhance flexibility and scalability. Negative Points Despite strong growth, the company faces risks and uncertainties that could cause actual results to differ materially from expectations. The competitive landscape remains challenging, with major players like Cisco and the recent HPE-Juniper merger posing potential threats. The company's product margins have been consistent but face pressure from commoditization in the hardware market. Extreme Networks Inc (NASDAQ:EXTR) is still in the early stages of its MSP program, with significant work needed to unlock larger opportunities. The company has not yet captured large incumbent telecom carriers as MSP partners, which could limit growth in that segment. Q & A Highlights Q: Congratulations on a terrific quarter and a solid outlook. I wanted to dive into the success you were seeing in EMEA and APAC. Was this growth sustainable into fiscal '26? A: Edward Meyercord, President and CEO, explained that the growth in EMEA has been gradual and is expected to continue due to a stabilized political environment and new opportunities, such as with the German government. In APAC, significant growth was driven by large wins with the Japanese government, and the momentum is expected to continue due to strong partner relationships and unique solutions. Q: Was there any benefit to pull forward orders in Q4 due to stable pricing despite tariff uncertainties? A: Edward Meyercord noted that there was minimal impact from pull-forward orders as their product categories were exempt from tariffs. The company communicated this to customers, and the market mindset reflected this understanding. Q: How much did Platform ONE contribute in the quarter, and what is the expected impact on ARR bookings? A: Edward Meyercord stated that Platform ONE had just become generally available, and its impact would be more significant in the second half of the year. The platform is expected to fuel customer decisions to choose Extreme, with serious migrations anticipated as the calendar year progresses. Q: Can you characterize the growth cycle of your MSP partners and their impact on customer wins? A: Edward Meyercord mentioned that the MSP program is still in early stages, with significant progress made in automating billing cycles. The response to the platform has been positive, and momentum is expected to build throughout the year. Q: How are you thinking about opportunities in the Fortune 500 market given the competitive landscape? A: Edward Meyercord highlighted that Extreme is moving upmarket with significant wins and a strong funnel of large opportunities. The company's fabric technology and competitive advantages are key to winning large customers, and they are focused on elevating the brand and increasing market presence. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Business Wire
06-08-2025
- Business
- Business Wire
Extreme Networks Reports Fourth Quarter and Fiscal Year 2025 Financial Results
MORRISVILLE, N.C.--(BUSINESS WIRE)--Extreme Networks, Inc. ('Extreme') (Nasdaq: EXTR) today released financial results for its fourth quarter and fiscal year ended June 30, 2025. Q4 revenue grew 20 percent year-over-year and SaaS ARR by 24 percent, year-over-year. 'We closed the fourth quarter with significant momentum, driven by sharp execution and growing demand for our solutions and services,' said Ed Meyercord, President and CEO of Extreme. 'Five consecutive quarters of revenue growth and ARR jumping 24 percent year-over-year are clear indicators that our subscription model is gaining traction. Increased customer engagement in EMEA and APAC underscores our global momentum, highlighted by sizeable wins this quarter.' Meyercord continued, 'I'm proud of our team for putting Extreme at the forefront of AI innovation in networking. Platform ONE is the first generally available AI for networking platform that provides a fundamentally advanced customer experience achieved through a mix of conversational and agentic AI capabilities. With Extreme Platform ONE we're intent to redefine enterprise networking with end-to-end visibility, AI-powered automation, and the industry's most intuitive and simplified licensing model. We are well-positioned to accelerate growth, gain market share, and lead this next wave of AI-driven innovation.' Kevin Rhodes, Executive Vice President and Chief Financial Officer stated, 'Fourth quarter results were driven by continuous sequential growth in revenue and prudent expense management leading to a strong cash flow quarter. Heading into the new fiscal year, our outlook is for a re-acceleration of overall revenue growth on a full-year basis, which we expect to translate to higher earnings and cash flow.' Fiscal Fourth Quarter Results: Revenue $307.0 million, up 19.6% year-over-year and up 7.9% quarter-over-quarter SaaS ARR $207.6 million, up 24.4% year-over-year and 13.0% quarter-over-quarter GAAP diluted loss per share $0.06, compared to GAAP diluted loss per share $0.42 last year and GAAP diluted EPS $0.03 last quarter Non-GAAP diluted EPS $0.25, compared to Non-GAAP diluted loss per share $0.08 last year and Non-GAAP diluted EPS $0.21 last quarter GAAP gross margin 61.6%, compared to 44.7% last year and 61.7% last quarter Non-GAAP gross margin 62.3%, compared to 45.4% last year and 62.3% last quarter GAAP operating loss margin 0.4%, compared to GAAP operating loss margin 19.1% last year and GAAP operating profit margin 3.6% last quarter Non-GAAP operating profit margin 15.2%, compared to Non-GAAP operating loss margin 4.6% last year and Non-GAAP operating profit margin 14.1% last quarter Shares repurchases amounted to $25.0 million during the quarter for a total of approximately 1.5 million shares Fiscal Year 2025 Results: Revenue $1,140.1 million, up 2% year-over-year GAAP diluted loss per share $0.06, compared to GAAP diluted loss per share $0.66 last year Non-GAAP diluted EPS $0.84, compared to Non-GAAP diluted EPS $0.33 last year GAAP gross margin 62.2%, compared to GAAP gross margin 56.5% last year Non-GAAP gross margin 62.9%, compared to Non-GAAP gross margin 57.2% last year GAAP operating profit margin 1.5%, compared to GAAP operating loss margin 5.8% last year Non-GAAP operating profit margin 14.2%, compared to Non-GAAP operating profit margin 6.2% in the prior year Liquidity: Q4 ending cash balance was $231.7 million, an increase of $46.2 million from the end of Q3 2025 and an increase of $75.0 million from the end of Q4 in the prior year. Q4 net cash was $51.7 million, an increase of $48.7 million from net cash of $3.0 million at the end of Q3 2025 and an increase of $85.0 million from net debt of $33.3 million at the end of Q4 in the prior year. Recent Key Highlights: Extreme is now the first and only networking vendor to deliver conversational, multimodal, and agentic AI fully integrated into the networking experience with Extreme Platform ONE™, which was made generally available last month. Interest in the platform has been strong. Extreme Connect 2025 in Paris, France, was the company's largest user event to date, attracting nearly 1,000 in-person attendees and thousands of livestream viewers. Attendees experienced live demos of Extreme Platform ONE in action, gained insights from top industry leaders—including executives from Microsoft and Intel—and participated in hands-on technical breakouts. Extreme continued to extend its footprint within the Japanese government with two new multimillion dollar deals. Extreme and partners will deploy Extreme Fabric from core to the branch using ExtremeCloud SD-WAN devices, managed from ExtremeCloud IQ. This can improve the efficiency of the government employees by making it convenient to securely connect to the network anywhere across the country. MetLife Stadium selected Extreme to displace a large incumbent provider and replace its legacy wireless infrastructure. This builds on MetLife's existing Extreme wired network to deliver a modernized, high-density Wi-Fi 6E experience. The upgrade enhances overhead and under-seat wireless connectivity to support major events like NFL games, concerts, and high-profile international soccer games. ENAIRE, the fourth largest air navigation service provider in Europe, which provides services for more than 2.3 million aircraft movements across Spain each year, recently deployed Extreme's wired solutions to improve connectivity and network performance for its mission-critical operations. Pinnacle Bank Arena, owned by the City of Lincoln, Nebraska, and managed by ASM Global, is home to year-round concerts and events – including the University of Nebraska men's and women's basketball teams – is now fully supported by Extreme's wired and wireless solutions. The arena selected Extreme's 6 GHz under-seat and overhead Wi-Fi solutions to power a more modern fan and operational experience, including digital ticketing, concessions, Audio Visual, and IP-based TV improvements. Hendrick Motorsports has deployed wired and wireless solutions from Extreme to upgrade and replace legacy hardware across its 150-acre campus. The leading professional race team will now have the improved coverage, connectivity, and security necessary for onsite team operations, and Extreme Fabric will deliver the security, flexibility, and visibility necessary for Hendrick's separate R&D facilities. Surrey & Sussex Healthcare NHS Trust ('SASH') is a network of healthcare facilities that supports a population of 740,000+ in southern England. It deployed Extreme to improve the Wi-Fi connectivity that is essential to delivering continuity of patient care. The healthcare network will also leverage ExtremeCloud IQ and Extreme Fabric for flexible, centralized and secure network management, enforcement and visualization. Extreme was named one of Newsweek's World's Greenest Companies in 2025, based on research of publicly available data provided by GIST Impact as available through March 1, 2025. Extreme was also a winner in the 2025 Newsweek AI Impact Awards for innovation of its internal Marketing and Sales AI Assistant, which has significantly boosted productivity for sales and marketing teams as well as Extreme partners. Non-GAAP Results Three Months Ended Year Ended June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change Product $ 191.9 $ 152.8 $ 39.1 $ 704.5 $ 699.3 $ 5.2 Subscription and support 115.1 103.9 11.2 435.6 417.9 17.7 Total net revenue $ 307.0 $ 256.7 $ 50.3 $ 1,140.1 $ 1,117.2 $ 22.9 Gross margin 62.3 % 45.4 % 16.9 % 62.9 % 57.2 % 5.7 % Operating margin 15.2 % (4.6 )% 19.8 % 14.2 % 6.2 % 8.0 % Net income (loss) $ 33.5 $ (9.9 ) $ 43.4 $ 112.4 $ 43.4 $ 69.1 Net income (loss) per diluted share $ 0.25 $ (0.08 ) $ 0.33 $ 0.84 $ 0.33 $ 0.51 Expand Extreme uses the non-GAAP free cash flow metric as a measure of operating performance. Free cash flow represents GAAP net cash provided by (used in) operating activities, less purchases of property, equipment and capitalized software development costs. Extreme considers free cash flow to be useful information for management and investors regarding the amount of cash generated by the business after the purchases of property, equipment and capitalized software development costs, which can then be used to, among other things, invest in Extreme's business, make strategic acquisitions, and strengthen the balance sheet. A limitation of the utility of this non-GAAP free cash flow metric as a measure of financial performance is that it does not represent the total increase or decrease in the Company's cash balance for the period. The following table shows non-GAAP free cash flow calculation (in millions): SaaS ARR: Extreme uses SaaS annual recurring revenue ('SaaS ARR') to identify the annual recurring revenue of ExtremeCloud IQ and other subscription revenue, based on the annualized value of quarterly subscription revenue and term-based licenses. We believe that SaaS ARR is an important metric because it is driven by our ability to acquire new customers and to maintain and expand our relationships with existing customers. SaaS ARR should be viewed independently of revenue or deferred revenue that are accounted for under U.S. GAAP. SaaS ARR does not have a standardized meaning and therefore may not be comparable to similarly titled measures presented by other companies. SaaS ARR is not intended to be a replacement for forecasts of revenue. Gross debt: Gross debt is defined as long-term debt and the current portion of long-term debt as shown on the balance sheet plus unamortized debt issuance costs, if any. Net cash (debt): is defined as cash and cash equivalents minus gross debt, as shown in the table below (in millions): Business Outlook: Extreme's business outlook is based on current expectations. The following statements are forward-looking, and actual results could differ materially based on various factors, including market conditions and the factors set forth under 'Forward-Looking Statements' below. For its first quarter fiscal 2026, ending September 30, 2025, the Company is targeting: (in millions, except percentages and per share information) Low-End High-End FQ1'26 Guidance – GAAP Total net revenue $ 292.0 $ 300.0 Gross margin 61.1 % 61.6 % Operating margin 0.2 % 2.2 % Earnings (loss) per share $ (0.03 ) $ 0.02 Shares outstanding used in calculating GAAP EPS 133.2 134.7 FQ1'26 Guidance – Non-GAAP Total net revenue $ 292.0 $ 300.0 Gross margin 61.9 % 62.3 % Operating margin 12.7 % 14.5 % Earnings per share $ 0.20 $ 0.23 Diluted Shares outstanding used in calculating non-GAAP EPS 134.7 134.7 Expand The following table shows the GAAP to non-GAAP reconciliation for Q1 FY'26 guidance: For the full year fiscal 2026, ending June 30, 2026, the Company is targeting (in millions): Conference Call: Extreme will host a conference call at 8:00 a.m. Eastern (5:00 a.m. Pacific) today to review the fourth quarter and fiscal year 2025 results as well as the business outlook for the first quarter of fiscal 2026 ending September 30, 2025, including significant factors and assumptions underlying the targets noted above. The conference call will be available to the public through a live audio web broadcast via the internet at and a replay of the call will be available on the website for at least 7 days following the call. To access the call, please go to this link (Registration Link) and you will be provided with dial in details. If you would like to participate in the Q&A, please register here: Q&A Registration Link. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. About Extreme: Extreme Networks, Inc. (EXTR) is a leader in AI-driven cloud networking, focused on delivering simple and secure solutions that help businesses address challenges and enable connections among devices, applications, and users. We push the boundaries of technology, leveraging the powers of artificial intelligence, analytics, and automation. Tens of thousands of customers globally trust our AI-driven cloud networking solutions and industry-leading support to enable businesses to drive value, foster innovation, and overcome extreme challenges. For more information, visit Extreme's website at or LinkedIn, YouTube, X (Formerly Twitter), Facebook or Instagram Extreme Networks, ExtremeCloud, Extreme Platform ONE, and the Extreme Networks logo, are trademarks of Extreme Networks, Inc. or its subsidiaries in the United States and/or other countries. Other trademarks shown herein are the property of their respective owners. Non-GAAP Financial Measures: Extreme provides all financial information required in accordance with U.S. generally accepted accounting principles ('GAAP'). The Company is providing with this press release non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, net cash (debt) and free cash flow. In preparing non-GAAP information, the Company has excluded, where applicable, the impact of share-based compensation, amortization of intangibles, restructuring and related charges, system transition costs, litigation charges, debt refinancing charges and the tax effect of non-GAAP adjustments. The Company believes that excluding these items provides both management and investors with additional insight into its current operations, the trends affecting the Company, the Company's marketplace performance, and the Company's ability to generate cash from operations. Please note the Company's non-GAAP measures may be different than those used by other companies. The additional non-GAAP financial information the Company presents should be considered in conjunction with, and not as a substitute for, the Company's GAAP financial information. The Company has provided a non-GAAP reconciliation of the results for the periods presented in this release, which are adjusted to exclude certain items as indicated. These measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures for comparable financial information and understanding of the Company's ongoing performance as a business. Extreme uses both GAAP and non-GAAP measures to evaluate and manage its operations. Forward-Looking Statements: Statements in this press release, including statements regarding those concerning (i) the Company's business outlook and future operating metrics, and financial and operating results, (ii) global demand, (iii), adoption of the Company's highly technical solutions, and (iv) the Company's ability to benefit from the industry disruption from larger players in the enterprise market are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements speak only as of the date of this release. There are several important factors that could cause actual results and other future events to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, risks related to global macroeconomic and business trends; the Company's failure to achieve targeted financial metrics; a highly competitive business environment for network switching equipment and cloud management of network devices; the Company's effectiveness in controlling expenses; the possibility that the Company might experience delays in the development or introduction of new technology and products; customer response to the Company's new technology and products; risks related to pending or future litigation; political and geopolitical factors, including the possible impact of tariffs and changes to U.S. tax regulations; and a dependency on third parties for certain components and for the manufacturing of the Company's products. For more information about factors that could cause actual results and other future events to differ materially from those suggested or indicated by such forward-looking statements, see 'Management's Discussion and Analysis of Financial Condition and Results of Operations' and 'Risk Factors' included in the Company's Annual Report on Form 10-K for the year ended June 30, 2024, Quarterly Reports on Form 10-Q for the quarters ended September 30, 2024, December 31, 2024 and March 31, 2025 and other documents of the Company on file with the Securities and Exchange Commission (available at As a result of these risks and others, actual results could vary significantly from those anticipated in this press release, and the Company's financial condition and results of operations could be materially adversely affected. Except as required under the U.S. federal securities laws and the rules and regulations of the Securities and Exchange Commission, Extreme disclaims any obligation to update any forward-looking statements after the date of this release, whether as a result of new information, future events, developments, changes in assumptions or otherwise. June 30, 2025 ASSETS Current assets: Cash and cash equivalents $ 231,745 $ 156,699 Accounts receivable, net 126,708 89,518 Inventories 102,578 141,032 Prepaid expenses and other current assets 74,265 79,677 Total current assets 535,296 466,926 Property and equipment, net 44,366 43,744 Operating lease right-of-use assets, net 38,655 44,145 Goodwill 399,574 393,709 Intangible assets, net 6,541 10,613 Other assets 128,786 83,457 Total assets $ 1,153,218 $ 1,042,594 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 63,939 $ 51,423 Accrued compensation and benefits 62,895 42,064 Accrued warranty 9,684 10,942 Current portion of deferred revenue 325,078 306,114 Current portion of long-term debt, net of unamortized debt issuance costs of $729 and $674, respectively 14,271 9,326 Current portion, operating lease liabilities 11,456 10,547 Other accrued liabilities 100,552 87,172 Total current liabilities 587,875 517,588 Deferred revenue, less current portion 292,415 268,909 Long-term debt, less current portion, net of unamortized debt issuance costs of $1,276 and $1,735, respectively 163,724 178,265 Operating lease liabilities, less current portion 33,991 41,466 Deferred income taxes 7,033 7,978 Other long-term liabilities 2,596 3,106 Commitments and contingencies Stockholders' equity: Convertible preferred stock, $0.001 par value, issuable in series, 2,000 shares authorized; none issued — — Common stock, $0.001 par value, 750,000 shares authorized; 152,673 and 148,503 shares issued, respectively; 132,064 and 130,284 shares outstanding, respectively 153 149 Additional paid-in-capital 1,298,791 1,220,379 Accumulated other comprehensive loss (8,137 ) (15,483 ) Accumulated deficit (949,429 ) (941,962 ) Treasury stock at cost, 20,609 and 18,219 shares, respectively (275,794 ) (237,801 ) Total stockholders' equity 65,584 25,282 Total liabilities and stockholders' equity $ 1,153,218 $ 1,042,594 Expand EXTREME NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net revenues: Product $ 191,857 $ 152,721 $ 704,462 $ 699,257 Subscription and support 115,146 103,932 435,605 417,946 Total net revenues 307,003 256,653 1,140,067 1,117,203 Cost of revenues: Product 82,766 114,893 300,831 365,759 Subscription and support 35,149 27,136 130,109 120,613 Total cost of revenues 117,915 142,029 430,940 486,372 Gross profit: Product 109,091 37,828 403,631 333,498 Subscription and support 79,997 76,796 305,496 297,333 Total gross profit 189,088 114,624 709,127 630,831 Operating expenses: Research and development 56,469 46,565 221,459 211,931 Sales and marketing 86,440 81,020 327,563 345,802 General and administrative 47,419 25,468 139,621 99,938 Restructuring and related charges (benefits) (379 ) 10,009 1,492 36,321 Amortization of intangible assets 515 510 2,043 2,041 Total operating expenses 190,464 163,572 692,178 696,033 Operating income (loss) (1,376 ) (48,948 ) 16,949 (65,202 ) Interest income 1,656 661 4,313 4,556 Interest expense (3,530 ) (4,220 ) (15,928 ) (16,986 ) Other income (expense), net (616 ) (240 ) (1,061 ) 133 Income (loss) before income taxes (3,866 ) (52,747 ) 4,273 (77,499 ) Provision for income taxes 3,937 1,456 11,740 8,465 Net loss $ (7,803 ) $ (54,203 ) $ (7,467 ) $ (85,964 ) Basic and diluted loss per share: Net loss per share – diluted $ (0.06 ) $ (0.42 ) $ (0.06 ) $ (0.66 ) Expand Extreme Networks, Inc. Non-GAAP Measures of Financial Performance To supplement the Company's consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ('GAAP'), Extreme uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, net cash (debt) and free cash flow. Reconciliation to the nearest GAAP measure of all historical non-GAAP measures included in this press release can be found in the tables included with this press release. Non-GAAP measures presented in this press release are not in accordance with or alternative measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Extreme's results of operations as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate Extreme's results of operations in conjunction with the corresponding GAAP measures. Extreme believes these non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, enhance investors' and management's overall understanding of the Company's current financial performance and the Company's prospects for the future, including cash flows available to pursue opportunities to enhance stockholder value. In addition, because Extreme has historically reported certain non-GAAP results to investors, the Company believes the inclusion of non-GAAP measures provides consistency in the Company's financial reporting. For its internal planning process, and as discussed further below, Extreme's management uses financial statements that do not include share-based compensation expense, amortization of intangibles, restructuring and related charges, system transition costs, litigation charges, debt refinancing charges, and the tax effect of non-GAAP adjustments. Extreme's management also uses non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the Company's financial results. As described above, Extreme excludes the following items from one or more of its non-GAAP measures when applicable. Share-based compensation. Consists of associated expenses for stock options, restricted stock awards and the Company's Employee Stock Purchase Plan. Extreme excludes share-based compensation expenses from its non-GAAP measures primarily because they are non-cash expenses that the Company does not believe are reflective of ongoing cash requirement related to its operating results. Extreme expects to incur share-based compensation expenses in future periods. Amortization of intangibles. Amortization of intangibles includes the monthly amortization expense of intangible assets such as developed technology, customer relationships, trademarks and order backlog. The amortization of the developed technology and order backlog are recorded in cost of goods sold, while the amortization for the other intangibles is recorded in operating expenses. Extreme excludes these expenses since they result from an intangible asset and for which the period expense does not impact the operations of the business and are non-cash in nature. Restructuring and related charges. Restructuring and related charges consist of severance costs for employees, asset disposal costs and other charges related to excess facilities that do not provide economic benefit to our future operations. Extreme excludes restructuring expenses since they result from events that occur outside of the ordinary course of continuing operations. System transition costs. System transition costs consist of costs related to direct and incremental costs incurred in connection with our multi-phase transition of our customer relationship management solution and our configure, price, quote solution. Extreme excludes these costs because we believe that these costs do not reflect future operating expenses and will be inconsistent in amount and frequency, making it difficult to contribute to a meaningful evaluation of our operating performance. Litigation charges. Litigation charges consist of estimated settlement and related legal expenses for non-recurring litigations offset by any proceeds received or expected to be received from insurance. Debt refinancing charges. Debt refinancing charges consist of costs that were not capitalizable and are included in other income (expense), that occurred in conjunction with the amendments related to our outstanding credit facility. Tax effect of non-GAAP adjustments. We calculate our non-GAAP provision for income taxes in accordance with the SEC guidance on non-GAAP Financial Measures Compliance and Disclosure Interpretation. We have assumed our U.S. federal and state net operating losses would have been fully consumed by the historical non-GAAP financial adjustments, eliminating the need for a full valuation allowance against our U.S. deferred tax assets which, consequently, enables our use of research and development tax credits. The non-GAAP tax provision consists of current and deferred income tax expense commensurate with the non-GAAP measure of profitability using our blended U.S. statutory tax rate of 24.6%. The non-GAAP provision for income taxes has typically been and is currently higher than the GAAP provision given the Company has a valuation allowance against its US and a portion of its Irish deferred tax assets due to historical losses. Once these valuation allowances are released, the non-GAAP and the GAAP provision for income taxes will be more closely aligned. Over the next year, our cash taxes will be driven by US federal and state taxes and the tax expense of our foreign subsidiaries, which amounts have not historically been significant, with the exception of the Company's Canadian, German and Indian subsidiaries which perform research and development and sales and marketing activities for the Company, as well as the Company's Irish trading subsidiaries. Non-GAAP Gross Margin Three Months Ended Year Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Gross profit – GAAP $ 189,088 $ 114,624 $ 709,127 $ 630,831 Gross margin – GAAP percentage 61.6 % 44.7 % 62.2 % 56.5 % Adjustments: Share-based compensation expense, Product 700 547 2,661 1,899 Share-based compensation expense, Subscription and support 719 700 2,912 2,994 Amortization of intangibles, Product 625 594 2,400 2,930 Amortization of intangibles, Subscription and support — — — 272 Total adjustments to GAAP gross profit $ 2,044 $ 1,841 $ 7,973 $ 8,095 Gross profit – non-GAAP $ 191,132 $ 116,465 $ 717,100 $ 638,926 Gross margin – non-GAAP percentage 62.3 % 45.4 % 62.9 % 57.2 % Expand Non-GAAP Operating Margin Three Months Ended Year Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 GAAP operating income (loss) $ (1,376 ) $ (48,948 ) $ 16,949 $ (65,202 ) GAAP operating margin (0.4 )% (19.1 )% 1.5 % (5.8 )% Adjustments: Share-based compensation expense, cost of revenues 1,419 1,247 5,573 4,893 Share-based compensation expense, R&D 4,296 3,648 17,154 16,686 Share-based compensation expense, S&M 6,952 6,318 28,393 26,524 Share-based compensation expense, G&A 8,074 6,841 31,194 28,660 Restructuring and related (benefit) charges (379 ) 10,009 1,492 36,321 Litigation charges 22,006 5,127 34,722 10,545 System transition costs 4,631 2,816 21,550 5,262 Amortization of intangibles 1,140 1,104 4,443 5,243 Total adjustments to GAAP operating income (loss) $ 48,139 $ 37,110 $ 144,521 $ 134,134 Non-GAAP operating income (loss) $ 46,763 $ (11,838 ) $ 161,470 $ 68,932 Non-GAAP operating margin 15.2 % (4.6 )% 14.2 % 6.2 % Expand Non-GAAP Net Income (Loss) Three Months Ended Year Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 GAAP net loss $ (7,803 ) $ (54,203 ) $ (7,467 ) $ (85,964 ) Adjustments: Share-based compensation expense 20,741 18,054 82,314 76,763 Restructuring and related (benefit) charges (379 ) 10,009 1,492 36,321 Litigation charges 22,006 5,127 34,722 10,545 System transition costs 4,631 2,816 21,550 5,262 Amortization of intangibles 1,140 1,104 4,443 5,243 Debt refinancing charges, Other income (expense) — — 79 — Tax effect of non-GAAP adjustments (6,843 ) 7,230 (24,709 ) (4,815 ) Total adjustments to GAAP net loss $ 41,296 $ 44,340 $ 119,891 $ 129,319 Non-GAAP net income (loss) $ 33,493 $ (9,863 ) $ 112,424 $ 43,355 Earnings (loss) per share GAAP net loss per share – diluted $ (0.06 ) $ (0.42 ) $ (0.06 ) $ (0.66 ) Non-GAAP net income (loss) per share – diluted $ 0.25 $ (0.08 ) $ 0.84 $ 0.33 Shares used in net income (loss) per share – diluted: GAAP shares used in per share calculation – basic 132,808 130,093 132,331 129,288 Potentially dilutive equity awards 1,492 0 1,676 2,816 GAAP and Non-GAAP shares used in per share calculation – diluted 134,300 130,093 134,007 132,104 Expand
Associated Press
06-08-2025
- Business
- Associated Press
Extreme Networks Reports Fourth Quarter and Fiscal Year 2025 Financial Results
MORRISVILLE, N.C.--(BUSINESS WIRE)--Aug 6, 2025-- Extreme Networks, Inc. ('Extreme') (Nasdaq: EXTR) today released financial results for its fourth quarter and fiscal year ended June 30, 2025. Q4 revenue grew 20 percent year-over-year and SaaS ARR by 24 percent, year-over-year. 'We closed the fourth quarter with significant momentum, driven by sharp execution and growing demand for our solutions and services,' said Ed Meyercord, President and CEO of Extreme. 'Five consecutive quarters of revenue growth and ARR jumping 24 percent year-over-year are clear indicators that our subscription model is gaining traction. Increased customer engagement in EMEA and APAC underscores our global momentum, highlighted by sizeable wins this quarter.' Meyercord continued, 'I'm proud of our team for putting Extreme at the forefront of AI innovation in networking. Platform ONE is the first generally available AI for networking platform that provides a fundamentally advanced customer experience achieved through a mix of conversational and agentic AI capabilities. With Extreme Platform ONE we're intent to redefine enterprise networking with end-to-end visibility, AI-powered automation, and the industry's most intuitive and simplified licensing model. We are well-positioned to accelerate growth, gain market share, and lead this next wave of AI-driven innovation.' Kevin Rhodes, Executive Vice President and Chief Financial Officer stated, 'Fourth quarter results were driven by continuous sequential growth in revenue and prudent expense management leading to a strong cash flow quarter. Heading into the new fiscal year, our outlook is for a re-acceleration of overall revenue growth on a full-year basis, which we expect to translate to higher earnings and cash flow.' Fiscal Fourth Quarter Results: Fiscal Year 2025 Results: Liquidity: Recent Key Highlights: Extreme uses the non-GAAP free cash flow metric as a measure of operating performance. Free cash flow represents GAAP net cash provided by (used in) operating activities, less purchases of property, equipment and capitalized software development costs. Extreme considers free cash flow to be useful information for management and investors regarding the amount of cash generated by the business after the purchases of property, equipment and capitalized software development costs, which can then be used to, among other things, invest in Extreme's business, make strategic acquisitions, and strengthen the balance sheet. A limitation of the utility of this non-GAAP free cash flow metric as a measure of financial performance is that it does not represent the total increase or decrease in the Company's cash balance for the period. The following table shows non-GAAP free cash flow calculation (in millions): SaaS ARR: Extreme uses SaaS annual recurring revenue ('SaaS ARR') to identify the annual recurring revenue of ExtremeCloud IQ and other subscription revenue, based on the annualized value of quarterly subscription revenue and term-based licenses. We believe that SaaS ARR is an important metric because it is driven by our ability to acquire new customers and to maintain and expand our relationships with existing customers. SaaS ARR should be viewed independently of revenue or deferred revenue that are accounted for under U.S. GAAP. SaaS ARR does not have a standardized meaning and therefore may not be comparable to similarly titled measures presented by other companies. SaaS ARR is not intended to be a replacement for forecasts of revenue. Gross debt: Gross debt is defined as long-term debt and the current portion of long-term debt as shown on the balance sheet plus unamortized debt issuance costs, if any. Net cash (debt): is defined as cash and cash equivalents minus gross debt, as shown in the table below (in millions): Business Outlook: Extreme's business outlook is based on current expectations. The following statements are forward-looking, and actual results could differ materially based on various factors, including market conditions and the factors set forth under 'Forward-Looking Statements' below. For its first quarter fiscal 2026, ending September 30, 2025, the Company is targeting: The following table shows the GAAP to non-GAAP reconciliation for Q1 FY'26 guidance: For the full year fiscal 2026, ending June 30, 2026, the Company is targeting (in millions): Conference Call: Extreme will host a conference call at 8:00 a.m. Eastern (5:00 a.m. Pacific) today to review the fourth quarter and fiscal year 2025 results as well as the business outlook for the first quarter of fiscal 2026 ending September 30, 2025, including significant factors and assumptions underlying the targets noted above. The conference call will be available to the public through a live audio web broadcast via the internet at and a replay of the call will be available on the website for at least 7 days following the call. To access the call, please go to this link ( Registration Link) and you will be provided with dial in details. If you would like to participate in the Q&A, please register here: Q&A Registration Link. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. About Extreme: Extreme Networks, Inc. ( EXTR ) is a leader in AI-driven cloud networking, focused on delivering simple and secure solutions that help businesses address challenges and enable connections among devices, applications, and users. We push the boundaries of technology, leveraging the powers of artificial intelligence, analytics, and automation. Tens of thousands of customers globally trust our AI-driven cloud networking solutions and industry-leading support to enable businesses to drive value, foster innovation, and overcome extreme challenges. For more information, visit Extreme's website at or LinkedIn, YouTube, X (Formerly Twitter), Facebook or Instagram Extreme Networks, ExtremeCloud, Extreme Platform ONE, and the Extreme Networks logo, are trademarks of Extreme Networks, Inc. or its subsidiaries in the United States and/or other countries. Other trademarks shown herein are the property of their respective owners. Non-GAAP Financial Measures: Extreme provides all financial information required in accordance with U.S. generally accepted accounting principles ('GAAP'). The Company is providing with this press release non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, net cash (debt) and free cash flow. In preparing non-GAAP information, the Company has excluded, where applicable, the impact of share-based compensation, amortization of intangibles, restructuring and related charges, system transition costs, litigation charges, debt refinancing charges and the tax effect of non-GAAP adjustments. The Company believes that excluding these items provides both management and investors with additional insight into its current operations, the trends affecting the Company, the Company's marketplace performance, and the Company's ability to generate cash from operations. Please note the Company's non-GAAP measures may be different than those used by other companies. The additional non-GAAP financial information the Company presents should be considered in conjunction with, and not as a substitute for, the Company's GAAP financial information. The Company has provided a non-GAAP reconciliation of the results for the periods presented in this release, which are adjusted to exclude certain items as indicated. These measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures for comparable financial information and understanding of the Company's ongoing performance as a business. Extreme uses both GAAP and non-GAAP measures to evaluate and manage its operations. Forward-Looking Statements: Statements in this press release, including statements regarding those concerning (i) the Company's business outlook and future operating metrics, and financial and operating results, (ii) global demand, (iii), adoption of the Company's highly technical solutions, and (iv) the Company's ability to benefit from the industry disruption from larger players in the enterprise market are forward-looking statements within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements speak only as of the date of this release. There are several important factors that could cause actual results and other future events to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, risks related to global macroeconomic and business trends; the Company's failure to achieve targeted financial metrics; a highly competitive business environment for network switching equipment and cloud management of network devices; the Company's effectiveness in controlling expenses; the possibility that the Company might experience delays in the development or introduction of new technology and products; customer response to the Company's new technology and products; risks related to pending or future litigation; political and geopolitical factors, including the possible impact of tariffs and changes to U.S. tax regulations; and a dependency on third parties for certain components and for the manufacturing of the Company's products. For more information about factors that could cause actual results and other future events to differ materially from those suggested or indicated by such forward-looking statements, see 'Management's Discussion and Analysis of Financial Condition and Results of Operations' and 'Risk Factors' included in the Company's Annual Report on Form 10-K for the year ended June 30, 2024, Quarterly Reports on Form 10-Q for the quarters ended September 30, 2024, December 31, 2024 and March 31, 2025 and other documents of the Company on file with the Securities and Exchange Commission (available at ). As a result of these risks and others, actual results could vary significantly from those anticipated in this press release, and the Company's financial condition and results of operations could be materially adversely affected. Except as required under the U.S. federal securities laws and the rules and regulations of the Securities and Exchange Commission, Extreme disclaims any obligation to update any forward-looking statements after the date of this release, whether as a result of new information, future events, developments, changes in assumptions or otherwise. To supplement the Company's consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ('GAAP'), Extreme uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, net cash (debt) and free cash flow. Reconciliation to the nearest GAAP measure of all historical non-GAAP measures included in this press release can be found in the tables included with this press release. Non-GAAP measures presented in this press release are not in accordance with or alternative measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Extreme's results of operations as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate Extreme's results of operations in conjunction with the corresponding GAAP measures. Extreme believes these non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, enhance investors' and management's overall understanding of the Company's current financial performance and the Company's prospects for the future, including cash flows available to pursue opportunities to enhance stockholder value. In addition, because Extreme has historically reported certain non-GAAP results to investors, the Company believes the inclusion of non-GAAP measures provides consistency in the Company's financial reporting. For its internal planning process, and as discussed further below, Extreme's management uses financial statements that do not include share-based compensation expense, amortization of intangibles, restructuring and related charges, system transition costs, litigation charges, debt refinancing charges, and the tax effect of non-GAAP adjustments. Extreme's management also uses non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the Company's financial results. As described above, Extreme excludes the following items from one or more of its non-GAAP measures when applicable. Share-based compensation. Consists of associated expenses for stock options, restricted stock awards and the Company's Employee Stock Purchase Plan. Extreme excludes share-based compensation expenses from its non-GAAP measures primarily because they are non-cash expenses that the Company does not believe are reflective of ongoing cash requirement related to its operating results. Extreme expects to incur share-based compensation expenses in future periods. Amortization of intangibles. Amortization of intangibles includes the monthly amortization expense of intangible assets such as developed technology, customer relationships, trademarks and order backlog. The amortization of the developed technology and order backlog are recorded in cost of goods sold, while the amortization for the other intangibles is recorded in operating expenses. Extreme excludes these expenses since they result from an intangible asset and for which the period expense does not impact the operations of the business and are non-cash in nature. Restructuring and related charges. Restructuring and related charges consist of severance costs for employees, asset disposal costs and other charges related to excess facilities that do not provide economic benefit to our future operations. Extreme excludes restructuring expenses since they result from events that occur outside of the ordinary course of continuing operations. System transition costs. System transition costs consist of costs related to direct and incremental costs incurred in connection with our multi-phase transition of our customer relationship management solution and our configure, price, quote solution. Extreme excludes these costs because we believe that these costs do not reflect future operating expenses and will be inconsistent in amount and frequency, making it difficult to contribute to a meaningful evaluation of our operating performance. Litigation charges. Litigation charges consist of estimated settlement and related legal expenses for non-recurring litigations offset by any proceeds received or expected to be received from insurance. Debt refinancing charges. Debt refinancing charges consist of costs that were not capitalizable and are included in other income (expense), that occurred in conjunction with the amendments related to our outstanding credit facility. Tax effect of non-GAAP adjustments. We calculate our non-GAAP provision for income taxes in accordance with the SEC guidance on non-GAAP Financial Measures Compliance and Disclosure Interpretation. We have assumed our U.S. federal and state net operating losses would have been fully consumed by the historical non-GAAP financial adjustments, eliminating the need for a full valuation allowance against our U.S. deferred tax assets which, consequently, enables our use of research and development tax credits. The non-GAAP tax provision consists of current and deferred income tax expense commensurate with the non-GAAP measure of profitability using our blended U.S. statutory tax rate of 24.6%. The non-GAAP provision for income taxes has typically been and is currently higher than the GAAP provision given the Company has a valuation allowance against its US and a portion of its Irish deferred tax assets due to historical losses. Once these valuation allowances are released, the non-GAAP and the GAAP provision for income taxes will be more closely aligned. Over the next year, our cash taxes will be driven by US federal and state taxes and the tax expense of our foreign subsidiaries, which amounts have not historically been significant, with the exception of the Company's Canadian, German and Indian subsidiaries which perform research and development and sales and marketing activities for the Company, as well as the Company's Irish trading subsidiaries. View source version on CONTACT: Investor Relations Stan Kovler 919/595-4196 [email protected] Contact Amy Aylward 603/952-5138 [email protected] KEYWORD: UNITED STATES NORTH AMERICA NORTH CAROLINA INDUSTRY KEYWORD: MOBILE/WIRELESS TECHNOLOGY CARRIERS AND SERVICES TELECOMMUNICATIONS SOFTWARE NETWORKS INTERNET HARDWARE DATA MANAGEMENT ARTIFICIAL INTELLIGENCE SOURCE: Extreme Networks, Inc. Copyright Business Wire 2025. PUB: 08/06/2025 07:05 AM/DISC: 08/06/2025 07:04 AM
Business Wire
01-08-2025
- Business
- Business Wire
Extreme Networks Schedules Investor Day for November 10th and Announces Investor Conference Participation for August and September 2025
MORRISVILLE, N.C.--(BUSINESS WIRE)-- Extreme Networks, Inc. (Nasdaq: EXTR), a leader in AI-powered automation for networking, today announced that its next Investor Day will take place on Monday, November 10, 2025. The company also announced its investor conference schedule for August and September 2025: Oppenheimer 28th Annual Technology, Internet, & Communications Conference Stan Kovler, SVP, Finance and Corporate Development Virtual Monday, August 11, 2025 11:35 a.m. ET Fireside chat and conducting meetings throughout the day Stifel 4th Annual Technology Executive Summit Kevin Rhodes, EVP and CFO Deer Valley, UT Tuesday, August 26, 2025 Conducting meetings throughout the day Evercore Semiconductor, IT Hardware, & Networking Conference Stan Kovler, SVP, Finance and Corporate Development Chicago, IL Tuesday, August 26, 2025 Conducting meetings throughout the day Jefferies Semis, IT Hardware & Comm Tech Summit Stan Kovler, SVP, Finance and Corporate Development Chicago, IL Wednesday, August 27, 2025 Conducting meetings throughout the day Deutsche Bank Technology Conference Kevin Rhodes, EVP and CFO Dana Point, CA Wednesday, August 27, 2025 Conducting meetings throughout the day B. Riley 8th Annual Consumer & TMT Conference Stan Kovler, SVP, Finance and Corporate Development New York, NY Wednesday, September 10, 2025 Conducting meetings throughout the day Piper Sandler 4th Annual Growth Frontiers Conference Stan Kovler, SVP, Finance and Corporate Development Nashville, TN Thursday, September 11, 2025 Conducting meetings throughout the day Extreme Networks Investor Day Extreme Networks Executive Team Nasdaq MarketSite in New York City and Virtual Monday, November 10, 2025 12:00 p.m. ET Presentation and conducting meetings throughout the day A live webcast from each conference presentation will be accessible under Events & Presentations on the Investor Relations section of the Extreme Networks website at and will be archived for at least 30 days following the live presentation. About Extreme Networks: Extreme Networks, Inc. (EXTR) is a leader in AI-powered cloud networking, focused on delivering simple and secure solutions that help businesses address challenges and enable connections among devices, applications, and users. We push the boundaries of technology, leveraging the powers of artificial intelligence, analytics, and automation. Tens of thousands of customers globally trust our AI-powered cloud networking solutions and industry-leading support to enable businesses to drive value, foster innovation, and overcome extreme challenges. For more information, visit Extreme's website at or follow us on LinkedIn, YouTube, X, Facebook, or Instagram. Extreme Networks and the Extreme Networks logo are trademarks or registered trademarks of Extreme Networks, Inc. in the United States and other countries.
Yahoo
21-07-2025
- Business
- Yahoo
3 Stocks That May Be Trading Below Their Estimated Value In July 2025
In a market environment where major indices like the S&P 500 and Nasdaq are reaching new highs, investors are closely monitoring earnings reports and economic data for signs of continued growth amidst trade uncertainties. Identifying undervalued stocks in such a buoyant market can provide opportunities for those looking to capitalize on discrepancies between current prices and intrinsic values. Top 10 Undervalued Stocks Based On Cash Flows In The United States Name Current Price Fair Value (Est) Discount (Est) Royal Gold (RGLD) $154.76 $298.88 48.2% Robert Half (RHI) $41.86 $82.60 49.3% Repligen (RGEN) $116.25 $224.90 48.3% Rapid7 (RPD) $22.31 $43.54 48.8% e.l.f. Beauty (ELF) $117.63 $229.71 48.8% Carter Bankshares (CARE) $18.17 $35.50 48.8% Camden National (CAC) $42.27 $83.80 49.6% Atlantic Union Bankshares (AUB) $33.22 $65.45 49.2% ACNB (ACNB) $43.03 $85.02 49.4% Acadia Realty Trust (AKR) $18.55 $36.68 49.4% Click here to see the full list of 173 stocks from our Undervalued US Stocks Based On Cash Flows screener. Let's dive into some prime choices out of the screener. Extreme Networks Overview: Extreme Networks, Inc. provides software-driven networking solutions worldwide and has a market cap of approximately $2.33 billion. Operations: The company's revenue is primarily derived from the development and marketing of network infrastructure equipment and related software, totaling approximately $1.09 billion. Estimated Discount To Fair Value: 29.3% Extreme Networks is trading at US$17.52, significantly below its estimated fair value of US$24.8, suggesting it may be undervalued based on cash flows. Forecasted earnings growth of over 100% annually and a high future return on equity highlight strong potential profitability. Despite slower revenue growth compared to the market, recent product innovations like Extreme Platform ONE enhance operational efficiency and network management capabilities, potentially driving future financial performance amidst index exclusions and completed share buybacks. The growth report we've compiled suggests that Extreme Networks' future prospects could be on the up. Take a closer look at Extreme Networks' balance sheet health here in our report. Somnigroup International Overview: Somnigroup International Inc., along with its subsidiaries, is involved in the design, manufacture, distribution, and retail of bedding products both in the United States and internationally, with a market cap of $15.29 billion. Operations: Somnigroup International Inc. generates its revenue through the design, manufacture, distribution, and retail of bedding products across domestic and international markets. Estimated Discount To Fair Value: 15.7% Somnigroup International, trading at US$73.32, is below its estimated fair value of US$86.95, reflecting potential undervaluation based on cash flows. Forecasted earnings growth of 24% annually surpasses the broader U.S. market's growth expectations. However, recent shareholder dilution and debt refinancing highlight financial restructuring efforts; a repriced $1.6 billion term loan aims for annualized cash interest savings of up to $9 million if leverage targets are met, enhancing future cash flow potential amidst slower revenue expansion than desired. Our growth report here indicates Somnigroup International may be poised for an improving outlook. Click here to discover the nuances of Somnigroup International with our detailed financial health report. Similarweb Overview: Similarweb Ltd. offers digital data and analytics services to support essential business decisions across various regions, including the United States, Europe, the Asia Pacific, the United Kingdom, Israel, and internationally; it has a market cap of approximately $715.92 million. Operations: The company's revenue primarily comes from its On Line Financial Information Providers segment, generating $258.02 million. Estimated Discount To Fair Value: 45.7% Similarweb, trading at US$8.57, is valued below its estimated fair value of US$15.79, suggesting it might be undervalued based on cash flows. The company anticipates revenue growth of 14.2% annually and aims to achieve profitability within three years, surpassing average market expectations. Recent product innovations, like the launch of AI Agents for SEO and sales optimization, could enhance its competitive edge and drive future cash flow improvements despite current net losses. According our earnings growth report, there's an indication that Similarweb might be ready to expand. Dive into the specifics of Similarweb here with our thorough financial health report. Make It Happen Embark on your investment journey to our 173 Undervalued US Stocks Based On Cash Flows selection here. Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks. Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor. Contemplating Other Strategies? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EXTR SGI and SMWB. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
