Extreme Networks Q4 2025 slides: Revenue hits $307M as SaaS ARR grows 24%

Extreme Networks (NASDAQ:EXTR) released its fourth quarter and full fiscal year 2025 financial results on August 6, showing continued revenue growth and significant improvements in cash flow generation. The networking solutions provider reported its fifth consecutive quarter of revenue growth, with Q4 revenue reaching $307 million and full-year revenue totaling $1.14 billion.

Quarterly Performance Highlights

Extreme Networks delivered strong fourth-quarter results with revenue of $307 million, representing sequential growth led by increased business in APAC and EMEA regions. The company reported Non-GAAP earnings per share of $0.25, up from $0.21 in the previous quarter. Recurring revenue reached $109 million, increasing 8% both sequentially and year-over-year.

As shown in the following summary of Q4 2025 results:

Free cash flow showed remarkable improvement, reaching $75.3 million in Q4, a significant increase from $24.2 million in Q3. This cash generation helped strengthen the company’s balance sheet, with cash position growing to $232 million and net cash improving to $52 million. During the quarter, Extreme Networks also repurchased 1.5 million shares for $25 million.

The following chart illustrates the company’s free cash flow trend:

Full-Year Financial Results

For the full fiscal year 2025, Extreme Networks achieved total revenue of $1.14 billion with a Non-GAAP gross profit of $717 million. The company reported Non-GAAP EPS of $0.84 and Non-GAAP EBITDA of $175 million. These results demonstrate the company’s ability to maintain profitability while investing in growth initiatives.

The following slide highlights key financial achievements for FY25:

Geographically, the Americas region contributed 52% of FY25 revenue ($597 million), while EMEA accounted for 40% ($452 million) and APAC represented 8% ($92 million). This distribution shows Extreme Networks’ global reach and potential for further expansion in the Asia-Pacific region.

The geographic revenue breakdown is illustrated here:

From an industry perspective, Government and Education sectors represented approximately 40% of the company’s bookings, followed by Manufacturing, Healthcare, Hospitality & Venues, and Retail & Transportation at approximately 10% each. Service Providers contributed about 5% of bookings.

Recurring Revenue and SaaS Growth

A key highlight of Extreme Networks’ performance is the continued growth in its Software-as-a-Service (SaaS) Annual Recurring Revenue (ARR), which reached $208 million in Q4, representing a 24% year-over-year increase. This growth underscores the company’s successful transition toward a more predictable, subscription-based business model.

The following chart shows the consistent growth in SaaS ARR over the past two years:

Total (EPA:TTEF) deferred recurring revenue reached $606 million, up 9% year-over-year, providing visibility into future revenue streams. Recurring revenue represented 36% of total revenue in FY25, highlighting the company’s progress in building a stable revenue foundation.

Cash Flow and Balance Sheet Improvements

Extreme Networks significantly strengthened its financial position during FY25. The company ended the year with $231.7 million in cash and cash equivalents, up from $156.7 million at the end of FY24. More importantly, Extreme Networks shifted from a net debt position of $33.3 million in Q4 2024 to a net cash position of $51.7 million in Q4 2025.

The balance sheet improvements are detailed in the following table:

For the full year, Extreme Networks generated $152 million in operating cash flow and $127.3 million in free cash flow, compared to $55.5 million and $37.4 million respectively in FY24. This substantial improvement in cash generation provides the company with greater financial flexibility for investments, debt reduction, and shareholder returns.

Forward-Looking Guidance

Looking ahead to the first quarter of fiscal 2026, Extreme Networks expects revenue between $292 million and $300 million, with Non-GAAP gross margin between 61.9% and 62.3%. The company projects Non-GAAP EPS between $0.20 and $0.23 for Q1.

The detailed Q1 2026 guidance is presented here:

For the full fiscal year 2026, Extreme Networks forecasts revenue between $1,228 million and $1,238 million, representing year-over-year growth of approximately 7.7% to 8.6%.

As shown in the following FY26 guidance slide:

The guidance suggests continued confidence in the company’s growth trajectory, supported by its expanding SaaS business and strong position in key vertical markets like Government, Education, and Manufacturing.

This positive outlook aligns with the company’s performance in the previous quarter, where Extreme Networks exceeded expectations with Q3 2025 revenue of $284.5 million and EPS of $0.21, as reported in its earnings announcement. The stock has responded favorably to the company’s consistent execution, with shares rising 14.04% to $20.15 following the results announcement.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.