PRISM VIEW - Inside the Quarter: Extreme Networks (Nasdaq: EXTR)

Extreme Delivers a 35% Revenue Jump as Demand Surges and AI Strategy Gains Traction

Company Snapshot

Extreme Networks (Nasdaq: EXTR) builds cloud-based networking infrastructure for enterprise, government, education, and industrial customers. Its AI-powered platform, fabric architecture, and growing presence in managed services make it a rising contender in enterprise IT.

Quick Take

Extreme reported its fourth consecutive quarter of sequential growth, generating $285 million in revenue for Q3 FY2025, a 35 percent increase year-over-year. Growth was supported by steady demand in enterprise networking, customer wins against legacy competitors, and continued interest in its Platform ONE AI suite.

The company also rewarded shareholders with a $13 million buyback and exited the quarter with a healthy $185.5 million in cash.

By the Numbers

• Product Revenue: $178.1M (well ahead of FactSet's $169.1M)
• Non-GAAP EPS: $0.21 (flat Q/Q, but sharply up Y/Y)
• Free Cash Flow: $24.2M (beat vs. $23.7M consensus)
• SaaS ARR: $184M, up 13.4% Y/Y
• GAAP EPS: $0.03 (vs. $(0.50) last year)
• Share Repurchases: $13M (853K shares)

What Management's Saying

On the earnings call, Extreme's C-suite made it clear. Enterprise demand is accelerating, and they're winning bigger deals, often at the expense of rivals like Cisco, Juniper, and HP.

Highlights from the call:

• Best bookings quarter in six periods, with 40 customers generating $1M or more in bookings
• Early adoption of Platform ONE is building, with 100 customers already signed up
• Modest tariff exposure ($1.5M impact in Q4), with plans in place to absorb it if needed
• Strong traction across government, manufacturing, education, and logistics sectors

Outlook

Guidance for Q4 is upbeat, with projected revenue of $295M to $305M and non-GAAP EPS of $0.21 to $0.25. Full-year revenue is tracking toward $1.13B to $1.14B, a strong close to a year that's been all about platform expansion and playing offense in a competitive market.

Extreme Networks is featured in the PRISM AI Datacenter and Infrastructure Index

The post PRISM VIEW - Inside the Quarter: Extreme Networks (Nasdaq: EXTR) appeared first on PRISM MarketView.

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