Calix (CALX) investor relations material

Executive summary

• Q2 2026 marked the first full quarter of the AI-native Calix One platform, driving record software and services revenue and rapid customer adoption across all segments, including late majority adopters.

• Revenue for Q2 2026 increased 21% year-over-year to $293.3 million, driven by strong adoption of platform, cloud, and managed services, and robust expansion within the existing customer base.

• Net income for Q2 2026 was $17.1 million, a significant improvement from a net loss of $0.2 million in Q2 2025.

• The company emphasized its ability to deliver predictable, secure, and trusted AI solutions, addressing industry concerns about AI cost unpredictability.

• Over 1,200 customers now leverage the Calix One platform, reflecting broad adoption.

Financial highlights

• Q2 2026 revenue: $293.3 million, up 21% year-over-year and 5% sequentially, exceeding guidance.

• Software and service revenue reached a record $50 million, up 7% sequentially and 16% year-over-year.

• Non-GAAP net income was $31 million, or $0.47 per diluted share, above guidance; GAAP net income was $17.1 million.

• Record RPOs of $386 million, up 3% sequentially and 11% year-over-year; current RPOs at $162 million, up 21% year-over-year.

• Cash and investments totaled $194 million after $69 million in share repurchases.

Outlook and guidance

• Q3 2026 revenue expected between $301 million and $307 million, up 4% at midpoint over Q2.

• Annual revenue growth for 2026 projected at the higher end of the 15%-20% range.

• Q3 non-GAAP gross margin guidance is 52% at midpoint, reflecting continued memory cost pressures.

• Management expects continued investment in sales, marketing, and R&D in absolute dollars, but these are projected to decline as a percentage of revenue.

• Appliance gross margin expected to bottom in Q3 2026, with surcharges designed to be gross profit neutral over time.