Extreme Networks (EXTR) investor relations material

Strategic direction and technology innovation

• Focus on platformization with Platform ONE, integrating networking, AI, and security for seamless customer experience, rapid service delivery, and operational efficiency.

• Differentiation through Fabric technology, mission-critical Wi-Fi, and unique cloud flexibility (public, private, sovereign), enabling wins in complex, distributed, and regulated environments.

• AI is central to both product and internal operations, with unified data architecture and model-agnostic approach creating a defensible AI moat and driving productivity gains.

• Platform ONE adoption is strong, with early customers seeing significant capacity gains, productivity improvements, and preference for AI-driven workflows.

• Ongoing investment in R&D and organizational alignment supports rapid innovation, first-mover advantage, and operational leverage in platform-based networking.

Market positioning and competitive landscape

• Outpacing industry growth as a top-three cloud networking player, targeting double-digit product and revenue growth, and 20%+ earnings growth over the next five years.

• Benefiting from industry disruption, including competitor consolidation and partner changes, to attract talent, partners, and customers.

• Winning larger, global customers in government, healthcare, retail, and education, with success in regulated and complex environments.

• Strategic focus on quality over quantity in channel partnerships, targeting high-impact partners and expanding programs to win large accounts.

• Recognized as a leader in the IDC MarketScape for enterprise wireless LAN, driven by AI-powered automation and expertise in high-density environments.

Financial outlook and business model evolution

• Six consecutive quarters of growth, 15% YoY growth in the last quarter, and ARR growing at a faster rate.

• Recurring revenue projected to rise from 36% of total revenue in FY25 to 41% in FY29, with subscription and support revenue expected to exceed 80% of recurring revenue by FY29.

• New commercial models (MSP, ESPO, metered billing, OPEX-based offerings) now account for 14% of subscription bookings, expected to increase and drive SaaS ARR to $650M in four years.

• Gross margins expected to return to 64%-66% range, with operating margins targeted at 22%-24%, and free cash flow and EBITDA margins forecast to improve.

• Guidance updated: double-digit revenue growth, 20%+ annual earnings growth, minimum $0.99-$1.02 EPS for the year, and double-digit overall revenue CAGR targeted through FY29.