Calix (CALX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $220.2M, down 3% year-over-year, with strong performance in experience-based broadband and expansion into new segments like multi-dwelling units and small business solutions.

• Net loss for Q1 2025 was $4.8M, compared to net income of $0.1M in Q1 2024, driven by higher operating expenses and income tax expense.

• The business model focuses on enabling broadband providers to differentiate through customer experience, driving demand and reducing churn.

• Demand for broadband remains robust and inelastic, with ongoing growth expected through 2025.

• Announced unaudited financial results for Q1 2025, with details available in a letter to stockholders and a scheduled conference call.

Financial highlights

• Q1 2025 revenue reached $220.2 million, up 7% sequentially but down 3% year-over-year, driven by strong platform, cloud, and managed services demand, and a large customer pull forward.

• Record non-GAAP gross margin of 56.2% achieved, with customer mix and new subscriber wins contributing; GAAP gross margin improved to 55.7% from 54.2% year-over-year.

• RPOs grew 4% sequentially to $340 million and 39% year-over-year; current RPOs at $128 million, up 6% sequentially and 30% year-over-year.

• Double-digit free cash flow generated for the eighth consecutive quarter; cash and investments at $282.3 million after $40 million in share repurchases.

• DSO improved to 30 days, down 6 days sequentially and 10 days year-over-year; inventory turns at 3.6.

Outlook and guidance

• Q2 2025 revenue guidance is $221–$227 million, implying a 2% sequential increase at the midpoint.

• Non-GAAP gross margin expected to slightly increase in Q2; annual gross margin improvement targeted at 100–200 basis points.

• 2025 operating expenses to remain flat or slightly up in absolute dollars, declining as a percentage of revenue; sales and marketing and R&D investments to increase slightly in absolute dollars.

• Sequential revenue growth expected each quarter, including the back half of 2025.

• Sufficient liquidity is anticipated for at least the next twelve months based on current operating plans.