Calix (CALX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $220.2 million, up 7% sequentially but down 3% year-over-year, driven by strong demand for platform, cloud, and managed services, with U.S. revenue stable and international revenue declining.

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

• Gross margin improved to a record 56.2%, reflecting a greater mix of platform, cloud, and managed services.

• The business model focuses on enabling broadband experience providers to differentiate and grow, with expansion into new segments like multi-dwelling units (MDU).

• Unaudited financial results for Q1 2025 were released, with a conference call scheduled to discuss details and outlook.

Financial highlights

• Q1 revenue reached $220.2 million, a 7% sequential increase but a $6.1 million year-over-year decrease; large customer segment revenue grew 34% while small and medium segments declined.

• Record non-GAAP gross margin of 56.2% achieved, with gross profit at $122.7 million, nearly flat year-over-year.

• Operating loss was $6.1 million, compared to a $2.0 million loss in Q1 2024; diluted EPS was $(0.07).

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

• Net cash provided by operating activities was $17.2 million, with cash and investments totaling $282.3 million after $40 million in share repurchases.

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 increase slightly in Q2; annual gross margin improvement targeted at 100–200 basis points.

• Operating expenses and R&D investments to remain flat or slightly up in absolute dollars, declining as a percentage of revenue.

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

• Low double-digit annual growth rate expected for next year, excluding BEAD program impact.