Calix (CALX) Q2 2025 earnings summary

Executive summary

• Achieved strong second quarter results with 22% year-over-year revenue growth to $241.9 million and 10% sequential growth, reflecting successful execution of long-term strategy and investments in platform, cloud, and managed services.

• Gross profit rose 27% year-over-year to $136.3 million, with gross margin improving by 200 basis points to 56.3% due to a higher mix of platform, cloud, and managed services.

• Net loss narrowed significantly to $0.2 million for the quarter, compared to a net loss of $8.0 million in Q2 2024.

• Continued transformation from a network systems company to a platform and AI-as-a-service provider, with significant progress on the third-generation platform and AI integration (AgenTeq AI).

• Demand environment remains broad-based across all customer segments and geographies, with notable new large customer wins and expansion into new markets.

Financial highlights

• Q2 2025 revenue reached $241.9 million, up 22% year-over-year and 10% sequentially; record RPOs at $347 million, up 2% sequentially and 30% year-over-year.

• Q2 2025 gross margin: 56.3% (up 200 bps year-over-year); non-GAAP gross margin hit a record 56.8%, up 60 bps sequentially.

• Q2 2025 net loss: $0.2 million; diluted EPS: $(0.00) vs. $(0.12) in Q2 2024.

• Added 18 new BSP customers, mostly competitive takeaways; record free cash flow of $36 million, ninth consecutive quarter of eight-digit free cash flow.

• Ended the quarter with $299 million in cash and investments after $33 million in share repurchases.

Outlook and guidance

• Q3 2025 revenue guidance of $243 million–$249 million, representing a 2% sequential increase at the midpoint.

• Non-GAAP gross margin expected to slightly increase in Q3; annual gross margin improvement for 2025 anticipated at the higher end of the 100–200 bps target.

• Operating expenses to remain constrained, with slight increases in sales and marketing; as a percentage of revenue, OpEx will decline.

• Double-digit top-line growth expected for 2026, with improving margins and cash flow.

• Existing cash and marketable securities are expected to be sufficient to meet anticipated needs for at least the next twelve months.