Calix (CALX) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 revenue of $265.4 million, marking the fifth consecutive quarter of sequential growth and a 32% year-over-year increase, with broad-based growth across all customer segments.

• Net income for Q3 2025 was $15.7 million, reversing a net loss of $4.0 million in Q3 2024; nine-month net income was $10.7 million versus a loss of $11.8 million a year ago.

• Non-GAAP gross margin reached a record 57.7%, the seventh straight quarter of margin improvement, up from 54.8% in Q3 2024.

• Free cash flow was $27 million for Q3, marking the tenth consecutive quarter of eight-figure free cash flow.

• Added 20 new customers, with no single customer accounting for more than 10% of revenue.

Financial highlights

• Q3 2025 revenue: $265.4 million (up 32% year-over-year); nine-month revenue: $727.6 million (up 16%).

• Q3 2025 net income: $15.7 million; nine-month net income: $10.7 million.

• Gross margin improved to 57.7% (non-GAAP), up 90 basis points sequentially and from 54.8% in Q3 2024.

• Cash, cash equivalents, and marketable securities totaled $340 million at quarter end.

• Diluted EPS for Q3 2025: $0.22; nine-month diluted EPS: $0.15.

Outlook and guidance

• Q4 2025 revenue guidance is $267–$273 million, a 2% sequential increase at the midpoint.

• Fiscal 2025 revenue expected to grow 20% over 2024.

• Non-GAAP gross margin for Q4 expected to slightly increase; full-year margin improvement will exceed the high end of the 100–200 basis point target.

• OpEx will rise sequentially due to investments in AI and Connections, but will return to target model by end of 2026.

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