Extreme Networks (EXTR) Q2 2026 earnings summary

Executive summary

• Achieved seventh consecutive quarter of revenue growth, with Q2 revenue of $318 million, up 14% year-over-year, and strong SaaS ARR growth of 25%.

• Bookings for Extreme Platform ONE doubled internal plan, with significant wins in retail, healthcare, education, and sports venues.

• Non-GAAP EPS increased 24% year-over-year to $0.26, and adjusted EBITDA reached $52.4 million.

• Named a Leader in the IDC MarketScape: Worldwide Enterprise Wireless LAN 2025 Vendor Assessment.

• Operational agility and supply chain management enabled margin protection and continued delivery despite component shortages.

Financial highlights

• Q2 revenue: $318 million, up 14% year-over-year, exceeding guidance.

• Non-GAAP gross margin: 62%, up 70 basis points sequentially; GAAP gross margin: 61.4%.

• Adjusted EBITDA: $52.4 million; free cash flow: $43 million in Q2.

• Non-GAAP operating margin: 15.0%; net cash improved to $47 million from $7.8 million in the prior quarter.

• Deferred recurring revenue: $628 million, up 9% year-over-year.

Outlook and guidance

• Q3 revenue expected between $309 million and $314 million; non-GAAP gross margin: 61.0%-61.4%; non-GAAP EPS: $0.23-$0.25.

• FY26 revenue guidance raised to $1,262 million-$1,270 million; non-GAAP EPS: $0.98-$1.02.

• Expect to grow profit faster than revenue for FY26, with profitability growth around 20%.

• Long-term gross margin goal remains 64%-66%.

• Management expects continued demand for cloud-managed networking and AI-driven solutions, with TAM projected to grow at a 7% CAGR to $59B by 2029.