Extreme Networks (EXTR) Q4 2026 earnings summary

Executive summary

• Achieved total revenue of $317M in 3Q26, up 11% year-over-year, with double-digit bookings growth globally.

• SaaS ARR reached $236M, growing 29% year-over-year, and recurring revenue was $114M, up 13% year-over-year.

• Non-GAAP EPS grew 24% year-over-year to $0.26, and adjusted EBITDA was $53M.

• Repurchased $50M in shares through an Accelerated Share Repurchase program.

Financial highlights

• Non-GAAP gross margin was 62.3% in 3Q26, with a non-GAAP operating margin of 15.2%.

• Net cash position at quarter-end was $11M, with $210M in cash and cash equivalents.

• Free cash flow for 3Q26 was $7.8M, with operating cash flow of $14.2M.

• Deferred recurring revenue stood at $630M at the end of 3Q26.

Outlook and guidance

• FY26 revenue guidance is $1,275M–$1,280M, with non-GAAP gross margin of 61.8%–61.9%.

• FY26 non-GAAP operating margin expected at 14.7%–14.9%, and non-GAAP EPS at $1.02–$1.04.

• 4Q26 revenue guidance is $330M–$335M, with non-GAAP EPS of $0.28–$0.30.

• Recurring revenue projected to rise from 36% of total revenue in FY25 to 41% in FY29.