Extreme Networks Extends Double-Digit Growth Streak

The Tip Desk · November 8, 2026 · 3 min read

SaaS ARR reached $264.7 million, up 22% from a year earlier, as fiscal first-quarter revenue climbed 10% to $341.1 million.

Extreme Networks, Inc. (EXTR) reported revenue of $341.1 million for the three months ended September 30, 2026, up 10% from a year earlier, extending a run of double-digit year-over-year growth to seven consecutive quarters.

The AI-powered cloud networking company said the year-over-year rate slowed from 10.3% in the fiscal fourth quarter and 11% in the fiscal third quarter. Sequential revenue growth was 0.7%, after 6.8% in the prior quarter.

Product revenue was $218.3 million. Subscription and support revenue was $122.8 million.

SaaS ARR, the annualized value of cloud and term-based software arrangements, was $264.7 million, up 22% from a year earlier, accelerating from 17.7% growth in the fiscal fourth quarter. Sequential SaaS ARR growth was 8.4%.

President and CEO Ed Meyercord said demand for Extreme Platform ONE continued to accelerate, with strong quarter-over-quarter subscription gains. He said Platform ONE bookings were now over 50% of subscription bookings, up five times from the prior year, versus over 30% of subscription bookings in the platform’s first year of availability.

GAAP diluted earnings were $0.12 a share, up 200% from a year earlier. Non-GAAP diluted earnings were $0.33 a share, up 50%. GAAP net income was $16.0 million. Non-GAAP net income was $44.5 million. Adjusted EBITDA was $65.6 million, up 47%.

GAAP gross margin was 62.1%, compared with 60.6% a year earlier. Non-GAAP gross margin was 62.6%. GAAP operating margin was 6.8%. Non-GAAP operating margin was 17.4%.

Restructuring and related charges were $7.4 million in the quarter, compared with $0.4 million a year earlier.

Free cash flow was $38.6 million, versus a $20.9 million outflow a year earlier. Cash and cash equivalents ended at $244.5 million, up $32.7 million from June 30, 2026. Net cash was $44.5 million. The company repurchased $25.0 million of stock, 844,131 shares at an average $29.62.

Chief Financial Officer Kevin Rhodes said fiscal 2027 got off to a better than seasonal start and that the company expects to sustain that level of growth through the year. He said supply-chain actions allow more measured, targeted pricing actions than competitors, while offsetting incremental supply-chain costs the industry is facing.

In early September the company made Extreme Agent ONE Coworker generally available for Platform ONE. Meyercord said customer engagement in the first month was roughly 10 times that of the first-generation conversational AI platform. The company said users responded to 98% of critical nudges in that first month.

For the second quarter of fiscal 2027, ending December 31, 2026, Extreme is targeting revenue of $345.8 million to $350.8 million, implying about 10% growth, and non-GAAP earnings of $0.32 to $0.34 a share. Full-year fiscal 2027 guidance is $1,402.3 million to $1,412.3 million of revenue and non-GAAP earnings of $1.35 to $1.39 a share.