Revenue growth has moderated to 11.4% in 2026Q3, while operating margins remain constrained at 5.5% due to heavy R&D and sales infrastructure investments.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 |
|---|
| Sales/Revenue | 1.25B | 1.14B | 1.12B | 1.31B | 1.11B | 1.01B | 948.02M | 995.79M | 983.14M | 598.12M | 528.39M | 552.94M | 519.55M | 299.34M | 322.72M | 334.43M | 309.35M | 335.56M | 361.83M | 342.83M | 358.6M | 383.35M | 351.85M | 363.28M | 441.61M | 491.23M | 261.96M | 98M | 23.6M |
| Revenue Growth % | 14.9% | 2.05% | -14.88% | 17.99% | 10.19% | 6.48% | -4.8% | 1.29% | 64.37% | 13.2% | -4.44% | 6.43% | 73.56% | -7.24% | -3.5% | 8.11% | -7.81% | -7.26% | 5.54% | -4.4% | -6.46% | 8.95% | -3.15% | -17.74% | -10.1% | 87.52% | 167.3% | 315.25% | - |
| Cost of Goods Sold | 484.71M | 430.94M | 488.41M | 559.78M | 485.62M | 436M | 441.64M | 453.9M | 457.34M | 284.83M | 274.6M | 291.07M | 268.94M | 136.72M | 142.88M | 154.47M | 132.86M | 145.03M | 156.53M | 157.64M | 164.72M | 180.77M | 172.65M | 212.92M | 234.5M | 281.23M | 126.92M | 42.6M | 13.4M |
| COGS % of Revenue | - | 37.8% | 43.72% | 42.65% | 43.66% | 43.19% | 46.59% | 45.58% | 46.52% | 47.62% | 51.97% | 52.64% | 51.76% | 45.67% | 44.27% | 46.19% | 42.95% | 43.22% | 43.26% | 45.98% | 45.94% | 47.16% | 49.07% | 58.61% | 53.1% | 57.25% | 48.45% | 43.47% | 56.78% |
| Gross Profit | 767.33M | 709.13M | 628.79M | 752.67M | 626.7M | 573.41M | 506.38M | 541.89M | 525.8M | 322.25M | 253.79M | 261.87M | 250.62M | 161.58M | 179.85M | 179.96M | 176.49M | 190.53M | 205.31M | 185.19M | 193.88M | 202.58M | 179.2M | 150.35M | 207.11M | 210M | 135.04M | 55.4M | 10.2M |
| Gross Margin % | 61.29% | 62.2% | 56.28% | 57.35% | 56.34% | 56.81% | 53.41% | 54.42% | 53.48% | 53.88% | 48.03% | 47.36% | 48.24% | 53.98% | 55.73% | 53.81% | 57.05% | 56.78% | 56.74% | 54.02% | 54.06% | 52.84% | 50.93% | 41.39% | 46.9% | 42.75% | 51.55% | 56.53% | 43.22% |
| Gross Profit Growth % | - | 12.78% | -16.46% | 20.1% | 9.29% | 13.24% | -6.55% | 3.06% | 63.16% | 26.98% | -3.09% | 4.49% | 55.1% | -10.15% | -0.06% | 1.97% | -7.37% | -7.2% | 10.86% | -4.48% | -4.3% | 13.05% | 19.18% | -27.4% | -1.38% | 55.51% | 143.75% | 443.14% | - |
| Operating Expenses | 727.08M | 692.18M | 657.67M | 641.11M | 553.65M | 534.39M | 549.03M | 548.08M | 500.47M | 294.21M | 267.2M | 304.84M | 274.72M | 154.45M | 164.47M | 177.29M | 172.85M | 183.42M | 203.24M | 202.78M | 185.92M | 190.25M | 181.99M | 200.63M | 366.53M | 311.89M | 118.79M | 56.9M | 24.3M |
| OpEx % of Revenue | - | 60.71% | 58.87% | 48.85% | 49.77% | 52.94% | 57.91% | 55.04% | 50.91% | 49.19% | 50.57% | 55.13% | 52.88% | 51.6% | 50.96% | 53.01% | 55.87% | 54.66% | 56.17% | 59.15% | 51.84% | 49.63% | 51.72% | 55.23% | 83% | 63.49% | 45.35% | 58.06% | 102.97% |
| Selling, General & Admin | 490.93M | 467.18M | 445.74M | 426.84M | 363.06M | 337.4M | 339.42M | 337.95M | 316.6M | 200.49M | 188.48M | 211.39M | 197.58M | 113.93M | 118.83M | 127.96M | 123.46M | 125.25M | 137.91M | 135.69M | 123.95M | 128.66M | 122.82M | 128.21M | 167.92M | 216.49M | 79M | 34M | 12M |
| SG&A % of Revenue | - | 40.98% | 39.9% | 32.52% | 32.64% | 33.42% | 35.8% | 33.94% | 32.2% | 33.52% | 35.67% | 38.23% | 38.03% | 38.06% | 36.82% | 38.26% | 39.91% | 37.33% | 38.11% | 39.58% | 34.56% | 33.56% | 34.91% | 35.29% | 38.02% | 44.07% | 30.16% | 34.69% | 50.85% |
| Research & Development | 230.93M | 221.46M | 211.93M | 214.27M | 190.59M | 197M | 209.61M | 210.13M | 183.88M | 93.72M | 78.72M | 93.45M | 77.15M | 40.52M | 45.64M | 49.33M | 49.39M | 58.18M | 65.33M | 67.08M | 61.97M | 61.27M | 58.1M | 58M | 61.49M | 57.88M | 32.74M | 17M | 10.7M |
| R&D % of Revenue | - | 19.43% | 18.97% | 16.33% | 17.13% | 19.52% | 22.11% | 21.1% | 18.7% | 15.67% | 14.9% | 16.9% | 14.85% | 13.54% | 14.14% | 14.75% | 15.97% | 17.34% | 18.06% | 19.57% | 17.28% | 15.98% | 16.51% | 15.97% | 13.92% | 11.78% | 12.5% | 17.35% | 45.34% |
| Other Operating Expenses | 2.01M | 3.54M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -69K | 1.06M | 14.42M | 137.12M | 37.53M | 7.05M | 5.9M | 1.6M |
| Operating Income | 40.25M | 16.95M | -28.88M | 111.56M | 73.06M | 39.02M | -42.65M | -6.19M | 25.33M | 28.04M | -13.41M | -42.97M | -24.11M | 7.14M | 15.38M | 2.67M | 3.64M | 7.1M | 2.06M | -17.58M | 7.96M | 12.33M | -9.28M | -66.22M | -232.99M | -101.89M | 16.25M | -1.5M | -14.1M |
| Operating Margin % | 3.21% | 1.49% | -2.59% | 8.5% | 6.57% | 3.87% | -4.5% | -0.62% | 2.58% | 4.69% | -2.54% | -7.77% | -4.64% | 2.38% | 4.77% | 0.8% | 1.18% | 2.12% | 0.57% | -5.13% | 2.22% | 3.22% | -2.64% | -18.23% | -52.76% | -20.74% | 6.2% | -1.53% | -59.75% |
| Operating Income Growth % | - | 158.69% | -125.89% | 52.71% | 87.23% | 191.5% | -588.73% | -124.45% | -9.67% | 309.03% | 68.78% | -78.25% | -437.81% | -53.61% | 475.89% | -26.68% | -48.72% | 244.02% | 111.75% | -320.85% | -35.46% | 232.9% | 85.98% | 71.58% | -128.66% | -726.88% | 1183.6% | 89.36% | - |
| EBITDA | 60.91M | 36.17M | 12.02M | 158.69M | 128.15M | 116.07M | 42.8M | 49.68M | 74.39M | 54.38M | 29.76M | 5.81M | 15.29M | 13.17M | 22.55M | 11.56M | 9.23M | 13.01M | 9.26M | -9.65M | 19.86M | 28.58M | 16.96M | -39.56M | -154.24M | -45.03M | 30.42M | 4.4M | -12.5M |
| EBITDA Margin % | 4.86% | 3.17% | 1.08% | 12.09% | 11.52% | 11.5% | 4.51% | 4.99% | 7.57% | 9.09% | 5.63% | 1.05% | 2.94% | 4.4% | 6.99% | 3.46% | 2.98% | 3.88% | 2.56% | -2.82% | 5.54% | 7.45% | 4.82% | -10.89% | -34.93% | -9.17% | 11.61% | 4.49% | -52.97% |
| EBITDA Growth % | 655.85% | 200.87% | -92.42% | 23.83% | 10.4% | 171.23% | -13.86% | -33.21% | 36.79% | 82.75% | 411.9% | -61.99% | 16.15% | -41.6% | 95.02% | 25.25% | -29.03% | 40.48% | 195.9% | -148.61% | -30.51% | 68.45% | 142.88% | 74.35% | -242.48% | -248.06% | 591.3% | 135.2% | - |
| D&A (Non-Cash Add-back) | 20.66M | 19.22M | 40.9M | 47.12M | 55.09M | 77.05M | 85.44M | 55.87M | 49.06M | 26.34M | 43.17M | 48.78M | 39.4M | 6.03M | 7.17M | 8.89M | 5.59M | 5.9M | 7.19M | 7.93M | 11.9M | 16.24M | 26.25M | 26.65M | 78.75M | 56.86M | 14.16M | 5.9M | 1.6M |
| EBIT | 42.77M | 20.2M | -60.51M | 111.49M | 64.98M | 33.04M | -96.74M | -13.28M | -35.86M | 6.68M | -24.45M | -63.66M | -51.04M | 11.35M | 17.07M | 3.84M | -42K | 5.43M | 10.65M | -8.91M | 17.56M | 23.1M | -2.79M | -50.28M | -159.42M | -101.89M | 16.25M | -1.5M | -14.1M |
| Net Interest Income | -8.82M | -11.62M | -12.43M | -14.23M | -12.38M | -22.5M | -22.33M | -10.37M | -11.08M | -3.4M | -2.98M | -2.64M | -1.33M | 1.07M | 1.16M | 1.17M | 1.34M | 3.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 4.97M | 4.31M | 4.56M | 3.15M | 412K | 352K | 1.42M | 2.23M | 2.85M | 689K | 113K | 541K | 751K | 1.07M | 1.24M | 1.3M | 1.48M | 3.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 13.79M | 15.93M | 16.99M | 17.39M | 12.79M | 22.86M | 23.75M | 12.6M | 13.92M | 4.09M | 3.1M | 3.18M | 2.08M | 0 | 75K | 132K | 141K | 147K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -10.55M | -12.68M | -48.62M | -17.46M | -20.86M | -28.84M | -77.85M | -19.68M | -71.98M | -25.45M | -14.13M | -23.87M | -29.02M | 4.21M | 1.69M | 1.04M | -3.83M | -1.82M | 8.49M | 5.52M | 2.35M | 3.73M | 3.16M | -26.54M | -3.81M | 10.34M | 14.12M | 1.6M | 400K |
| Pretax Income | 29.7M | 4.27M | -77.5M | 94.11M | 52.19M | 10.19M | -120.49M | -25.87M | -46.65M | 2.6M | -27.55M | -66.84M | -53.12M | 11.35M | 17.07M | 3.71M | -183K | 5.29M | 10.56M | -12.06M | 10.31M | 16.06M | 1.43M | -62.39M | -236.8M | -91.55M | 30.37M | 100K | -13.7M |
| Pretax Margin % | 2.37% | 0.37% | -6.94% | 7.17% | 4.69% | 1.01% | -12.71% | -2.6% | -4.74% | 0.43% | -5.21% | -12.09% | -10.22% | 3.79% | 5.29% | 1.11% | -0.06% | 1.58% | 2.92% | -3.52% | 2.87% | 4.19% | 0.41% | -17.18% | -53.62% | -18.64% | 11.59% | 0.1% | -58.05% |
| Income Tax | 13.43M | 11.74M | 8.46M | 16.03M | 7.92M | 8.25M | 6.35M | -21K | 145K | 4.34M | 4.34M | 4.81M | 4.19M | 1.68M | 1.2M | 999K | -410K | 2.47M | 2.18M | 2.14M | 1.8M | 3.54M | 3.18M | 134.79M | -52.84M | -22.67M | 10.32M | 1.7M | 200K |
| Effective Tax Rate % | 45.21% | 274.75% | -10.92% | 17.04% | 15.18% | 80.99% | -5.27% | 0.08% | -0.31% | 167.18% | -15.74% | -7.19% | -7.89% | 14.78% | 7.01% | 26.91% | 224.04% | 46.76% | 20.63% | -17.75% | 17.44% | 22.06% | 222.41% | -216.02% | 22.31% | 24.76% | 33.99% | 1700% | -1.46% |
| Net Income | 16.27M | -7.47M | -85.96M | 78.07M | 44.27M | 1.94M | -126.84M | -25.85M | -46.79M | -8.52M | -31.88M | -71.64M | -57.31M | 9.67M | 15.87M | 2.71M | 227K | 2.81M | 8.38M | -14.2M | 8.51M | 12.94M | -1.75M | -197.18M | -183.96M | -68.88M | 20.05M | -1.6M | -13.9M |
| Net Margin % | 1.3% | -0.66% | -7.69% | 5.95% | 3.98% | 0.19% | -13.38% | -2.6% | -4.76% | -1.42% | -6.03% | -12.96% | -11.03% | 3.23% | 4.92% | 0.81% | 0.07% | 0.84% | 2.32% | -4.14% | 2.37% | 3.38% | -0.5% | -54.28% | -41.66% | -14.02% | 7.65% | -1.63% | -58.9% |
| Net Income Growth % | 130.21% | 91.31% | -210.11% | 76.35% | 2186.73% | 101.53% | -390.64% | 44.75% | -449.4% | 73.29% | 55.5% | -25.01% | -692.47% | -39.06% | 485.03% | 1095.15% | -91.94% | -66.41% | 159.03% | -266.85% | -34.25% | 840.39% | 99.11% | -7.19% | -167.06% | -443.59% | 1353% | 88.49% | - |
| Net Income (Continuing) | 16.27M | -7.47M | -85.96M | 78.07M | 44.27M | 1.94M | -126.84M | -25.85M | -46.79M | -1.74M | -31.88M | -71.64M | -57.31M | 9.67M | 15.87M | 2.71M | 227K | 2.81M | 8.38M | -14.2M | 8.51M | 12.94M | -1.75M | -197.18M | -183.96M | -68.88M | 20.05M | -1.6M | -13.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.12 | -0.06 | -0.66 | 0.58 | 0.33 | 0.02 | -1.06 | -0.22 | -0.41 | -0.08 | -0.31 | -0.72 | -0.60 | 0.10 | 0.17 | 0.03 | 0.00 | 0.03 | 0.07 | -0.12 | 0.07 | 0.10 | -0.01 | -1.71 | -1.63 | -0.64 | 0.20 | -0.08 | -1.59 |
| EPS Growth % | 128.68% | 91.45% | -213.79% | 75.76% | 2071.05% | 101.43% | -381.82% | 46.34% | -420.97% | 74.61% | 56.94% | -20% | -700% | -41.18% | 466.67% | - | -91.67% | -57.14% | 158.33% | -271.43% | -30% | 775.68% | 99.13% | -4.91% | -154.69% | -420% | 336.69% | 94.69% | - |
| EPS (Basic) | - | -0.06 | -0.66 | 0.60 | 0.34 | 0.02 | -1.06 | -0.22 | -0.41 | -0.08 | -0.31 | -0.72 | -0.60 | 0.10 | 0.17 | 0.03 | 0.00 | 0.03 | 0.07 | -0.12 | 0.07 | 0.10 | -0.01 | -1.71 | -1.63 | -0.64 | 0.20 | -0.08 | -1.59 |
| Diluted Shares Outstanding | 133.59M | 132.33M | 129.29M | 133.65M | 133.49M | 127.67M | 119.81M | 117.95M | 114.22M | 108.27M | 103.07M | 99M | 95.52M | 95.04M | 94.49M | 92.8M | 89.48M | 94.28M | 115.78M | 114.12M | 123.05M | 124.17M | 118.35M | 115.19M | 112.92M | 108.35M | 110.65M | 18.92M | 8.76M |
| Basic Shares Outstanding | 132.93M | 132.33M | 129.29M | 129.47M | 129.44M | 124.02M | 119.81M | 117.95M | 114.22M | 108.27M | 103.07M | 99M | 95.52M | 93.95M | 93.45M | 91.42M | 89.28M | 94.22M | 115M | 114.12M | 121.29M | 121.22M | 118.35M | 115.19M | 112.92M | 108.35M | 100.52M | 18.92M | 8.76M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Operating margin volatility
According to recent quarterly filings, Extreme Networks' revenue growth has decelerated from a peak of 34.8% in 2025Q3 to 11.4% in 2026Q3, reflecting a transition from supply-constrained backlog fulfillment to a more normalized demand environment that warrants caution regarding future top-line durability in the enterprise segment.
The revenue trajectory appears to be shifting from the artificial highs of post-pandemic backlog clearing to a more organic, demand-driven cycle. Investors should monitor whether the current mid-teens growth rate can be sustained as the company faces increased competition from larger incumbents in the campus networking space.
As reported in financial statements, the company has maintained gross margins near 61.6% in 2026Q3, suggesting that the shift toward Universal Hardware and cloud-based software is successfully offsetting the inherent volatility of third-party manufacturing costs that previously pressured margins during the 2024 fiscal year.
The recovery in gross margins from the 44.5% trough in 2024Q4 indicates that the company has successfully navigated the worst of its supply chain and inventory obsolescence issues. However, sustaining these levels will likely require continued discipline in software attach rates to prevent commoditization of the underlying hardware.
Based on EXTR's reported figures, operating margins have struggled to scale, reaching only 5.5% in 2026Q3 despite significant revenue growth, which implies that the company's heavy investment in R&D and global sales infrastructure continues to consume the majority of incremental gross profit generated by the business.
The persistent gap between gross and operating margins suggests that Extreme is currently trapped in a high-fixed-cost structure required to maintain its cloud-native platform. Without a material reduction in SG&A intensity, the company may find it difficult to achieve the operating leverage necessary to satisfy institutional profitability expectations.
Data from recent income statements reveals that stock-based compensation remains elevated at approximately $21.8 million in 2026Q3, a figure that frequently exceeds the reported net income, suggesting that GAAP earnings may overstate the true cash-generative capacity of the business for common shareholders.
The reliance on equity-based incentives to manage talent costs in a competitive tech environment warrants further investigation into the quality of reported EPS. Investors should be wary of the disconnect between GAAP profitability and the actual cash flow available to the firm after accounting for these non-cash expenses.
Quick answers to the most common questions about buying EXTR stock.
For fiscal year 2025, Extreme Networks, Inc. (EXTR) reported total revenue of $1.14B. This represents a 4730.8% increase compared to $23.6M in 1998.
Extreme Networks, Inc. (EXTR) reported a net loss of $7.5M for the fiscal year ending 2025.
Extreme Networks, Inc. (EXTR) reported an operating income of $16.9M, resulting in an operating profit margin of 1.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Extreme Networks, Inc. (EXTR) generated $709.1M in gross profit for the year, representing a gross profit margin of 62.2%. This demonstrates the company's core pricing power and production efficiency.