Extreme Networks, Inc. · NASDAQ:EXTR

Extreme Networks — Q3 2026 Earnings Presentation

32 slides from Extreme Networks's earnings presentation, Apr 29, 2026

  1. Slide 1: 3Q26 Financial Results

    3Q26 Financial Results April 29, 2026

  2. Slide 2: Disclaimer

    DISCLAIMER Non - GAAP Financial Measures Forward - Looking Statements This presentation includes certain financial measures that are not presented in accordance with This presentation contains forward - looking statements including generally accepted accounting principles in the United States (“GAAP

  3. Slide 3: 3Q26 Financial Results

    3Q26 FINANCIAL RESULTS ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 3

  4. Slide 4: 3Q26 Results Summary

    3Q26 RESULTS SUMMARY • Double - digit Bookings Growth Globally Bookings and • Total Revenue Growth of 11% YoY Revenue Trends • Recurring Revenue 2 of $114M up 13% YoY Cloud SaaS • SaaS ARR 2 of $236M, Up 29% YoY Subscriptions and • Extreme Platform ONE Bookings Ahead of Expectations Recurring Revenu

  5. Slide 5: 3Q26 Highlights

    3Q26 HIGHLIGHTS Total Revenue Non - GAAP Gross Profit 1 Non - GAAP EPS 1 Adjusted EBITDA 1 $317M $197M $0.26 $53M $236M 62.3% 15.2% 16.9% Non - GAAP Gross Margin 1% 1% 1 SaaS ARR 2 Non - GAAP Operating Margin Adjusted EBITDA Margin 29% 44 70 SaaS ARR 2 36% Customers with $1M+ in Total Managed Recurr

  6. Slide 6: Financial Highlights

    FINANCIAL HIGHLIGHTS (IN $M EXCEPT PERCENTAGES AND EPS) GAAP Non - GAAP 1 3Q25 2Q26 3Q26 3Q25 2Q26 3Q26 Product Revenue $178.1 $197.8 $199.4 $178.1 $197.8 $199.4 Subscription & Support Revenue $106.4 $120.2 $117.5 $106.4 $120.2 $117.5 Total Revenue $284.5 $318.0 $316.9 $284.5 $318.0 $316.9 Total GM

  7. Slide 7: Quarterly Revenue Results

    QUARTERLY REVENUE RESULTS (IN $M EXCEPT PERCENTAGES) Total Revenue $310 $318 $317 $307 $279 $285 $269 $257 37% 37% 38% 37% 38% 37% 40% 40% 63% 63% 62% 63% 60% 62% 63% 60% 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 1 Product Revenue Subscription & Support Revenue 1S ee Appendices for definitions of metr

  8. Slide 8: Quarterly Gross Profit and Margin

    QUARTERLY GROSS PROFIT AND MARGIN (IN $M EXCEPT PERCENTAGES) Gross Profit - GAAP Gross Profit - Adjusted Results 1 $250 100.0% $250 100.0% $195 $196 90.0% $191 $197 $197 90.0% $200 $189 $188 $200 $190 $175 $175 $171 $177 $177 $170 $163 80.0% 80.0% $150 $150 $115 70.0% 70.0% 63.0% 62.7% 63.5% 63.7% 6

  9. Slide 9: Quarterly Operating Expense and Margin

    QUARTERLY OPERATING EXPENSE AND MARGIN (IN $M EXCEPT PERCENTAGES) Operating Expenses - GAAP Operating Expenses - Adjusted Results 1 $250 50.0% $200 38.0% 40.0% $180 $200 $191 $149 $149 $149 $174 $177 $182 $178 30.0% $160 $144 28.0% $165 $138 $136 $137 $164 $162 $140 $128 20.0% $150 15.2% 15.2% 13.5%

  10. Slide 10: Quarterly EPS

    QUARTERLY EPS EPS - GAAP EPS - Adjusted Results 1 $0.40 $0.30 $0.25 $0.26 $0.26 $0.21 $0.21 $0.22 $0.19 $0.17 $0.20 $0.06 $0.08 $0.10 $0.03 $0.04 $0.06 $- $(0.10) $(0.08) $(0.06) $(0.20) $(0.30) $(0.40) $(0.50) $(0.42) $(0.60) 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q2

  11. Slide 11: 3Q26 Revenue by Geography

    3Q26 REVENUE BY GEOGRAPHY (IN $M EXCEPT PERCENTAGES) AMERICAS EMEA APAC $139M $153M $25M 44% of Revenue 48% of Revenue 8% of Revenue Note: t he total of revenues in each geography may not equal total revenue due to rounding. ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 11

  12. Slide 12: Financial Highlights – Balance Sheet

    FINANCIAL HIGHLIGHTS – BALANCE SHEET (IN $M) Balance Sheet Highlights 3Q25 2Q26 3Q26 Cash and Cash Equivalents $185.5 $219.8 $210.1 Accounts Receivable $99.5 $152.4 $162.7 Inventories $115.7 $83.6 $76.6 Accounts Payable $47.1 $64.8 $81.2 1 Gross Debt $182.5 $172.5 $198.8 1 Net Cash $3.0 $47.3 $11.32

  13. Slide 13: Free Cash Flow

    FREE CASH FLOW (IN $M) $150 Free Cash Flow $100 1 $75 Free Cash Flow 3Q25 2Q26 3Q26 $50 $43 Operating Cash Flow $30.0 $50.1 $14.2 $16 $24 $11 $12 $8 PP&E Capital Expenditures (5.8) (7.1) (6.4) - Free Cash Flow $24.2 $43.0 $7.8 ($21) ($50) Share Repurchases $13.0 $0.0 $50.0 ($100) 4Q24 1Q25 2Q25 3Q25

  14. Slide 14: SaaS ARR

    SaaS ARR (IN $M EXCEPT PERCENTAGES) SaaS ARR 1 $260 $240 $236 $227 $220 $216 $208 $200 $181 $184 $180 $174 $167 $160 $140 YoY Growth 29% 23% 14% 13% 24% 24% 25% 29% $120 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 1S ee Appendices for definitions of metrics & KPIs . ©2026 EXTREME NETWORKS, INC. ALL RIGH

  15. Slide 15: Recurring Revenue

    RECURRING REVENUE (IN $M EXCEPT PERCENTAGES) Recurring Revenue 1 $115 $115 $114 $111 75% $110 $109 65% $105 $103 $103 55% $101 $101 $100 45% 39% 38% 37% 35% 36% 36% 36% 36% $95 35% $90 25% 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 Recurring Revenue as % of Total Revenue 1S ee Appendices for definition

  16. Slide 16: Deferred Recurring Revenue

    DEFERRED RECURRING REVENUE (IN $M EXCEPT PERCENTAGES) Deferred Recurring Revenue 1 $628 $630 70% $618 $606 $600 $575 $578 65% $557 $562 60% $550 53% 54% 53% 55% 50% 50% 51% $500 49% 48% 50% $450 45% $400 40% 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 1 Deferred Recurring Revenue SaaS Deferred Revenue %

  17. Slide 17: 4Q26 Financial Guidance

    4Q26 FINANCIAL GUIDANCE ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 17

  18. Slide 18: 4Q26 Guidance

    4Q26 GUIDANCE (IN $M EXCEPT PERCENTAGES AND EPS) GAAP Non - GAAP 1 4Q26 4Q26 Revenue ($M) $330 - $335 $330 - $335 Gross Margin % 61.2% - 61.6% 61.8% - 62.2% Operating Margin % 6.1% - 7.1% 15.2% - 16.1% EPS $0.12 - $0.15 $0.28 - $0.30 1See Appendices for GAAP to Non - GAAP reconciliation . ©2026 EXTR

  19. Slide 19: FY26 Guidance

    FY26 GUIDANCE (IN $M EXCEPT PERCENTAGES AND EPS) GAAP Non - GAAP 1 FY26 FY26 Revenue ($M) $1,275 - $1,280 $1,275 - $1,280 Gross Margin % 61.2% - 61.3% 61.8% - 61.9% Operating Margin % 4.8% - 5.1% 14.7% - 14.9% EPS $0.30 - $0.33 $1.02 - $1.04 1See Appendices for GAAP to Non - GAAP reconciliation . ©2

  20. Slide 20: Appendices

    APPENDICES GAAP to Non - GAAP Reconciliations and Operating Metrics Note: The totals for some periods may not foot due to rounding. Please see press release for full reconciliation. ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 20

  21. Slide 21: Supplemental Information: GAAP to Adjusted Results

    SUPPLEMENTAL INFORMATION: GAAP TO ADJUSTED RESULTS (IN $M EXCEPT PERCENTAGES AND EPS) We recorded an additional provision for excess and obsolete (“E&O”) inventory and loss on our supplier commitments of $64.5 m illion during fiscal 2024. The quarterly split was as follows: 1Q24: $10.5m, 3Q24: $7.5m

  22. Slide 22: Non-GAAP Quarterly Results of Operations

    NON - GAAP QUARTERLY RESULTS OF OPERATIONS (IN $M EXCEPT PERCENTAGES) Gross Profit - Non - GAAP 1 $250 100.0% $191 $197 $197 90.0% $200 $190 $171 $177 $177 80.0% $150 $116 70.0% 63.7% 63.4% 62.3% 62.3% 62.3% $100 61.3% 62.0% 60.0% $50 50.0% 45.4% - 40.0% 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 Produ

  23. Slide 23: Non-GAAP Quarterly Results of Operations

    NON - GAAP QUARTERLY RESULTS OF OPERATIONS (IN $M EXCEPT PERCENTAGES) Operating Expenses - Non - GAAP 1 $200 $180 35.0% $160 $144 $149 $149 $149 $138 $136 $137 25.0% $140 $128 14.7% 14.1% 15.2% 15.0% 15.2% $120 12.4% 13.3% 15.0% $100 $80 5.0% $60 (4.6%) $40 (5.0%) $20 - (15.0%) 4Q24 1Q25 2Q25 3Q25 4

  24. Slide 24: Non-GAAP Quarterly Results of Operations

    NON - GAAP QUARTERLY RESULTS OF OPERATIONS EPS - Non - GAAP 1 $0.40 $0.30 $0.26 $0.26 $0.25 $0.21 $0.21 $0.22 $0.20 $0.17 $0.10 $- $(0.10) $(0.08) $(0.20) $(0.30) 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 1See slides 25 - 30 for GAAP to Non - GAAP reconciliation. ©2026 EXTREME NETWORKS, INC. ALL RIGHT

  25. Slide 25: GAAP to Non-GAAP Reconciliations – Gross Margin

    GAAP TO NON - GAAP RECONCILIATIONS – GROSS MARGIN (IN $M EXCEPT PERCENTAGES) 3Q25 2Q26 3Q26 Product Revenue $178.1 $197.8 $199.4 Subscription & Support Revenue 106.4 120.2 117.5 Total Revenue - GAAP $284.5 $318.0 $316.9 Gross Margin - GAAP 175.4 195.1 195.5 Gross Margin % - GAAP 61.7% 61.4% 61.7% Am

  26. Slide 26: GAAP to Non-GAAP Reconciliations – Operating Income

    GAAP TO NON - GAAP RECONCILIATIONS – OPERATING INCOME (IN $M EXCEPT PERCENTAGES) 3Q25 2Q26 3Q26 Operating Income - GAAP $10.4 $13.0 $17.3 Operating Margin - GAAP 3.6% 4.1% 5.5% Amortization of Intangibles 1.1 0.7 0.7 Share - Based Compensation, Total 20.4 22.9 21.8 Restructuring and Related Charges

  27. Slide 27: GAAP to Non-GAAP Reconciliations – Net Income

    GAAP TO NON - GAAP RECONCILIATIONS – NET INCOME (IN $M EXCEPT EPS) 3Q25 2Q26 3Q26 Net Income – GAAP $3.5 $7.9 $10.6 Amortization of Intangibles 1.1 0.7 0.7 Share - Based Compensation, Total 20.4 22.9 21.8 Restructuring and Related Charges (Benefit) (0.5) 0.2 - System Transition Costs 7.5 6.5 7.6 Lit

  28. Slide 28: Adjusted EBITDA Reconciliation

    ADJUSTED EBITDA RECONCILIATION (IN $M) 3Q25 2Q26 3Q26 Net Income - GAAP $3.5 $7.9 $10.6 Depreciation 3.5 4.0 3.8 Amortization 1.1 1.8 2.6 Share - Based Compensation 20.4 22.9 21.8 Restructuring and Related Charges (Benefit) (0.5) 0.2 - System Transition Costs 7.5 6.5 7.6 Litigation Costs 1.1 0.8 0.4

  29. Slide 29: GAAP to Non-GAAP Reconciliations – 4Q26 Guidance

    GAAP TO NON - GAAP RECONCILIATIONS – 4Q26 GUIDANCE Gross Margin Operating Margin Earnings Rate Rate per Share GAAP 61.2% - 61.6% 6.1% - 7.1% $0.12 - $0.15 Estimated Adjustments for: Share - Based Compensation 0.5% 7.0% - 7.1% 0.18 Amortization of Product Intangibles 0.1% 0.1% 0.00 Amortization of No

  30. Slide 30: GAAP to Non-GAAP Reconciliations – FY26 Guidance

    GAAP TO NON - GAAP RECONCILIATIONS – FY26 GUIDANCE Gross Margin Operating Margin Earnings Rate Rate per Share GAAP 61.2% - 61.3% 4.8% - 5.1% $0.30 - $0.33 Estimated Adjustments for: Share - Based Compensation 0.5% 7.1% - 7.2% 0.67 Amortization of Product Intangibles 0.1% 0.1% 0.01 Amortization of No

  31. Slide 31: Definitions

    DEFINITIONS SaaS ARR (SaaS Annual Recurring Revenue) Represents the annualized value of our subscription offerings and the renewable, term - based license portion of software license arrangements. SaaS ARR excludes perpetual licenses, upfront license fees, variable or non - recurring revenue, profes

  32. Slide 32: ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED.

    32 ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED.

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