Extreme Networks, Inc. · NASDAQ:EXTR

Extreme Networks — Q4 2025 Earnings Presentation

31 slides from Extreme Networks's earnings presentation, Aug 6, 2025

  1. Slide 1: 4Q25 & FY25 Financial Results

    4Q25 & FY25 Financial Results August 06, 2025

  2. Slide 2: Disclaimer

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

  3. Slide 3: 4Q25 Financial Results

    4Q25 FINANCIAL RESULTS © EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 3

  4. Slide 4: 4Q25 Results Summary

    4Q25 RESULTS SUMMARY • Sequential Growth in Revenue Led by Growth in APAC and EMEA Bookings and • 5th Consecutive Quarter of Growth in Revenue Revenue Trends • Recurring Revenue 2 of $109M up 8% Sequentially and YoY Cloud SaaS • SaaS ARR 1 of $208M, Up 24% YoY Subscriptions and • Strong Double-Digit

  5. Slide 5: FY25 Highlights

    FY25 HIGHLIGHTS Total Revenue Non-GAAP Gross Profit 1 Non-GAAP EPS 1 $ Non-GAAP EBITDA1 $1.14B $717M $0.84 $175M $208M 62.9% 14.2% $52M SaaS ARR 2 Non-GAAP Gross Margin 1 % Non-GAAP Operating Margin 1 % Net Cash 4 24% 168 53 SaaS ARR 2 36% Large $1M+ Customers Total Managed Recurring Revenue 3 (Over

  6. Slide 6: Major Vertical Bookings Contribution in FY25

    MAJOR VERTICAL BOOKINGS CONTRIBUTION IN FY25 Relative Bookings Strength in Government, K-12 Education, Manufacturing, and Health Care Government & Education Manufacturing Healthcare ~40% ~10% ~10% Hospitality & Venues Retail & Transportation Service Provider ~10% ~10% ~5% © EXTREME NETWORKS, INC. AL

  7. Slide 7: Financial Highlights

    FINANCIAL HIGHLIGHTS (IN $M’S EXCEPT PERCENTAGES AND EPS) GAAP Non-GAAP 4Q24 3Q25 4Q25 FY24 FY25 4Q241 3Q25 4Q25 FY241 FY25 Product Revenue $152.8 $178.1 $191.9 $699.3 $704.5 $152.8 $178.1 $191.9 $699.3 $704.5 Subscription & Support Revenue $103.9 $106.4 $115.1 $417.9 $435.6 $103.9 $106.4 $115.1 $41

  8. Slide 8: Quarterly Revenue Results

    QUARTERLY REVENUE RESULTS (IN $M’S EXCEPT PERCENTAGES ) Total Revenue $353 $307 $296 28% $279 $285 $269 $257 37% 37% $211 38% 37% 40% 40% 50% 72% 63% 63% 63% 60% 62% 60% 50% 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 Product Revenue Subscription & Support Revenue © EXTREME NETWORKS, INC. ALL RIGHTS RES

  9. Slide 9: Quarterly Gross Profit and Margin

    QUARTERLY GROSS PROFIT AND MARGIN (IN $M’S EXCEPT PERCENTAGES) Gross Profit - GAAP Gross Profit - Adjusted Results 1 $250 100.0%$250 100.0% $226 $213 90.0% $191 90.0% $200 $183 $189 $200 $185 $175 $175 $171 $177 $177 $170 $163 80.0% 80.0% $150 $150 $129 $120 $115 70.0% 70.0% 64.1% 63.5% 63.7% 63.4%

  10. Slide 10: Quarterly Operating Expense and Margin

    QUARTERLY OPERATING EXPENSE AND MARGIN (IN $M’S EXCEPT PERCENTAGES) Operating Expenses - GAAP Operating Expenses - Adjusted Results 1 $250 $250 80.0% 140.0% 70.0% 120.0% $200 $191 $200 60.0% $177 $182 $173 $174 100.0% $164 $162 $165 50.0% $153 $147 80.0% $141 $144 $150 $150 $138 $136 $137 40.0% $128

  11. Slide 11: Quarterly EPS

    QUARTERLY EPS EPS - GAAP EPS - Adjusted Results 1 $0.40 $0.60 $0.30 $0.41 $0.21 $0.40 $0.20 $0.24 $0.25 $0.10 $0.06 $0.19 $0.17 $0.21 $0.21 $0.03 $0.03 $0.20 $- $(0.10) $(0.06) $- $(0.08) $(0.20) $(0.20) $(0.14) $(0.30) $(0.40) $(0.40) $(0.50) $(0.42) $(0.50) $(0.60) $(0.60) 1Q24 2Q24 3Q24 4Q24 1Q25

  12. Slide 12: FY25 Revenue by Geography

    FY25 REVENUE BY GEOGRAPHY (IN $M’S EXCEPT PERCENTAGES) AMERICAS EMEA APAC $597M $452M $92M 52% of Revenue 40% of Revenue 8% of Revenue © EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 12

  13. Slide 13: Financial Highlights – Balance Sheet

    FINANCIAL HIGHLIGHTS – BALANCE SHEET (IN $M’S ) Balance Sheet Highlights 4Q24 3Q25 4Q25 Cash and Cash Equivalents $156.7 $185.5 $231.7 Accounts Receivable $89.5 $99.5 $126.7 Inventories $141.0 $115.7 $102.6 Accounts Payable $51.4 $47.1 $63.9 Gross Debt 1 $190.0 $182.5 $180.0 Net Cash (Debt) 2 ($33.3

  14. Slide 14: Free Cash Flow

    FREE CASH FLOW (IN $M’S) Extreme uses the free cash flow metric as a measure of operating performance. Free cash flow represents GAAP net cash provided by (used in) operating activities, less capital expenditures for purchases of property, equipment and capitalized software development costs. Extrem

  15. Slide 15: SaaS ARR Continues to Grow

    SaaS ARR CONTINUES TO GROW (IN $M’S) SaaS ARR 1 $208 $181 $184 $174 $162 $167 $158 $141 YoY Growth 30% 38% 38% 29% 23% 14% 13% 24% 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1 Extreme uses SaaS annual recurring revenue (“SaaS ARR”) to identify the annual recurring revenue of ExtremeCloud IQ (XIQ) and o

  16. Slide 16: Stable Recurring Revenue

    STABLE RECURRING REVENUE (IN $M’S) Recurring Revenue 1 $115 100% $110 $109 90% 80% $105 $103 $103 $101 $100 $101 $101 70% $100 60% $95 47% $95 50% 39% 38% 37% 35% 36% $90 34% 40% 27% 30% $85 20% $80 10% $75 0% 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 Recurring Revenue as % of Total Revenue 1 Recurrin

  17. Slide 17: Deferred Recurring Revenue - Rising

    DEFERRED RECURRING REVENUE - RISING (IN $M’S) Deferred Recurring Revenue 1 $606 $562 $575 $578 $539 $557 $525 $533 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 Support Deferred Revenue SaaS Deferred Revenue 2 1 Deferred Recurring Revenue - refers to the ending quarterly balance of advance payments receiv

  18. Slide 18: 1Q26 Financial Guidance

    1Q26 FINANCIAL GUIDANCE © EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 18

  19. Slide 19: 1Q26 Guidance

    1Q26 GUIDANCE (IN $M’S EXCEPT PERCENTAGES AND EPS) Non-GAAP 1 GAAP Non-GAAP 1 4Q25 1Q26 1Q26 Revenue ($M) $307.0 $292.0 – $300.0 $292.0 – $300.0 Gross Margin % 62.3% 61.1% – 61.6% 61.9% – 62.3% Operating Margin % 15.2% 0.2% – 2.2% 12.7% – 14.5% EPS $0.25 ($0.03) – $0.02 $0.20 – $0.23 1See slides 26-

  20. Slide 20: FY26 Guidance

    FY26 GUIDANCE (IN $M’S) FY25 FY26 Revenue ($M) $1,140 $1,228 – $1,238 © EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 20

  21. Slide 21: 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. © EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 21

  22. Slide 22: Supplemental Information: GAAP to Adjusted Results

    SUPPLEMENTAL INFORMATION: GAAP TO ADJUSTED RESULTS (IN $M’S 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 million during fiscal 2024. The quarterly split was as follows: 1Q24: $10.5m, 3Q24: $7.5

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

    NON-GAAP QUARTERLY RESULTS OF OPERATIONS (IN $M’S EXCEPT PERCENTAGES) Gross Profit - Non-GAAP 1 $250 100.0% $216 90.0% $200 $191 $185 $177 $177 $171 80.0% $150 $122 $116 70.0% 62.5% 63.4% 62.3% $100 61.1% 57.6% 63.7% 62.3% 60.0% $50 50.0% 45.4% - 40.0% 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 Product

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

    NON-GAAP QUARTERLY RESULTS OF OPERATIONS (IN $M’S EXCEPT PERCENTAGES) Operating Expenses - Non-GAAP 1 $180 140.0% $160 $153 $147 $144 $141 120.0% $138 $136 $137 $140 $128 100.0% $120 80.0% $100 60.0% $80 40.0% 17.7% 14.8% 14.7% 15.2% $60 12.4% 14.1% 20.0% $40 (4.6%) (12.2%) 0.0% $20 (20.0%) - (40.0%

  25. Slide 25: Non-GAAP Quarterly Results of Operations

    NON-GAAP QUARTERLY RESULTS OF OPERATIONS EPS - Non-GAAP 1 $0.40 $0.35 $0.30 $0.24 $0.25 $0.21 $0.21 $0.20 $0.17 $0.10 $- $(0.10) $(0.08) $(0.20) $(0.19) $(0.30) 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1 See slides 26-30 for GAAP to Non-GAAP reconciliation. © EXTREME NETWORKS, INC. ALL RIGHTS RESERVE

  26. Slide 26: GAAP to Non-GAAP Reconciliations – Gross Margin

    GAAP TO NON-GAAP RECONCILIATIONS – GROSS MARGIN (IN $M’S EXCEPT PERCENTAGES) 4Q24 3Q25 4Q25 FY24 FY25 Product Revenue $152.8 $178.1 $191.9 $699.3 $704.5 Subscription & Support Revenue 103.9 106.4 115.1 417.9 435.6 Total Revenue - GAAP $256.7 $284.5 $307.0 $1,117.2 $1,140.1 Gross Margin - GAAP 114.6

  27. Slide 27: GAAP to Non-GAAP Reconciliations – Operating Income (Loss)

    GAAP TO NON-GAAP RECONCILIATIONS – OPERATING INCOME (LOSS) (IN $M’S EXCEPT PERCENTAGES) 4Q24 3Q25 4Q25 FY24 FY25 Operating Income (Loss) - GAAP ($48.9) $10.4 ($1.4) ($65.2) $17.0 Operating Margin - GAAP (19.1%) 3.6% (0.4%) (5.8%) 1.5% Amortization of Intangibles, COGS 0.6 0.6 0.6 3.2 2.4 Share-Based

  28. Slide 28: GAAP to Non-GAAP Reconciliations – Net Income (Loss)

    GAAP TO NON-GAAP RECONCILIATIONS – NET INCOME (LOSS) (IN $M’S EXCEPT EPS) 4Q24 3Q25 4Q25 FY24 FY25 Net Income (Loss) - GAAP ($54.2) $3.5 ($7.8) ($86.0) ($7.5) Shares – GAAP (Basic) / Diluted 130.1 134.6 132.8 129.3 132.3 EPS - GAAP ($0.42) $0.03 ($0.06) ($0.66) ($0.06) Amortization of Intangibles, C

  29. Slide 29: EBITDA Reconciliation

    EBITDA RECONCILIATION (IN $M’S) 4Q24 3Q25 4Q25 FY24 FY25 Net Income (Loss) - GAAP ($54.2) $3.5 ($7.8) ($86.0) ($7.5) Interest 3.6 2.8 1.9 12.5 11.6 Provision for Income Taxes 1.5 3.7 3.9 8.4 11.7 Depreciation/Amortization 11.3 4.5 4.6 29.5 19.2 EBITDA ($37.8) $14.5 $2.6 ($35.6) $35.0 Net Non-GAAP Ad

  30. Slide 30: GAAP to Non-GAAP Reconciliations – 1Q26 Guidance

    GAAP TO NON-GAAP RECONCILIATIONS – 1Q26 GUIDANCE Gross Margin Operating Margin Earnings Rate Rate per Share GAAP 61.1% - 61.6% 0.2% - 2.2% ($0.03) - $0.02 Estimated Adjustments for: Share-Based Compensation 0.5% - 0.6% 7.2% - 7.4% 0.16 - 0.17 Amortization of Product Intangibles 0.2% 0.2% – Amortizat

  31. Slide 31: © EXTREME NETWORKS, INC. ALL RIGHTS RESERVED.

    © EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 31

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