Extreme Networks, Inc. · NASDAQ:EXTR
Extreme Networks — Q4 2026 Earnings Presentation
68 slides from Extreme Networks's earnings presentation, Aug 5, 2026
Slide 1: Extreme Networks Corporate & Financial Overview
Extreme Networks Corporate & Financial Overview ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 1
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
Slide 3: Powering Innovation and Progress for More Than 25 Years
Powering Innovation and Progress for More Than 25 Years $1.1B+ 1,000+ Founded in 1996 in In Annual Patents SILICON VALLEY, CA Revenue Ecosystem of 2,800+ 11,000 + 9. 5 Customer Satisfaction Employees Score Channel Partners More Than Tens of Thousands of Customers 80 Countries ©2026 EXTREME NETWORKS,
Slide 4: Trusted by the World's Most Demanding Networks
Trusted by the World’s Most Demanding Networks L argest S tock Shaping the Leading Exchange in Skyline Hospitals the World DUBAI WORLD TRADE NHS, CHARITE, HABIB NYSE CENTER, BURJ KHALIFA MEDICAL, ZOL Manufacturers Smart Cities Shipping & SKODA, VW, JOHN DEERE, BORAS STAD, SWEDEN Logistics SAMSUNG, L
Slide 5: Winning Upmarket Across Verticals
Winning Upmarket Across Verticals Government Education Healthcare Manufacturing Retail Sports & Venues Transportation ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 5
Slide 6: Extreme is Set up for Success
Extreme is Set up for Success Strengthening Quality Technology Favorable Attractive Winning Industry of Execution: Differentiation Competitive Financial Upmarket Fundamentals Taking Share and Innovation Landscape Outlook ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 6
Slide 7: Financial Success Factors
Financial Success Factors $1.275 - 1.280B $630M $214M Revenue Forecast Deferred Recurring Annualized EBITDA FY26 Revenue $236M 36% 24% 29% YoY Growth in SaaS ARR Recurring Revenue % YoY EPS Growth in 3Q26 ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 7
Slide 8: Leader in AI-Powered WLAN Technology Adoption
Strengthening Industry Fundamentals Leader in AI - Powered WLAN Technology Adoption Networking 100% Wi- Fi 7 Share of Indoor AP Shipments (%) Wi- Fi 6 Growth Across 50% All GE0s/Verticals Wi- Fi 5 W2 Wi- Fi 6E Network 0% Refresh Cycle Year of New Technology Introduction Source: Dell’Oro Group WLAN F
Slide 9: Leading In Enterprise Networking
Leading In Enterprise Networking ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 9
Slide 10: Driving Extreme Innovation in Networking
Driving Extreme Innovation in Networking AI - Powered Secure Connectivity Networking Cloud First to deliver Platform Networking Universal ZTNA Leading innovator of cloud managed Universal enterprise networking. Acquired Aerohive, the pioneer of cloud Hardware networking Reduced risk, First to offer
Slide 11: Platformization: The Value to the Company
Platformization : The Value to the Company Improved customer Gross margin lifetime value Scalable expansion through through platform innovation through Stronger recurring software mix shift stickiness shared data and a Larger share of wallet revenue base and unified AI engine through a unified highe
Slide 12: An Integrated Portfolio That Drives Value
An Integrated Portfolio That Drives Value Extreme Platform ONE for AI - Powered Networking Extreme Fabric over Wired, Wireless, and SD - WAN Network Automation Branch Campus Data Center IoT IoT ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 12
Slide 13: Extreme Fabric – The Only Fabric Built for Enterprises
Extreme Fabric – The Only Fabric Built for Enterprises • Enterprise wide reach – Data centers, campus and branch CAMPUS BRANCH • 90% less operational complexity STEALTH CORE • 10K+ deployments across all GEOs DATA CENTER and all verticals ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 13
Slide 14: The King of Complex Wi-Fi
“The King of Complex Wi - Fi” Broadest WiFi6E & WiFi7 portfolio: Entry, Mid - Tier, Premium Tier, indoor to outdoor AI - Powered Optimization and Troubleshooting Architecture Agnostic 100+ Venues across the world 5G-LTE and Wi-Fi Carrier Offload ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 14
Slide 15: Expanded Wi-Fi Portfolio
Expanded Wi - Fi Portfolio Shipping NEW NEW Today! 5020 & 4000 Series 5022 & 5060 Series 3020 & 3060 Series Leading the charge on Wi - Fi 7 and High performance high density Entry level indoor/outdoor 6ghz deployments indoor and outdoor and wall plate ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED
Slide 16: Expanded Wired Portfolio
Expanded Wired Portfolio Shipping Shipping Coming Now! Now! Soon! 4000, 5000 & 7000 5420M Universal Universal Ruggedized Series Universal 48 port mixed media / Industrial Switches Switches 7830 Interface Modules for Fabric Branch to campus to data center 24x100 GbE access aggregation and core 8x400
Slide 17: Inclusive Subscription Program Makes Extreme Platform ONE Easy to Buy
Inclusive Subscription Program Makes Extreme Platform ONE Easy to Buy, Renew, and Grow Inventory AI, Networking, Fabric, Lifecycle Support loT Management and More Complex, fragmented Networking licensing Analytics Technical / Operating System AI ZTNA Support NAC The standard bill of materials ©2026
Slide 18: The Broadest Range of AI Capabilities
The Broadest Range of AI Capabilities AI Expert Conversational AI Canvas AI Agents Multimodal Autonomous with HITL Conceptual AI Core ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 18
Slide 19: What Are Customers Saying?
What Are Customers Saying? ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 19
Slide 20: Slash Network Incidents
Slash Network Incidents Extreme Reliability Reduced support tickets by 80% across 20+ medical offices. ©2026 EXTREME NETWORKS, INC. ALL RIGHTS 20 RESERVED.
Slide 21: Segmentation Simplified
Segmentation Simplified Extreme Simplification Sped up configuration time for creating new secure network segments from days to hours. ©2026 EXTREME NETWORKS, INC. ALL RIGHTS 21 RESERVED.
Slide 22: Reduce Change Cycles
Reduce Change Cycles Extreme Agility Cut time spent on upgrades and network changes by 80%. ©2026 EXTREME NETWORKS, INC. ALL RIGHTS 22 RESERVED.
Slide 23: Scaling Events with Precision
Scaling Events with Precision Extreme Automation Supports 500+ events with up to 3,300 isolated network segments for up to 6,000 exhibitors and 180,000 guests at one time. ©2026 EXTREME NETWORKS, INC. ALL RIGHTS 23 RESERVED.
Slide 24: Enhances Shopping Experiences
Enhances Shopping Experiences Extreme Scale Implemented the world's largest cloud - managed network at 10,000+ APs , upgraded to Extreme to improve in - store experience. ©2026 EXTREME NETWORKS, INC. ALL RIGHTS 24 RESERVED.
Slide 25: Strategic Opportunities
Strategic Opportunities ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 25
Slide 26: Extreme Is Well-Positioned in Cloud-Managed Campus Networking
Extreme Is Well - Positioned in Cloud - Managed Campus Networking Cloud - Managed Campus Networking Subscription TAM Top 3 Cloud - Managed Services Vendor $4 B 10% Cloud - Managed Services Share $2 B 2X Market SaaS ARR Growth $0 B 2025 2026 2027 2028 2029 2030 Source: 650 Group, Unified Access Q4 20
Slide 27: The Next Opportunity: AI Networking for Campus
The Next Opportunity: AI Networking for Campus Campus Networking TAM (Wired & Wireless) $37B 72% $29B AI Networking for Campus Market CAGR 2024 2025 2026 2027 2028 2029 AI Non-AI Source: 650 Group AI Networking (Campus) Q1/Q2 2025 reports & Unified Access Q1 2025 report; CAGR is CY24 - CY29 ©2026 EX
Slide 28: Flexible Commercial Models
Flexible Commercial Models High Upfront Cost ▪ CAPEX weighted / enables MRR ▪ CAPEX weighted / lower ARR ▪ Partner Managed (MSP) ▪ Customer self - managed ▪ Partners owns SW title / Cust HW ▪ Customer owns HW/SW title ▪ MSP VAR sourced ▪ Traditional VAR sourced MSP Traditional Hybrid CAPEX Low Custo
Slide 29: Market Opportunity in Regulated Industries
Market Opportunity in Regulated Industries Public Sector & Highly Regulated Industries Sovereign Cloud opportunity Certified Campus Fabric Product Portfolio and regulated industries • Customers require private cloud and AI with certified • Japanese Government – Campus Fabric and Sovereign Cloud solu
Slide 30: 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 RIGHT
Slide 31: 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
Slide 32: 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% 51% $500 49% 50% $450 50% 48% 45% $400 40% 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 2 Deferred Recurring Revenue SaaS Deferred Revenue %
Slide 33: 3Q26 Financial Results
3Q26 Financial Results ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 33
Slide 34: 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
Slide 35: 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% $1M+ Customers Total Managed Recurring Reve
Slide 36: 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
Slide 37: 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
Slide 38: 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
Slide 39: 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%
Slide 40: Quarterly EPS
Quarterly EPS EPS - GAAP EPS - Adjusted Results 1 $0.25 $0.26 $0.26 $0.21 $0.21 $0.22 $0.19 $0.17 $0.06 $0.06 $0.08 $0.03 $0.04 $(0.08) $(0.06) $(0.42) 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 1Adjusted Results exclude the Non - GAAP adjustments and the additio
Slide 41: 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. 41
Slide 42: 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
Slide 43: 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
Slide 44: Growth Outlook
Growth Outlook ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 44
Slide 45: Flexible Commercial Models To Meet Customer Needs
Flexible Commercial Models To Meet Customer Needs Multiple Commercial Offers to Meet Customer Needs Focused on ARR Growth Managed Service Provider (MSP) 61 MSP Partners with Bookings Up 2x YoY For outsourced IT, with consumption billing Extreme Subscription Private Offer (ESPO) Unique Industry Offer
Slide 46: Revenue Growth Targets
Share Gains and Subscription Revenue Support Double Digit Revenue Growth Double Digit Revenue CAGR Revenue Growth Targets Subscription Product and Support 7- 9% 12- 14% Overall 10%+ FY25A FY26E FY27E FY28E FY29E ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 46
Slide 47: Financial Impact of Platformization
Financial Impact of Platformization Subscription & Support Separate Extreme Platform ONE Subscription + Support Combined 65 - 70% Subscription Attach Rate 95%+ Platform Attach Rate 90 - 95% Subscription Renewal Rate + 10- 15% ACV Uplift 65 - 70% Support Attach Rate 95%+ Renewal Rate 70 - 75% Support
Slide 48: Subscription ARR Growth Driven By Extreme Platform ONE
Subscription ARR Growth Driven By Extreme Platform ONE Target of $650M By FY29 $650M+ Extreme Platform ONE ExtremeCloud IQ $208M FY25A FY26E FY27E FY28E FY29E ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 48
Slide 49: Subscription Revenue to Exceed 80% of Recurring Revenue By FY29
Subscription Revenue to Exceed 80% of Recurring Revenue By FY29 $650M+ $412M FY25A FY26E FY27E FY28E FY29E Subscription Support ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 49
Slide 50: Recurring Revenue to Continue to Rise
Recurring Revenue to Continue to Rise 41% Recurring revenue 39% expands from 36% of total revenue in FY25 to 37% 41% in FY29 36% 36% FY25A FY26E FY27E FY28E FY29E Recurring Revenue as % of Total Revenue ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 50
Slide 51: Generating Strong Free Cash Flow and EBITDA
Generating Strong Free Cash Flow and EBITDA 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% FY25A FY26E * FY27E FY28E FY29E FY25A FY26E FY27E FY28E FY29E Free Cash Flow FCF Margin Non GAAP EBITDA EBITDA % Margin 1S ee Appendices for definitions of metrics & KPIs. FCF Margin = Free Cash Flow / Revenue ©2
Slide 52: Strong Outlook For Operating Leverage
Strong Outlook For Operating Leverage P&L LINE COMMENTARY LONG - TERM TARGET • Supply chain cost improvements Gross Margin • Mix shift to higher margin subscription business 64 – 66 % Research and • R&D investments in new AI - related products and Development solutions 15 – 17% Sales and • Expanding
Slide 53: 4Q26 and FY26 Financial Guidance
4Q26 and FY26 Financial Guidance ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 53
Slide 54: 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
Slide 55: 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
Slide 56: 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. 56
Slide 57: 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
Slide 58: 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
Slide 59: 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
Slide 60: 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 1 See slides 61- 66 for GAAP to Non - GAAP reconciliation. ©2026 EXTREME NETWORKS, INC. ALL RIGHT
Slide 61: 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
Slide 62: 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
Slide 63: 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
Slide 64: 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
Slide 65: 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
Slide 66: 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
Slide 67: 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
Slide 68: f= Extreme
f= Extreme networks