Extreme Networks, Inc. · NASDAQ:EXTR

Extreme Networks — Q2 2026 Earnings Presentation

31 slides from Extreme Networks's earnings presentation, Jan 28, 2026

  1. Slide 1: 2Q26 Financial Results

    2Q26 Financial Results January 28, 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: 2Q26 Financial Results

    2Q26 FINANCIAL RESULTS ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 3

  4. Slide 4: 2Q26 Results Summary

    2Q26 RESULTS SUMMARY • 7 th Consecutive Quarter of Sequential Growth in Revenue Bookings and • Strong YoY Revenue Growth Across All Regions Revenue Trends • Recurring Revenue 1 of $115M up 12% YoY • SaaS ARR 2 of $227M , Up 25% YoY Cloud SaaS • Extreme Platform ONE Bookings Ahead of Expectations Sub

  5. Slide 5: 2Q26 Highlights

    2Q26 HIGHLIGHTS Total Revenue Non - GAAP Gross Profit 1 Non - GAAP EPS 1 Adjusted EBITDA 1 $318M $197M $0.26 $52M $227M 62.0% 15.0% $47M Non - GAAP Gross Margin 1% 1% SaaS ARR 2 Non - GAAP Operating Margin Net Cash 4 25% 34 65 SaaS ARR 2 36% $1M+ Customers Total Managed Recurring Revenue 3 (Growth Y

  6. Slide 6: Financial Highlights

    FINANCIAL HIGHLIGHTS (IN $M EXCEPT PERCENTAGES AND EPS) GAAP Non - GAAP 1 2Q25 1Q26 2Q26 2Q25 1Q26 2Q26 Product Revenue $172.3 $194.0 $197.8 $172.3 $194.0 $197.8 Subscription & Support Revenue $107.1 $116.2 $120.2 $107.1 $116.2 $120.2 Total Revenue $279.4 $310.2 $318.0 $279.4 $310.2 $318.0 Total GM

  7. Slide 7: Quarterly Revenue Results

    QUARTERLY REVENUE RESULTS (IN $M EXCEPT PERCENTAGES) Total Revenue $310 $318 $307 $279 $285 $269 $257 37% 37% 38% $211 38% 37% 40% 40% 50% 63% 63% 62% 60% 62% 63% 60% 50% 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 1 Product Revenue Subscription & Support Revenue 1 Subscription and Support revenue inclu

  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 90.0% $191 $197 90.0% $200 $189 $188 $200 $190 $175 $175 $171 $177 $177 $170 $163 80.0% 80.0% $150 $150 $129 $120 $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 $147 $149 $149 $182 $177 $182 30.0% $160 $144 $174 $138 $136 $137 28.0% $164 $162 $165 $140 $128 20.0% $150 15.2% 13.5% 12.4%

  10. Slide 10: Quarterly EPS

    QUARTERLY EPS EPS - GAAP EPS - Adjusted Results 1 $0.25 $0.26 $0.21 $0.21 $0.22 $0.19 $0.17 $0.06 $0.04 $0.06 $0.03 $(0.08) $(0.06) $(0.14) $(0.42) $(0.50) 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 1 Adjusted Results exclude the Non - GAAP adjustments and the ad

  11. Slide 11: 2Q26 Revenue by Geography

    2Q26 REVENUE BY GEOGRAPHY (IN $M EXCEPT PERCENTAGES) AMERICAS EMEA APAC $148M $140M $29M 47% of Revenue 44% of Revenue 9% 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 2Q25 1Q26 2Q26 Cash and Cash Equivalents $170.3 $209.0 $219.8 Accounts Receivable $117.6 $145.8 $152.4 Inventories $132.3 $93.7 $83.6 Accounts Payable $52.4 $77.8 $64.8 1 Gross Debt $185.0 $201.2 $172.5 2 Net Cash (Debt) ($14.7) $

  13. Slide 13: Free Cash Flow

    FREE CASH FLOW (IN $M) Free Cash Flow $75 Free Cash Flow 2Q25 1Q26 2Q26 $43 Operating Cash Flow $21.5 ($14.0) $50.1 $16 $24 $11 $12 PP&E Capital Expenditures (5.4) (6.9) (7.1) Free Cash Flow $16.1 ($20.9) $43.0 ($21) Share Repurchases $0.0 $12.0 $0.0 ($74) 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Ext

  14. Slide 14: SaaS ARR

    SaaS ARR (IN $M EXCEPT PERCENTAGES) SaaS ARR 1 $240 $227 $220 $216 $208 $200 $181 $184 $180 $174 $167 $162 $160 $140 YoY Growth 38% 29% 23% 14% 13% 24% 24% 25% $120 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 1 Extreme uses SaaS annual recurring revenue (“SaaS ARR”) to identify the annual recurring reve

  15. Slide 15: Recurring Revenue

    RECURRING REVENUE (IN $M EXCEPT PERCENTAGES) Recurring Revenue 1 $115 $115 115% $111 105% $110 $109 95% 85% $105 $103 $103 75% $101 $101 $100 65% $100 47% 55% $95 39% 38% 37% 45% 35% 36% 36% 36% 35% $90 25% 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Recurring Revenue as % of Total Revenue 1 Recurring R

  16. Slide 16: Deferred Recurring Revenue

    DEFERRED RECURRING REVENUE (IN $M EXCEPT PERCENTAGES) Deferred Recurring Revenue 1 $628 70% $618 $606 $600 $575 $578 65% $557 $562 $550 $539 60% 53% 53% 55% 50% 50% 51% $500 49% 50% $450 48% 48% 45% $400 40% 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 2 Deferred Recurring Revenue SaaS % 1 Deferred Recur

  17. Slide 17: 3Q26 Financial Guidance

    3Q26 FINANCIAL GUIDANCE ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 17

  18. Slide 18: 3Q26 Guidance

    3Q26 GUIDANCE (IN $M EXCEPT PERCENTAGES AND EPS) GAAP Non - GAAP 1 3Q26 3Q26 Revenue ($M) $309.1 - $314.1 $309.1 - $314.1 Gross Margin % 60.4% - 60.8% 61.0% - 61.4% Operating Margin % 2.8% - 4.1% 13.6% - 14.8% EPS $0.03 - $0.06 $0.23 - $0.25 1 See Appendices for GAAP to Non - GAAP reconciliation . ©

  19. Slide 19: FY26 Guidance

    FY26 GUIDANCE (IN $M EXCEPT PERCENTAGES AND EPS) GAAP Non - GAAP 1 FY26 FY26 Revenue ($M) $1,262 - $1,270 $1,262 - $1,270 Gross Margin % 60.5% - 61.1% 61.1%- 61.7% Operating Margin % 4.1% - 4.6% 14.3% - 14.8% EPS $0.24 - $0.29 $0.98 - $1.02 1 See 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 90.0% $200 $190 $171 $177 $177 80.0% $150 $122 $116 70.0% 63.7% 63.4% 62.3% 62.3% $100 61.3% 62.0% 57.6% 60.0% $50 50.0% 45.4% - 40.0% 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 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 $147 $144 $149 $149 $138 $136 $137 25.0% $140 $128 14.7% 14.1% 15.2% 15.0% $120 12.4% 13.3% 15.0% $100 $80 5.0% $60 (4.6%) $40 (5.0%) $20 (12.2%) - (15.0%) 3Q24 4Q24 1Q25 2Q25

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

    NON - GAAP QUARTERLY RESULTS OF OPERATIONS EPS - Non - GAAP 1 $0.25 $0.26 $0.21 $0.21 $0.22 $0.17 $(0.08) $(0.19) 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 1 See slides 25 - 30 for GAAP to Non - GAAP reconciliation . ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 24

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

    GAAP TO NON - GAAP RECONCILIATIONS – GROSS MARGIN (IN $M EXCEPT PERCENTAGES) 2Q25 1Q26 2Q26 Product Revenue $172.3 $194.0 $197.8 Subscription & Support Revenue 107.1 116.2 120.2 Total Revenue - GAAP $279.4 $310.2 $318.0 Gross Margin - GAAP 175.1 188.0 195.1 Gross Margin % - GAAP 62.7% 60.6% 61.4% Am

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

    GAAP TO NON - GAAP RECONCILIATIONS – OPERATING INCOME (IN $M EXCEPT PERCENTAGES) 2Q25 1Q26 2Q26 Operating Income - GAAP $12.7 $11.3 $13.0 Operating Margin - GAAP 4.5% 3.6% 4.1% Amortization of Intangibles 1.1 1.1 0.7 Share - Based Compensation, Total 21.5 21.8 22.9 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) 2Q25 1Q26 2Q26 Net Income - GAAP $7.4 $5.6 $7.9 Diluted Shares 134.1 135.1 135.2 EPS - GAAP $0.06 $0.04 $0.06 Amortization of Intangibles 1.1 1.1 0.7 Share - Based Compensation, Total 21.5 21.8 22.9 Restructuring and Related Charges

  28. Slide 28: Adjusted EBITDA Reconciliation

    ADJUSTED EBITDA RECONCILIATION (IN $M) 2Q25 1Q26 2Q26 Net Income - GAAP $7.4 $5.6 $7.9 Depreciation 3.9 3.8 4.0 Amortization 1.1 1.1 1.8 Share - Based Compensation 21.5 21.8 22.9 Restructuring and Related Charges 1.0 0.4 0.2 System Transition Costs 4.0 4.9 6.5 Litigation Costs 0.9 1.9 0.8 Other Non

  29. Slide 29: GAAP to Non-GAAP Reconciliations – 3Q26 Guidance

    GAAP TO NON - GAAP RECONCILIATIONS – 3Q26 GUIDANCE Gross Margin Operating Margin Earnings Rate Rate per Share GAAP 60.4% - 60.8% 2.8% - 4.1% $0.03 - $0.06 Estimated Adjustments for: Share - Based Compensation 0.5% 7.3% - 7.4% 0.17 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 60.5% - 61.1% 4.1% - 4.6% $0.24 - $0.29 Estimated Adjustments for: Share - Based Compensation 0.5% 7.2% 0.67 Amortization of Product Intangibles 0.1% 0.1% 0.01 Amortization of Non - pro

  31. Slide 31: ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED.

    31 ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED.

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