Extreme Networks, Inc. · NASDAQ:EXTR

Extreme Networks — Q3 2025 Earnings Presentation

30 slides from Extreme Networks's earnings presentation, Apr 30, 2025

  1. Slide 1: 3Q25 Financial Results

    3Q25 Financial Results April 30, 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), su

  3. Slide 3: 3Q25 Financial Results

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

  4. Slide 4: 3Q25 Results Summary

    3Q25 RESULTS SUMMARY • Sequential Growth in Revenue Led by 21% Growth in Americas Bookings and • Sequential Growth in Product Revenue Revenue Trends • Stable Recurring Revenue 2 of $101M Cloud SaaS • SaaS ARR 1 of $184M, Up 13% Y/Y Subscriptions and • Strong Double-Digit Growth in New Subscription B

  5. Slide 5: 3Q25 Highlights

    3Q25 HIGHLIGHTS Total Revenue Non-GAAP Gross Profit 1 Non-GAAP EPS 1 $ Free Cash Flow 5 $285M $177M $0.21 $24M $184M 62.3% 14.1% $3M SaaS ARR 2 Non-GAAP Gross Margin 1 % Non-GAAP Operating Margin 1 % Net Cash 4 13% 40 48 SaaS ARR 2 35% Large $1M+ Customers Total Managed Recurring Revenue 3 (Over $1M

  6. Slide 6: Financial Highlights

    FINANCIAL HIGHLIGHTS (IN $M’S EXCEPT PERCENTAGES AND EPS) GAAP Non-GAAP1 3Q24 2Q25 3Q25 3Q24 2Q25 3Q25 Product Revenue $106.4 $172.3 $178.1 $106.4 $172.3 $178.1 Subscription & Support Revenue $104.6 $107.1 $106.4 $104.6 $107.1 $106.4 Total Revenue $211.0 $279.4 $284.5 $211.0 $279.4 $284.5 Total GM %

  7. Slide 7: Quarterly Revenue Results

    QUARTERLY REVENUE RESULTS (IN $M’S EXCEPT PERCENTAGES ) Total Revenue $364 $353 28% $296 28% $279 $285 $269 $257 37% $211 38% 37% 40% 40% 50% 72% 72% 63% 62% 63% 60% 60% 50% 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Product Revenue Subscription & Support Revenue © EXTREME NETWORKS, INC. ALL RIGHTS RES

  8. Slide 8: Quarterly Gross Profit and Margin

    QUARTERLY GROSS PROFIT AND MARGIN (IN $M’S EXCEPT PERCENTAGES) Gross Profit - GAAP Gross Profit - Non-GAAP 1 $250 100.0% $250 100.0% $214 $213 $219 $216 90.0% 90.0% $200 $183 $200 $185 $175 $175 $171 $177 $177 $170 80.0% 80.0% $150 $150 $120 $122 $116 $115 70.0% 70.0% 63.0% 62.5% 63.7% 61.9% 61.7% 6

  9. Slide 9: Quarterly Operating Expense and Margin

    QUARTERLY OPERATING EXPENSE AND MARGIN (IN $M’S EXCEPT PERCENTAGES) Operating Expenses - GAAP Operating Expenses - Non-GAAP 1 $200 $180 $182 $177 $177 $173 $174 140.0% $156 140.0% $180 $165 $160 $153 $164 $162 $147 120.0% $141 $138 $137 120.0% $160 $136 $140 $128 100.0% 100.0% $140 $120 80.0% 80.0%

  10. Slide 10: Quarterly EPS

    QUARTERLY EPS EPS - GAAP EPS - Non-GAAP 1 $0.33 $0.35 $0.40 $0.40 $0.30 $0.30 $0.24 $0.19 $0.21 $0.17 $0.21 $0.21 $0.20 $0.20 $0.10 $0.06 $0.10 $0.03 $0.03 $- $- $(0.10) $(0.10) $(0.08) $(0.08) $(0.20) $(0.20) $(0.19) $(0.30) $(0.30) $(0.40) $(0.40) $(0.42) $(0.50) $(0.50) $(0.50) $(0.60) $(0.60) 4Q

  11. Slide 11: 3Q25 Revenue by Geography

    3Q25 REVENUE BY GEOGRAPHY (IN $M’S EXCEPT PERCENTAGES) AMERICAS EMEA APAC $160M $107M $18M 56% of Revenue 38% of Revenue 6% of Revenue © EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 11

  12. Slide 12: Financial Highlights – Balance Sheet

    FINANCIAL HIGHLIGHTS – BALANCE SHEET (IN $M’S ) Balance Sheet Highlights 3Q24 2Q25 3Q25 Cash and Cash Equivalents $151.0 $170.3 $185.5 Accounts Receivable $94.4 $117.6 $99.5 Inventories $185.4 $132.3 $115.7 Accounts Payable $81.5 $52.4 $47.1 Gross Debt 1 $192.5 $185.0 $182.5 Net Cash (Debt) 2 ($41.5

  13. Slide 13: 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 and equipment and capitalized software development costs. Ext

  14. Slide 14: SaaS ARR Continues to Grow

    SaaS ARR CONTINUES TO GROW (IN $M’S) SaaS ARR 1 $181 $184 $174 $162 $167 $158 $141 $129 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 1 Extreme uses SaaS annual recurring revenue (“SaaS ARR”) to identify the annual recurring revenue of ExtremeCloud IQ (XIQ) and other subscription revenue, based on the ann

  15. Slide 15: Stable Recurring Revenue

    STABLE RECURRING REVENUE (IN $M’S) Recurring Revenue 1 $105 100% $103 $103 $101 $101 $101 90% $100 $100 80% $95 70% $95 $93 60% $90 47% 50% 39% 38% 37% 35% 40% 34% $85 26% 27% 30% 20% $80 10% $75 0% 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Recurring Revenue as % of Total Revenue 1 Recurring Revenue i

  16. Slide 16: Deferred Recurring Revenue - Rising

    DEFERRED RECURRING REVENUE - RISING (IN $M’S) Deferred Recurring Revenue 1 $575 $578 $557 $562 $533 $539 $501 $508 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Support Deferred Revenue SaaS Deferred Revenue 2 1 Deferred Recurring Revenue - refers to the ending quarterly balance of advance payments receiv

  17. Slide 17: 4Q25 & FY25 Financial Guidance

    4Q25 & FY25 FINANCIAL GUIDANCE © EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 17

  18. Slide 18: 4Q25 Guidance

    4Q25 GUIDANCE (IN $M’S EXCEPT PERCENTAGES AND EPS) Non-GAAP 1 GAAP Non-GAAP 1 3Q25 4Q25 4Q25 Revenue ($M) $284.5 $295.0 – $305.0 $295.0 – $305.0 Gross Margin % 62.3% 61.1% – 62.1% 61.8% – 62.8% Operating Margin % 14.1% 2.5% – 4.8% 13.3% – 15.3% EPS $0.21 $0.02 – $0.07 $0.21 – $0.25 1See slides 25-29

  19. Slide 19: FY25 Guidance

    FY25 GUIDANCE (IN $M’S) FY24 FY25 Revenue ($M) $1,117 $1,128 – $1,138 © EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 19

  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. © EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 20

  21. Slide 21: 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

  22. Slide 22: Adjusted Quarterly Results of Operations

    ADJUSTED QUARTERLY RESULTS OF OPERATIONS (IN $M’S EXCEPT PERCENTAGES) Gross Profit - Adjusted Results 1 $250 100.0% $226 90.0% $200 $185 $177 $177 $171 $163 80.0% $150 $129 70.0% 64.1% 63.5% 63.7% 63.4% 62.5% 62.3% $100 61.2% 60.0% $50 50.0% - 40.0% 2 2 2 2 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Product

  23. Slide 23: Adjusted Quarterly Results of Operations

    ADJUSTED QUARTERLY RESULTS OF OPERATIONS (IN $M’S EXCEPT PERCENTAGES) Operating Expenses - Adjusted Results 1 $180 140.0% $160 $153 $147 $141 $138 $137 120.0% $136 $140 $128 100.0% $120 80.0% $100 60.0% $80 40.0% 20.7% $60 14.8% 13.5% 12.4% 14.7% 14.1% 20.0% $40 (8.6%) 0.0% $20 (20.0%) - (40.0%) 2 2

  24. Slide 24: Adjusted Quarterly Results of Operations

    ADJUSTED QUARTERLY RESULTS OF OPERATIONS EPS - Adjusted Results 1 $0.60 $0.41 $0.40 $0.24 $0.19 $0.21 $0.21 $0.20 $0.17 $- $(0.20) $(0.14) $(0.40) $(0.60) 2 2 2 2 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 1 Adjusted Results exclude the Non-GAAP adjustments and the additional provision for E&O inventory. Ad

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

    GAAP TO NON-GAAP RECONCILIATIONS – GROSS MARGIN (IN $M’S EXCEPT PERCENTAGES) 3Q24 2Q25 3Q25 Product Revenue $106.4 $172.3 $178.1 Subscription & Support Revenue 104.6 107.1 106.4 Total Revenue - GAAP $211.0 $279.4 $284.5 Gross Margin - GAAP 119.9 175.1 175.4 Gross Margin % - GAAP 56.8% 62.7% 61.7% Am

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

    GAAP TO NON-GAAP RECONCILIATIONS – OPERATING INCOME (LOSS) (IN $M’S EXCEPT PERCENTAGES) 3Q24 2Q25 3Q25 Operating Income (Loss) - GAAP ($62.5) $12.7 $10.4 Operating Margin - GAAP (29.6%) 4.5% 3.6% Amortization of Intangibles, COGS 0.6 0.6 0.6 Share-Based Compensation, Total 17.8 21.5 20.4 Restructuri

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

    GAAP TO NON-GAAP RECONCILIATIONS – NET INCOME (LOSS) (IN $M’S EXCEPT EPS) 3Q24 2Q25 3Q25 Net Income (Loss) - GAAP ($64.4) $7.4 $3.5 Shares - GAAP 129.3 134.1 134.6 EPS - GAAP (Diluted) ($0.50) $0.06 $0.03 Amortization of Intangibles, COGS 0.6 0.6 0.6 Share-Based Compensation, Total 17.8 21.5 20.4 Re

  28. Slide 28: Adjusted EBITDA Reconciliation

    ADJUSTED EBITDA RECONCILIATION (IN $M’S) 3Q24 2Q25 3Q25 Net Income (Loss) - GAAP ($64.4) $7.4 $3.5 Interest 2.9 3.3 2.8 Provision for (Benefit from) Income Taxes (0.6) 2.6 3.7 Depreciation/Amortization 5.5 5.0 4.5 EBITDA ($56.6) $18.3 $14.5 Net Non-GAAP Adjustments 39.6 21.2 24.5 Tax Effect included

  29. Slide 29: GAAP to Non-GAAP Reconciliations – 4Q25 Guidance

    GAAP TO NON-GAAP RECONCILIATIONS – 4Q25 GUIDANCE Gross Margin Operating Margin Earnings Rate Rate per Share GAAP 61.1% – 62.1% 2.5% – 4.8% $0.02 – $0.07 Estimated Adjustments for: Share-Based Compensation 0.5% 7.0% – 7.2% 0.16 Amortization of Product Intangibles 0.2% 0.2% 0.01 Amortization of Non-pr

  30. Slide 30: © EXTREME NETWORKS, INC. ALL RIGHTS RESERVED.

    © EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 30

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