Extreme Networks Reports Third Quarter Fiscal Year 2026 Financial Results
Extreme Networks reported an 11% increase in revenue for the third quarter of fiscal year 2026, along with a 29% year-over-year growth in SaaS ARR driven by its Extreme Platform ONE. The company has secured its forward supply chain to meet demand, leading to stabilized gross margins.
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Extreme Networks, Inc. ("Extreme") (Nasdaq: EXTR) today released financial results for its third quarter of fiscal 2026 ended March 31, 2026.
"Our fifth straight quarter of double-digit growth highlights strong momentum, fueled by disciplined execution, differentiated technology, and rising demand for our AI-powered platform. We've fully addressed our current and longer-term supply chain needs, including memory, through targeted sourcing strategies, product redesign, and strategic purchase commitments. These actions position us for continued share gains and growth. This quarter's results reflect not just our performance today, but the strength and scalability of our strategy going forward," said Ed Meyercord, President and CEO of Extreme.
"SaaS ARR growth accelerated, reflecting rising adoption and deeper customer engagement with Extreme Platform ONE. This momentum underscores the power of our platform approach and the shift toward a more predictable, recurring revenue model. It's a clear signal that customers are standardizing on our platform to drive automation, boost productivity, and scale their operations," said Meyercord.
Kevin Rhodes, Executive Vice President and Chief Financial Officer, noted, "The third quarter marked our eighth consecutive quarter of sequential product revenue growth, reflecting continued execution and share gains. Enterprise networking demand remains resilient, and the targeted pricing actions we implemented are successfully offsetting the incremental supply chain costs we have incurred. Together, these actions underpin our gross margin results and outlook. In addition, we returned $50 million to shareholders through an accelerated share repurchase, underscoring our confidence in the durability of our operating model and cash flow generation."
Fiscal Third Quarter Results:
- Revenue $316.9 million, up 11% year-over-year and relatively flat quarter-over-quarter
- SaaS ARR $236.4 million, up 28.6% year-over-year and 4.2% quarter-over-quarter
- GAAP diluted EPS $0.08, compared to $0.03 last year and $0.06 last quarter
- Non-GAAP diluted EPS $0.26, compared to $0.21 last year and $0.26 last quarter
- GAAP gross margin 61.7%, compared to 61.7% last year and 61.4% last quarter
- Non-GAAP gross margin 62.3%, compared to 62.3% last year and 62.0% last quarter
- GAAP operating margin 5.5%, compared to 3.6% last year and 4.1% last quarter
- Non-GAAP operating margin 15.2%, compared to 14.1% last year and 15.0% last quarter
- Share repurchases of $50.0 million during the quarter
Liquidity:
- Q3 ending cash balance was $210.1 million, a decrease of $9.7 million from the end of Q2 2026 and an increase of $24.6 million from the end of Q3 in the prior year.
About the company
Extreme Networks, Inc. (EXTR) is a leader in AI-powered cloud networking, focused on delivering simple and secure solutions that help businesses address challenges and enable connections among devices, applications, and users. We push the boundaries of technology, leveraging the powers of artificial intelligence, analytics, and automation. Tens of thousands of customers globally trust our AI-driven cloud networking solutions and industry-leading support to enable businesses to drive value, foster innovation, and overcome extreme challenges. For more information, visit Extreme's website at https://www.extremenetworks.com/ or LinkedIn, YouTube, X (Formerly Twitter), Facebook or Instagram.
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