Extreme Networks Inc

Telecommunications
Computer Communications Equipment
www.extremenetworks.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.87B
PE -35
Debt $180.30M
Cash $185.48M
EV $1.86B
FCF $63.03M

Earnings

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Sales & Net Margins

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Earnings	-$53.87M
EBIT	-$30.62M
ROE	-75%
ROA	-3%
FCF	$63.03M
Equity	$71.71M
Growth Stability	-208%
PE	-34.71
PEG	-3.8
PB	26.07
P/FCF	29.66
P/S	1.72
Price/Cash	0.1
Debt/Equity	2.51
Debt/FCF	2.86
Net Margins	0%
Gross Margins	58%
Op. Margins	-3%
Earnings CAGR	3%
Sales Growth YoY	35%
Sales Growth QoQ	2%
Sales CAGR	8%
FCF CAGR	14%
Equity CAGR	-6%
Earnings Stability	0.03
Earnings Growth YoY	-105%
Earnings Growth QoQ	-53%

Earnings CAGR 5Y	9%
Sales CAGR 5Y	5%
FCF CAGR 5Y	12%
Equity CAGR 5Y	32%
Earnings CAGR 3Y	-4%
Sales CAGR 3Y	-4%
FCF CAGR 3Y	-19%
Equity CAGR 3Y	-29%
Market Cap	$1.87B
Revenue	$1.09B
Assets	$1.07B
Total Debt	$180.30M
Cash	$185.48M
Shares Outstanding	132.17M
EV	1.86B
Earnings Score	6%
Moat Score	16%
Safety Score	53%
Final Score	25%
Working Capital	-35.36M
Current Ratio	0.93
Gross Profit	$634.66M
Shares Growth 3y	1%
Equity Growth QoQ	40%
Equity Growth YoY	10%

Assets & ROA

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Stockholders Equity & ROE

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Extreme Networks provides software-driven networking services for enterprise customers. Its products include wired and wireless network infrastructure equipment and software for network management, policy, analytics, and access controls. It offers high-density Wi-Fi, centralized management, cloud-based network management, and application analytics capabilities. Roughly half of the firm's revenue is generated in the Americas, with the rest coming from Europe, the Middle East, Africa, and Asia-Pacific.

SEC Filings

Direct access to Extreme Networks Inc (EXTR) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Mar 31
2024
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31

Sector Comparison

How does Extreme Networks Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Extreme Networks Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 3%

Stability 3%

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Extreme Networks Inc Discounted Cash Flow

Fully customizable DCF calculator online for Extreme Networks Inc.

Years

Calculation mode

= $1.6B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$63M	$72M	$81M	$92M	$105M	$119M	$135M	$153M	$174M	$197M	$224M	$2.2B
DCF		$65M	$67M	$69M	$71M	$74M	$76M	$79M	$81M	$84M	$86M	$863M
Value	$1.6B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Net Margins	-13%	-6%	-1%	-5%	-3%	-13%	0%	4%	6%	-8%	0%
ROA	-	-7%	-0%	-4%	-2%	-10%	3%	6%	9%	-6%	-3%
ROE	-	-35%	-8%	-42%	-22%	-2K%	4%	49%	67%	-340%	-75%

Bad Net Margins (0.04%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Debt over FCF	-	2.93	2.17	-9.78	2.31	21.21	2.91	3.03	1.1	5.33	2.86
Debt over Equity	0.75	0.81	0.99	1.85	1.63	81.01	6.8	3.79	2.22	7.88	2.51
Growth Stability	-	-	-	-	-	-	-	-	-	-208%	-208%

Neutral Debt/FCF ratio (2.86)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Bad Debt/Equity ratio (2.51)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (-208%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	06/2015	06/2016	06/2017	06/2018	06/2019	06/2020	06/2021	06/2022	06/2023	06/2024	CAGR 5Y
Revenue YoY growth	-	-4%	15%	62%	1%	-5%	6%	10%	18%	-15%	5%
Earnings YoY growth	-	-55%	-73%	449%	-45%	391%	-102%	2K%	76%	-210%	9%
Equity YoY growth	-	-13%	18%	6%	3%	-95%	909%	66%	29%	-78%	32%
FCF YoY growth	-	-17%	95%	-144%	-485%	-75%	518%	-11%	109%	-84%	12%