Thu, May 1, 8:10 PM (10 days ago)
**Extreme Networks, Inc. (EXTR) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $284.5 million (Q1 2025) vs. $211.0 million (Q1 2024), a 34.8% increase. - **Product Revenue:** $178.1 million (Q1 2025) vs. $106.4 million (Q1 2024), a 67.3% increase. - **Subscription & Support Revenue:** $106.4 million (Q1 2025) vs. $104.6 million (Q1 2024), a 1.8% increase. - **Gross Margin:** 61.7% (Q1 2025) vs. 56.8% (Q1 2024). - **Operating Income:** $10.4 million (Q1 2025) vs. -$62.5 million (Q1 2024). - **Net Income:** $3.5 million (Q1 2025) vs. -$64.4 million (Q1 2024). - **EPS:** $0.03 (Q1 2025) vs. -$0.50 (Q1 2024). - **Cash Flow from Operations:** $70.1 million (9M 2025) vs. $40.0 million (9M 2024). - **Cash & Cash Equivalents:** $185.5 million (Q1 2025) vs. $156.7 million (Q4 2024). **Operational Metrics:** - **Operating Expenses:** $165.0 million (Q1 2025) vs. $182.4 million (Q1 2024), a 9.5% decrease. - **R&D Expenses:** $55.7 million (Q1 2025) vs. $54.5 million (Q1 2024), a 2.1% increase. - **Sales & Marketing Expenses:** $79.8 million (Q1 2025) vs. $87.7 million (Q1 2024), a 9.0% decrease. - **General & Administrative Expenses:** $29.5 million (Q1 2025) vs. $25.2 million (Q1 2024), a 17.1% increase. **Trends & Uncertainties:** - **Revenue Growth:** Driven by higher shipments and easing supply chain constraints. - **Gross Margin Improvement:** Due to higher product revenues and lower inventory reserves. - **Operating Income Improvement:** Due to lower operating expenses and higher gross margins. - **Cash Flow Improvement:** Due to higher net income and changes in working capital. - **Geopolitical Risks:** Ongoing trade tensions and tariffs may impact supply chain and costs. - **Market Volatility:** Stock price may fluctuate due to industry conditions and investor sentiment. **Future Operations Impact:** - **Strategic Initiatives:** Focus on cloud networking, AI, and security solutions. - **Cost Management:** Continued focus on reducing operating expenses. - **Share Repurchases:** $200 million share repurchase program authorized for 2025. - **Debt Management:** Compliance with financial covenants under the Amended Credit Agreement.