Extreme Networks reported its fourth consecutive quarter of sequential revenue growth in Q3 FY2025, driven by strong demand for its AI-driven networking platform and increased market traction.

- Revenue: $284.5 million, up 34.8% year-over-year
- SaaS ARR: $184 million, up 13.4% year-over-year
- GAAP EPS: $0.03, versus $(0.50) in the prior year
- Non-GAAP EPS: $0.21, unchanged from the previous quarter
- Free cash flow: $24.2 million
- Cash balance: $185.5 million
- Non-GAAP gross margin: 62.3%
- Non-GAAP operating margin: 14.1%

Operational highlights included nearly 100 pre-orders for Extreme Platform ONE, expanded traction with managed service providers, and customer wins such as the City of Everett, Ferrovienord, Six Flags, and the United Soccer League.

Outlook for Q4 FY2025:
- Revenue projected between $295 million and $305 million
- Non-GAAP EPS expected to be in the range of $0.21 to $0.25
- Full-year FY2025 revenue guidance is between $1.128 billion and $1.138 billion

The company attributes its performance to growing adoption of its cloud solutions, enhanced visibility from a strong sales pipeline, and prudent expense management.

Extreme Networks, Inc. has announced a $200 million share repurchase authorization over a three-year period starting July 1, 2025. The company still has $50 million remaining from a previous repurchase authorization approved in May 2022, which expires June 30, 2025.

Kevin Rhodes, executive vice president and CFO, highlighted that after several quarters of sequential growth and improved cash flow, Extreme Networks is resuming buybacks to deleverage its balance sheet, offset equity dilution, and return capital to shareholders. The repurchase program will be evaluated based on market conditions, stock price, and cash availability, and it may be modified, suspended, or terminated at any time.

The company reaffirmed its long-term growth prospects and its commitment to maximizing shareholder returns beyond fiscal 2025. The stock buyback will be conducted in the open market or through a 10b5-1 plan, subject to regulatory considerations.

About Extreme Networks:
Extreme Networks is a leader in AI-driven cloud networking, providing secure and automated solutions for businesses globally. The company leverages AI, analytics, and automation to optimize networking capabilities, serving tens of thousands of customers worldwide.

For more information, visit www.extremenetworks.com or follow Extreme Networks on LinkedIn, YouTube, X (formerly Twitter), Facebook, and Instagram.

Extreme Networks, Inc. reported its financial results for the second quarter of fiscal year 2025, showing continued revenue growth for the third consecutive quarter. Revenue for the quarter was $279.4 million, representing a 3.8% increase from the previous quarter but a 5.7% decline year-over-year. The company’s Software-as-a-Service annual recurring revenue reached $181.1 million, up 14.4% from the previous year.

GAAP diluted earnings per share were $0.06, up from a loss of $0.08 in the prior quarter. Non-GAAP diluted earnings per share came in at $0.21, compared to $0.17 in the previous quarter. The company’s gross margin improved slightly to 62.7% on a GAAP basis and 63.4% on a non-GAAP basis.

Extreme Networks highlighted the launch of its Extreme Platform ONE, which integrates networking, security, and AI into a single interface designed to enhance automation and efficiency. The company also reported strong market adoption, including deployments with the Pittsburgh Steelers, NHL teams, Philadelphia International Airport, and various enterprises in healthcare, legal, and municipal sectors.

Looking ahead, Extreme expects revenue in the third quarter to range between $276 million and $284 million, with non-GAAP earnings per share projected between $0.16 and $0.20. The company anticipates full-year fiscal 2025 revenue between $1.12 billion and $1.138 billion.

Extreme’s CEO, Ed Meyercord, emphasized that improvements in competitive positioning, cloud networking, and enterprise adoption are creating growth opportunities. CFO Kevin Rhodes noted that the company expects continued revenue growth and better operating margins for the remainder of the fiscal year.

The company will host a conference call to discuss its results and business outlook, with details available on its investor relations website.