A maker of cloud networking gear and software, Extreme Networks helps businesses, schools, and hospitals run their Wi-Fi and wired networks, with tools like its ExtremeCloud IQ management platform and AI-powered Extreme Platform ONE. Founded in 1996 in California by three networking engineers, the company chose its name to signal its focus on "extreme" performance and speed. It also provides the official stadium Wi-Fi for both the NFL and MLB, keeping fans connected at games.
10-K · Fiscal year ended Jun 30, 2026 · SEC filing ↗
Extreme Networks returns to GAAP profitability with $42.1M in net income as product revenue recovers 14.9% and SaaS ARR reaches $244.3M.
Extreme Networks returned to annual profitability for the first time in two years. rose 12.6% to $1,283.6 million and reached $62.7 million, driven by a 14.9% recovery in product revenue and an 8.8% increase in subscription and support revenue, though slipped 0.7 points to 61.5% as higher component and distribution costs weighed on product margins. The company enters FY2027 with a new $500 million , a growing SaaS base, and an unresolved export-control investigation.
Key takeaways
Product rose 14.9% to $809.6 million, recovering from a 25% decline in FY2024 and a flat FY2025, as higher average selling prices from price increases implemented during the year drove the increase rather than higher unit volume.
Subscription and support grew 8.8% to $474.0 million, and reached $244.3 million, up 17.7% , reflecting adoption of the Extreme Platform ONE cloud management platform launched in July 2025.
Section summaries
Business
Extreme Networks is an AI-powered cloud networking leader offering a unified platform, wired/wireless infrastructure, and SD-WAN to enterprises globally.
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The company operates a single focused on network infrastructure equipment, software subscriptions, and services, with 55% of FY2026 from outside the U.S.
Total declined 0.7 points to 61.5%, as product gross margin fell to 56.6% on higher memory component costs and distribution expenses, partially offset by subscription and support margin of 69.9%.
rose to $62.7 million from $16.9 million, helped by a 10.3% drop in general and administrative expenses as litigation-related legal costs fell sharply from the $47.5 million accrued in FY2025.
The company repurchased $87.0 million in shares under its $200 million authorization and reduced by 11.8% to $144.4 million, ending the year with $211.8 million in cash and equivalents.
A new $500 million was entered in July 2026, repaying all prior debt, while the voluntary disclosure to U.S. agencies over potential export-control violations in Russia remains unresolved.
What changed
The FY2025 watch item on sustainability was answered: the 62.2% peak did not hold. Gross margin fell to 61.5% in FY2026 as product margin declined to 56.6% on higher component and distribution costs, confirming that the prior year's margin benefited from the absence of excess charges rather than a structural shift.
The FY2025 watch item on whether Extreme Platform ONE would drive a meaningful inflection saw partial resolution: SaaS grew 17.7% to $244.3 million and subscription revenue accelerated through the year, but total revenue growth of 12.6% was driven more by product price increases than a platform-driven demand increase.
The FY2025 watch item on litigation cash outflows materialized as G&A expenses fell 10.3% in FY2026, indicating the $47.5 million accrual in FY2025 did not repeat at the same scale, though the securities class action remains pending.
The export-control investigation into potential sales to end users in Russia, flagged in every filing since FY2023, remains unresolved with no fines, penalties, or restrictions recorded to date.
Share repurchases accelerated to $87.0 million in FY2026 from $49.9 million in FY2024 and none in FY2025, funded in part by $25.0 million in borrowings during Q1 when turned negative.
What to watch
Whether stabilizes near 61.5% or continues to decline as product grows and the mix shifts further toward hardware, testing whether higher component and distribution costs are transitory or structural.
The pace of share repurchases against the remaining $113 million authorization under the new $200 million program, and whether the company sustains buybacks at the FY2026 rate of $87 million now that the new $500 million is in place.
Whether SaaS growth sustains above 17% as the company laps the Platform ONE launch, and whether subscription growth can re-accelerate toward double digits after reaching 8.8% in FY2026.
The outcome of the ongoing investigation into potential export-control and sanctions violations related to sales to end users in Russia, which remains unresolved and could result in fines, penalties, or restrictions.
Its flagship Extreme Platform ONE, launched in July 2025, integrates networking, security, and AI to simplify operations, with new AI agents (Extreme Agent ONE) announced for autonomous tasks.
The product portfolio spans cloud management (ExtremeCloud IQ), Wi-Fi 6/6E/7 access points, campus and data center switches, , and Universal security.
Extreme targets mid-market, enterprise, and service provider customers across verticals like education, healthcare, and large venues, serving as the Official Wi-Fi Solutions Provider for the NFL and MLB.
The company estimates its total addressable market exceeded $46 billion in 2025, with cloud-managed networking and AI Networking for the Campus projected to grow at 13% and 60% CAGRs, respectively.
Products are manufactured through ODMs like Alpha Networks and Sercomm, and sold via a global channel of distributors, resellers, and a direct field sales force.
Geopolitical uncertainty, intense competition, supply chain concentration, and cybersecurity threats are the most material risks facing the company.
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U.S. trade policy uncertainty and geopolitical conflicts could decrease demand, increase costs, and disrupt the supply chain, particularly if tariffs expand to key manufacturing countries like Taiwan and Vietnam.
Intense competition from larger rivals like Cisco and HPE, industry consolidation, and new entrants like cloud hyperscalers and AI vendors could pressure market share and pricing.
A concentrated supply chain with sole or limited sources for key components, especially semiconductors from geopolitically sensitive Taiwan, creates significant risk of disruption, shortages, and cost increases.
The company experienced a non-material security incident via vishing this year and faces ongoing, sophisticated cyber threats that could compromise its systems, customer data, and product reputation.
Failure to successfully transition customers to cloud-based subscription offerings and integrate AI into products could limit growth and competitive positioning.
A voluntary disclosure to U.S. agencies regarding potential export of equipment to sanctioned end-users in Russia represents a specific, unresolved regulatory risk with an uncertain financial impact.
Our corporate headquarters is located in Morrisville, North Carolina where we currently lease approximately 54,530 square feet of space under a lease agreement that expires in fiscal year 2031. In addition to our headquarters in Morrisville, we lease additional sites in the Unit…
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Our corporate headquarters is located in Morrisville, North Carolina where we currently lease approximately 54,530 square feet of space under a lease agreement that expires in fiscal year 2031.
In addition to our headquarters in Morrisville, we lease additional sites in the United States, including in Salem, New Hampshire and San Jose, California for research and development, sales and marketing and administrative purposes. Outside the United States, we also lease facilities in other geographic locations for research and development, sales and service personnel and administration, including other cities in the Americas, EMEA and APAC, such as Bangalore, India; Chennai, India; Markham, Canada; Reading, United Kingdom; Shannon, Ireland; and other locations.
As of June 30, 2026, we have an aggregate of approximately 0.5 million square feet of leased space with various expiration dates between fiscal year 2027 and fiscal 2033. We are continuously evaluating our leased locations. As leases expire, we analyze key metrics such as attendance and usage when determining whether to extend the lease, reduce the size of the facility or allow the lease to expire.
The information set forth under the heading “Legal Proceedings” in Note 9, Commitments and Contingencies, in the Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K is incorporated herein by reference.
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The information set forth under the heading “Legal Proceedings” in Note 9, Commitments and Contingencies, in the Notes to Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K is incorporated herein by reference.
Total net revenues rose 12.6% to $1,283.6M in fiscal 2026, driven by product revenue growth and subscription adoption, while operating income improved to $62.7M.
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Total net revenues increased 12.6% to $1,283.6M, with product revenues up 14.9% to $809.6M on higher average selling prices and product mix, and subscription and support revenues up 8.8% to $474.0M on cloud solution adoption.
Total declined to 61.5% from 62.2%, as product gross margin fell to 56.6% due to higher memory component costs and distribution expenses, partially offset by subscription and support margin of 69.9%.
rose to $62.7M from $16.9M, helped by a 10.3% drop in general and administrative expenses from lower litigation costs, while sales and marketing expenses grew 11.2% on higher personnel and commission costs.
SaaS reached $244.3M, up 17.7% , driven by increased adoption of the Extreme Platform ONE and cloud network management solutions.
was $123.2M, down from $152.0M; cash and equivalents fell to $211.8M after $87.0M in share repurchases and $15.0M in debt repayments.
The company entered a new $500M in July 2026, repaying all prior debt, and expects existing liquidity and cash flows to fund operations for at least the next 12 months.
Quantitative and Qualitative Disclosures About Market Risk
Interest-rate risk stems from variable-rate debt; currency risk is managed via forwards and collars, with modest net impacts.
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All $165.0M of debt outstanding at June 30, 2026 was variable-rate under the Amended Credit Agreement, with no interest-rate derivatives in place.
A 100 parallel shift in rates would change annual by ±$1.8M based on average daily borrowings of $182.6M.
Foreign exchange forward contracts (not designated as hedges) had a notional of $68.0M at year-end and produced a net loss of $4.0M in FY2026.
Zero-cost collar contracts designated as cash-flow hedges carried an $82.5M notional, with $1.8M in unrealized losses and $0.7M in realized losses reclassified to earnings.
Foreign currency transaction gains were $2.5M in FY2026, compared with a $1.8M loss in FY2025 and a $0.6M gain in FY2024.
Extreme Networks' FY2026 audit report expresses unqualified opinions on financial statements and internal controls, with revenue rebates as a critical audit matter.
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Grant Thornton LLP issued unqualified opinions on the consolidated financial statements for the fiscal year ended June 30, 2026, and on the effectiveness of .
The critical audit matter identified was recognition related to customer rebates to stocking distributors, which are treated as and require significant judgment to estimate.
Audit procedures for the critical matter included testing controls over rebate estimation, evaluating management's data and assumptions, comparing historical estimates to actuals, and confirming channel with distributors.
The report confirms the financial statements present fairly, in all material respects, the company's financial position, results of operations, and cash flows in conformity with U.S. .
The auditor has served as the company's auditor since 2021.