EXTR Stock Analysis: Extreme Networks | NASDAQ
Communication Equipment | NASDAQ, USA | Market Cap: 4.151m USD | 12M Return: 76.8% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 60.4M
Qual. Beats: 0
Rev. Trend: -37.3%
Qual. Beats: 4
Warnings
Tailwinds
Seasonality
Extreme Networks, Inc. (NASDAQ: EXTR) is a global provider of network infrastructure equipment and related software, operating across the Americas, Europe, the Middle East, Africa, and Asia-Pacific. The company offers a portfolio of wired and wireless networking solutions anchored by its ExtremeCloud IQ platform, which uses ML/AI to deliver cloud-based network management, visibility, and control. Its product line includes wireless access points, Extreme Switching for campus and data center environments, ExtremeCloud SD-WAN for software-defined wide area networking, and ExtremeCloud Universal ZTNA for network access security, complemented by customer support, training, and consulting services.
The company primarily targets mid-market and enterprise customers, as well as service providers, across industries such as sports and entertainment, hospitality, retail, transportation and logistics, education, government, healthcare, and manufacturing. Extreme Networks sells through a mix of OEM partnerships, strategic relationships, distributors, resellers, and a direct field sales force. Incorporated in 1996 and headquartered in Morrisville, North Carolina, the company is classified within the Information Technology sector under the Communications Equipment sub-industry, and uses a combination of hardware sales and subscription-based services (notably for its SD-WAN and cloud management offerings) as part of its business model.
- Cloud subscription revenue scales as ExtremeCloud IQ adoption grows
- Wi-Fi 6E and 7 upgrade cycle drives access point demand
- Cisco and HPE Aruba competition pressures networking gross margins
| Net Income: 16.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 6.05 > 1.0 |
| NWC/Revenue: -4.11% < 20% (prev -3.25%; Δ -0.87% < -1%) |
| CFO/TA 0.11 > 3% & CFO 132.3m > Net Income 16.3m |
| Net Debt (64.1m) to EBITDA (62.3m): 1.03 < 3 |
| Current Ratio: 0.91 > 1.5 & < 3 |
| Outstanding Shares: last quarter (133.6m) vs 12m ago -0.74% < -2% |
| Gross Margin: 61.32% > 18% (prev 58.24%; Δ 3.08% > 0.5%) |
| Asset Turnover: 111.6% > 50% (prev 101.6%; Δ 10.08% > 0%) |
| Interest Coverage Ratio: 3.15 > 6 (EBIT TTM 43.5m / Interest Expense TTM 13.8m) |
| A: -0.04 (Total Current Assets 541.8m - Total Current Liabilities 593.3m) / Total Assets 1.17b |
| B: -0.79 (Retained Earnings -925.4m / Total Assets 1.17b) |
| C: 0.04 (EBIT TTM 43.5m / Avg Total Assets 1.12b) |
| D: 0.07 (Book Value of Equity 79.0m / Total Liabilities 1.09b) |
| Altman-Z'' = -2.53 = D |
| DSRI: 1.42 (Receivables 162.7m/99.5m, Revenue 1.25b/1.09b) |
| GMI: 0.95 (GM 58.24% / 61.32%) |
| AQI: 0.96 (AQ_t 0.46 / AQ_t-1 0.48) |
| SGI: 1.15 (Revenue 1.25b / 1.09b) |
| TATA: -0.10 (NI 16.3m - CFO 132.3m) / TA 1.17b) |
| Beneish M = -2.65 (Cap -4..+1) = A |
As of June 29, 2026, the stock is trading at USD 31.74 with a total of 7,147,629 shares traded. Over the past week, the price has changed by +1.15%, over one month by +21.10%, over three months by +112.02% and over the past year by +76.82%.
Current recommended Stop Loss: 30.10 (which is 5.2% or 1.3 ATR below the current price).
Extreme Networks has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy EXTR.
- StrongBuy: 3
- Buy: 1
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 29.1 | -8.4% |
P/E Trailing = 264.5
P/E Forward = 23.5294
P/S = 3.3153
P/B = 52.616
P/EG = 1.1767
Revenue TTM = 1.25b USD
EBIT TTM = 43.5m USD
EBITDA TTM = 62.3m USD
Long Term Debt = 149.2m USD (from longTermDebt, last quarter)
Short Term Debt = 60.3m USD (from shortTermDebt, last quarter)
Debt = 274.2m USD (from shortLongTermDebtTotal, last quarter) + Leases 38.4m
Net Debt = 64.1m USD (calculated: Debt 274.2m - CCE 210.1m)
Enterprise Value = 4.21b USD (4.15b + Debt 274.2m - CCE 210.1m)
Interest Coverage Ratio = 3.15 (Ebit TTM 43.5m / Interest Expense TTM 13.8m)
EV/FCF = 30.20x (Enterprise Value 4.21b / FCF TTM 139.5m)
FCF Yield = 3.31% (FCF TTM 139.5m / Enterprise Value 4.21b)
FCF Margin = 11.15% (FCF TTM 139.5m / Revenue TTM 1.25b)
Net Margin = 1.30% (Net Income TTM 16.3m / Revenue TTM 1.25b)
Gross Margin = 61.32% ((Revenue TTM 1.25b - Cost of Revenue TTM 484.3m) / Revenue TTM)
Gross Margin QoQ = 61.71% (prev 61.36%)
Tobins Q-Ratio = 3.60 (Enterprise Value 4.21b / Total Assets 1.17b)
Interest Expense / Debt = 5.03% (Interest Expense 13.8m / Debt 274.2m)
Taxrate = 45.21% (13.4m / 29.7m)
NOPAT = 23.8m (EBIT 43.5m * (1 - 45.21%))
Current Ratio = 0.91 (Total Current Assets 541.8m / Total Current Liabilities 593.3m)
Debt / Equity = 3.47 (Debt 274.2m / totalStockholderEquity, last quarter 79.0m)
Debt / EBITDA = 1.03 (Net Debt 64.1m / EBITDA 62.3m)
Debt / FCF = 0.46 (Net Debt 64.1m / FCF TTM 139.5m)
Total Stockholder Equity = 77.3m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.45% (Net Income 16.3m / Total Assets 1.17b)
RoE = 21.07% (Net Income TTM 16.3m / Total Stockholder Equity 77.3m)
RoCE = 19.20% (EBIT 43.5m / Capital Employed (Equity 77.3m + L.T.Debt 149.2m))
RoIC = 4.15% (NOPAT 23.8m / Invested Capital 574.5m)
WACC = 11.14% (E(4.15b)/V(4.43b) * Re(11.69%) + D(274.2m)/V(4.43b) * Rd(5.03%) * (1-Tc(0.45)))
Discount Rate = 11.69% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 60.0 | Cagr: 0.70%
[DCF] Terminal Value 69.51% ; FCFF base≈108.9m ; Y1≈124.9m ; Y5≈183.8m
[DCF] Fair Price = 13.66 (EV 1.85b - Net Debt 64.1m = Equity 1.79b / Shares 130.8m; r=11.14% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.19 | # QB: 0
Revenue Correlation: -37.32 | Revenue CAGR: -3.99% | SUE: 1.35 | # QB: 4
EPS next Quarter (2026-09-30): EPS=0.28 | Chg30d=+0.00% | Revisions=+11% | Analysts=6
EPS current Year (2026-06-30): EPS=1.03 | Chg30d=+0.00% | Revisions=+64% | GrowthEPS=+22.9% | GrowthRev=+12.1%
[Analyst] Revisions Ratio: +64%