(EXTR) Extreme Networks - Overview
Sector: Technology | Industry: Communication Equipment | Exchange: NASDAQ (USA) | Market Cap: 3.079m USD | Total Return: 57.7% in 12m
Avg Turnover: 60.2M
Qual. Beats: 0
Rev. Trend: -37.3%
Qual. Beats: 4
Warnings
P/E ratio 196.2
Altman Z'' -3.52 < 1.0 - financial distress zone
Tailwinds
Supp Ema20, Rs(ibd) Leader, Confidence
Extreme Networks, Inc. (EXTR) designs and markets cloud-driven network infrastructure equipment and software. Its product portfolio includes AI-powered management platforms, wireless LAN access points, and hardware switches for campus and data center environments. The company operates within the Communications Equipment sector, where businesses increasingly transition from hardware-centric sales to recurring software-as-a-service (SaaS) and subscription models.
The company utilizes a multi-channel distribution strategy involving original equipment manufacturers, distributors, and direct field sales to reach enterprise and mid-market clients. Its technology serves diverse industries such as healthcare, education, and manufacturing, providing software-defined wide area networks (SD-WAN) and Zero Trust Network Access (ZTNA) security solutions. Investors may find it useful to review the quantitative performance metrics available on ValueRay to further evaluate the companys valuation.
Founded in 1996 and based in North Carolina, Extreme Networks focuses on integrating machine learning and automation into network visibility tools. This approach addresses the growing demand for edge-to-cloud connectivity and granular real-time analytics in complex corporate infrastructures.
- Transition from hardware sales to high-margin recurring cloud subscription revenue
- Enterprise IT spending levels influence demand for campus and data center networking
- Supply chain stabilization and inventory normalization impact short-term revenue realization
- Competitive pressure from Cisco and HPE-Juniper merger affects market share acquisition
- AI-driven network management adoption accelerates software-as-a-service growth and operating 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 (63.4m): 1.01 < 3 |
| Current Ratio: 0.91 > 1.5 & < 3 |
| Outstanding Shares: last quarter (133.6m) vs 12m ago -0.74% < -2% |
| Gross Margin: 61.29% > 18% (prev 0.58%; Δ 6.07k% > 0.5%) |
| Asset Turnover: 111.6% > 50% (prev 101.6%; Δ 10.08% > 0%) |
| Interest Coverage Ratio: 3.10 > 6 (EBITDA TTM 63.4m / 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 42.8m / Avg Total Assets 1.12b) |
| D: -0.86 (Book Value of Equity -940.9m / Total Liabilities 1.09b) |
| Altman-Z'' = -3.52 = D |
| DSRI: 1.42 (Receivables 162.7m/99.5m, Revenue 1.25b/1.09b) |
| GMI: 0.95 (GM 61.29% / 58.19%) |
| 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 = -2.74 (Cap -4..+1) = A |
As of May 25, 2026, the stock is trading at USD 25.60 with a total of 2,699,159 shares traded.
Over the past week, the price has changed by +3.81%,
over one month by +45.54%,
over three months by +86.32% and
over the past year by +57.73%.
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 | 26.1 | 1.8% |
P/E Trailing = 196.1667
P/E Forward = 17.7936
P/S = 2.4588
P/B = 39.8139
P/EG = 0.8904
Revenue TTM = 1.25b USD
EBIT TTM = 42.8m USD
EBITDA TTM = 63.4m 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 = 3.14b USD (3.08b + Debt 274.2m - CCE 210.1m)
Interest Coverage Ratio = 3.10 (Ebit TTM 42.8m / Interest Expense TTM 13.8m)
EV/FCF = 22.52x (Enterprise Value 3.14b / FCF TTM 139.5m)
FCF Yield = 4.44% (FCF TTM 139.5m / Enterprise Value 3.14b)
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 = 61.29% ((Revenue TTM 1.25b - Cost of Revenue TTM 484.7m) / Revenue TTM)
Gross Margin QoQ = 61.58% (prev 61.36%)
Tobins Q-Ratio = 2.69 (Enterprise Value 3.14b / Total Assets 1.17b)
Interest Expense / Debt = 5.03% (Interest Expense 13.8m / Debt 274.2m)
Taxrate = 28.50% (4.22m / 14.8m)
NOPAT = 30.6m (EBIT 42.8m * (1 - 28.50%))
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 = 1.01 (Net Debt 64.1m / EBITDA 63.4m)
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 = 1.62% (Net Income TTM 16.3m / Total Stockholder Equity 1.00b)
RoCE = 3.71% (EBIT 42.8m / Capital Employed (Equity 1.00b + L.T.Debt 149.2m))
RoIC = 4.80% (NOPAT 30.6m / Invested Capital 637.1m)
WACC = 11.06% (E(3.08b)/V(3.35b) * Re(11.72%) + D(274.2m)/V(3.35b) * Rd(5.03%) * (1-Tc(0.28)))
Discount Rate = 11.72% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 60.0 | Cagr: 0.70%
[DCF] Terminal Value 69.74% ; FCFF base≈108.9m ; Y1≈124.9m ; Y5≈183.8m
[DCF] Fair Price = 13.80 (EV 1.87b - Net Debt 64.1m = Equity 1.81b / Shares 130.8m; r=11.06% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.14 | # 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=-0.21% | Revisions=+11% | Analysts=6
EPS current Year (2026-06-30): EPS=1.03 | Chg30d=+3.35% | Revisions=+64% | GrowthEPS=+22.9% | GrowthRev=+12.1%
EPS next Year (2027-06-30): EPS=1.30 | Chg30d=+1.79% | Revisions=+40% | GrowthEPS=+26.1% | GrowthRev=+8.5%
[Analyst] Revisions Ratio: +64%