EXTR Stock Analysis: Extreme Networks | NASDAQ
Communication Equipment | NASDAQ, USA | Market Cap: 2.776m USD | 12M Return: 15.7% | US30226D1063 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 30.3M
EPS Trend: 13.6%
Qual. Beats: 0
Rev. Trend: -9.6%
Qual. Beats: 5
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
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: 42.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA -5.87 > 1.0 |
| NWC/Revenue: -3.34% < 20% (prev -4.61%; Δ 1.27% < -1%) |
| CFO/TA 0.10 > 3% & CFO 123.2m > Net Income 42.1m |
| Net Debt (13.7m) to EBITDA (80.0m): 0.17 < 3 |
| Current Ratio: 0.93 > 1.5 & < 3 |
| Outstanding Shares: last quarter (128.9m) vs 12m ago -2.96% < -2% |
| Gross Margin: 61.48% > 18% (prev 62.20%; Δ -0.72% > 0.5%) |
| Asset Turnover: 110.1% > 50% (prev 98.86%; Δ 11.27% > 0%) |
| Interest Coverage Ratio: 4.74 > 6 (EBIT TTM 65.4m / Interest Expense TTM 13.8m) |
| A: -0.04 (Total Current Assets 549.8m - Total Current Liabilities 592.7m) / Total Assets 1.18b |
| B: -0.77 (Retained Earnings -907.3m / Total Assets 1.18b) |
| C: 0.06 (EBIT TTM 65.4m / Avg Total Assets 1.17b) |
| D: 0.08 (Book Value of Equity 88.6m / Total Liabilities 1.09b) |
| Altman-Z'' = -2.29 = D |
| DSRI: 1.15 (Receivables 164.6m/126.7m, Revenue 1.28b/1.14b) |
| GMI: 1.01 (GM 62.20% / 61.48%) |
| AQI: 1.00 (AQ_t 0.46 / AQ_t-1 0.46) |
| SGI: 1.13 (Revenue 1.28b / 1.14b) |
| TATA: -0.07 (NI 42.1m - CFO 123.2m) / TA 1.18b) |
| Beneish M = -2.81 (Cap -4..+1) = A |
As of October 06, 2026, the stock is trading at USD 23.33 with a total of 1,822,207 shares traded. Over the past week, the price has changed by +11.10%, over one month by +7.76%, over three months by -25.53% and over the past year by +15.67%.
Current recommended Stop Loss: 22.30 (which is 4.4% 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 | 33.5 | 43.6% |
P/E Trailing = 70.0
P/E Forward = 16.2075
P/S = 2.1624
P/B = 32.8674
P/EG = 0.8099
Revenue TTM = 1.28b USD
EBIT TTM = 65.4m USD
EBITDA TTM = 80.0m USD
Long Term Debt = 144.4m USD (from longTermDebt, last quarter)
Short Term Debt = 30.7m USD (from shortTermDebt, last quarter)
Debt = 225.4m USD (from shortLongTermDebtTotal, last quarter) + Leases 30.8m
Net Debt = 13.7m USD (calculated: Debt 225.4m - CCE 211.8m)
Enterprise Value = 2.79b USD (2.78b + Debt 225.4m - CCE 211.8m)
Interest Coverage Ratio = 4.74 (Ebit TTM 65.4m / Interest Expense TTM 13.8m)
EV/FCF = 45.76x (Enterprise Value 2.79b / FCF TTM 61.0m)
FCF Yield = 2.19% (FCF TTM 61.0m / Enterprise Value 2.79b)
FCF Margin = 4.75% (FCF TTM 61.0m / Revenue TTM 1.28b)
Net Margin = 3.28% (Net Income TTM 42.1m / Revenue TTM 1.28b)
Gross Margin = 61.48% ((Revenue TTM 1.28b - Cost of Revenue TTM 494.5m) / Revenue TTM)
Gross Margin QoQ = 62.17% (prev 61.71%)
Tobins Q-Ratio = 2.37 (Enterprise Value 2.79b / Total Assets 1.18b)
Interest Expense / Debt = 6.11% (Interest Expense 13.8m / Debt 225.4m)
Taxrate = 18.17% (9.36m / 51.5m)
NOPAT = 53.5m (EBIT 65.4m * (1 - 18.17%))
Current Ratio = 0.93 (Total Current Assets 549.8m / Total Current Liabilities 592.7m)
Debt / Equity = 2.54 (Debt 225.4m / totalStockholderEquity, last quarter 88.6m)
Debt / EBITDA = 0.17 (Net Debt 13.7m / EBITDA 80.0m)
Debt / FCF = 0.22 (Net Debt 13.7m / FCF TTM 61.0m)
Total Stockholder Equity = 83.0m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.61% (Net Income 42.1m / Total Assets 1.18b)
RoE = 50.74% (Net Income TTM 42.1m / Total Stockholder Equity 83.0m)
RoCE = 28.75% (EBIT 65.4m / Capital Employed (Equity 83.0m + L.T.Debt 144.4m))
RoIC = 9.70% (NOPAT 53.5m / Invested Capital 551.7m)
WACC = 9.99% (E(2.78b)/V(3.00b) * Re(10.40%) + D(225.4m)/V(3.00b) * Rd(6.11%) * (1-Tc(0.18)))
Discount Rate = 10.40% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 32.01 | Cagr: -0.15%
[DCF] Terminal Value 67.21% ; FCFF base≈87.5m ; Y1≈76.7m ; Y5≈62.0m
[DCF] Fair Price = 5.83 (EV 783.6m - Net Debt 13.7m = Equity 769.9m / Shares 132.2m; r=9.99% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 13.58 | EPS CAGR: 13.13% | SUE: 0.36 | # QB: 0
Revenue Correlation: -9.60 | Revenue CAGR: -1.02% | SUE: 1.51 | # QB: 5
EPS current Quarter (2026-09-30): EPS=0.28 | Chg30d=-2.21% | Revisions=-44% | Analysts=8
EPS next Quarter (2026-12-31): EPS=0.32 | Chg30d=+1.96% | Revisions=+57% | Analysts=8
EPS current Year (2027-06-30): EPS=1.31 | Chg30d=-0.12% | Revisions=+10% | GrowthEPS=+23.1% | GrowthRev=+8.6%
EPS next Year (2028-06-30): EPS=1.52 | Chg30d=+3.09% | Revisions=+40% | GrowthEPS=+16.5% | GrowthRev=+9.2%
[Analyst] Revisions Ratio: +14% (up=11, down=8)