Extreme Networks, Inc. · NASDAQ:EXTR

Extreme Networks — Q1 2027 Earnings Presentation

29 slides from Extreme Networks's earnings presentation, Oct 28, 2026

  1. Slide 1: 1Q27 Financial Results

    1Q27 Financial Results October 28, 2026

  2. Slide 2: Disclaimer

    DISCLAIMER Non - GAAP Financial Measures Forward - Looking Statements This presentation includes certain financial measures that are not presented in accordance with This presentation contains forward - looking statements including generally accepted accounting principles in the United States (“GAAP

  3. Slide 3: 1Q27 Financial Results

    1Q27 FINANCIAL RESULTS ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 3

  4. Slide 4: 1Q27 Results Summary

    1Q27 RESULTS SUMMARY • Total Revenue of $341M, Up 10% YoY Bookings and • 7th Consecutive Quarter of Double - Digit Total Revenue and Product Revenue YoY Growth Revenue Trends • Recurring Revenue 2 of $119M, Up 7% YoY Cloud SaaS • SaaS ARR 2 of $265M, Up 22% YoY Subscriptions and • Extreme Platform O

  5. Slide 5: 1Q27 Highlights

    1Q27 HIGHLIGHTS Total Revenue Non - GAAP Gross Profit 1 Non - GAAP EPS 1 Adjusted EBITDA 1 $341M $213M $0.33 $66M Up 10% YoY Up 12% YoY Up 50% YoY Up 47% YoY $265M 62.6% 17.4% 19.2% SaaS ARR 2 1 1 Adjusted EBITDA Margin 1 Non - GAAP Gross Margin Non - GAAP Operating Margin 22% 35% 44 $45M SaaS ARR 2

  6. Slide 6: Quarterly Revenue Results

    QUARTERLY REVENUE RESULTS (IN $M EXCEPT PERCENTAGES) Total Revenue $339 $341 $307 $310 $318 $317 $279 $285 35% 36% 37% 37% 38% 37% 38% 37% 62% 63% 65% 64% 62% 63% 63% 63% 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 1 Product Revenue Subscription & Support Revenue 1S ee Appendices for definitions of metr

  7. Slide 7: Financial Highlights

    FINANCIAL HIGHLIGHTS (IN $M EXCEPT PERCENTAGES AND EPS) GAAP Non - GAAP 1 1Q26 4Q26 1Q27 1Q26 4Q26 1Q27 Product Revenue $194.0 $218.5 $218.3 $194.0 $218.5 $218.3 Subscription & Support Revenue $116.2 $120.1 $122.8 $116.2 $120.1 $122.8 Total Revenue $310.2 $338.6 $341.1 $310.2 $338.6 $341.1 Total GM

  8. Slide 8: Quarterly Gross Profit and Margin

    QUARTERLY GROSS PROFIT AND MARGIN (IN $M EXCEPT PERCENTAGES) Gross Profit - GAAP Gross Profit - Non - GAAP 1 $250 70.0% $250 70.0% $211 $212 $212 $213 $195 $196 68.0% $191 $197 $197 68.0% $200 $189 $188 $200 $190 $175 $175 $177 $177 66.0% 66.0% $150 $150 64.0% 63.4% 64.0% 62.7% 62.3% 62.7% 62.6% $10

  9. Slide 9: Quarterly Operating Expense and Margin

    QUARTERLY OPERATING EXPENSE AND MARGIN (IN $M EXCEPT PERCENTAGES) Operating Expenses - GAAP Operating Expenses - Non - GAAP 1 $250 50.0% $200 $180 26.0% 40.0% $159 $154 $200 $191 $189 $189 $160 $149 $149 $149 $177 $182 $178 30.0% $144 $165 $136 $137 $162 $140 21.0% 20.0% $150 6.8% $120 17.4% 4.5% 4.

  10. Slide 10: Quarterly EPS

    QUARTERLY EPS EPS - GAAP EPS - Non - GAAP 1 $0.32 $0.33 $0.25 $0.26 $0.26 $0.21 $0.21 $0.22 $0.13 $0.12 $0.08 $0.06 $0.06 $0.03 $0.04 $(0.06) 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 1See Appendices for GAAP to Non - GAAP reconciliation. ©2026 EXTREME NETWORKS,

  11. Slide 11: 1Q27 Revenue by Geography

    1Q27 REVENUE BY GEOGRAPHY (IN $M EXCEPT PERCENTAGES) AMERICAS EMEA APAC $184M $130M $27M 54% of Revenue 38% of Revenue 8% of Revenue Note: t he total of revenues in each geography may not equal total revenue due to rounding. ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 11

  12. Slide 12: Financial Highlights – Balance Sheet

    FINANCIAL HIGHLIGHTS – BALANCE SHEET (IN $M) Balance Sheet Highlights 1Q26 4Q26 1Q27 Cash and Cash Equivalents $209.0 $211.8 $244.5 Accounts Receivable $145.8 $164.6 $167.7 Inventories $93.7 $70.0 $100.0 Accounts Payable $77.8 $89.4 $112.7 1 Gross Debt $201.2 $165.0 $200.0 1 Net Cash $7.8 $46.8 $44.

  13. Slide 13: Free Cash Flow

    FREE CASH FLOW (IN $M) 1Q26 4Q26 1Q27 Operating Cash Flow ($14.0) $72.9 $45.4 PP&E Capital Expenditures ($6.9) ($7.6) ($6.8) 1 Free Cash Flow ($20.9) $65.3 $38.6 Share Repurchases $12.0 $25.0 $25.0 Free Cash Flow $75 $65 $43 $39 $16 $24 $8 ($21) 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 1S ee Appendic

  14. Slide 14: SaaS ARR

    SaaS ARR (IN $M EXCEPT PERCENTAGES) SaaS ARR 1 $280 $265 $260 $244 $240 $236 $227 $220 $216 $208 $200 $181 $184 $180 $160 $140 YoY Growth 14% 13% 24% 24% 25% 29% 18% 22% $120 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 1S ee Appendices for definitions of metrics & KPIs. ©2026 EXTREME NETWORKS, INC. ALL

  15. Slide 15: Recurring Revenue

    RECURRING REVENUE (IN $M EXCEPT PERCENTAGES) Recurring Revenue 1 $120 $119 73% $116 $115 $115 $114 $111 63% $110 $109 53% $105 $103 $101 43% $100 37% 35% 36% 36% 36% 36% 34% 35% 33% $95 $90 23% 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 Recurring Revenue as % of Total Revenue 1S ee Appendices for defin

  16. Slide 16: Deferred Recurring Revenue

    DEFERRED RECURRING REVENUE (IN $M EXCEPT PERCENTAGES) Deferred Recurring Revenue 1 $651 $650 $630 $639 70% $628 $618 $606 65% $600 $575 $578 60% 60% 57% $550 53% 54% 53% 55% 50% 51% $500 49% 50% $450 45% $400 40% 2 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 Deferred Recurring Revenue SaaS Deferred Reve

  17. Slide 17: 2Q27 Financial Guidance

    2Q27 FINANCIAL GUIDANCE ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 17

  18. Slide 18: 2Q27 Guidance

    2Q27 GUIDANCE (IN $M EXCEPT PERCENTAGES AND EPS) GAAP Non - GAAP 1 2Q27 2Q27 Revenue $345.8 - $350.8 $345.8 - $350.8 Gross Margin % 61.8% - 62.3% 62.2% - 62.7% Operating Margin % 9.1% - 10.2% 16.4% - 17.4% EPS $0.19 - $0.22 $0.32 - $0.34 1See Appendices for GAAP to Non - GAAP reconciliation . ©2026

  19. Slide 19: FY27 Guidance

    FY27 GUIDANCE (IN $M EXCEPT PERCENTAGES AND EPS) GAAP Non - GAAP 1 FY27 FY27 Revenue $1,402.3 - $1,412.3 $1,402.3 - $1,412.3 Gross Margin % 61.9% - 62.4% 62.3% - 62.8% Operating Margin % 9.2% - 9.7% 17.2% - 17.6% EPS $0.77 - $0.83 $1.35 - $1.39 1See Appendices for GAAP to Non - GAAP reconciliation .

  20. Slide 20: Appendices

    APPENDICES GAAP to Non - GAAP Reconciliations and Operating Metrics Note: The totals for some periods may not foot due to rounding. Please see press release for full reconciliation. ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 20

  21. Slide 21: GAAP to Non-GAAP Reconciliations – Gross Margin

    GAAP TO NON - GAAP RECONCILIATIONS – GROSS MARGIN (IN $M EXCEPT PERCENTAGES) 1Q26 4Q26 1Q27 Product Revenue $194.0 $218.5 $218.3 Subscription & Support Revenue 116.2 120.1 122.8 Total Revenue - GAAP $310.2 $338.6 $341.1 Gross Profit - GAAP 188.0 210.5 211.9 Gross Margin % - GAAP 60.6% 62.2% 62.1% Am

  22. Slide 22: GAAP to Non-GAAP Reconciliations – Operating Income

    GAAP TO NON - GAAP RECONCILIATIONS – OPERATING INCOME (IN $M EXCEPT PERCENTAGES) 1Q26 4Q26 1Q27 Operating Income - GAAP $11.3 $21.1 $23.1 Operating Margin - GAAP 3.6% 6.2% 6.8% Amortization of Intangibles 1.1 0.8 0.5 Share - Based Compensation, Total 21.8 21.8 21.5 Restructuring and Related Charges

  23. Slide 23: GAAP to Non-GAAP Reconciliations – Net Income

    GAAP TO NON - GAAP RECONCILIATIONS – NET INCOME (IN $M EXCEPT EPS) 1Q26 4Q26 1Q27 Net Income - GAAP $5.6 $18.0 $16.0 Amortization of Intangibles 1.1 0.8 0.5 Share - Based Compensation, Total 21.8 21.8 21.5 Restructuring and Related Charges 0.4 0.7 7.3 System Transition Costs 4.9 3.4 2.4 Litigation C

  24. Slide 24: Adjusted EBITDA Reconciliation

    ADJUSTED EBITDA RECONCILIATION (IN $M) 1Q26 4Q26 1Q27 Net Income - GAAP $5.6 $18.0 $16.0 Depreciation 3.8 4.0 4.1 Amortization 1.1 3.2 3.2 Share - Based Compensation 21.8 21.8 21.5 Restructuring and Related Charges 0.4 0.7 7.3 System Transition Costs 4.9 3.4 2.4 Litigation Costs 1.9 5.7 0.9 Other No

  25. Slide 25: GAAP to Non-GAAP Reconciliations – 2Q27 Guidance

    GAAP TO NON - GAAP RECONCILIATIONS – 2Q27 GUIDANCE Gross Margin Operating Margin Earnings Rate Rate per Share GAAP 61.8% - 62.3% 9.1% - 10.2% $0.19 - $0.22 Estimated Adjustments for: Share - Based Compensation 0.3% 6.6% - 6.7% 0.17 Amortization of Intangibles 0.1% 0.1% – System Transition Costs – 0.

  26. Slide 26: GAAP to Non-GAAP Reconciliations – FY27 Guidance

    GAAP TO NON - GAAP RECONCILIATIONS – FY27 GUIDANCE Gross Margin Operating Margin Earnings Rate Rate per Share GAAP 61.9% - 62.4% 9.2% - 9.7% $0.77 - $0.83 Estimated Adjustments for: Share - Based Compensation 0.3% 6.2% - 6.3% 0.66 – 0.67 Amortization of Intangibles 0.1% 0.1% 0.01 Restructuring and R

  27. Slide 27: Definitions

    DEFINITIONS SaaS ARR (SaaS Annual Recurring Revenue) SaaS ARR is an operating metric used by management to measure the annualized value of customer arrangements for our software sol utions, which are delivered via cloud - based subscription (such as Extreme Platform ONE, generally available July 202

  28. Slide 28: Definitions (Continued)

    DEFINITIONS (CONTINUED) Gross Debt Long - term and current portion of long - term debt as shown on the balance sheet plus unamortized debt issuance costs, as applicabl e. Net Cash Cash and Cash Equivalents minus Gross Debt. Free Cash Flow A measure of operating performance representing GAAP net cash

  29. Slide 29: ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED.

    29 ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED.

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