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p262Tejo

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to ______

Commission file number 000-25711

EXTREME NETWORKS, INC.

(Exact name of registrant as specified in its charter)




delaware		77-0430270
[State or other jurisdiction of incorporation or organization]		[I.R.S. Employer Identification No.]

2121 RDU Center Drive, Suite 300, Morrisville, North Carolina		27560
[Address of principal executive offices]		[Zip Code]

Registrant’s telephone number, including area code: (408) 579-2800

Securities registered pursuant to Section 12(b) of the Act:

     Title of each class

     Trading
Symbol(s)

     Name of each exchange on which registered

     Common Stock

     EXTR

     Nasdaq Global Select Market

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§-232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of January 23, 2026, the registrant had 134,269,540 shares of common stock, $0.001 par value per share, outstanding.

EXTREME NETWORKS, INC.

FORM 10-Q

QUARTERLY PERIOD ENDED

December 31, 2025

INDEX



		PAGE
PART I. CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Item 1.	Condensed Consolidated Financial Statements (Unaudited)	3

	Condensed Consolidated Balance Sheets as of December 31, 2025 and June 30, 2025	3

	Condensed Consolidated Statements of Operations for the three and six months ended December 31, 2025 and 2024	4

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended December 31, 2025 and 2024	5

	Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended December 31, 2025 and 2024	6

	Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2025 and 2024	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35

Item 4.	Controls and Procedures	36

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	37

Item 1A	Risk Factors	37

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37

Item 3.	Defaults Upon Senior Securities	37

Item 4.	Mine Safety Disclosure	37

Item 5.	Other Information	37

Item 6.	Exhibits	38

Signatures		39

PART I. CONDENSED CONSOLIDATED FINANCIAL INFORMATION

ITEM 1. Condensed Consolidated Financial Statements (Unaudited)

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited)


	December 31, 2025			June 30, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	219,791		$	231,745
Accounts receivable, net		152,427			126,708
Inventories		83,593			102,578
Prepaid expenses and other current assets		79,917			74,265
Total current assets		535,728			535,296
Property and equipment, net		50,228			44,366
Operating lease right-of-use assets, net		34,925			38,655
Goodwill		399,850			399,574
Intangible assets, net		4,682			6,541
Other assets		143,253			128,786
Total assets	$	1,168,666		$	1,153,218
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	64,814		$	63,939
Accrued compensation and benefits		66,527			62,895
Accrued warranty		9,628			9,684
Current portion of deferred revenue		328,164			325,078
Current portion of long-term debt, net of unamortized debt issuance costs of $698 and $729, respectively		16,802			14,271
Current portion of operating lease liabilities		12,233			11,456
Other accrued liabilities		66,974			100,552
Total current liabilities		565,142			587,875
Deferred revenue, less current portion		314,728			292,415
Long-term debt, less current portion, net of unamortized debt issuance costs of $937 and $1,276, respectively		154,063			163,724
Operating lease liabilities, less current portion		29,025			33,991
Deferred income taxes		7,196			7,033
Other long-term liabilities		2,600			2,596
Commitments and contingencies (Note 8)
Stockholders’ equity:
Convertible preferred stock, $0.001 par value, issuable in series, 2,000 shares authorized; none issued		—			—
Common stock, $0.001 par value, 750,000 shares authorized; 155,339 and 152,673 shares issued, respectively; 134,153 and 132,064 shares outstanding, respectively		155			153
Additional paid-in-capital		1,328,970			1,298,791
Accumulated other comprehensive loss		(9,477	)		(8,137	)
Accumulated deficit		(935,942	)		(949,429	)
Treasury stock at cost, 21,186 shares and 20,609 shares, respectively		(287,794	)		(275,794	)
Total stockholders’ equity		95,912			65,584
Total liabilities and stockholders’ equity	$	1,168,666		$	1,153,218

See accompanying notes to condensed consolidated financial statements.

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)


	Three Months Ended						Six Months Ended
	December 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Net revenues:
Product	$	197,765		$	172,261		$	391,806		$	334,545
Subscription and support		120,160			107,094			236,364			214,014
Total net revenues		317,925			279,355			628,170			548,559
Cost of revenues:
Product		87,000			72,604			173,128			142,006
Subscription and support		35,845			31,628			71,933			61,923
Total cost of revenues		122,845			104,232			245,061			203,929
Gross profit:
Product		110,765			99,657			218,678			192,539
Subscription and support		84,315			75,466			164,431			152,091
Total gross profit		195,080			175,123			383,109			344,630
Operating expenses:
Research and development		57,522			54,883			115,275			109,334
Sales and marketing		89,393			79,967			178,316			161,350
General and administrative		34,599			26,064			63,786			62,665
Restructuring and related charges		167			1,035			538			2,312
Amortization of intangible assets		407			509			907			1,021
Total operating expenses		182,088			162,458			358,822			336,682
Operating income		12,992			12,665			24,287			7,948
Interest income		1,132			839			2,329			1,685
Interest expense		(3,360	)		(4,179	)		(7,013	)		(8,601	)
Other income (expense), net		(360	)		661			(847	)		(60	)
Income before income taxes		10,404			9,986			18,756			972
Provision for income taxes		2,528			2,604			5,269			4,094
Net income (loss)	$	7,876		$	7,382		$	13,487		$	(3,122	)

Basic and diluted income (loss) per share:
Net income (loss) per share – basic	$	0.06		$	0.06		$	0.10		$	(0.02	)
Net income (loss) per share – diluted	$	0.06		$	0.06		$	0.10		$	(0.02	)

Shares used in per share calculation – basic		133,914			132,381			133,443			131,778
Shares used in per share calculation – diluted		135,166			134,107			135,379			131,778

See accompanying notes to condensed consolidated financial statements.

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)


	Three Months Ended						Six Months Ended
	December 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Net income (loss)	$	7,876		$	7,382		$	13,487		$	(3,122	)
Other comprehensive income (loss):
Derivatives designated as hedging instruments:
Net realized losses reclassified into earnings on foreign currency cash flow hedges		22			—			22			—
Change in unrealized gains and losses on foreign currency cash flow hedges		(204	)		—			(204	)		—
Net change from derivatives designated as hedging instruments		(182	)		—			(182	)		—
Net change in foreign currency translation adjustments		288			(7,972	)		(1,158	)		(3,871	)
Other comprehensive income (loss):		106			(7,972	)		(1,340	)		(3,871	)
Total comprehensive income (loss)	$	7,982		$	(590	)	$	12,147		$	(6,993	)

See accompanying notes to condensed consolidated financial statements.

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(In thousands)

(Unaudited)


	Common Stock				Additional			Accumulated Other			Treasury Stock						Accumulated			Total Stockholders'
	Shares		Amount		Paid-In-Capital			Comprehensive Loss			Shares			Amount			Deficit			Equity
Balance at September 30, 2024		150,265	$	150	$	1,234,220		$	(11,382	)		(18,219	)	$	(237,801	)	$	(952,466	)	$	32,721
Net income		—		—		—			—			—			—		$	7,382			7,382
Other comprehensive loss		—		—		—			(7,972	)		—			—			—			(7,972	)
Issuance of common stock from equity incentive plans, net of tax withholdings		601		1		(2,376	)		—			—			—			—			(2,375	)
Share-based compensation		—		—		21,452			—			—			—			—			21,452
Balance at December 31, 2024		150,866	$	151	$	1,253,296		$	(19,354	)		(18,219	)	$	(237,801	)	$	(945,084	)	$	51,208

Balance at June 30, 2024		148,503	$	149	$	1,220,379		$	(15,483	)		(18,219	)	$	(237,801	)	$	(941,962	)	$	25,282
Net loss		—		—		—			—			—			—			(3,122	)		(3,122	)
Other comprehensive loss		—		—		—			(3,871	)		—			—			—			(3,871	)
Issuance of common stock from equity incentive plans, net of tax withholdings		2,363		2		(8,302	)		—			—			—			—			(8,300	)
Share-based compensation		—		—		41,219			—			—			—			—			41,219
Balance at December 31, 2024		150,866	$	151	$	1,253,296		$	(19,354	)		(18,219	)	$	(237,801	)	$	(945,084	)	$	51,208

Balance at September 30, 2025		154,839	$	155	$	1,309,603		$	(9,583	)		(21,186	)	$	(287,794	)	$	(943,818	)	$	68,563
Net income		—		—		—			—			—			—			7,876			7,876
Other comprehensive income		—		—		—			106			—			—			—			106
Issuance of common stock from equity incentive plans, net of tax withholdings		500		—		(3,532	)		—			—			—			—			(3,532	)
Share-based compensation		—		—		22,899			—			—			—			—			22,899
Balance at December 31, 2025		155,339	$	155	$	1,328,970		$	(9,477	)		(21,186	)	$	(287,794	)	$	(935,942	)	$	95,912

Balance at June 30, 2025		152,673	$	153	$	1,298,791		$	(8,137	)		(20,609	)	$	(275,794	)	$	(949,429	)	$	65,584
Net income		—		—		—			—			—			—			13,487			13,487
Other comprehensive loss		—		—		—			(1,340	)		—			—			—			(1,340	)
Issuance of common stock from equity incentive plans, net of tax withholdings		2,666		2		(14,500	)		—			—			—			—			(14,498	)
Repurchase of stock		—		—		—			—			(577	)		(12,000	)		—			(12,000	)
Share-based compensation		—		—		44,679			—			—			—			—			44,679
Balance at December 31, 2025		155,339	$	155	$	1,328,970		$	(9,477	)		(21,186	)	$	(287,794	)	$	(935,942	)	$	95,912

See accompanying notes to condensed consolidated financial statements.

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Six Months Ended
	December 31, 2025			December 31, 2024
Cash flows from operating activities:
Net income (loss)	$	13,487		$	(3,122	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation		7,793			7,804
Amortization of intangible assets		1,870			2,251
Amortization of cloud computing implementation costs		1,025			—
Reduction in carrying amount of right-of-use asset		5,104			4,894
Provision for credit losses		320			27
Share-based compensation		44,679			41,219
Deferred income taxes		414			(987	)
Provision for (benefit from) excess and obsolete inventory		1,270			(271	)
Non-cash interest expense		609			594
Other		951			(801	)
Changes in operating assets and liabilities:
Accounts receivable, net		(26,039	)		(28,083	)
Inventories		15,821			411
Prepaid expenses and other assets		(25,724	)		(9,969	)
Accounts payable		766			1,177
Accrued compensation and benefits		3,342			16,995
Operating lease liabilities		(5,554	)		(5,375	)
Deferred revenue		27,920			17,421
Other current and long-term liabilities		(31,914	)		(4,067	)
Net cash provided by operating activities		36,140			40,118
Cash flows from investing activities:
Capital expenditures for property, equipment and capitalized software development costs		(13,922	)		(12,325	)
Net cash used in investing activities		(13,922	)		(12,325	)
Cash flows from financing activities:
Borrowings under revolving facility		25,000			—
Payments on revolving facility		(25,000	)		—
Payments on debt obligations		(7,500	)		(5,000	)
Payments on debt financing costs		—			(695	)
Repurchase of common stock		(12,000	)		—
Payments for tax withholdings, net of proceeds from issuance of common stock		(14,498	)		(8,300	)
Net cash used in financing activities		(33,998	)		(13,995	)
Foreign currency effect on cash and cash equivalents		(174	)		(175	)
Net increase (decrease) in cash and cash equivalents		(11,954	)		13,623

Cash and cash equivalents at beginning of period		231,745			156,699
Cash and cash equivalents at end of period	$	219,791		$	170,322

See accompanying notes to condensed consolidated financial statements.

EXTREME NETWORKS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Description of Business and Basis of Presentation

Extreme Networks, Inc., together with its subsidiaries (collectively referred to as “Extreme” or the “Company”), is a leader in providing software-driven networking solutions for enterprise customers. The Company conducts its sales and marketing activities on a worldwide basis through distributors, resellers, and the Company’s field sales organization. Extreme was incorporated in California in 1996 and reincorporated in Delaware in 1999.

The unaudited condensed consolidated financial statements of Extreme included herein have been prepared under the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted under such rules and regulations. The condensed consolidated balance sheet at June 30, 2025 was derived from audited financial statements as of that date but does not include all disclosures required by generally accepted accounting principles for complete financial statements. These interim financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025.

The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations and cash flows for the interim periods presented and the financial condition of Extreme at December 31, 2025. The results of operations for the three and six months ended December 31, 2025 are not necessarily indicative of the results that may be expected for fiscal 2026 or any future periods.

Fiscal Year

The Company uses a fiscal calendar year ending on June 30. All references herein to “fiscal 2026” represent the fiscal year ending June 30, 2026. All references herein to “fiscal 2025” represent the fiscal year ended June 30, 2025.

Principles of Consolidation

The unaudited condensed consolidated financial statements include the accounts of Extreme and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated.

The Company predominantly uses the United States Dollar as its functional currency. The functional currency for certain of its foreign subsidiaries is the local currency. For those subsidiaries that operate in a local functional currency environment, all assets and liabilities are translated to United States Dollars at current month end rates of exchange and revenues, and expenses are translated using the monthly average rate.

Accounting Estimates

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates.

Summary of Significant Accounting Policies

For a description of significant accounting policies, see Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025. There have been no material changes to the Company’s significant accounting policies since the filing of the Annual Report on Form 10-K.

Recently Adopted Accounting Pronouncements

There were no recently adopted accounting standards which would have a material effect on the Company's condensed consolidated financial statements and accompanying disclosures.

Recently Issued Accounting Pronouncements Not Yet Adopted

In December 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU provides clarifications intended to improve the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures. The standard introduces a new disclosure principle for interim reporting to help entities determine whether disclosures not specified in Topic 270 should be provided in interim periods. ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, and interim periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2025-11 on its consolidated financial statements and related disclosures.

In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. This ASU amends certain aspects of existing guidance to more closely align hedge accounting with the economics of the Company’s risk management activities. ASU 2025-09 is effective for fiscal years beginning after December 15, 2026, and interim periods within those annual reporting periods and should be applied on a prospective basis. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2025-09 on its consolidated financial statements and related disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This ASU removes all references to prescriptive and sequential software development stages and requires entities to begin capitalizing software costs when management authorizes and commits to funding the software project, and it is probable that the project will be completed, and the software will be used for its intended purpose. The amendments in this ASU are effective for fiscal years beginning after December 15, 2027, and interim periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2025-06 on its consolidated financial statements and related disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets to address challenges encountered when applying the guidance in Topic 326, Financial Instruments—Credit Losses, to current accounts receivable and current contract assets arising from transactions accounted for under Topic 606, Revenue from Contracts with Customers. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2025-05 on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses to improve disclosures about public business entities’ expenses and to provide more detailed information around the types of expenses included in commonly presented expense captions. Additionally, in January 2025 the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods for fiscal years beginning after December 15, 2027, and can be applied on a prospective basis or on a retrospective basis to all periods presented. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2024-03 and ASU 2025-01 on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures to enhance income tax disclosures primarily through changes in the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 on a prospective basis. The Company will be adopting ASU 2023-09 for fiscal year ended June 30, 2026.

Revenues

The Company accounts for revenues in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. The Company derives the majority of its revenues from sales of its networking equipment, with the remaining revenues generated from sales of subscription and support, which primarily includes software subscriptions delivered as software as a service (“SaaS”) and additional revenues from maintenance contracts, professional services and training for its products. The Company sells its products, SaaS and maintenance contracts to customers and partners in two distribution channels, or tiers. The first tier consists of a limited number of independent distributors that stock the Company's products and sell primarily to resellers. The second tier of the distribution channel consists of non-stocking distributors and value-added resellers that sell primarily to end-users. Products and subscription and support may be sold separately or in bundled packages.

Revenue Recognition

Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Certain of the Company’s contracts have multiple performance obligations, as the promise to transfer individual goods or services is separately identifiable from other promises in the contracts and, therefore, is distinct. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on its relative standalone selling price. The stand-alone selling prices are determined based on the prices at which the Company separately sells these products. For items that are not sold separately, the Company estimates the stand-alone selling prices using other observable inputs.

The Company’s performance obligations are satisfied at a point in time or over time as the customer receives and consumes the benefits provided. Substantially all of the Company’s product sales revenues are recognized at a point in time. Substantially all of the Company’s subscription and support revenues are recognized over time. For revenues recognized over time, the Company primarily uses an input measure, days elapsed, to measure progress.

As of December 31, 2025, the Company had $642.9 million of remaining performance obligations, which is primarily comprised of deferred SaaS subscription and deferred support revenues. The Company expects to recognize approximately 30% of its deferred revenue as revenue in the remainder of fiscal 2026, an additional 34% in fiscal 2027, and the remaining 36% of the balance thereafter.

Contract Balances. The timing of revenue recognition, billings and cash collections results in billed accounts receivable and deferred revenue in the condensed consolidated balance sheets. Services provided under renewable SaaS subscription and support arrangements of the Company are billed in accordance with agreed-upon contractual terms, which are either billed fully at the inception of contract or at periodic intervals (e.g., quarterly or annually). The Company generally receives payments from its customers in advance of services being provided, resulting in deferred revenues. These liabilities are reported on the condensed consolidated balance sheets on a contract-by-contract basis at the end of each reporting period.

Revenue recognized for the three months ended December 31, 2025 and 2024 that was included in the deferred revenue balance at the beginning of each period was $107.6 million and $101.3 million, respectively. Revenue recognized for the six months ended December 31, 2025 and 2024 that was included in the deferred revenue balance at the beginning of each period was $193.7 million and $183.3 million, respectively.

Contract Costs. The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. Management expects that commission fees paid to sales representatives as a result of obtaining subscription and support contracts and contract renewals are recoverable and therefore the Company’s condensed consolidated balance sheets included capitalized balances in the amount of $29.4 million and $26.9 million as of December 31, 2025 and June 30, 2025, respectively. Capitalized commissions are included within other assets in the condensed consolidated balance sheets. Capitalized commission fees are amortized on a straight-line basis over the average period of service contracts of approximately three years, and are included in “Sales and marketing” in the accompanying condensed consolidated statements of operations. Amortization recognized during the three months ended December 31, 2025 and 2024 was $3.5 million and $3.1 million, respectively. Amortization recognized during the six months ended December 31, 2025 and 2024 was $6.9 million and $6.1 million, respectively.

Estimated Variable Consideration. There were no material changes in the current period to the estimated variable consideration for performance obligations, which were satisfied or partially satisfied during previous periods.

Revenues by Geography

The Company operates in three geographic regions: Americas, EMEA (Europe, Middle East and Africa) and APAC (Asia Pacific). The following table presents the Company’s net revenues disaggregated by geographic region (in thousands):


	Three Months Ended					Six Months Ended
		December 31, 2025		December 31, 2024			December 31, 2025		December 31, 2024
Americas:
United States		$	135,173	$	119,678		$	271,557	$	272,931
Other			13,218		11,710			26,093		23,892
Total Americas			148,391		131,388			297,650		296,823
EMEA			140,389		128,257			261,635		213,175
APAC			29,145		19,710			68,885		38,561
Total net revenues		$	317,925	$	279,355		$	628,170	$	548,559

Geographic Concentrations

For the three and six months ended December 31, 2025 the Company generated 15% and 13% of its net revenues from the Netherlands, respectively. For the three and six months ended December 31, 2024, the Company generated 15% and 11% of its net revenues from the Netherlands, respectively. No other foreign country accounted for 10% or more of the Company's net revenues for the three and six months ended December 31, 2025 and 2024.

Customer Concentrations

The Company performs ongoing credit evaluations of its customers and generally does not require collateral in exchange for credit.

The following table presents customers accounting for 10% or more of the Company’s net revenues for the periods indicated below:


	Three Months Ended		Six Months Ended
	December 31, 2025	December 31, 2024	December 31, 2025	December 31, 2024
Westcon Group, Inc.	22%	22%	19%	18%
TD Synnex Corporation	17%	17%	16%	19%
Jenne, Inc.	16%	15%	17%	18%

The following table presents major customers accounting for 10% or more of the Company’s net accounts receivable balance:



	December 31, 2025	June 30, 2025
Jenne, Inc.	22%	22%
Westcon Group, Inc.	16%	*
TD Synnex Corporation	10%	*
Ericsson, Inc.	*	11%
* Less than 10% of accounts receivable

Balance Sheet Accounts

Cash and Cash Equivalents

The Company considers highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents.

The following table summarizes the Company's cash and cash equivalents (in thousands):


	December 31, 2025		June 30, 2025
Cash	$	213,605	$	225,656
Cash equivalents		6,186		6,089
Total cash and cash equivalents	$	219,791	$	231,745

Inventories

The following table summarizes the Company's inventory by category (in thousands):


	December 31, 2025		June 30, 2025
Finished goods	$	49,022	$	57,770
Raw materials		34,571		44,808
Total inventories	$	83,593	$	102,578

Property and Equipment, Net

The following table summarizes the Company's property and equipment, net by category (in thousands):


	December 31, 2025			June 30, 2025
Computers and equipment	$	85,566		$	80,782
Software		64,227			62,089
Office equipment, furniture and fixtures		8,137			8,031
Leasehold improvements		48,133			47,962
Total property and equipment		206,063			198,864
Less: accumulated depreciation and amortization		(155,835	)		(154,498	)
Property and equipment, net	$	50,228		$	44,366

Deferred Revenue

Deferred revenue represents invoiced amounts for deferred subscription and support and other deferred revenue including professional services and training when the revenue recognition criteria have not been met.

Guarantees and Product Warranties

The majority of the Company’s hardware products are shipped with either a one-year warranty or a limited lifetime warranty, and software products receive a 90-day warranty. Upon shipment of products to its customers, the Company estimates expenses for the cost to repair or replace products that may be returned under warranty and accrues a liability in cost of product revenues for this amount. The determination of the Company’s warranty requirements is based on actual historical experience with the product or product family, estimates of repair and replacement costs, and any product warranty problems that are identified after shipment. The Company estimates and adjusts these accruals at each balance sheet date in accordance with changes in these factors.

The following table summarizes the activity related to the Company’s product warranty liability during the following periods (in thousands):


	Three Months Ended						Six Months Ended
	December 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Balance at beginning of period	$	9,625		$	10,239		$	9,684		$	10,942
New warranties issued		2,767			3,045			5,792			5,531
Warranty expenditures		(2,764	)		(3,248	)		(5,848	)		(6,437	)
Balance at end of period	$	9,628		$	10,036		$	9,628		$	10,036

To facilitate sales of its products in the normal course of business, the Company indemnifies its resellers and end-user customers with respect to certain matters. The Company has agreed to hold the customer harmless against losses arising from intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. It is not possible to estimate the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on its operating results or financial position.

Concentrations

The Company may be subject to concentration of credit risk as a result of certain financial instruments consisting of accounts receivable. See Note 3, Revenues, for the Company’s accounts receivable concentration. The Company does not invest an amount exceeding 10% of its combined cash in the securities of any one obligor or maker, except for obligations of the United States government, obligations of United States government agencies, and money market accounts.

Fair Value Measurements

A three-tier fair value hierarchy is utilized to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels are defined as follows:

•

Level 1 Inputs - unadjusted quoted prices in active markets for identical assets or liabilities;

•

Level 2 Inputs - quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and

•

Level 3 Inputs - unobservable inputs reflecting the Company’s own assumptions in measuring the asset or liability at fair value.

The following table presents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis (in thousands):


December 31, 2025	Level 1		Level 2		Level 3		Total
Assets
Certificates of deposit	$	—	$	6,186	$	—	$	6,186
Foreign currency derivatives not designated as hedging instruments		—		124		—		124
Total assets measured at fair value	$	—	$	6,310	$	—	$	6,310
Liabilities
Foreign currency derivatives not designated as hedging instruments	$	—	$	45	$	—	$	45
Foreign currency derivatives designated as hedging instruments		—		182		—		182
Total liabilities measured at fair value	$	—	$	227	$	—	$	227


June 30, 2025	Level 1		Level 2		Level 3		Total
Assets
Certificates of deposit	$	—	$	6,089	$	—	$	6,089
Foreign currency derivatives not designated as hedging instruments		—		298		—		298
Total assets measured at fair value	$	—	$	6,387	$	—	$	6,387
Liabilities
Foreign currency derivatives not designated as hedging instruments	$	—	$	11	$	—	$	11
Total liabilities measured at fair value	$	—	$	11	$	—	$	11

Level 1 Assets and Liabilities:

The Company’s financial instruments consist of cash, accounts receivable, accounts payable, and accrued liabilities. The Company states accounts receivable, accounts payable, and accrued liabilities at their carrying value, which approximates fair value due to the short time to the expected receipt or payment.

Level 2 Assets and Liabilities:

The Company's level 2 assets consist of certificates of deposit and derivative instruments. Certificates of deposit do not have regular market pricing and are considered Level 2. The fair value of derivative instruments under the Company’s foreign exchange forward contracts and zero-cost collar contracts are estimated based on valuations provided by alternative pricing sources supported by observable inputs, which is considered Level 2.

As of December 31, 2025 and June 30, 2025, the Company had investment in certificates of deposit of $6.2 million and $6.1 million, respectively, with maturity of three months at the date of purchase, which are recorded as cash equivalents in the condensed

consolidated balance sheets. The Company considers these cash equivalents to be available-for-sale and, as of December 31, 2025 and June 30, 2025, their fair value approximated their amortized cost.

As of December 31, 2025 and June 30, 2025, the Company had foreign exchange forward contracts that were not designated as hedging instruments with a total notional principal amount of $68.4 million and $57.2 million, respectively. Changes in the fair value of these foreign exchange forward contracts not designated as hedging instruments are included in “Other income (expense), net” in the condensed consolidated statements of operations. For the three months ended December 31, 2025 and 2024, the net gains and losses recorded in the condensed consolidated statement of operations were net losses of $0.4 million and $2.1 million, respectively. For the six months ended December 31, 2025 and 2024, the net gains and losses recorded in the condensed consolidated statement of operations were net losses of $1.8 million and $1.3 million, respectively. See Note 12, Derivatives and Hedging, for additional information.

As of December 31, 2025, the Company had zero-cost collar contracts that were designated as hedging instruments with a total notional principal amount of $55.1 million. As of June 30, 2025, there were no outstanding zero-cost collar contracts that were designated as hedging instruments. The changes in fair value of these zero-cost collar contracts designated as hedging instruments are included in “Accumulated other comprehensive loss” in the condensed consolidated balance sheets. Amounts recorded in “Accumulated other comprehensive loss” related to the changes in the fair value of the zero-cost collar contracts are reclassified into the condensed consolidated statement of operations in the period that the hedged item impacts earnings. For each of the three and six months ended December 31, 2025, these contracts had unrealized losses of $0.2 million which are recorded as a component of "Accumulated other comprehensive loss". See Note 12, Derivatives and Hedging, for additional information.

The fair value of borrowings under the Amended Credit Agreement (as defined in Note 7) is estimated based on valuations provided by alternative pricing sources supported by observable inputs which is considered Level 2. Since the interest rate is variable in the Amended Credit Agreement, the fair value approximates the face amount of the Company’s indebtedness of $172.5 million and $180.0 million as of December 31, 2025 and June 30, 2025, respectively.

Level 3 Assets and Liabilities:

Certain of the Company’s assets, including intangible assets and goodwill, are measured at fair value on a non-recurring basis if impairment is indicated.

As of December 31, 2025 and June 30, 2025, the Company did not have any assets or liabilities that were considered Level 3.

There were no transfers of assets or liabilities between Level 1, Level 2, or Level 3 during the three and six months ended December 31, 2025 and 2024. There were no impairments recorded for the three and six months ended December 31, 2025 and 2024.

Intangible Assets and Goodwill

Intangible Assets

The following tables summarize the components of gross and net intangible assets (in thousands, except years):



	Weighted Average Remaining Amortization	Gross Carrying		Accumulated		Net Carrying
	Period	Amount		Amortization		Amount
December 31, 2025
Developed technology	2.7 years	$	170,538	$	166,877	$	3,661
Customer relationships	0.6 years		66,630		65,681		949
Trade names	0.0 years		10,700		10,700		—
License agreements	1.0 years		1,282		1,210		72
Total intangible assets, net*		$	249,150	$	244,468	$	4,682
* The carrying amount of foreign intangible assets are affected by foreign currency translation.


	Weighted Average
	Remaining Amortization	Gross Carrying		Accumulated		Net Carrying
	Period	Amount		Amortization		Amount
June 30, 2025
Developed technology	3.0 years	$	170,480	$	165,908	$	4,572
Customer relationships	1.0 years		64,824		62,961		1,863
Trade names	0.0 years		10,700		10,700		—
License agreements	1.4 years		1,282		1,176		106
Total intangible assets, net*		$	247,286	$	240,745	$	6,541
* The carrying amount of foreign intangible assets are affected by foreign currency translation.

The following table summarizes the amortization expense of intangible assets for the periods presented (in thousands):


	Three Months Ended				Six Months Ended
	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Amortization of intangible assets in “Total cost of revenues”	$	352	$	606	$	963	$	1,230
Amortization of intangible assets in “Total operating expenses”		407		509		907		1,021
Total amortization expense	$	759	$	1,115	$	1,870	$	2,251

The amortization expense that is recognized in “Total cost of revenues” primarily consists of amortization related to developed technology and license agreements.

The estimated future amortization expense to be recorded for each of the respective future fiscal years is as follows (in thousands):


	Amount
For the fiscal year ending June 30:
2026 (the remainder of fiscal 2026)	$	1,524
2027		1,524
2028		1,353
2029		281
Total	$	4,682

Goodwill

The Company had goodwill in the amount of $399.9 million and $399.6 million as of December 31, 2025 and June 30, 2025, respectively. The change in goodwill during the six months ended December 31, 2025 is primarily due to foreign currency translation adjustments which are recorded as a component of "Accumulated other comprehensive loss" in the condensed consolidated balance sheets.

Debt

The Company’s debt is comprised of the following (in thousands):


	December 31, 2025	June 30, 2025
Current portion of long-term debt:

EXTREME NETWORKS INC 10-Q