Extreme Networks Inc (0IJW.L) Q1 2026 Earnings Report

Extreme Networks reported QQ1 2026 revenue of $310.245 million, delivering a solid gross margin of 60.61% and a positive operating income of $11.3 million. Net income rose to $5.61 million with basic earnings per share of $0.04, underscoring continued profitability in a software-enabled networking environment. The quarter also highlighted a favorable YoY growth trajectory (revenue up 15.25% YoY) and a QoQ acceleration in operating metrics (QoQ revenue up 1.06%, EBITDA margin ~5.45%). Despite these top-line and margin signals, the company generated negative free cash flow of approximately $14.0 million driven by working capital movements and sizable stock-based compensation, with cash at period end of $209.0 million and a net cash position (net debt) of about -$125.5 million. Balance sheet remains asset-light with meaningful goodwill and a lean equity base, signaling a strong liquidity runway but potential impairment and capitalization considerations if operating momentum falters.