Calix, Inc. (CALX)
NEUTRALFundamental
68
Price
$40.05
Market Cap
$2.54B
Part 1 · What the company is worth
Overview
Calix sells the equipment, software and cloud platform that internet, phone and cable companies use to deliver broadband to homes and businesses. Roughly 1,600 mostly small and mid-sized providers use its systems to run their networks and its software to sell and support subscriber services such as security and Wi-Fi management. The U.S. and Canada, boosted by government broadband subsidy programs, account for the large majority of sales.
How it makes money
Revenue comes mostly from selling network appliances — the physical boxes that carry broadband into homes — recognized when shipped, plus a smaller but faster-growing stream of software and platform subscriptions billed over time. The appliance business still funds most of the company today, but management is steering providers toward the subscription software, which carries higher margins and recurs, rather than being a one-time equipment sale.
Revenue by segment
Physical broadband access equipment installed in the network and at the customer premises, sold upfront when shipped.
Cloud platform subscriptions, managed Wi-Fi and subscriber-facing apps billed over time — the smaller, faster-growing part of the business.
What drives demand
Moderately cyclicalPurchases are tied to broadband providers' own capital spending plans, which follow both their subscriber growth ambitions and the availability of government funding programs for rural and underserved areas. A change in public subsidy timing can move orders forward or back independent of underlying demand for internet access.
Key risks
- Reliance on third-party manufacturing — Calix depends on outside manufacturers and sole- or limited-source suppliers, many concentrated in Asia, to build its equipment. A disruption at one of these partners can delay shipments the company cannot quickly replace.
- Competition on price and functionality — The company competes in a broadband equipment and software market where rivals with greater financial resources can undercut it on price, and it expects at least two fiber providers to be competing for subscribers in most markets.
- Dependence on public broadband funding — A meaningful part of demand rides on public and private funding programs for broadband buildout in underserved areas; changes in the size, timing or rules of those programs can delay or reduce customer orders.
Customer concentration
The company states that no single customer accounted for more than 10% of revenue in the periods it reports, spreading demand across roughly 1,600 broadband providers rather than a handful of large accounts.
The case for
Buyers argue that broadband providers are steadily adopting Calix's cloud platform on top of its equipment, that no single customer concentration risk exists across roughly 1,600 accounts, and that government-funded rural buildout gives the appliance business years of visible demand.
The case against
Sellers fear that the appliance business still drives most revenue and remains exposed to lumpy capital spending by small providers, that larger competitors can undercut Calix on price, and that a slowdown or redesign of public broadband subsidy programs would remove a meaningful source of near-term demand.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$1.11B
Trailing 12 months (through 6/27/2026)
Net Income
$51M
Trailing 12 months (through 6/27/2026)
Free Cash Flow
$116M
Total Equity
$859M
Total Liabilities
$199M
Current Ratio
2.83
Interest Coverage
-
Debt/EBITDA
0.36
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$31.17
Current Price
$40.05
Margin of Safety
-28.5%
Fair Value Range
$20.26 - $42.08
Estimation Methods
Valuation Metrics
P/E Ratio
53.07
ROE
2.1%
P/B Ratio
3.53
P/FCF
29.34
Gross Margin
56.6%
ROIC
6.5%
Profitability Radar
Value Creation (Economic Moat)
ROIC
6.5%
WACC
11.7%
ROIC − WACC
-5.1 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (17)
- EPS shows upward trend
- Price CAGR 17.95%
- ROIC 6.5%
- Gross Margin 56.6%
- P/FCF 29.34
- Debt/Equity ratio
- Operating Margin 5.5%
- Positive Free Cash Flow
- Current Ratio
- Debt/EBITDA
- Return on Tangible Assets
- Revenue Growth 5Y 13.1%
- Analyst Consensus 86% Buy
- Earnings Surprise avg 10.2%
- Earnings Quality (OCF/NI) 2.14
- Net Margin Trend 4.6% vs -3.1%
- Piotroski F-Score 6/9
Failed (7)
- P/B Ratio 3.53
- CapEx intensity
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- ROE 6.5%
- Share Dilution 4.1%
Unavailable (3)
- Dividend Payout NaN%
- Interest Coverage
- PEG Ratio (need PE > 0 and growth > 0)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Issuing new shares, diluting ownership
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Michael Weening | CEO, President & Director | 56 |
| Mr. Cory J. Sindelar CPA | Chief Financial Officer | 56 |
| Mr. John Durocher | Chief Operations Officer | 58 |
| Mr. Shane Todd-Marshall Eleniak | Chief Product Officer | 57 |
| Ms. Nancy Fazioli | Vice President of Investor Relations | - |
| Mr. Douglas W. McNitt | Executive VP, General Counsel & Corporate Secretary | 60 |
| Mr. Mark Dressler | Chief Revenue Officer | - |
| Ms. Martha Galley | Chief Sustainability Officer | - |
| Ms. Parul Kapoor | Chief Talent & Culture Officer | - |
| Mr. Jonathan Lindsell | Chief Customer Officer | - |
Audit Risk
2
Board Risk
6
Compensation Risk
6
Shareholder Rights Risk
7
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for CALX, sourced from Markets Gazette.
- 4/21/2026NEUTRALCalix Q1 2026 Earnings Call Transcript
Calix Inc. held its Q1 2026 Earnings Call on April 21, 2026. While the transcript is available, no specific financial figures, forward-looking statements, or significant market-moving announcements were detailed in the provided summary. The call likely covered operational updates, segment performance, and strategic initiatives. Investors would typically look for revenue growth, profitability metrics, and guidance for future quarters. Without these details, the immediate market impact remains neutral, pending further analysis of the full transcript for any subtle shifts in performance or outlook.
- 3/4/2026POSITIVEFund Discloses New $6 Million Bet on Calix Amid 55% Stock Surge
An investment fund has disclosed a new $6 million long bet on Calix Inc. (CALX), a move that comes as the company's stock has already surged 55%. Calix, which delivers cloud-based platforms and analytics to broadband service providers across U.S. and international markets, appears to be benefiting from renewed investor interest. This significant fund investment suggests strong conviction in the company's future growth potential, despite the recent rally. For investors, this could signal further capital appreciation opportunities.
via Markets Gazette