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Extreme Networks, Inc. (EXTR)

NEUTRAL
TechnologyCommunication EquipmentUnited States

Fundamental

66

Price

$22.56

Market Cap

$2.93B

Part 1 · What the company is worth

Overview

Extreme Networks, Inc., together with its subsidiaries, develops, markets, and sells network infrastructure equipment and related software in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It offers ExtremeCloud IQ, a machine learning/AI powered, wired and wireless cloud network management solution that offers visibility and control over users, devices, and applications; ExtremeCloud IQ-Site Engine which extends cloud management to non-cloud native and multi-vendor devices; ExtremeCloud IQ Essentials provides wireless intrusion prevention system, location services, and guest management services; and ExtremeCloud SD-WAN, a software-defined wide area networks solution offered as an all-inclusive subscription, which includes hardware, the cloud-based SD-WAN service, support and maintenance, and customer success support. The company also provides indoor and outdoor Wi-Fi 7 and prior generation Aps; WIPS solutions; switch products; Cloud Native Platforms and Applications for Service Providers; and ExtremeCloud Universal ZTNA. In addition, the company offers customer and support services, such as support services for end-users, resellers, and distributors; and premier, professional, and education services. It sells its products through original equipment manufacturers, strategic relationships, distributors, resellers, and field sales. The company serves mid-market and enterprise customers, and services providers. Extreme Networks, Inc., was incorporated in 1996 and is headquartered in Morrisville, North Carolina.

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Direct competitors

Who this company fights with for the same customers

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No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$1.28B

Trailing 12 months (through 6/30/2026)

Net Income

$42M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$95M

Total Equity

$89M

Total Liabilities

$1.09B

Current Ratio

0.93

Interest Coverage

4.55

Debt/EBITDA

2.34

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

Undervalued

Fair Value

$42.28

Current Price

$22.56

Margin of Safety

+46.6%

Fair Value Range

$27.48 - $57.08

Estimation Methods

Analyst Target:$33.50
DCF:$77.44
PE-based:$7.08
Graham Growth:$15.96
EPV:$2.61
Analyst Consensus:Strong Buy (12B / 2H / 0S)
Last Earnings Surprise:+7.96%

Valuation Metrics

P/E Ratio

72.19

ROE

47.5%

P/B Ratio

32.97

P/FCF

30.66

Gross Margin

61.5%

ROIC

8.5%

Profitability Radar

Value Creation (Economic Moat)

ROIC

8.5%

WACC

13.7%

ROIC − WACC

-5.2 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (16)

  • EPS shows upward trend
  • Price CAGR 16.43%
  • ROIC 8.5%
  • Gross Margin 61.5%
  • Positive Free Cash Flow
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 50.7%
  • Analyst Consensus 86% Buy
  • Earnings Surprise avg 5.4%
  • PEG Ratio 0.92
  • Earnings Quality (OCF/NI) 2.92
  • Net Margin Trend 3.3% vs -0.7%
  • Piotroski F-Score 7/9

Failed (10)

  • P/FCF 30.66
  • P/B Ratio 32.97
  • Debt/Equity ratio
  • Operating Margin 4.9%
  • CapEx intensity
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Revenue Growth 5Y 4.9%
  • Share Dilution 9.2%

Unavailable (1)

  • Dividend Payout NaN%

Piotroski F-Score

7/9

Strong financial health

score
criteria

Earnings Quality

2.92

High quality: earnings backed by cash

Share Dilution

9.2%

Issuing new shares, diluting ownership

Governance

Executive Team

NameTitleAge
Mr. Edward B. Meyercord IIIPresident, CEO & Executive Director60
Mr. Kevin RhodesExecutive VP of Finance & CFO56
Ms. Katayoun Motiey J.D.Chief Legal, Administrative & Sustainability Officer, Corporate Secretary and General Counsel-
Mr. Syed Nabeel Anwar BukhariPresident of AI Platforms, EVP & Chief Technology Officer48
Ms. Anisha VaswaniChief Information & Customer Officer-
Mr. Stanley KovlerSenior Vice President of Finance & Corporate Development-
Ms. Monica KumarExecutive VP & Chief Marketing Officer-
Ms. Kimberley BasnightChief People Officer-
Mr. Norman J. Rice IIIChief Commercial Officer51
Ms. Gina M. ChristopherDeputy General Counsel-

Audit Risk

1

Board Risk

3

Compensation Risk

4

Shareholder Rights Risk

4

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 EXTR, sourced from Markets Gazette.

No recent news for EXTR.