Extreme Networks Reports 2% Revenue Growth to $1.14 Billion for Fiscal Year 2025

Extreme Networks, Inc. reported a modest increase in financial performance for the fiscal year ending June 30, 2025, with net revenues reaching $1.14 billion, a 2% rise from $1.12 billion in the previous fiscal year. Product revenues grew slightly by 0.7% to $704.5 million, while subscription and support revenues increased by 4.2% to $435.6 million. The company achieved a total gross margin of 62.2%, up from 56.5% in fiscal 2024, and reported an operating income of $35.9 million, a significant recovery from an operating loss of $65.2 million in the prior year. However, the company still recorded a net loss of $7.5 million, an improvement from the $86 million loss reported in fiscal 2024.

The company has made strategic advancements, including the launch of its Extreme Platform ONE, which integrates networking, security, and AI solutions into a single platform. This platform aims to simplify operations for enterprises and is expected to drive future growth. Additionally, Extreme Networks has focused on restructuring efforts to enhance operational efficiency, resulting in a reduction of restructuring charges to $1.5 million in fiscal 2025 from $36.3 million in fiscal 2024. The company also reported a cash flow from operating activities of $152 million, a substantial increase from $55.5 million in the previous year.

Operationally, Extreme Networks has seen a geographic shift in its revenue streams, with international sales accounting for 52% of total revenues, up from 48% in fiscal 2024. The Americas region generated $596.7 million, a decrease from the previous year, while EMEA revenues increased by 7% to $451.6 million, and APAC revenues surged by 35.8% to $91.7 million. The company’s total employee count stood at 2,811 as of June 30, 2025, with a significant portion dedicated to research and development.

Looking ahead, Extreme Networks anticipates continued growth in its subscription and support services, particularly as enterprises increasingly adopt cloud-based networking solutions. The company estimates its total addressable market for networking solutions exceeded $42 billion in 2024, with expectations for growth at a compound annual growth rate of approximately 7% through 2029. However, the company also faces challenges, including intense competition in the networking equipment market and potential supply chain disruptions. The management has expressed optimism about leveraging its technological advancements and strategic initiatives to navigate these challenges and drive future profitability.