Extreme Networks, Inc. (EXTR): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the strategy behind Extreme Networks, Inc.'s aggressive pivot to AI-driven cloud networking, and frankly, the fiscal year 2025 numbers give us a crystal-clear view of the transformation underway. As someone who spent a decade leading analysis at firms like BlackRock, I see a company that booked $1.14 billion in total net revenue for FY25 while simultaneously growing their subscription base to $207.6 million in Annual Recurring Revenue (ARR). This shift is supported by a healthy $231.7 million cash balance as of Q4 FY2025, which is crucial as they lean into a customer base where the Public Sector alone accounts for about 40% of bookings. Keep reading; we are breaking down the nine building blocks of their current business model so you can see exactly how they plan to execute this transition.

Extreme Networks, Inc. (EXTR) - Canvas Business Model: Key Partnerships

You're looking at how Extreme Networks, Inc. (EXTR) scales its reach and capability through others, which is critical when you see their Fiscal Year 2025 total revenue hit $1.14 billion. The structure relies heavily on a partner ecosystem to drive sales and service delivery.

Channel Partners/Resellers for broad market reach

Extreme Networks, Inc. operates its business globally through a mix of channels, including distributors, resellers, and its own field sales organization. The company's success in Fiscal Year 2025, which saw revenue of $1,140.1 million for the fourth quarter, up 2% year-over-year, is supported by this broad market approach. The company is focused on gaining share globally, with momentum noted in the Americas, EMEA, and APAC as of the first quarter of Fiscal 2026.

Managed Service Providers (MSPs) with a dedicated program

The Managed Service Provider (MSP) program is a significant focus, designed to scale operations and create differentiation for partners using consumption-based billing and poolable licensing. This program has seen rapid expansion; as of the August 2025 report, the MSP partner count had doubled year-over-year. Specifically, the number of MSP partners stood at 48 as of March 31, 2025, growing to 53 by the time of the August 2025 filing. Geographically, the MSP base was split, with about 60 percent located in Europe and 40 percent in the U.S. and Asia, according to February 2025 data.

The growth in subscription services is directly tied to this channel strategy, with Software-as-a-Service (SaaS) Annual Recurring Revenue (ARR) reaching $208 million as of June 30, 2025, marking a 24 percent year-over-year increase. By the end of September 2025 (Q1 FY26), SaaS ARR further increased to $216.2 million, up 24.2 percent year-over-year.

Strategic technology alliances (e.g., Microsoft, Intel) for AI development

Strategic technology alliances are embedded within the Extreme Platform ONE solution, which unifies networking, security, and AI. This platform incorporates third-party vendor products, including those from Microsoft. The focus is on AI for networking, leveraging agentic AI to improve operator agility and assurance. The integration of AI-powered automation within Platform ONE is cited as reducing the time to complete complex tasks by up to 98 percent.

Global distributors (e.g., Exclusive Networks, Westcon-Comstor)

Extreme Networks, Inc. utilizes global distributors to move products, alongside its reseller network and direct sales force. While specific revenue contributions from named global distributors like Exclusive Networks or Westcon-Comstor aren't itemized, the company's overall revenue generation is globally distributed, though no single foreign country accounted for 10% or more of net revenue for the fiscal years ending June 30, 2025, 2024, or 2023.

Co-delivery partners for enhanced support services

The partnership model extends to co-delivery, particularly through the MSP program which offers consumption-based billing, simplifying service delivery. The Platform ONE management console is designed to enhance usability and resilience through assurance capabilities, which leverage generative and agentic AI. This centralization helps partners manage licenses, performance, and service interruptions within a single workspace.

Here's a quick look at the scale of the subscription and partner growth as of late 2025:

Metric	Value (as of late 2025)	Reference Point
Fiscal Year 2025 Total Revenue	$1.14 billion	Year Ended June 30, 2025
Q1 Fiscal 2026 Revenue	$310.2 million	Quarter Ended September 30, 2025
Q1 Fiscal 2026 Revenue YoY Growth	15.2%	Quarter Ended September 30, 2025
SaaS ARR	$216.2 million	As of September 30, 2025
SaaS ARR Year-over-Year Growth	24.2%	As of September 30, 2025
MSP Partner Count (Latest Reported)	53	As of August 2025
MSP Partner Count (Prior Quarter)	48	As of March 31, 2025

The emphasis on consumption-based billing for MSPs is designed to eliminate upfront costs for partners, which is a key enabler for adoption.

Extreme Networks, Inc. (EXTR) - Canvas Business Model: Key Activities

You're looking at the core engine driving Extreme Networks, Inc. (EXTR) right now, which is all about shifting from hardware sales to a unified, AI-driven subscription model. The key activities reflect this pivot, focusing heavily on software development and ecosystem enablement.

Developing and scaling the Extreme Platform ONE AI-driven platform

This is the central activity, moving the platform from concept to general availability (GA) in mid-2025. The focus here is on integrating conversational, multimodal, and agentic artificial intelligence (AI) into the core networking experience.

• Extreme Platform ONE achieved general availability in July 2025.
• As of July 2025, the platform was adopted by 265 customers worldwide.
• During its limited availability phase (as of May 2025), over 130 companies were developing use cases.
• The Service AI Agent component is claimed to slash manual effort by up to 95% in tasks like evidence collection and ticket creation (as of October 2025).
• Reported customer benefits include up to 90% reduction in manual effort and up to 98% faster resolution times.

Manufacturing and sourcing wired/wireless network hardware

While the strategic emphasis is on the cloud platform, the company still needs to deliver the physical infrastructure. This activity involves managing the supply chain to support the installed base and new deployments, especially after navigating prior global supply chain constraints.

Here are the top-line financial results for the fiscal year ended June 30, 2025, which frames the scale of the hardware and support business:

Metric (Fiscal Year Ended June 30, 2025)	Value	Basis
Total Revenue	$1,140.1 million	Reported
GAAP Gross Margin	62.2%	Reported
Non-GAAP Gross Margin	62.9%	Reported
GAAP Diluted Loss Per Share	$0.06	Reported
Non-GAAP Diluted EPS	$0.84	Reported

The company closed the fiscal year with a Q4 ending cash balance of $231.7 million and net cash of $51.7 million.

R&D investment in AI, analytics, and automation

Investment in R&D is directly fueling the Platform ONE strategy and the broader AI initiative. The organizational structure reflects this prioritization, with the CTO also taking the role of President of AI Platforms.

• Research and Development Expense for the quarter ending September 30, 2025, was $57.75M.
• The company is making measurable business impact investments, with the CTO overseeing R&D and the subscription business.
• For the fiscal first quarter ending in December (projected), the company expected per-share earnings to range from 23 cents to 25 cents.

Managing the global channel partner ecosystem

The partner ecosystem is critical for scaling the new cloud and subscription offerings, especially given the company's challenger status in the market. They are actively working to enable partners on the new platform.

The focus here is on driving subscription adoption through partners. For example, the managed services program (MSP) saw significant growth:

• The Managed Services Program (MSP) doubled to 53 partners year-over-year as of the end of Fiscal 2025.
• Extreme Networks offers the industry's first consumption-based billing for MSPs.
• SaaS ARR (Software as a Service Annual Recurring Revenue) reached $208M at the end of Fiscal 2025, up 24% year-over-year, reflecting success in attracting new customers and as-a-service demand through partners.

Finance: draft 13-week cash view by Friday.

Extreme Networks, Inc. (EXTR) - Canvas Business Model: Key Resources

You're looking at the core assets Extreme Networks, Inc. (EXTR) relies on to execute its strategy as of the end of fiscal year 2025. These aren't just abstract concepts; they are tangible, measurable advantages in the market right now.

Proprietary AI Core technology and data hub

This is the engine behind Extreme Platform ONE, which reached general availability in the third calendar quarter of 2025. The AI Core and data hub aggregates both structured and unstructured data across the entire Extreme portfolio-switching, routing, wireless, and SD-WAN. This architecture supports conversational, multimodal, and agentic AI capabilities designed to automate network operations. The goal here is to turn complex tasks that used to take hours into something that takes minutes, which is a massive resource multiplier for IT teams.

Here are some performance metrics tied to the Platform ONE rollout:

Metric	Value/Target	Context
Manual Work Reduction	Up to 90 percent	Reported reduction from Platform ONE integration.
Resolution Time Cut	Up to 98 percent	Reported reduction in time to resolve issues.
Early Adopter Customers	More than 265	Customers using the platform prior to general availability.

The platform also incorporates new data connectors to pull telemetry from third-party devices, meaning the resource isn't limited to just Extreme's own installed base. That's smart, because customers rarely run a single-vendor shop.

Global network of certified channel partners and MSPs

The distribution channel is a critical resource, and Extreme Networks has clearly invested in keeping it strong. They've managed to secure consistent recognition for their partner program, which is key for market reach, defintely. This network is how they scale their sales and deployment efforts globally.

• Partner Program Ranking: Earned a 5-star Ranking in the 2025 CRN Partner Program Guide.
• Consecutive Recognition: This marks the 12th consecutive year of recognition in the CRN Partner Program Guide.
• Ecosystem Size: Partner Sonar identified 1,000+ partners in the Extreme Networks partner ecosystem.

The focus on the Managed Services Provider (MSP) Program shows a strategic push to embed their technology through service delivery, which locks in recurring revenue streams.

End-to-end network Fabric intellectual property

Extreme Networks claims its network Fabric intellectual property is highly differentiated, specifically noting it is the industry's only end-to-end solution spanning campus, branch, and datacenter across wired, wireless, and third-party devices. This Fabric is built on a shortest-path bridging-based solution operating at layer two, which offers advantages like setting up virtual networks with just a few mouse clicks. The resource here is the underlying architecture that simplifies orchestration and policy across the entire network, reducing complexity and the need for extra IT staff by enabling network segmentation and zero-touch provisioning.

Cash balance of $231.7 million as of Q4 FY2025

Liquidity and balance sheet strength are foundational resources that allow for continued investment in R&D, like the Platform ONE build-out, and strategic maneuvers. The company finished fiscal year 2025 in a solid cash position, a marked improvement from prior periods.

Here's the quick math on the balance sheet strength at the end of Q4 FY2025:

Financial Metric	Amount (in millions)	Comparison/Context
Cash Balance (Q4 FY2025)	$231.7 million	Increase of $75.0 million from Q4 FY2024.
Net Cash Position (Q4 FY2025)	$51.7 million	Shift from a net debt position of $33.3 million in Q4 FY2024.
Free Cash Flow (Q4 FY2025)	$75.3 million	Significant sequential improvement from $24.2 million in Q3 2025.
Free Cash Flow (FY2025)	$127.3 million	Compared to $37.4 million in FY2024.

This strong cash generation, evidenced by the $127.3 million in free cash flow for the full fiscal year 2025, provides the operational flexibility needed to compete effectively.

Extreme Networks, Inc. (EXTR) - Canvas Business Model: Value Propositions

You're looking at the core value Extreme Networks, Inc. is delivering to its customers as of late 2025. The numbers show a clear pivot toward subscription and AI-driven simplicity, which is what the market is rewarding right now.

AI-powered automation via Platform ONE for simplified operations

The big story here is the general availability of Extreme Platform ONE, which launched in July 2025. This platform is designed to take the complexity out of network management by integrating conversational, multimodal, and agentic AI. The immediate, measurable impact is what matters; as of July 2025, more than 265 customers worldwide had already adopted Extreme Platform ONE as early adopters.

The promised efficiency gains are substantial. The platform is claimed to reduce manual work by up to 90%. Furthermore, the Service AI Agent component is designed to cut issue resolution times by up to 98% through automated diagnostics. This is the kind of operational leverage that changes IT team dynamics.

End-to-end network visibility and security across multi-vendor environments

Extreme Networks, Inc. is positioning Platform ONE as a unified management layer, which includes products from third-party vendors like Microsoft. This unification directly addresses the C-level demand for a single platform for AI, networking, and security, which research indicated 89% of C-level executives were demanding. The value proposition is simplifying the typical scenario where a professional logs into between four to seven different applications.

Industry's simplest, all-in-one subscription licensing model

The financial results clearly show the market is responding to the subscription focus. SaaS Annual Recurring Revenue (ARR) hit $216.2 million for the quarter ending September 30, 2025, which was a year-over-year increase of 24.2%. For the full fiscal year 2025, total recurring revenue represented 36% of total revenue. The model is also simple for Managed Service Providers (MSPs), with the company offering consumption-based billing, which doubled their MSP partner count year-over-year to 53 partners by the end of Fiscal Year 2025.

Here's a quick look at the subscription momentum:

Metric	Value (as of Sept 30, 2025)	Year-over-Year Growth
SaaS ARR	$216.2 million	24.2%
Total Recurring Revenue Share (FY2025)	36% of total revenue	N/A
Q4 FY2025 Revenue	$307.0 million	19.6%

Subsecond network convergence for high availability and resilience

While I don't have a specific, published subsecond convergence time for late 2025, the underlying fabric technology is receiving high marks, which is the proof point for resilience. The Extreme Network Fabric technology is specifically cited as receiving five-star reviews for simplicity and resilience. This resilience is critical, especially for mission-critical operations, as seen with deployments like ENAIRE, which manages over 2.3 million aircraft movements across Spain annually.

The overall financial health supports continued investment in these high-availability features. For the fourth quarter ending June 30, 2025, the Non-GAAP gross margin stood at 62.3%, and the company generated $75 million in free cash flow for that quarter.

You should check the latest product documentation for the exact latency figures, but the market feedback on the fabric is definitely a strong value indicator:

• Fabric Switching received five-star reviews from Enterprise Strategy Group.
• Platform ONE unifies networking, security, and AI.
• The Q4 FY2025 Non-GAAP operating profit margin reached 15.2%.

Finance: draft 13-week cash view by Friday.

Extreme Networks, Inc. (EXTR) - Canvas Business Model: Customer Relationships

You're looking at how Extreme Networks, Inc. engages its customer base as of late 2025. The focus is clearly shifting toward recurring, cloud-based relationships, supported by advanced automation.

Co-delivered support services with partners for enterprise clients

Extreme Networks, Inc. actively strengthens its channel relationships to deliver support services, enhancing partner profitability and streamlining processes. The Extreme Partner Support Services initiative is central to this. The company supports its Managed Service Provider (MSP) partners through a dedicated program.

The scale of this channel engagement is evident in the partner ecosystem numbers:

• Extreme currently has more than 40 MSP partners.
• The Extreme Platform ONE solution includes multi-tenant management capabilities available for MSP partners in H1CY2025.

The public sector remains a significant relationship segment for bookings:

Customer Segment	Percentage of Bookings (FY2025)
Public Sector	40%
Manufacturing	10%
Healthcare	10%
Hospitality	10%

Also, the company saw a particularly strong performance in the Asia-Pacific region, with new customer wins driving year-over-year growth to 36% in that geography for Fiscal 2025.

Digital, self-service engagement through the ExtremeCloud IQ platform

The digital relationship is anchored by the cloud-managed platform, which drives Software-as-a-Service Annual Recurring Revenue (SaaS ARR). This metric is a key indicator of the stickiness of the customer relationship.

Here are the key financial metrics reflecting this digital adoption as of the end of the first quarter of Fiscal 2026 (ended September 30, 2025):

• SaaS ARR reached $216.2 million.
• This represented a year-over-year increase of 24.2%.
• For the full Fiscal Year 2025, total net revenue was $1.14 billion.
• Subscription and support revenue in the fourth quarter of Fiscal 2025 was $115.1 million, up about 12% from $103.9 million a year prior.

The deferred revenue component shows the long-term nature of these commitments. At June 30, 2025, the Company had $617.5 million of remaining performance obligations, mostly deferred subscription and support revenues. The expectation is to recognize approximately 53% of this deferred amount as revenue in fiscal 2026 and an additional 23% in fiscal 2027.

Conversational and agentic AI for faster, smarter support

The introduction of Extreme Platform ONE, which features conversational, multimodal, and agentic AI, is designed to fundamentally advance the customer experience through automation. This directly impacts support efficiency.

The performance claims associated with this AI integration are significant:

• The platform is stated to cut resolution times by up to 98%.
• It reduces the time to complete complex tasks from hours to minutes.
• Platform ONE reduces tasks that previously took days down to minutes.

Customer pre-launch interest was measurable; nearly 100 customers had pre-ordered Platform ONE as of the third quarter of Fiscal 2025 (ended March 31, 2025). Bookings for Platform ONE were reported as solid in the first quarter of Fiscal 2026.

Dedicated account management for large public sector customers

While specific numbers for dedicated account manager headcount aren't public, the focus on the public sector dictates a high-touch relationship strategy. As noted, this segment accounts for about 40% of the company's bookings. The company emphasizes delivering secure, resilient solutions with AI for state and local government, aiming to automate IT workflows and simplify management to improve efficiency across agencies. The goal is to secure confidential data and enhance the citizen experience through these dedicated engagements.

Finance: review Q1 FY2026 deferred revenue recognition schedule against FY2026 guidance by next Tuesday.

Extreme Networks, Inc. (EXTR) - Canvas Business Model: Channels

You're looking at how Extreme Networks, Inc. gets its products and services into the hands of customers as of late 2025. The strategy leans heavily on partners, but the direct sales team still plays a critical role for big deals, all underpinned by the cloud platform.

Indirect sales via Value-Added Resellers (VARs) and integrators

The bulk of Extreme Networks, Inc.'s market reach flows through its channel. The Partner Program earned a 5-star Ranking in the 2025 CRN Partner Program Guide, marking its 12th consecutive year of recognition. The overall partner ecosystem is quite broad, with Partner Sonar identifying over 1,000+ partners. This network of VARs and integrators is crucial for driving new logos and expanding market penetration across various customer types, including those in the public sector, which accounted for about 40% of bookings in fiscal 2025. The company also won an award in the 2025 Newsweek AI Impact Awards for an AI assistant that boosts productivity for these partners. The commitment to profitability and simplified networking helps keep this channel engaged.

Managed Service Providers (MSPs) utilizing consumption-based billing

Extreme Networks, Inc. has made a specific push into the Managed Service Provider (MSP) space, which is clearly gaining traction. By the third quarter of fiscal 2025, the MSP program had doubled year-over-year to 53 partners. This segment benefits from the industry's first consumption-based billing model, which eliminates upfront costs for the MSPs, helping them manage finances better. The poolable licensing feature allows these partners to flexibly allocate licenses across their client base, simplifying scale-up operations. This model directly supports the growing demand for as-a-service consumption, which feeds the SaaS ARR growth.

Direct sales force for large enterprise and government contracts

While the channel is wide, the direct sales force targets specific, high-value segments where deep engagement is necessary. The public sector is a major focus, representing approximately 40% of bookings in fiscal 2025. Beyond government, the direct team focuses on large enterprise accounts, particularly in key verticals. For example, the manufacturing, healthcare, and hospitality industries each accounted for about 10% of bookings in fiscal 2025. This direct engagement is also key for driving adoption of newer, complex solutions like Extreme Platform ONE, which saw nearly 100 customers pre-order it by the third quarter of 2025.

Cloud-based software delivery through ExtremeCloud IQ

The entire channel strategy is increasingly anchored by the cloud platform, primarily ExtremeCloud IQ and the newer Extreme Platform ONE. This shift is evident in the financial metrics, as subscription revenue is a primary growth driver. At the end of the fourth quarter of fiscal 2025, the company's SaaS Annual Recurring Revenue (SaaS ARR) hit $207.6 million, representing a 24.4% year-over-year increase. By the end of the first quarter of fiscal 2026, this figure grew further to $216.2 million. International sales, which are often facilitated by the cloud platform's centralized management capabilities, accounted for 52% of consolidated net revenues in fiscal 2025, up from 48% the prior year. The subscription and support revenue for Q4 2025 alone was $115.1 million.

Here are the key financial metrics that reflect the success of these channel motions as of late 2025:

Metric	Value (FY2025 End / Q4 2025)	Year-over-Year Change
Total Annual Revenue (FY2025)	$1.14 billion	+2%
SaaS ARR (End of FY2025)	$207.6 million	+24.4%
Q4 2025 Revenue	$307.0 million	+19.6%
Subscription and Support Revenue (Q4 2025)	$115.1 million	~+12%
International Sales Percentage (FY2025)	52% of Net Revenues	Up from 48% in FY2024

The MSP program's partner count reached 53 by Q3 2025. Also, the company's overall employee count was reported around 2,811, meaning the channel is essential for scaling sales capacity. The non-GAAP operating profit margin for the full fiscal year 2025 was 14.2%, up from 6.2% the prior year, showing operating leverage tied to the recurring revenue mix.

Extreme Networks, Inc. (EXTR) - Canvas Business Model: Customer Segments

You're looking at the core customer groups Extreme Networks, Inc. (EXTR) targets as of late 2025, which is a mix of public and private sector entities, all leaning into their AI-driven cloud networking solutions.

The customer base is clearly segmented to maximize reach across different spending profiles and regulatory environments. The Public Sector is a foundational pillar for Extreme Networks, Inc.

Customer Segment	Reported Contribution/Metric (as of FY2025 or latest data)
Public Sector (Government and Education)	Approximately 40% of total bookings
Manufacturing Industry	Accounts for 10% of bookings
Healthcare Industry	Accounts for 10% of bookings
Hospitality Industry	Accounts for 10% of bookings
Managed Service Provider (MSP) Partners	Network of 48 MSP partners as of April 2025

The strategy involves moving upmarket, focusing on Large Global Enterprise customers. This is supported by the company reporting five consecutive quarters of revenue growth ending Fiscal Year 2025, with total revenue reaching $1.14 billion for the full fiscal year 2025.

The focus on specific verticals is concrete, with recent wins cited in areas like education, healthcare, and hospitality. For instance, Fiscal Year 2025 momentum included wins at a Tech University, The München Klinik, and a high-end luxury resort casino in the Middle East.

For the Mid-market companies, Extreme Networks, Inc. relies heavily on its channel ecosystem, which includes Managed Service Provider (MSP) partners. The company launched its first dedicated partner program for MSPs in February 2025.

• The channel partner ecosystem is the primary sales route.
• The MSP partner program introduced in February 2025 features a multi-tenant architecture.
• The company had 48 MSP partners established as of April 2025.
• The Americas region contributed 52% of Fiscal Year 2025 revenue, totaling $597 million.

The company's overall revenue mix shows a strong pull from subscription services, with SaaS ARR reaching $207.6 million in the fourth quarter of Fiscal Year 2025, a 24.4% year-over-year increase.

Finance: review the Q1 FY26 bookings breakdown against these FY25 segment percentages by next Tuesday.

Extreme Networks, Inc. (EXTR) - Canvas Business Model: Cost Structure

You're looking at the core spending areas for Extreme Networks, Inc. as of late 2025. The cost structure is heavily influenced by the mix of hardware sales and the growing subscription (SaaS) component, which naturally impacts gross margins.

Cost of Goods Sold (COGS) for hardware and supply chain operations

The Cost of Goods Sold is derived from the reported gross margins against the total revenue for the fiscal year ended June 30, 2025. For the full fiscal year 2025, Extreme Networks reported total revenue of $1,140.1 million. Using the GAAP Gross Margin of 62.2% for the same period, the implied COGS is substantial, reflecting the cost of physical goods sold.

Here's the quick math for the implied GAAP COGS for the full fiscal year 2025:

• Implied GAAP COGS: Revenue of $1,140.1 million multiplied by (1 - 0.622) equals approximately $431.0 million.

The Non-GAAP Gross Margin for the full year 2025 was slightly higher at 62.9%, suggesting that certain non-cash or non-recurring items, such as the amortization of developed technology and order backlog, are typically recorded within COGS under GAAP but excluded from Non-GAAP calculations.

Significant investment in Research and Development (R&D) for AI/SaaS

While specific R&D dollar amounts for the full fiscal year 2025 aren't explicitly detailed in the top-line results, the narrative confirms continued investment in this area to support the AI-powered networking platform and subscription growth. The company reported SaaS ARR (Annual Recurring Revenue) of $207.6 million for Q4 2025, up 24.4% year-over-year, indicating that a significant portion of operating expenses is directed toward developing and maintaining the software and AI capabilities that drive this high-growth segment.

Sales and Marketing costs, defintely including channel incentives

Sales and Marketing costs are a major operating expense category, necessary to support the reported revenue growth of 20% year-over-year in Q4 2025. The company's focus on execution and gaining market share, particularly in the Americas, EMEA, and APAC, necessitates significant spending on the sales force and channel partners. The CEO emphasized improved win rates and generating opportunities, which points directly to investment in channel incentives and sales enablement. Furthermore, Extreme Networks noted an internal Marketing and Sales AI Assistant win in the 2025 Newsweek AI Impact Awards, suggesting investment in productivity tools for these teams.

General and administrative expenses, plus stock-based compensation

General and Administrative (G&A) expenses cover overhead, executive functions, and other corporate costs. A concrete, non-cash component of this structure is stock-based compensation. For the fiscal year ending June 30, 2025, Extreme Networks, Inc. reported Stock-Based Compensation of $82.31M. This expense is explicitly excluded from the Non-GAAP operating metrics because it is a non-cash charge.

Executive compensation is another specific data point. For the year to June 2025, the total annual CEO compensation was reported as $13m.

The overall operating efficiency is reflected in the GAAP Operating Profit Margin for the full year 2025, which was 1.5%, a significant improvement from the GAAP operating loss margin of 5.8% in the prior year.

Here is a summary of key financial metrics impacting the cost structure for the fiscal year ended June 30, 2025:

Metric	Amount (Millions USD)	Percentage
Total Revenue	$1,140.1	N/A
Implied GAAP COGS	~$431.0	37.8% of Revenue
GAAP Gross Margin	N/A	62.2%
Non-GAAP Gross Margin	N/A	62.9%
Stock-Based Compensation	$82.31	N/A
CEO Total Compensation	$13.0	N/A
GAAP Operating Profit Margin	N/A	1.5%
Non-GAAP Operating Profit Margin	N/A	14.2%

The shift in spending priorities is clear when looking at the performance metrics:

• GAAP Operating Loss Margin improved from 5.8% (prior year) to 1.5% (FY2025).
• Non-GAAP Operating Profit Margin increased to 14.2% in FY2025 from 6.2% in the prior year.
• The company executed share repurchases of $25.0 million during Q4 2025.

Extreme Networks, Inc. (EXTR) - Canvas Business Model: Revenue Streams

You're looking at the core ways Extreme Networks, Inc. brings in cash as of late 2025. The shift to subscription revenue is definitely a major theme here, but the physical gear still plays a big part in the total haul.

Software-as-a-Service (SaaS) Subscriptions are a primary focus now. The Annual Recurring Revenue (ARR) for the subscription business, which includes ExtremeCloud IQ and other services, hit $207.6 million as of the end of Fiscal Year 2025, which ended June 30, 2025. That number represented a year-over-year increase of 24.4%, showing the subscription model is gaining traction, as management noted. To be fair, the very latest number from Q1 Fiscal 2026 showed ARR climbing further to $216.2 million, but for the full FY2025 picture, $207.6 million is the mark.

The other key streams are the traditional ones. This includes the Sales of physical network hardware-think switches, access points, and routers-which are still essential for initial deployments and upgrades. Also critical are the Maintenance and Support Services contracts that keep that installed base running smoothly. These two categories, combined with the subscription revenue, make up the total top line.

Here's a quick look at the top-line numbers for the fiscal year that just closed:

Revenue Component	FY2025 Amount (in millions)
Total Net Revenue	$1,140.1
SaaS ARR (End of FY2025)	$207.6

The total net revenue for Extreme Networks, Inc. for the full Fiscal Year 2025 was $1,140.1 million. That was a 2.0% increase year-over-year from the prior fiscal year. The growth in SaaS ARR is a positive sign for future recurring revenue stability, but the hardware and support revenue still represent the bulk of the total sales when you look at the full $1.14 billion number.

You can see the revenue mix is evolving, which impacts how you think about valuation multiples. The streams break down like this:

• Software-as-a-Service (SaaS) Subscriptions: ARR reached $207.6 million in FY2025.
• Sales of physical network hardware: Switches, access points, and routers.
• Maintenance and Support Services contracts: Ongoing service revenue.

Finance: draft 13-week cash view by Friday.