Extreme Networks (EXTR) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Extreme Networks

NasdaqGS•Technology•Communication Equipment

$22.29-0.32(-0.01%)Pre-market

Market Cap

$2.93B

P/E

55.9x

P/S

2.2x

P/B

33.3x

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.

How this company scores

ExcellentMetricSide Score: 81/100

Strongest: Cash & Earnings Quality (24/25); weakest: Balance Sheet & Red Flags (13/25).

Profitability21/25

Growth23/25

Balance Sheet & Red Flags13/25

Cash & Earnings Quality24/25

Strengths

Rising free cash flowHigh ROERising earningsCash-backed earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 55.9x5y range 26.3x – 313.7x

Currently near its 14-quarter median.

P/S · 2.2x5y range 1.0x – 3.3x

Currently near its 20-quarter median.

P/B · 33.3x5y range 12.9x – 69.2x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Leverage Risk

Watch

D/E ratio of 2.3 is elevated. Watch for further debt accumulation.

Price & Volume

Market Cap $2.93B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $1.31B
Q. Revenue: $341.09M
TTM EBITDA: $74.49M
TTM Op. Income: $74.49M
Q. Op. Income: $23.09M
TTM Net Income: $52.49M
Q. Net Income: $15.98M
EPS: $0.12
Shares Out.: $131.53M

$1.31B in TTM revenue grew 11.3% YoY, reaching $341.09M last quarter. TTM EBITDA of $74.49M and TTM operating income of $74.49M show growth is flowing through to the bottom line. TTM net income of $52.49M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 62.1%
EBITDA Margin: 6.8%
Op. Margin: 6.8%
Net Margin: 4.7%

Op. margin of 6.8% is up 3.1% YoY — cost efficiency is improving. Net margin at 4.7% and gross margin of 62.1% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 5 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 55.9x
P/S Ratio: 2.2x
P/B Ratio: 33.3x

At 55.9x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 2.2x and P/B of 33.3x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 5 quarters, P/E has fallen for 4 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $1.30B
Cash: $244.52M
Long-Term Debt: $200.00M
Book Value: $87.98M
D/E Ratio: 2.3
Debt/EBITDA: 8.7

With $1.30B in assets and $200.00M in long-term debt, D/E is 2.3and book value is $87.98M — elevated leverage, meaning significant financial risk in a downturn. Over the past year, debt/equity is down 2% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $45.42M
TTM Free Cash Flow: $154.76M
FCF Margin: 11.8%
FCF / Net Income: 2.9

TTM FCF of $154.76M on $45.42M in operating cash flow. The FCF / Net Income ratio of 2.9x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 63% — an improving trend.