Extreme Networks (NASDAQ:EXTR), a leader in cloud networking solutions, reported financial results for its second quarter of fiscal 2026 ended December 31, 2025.
Revenue totaled $317.9 million, increasing 14% year-over-year and 2.5% quarter-over-quarter.
SaaS annualized recurring revenue (ARR) reached $226.8 million, up 25.2% year-over-year and 4.9% sequentially, reflecting continued momentum in the company's subscription-based cloud offerings.
GAAP diluted earnings per share were $0.06, in line with the prior year and up from $0.04 last quarter.
Non-GAAP diluted EPS rose to $0.26, compared with $0.21 a year ago and $0.22 in the prior quarter.
GAAP gross margin was 61.4%, compared with 62.7% in the year-ago quarter and 60.6% last quarter.
Non-GAAP gross margin was 62%, versus 63.4% a year ago and 61.3% sequentially.
Elsewhere, GAAP operating margin stood at 4.1%, while non-GAAP operating margin improved to 15% from 14.7% a year earlier and 13.3% last quarter.
During the quarter, liquidity strengthened significantly, with cash balance ending at $219.8 million, up $10.8 million from the prior quarter and $49.5 million year-over-year.
Additionally, net cash position improved to $47.3 million, compared with net cash of $7.8 million at the end of Q1 2026 and net debt of $14.7 million a year ago.