Extreme Networks Q2 Revenue Rises 14% to $317.9M; UBS Cuts Target to $17
Extreme Networks reported fiscal Q2 revenue of $317.9 million, up 14% year-over-year and 2.5% quarter-over-quarter, SaaS ARR rose 25.2% year-over-year to $226.8 million, and GAAP diluted EPS reached $0.06. UBS cut the price target to $17 with Neutral rating while B. Riley maintained Buy rating with a $26 target.
1. Fiscal Q2 Financial Performance
Extreme Networks reported Q2 revenue of $317.9 million, a 14% increase year-over-year and a 2.5% rise sequentially. SaaS ARR climbed to $226.8 million, up 25.2% year-over-year and 4.9% quarter-over-quarter, while GAAP diluted EPS reached $0.06. CFO Kevin Rhodes noted that profitability leverage drove earnings growth to outpace revenue gains by 10 percentage points.
2. UBS Neutral Rating and Price Target Cut
UBS lowered its price target on Extreme Networks to $17 from $21 and maintained a Neutral rating. The firm cited mixed second-quarter metrics as the basis for remaining on the sidelines.
3. B. Riley Buy Rating and $26 Target
B. Riley Securities reiterated a Buy rating and set a $26 price target following the Q2 results, signaling continued confidence in the company’s growth trajectory and recurring revenue expansion.