Extreme Networks Inc. Common Stock (EXTR)

FairStock Score: 27/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Extreme Networks as a seller of network infrastructure and cloud management software, not as a story stock. The turnaround is real in the filed figures: in fiscal 2026 (year ended 2026-06-30), revenue was $1.3 billion, net income $42.1 million, and diluted EPS $0.31. A year earlier, in fiscal 2025, net income was a loss of $7.5 million, and in fiscal 2024 the loss was $86.0 million. The quarterly path also improved: fiscal Q1 2026 (quarter ended 2025-09-30) had net income of $5.6 million, fiscal Q2 2026 (quarter ended 2025-12-31) $7.9 million, and fiscal Q3 2026 (quarter ended 2026-03-31) $10.6 million. Piotroski 9/9 suggests accounting momentum. But I see no clear moat: ROCE is only 3.43%, debt-to-equity 2.20, Altman Z 0.91, and EV/EBITDA 36.09. At the close on 2026-10-13, the $23.49 price gives a FairStock P/E of 75.77 and P/B of 34.54. The Graham Number of $2.18 leaves a margin of safety of -977.52%. Free cash flow yield is 3.1%, so the business is not cheap on cash. ROE of 54.64% looks flattered by leverage and a small equity base, not by high returns on capital. PEG of 0.23 reflects very fast recent profit growth, but that growth started from near-zero. FairStock calls it a TURNAROUND. Turnarounds can reward patience, but at this price I see optimism already paid for, not a bargain.

In plain English: Extreme Networks makes networking equipment and cloud software that help organizations run their wired and wireless networks. The business has moved from losses to a profit, and in fiscal 2026 it reported $1.3 billion of revenue and $42.1 million of net income. But the stock price looks expensive compared with the money it earns and the value of its assets, and the company uses a lot of debt.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer