Is the business good?
How good a business is EXTR?
Extreme Networks, Inc. earns 48% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
48%
Return on invested capital · cost of capital 9.0% · 39 points above what the capital costs: growth creates value
- Operating margin
- 3.2%
Operating margin · Communication Equipment median 4.4% · 12 months to Q3 2026
- Share count, year on year
- −0.74%
Share count, year on year · flat: no meaningful dilution
- R&D as % of revenue
- 18%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −10% |
| FY2021 | 3.4% |
| FY2022 | 5.8% |
| FY2023 | 8.3% |
| FY2024 | −5.8% |
| FY2025 | 1.5% |
Details›
- Gross margin12 months to Q3 2026
- 61%
- Operating margin12 months to Q3 2026
- 3.2%
- Net margin12 months to Q3 2026
- 1.3%
- Free cash flow margin
- 8.4%
- R&D as % of revenue
- 18%
- Revenue, trailing twelve months
- $1.25B
- Free cash flow, trailing twelve months
- $105M
- Net income, trailing twelve months
- $16M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 48%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Communication Equipment
Ranks #15 of 21 by Smart Score