EXTRExtreme Networks, Inc.
Is the business good?
The checks split: 7 of 9 health tests passed and earnings fully cash-backed (2.4×), but margins compressing and returns that lean on debt.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 23% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is EXTR?
Extreme Networks, Inc. keeps 4.9% of every revenue dollar as operating profit, against 5.0% for the median Communication Equipment name.
Operating margin · Communication Equipment median 5.0% · 12 months to Q4 2026
- Cash conversion
- 2.40×
Cash conversion · operating cash flow covers the operating profit after tax
- R&D as % of revenue
- 18%
R&D as % of revenue
- Gross margin
- 61%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 3.4% |
| FY2022 | 5.8% |
| FY2023 | 8.3% |
| FY2024 | −5.8% |
| FY2025 | 1.5% |
| FY2026 | 4.9% |
Details›
- Gross margin12 months to Q4 2026
- 61%
- Operating margin12 months to Q4 2026
- 4.9%
- Net margin12 months to Q4 2026
- 3.3%
- Free cash flow margin
- 7.4%
- R&D as % of revenue
- 18%
- Revenue, trailing twelve months
- $1.28B
- Free cash flow, trailing twelve months
- $95M
- Net income, trailing twelve months
- $42M
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Communication Equipment
Ranks #13 of 20 by RyuScore