
Extreme Networks (EXTR) Stock Forecast & Price Target
Extreme Networks (EXTR) Analyst Ratings
Bulls say
Extreme Networks Inc. has projected significant revenue growth, with 2Q26 revenues estimated between $309 million and $315 million, reflecting a 12% year-over-year increase at the midpoint. The company has seen robust demand for its high-margin subscription services, which contributed to a 24% year-over-year increase in annual recurring revenue (ARR), reaching $216 million, alongside a 20% year-over-year growth in product revenue. Furthermore, Extreme Networks' differentiated offerings, particularly its Platform One, position it well in a competitive landscape, enhancing its potential to achieve its target of a 20% net gross operating margin as it capitalizes on new growth opportunities with managed service providers (MSPs) and value-added resellers (VARs).
Bears say
Extreme Networks Inc. is facing significant financial challenges, highlighted by a quarterly cash flow from operations (CFFO) of negative $14 million and a free cash flow (FCF) of negative $21 million, primarily due to one-time legal payments. The company is experiencing a concerning 100 basis points quarter-over-quarter decline in gross margins, attributed to industry-wide price increases in essential components, which may ultimately hinder revenue growth and profitability amidst ongoing economic uncertainty and customer spending constraints. Furthermore, persistent supply chain difficulties, including a tight supply of components and rising transportation costs, pose additional risks that could lead to further negative revisions in revenue and gross margins.
This aggregate rating is based on analysts' research of Extreme Networks and is not a guaranteed prediction by Public.com or investment advice.
Extreme Networks (EXTR) Analyst Forecast & Price Prediction
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