Extreme Networks, Inc.

Supplier Financial Health Report

Overview

June 2024

USA

Incorporated Country

2,849

Number of Employees

A+

Credit Rating

Count of Investments

Extreme Networks, Inc., based in Santa Clara, California, is a publicly-traded company with a rich history dating back to its founding in 1996. With a workforce of 2,849 employees, Extreme Networks specializes in designing, constructing, and installing advanced Ethernet solutions that cater to the most demanding network connectivity and IP-based communication needs. The company's expertise spans across various industries, including communication hardware, computer, information technology, and the Internet of Things, with a focus on network hardware. As a US-incorporated business, Extreme Networks has a strong financial standing, as evidenced by its credit rating of A+ and a credit score of 99, which indicates a stable financial position. The company has undergone two funding rounds, raising a total of $17.3 million, and has one investment and one exit on record. At the helm of this successful organization is CEO Edward B Meyercord III.

Full Supplier Profile for Extreme Networks, Inc.

Five-Year Financial Trend Analysis for Extreme Networks, Inc.

CONSTANT

Credit Trend

166.34%

Total Balance Sheet Growth Rate

24.15%

Total Debt Growth Rate

Extreme Networks, a US-based company founded in 1996, specializes in designing, building, and installing Ethernet solutions for network connectivity and IP-based communications. With a workforce of 2849 employees, Extreme Networks has shown significant financial growth over the past five years. The annual revenue trend increased from $995.79M in 2019 to $1.31B in 2023, representing a 31.80% change. This growth is also reflected in the balance sheet, which showed an increase from $428.66M in 2015 to $1.14B in 2023, a 166.34% change.

Extreme Networks' financial health is strong, as indicated by its credit rating of A+ and a credit score of 99, which is considered excellent. The credit trend has remained constant, suggesting a stable financial position. The company has had two funding rounds, raising a total of $17.3M, and one exit.

The cash trend has also shown an increase, rising from $76.22M in 2015 to $234.83M in 2023, a 208.07% change. However, the short-term investments trend showed a decrease from $41.36M in 2011 to -$0 in 2015, a 100.00% change. The total debt trend has increased from $178.75M in 2019 to $221.92M in 2023, a 24.15% change. The liabilities trend has also risen from $640.89M in 2019 to $1.02B in 2023, a 59.93% change. In contrast, the stockholders equity trend has only shown a slight increase from $115.99M in 2019 to $116.75M in 2023, a 0.66% change.

The net income trend showed a significant improvement, rising from -$71.64M in 2015 to $78.07M in 2023, a 208.98% change. Similarly, the EBITDA trend increased from $37.36M in 2019 to $143.21M in 2023, a 283.29% change. The net operating cash flow trend also showed a substantial increase, rising from $37.42M in 2015 to $249.21M in 2023, a 565.93% change. The capital expenditures trend decreased from $22.73M in 2019 to $13.8M in 2023, a 39.29% change. The free cash flow trend increased from $82.22M in 2019 to $235.41M in 2023, a 186.34% change. The operating cash flow per share trend also showed an increase from $0.89 in 2019 to $1.86 in 2023, a 109.58% change.

Extreme Networks' revenue is diversified, with Germany, the United Kingdom, France, Italy, the Russian Federation, Spain, Canada, Brazil, the Netherlands, and Saudi Arabia being the top 10 countries for revenue generation. The company's strong financial position, coupled with its revenue growth and diversification, positions it well for continued success in the communication hardware, computer, information technology, internet of things, and network hardware industries.

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Financial Health Risk Assessment for Extreme Networks, Inc.

LOW

Credit Risk

LOW

Bankruptcy Risk

LOW

Financial Health Risk

Extreme Networks, a US-based company with a workforce of 2849, specializes in Ethernet solutions for network connectivity and IP-based communications. The company has experienced significant financial growth over the past five years, with an increase in annual revenue from $995.79M in 2019 to $1.31B in 2023, and a balance sheet growth from $428.66M in 2015 to $1.14B in 2023. Extreme Networks' financial health is strong, as indicated by its credit rating of A+ and a credit score of 99. The company has had two funding rounds, raising a total of $17.3M, and one exit. The cash trend has also shown an increase, rising from $76.22M in 2015 to $234.83M in 2023.

However, there are some areas of concern. The short-term investments trend showed a decrease from $41.36M in 2011 to -$0 in 2015, and the total debt trend has increased from $178.75M in 2019 to $221.92M in 2023. The liabilities trend has also risen from $640.89M in 2019 to $1.02B in 2023. The net income trend showed a significant improvement, but the profitability ratios, including net profit margin, return on assets (ROA), and return on equity (ROE), are all below industry averages. Additionally, the Altman Z-Score of 0.08 is a concern, as it falls below the threshold for the safe zone, indicating a high probability of bankruptcy within the next two years.

Investors and analysts should continue to monitor these areas of concern and consider seeking out additional financial data to gain a more complete understanding of the company's financial situation. Overall, while Extreme Networks has shown impressive revenue growth, there are concerns regarding its liquidity, debt levels, profitability, and potential bankruptcy risk.

View Additional Risk Detail for Extreme Networks, Inc.

List of UEIs for Extreme Networks, Inc.

HBN8FABC7H97, TPADKA7MSGS7

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