Extreme Networks Inc (EXTR)

Gross profit margin

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Gross profit	US$ in thousands	630,831	754,720	629,938	585,123	517,839
Revenue	US$ in thousands	1,117,690	1,295,900	1,103,890	986,853	925,480
Gross profit margin		56.44%	58.24%	57.07%	59.29%	55.95%

June 30, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $630,831K ÷ $1,117,690K
= 56.44%

Extreme Networks Inc's gross profit margin has shown some fluctuations over the past five years. In 2024, the gross profit margin decreased to 56.44% from 58.24% in 2023. Despite this decrease, the margin remains relatively healthy, indicating that the company is efficiently managing its production costs and generating profits from its core business operations.

Comparing to the previous years, the gross profit margin in 2024 is lower than the 2022 and 2021 levels but higher than that of 2020. This suggests that Extreme Networks Inc may have experienced some cost pressures or changes in pricing strategies that influenced its profitability in 2024.

Overall, while the decreasing trend in gross profit margin from 2023 to 2024 warrants attention, the company's ability to maintain a gross profit margin above 50% indicates that it has strong pricing power and cost control measures in place. Further analysis of the underlying factors contributing to the changes in gross profit margin could provide more insights into the company's financial performance.