Extreme Networks Inc (EXTR)

Net profit margin

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Net income (ttm)	US$ in thousands	-85,964	-6,334	80,222	94,165	78,074	58,057	48,750	44,160	44,271	49,187	39,835	23,444	1,936	-29,607	-77,431	-97,919	-126,845	-122,683	-85,263	-54,526
Revenue (ttm)	US$ in thousands	1,117,793	1,206,801	1,327,505	1,350,661	1,296,105	1,216,506	1,171,259	1,134,452	1,103,793	1,100,623	1,066,015	1,024,318	989,353	920,965	877,599	903,377	925,180	965,663	1,008,491	996,267
Net profit margin		-7.69%	-0.52%	6.04%	6.97%	6.02%	4.77%	4.16%	3.89%	4.01%	4.47%	3.74%	2.29%	0.20%	-3.21%	-8.82%	-10.84%	-13.71%	-12.70%	-8.45%	-5.47%

June 30, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $-85,964K ÷ $1,117,793K
= -7.69%

The net profit margin of Extreme Networks Inc has shown fluctuations over the past several quarters. The company experienced negative net profit margins in some periods, indicating that expenses exceeded revenues. However, there have been periods of positive net profit margins, ranging from as low as 0.20% to as high as 6.97%.

The trend indicates that Extreme Networks Inc has been able to improve its profitability over time, with a general upward trajectory in net profit margins from the end of 2019 to mid-2023. This suggests that the company has been effectively managing its costs and generating stronger revenues relative to expenses.

It is important for investors and stakeholders to monitor the net profit margin closely to assess the company's overall profitability and efficiency in generating profits from its operations. Continued improvement in net profit margin can be a positive indicator of the company's financial health and management effectiveness.