Extreme Networks Inc (EXTR)

Operating profit margin

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Operating income	US$ in thousands	16,949	-28,881	108,313	64,188	34,376
Revenue	US$ in thousands	1,140,070	1,117,200	1,312,450	1,112,320	1,009,420
Operating profit margin		1.49%	-2.59%	8.25%	5.77%	3.41%

June 30, 2025 calculation

Operating profit margin = Operating income ÷ Revenue
= $16,949K ÷ $1,140,070K
= 1.49%

The operating profit margin of Extreme Networks Inc has exhibited notable fluctuations over the period from June 30, 2021, to June 30, 2025. At the end of fiscal year 2021, the operating profit margin stood at 3.41%, indicating a modest profitability relative to its revenue. This margin increased significantly in the subsequent year, reaching 5.77% as of June 30, 2022, reflecting improvements in operational efficiency or increased profit contributions relative to sales.

The upward trend continued into 2023, with the operating profit margin further expanding to 8.25%. This ascent suggests that the company was able to enhance its operational profitability, possibly through cost management, improved product mix, or favorable market conditions. However, in fiscal year 2024, there was a sharp reversal, with the margin declining to negative territory at -2.59%. This negative margin indicates that the company incurred operating losses during this period, potentially due to increased operating expenses, extraordinary items, or declining revenue.

By June 30, 2025, the operating profit margin rebounded modestly to 1.49%, suggesting a partial recovery from the previous year's losses. While this positive margin indicates some improvement in operational performance, it remains significantly below the peak achieved in 2023 and well below the margins recorded in 2021 and 2022. Overall, the data reflects a period of volatility with a brief period of strong operational profitability, a significant downturn, and a subsequent partial recovery, highlighting potential challenges and fluctuations in the company's operational efficiency and profitability environment.