Extreme Networks Inc (EXTR)

Operating profit margin

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Operating income (ttm)	US$ in thousands	16,949	-20,614	-79,039	-81,388	-40,772	36,067	113,698	126,816	108,313	80,871	68,599	63,220	64,188	71,301	65,142	52,800	34,376	3,702	-45,806	-66,755
Revenue (ttm)	US$ in thousands	1,140,067	1,089,717	1,016,248	1,033,270	1,117,203	1,224,460	1,345,931	1,367,902	1,312,454	1,226,740	1,179,741	1,142,326	1,112,321	1,112,213	1,080,105	1,041,300	1,009,418	946,852	902,971	928,315
Operating profit margin		1.49%	-1.89%	-7.78%	-7.88%	-3.65%	2.95%	8.45%	9.27%	8.25%	6.59%	5.81%	5.53%	5.77%	6.41%	6.03%	5.07%	3.41%	0.39%	-5.07%	-7.19%

June 30, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $16,949K ÷ $1,140,067K
= 1.49%

The operating profit margin of Extreme Networks Inc. exhibited notable fluctuations over the analyzed period. Starting from a negative value of approximately -7.19% on September 30, 2020, the margin improved progressively, turning positive by March 31, 2021, at 0.39%. The upward trend continued into the subsequent periods, reaching a peak of approximately 9.27% on September 30, 2023. During this timeframe, the company demonstrated consistent operational improvements, reflected in the sustained positive operating margins.

From its peak in late 2023, the operating profit margin declined sharply in the following periods, dropping to about 2.95% as of March 31, 2024, and then turning negative in subsequent quarters, reaching approximately -7.88% on September 30, 2024. This downturn indicates increasing operational challenges or expenses overtaking revenues. The negative trajectory persisted into the next quarters, with margins at -7.78% on December 31, 2024, and further down to -1.89% on March 31, 2025. Notably, a partial recovery is observed in the latest data, with the margin improving to around 1.49% as of June 30, 2025.

Overall, the company's operating profit margin demonstrates periods of significant growth and profitability improvement, particularly from early 2021 to late 2023. However, recent quarters reflect substantial challenges, with margins turning negative and indicating potential operational or market difficulties. The partial rebound in mid-2025 suggests some stabilization, but the overall trend indicates increased volatility in operating profitability over the specified period.