Extreme Networks Inc (EXTR)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 62.20% | 58.19% | 56.61% | 56.48% | 56.12% | 59.40% | 59.64% | 58.55% | 57.50% | 56.61% | 56.28% | 56.12% | 56.63% | 57.26% | 57.80% | 58.17% | 57.97% | 57.52% | 56.16% | 55.54% |
| 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% |
| Pretax margin | 0.37% | -4.09% | -11.50% | -11.59% | -6.94% | 0.69% | 7.39% | 8.26% | 7.17% | 5.59% | 4.85% | 4.53% | 4.69% | 5.18% | 4.52% | 3.12% | 1.01% | -2.39% | -7.90% | -9.89% |
| Net profit margin | -0.65% | -4.94% | -11.98% | -12.11% | -7.69% | -0.52% | 5.96% | 6.88% | 5.95% | 4.73% | 4.13% | 3.87% | 3.98% | 4.42% | 3.69% | 2.25% | 0.19% | -3.13% | -8.58% | -10.55% |
The profitability ratios of Extreme Networks Inc., as reflected in the provided data, demonstrate a progressive improvement in gross profit margins over the analyzed period, increasing from 55.54% on September 30, 2020, to a peak of approximately 62.20% projected for June 30, 2025. This upward trend indicates enhanced efficiency in managing cost of goods sold relative to revenue, suggesting improvements in product pricing, cost controls, or product mix.
Operating profit margins, which portray the company's efficiency in controlling operating expenses relative to revenue, showed a trend from negative values in 2020 (-7.19% in September 2020, -5.07% in December 2020), moving toward positive territory through 2021 and into 2022, with a peak of 8.25% in June 2023. However, this profitability metric exhibits significant volatility thereafter, dipping back into negative figures in subsequent quarters, reaching as low as -7.88% in September 2024, before partially recovering to close at 1.49% projected for June 2025. The initial turnaround signifies improving operational efficiencies, but the later fluctuations suggest challenges in maintaining consistent operating performance or expense management.
Pre-tax margins follow a similar pattern, transitioning from negative values in 2020 (-9.89% in September 2020), gradually crossing into positive territory by 2021 and peaking at 8.26% in September 2023. The downturn observed in recent quarters, with negative pre-tax margins in 2024, indicates increasing costs or reduced earnings before taxes, impacting overall profitability before income tax considerations.
Net profit margins depict the bottom-line profitability, showing an analogous trend: initial losses in 2020 (-10.55% in September 2020), improvement to positive margins from 2021 onward, and reaching a peak of 6.88% in September 2023. Notably, the net margins decline into negative territory in 2024, with substantial losses recorded in the latest quarters, though a slight recovery to -0.65% is projected in June 2025. The fluctuation in net margins suggests variable profitability on the very bottom line, impacted by non-operating expenses, taxes, or extraordinary items.
Overall, Extreme Networks Inc. experienced a marked improvement in gross profit margins and operational profitability from 2020 through 2023, indicating effective cost management and improved revenue generation during this period. Nonetheless, recent quarters reveal increased volatility and profitability challenges, possibly reflecting market or internal operational pressures. The projected recovery in gross margin and slight improvement in net profit margin by mid-2025 indicate potential stabilization, though the company continues to face notable fluctuations in profitability ratios.
Return on investment
| 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 return on assets (Operating ROA) | 1.47% | -1.92% | -7.31% | -7.70% | -3.91% | 3.32% | 9.95% | 11.46% | 9.49% | 7.57% | 6.46% | 5.98% | 6.01% | 6.96% | 6.43% | 5.23% | 3.40% | 0.39% | -4.84% | -6.96% |
| Return on assets (ROA) | -0.65% | -5.02% | -11.26% | -11.84% | -8.25% | -0.58% | 7.02% | 8.51% | 6.84% | 5.43% | 4.59% | 4.17% | 4.14% | 4.80% | 3.93% | 2.32% | 0.19% | -3.10% | -8.19% | -10.21% |
| Return on total capital | 30.80% | -75.88% | -203.58% | -297.36% | -218.14% | 49.66% | 116.39% | 120.66% | 95.49% | 80.69% | 83.66% | 58.31% | 71.93% | 72.39% | 119.43% | 98.61% | 100.65% | 120.92% | -150.07% | -334.97% |
| Return on equity (ROE) | -11.39% | -75.12% | -237.76% | -382.46% | -340.02% | -9.75% | 74.15% | 86.80% | 66.87% | 56.26% | 57.65% | 39.93% | 49.00% | 49.55% | 57.24% | 32.41% | 3.55% | -84.26% | -431.97% | -987.98% |
The profitability ratios of Extreme Networks Inc. over the specified periods demonstrate significant fluctuation, reflecting the company's evolving financial performance.
Starting with the Operating Return on Assets (Operating ROA), the trend indicates an initial period of losses with a negative value of -6.96% as of September 30, 2020. This negative position persists into December 2020, albeit less severe at -4.84%. By the first quarter of 2021, the Operating ROA transitions into positive territory at 0.39%, and this growth continues robustly through 2021 and into early 2022, reaching a peak of 7.57% as of March 31, 2023. The sustained upward trajectory suggests improving operational efficiency and effective asset utilization. However, starting from March 2024, the ratio declines sharply into negative figures, dropping to -3.91% by June 2024, and deepening into -7.70% by September 2024, indicating potential operational challenges or increased costs relative to operating assets. The negative trend persists into the subsequent periods, with the ratio reaching -7.31% in December 2024 and slight recovery to -1.92% in March 2025, before returning to positive again at 1.47% in June 2025.
The Return on Assets (ROA) ratio aligns with the Operating ROA trend but exhibits slightly less volatility. It commenced with a significant negative value of -10.21% at September 2020, improving steadily through 2021 and into 2022, where it peaks at 4.80% in March 2022. The ratio stabilizes around 4-8% during late 2022 and mid-2023, reflecting effective asset utilization and profitability growth during this period. A notable downturn occurs beginning in March 2024, with the ratio plummeting into negative territory (-0.58%) and deteriorating further to -11.84% by September 2024, indicating a significant decline in profit generation relative to total assets. Similar to Operating ROA, the downturn extends into December 2024 and into 2025, with slight improvement expected by June 2025 at -0.65%.
Return on Total Capital demonstrates extreme volatility, shifting from highly negative values of -334.97% in September 2020 to positive figures in 2021, including a peak of 120.92% in March 2021. This phenomenon suggests that during this period, the company was generating substantial returns relative to its total capital—possibly due to extraordinary gains or restructuring efforts. The ratio remains predominantly positive into 2022 and 2023, but from Q2 2024 onward, it significantly deteriorates, reaching -218.14% in June 2024 and deepening further into -297.36% in September 2024. This pattern reflects a substantial decline in capital efficiency or profitability, possibly attributable to impairments or adverse operational developments. Slight reversals are observed in 2025, with the ratio turning positive at 30.80% in June 2025.
The Return on Equity (ROE) exhibits the most pronounced fluctuations, starting with highly negative figures of -987.98% in September 2020 and remaining negative through December 2020. A significant recovery occurs in 2021, with ROE reaching positive territory at 3.55% by June and further improving to 57.24% in December 2021 and remaining strong into 2022 and 2023, frequently exceeding 50%. These periods likely correspond to improved net income relative to shareholders’ equity, reflecting periods of profitability and effective equity management. Conversely, from March 2024 onward, the ROE declines sharply into deeply negative territories, with figures such as -340.02% in June 2024 and -382.46% in September 2024, indicating severe profitability issues, possibly due to losses or impairments that heavily eroded shareholder value. The negative trend persists into early 2025 but shows signs of stabilization with a modest improvement to -11.39% by June 2025.
In summary, Extreme Networks Inc. experienced a transition from substantial losses to periods of profitability and improved efficiency between 2020 and early 2023. However, beginning in 2024, profitability ratios sharply declined, suggesting operational or financial difficulties that adversely impacted asset, capital, and equity returns. The recent data indicates a fragile recovery trajectory, contingent on future operational performance and strategic adjustments.