Extreme Networks Inc (EXTR)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	-7,467	-53,867	-121,750	-125,144	-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
Total stockholders’ equity	US$ in thousands	65,584	71,705	51,208	32,721	25,282	64,962	108,184	108,482	116,752	103,192	84,567	110,603	90,343	99,263	69,599	72,325	54,468	35,136	17,925	9,911
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%

June 30, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-7,467K ÷ $65,584K
= -11.39%

The analysis of Extreme Networks Inc.'s return on equity (ROE) over the specified period reveals significant fluctuations, characterized by phases of extreme negative values followed by periods of positive performance and subsequent deterioration.

Initially, during the fiscal year-ended September 30, 2020, the company experienced an extremely negative ROE of approximately -987.98%. This indicates that the company was producing significant losses relative to shareholders’ equity, which may have been attributable to substantial operating losses, high expenses, or one-time charges. The negative trend persisted through December 31, 2020, with a less severe but still substantial ROE of around -431.97%, suggesting that the company's profitability remained under pressure.

In the first quarter of 2021, ROE improved significantly to -84.26%, indicating a reduction in losses relative to equity, but still reflecting unprofitability. Starting in the second quarter of 2021, the ROE turned positive, reaching 3.55%, which denotes a shift towards profitability. The positive momentum continued through the subsequent quarters, with noteworthy increases: 32.41% by September 2021, and reaching 57.24% by December 2021, followed by peaks at approximately 49.55% in March 2022 and maintaining high levels around 49.00% to 57.65% through December 2022.

During this period, the company demonstrated a strong return on shareholders' equity, suggesting improved operational efficiency, profitable growth, or favorable market conditions. The upward trend persisted into 2023, with ROE at 56.26% for March 2023, rising to 66.87% by June 2023, and reaching an all-time high of 86.80% in September 2023, before a slight decline to 74.15% in the final quarter of 2023.

However, the most recent data indicates a sharp reversal, with ROE plummeting into negative territory. For March 2024, ROE decreased to -9.75%, and subsequent quarters show a dramatic deterioration: -340.02% in June 2024, further declining to -382.46% in September 2024, and remaining negative at -237.76% in December 2024. The downward trend continued into 2025, with ROE at -75.12% in March 2025 and approaching -11.39% by June 2025.

This pattern suggests that after a period of marked profitability, the company faced substantial setbacks, potentially due to increased expenses, write-downs, or operational challenges leading to losses exceeding equity. The extreme negative ROE values in 2024 and 2025 imply severe issues adversely affecting profitability and shareholder returns.

Overall, Extreme Networks Inc. demonstrates a markedly cyclical ROE trend, transitioning from severe losses to periods of high profitability, followed by dramatic reversals into substantial losses. The recent negative trajectory indicates a challenging financial phase, highlighting volatility and significant risk associated with the company’s current financial health.