Slides
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2Q26 Financial Results January 28, 2026
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 2 Forward - Looking Statements This presentation contains forward - looking statements including statements regarding our business outlook; future operating and financial metrics and results; market conditions and global demand; customer adoption of our technologies, products and solutions; our product roadmap and innovation priorities; our go - to - market execution; and our ability to compete effectively and capitalize on industry dynamics and competitive developments in the enterprise networking market. You should not place undue reliance on forward - looking statements, which are based on current beliefs, assumptions and expectations, and speak only as of the date of this presentation. These forward - looking statements involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by these statements. For a detailed description of these risks and uncertainties, please refer to our most recent Annual Report on Form 10 - K and any subsequent filings that are or will be on file with the Securities and Exchange Commission. Except as required by law, we undertake no obligation to update these statements after the date of this presentation. DISCLAIMER Non - GAAP Financial Measures This presentation includes certain financial measures that are not presented in accordance with generally accepted accounting principles in the United States (“GAAP”), such as, among other things, Non - GAAP Gross Profit, Non - GAAP EPS, Free Cash Flow, Non - GAAP Gross Margin, Non - GAAP Operating Margin, Net Cash (Debt), Non - GAAP Operating Income (Loss), Non - GAAP Net Income (Loss), Non - GAAP Operating Expense, Gross Debt, and Adjusted EBITDA. Extreme Networks, Inc. (the “Company”) believes these Non - GAAP measures provide both management and investors with additional insight into its current operations, the trends affecting the Company, the Company's marketplace performance, and the Company’s ability to generate cash from operations. Accordingly, management uses these Non - GAAP measures along with comparable GAAP information when evaluating the Company’s historical performance and future business activities. However, Non - GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. The Company’s Non - GAAP measures may be different than those used by other companies and should be considered in conjunction with, and not as a substitute for, the Company’s financial information presented in accordance with GAAP. We provide Adjusted Results that show the results for FY’24 excluding the Non - GAAP adjustments, the additional provision for E&O inventory and adjustments for the related tax impact. Please refer to our most recent earnings press release, which is posted on the “Investor Relations” section of our website , and to the Appendices to this presentation for the required reconciliation to the most comparable GAAP financial measures. Reconciliations for prior quarters are available in the earnings press releases for such previous quarters, also available on the “Investor Relations” section of our website.
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 3 2Q26 FINANCIAL RESULTS
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 4 2Q26 RESULTS SUMMARY 1 See slides 15 & 16 f or definitions of Recurring Revenue and Deferred Recurring Revenu e 2 See slide 14 for the definition of SaaS ARR 3 S ee Appendices for GAAP to Non - GAAP reconciliation 4 Net Cash is defined as Cash and cash equivalents minus Gross Debt, see slide 12 Profitability and Cash Generation Bookings and Revenue Trends Cloud SaaS Subscriptions and Recurring Revenue • 7 th Consecutive Quarter of Sequential Growth in Revenue • Strong YoY Revenue Growth Across All Regions • Recurring Revenue 1 of $115M up 12% YoY • SaaS ARR 2 of $227M , Up 25% YoY • Extreme Platform ONE Bookings Ahead of Expectations • Continued Double - Digit Growth in Subscription Bookings YoY • Total Deferred Recurring Revenue 1 of $628M , up 9% YoY • Non - GAAP EPS growth of 24% YoY • Adjusted EBITDA 3 of approximately $52M • Net Cash 4 of $47M • Free Cash Flow of $43M
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 5 2Q26 HIGHLIGHTS 1 See Appendices for GAAP to Non - GAAP reconciliation. 2 See slide 1 4 for SaaS ARR Definition. 3 See slide 1 5 for Recurring Revenue definition. 4 Net Cash is defined as Cash and Cash Equivalents minus Gross Debt, see slide 12. $47M Net Cash 4 $ 52M Adjusted EBITDA 1 65 Total Managed Service Providers 15.0% Non - GAAP Operating Margin 1 % $0.26 Non - GAAP EPS 1 34 $1M+ Customers (Over $1M in bookings during the quarter) 62.0% Non - GAAP Gross Margin 1 % Non - GAAP Gross Profit 1 $197M $227M SaaS ARR 2 36% Recurring Revenue 3 (% of Total Revenue) Total Revenue $318M 25% SaaS ARR 2 (Growth YoY)
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 6 FINANCIAL HIGHLIGHTS GAAP Non - GAAP 1 2Q25 1Q26 2Q26 2Q25 1Q26 2Q26 Product Revenue $172.3 $194.0 $197.8 $172.3 $194.0 $197.8 Subscription & Support Revenue $107.1 $116.2 $120.2 $107.1 $116.2 $120.2 Total Revenue $279.4 $310.2 $318.0 $279.4 $310.2 $318.0 Total GM % 62.7% 60.6% 61.4% 63.4% 61.3% 62.0% Operating Income $12.7 $11.3 $13.0 $41.2 $41.4 $47.7 Operating Margin % 4.5% 3.6% 4.1% 14.7% 13.3% 15.0% Net Income $7.4 $5.6 $7.9 $28.6 $30.1 $34.7 EPS $0.06 $0.04 $0.06 $0.21 $0.22 $0.26 1 See Appendices for GAAP to Non - GAAP reconciliation. (IN $M EXCEPT PERCENTAGES AND EPS)
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 7 50% 60% 60% 62% 63% 63% 63% 62% 50% 40% 40% 38% 37% 37% 37% 38% $211 $257 $269 $279 $285 $307 $310 $318 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Total Revenue Product Revenue Subscription & Support Revenue QUARTERLY REVENUE RESULTS (IN $M EXCEPT PERCENTAGES) 1 Subscription and Support revenue includes Subscription, Support and Professional Services revenue. 1
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 8 $129 $163 $171 $177 $177 $191 $190 $197 61.2% 63.5% 63.7% 63.4% 62.3% 62.3% 61.3% 62.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% - $50 $100 $150 $200 $250 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Gross Profit - Adjusted Results 1 Product Gross Profit Subscription & Support Gross Profit Total GM % - Adjusted $120 $115 $170 $175 $175 $189 $188 $195 56.8% 44.7% 63.0% 62.7% 61.7% 61.6% 60.6% 61.4% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% - $50 $100 $150 $200 $250 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Gross Profit - GAAP Product Gross Profit Subscription & Support Gross Profit Total GM % - GAAP QUARTERLY GROSS PROFIT AND MARGIN (IN $M EXCEPT PERCENTAGES) 1 Adjusted Results exclude the Non - GAAP adjustments and the additional provision for E&O inventory. Adjustments were made in 3Q24 and 4Q24 . All other quarters are reported on a Non - GAAP basis. See Appendices for GAAP to Adjusted Results reconciliation.
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 9 QUARTERLY OPERATING EXPENSE AND MARGIN (IN $M EXCEPT PERCENTAGES) $147 $128 $138 $136 $137 $144 $149 $149 (8.6%) 13.5% 12.4% 14.7% 14.1% 15.2% 13.3% 15.0% (12.0%) (2.0%) 8.0% 18.0% 28.0% 38.0% - $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Operating Expenses - Adjusted Results 1 R&D S&M G&A Operating Margin % $182 $164 $174 $162 $165 $191 $177 $182 (29.6%) (19.1%) (1.8%) 4.5% 3.6% (0.4%) 3.6% 4.1% (40.0%) (30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% - $50 $100 $150 $200 $250 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Operating Expenses - GAAP R&D S&M G&A Other Operating Margin % 1 Adjusted Results exclude the Non - GAAP adjustments and the additional provision for E&O inventory. Adjustments were made in 3Q24 and 4Q24 . All other quarters are reported on a Non - GAAP basis. See Appendices for GAAP to Adjusted Results reconciliation.
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 10 $(0.14) $0.19 $0.17 $0.21 $0.21 $0.25 $0.22 $0.26 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 EPS - Adjusted Results 1 $(0.50) $(0.42) $(0.08) $0.06 $0.03 $(0.06) $0.04 $0.06 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 EPS - GAAP QUARTERLY EPS 1 Adjusted Results exclude the Non - GAAP adjustments and the additional provision for E&O inventory. Adjustments were made in 3Q24 and 4Q24 . All other quarters are reported on a Non - GAAP basis. See Appendices for GAAP to Adjusted Results reconciliation.
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 11 APAC EMEA AMERICAS 2Q26 REVENUE BY GEOGRAPHY (IN $M EXCEPT PERCENTAGES) $148M 47% of Revenue $140M $29M 44% of Revenue 9% of Revenue Note: t he total of revenues in each geography may not equal total revenue due to rounding.
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 12 FINANCIAL HIGHLIGHTS – BALANCE SHEET (IN $M) 1 Gross Debt is defined as long - term and current portion of long - term debt as shown on the balance sheet plus unamortized debt iss uance costs, if any. 2 Net Cash (Debt) is defined as Cash and Cash Equivalents minus Gross Debt. Balance Sheet Highlights 2Q25 1Q26 2Q26 Cash and Cash Equivalents $170.3 $209.0 $219.8 Accounts Receivable $117.6 $145.8 $152.4 Inventories $132.3 $93.7 $83.6 Accounts Payable $52.4 $77.8 $64.8 Gross Debt 1 $185.0 $201.2 $172.5 Net Cash (Debt) 2 ($14.7) $7.8 $47.3
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 13 ($74) $11 $12 $16 $24 $75 ($21) $43 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Free Cash Flow FREE CASH FLOW (IN $M) Extreme uses the free cash flow metric as a measure of operating performance. Free cash flow represents GAAP net cash provide d b y (used in) operating activities, less capital expenditures for purchases of property, equipment and capitalized software development costs. Extreme considers free cash flow to be useful information for management and investors regarding th e amount of cash generated by the business after the purchases of property, equipment and capitalized software development costs, which can then be used to, among other things, invest in Extreme’s business, make strategic acquisitions, and strengthen the balance sheet. A limitation of the utility of this free cash flow metric as a measure of financial performance is that it does not represent the total increase or decrease in the Company's cash balance for the period. Free Cash Flow 2Q25 1Q26 2Q26 Operating Cash Flow $21.5 ($14.0) $50.1 PP&E Capital Expenditures (5.4) (6.9) (7.1) Free Cash Flow $16.1 ($20.9) $43.0 Share Repurchases $0.0 $12.0 $0.0
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 14 $162 $167 $174 $181 $184 $208 $216 $227 38% 29% 23% 14% 13% 24% 24% 25% $120 $140 $160 $180 $200 $220 $240 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 SaaS ARR 1 SaaS ARR (IN $M EXCEPT PERCENTAGES) 1 Extreme uses SaaS annual recurring revenue (“SaaS ARR”) to identify the annual recurring revenue of ExtremeCloud IQ (XIQ), Extreme Platform ONE (which includes embedded support), and other subscription revenue, based on the annualized value of quarterly subscription revenue and term - based licenses. We believe that SaaS ARR is an important metric beca use it is driven by our ability to acquire new customers and to maintain and expand our relationship with existing customers. SaaS ARR should be viewed independently of revenue or deferred revenue accounted under U.S. GAAP. S aaS ARR does not have a standardized meaning and therefore may not be comparable to similarly titled measures presented by other companies. SaaS ARR is not intended to be a replacement for forecasts of revenue. YoY Growth
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 15 $100 $101 $103 $103 $101 $109 $111 $115 47% 39% 38% 37% 35% 36% 36% 36% 25% 35% 45% 55% 65% 75% 85% 95% 105% 115% $90 $95 $100 $105 $110 $115 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Recurring Revenue 1 Recurring Revenue as % of Total Revenue RECURRING REVENUE (IN $M EXCEPT PERCENTAGES) 1 Recurring Revenue is the sum of all Subscription and Support revenue, less Professional Services revenue, that is recognized ove r multiple periods, quarters or years, rather than a single point in time.
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 16 DEFERRED RECURRING REVENUE (IN $M EXCEPT PERCENTAGES) 1 Deferred Recurring Revenue - refers to the ending quarterly balance of advance payments received for Recurring Revenue that are to be delivered or performed in the future. Recurring Revenue is the sum of all Subscription and Support revenue, less Professional Services revenue, that is recognized ove r multiple periods, quarters or years, rather than a single point in time. 2 SaaS Deferred Revenue refers to the ending quarterly balance of advance payments received for SaaS goods or services that are to be delivered or performed in the future. $539 $557 $562 $575 $578 $606 $618 $628 48% 48% 50% 50% 49% 51% 53% 53% 40% 45% 50% 55% 60% 65% 70% $400 $450 $500 $550 $600 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Deferred Recurring Revenue 1 Deferred Recurring Revenue SaaS % 2
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 17 3Q26 FINANCIAL GUIDANCE
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 18 3Q26 GUIDANCE (IN $M EXCEPT PERCENTAGES AND EPS) GAAP 3Q26 Non - GAAP 1 3Q26 Revenue ($M) $309.1 - $314.1 $309.1 - $314.1 Gross Margin % 60.4% - 60.8% 61.0% - 61.4% Operating Margin % 2.8% - 4.1% 13.6% - 14.8% EPS $0.03 - $0.06 $0.23 - $0.25 1 See Appendices for GAAP to Non - GAAP reconciliation .
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 19 GAAP FY26 Non - GAAP 1 FY26 Revenue ($M) $1,262 - $1,270 $1,262 - $1,270 Gross Margin % 60.5% - 61.1% 61.1% - 61.7% Operating Margin % 4.1% - 4.6% 14.3% - 14.8% EPS $0.24 - $0.29 $0.98 - $1.02 FY26 GUIDANCE 1 See Appendices for GAAP to Non - GAAP reconciliation . (IN $M EXCEPT PERCENTAGES AND EPS)
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 20 Note: The totals for some periods may not foot due to rounding. Please see press release for full reconciliation. APPENDICES GAAP to Non - GAAP Reconciliations and Operating Metrics
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 21 SUPPLEMENTAL INFORMATION: GAAP TO ADJUSTED RESULTS (IN $M EXCEPT PERCENTAGES AND EPS) 1 See slides 25 - 30 for GAAP to Non - GAAP reconciliation . We recorded an additional provision for excess and obsolete (“E&O”) inventory and loss on our supplier commitments of $64.5 m ill ion during fiscal 2024. The quarterly split was as follows: 1Q24: $10.5m, 3Q24: $7.5m, and 4Q24: $46.5m. The additional provision was taken for certain of the Company’s older products which are scheduled t o g o end of sale during fiscal year 2025 and for which the excess of such inventories is beyond the demand forecast. To provide more clarity on the impact of this provision, we provide the following tha t shows the results excluding the Non - GAAP adjustments, the additional provision for E&O inventory, and adjustments for the related tax impact. 1Q24 2Q24 3Q24 4Q24 FY24 GAAP Non - GAAP 1 E&O Adj Adjusted GAAP Non - GAAP 1 E&O Adj Adjusted GAAP Non - GAAP 1 E&O Adj Adjusted GAAP Non - GAAP 1 E&O Adj Adjusted GAAP Non - GAAP 1 E&O Adj Adjusted Product Revenue $253.5 $253.5 - $253.5 $186.6 $186.6 - $186.6 $106.4 $106.4 - $106.4 $152.8 $152.8 - $152.8 $699.3 $699.3 - $699.3 Subscription & Support Revenue $99.6 $99.6 - $99.6 $109.8 $109.8 - $109.8 $104.6 $104.6 - $104.6 $103.9 $103.9 - $103.9 $417.9 $417.9 - $417.9 Total Revenue $353.1 $353.1 - $353.1 $296.4 $296.4 - $296.4 $211.0 $211.0 - $211.0 $256.7 $256.7 - $256.7 $1,117.2 $1,117.2 - $1,117.2 Total GM% 60.3% 61.1% 3.0% 64.1% 61.9% 62.5% - 62.5% 56.8% 57.6% 3.6% 61.2% 44.7% 45.4% 18.1% 63.5% 56.5% 57.2% 5.8% 63.0% Operating Income (Loss) $35.9 $62.5 $10.5 $73.0 $10.3 $43.9 - $43.9 ($62.5) ($25.7) $7.5 ($18.2) ($48.9) ($11.8) $46.5 $34.7 ($65.2) $68.9 $64.5 $133.4 Operating Margin % 10.2% 17.7% 3.0% 20.7% 3.5% 14.8% - 14.8% (29.6%) (12.2%) 3.6% (8.6%) (19.1%) (4.6%) 18.1% 13.5% (5.8%) 6.2% 5.8% 11.9% EBITDA $43.1 $67.8 $10.5 $78.3 $15.6 $48.2 - $48.2 ($56.6) ($20.9) $7.5 ($13.4) ($37.8) ($7.7) $46.5 $38.8 ($35.6) $87.3 $64.5 $151.8 Net Income (Loss) $28.7 $46.5 $8.2 $54.7 $4.0 $31.5 - $31.5 ($64.4) ($24.8) $6.6 ($18.2) ($54.2) ($9.9) $34.6 $24.7 ($86.0) $43.4 $49.3 $92.7 EPS $0.21 $0.35 $0.06 $0.41 $0.03 $0.24 - $0.24 ($0.50) ($0.19) $0.05 ($0.14) ($0.42) ($0.08) $0.27 $0.19 ($0.66) $0.33 $0.37 $0.70
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 22 $122 $116 $171 $177 $177 $191 $190 $197 57.6% 45.4% 63.7% 63.4% 62.3% 62.3% 61.3% 62.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% - $50 $100 $150 $200 $250 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Gross Profit - Non - GAAP 1 Product Gross Profit Subscription & Support Gross Profit Total GM % - Non-GAAP NON - GAAP QUARTERLY RESULTS OF OPERATIONS (IN $M EXCEPT PERCENTAGES) 1 See slides 25 - 30 for GAAP to Non - GAAP reconciliation .
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 23 NON - GAAP QUARTERLY RESULTS OF OPERATIONS (IN $M EXCEPT PERCENTAGES) 1 See slides 25 - 30 for GAAP to Non - GAAP reconciliation . $147 $128 $138 $136 $137 $144 $149 $149 (12.2%) (4.6%) 12.4% 14.7% 14.1% 15.2% 13.3% 15.0% (15.0%) (5.0%) 5.0% 15.0% 25.0% 35.0% - $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Operating Expenses - Non - GAAP 1 R&D S&M G&A Operating Margin %
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 24 $(0.19) $(0.08) $0.17 $0.21 $0.21 $0.25 $0.22 $0.26 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 EPS - Non - GAAP 1 NON - GAAP QUARTERLY RESULTS OF OPERATIONS 1 See slides 25 - 30 for GAAP to Non - GAAP reconciliation .
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 25 GAAP TO NON - GAAP RECONCILIATIONS – GROSS MARGIN (IN $M EXCEPT PERCENTAGES) 2Q25 1Q26 2Q26 Product Revenue $172.3 $194.0 $197.8 Subscription & Support Revenue 107.1 116.2 120.2 Total Revenue - GAAP $279.4 $310.2 $318.0 Gross Margin - GAAP 175.1 188.0 195.1 Gross Margin % - GAAP 62.7% 60.6% 61.4% Amortization of Intangibles, Product 0.6 0.6 0.3 Share - Based Compensation, Product 0.7 0.8 0.8 Share - Based Compensation, Subscription & Support 0.8 0.7 0.8 Gross Margin - Non - GAAP $177.2 $190.1 $197.0 Gross Margin % - Non - GAAP 63.4% 61.3% 62.0%
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 26 GAAP TO NON - GAAP RECONCILIATIONS – OPERATING INCOME (IN $M EXCEPT PERCENTAGES) 2Q25 1Q26 2Q26 Operating Income - GAAP $12.7 $11.3 $13.0 Operating Margin - GAAP 4.5% 3.6% 4.1% Amortization of Intangibles 1.1 1.1 0.7 Share - Based Compensation, Total 21.5 21.8 22.9 Restructuring and Related Charges 1.0 0.4 0.2 System Transition Costs 4.0 4.9 6.5 Litigation Costs 0.9 1.9 0.8 Other Non - recurring Costs - - 3.6 Operating Income - Non - GAAP $41.2 $41.4 $47.7 Operating Margin - Non - GAAP 14.7% 13.3% 15.0%
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 27 GAAP TO NON - GAAP RECONCILIATIONS – NET INCOME (IN $M EXCEPT EPS) 2Q25 1Q26 2Q26 Net Income - GAAP $7.4 $5.6 $7.9 Diluted Shares 134.1 135.1 135.2 EPS - GAAP $0.06 $0.04 $0.06 Amortization of Intangibles 1.1 1.1 0.7 Share - Based Compensation, Total 21.5 21.8 22.9 Restructuring and Related Charges 1.0 0.4 0.2 System Transition Costs 4.0 4.9 6.5 Litigation Costs 0.9 1.9 0.8 Other Non - recurring Costs - - 3.6 Tax Effect of non - GAAP Adjustments (7.3) (5.6) (7.9) Net Non - GAAP Adjustments 21.2 24.5 26.8 Net Income - Non - GAAP $28.6 $30.1 $34.7 Diluted Shares 134.1 135.1 135.2 EPS - Non - GAAP $0.21 $0.22 $0.26
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 28 ADJUSTED EBITDA RECONCILIATION (IN $M) 2Q25 1Q26 2Q26 Net Income - GAAP $7.4 $5.6 $7.9 Depreciation 3.9 3.8 4.0 Amortization 1.1 1.1 1.8 Share - Based Compensation 21.5 21.8 22.9 Restructuring and Related Charges 1.0 0.4 0.2 System Transition Costs 4.0 4.9 6.5 Litigation Costs 0.9 1.9 0.8 Other Non - recurring Costs - - 3.6 Interest Income (0.8) (1.2) (1.1) Interest Expense 4.1 3.7 3.3 Provision for Income Taxes 2.6 2.7 2.5 Total Adjustments to GAAP Net Income 38.3 39.1 44.5 Adjusted EBITDA $45.7 $44.7 $52.4
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 29 GAAP TO NON - GAAP RECONCILIATIONS – 3Q26 GUIDANCE Gross Margin Rate Operating Margin Rate Earnings per Share GAAP 60.4% - 60.8% 2.8% - 4.1% $0.03 - $0.06 Estimated Adjustments for: Share - Based Compensation 0.5% 7.3% - 7.4% 0.17 Amortization of Product Intangibles 0.1% 0.1% 0.00 Amortization of Non - product Intangibles – 0.1% 0.00 Other Non - recurring Costs – 0.8% 0.02 Litigation Charges – 0.7% 0.02 System Transition Costs – 1.7% 0.04 Non - GAAP Tax Adjustment – – (0.06) – (0.05) Non - GAAP 61.0% - 61.4% 13.6% - 14.8% $0.23 - $0.25
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 30 GAAP TO NON - GAAP RECONCILIATIONS – FY26 GUIDANCE Gross Margin Rate Operating Margin Rate Earnings per Share GAAP 60.5% - 61.1% 4.1% - 4.6% $0.24 - $0.29 Estimated Adjustments for: Share - Based Compensation 0.5% 7.2% 0.67 Amortization of Product Intangibles 0.1% 0.1% 0.01 Amortization of Non - product Intangibles — 0.1% 0.01 Other Non - recurring Costs — 0.5% 0.05 Litigation Charges – 0.6% 0.06 System Transition Costs – 1.7% 0.15 Non - GAAP Tax Adjustment – – (0.22) – (0.21) Non - GAAP 61.1% - 61.7% 14.3% - 14.8% $0.98 – $1.02
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31 ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED.