Slides
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1Q27 Financial Results October 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, 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. 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 1Q27 FINANCIAL RESULTS
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 4 1Q27 RESULTS SUMMARY Profitability and Cash Generation Bookings and Revenue Trends Cloud SaaS Subscriptions and Recurring Revenue • Total Revenue of $341M, Up 10% YoY • 7 th Consecutive Quarter of Double - Digit Total Revenue and Product Revenue YoY Growth • Recurring Revenue 2 of $119M, Up 7% YoY • SaaS ARR 2 of $265M, Up 22% YoY • Extreme Platform ONE Bookings Surpassed Half of Subscription Bookings • Continued Double - Digit Growth in Subscription Bookings YoY • Non - GAAP EPS 1 of $0.33, Up 50% YoY • Adjusted EBITDA 1 of $66M , Up 47% YoY • Net Cash 2 of $45M after $25M of Share Repurchases • Free Cash Flow 2 of $39M 1 See Appendices for GAAP to Non - GAAP reconciliation. 2 S ee Appendices for definitions of metrics & KPIs.
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 5 1Q27 HIGHLIGHTS 1 See Appendices for GAAP to Non - GAAP reconciliation. 2 S ee Appendices for definitions of metrics & KPIs. 19.2% Adjusted EBITDA Margin 1 $66M Up 47% YoY Adjusted EBITDA 1 $45M Net Cash 2 17.4% Non - GAAP Operating Margin 1 $0.33 Up 50% YoY Non - GAAP EPS 1 44 Customers with $1M+ in Bookings 62.6% Non - GAAP Gross Margin 1 Non - GAAP Gross Profit 1 $213M Up 12% YoY $265M SaaS ARR 2 35% Recurring Revenue 2 (% of Total Revenue) Total Revenue $341M Up 10% YoY 22% SaaS ARR 2 (Growth YoY)
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 6 62% 63% 63% 63% 62% 63% 65% 64% 38% 37% 37% 37% 38% 37% 35% 36% $279 $285 $307 $310 $318 $317 $339 $341 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 Total Revenue Product Revenue Subscription & Support Revenue QUARTERLY REVENUE RESULTS (IN $M EXCEPT PERCENTAGES) 1 1 S ee Appendices for definitions of metrics & KPIs.
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 7 FINANCIAL HIGHLIGHTS 1 See Appendices for GAAP to Non - GAAP reconciliation. (IN $M EXCEPT PERCENTAGES AND EPS) GAAP Non - GAAP 1 1Q26 4Q26 1Q27 1Q26 4Q26 1Q27 Product Revenue $194.0 $218.5 $218.3 $194.0 $218.5 $218.3 Subscription & Support Revenue $116.2 $120.1 $122.8 $116.2 $120.1 $122.8 Total Revenue $310.2 $338.6 $341.1 $310.2 $338.6 $341.1 Total GM % 60.6% 62.2% 62.1% 61.3% 62.7% 62.6% Operating Income $11.3 $21.1 $23.1 $41.4 $53.3 $59.4 Operating Margin % 3.6% 6.2% 6.8% 13.3% 15.7% 17.4% Net Income $5.6 $18.0 $16.0 $30.1 $43.4 $44.5 EPS $0.04 $0.13 $0.12 $0.22 $0.32 $0.33 Adjusted EBITDA $44.7 $59.2 $65.6
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 8 $177 $177 $191 $190 $197 $197 $212 $213 63.4% 62.3% 62.3% 61.3% 62.0% 62.3% 62.7% 62.6% 58.0% 60.0% 62.0% 64.0% 66.0% 68.0% 70.0% - $50 $100 $150 $200 $250 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 Gross Profit - Non - GAAP 1 Product Gross Profit Subscription & Support Gross Profit Total GM % $175 $175 $189 $188 $195 $196 $211 $212 62.7% 61.7% 61.6% 60.6% 61.4% 61.7% 62.2% 62.1% 58.0% 60.0% 62.0% 64.0% 66.0% 68.0% 70.0% - $50 $100 $150 $200 $250 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 Gross Profit - GAAP Product Gross Profit Subscription & Support Gross Profit Total GM % QUARTERLY GROSS PROFIT AND MARGIN (IN $M EXCEPT PERCENTAGES) 1 See Appendices for GAAP to Non - GAAP reconciliation.
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 9 $136 $137 $144 $149 $149 $149 $159 $154 14.7% 14.1% 15.2% 13.3% 15.0% 15.2% 15.7% 17.4% 6.0% 11.0% 16.0% 21.0% 26.0% - $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 Operating Expenses - Non - GAAP 1 R&D S&M G&A Operating Margin % $162 $165 $191 $177 $182 $178 $189 $189 4.5% 3.6% (0.4%) 3.6% 4.1% 5.5% 6.2% 6.8% (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 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 Operating Expenses - GAAP R&D S&M G&A Other Operating Margin % QUARTERLY OPERATING EXPENSE AND MARGIN (IN $M EXCEPT PERCENTAGES) 1 See Appendices for GAAP to Non - GAAP reconciliation.
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 10 $0.21 $0.21 $0.25 $0.22 $0.26 $0.26 $0.32 $0.33 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 EPS - Non - GAAP 1 $0.06 $0.03 $(0.06) $0.04 $0.06 $0.08 $0.13 $0.12 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 EPS - GAAP QUARTERLY EPS 1 See Appendices for GAAP to Non - GAAP reconciliation.
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 11 APAC EMEA AMERICAS 1Q27 REVENUE BY GEOGRAPHY (IN $M EXCEPT PERCENTAGES) $184M 54% of Revenue $130M $27M 38% of Revenue 8% 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 S ee Appendices for definitions of metrics & KPIs. Balance Sheet Highlights 1Q26 4Q26 1Q27 Cash and Cash Equivalents $209.0 $211.8 $244.5 Accounts Receivable $145.8 $164.6 $167.7 Inventories $93.7 $70.0 $100.0 Accounts Payable $77.8 $89.4 $112.7 Gross Debt 1 $201.2 $165.0 $200.0 Net Cash 1 $7.8 $46.8 $44.5
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 13 $16 $24 $75 ($21) $43 $8 $65 $39 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 Free Cash Flow FREE CASH FLOW (IN $M) 1Q26 4Q26 1Q27 Operating Cash Flow ($14.0) $72.9 $45.4 PP&E Capital Expenditures ($6.9) ($7.6) ($6.8) Free Cash Flow 1 ($20.9) $65.3 $38.6 Share Repurchases $12.0 $25.0 $25.0 1 S ee Appendices for definitions of metrics & KPIs.
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 14 $181 $184 $208 $216 $227 $236 $244 $265 14% 13% 24% 24% 25% 29% 18% 22% $120 $140 $160 $180 $200 $220 $240 $260 $280 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 SaaS ARR 1 SaaS ARR (IN $M EXCEPT PERCENTAGES) YoY Growth 1 S ee Appendices for definitions of metrics & KPIs.
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 15 $103 $101 $109 $111 $115 $114 $116 $119 37% 35% 36% 36% 36% 36% 34% 35% 23% 33% 43% 53% 63% 73% $90 $95 $100 $105 $110 $115 $120 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 Recurring Revenue 1 Recurring Revenue as % of Total Revenue RECURRING REVENUE (IN $M EXCEPT PERCENTAGES) 1 S ee Appendices for definitions of metrics & KPIs.
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 16 $575 $578 $606 $618 $628 $630 $639 $651 50% 49% 51% 53% 53% 54% 57% 60% 40% 45% 50% 55% 60% 65% 70% $400 $450 $500 $550 $600 $650 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27 Deferred Recurring Revenue 1 Deferred Recurring Revenue SaaS Deferred Revenue % DEFERRED RECURRING REVENUE (IN $M EXCEPT PERCENTAGES) 1 1 S ee Appendices for definitions of metrics & KPIs. 2 The 4Q26 amount has been revised from $644M previously reported to $639M to correct the prior - period presentation 2
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 17 2Q27 FINANCIAL GUIDANCE
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 18 2Q27 GUIDANCE (IN $M EXCEPT PERCENTAGES AND EPS) GAAP 2Q27 Non - GAAP 1 2Q27 Revenue $345.8 - $350.8 $345.8 - $350.8 Gross Margin % 61.8% - 62.3% 62.2% - 62.7% Operating Margin % 9.1% - 10.2% 16.4% - 17.4% EPS $0.19 - $0.22 $0.32 - $0.34 1 See Appendices for GAAP to Non - GAAP reconciliation .
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 19 FY27 GUIDANCE 1 See Appendices for GAAP to Non - GAAP reconciliation . (IN $M EXCEPT PERCENTAGES AND EPS) GAAP FY27 Non - GAAP 1 FY27 Revenue $1,402.3 - $1,412.3 $1,402.3 - $1,412.3 Gross Margin % 61.9% - 62.4% 62.3% - 62.8% Operating Margin % 9.2% - 9.7% 17.2% - 17.6% EPS $0.77 - $0.83 $1.35 - $1.39
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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 GAAP TO NON - GAAP RECONCILIATIONS – GROSS MARGIN (IN $M EXCEPT PERCENTAGES) 1Q26 4Q26 1Q27 Product Revenue $194.0 $218.5 $218.3 Subscription & Support Revenue 116.2 120.1 122.8 Total Revenue - GAAP $310.2 $338.6 $341.1 Gross Profit - GAAP 188.0 210.5 211.9 Gross Margin % - GAAP 60.6% 62.2% 62.1% Amortization of Intangibles, Product 0.6 0.3 0.4 Share - Based Compensation, Product 0.8 0.7 0.7 Share - Based Compensation, Subscription & Support 0.7 0.7 0.5 Gross Profit - Non - GAAP $190.1 $212.2 $213.5 Gross Margin % - Non - GAAP 61.3% 62.7% 62.6%
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 22 GAAP TO NON - GAAP RECONCILIATIONS – OPERATING INCOME (IN $M EXCEPT PERCENTAGES) 1Q26 4Q26 1Q27 Operating Income - GAAP $11.3 $21.1 $23.1 Operating Margin - GAAP 3.6% 6.2% 6.8% Amortization of Intangibles 1.1 0.8 0.5 Share - Based Compensation, Total 21.8 21.8 21.5 Restructuring and Related Charges 0.4 0.7 7.3 System Transition Costs 4.9 3.4 2.4 Litigation Costs 1.9 5.7 0.9 Other Non - recurring Costs (Benefit) - (0.2) 3.7 Operating Income - Non - GAAP $41.4 $53.3 $59.4 Operating Margin - Non - GAAP 13.3% 15.7% 17.4%
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 23 GAAP TO NON - GAAP RECONCILIATIONS – NET INCOME (IN $M EXCEPT EPS) 1Q26 4Q26 1Q27 Net Income - GAAP $5.6 $18.0 $16.0 Amortization of Intangibles 1.1 0.8 0.5 Share - Based Compensation, Total 21.8 21.8 21.5 Restructuring and Related Charges 0.4 0.7 7.3 System Transition Costs 4.9 3.4 2.4 Litigation Costs 1.9 5.7 0.9 Other Non - recurring Costs (Benefit) - (0.2) 3.7 Debt Refinancing Charges - - 2.1 Tax Effect of non - GAAP Adjustments (5.6) (6.8) (9.9) Net Non - GAAP Adjustments 24.5 25.4 28.5 Net Income - Non - GAAP $30.1 $43.4 $44.5 EPS - GAAP – Diluted $0.04 $0.13 $0.12 EPS - Non - GAAP - Diluted $0.22 $0.32 $0.33 Shares Outstanding - Basic 133.0 131.2 131.5 Shares Outstanding - Diluted 135.1 133.7 134.7
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 24 ADJUSTED EBITDA RECONCILIATION (IN $M) 1Q26 4Q26 1Q27 Net Income - GAAP $5.6 $18.0 $16.0 Depreciation 3.8 4.0 4.1 Amortization 1.1 3.2 3.2 Share - Based Compensation 21.8 21.8 21.5 Restructuring and Related Charges 0.4 0.7 7.3 System Transition Costs 4.9 3.4 2.4 Litigation Costs 1.9 5.7 0.9 Other Non - recurring Costs (Benefit) - (0.2) 3.7 Debt Refinancing Charges - - 2.1 Interest Income (1.2) (0.8) (1.2) Interest Expense 3.7 3.5 3.1 Provision for (Benefit from) Income Taxes 2.7 (0.1) 2.5 Total Adjustments to GAAP Net Income 39.1 41.2 49.6 Adjusted EBITDA $44.7 $59.2 $65.6
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 25 GAAP TO NON - GAAP RECONCILIATIONS – 2Q27 GUIDANCE Gross Margin Rate Operating Margin Rate Earnings per Share GAAP 61.8% - 62.3% 9.1% - 10.2% $0.19 - $0.22 Estimated Adjustments for: Share - Based Compensation 0.3% 6.6% - 6.7% 0.17 Amortization of Intangibles 0.1% 0.1% – System Transition Costs – 0.5% 0.01 Non - GAAP Tax Adjustment – – (0.06) – (0.05) Non - GAAP 62.2% - 62.7% 16.4% - 17.4% $0.32 - $0.34
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 26 GAAP TO NON - GAAP RECONCILIATIONS – FY27 GUIDANCE Gross Margin Rate Operating Margin Rate Earnings per Share GAAP 61.9% - 62.4% 9.2% - 9.7% $0.77 - $0.83 Estimated Adjustments for: Share - Based Compensation 0.3% 6.2% - 6.3% 0.66 – 0.67 Amortization of Intangibles 0.1% 0.1% 0.01 Restructuring and Related Charges – 0.7% 0.07 Other Non - recurring Costs – 0.3% 0.03 Litigation Charges – 0.1% 0.01 System Transition Costs – 0.5% 0.05 Debt Refinancing Charges – – 0.02 Non - GAAP Tax Adjustment – – (0.29) - (0.28) Non - GAAP 62.3% - 62.8% 17.2% - 17.6% $1.35 - $1.39
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 27 DEFINITIONS SaaS ARR (SaaS Annual Recurring Revenue) SaaS ARR is an operating metric used by management to measure the annualized value of customer arrangements for our software sol utions, which are delivered via cloud - based subscription (such as Extreme Platform ONE, generally available July 2025, and ExtremeCloud IQ) or term - based software deployed on - premises by the customer. We include term - based license arrangements in SaaS ARR because they provide time - bound access to our software solutions and are operational ly and economically similar to our cloud - based subscriptions, even though they are accounted for differently under U.S. GAAP. SaaS ARR is calculated using the annualized value of quarterly subscription revenue plus the trailing twelve months of the so ftw are license portion of term - based license arrangements, which includes revenue recognized during the applicable period with respect to multi - year term - based license arran gements. The Company has not adjusted SaaS ARR to allocate revenue from these multi - year term - based license arrangements over their contractual term because they have hist orically been immaterial to SaaS ARR and doing so would not be expected to materially affect reported SaaS ARR or related growth rates. For those software solutions t hat include embedded support as part of a bundled offering, including Extreme Platform ONE and term - based license arrangements, the quarterly revenue recognized in the period wit h respect to the support portion of the offering is annualized and included in SaaS ARR. SaaS ARR excludes perpetual licenses, professional services revenue, support revenue associated with hardware or standalone m ain tenance contracts, and other non - recurring or non - subscription revenue streams. Management evaluates and manages support revenues from maintenance contracts primarily through analysis of the related GAAP revenue trends, renewal activity, and customer support operations, together with broader business performance indicators, rather than th rough a single standalone metric, in part due to the Company’s go - to - market model in which many customers transact through distributors and resellers, limiting consistent visibi lity into end - customer usage and renewals. Management uses SaaS ARR to evaluate the scale and trajectory of the Company’s subscription - based offerings and progress against customer adoption initiatives. We believe this metric is useful to investors for the same reasons, as it provides insight into our ability to acquire new customers and to maintain and expand our existing customer relationships. SaaS ARR should be considered independently of revenue or deferred revenue under U.S. GAAP, does not have a st and ardized meaning, and is not a substitute for, or a forecast of, revenue. Recurring Revenue The sum of all Subscription and Support revenue, less Professional Services revenue, that is recognized over multiple periods , q uarters or years, rather than a single point in time. Deferred Recurring Revenue The ending quarterly balance of advance payments received for Recurring Revenue that are to be delivered or performed in the fut ure. SaaS Deferred Revenue The ending quarterly balance of advance payments received for SaaS goods or services that are to be delivered or performed in th e future.
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©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED. 28 DEFINITIONS (CONTINUED) Gross Debt Long - term and current portion of long - term debt as shown on the balance sheet plus unamortized debt issuance costs, as applicabl e. Net Cash Cash and Cash Equivalents minus Gross Debt. Free Cash Flow A measure of operating performance representing GAAP net cash provided by operating activities, less capital expenditures for pu rchases 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 th ings, invest in Extreme’s business, make strategic acquisitions, and strengthen the balance sheet. This metric does not represent the total increase or decrease in th e C ompany's cash balance for the period. Adjusted EBITDA Calculated as GAAP net income excluding interest, income taxes, depreciation and amortization as well as costs or benefits th at are not reflective of the Company’s ongoing or expected future operational performance as noted on the Adjusted EBITDA Reconciliation slide. Subscription and Support Revenue Includes Subscription, Support and Professional Services revenue.
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29 ©2026 EXTREME NETWORKS, INC. ALL RIGHTS RESERVED.