Forensic Analysis · Technology / Software · as of Sep 25, 2026
Extreme Networks Inc (EXTR)
A forensic read on Extreme Networks Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
0.4
Distress distance
Clean
Earnings quality
6
Forensic signals
69.1
P / E (ttm)
47.5%
ROE
$2.9B
Market cap
12.6%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Extreme Networks Inc earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 0.4, placing it in the Distress zone. 6 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+109.6%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +109.6% relative to their own average in FY2026 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by receivables up +30% against revenue +13%. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 309% of net operating assets, against an accruals ratio of 109.6%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
47d DSO
FY2025→FY2026
Receivables vs revenue.Days sales outstanding moved from 41 to 47 days FY2025→FY2026 (receivables +30% vs revenue +13%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections. Across FY2024–FY2026 the day count ran 29 → 41 → 47 days — the latest step continues a climb that was already under way, which is the persistence that separates a collection problem from a busy quarter. Deferred revenue was roughly flat (+1%) over the same period, which doesn't corroborate a benign upfront-billing explanation for the receivables build. Measured against the same quarter twelve months earlier — like-for-like on the calendar, so an ordinary seasonal build cannot produce it — receivables took longer to collect in 5 consecutive quarters (Jun 2025 +6, Sep 2025 +10, Dec 2025 +5, Mar 2026 +15, Jun 2026 +7 days). In the latest of them the receivable balance grew +30% against sales +10%, so more of a quarter's billings were still outstanding at the period end than a year earlier — money the company has recognized and not yet been paid. Both figures are measured on period-end balances rather than the beginning-plus-ending average, because averaging needs the balance a year before every reading — FY2025's opening balance is on file, but across the 3 fiscal years read here (FY2024–FY2026) the average yields only 2 day counts (1 step), too few to tell a climb from one year's move.
Key fundamentals
Latest Revenue$1.28B
Revenue Growth YoY+12.6%
Revenue CAGR (2yr)+7.2%
Net Margin3.3%
Free Cash Flow$95.2M
Return on Equity47.5%
Debt / Equity1.85x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Extreme Networks Inc's actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Sep 25, 2026. Forensic signals flag probability, not certainty.
+2.2%/yr
FY2024–FY2026
Share-count dilution.Diluted share count changed +4% over the last 2 years to FY2026 (+2.2%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~2.2% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2024 has been diluted ~4%.
7% of rev
FY2026
Stock-based comp load.Stock-based compensation ran 7% of revenue and 93% of free cash flow in FY2026 — about $0.65 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 2.2% a year and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
13.1%
FY2026
Return on invested capital.Return on invested capital is 13.1% in the latest fiscal year and rising across FY2024–FY2026 from -13.6%. After-tax operating profit was ($52M) in FY2024 and $51M in FY2026, with operating income at -5.8% of revenue in FY2024, 1.5% in FY2025 and 4.9% in FY2026. The capital base behind it barely moved across FY2024–FY2026 ($378M to $393M, +4%), so there has been little new capital for that return to be earned on. FY2024's operating profit carried a $36M restructuring charge that alone took about 7.6 points off that year's return, so about 7.6 of the 26.7-point rise across FY2024–FY2026 is that charge leaving the base year rather than the capital earning more. FY2025's operating profit carried a $2M restructuring charge that alone took about 0.3 points off that year's return; FY2025 sits between the two ends of FY2024–FY2026, so the charge shapes the path between them without moving the change across it.
91% of FCF
FY2026
Shareholder returns.Returned $87M to shareholders (buybacks + dividends) in FY2026 — 91% of free cash flow. Right at the limit of what free cash flow covers — little room before it's funded by debt or the balance sheet. That ratio has actually been EASING, not tightening further — down from ~133% of free cash flow two years back. Counting the $88M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 184%.