We attended Extreme Networks’ Investor and Analyst Day at NASDAQ’s New York City facilities earlier this week. The company was decidedly upbeat and emphasized that it has an opportunity to pursue customers currently served by its competitors. The company reiterated that its Extreme Platform ONE (its cloud and AI management system) has been in General Availability since July 2025 and said it is pleased with the uptake amongst its customers. The company’s CFO explained that the company expects to grow revenues in double digits year-over-year (Y/Y) and noted that one of the ways it plans to achieve this is by embedding customer support into its subscriptions. Historically, its support contract attach rate has been approximately 65-70% of its customers, while subscriptions attach at a rate of 95%. Parenthetically, the company referred to this as “Platformization.” By offering support as part of subscriptions, the company expects it’ll see some uplift in its annual recurring revenue.
We really enjoyed Norman Rice, Chief Commercial Officer, who explained that the company is now offering four different selling models to engage with varying customer demands, while also showing a willingness to share economics with its resellers. These models are: Traditional CAPEX, MSP Hybrid, Pure OPEX (ENaaS), and Private Subscription Offer. The company explained that 14% of recent bookings are from more recently introduced and latter three offerings.
Extreme showed slides that highlighted 650 Group’s Cloud Managed Services and AI Networking for Campus, with total addressable market revenue sizes, both of which had significantly higher growth rates than the overall campus market. Extreme has performed well in these segments and is well-positioned to gain share in both these high-growth portions of the market.