Extreme Networks, Inc.

Hello. Thank you for joining us and welcome to the Extreme Networks Q2 Fiscal Year 2016.

Corporate Development. With me today are Xtreme Networks President and CEO, Ed Myercord, and Executive Vice President and CFO, Kevin Rhodes. We just distributed a press release and filed an 8K detailing Xtreme Networks financial results for the second quarter of 2026. A copy of the press release, which includes our gap to non-gap reconciliations, and our earnings presentation is available in the IR section at XtremeNetworks.com. Today's call and Q&A may include certain forward-looking statements based on current expectations about Extreme's future financial and operational results, growth expectations, new product introductions, and strategies. All financial disclosures made on this call will be on a non-GAAP basis unless stated otherwise. We caution you not to put undue reliance on these forward-looking statements as they involve risks that can cause actual results to differ materially from those anticipated by these statements. These risks are described in our risk factors in our 10-K and 10-Q filings. Any forward-looking statements made on this call reflect our analysis as of today. We have no plans to update them except as required by law. Following our prepared remarks, we will take questions. And now I will turn the call over to Xtreme's President and CEO, Ed Myercourt.

Thank you, Stan, and thank you all for joining us this morning. The second quarter marked our seventh straight quarter of revenue growth, driven by strong demand for our AI power platform, fueling share gains and double-digit year-over-year growth. Over the past 12 months, we've grown three times faster than our largest competitors in the enterprise networking space, highlighting the fact that we're winning market share. Our revenue is $318 million this quarter, exceeding our guidance and up 14% year-over-year, driven by continued competitive wins with large customers across all verticals. Product revenue increased double digits year-over-year for the fourth consecutive quarter and Cloud subscription momentum lifted SaaS ARR to 25% year-over-year growth, landing at 227 million. And finally, we experienced our strongest subscription bookings on record with Extreme Platform One leading the way. Our technology differentiation and the quality of our team's execution are driving growth and enabling us to move upmarket and win larger enterprise networking projects. This quarter, we closed 34 deals over a million dollars, highlighting confidence in our differentiated technology and our ability to win in highly contested head-to-head competitive situations. Our innovation is translating into purpose-built solutions for larger, more demanding enterprise environments. Why are we winning? Competitors can't match the capabilities of our end-to-end campus fabric. which continues to be a major driver of large enterprise wins, differentiated by capabilities like zero-touch provisioning, sub-second convergence, and the creation of hyper-segmented networks that hide IP addresses and thereby limit the blast radius of lateral cyber attacks, a major security benefit. For those of you who recall our investor day, a Fortune 100 customer remarked that what takes Cisco six hours takes Xtreme six minutes. And this is the power of our fabric. Platform one is unique with a true agentic AI core. Our AI agents can autonomously diagnose issues, guide resolution, and provide clear, actionable insights. Our platform is particularly useful in troubleshooting, evidence collecting, and solving complicated network issues, turning days and hours of work into minutes. We're the only vendor that delivers true cloud choice, whether public, private, or hybrid, including sovereign cloud solutions. We meet the data residency, compliance, and security demands of regulated environments, unlike competitive solutions that are locked into public cloud only and expensive purpose-built architectures. And no one delivers complex Wi-Fi solutions better than Xtreme. And this is why we're the preferred Wi-Fi vendor for dense environments like the NFL and Major League Baseball stadiums, as well as large, highly distributed environments like Kroger, FedEx, and other large retailers. Given this ongoing innovation and strong competitive differentiation, we expect to accelerate our leadership position and continue to drive share gains. In the quarter, we had several large wins across verticals and geos, including a multimillion-dollar sale of Platform One to a large retail customer to centrally manage their network across 3,000 stores, Baylor University, Henry Ford Health, University Hospital, Birmingham NHS, and the Pittsburgh Steelers, all leveraging Xtreme's Wi-Fi 7 solutions. TJ Regional Health in Kentucky, and Group Joliment, a large healthcare provider in Belgium, complete modernization of their networks with Xtreme Fabric to deliver reliable, high-quality patient care. One of the largest school districts in the United States selected Xtreme over Juniper after a head-to-head evaluation and a multimillion-dollar full network refresh of wired, wireless SD-WAN, and importantly, our AI platforms. And SK Bioscience, a leading South Korean biotech company deploying platform one to support rapid growth across its expanded offices and new R&D center. We continue to see strong momentum across our commercial models with MSP partners nearly doubling in billings up more than three times year over year. Our consumption-based billing eliminates upfront costs while poolable licensing enables MSPs to easily scale across devices, locations, and customers. In addition to product innovation, we're helping partners make more money with enhanced commercial terms. Last week, we launched Extreme Partner First, our new partner program which simplifies deal registration, delivers transparent pricing and rebates, and embeds AI directly into the partner experience. We help partners access critical sales content in seconds, close deals faster, and scale profitably with role-based dashboards, faster approvals, real-time deal visibility, and accelerated rewards. Partners can make 20% more profit at Xtreme than our competitors. And we've dramatically simplified the way customers are buying from us with a single bundled license that offers AI, fabric, hardware, and security. Platform 1 keeps getting stronger with continuous updates that materially increase customer value. Today, we're attracting highly sought-after talent from across the industry, and our retention remains at all-time highs. Recently, we were able to recruit top-level talent from Juniper who see tremendous opportunity at Xtreme, including two at the SVP level, leadership positions in Global Channel and EMEA Sales. Looking ahead, the strength of our funnel reflects a robust demand environment across all our industry verticals with double-digit pipeline growth in state, local, and education, and continued momentum across manufacturing, healthcare, and general enterprise. On top of these dynamics, a return of government spending in Europe, expansion in APAC, and continued momentum in Americas underpin these trends. A major end-of-life refresh cycle and changes to the partner program at Cisco are creating a significant multi-year growth opportunity for Xtreme worth billions in total addressable market. And the HB Juniper merger is creating share gain tailwinds for us as well. These market trends create openings for Xtreme as new AI requirements, aging hardware and next generation technologies like Wi-Fi 7 are driving customers to reassess their vendor choice. Many are turning to Xtreme to modernize their networks. As it pertains to supply chain, networking is mission critical. It's not a nice to have. Everything our customers run depends on the network, which means demand remains strong even in a higher-cost environment. Net-net, our experience and industry analyst shows low elasticity of demand for networking infrastructure, giving us price flexibility to protect our margins. And this is an industry phenomenon. Given our operational agility, we're confident in our ability to meet customer demand going forward. One of the ways we've solved for component shortages has been a replacement strategy. In the COVID era, for example, our teams replaced over 125 components in a year, 10x the normal rate. And most recently, we identified and swapped out a new source of DDR4 memory chips that Broadcom has already qualified. Our teams are nimble and get us in front of the curve. In the case of component scarcity, our size and scale can be an advantage as we are chasing lower volumes and can be more focused. For the remainder of fiscal 26, we expect to continue to grow profit faster than revenue with expected profitability growth of around 20% on double-digit revenue growth for the year. We're set up with a solid foundation exiting the second quarter with well over $200 million of annualized EBITDA at a healthy net cash position. Now let me turn the call over to Kevin to discuss financial results and guidance.