Calix, Inc

Greetings, everyone, and welcome to the Calix second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. The question and answer session will follow the brief prepared remarks. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Nancy Fazioli, Vice President, Investor Relations. Nancy, please go ahead.

Thank you Daryl and good morning everyone. Thank you for joining our second quarter 2026 earnings call. Today on the call we have President and CEO Michael Weening and Chief Financial Officer Corey Sindelar. As a reminder, today after the market closed, Calix issued a news release which was furnished on a form aka along with our stockholder letter and was also posted in the investor relations section of the Calix website. Today's conference call will be available for webcast replay in the investor relations section of our website. Before I turn the call over to Michael for his opening remarks, I want to remind everyone that on this call we will refer to forward-looking statements, including all statements the company will make about its future financial and operating performance growth strategy and market outlook, and that actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause actual results and trends to differ materially are set forth in the second quarter 2026 letter to stockholders and in the annual and quarterly reports filed with the SEC. Council assumes no obligation to update any forward-looking statements which speak only as to their respective dates. Also in this conference call, we will discuss both GAAP and non-GAAP financial measures, a reconciliation of GAAP to non-GAAP measures included in the second quarter 2026 letter to stockholders that was posted yesterday. Unless otherwise stated, all financial information referenced in this call that will be non-GAAP. With that, Michael, please go ahead.

Thank you, Nancy. Much like the dot-com revolution before, the AI revolution is changing how society functions and will transform business models in every industry. The key difference between the dot-com era and the AI era is the rate of change. The AI rate of change is unprecedented, and those who move fast will lead the industries they serve. The second quarter was the beginning of Calix, the AI leader, as we began realizing the value of our 15-year investment through the first full quarter of our AI-native CalixOne platform being live. CalixOne has access to data, insights, and the ability to autonomously or through team member augmentation, improve operations, marketing, support, and subscriber experiences for our service provider customers regardless of size. These expanding CalixOne capabilities enable our customers to address the threat of broadband commoditization through differentiated experiences resulting in winning new subscribers, growing revenue, higher retention across consumer, business, MDU, and the municipal segments they serve, while improving operating costs with a predictable implementation of AI capabilities. Customer interest in CalixOne exploded in Q2, driving record RPOs, record software and services revenue, while the strength of the platform was evidenced by the significant jump in software and service margin as we had all customers live. We also tripled the number of customers that signed up for Agent Workforce Cloud. More important is the makeup of those customers. They were not only the innovators who partner with Calix early in the product lifecycle and are committed to the value that can be realized in their business model by being first to market, the customers who signed up in Q2 span the entire adoption lifecycle. From early adopter, which is expected, to late majority, which signals a significant agent workforce cloud enabled shift across our base. The shift is that every business leader knows they must have an AI strategy or they will be at risk. The late majority adoption proves that CalixOne is a secure, trusted, and predictable approach for every customer to adopt AI. It is secure and trusted as we have invested 15 years into the platform and domain knowledge to meet our customers' needs. Since November 2023, we have evolved the platform to be AI-native while ensuring that our processes, culture, security, and governance expanded to meet the needs of the AI era for our customers. It is predictable as our AI-native platform architecture allows us to use any AI model, and it is our belief that hardened, open-source models meet our workflow, use case, and industry needs. That means CalF has solved for the largest issue that is raging across all industries. How to use AI predictably as one cannot calculate an ROI on a cost that can quickly run out of control. In our architecture, we have eschewed tokens through hardened open source AI models and the acquisition of pure compute. Calix One customers are adopting a platform that delivers AI capabilities that can be trusted, are secure, and are offered at a predictable cost, which will yield an ROI that will grow every month with their subscription as they acquire new subscribers, grow revenue, reduce churn, and lower operating costs through the power of Calix Agent Workforce Cloud. And yesterday I shared a slide that showed our rate of innovation. On the first generation of our platform, our annual feature rate peaked at 181 in 2018. Our second generation platform featured, sorry, our second generation platform feature rate peaked at 918 in 2024. With the third generation of our platform launched, our customers can expect that our past innovation velocity will be quickly surpassed with agent workforce clout. Which brings me to the Calix team. This team continues to win awards as one of the best cultures in any industry. Having outlined a subset of awards in the investor letter, including fortune recognizing Calix and the 100 best companies to work for list, the strength of this kind of culture has never been more important. While AI is a powerful technology, it requires teams to get the most of it. Our customer success organization will help our customers leverage agent workforce cloud to transform an inside Calix. Our leaders are taking a human-centric approach to AI to ensure that Calix transforms internally by understanding how we work so that we can agendify those portions of our business that will benefit from it. We are using AI to gain operating leverage across Calix. In summary, we are committed to transforming our customers and ourselves through the power of AI. With that, I'll turn it to Corey to cover the details of an amazing quarter. Corey?