Financial Analysis

8. Commitments and Contingencies Purchase Commitments The Company currently has arrangements with contract manufacturers and suppliers for the manufacture of its products. Those arrangements allow the contract manufacturers to procure long lead-time component inventory based upon a rolling production forecast provided by the Company. The Company is obligated to purchase long lead-time component inventory that its contract manufacturer procures in accordance with the forecast, unless the Company gives notice of order cancellation outside of applicable component lead-times. As of March 31, 2026, the Company had commitments to purchase $ 101.6 million of inventory. Legal Proceedings The Company may from time to time be party to litigation arising in the course of its business, including, without limitation, allegations relating to commercial transactions, business relationships, or intellectual property rights. Such claims, even if not meritorious, could result in the expenditure of significant financial and managerial resources. Litigation in general, and intellectual property litigation in particular, can be expensive and disruptive to normal business operations. Moreover, the results of legal proceedings are difficult to predict. In accordance with applicable accounting guidance, the Company records accruals for certain of its outstanding legal proceedings, investigations or claims when it is probable that a liability will be incurred, and the amount of loss can be reasonably …

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7. Debt The Companys debt is comprised of the following (in thousands): March 31, 2026 June 30, 2025 Current portion of long-term debt: Term loan $ 18,750 $ 15,000 Revolving facility 30,000 Less: unamortized debt issuance costs ( 679 ) ( 729 ) Current portion of long-term debt $ 48,071 $ 14,271 Long-term debt, less current portion: Term loan $ 150,000 $ 165,000 Less: unamortized debt issuance costs ( 777 ) ( 1,276 ) Total long-term debt, less current portion 149,223 163,724 Total debt $ 197,294 $ 177,995 On June 22, 2023, the Company entered into a Second Amended and Restated Credit Agreement (the 2023 Credit Agreement), by and among the Company, as borrower, BMO Harris Bank, N.A., as an issuing lender and swingline lender, Bank of America, N.A., JPMorgan Chase Bank, N.A., PNC Bank, National Association, and Wells Fargo Bank, National Association, as issuing lenders, the financial institutions or entities party thereto as lenders, and Bank of Montreal, as administrative agent and collateral agent, which amended and restated the Amended and Restated Credit Agreement, dated August 9, 2019, by and among the Company, as borrower, several banks and other financial institutions as Lenders, BMO Harris Bank N.A., as an issuing lender and swingline lender, Silicon Valley Bank, as an Issuing Lender, and Bank of Montreal, as administrative agent and collateral agent for the Lenders. The 2023 Credit Agreement provides for i) a $ 200.0 million first lien term loan facility in an aggregate …

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The following table presents the Companys net revenues disaggregated by geographic region (in thousands): Three Months Ended Nine Months Ended March 31, 2026 March 31, 2025 March 31, 2026 March 31, 2025 Americas: United States $ 128,424 $ 145,426 $ 399,981 $ 418,356 Other 10,589 14,126 36,682 38,018 Total Americas 139,013 159,552 436,663 456,374 EMEA 152,966 107,132 414,601 320,307 APAC 24,895 17,821 93,780 56,383 Total net revenues $ 316,874 $ 284,505 $ 945,044 $ 833,064 …

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10. Employee Benefit Plans Shares Reserved for Issuance The Company had the following reserved shares of common stock for future issuance as of the dates noted (in thousands): March 31, 2026 June 30, 2025 2013 Equity Incentive Plan shares available for grant 13,292 10,935 Employee stock options and awards outstanding 7,872 7,566 2014 Employee Stock Purchase Plan 4,643 5,952 Total shares reserved for issuance 25,807 24,453 Share-based Compensation Expense Share-based compensation expense recognized in the condensed consolidated financial statements by line-item caption is as follows (in thousands): Three Months Ended Nine Months Ended March 31, 2026 March 31, 2025 March 31, 2026 March 31, 2025 Cost of product revenues $ 755 $ 663 $ 2,303 $ 1,961 Cost of subscription and support revenues 723 706 2,209 2,193 Research and development 4,267 4,178 13,353 12,858 Sales and marketing 7,564 6,963 23,086 21,441 General and administrative 8,459 7,844 25,496 23,120 Total share-based compensation expense $ 21,768 $ 20,354 $ 66,447 $ 61,573 Stock Options The following table summarizes stock option activity for the nine months ended March 31, 2026 (in thousands, except per share amount and contractual term): Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value Options outstanding at June 30, 2025 496 $ 6.70 1.16 $ 5,580 Granted Exercised ( 271 ) 6.70 Canceled Options outstanding at March 31, 2026 225 $ 6.70 0 …

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5. Fair Value Measurements A three-tier fair value hierarchy is utilized to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels are defined as follows: Level 1 Inputs - unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 Inputs - quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 Inputs - unobservable inputs reflecting the Companys own assumptions in measuring the asset or liability at fair value. The following table presents the Companys fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis (in thousands): March 31, 2026 Level 1 Level 2 Level 3 Total Assets Certificates of deposit $ $ 10,485 $ $ 10,485 Foreign currency derivatives not designated as hedging instruments 7 7 Total assets measured at fair value $ $ 10,492 $ $ 10,492 Liabilities Foreign currency derivatives not designated as hedging instruments $ $ 326 $ $ 326 Foreign currency derivatives designated as hedging instruments 2,152 2,152 Total liabilities measured at fair value $ $ 2,478 $ $ 2,478 June 30, 2025 Level 1 Level 2 Level 3 Total Assets Certificates of deposi …

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14. Income Taxes For the three months ended March 31, 2026 and 2025, the Company recorded an income tax provision of $ 4.2 million and $ 3.7 million, respectively. For the nine months ended March 31, 2026 and 2025, the Company recorded an income tax provision of $ 9.5 million and $ 7.8 million, respectively. The income tax provisions for the three and nine months ended March 31, 2026 and 2025, consisted of (1) taxes on the income of the Companys foreign subsidiaries, (2) state taxes in jurisdictions where the Company has no remaining state net operating losses (NOLs), (3) foreign withholding taxes, and (4) tax expense associated with the establishment of a U.S. deferred tax liability for amortizable goodwill resulting from the acquisition of Enterasys Networks, Inc., the wireless local area network business from Zebra Technologies Corporation, the Campus Fabric Business from Avaya and the Data Center Business from Brocade. The interim income tax provisions for the three and nine months ended March 31, 2026 and 2025 were calculated using the discrete effective tax rate method as allowed by ASC 740-270-30-18, Income Taxes Interim Reporting . The discrete method is applied when the application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. The discrete method treats the year-to-date period as if it was the annual period and determines the income tax expense or benefit on that basis. The Com …

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Recently Adopted Accounting Pronouncements There were no recently adopted accounting standards which would have a material effect on the Company s condensed consolidated financial statements and accompanying disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU provides clarifications intended to improve the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures. The standard introduces a new disclosure principle for interim reporting to help entities determine whether disclosures not specified in Topic 270 should be provided in interim periods. ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, and interim periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2025-11 on its consolidated financial statements and related disclosures. In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. This ASU amends certain aspects of existing guidance to more closely align hedge accounting with the economics of the Companys risk management activities. ASU 2025-09 is effective for fiscal years beginning after December 15, 2026, and interim periods within …

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13. Restructuring and Related Charges (Benefits) The Company had no significant restructuring activities during the three and nine months ended March 31, 2026. The Company recorded a restructuring benefit of $ 0.4 million during the three months ended March 31, 2025. The Company recorded restructuring charges of $ 0.5 million and $ 1.9 million during the nine months ended March 31, 2026 and 2025, respectively. These charges primarily included severance and benefits costs and professional fees as well as asset disposal costs related to the restructuring plans executed in prior years which are all substantially completed as of March 31, 2026. During the third quarter of fiscal 2024, the Company executed a global reduction-in-force plan targeted towards the reorganization of the Company s research and development and sales and marketing functions to align the Company s workforce with its strategic priorities and to focus on specific geographies and industry segments with higher growth opportunities (the Q3 2024 Plan), which was completed as of December 31, 2025. During the nine months ended March 31, 2026, the Company recorded restructuring charges of $ 0.4 million related to the Q3 2024 Plan, which primarily consisted of severance and benefits expenses, legal and consulting fees. During the three and nine months ended March 31, 2025 , the Company recorded restructuring benefit of $ 0.2 million and restructuring charges of $ 1.3 million, respectively, related to the Q3 2024 Plan …

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3. Revenues The Company accounts for revenues in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers. The Company derives the majority of its revenues from sales of its networking equipment, with the remaining revenues generated from sales of subscription and support, which primarily includes software subscriptions delivered as software as a service (SaaS) and additional revenues from maintenance contracts, professional services and training for its products. The Company sells its products, SaaS and maintenance contracts to customers and partners in two distribution channels, or tiers. The first tier consists of a limited number of independent distributors that stock the Company s products and sell primarily to resellers. The second tier of the distribution channel consists of non-stocking distributors and value-added resellers that sell primarily to end-users. Products and subscription and support may be sold separately or in bundled packages. Revenue Recognition Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. A contracts transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Certain of the Companys contracts have multiple performance obligations, as the promise to transfer individual goods or services is separate …

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11. Information about Segments and Geographic Areas The C ompany operates as a single reportable segment focused on the development, marketing, and sale of network infrastructure equipment and related software. The Company conducts business glo bally. Measure of segment profit or loss: The Companys chief operating decision maker (CODM), who is its Chief Executive Officer , reviews financial information presented on a consolidated basis and uses consolidated net income (loss), as reflected in the consolidated statements of operations, to assess performance and decide how to allocate resources within the business. Consolidated net income (loss) is also used in the Companys annual budgeting and forecasting processes to establish goals and compare actual results against both budgeted targets and historical performance. Significant segment expenses that are regularly provided to and reviewed by the CODM are those presented in the consolidated statements of operations: costs of revenue, research and development, sales and marketing, and general and administrative. Other segment items included in consolidated net income are restructuring and related charges, amortization of intangible assets, interest income, interest expense, other expense, net, and the provision for income taxes, which are also presented in the consolidated statements of operations. Measure of segment assets: The measure of segment assets that is reviewed by the CODM is reported within the condensed consolidated b …

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2. Summary of Significant Accounting Policies For a description of significant accounting policies, see Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Companys Annual Report on Form 10-K for the fiscal year ended June 30, 2025. There have been no material changes to the Companys significant accounting policies since the filing of the Annual Report on Form 10-K. Recently Adopted Accounting Pronouncements There were no recently adopted accounting standards which would have a material effect on the Company s condensed consolidated financial statements and accompanying disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU provides clarifications intended to improve the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures. The standard introduces a new disclosure principle for interim reporting to help entities determine whether disclosures not specified in Topic 270 should be provided in interim periods. ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, and interim periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2025-11 on its consol …

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9. Stockholders Equity Equity Incentive Plan The Compensation Committee of the Board unanimously approved an amendment to the Extreme Networks, Inc. Amended and Restated 2013 Equity Incentive Plan (the 2013 Plan) on September 14, 2025 to increase the maximum number of available shares by 6.8 million shares, which was approved by the stockholders of the Company at the annual meeting of stockholders held on November 12, 2025. Common Stock Repurchases On February 18, 2025, the Company announced that the Board had authorized management to repurchase up to $ 200.0 million of shares of the Company s common stock over a three-year period, commencing July 1, 2025 (the 2025 Repurchase Program). Purchases may be made from time to time in the open market or pursuant to a 10b5-1 plan. On January 30, 2026, the Company entered into an accelerated share repurchase agreement (the 2026 ASR) to repurchase shares of the Companys common stock as part of the 2025 Repurchase Program. Pursuant to the 2026 ASR and during the three months ended March 31, 2026, the Company paid $ 50.0 million for an initial delivery of 2,957,550 shares valued at $ 43.1 million with an average price of $ 14.58 per share. The remaining balance of $ 6.9 million was recorded in Additional paid-in capital as a forward contract in the Companys common stock. The forward contract was settled on April 24, 2026 and the Company received an additio nal 342,257 shares of it s common stock. During the nine months ended March 31, 20 …

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