Exhibit 99.2
January 28, 2026
Fellow Calix stockholders:
During the fourth quarter of 2025, the Calix team delivered record revenue of $272 million, our sixth quarter of consecutive revenue growth, a sequential growth rate of 3%, year-over-year growth of 32% while guiding to continued sequential growth in first quarter of 2026, underscoring the robust demand for our unique platform model by our Broadband Experience Provider (BXP) customers. A fitting close to 2025 as our customers’ success with our platform model drove annual revenue of $1 billion, representing 20% year-over-year growth. We also set another non-GAAP gross margin record of 58%, marking the eighth consecutive quarter of margin improvement.
We added 25 new platform customers who began their journey to transform their business by leveraging our appliance-based platform, cloud and managed services to win new subscribers, reduce churn and expand revenue per subscriber while differentiating their brand in the communities they serve. As a result of our BXP customers’ ongoing growth and success, remaining performance obligations (RPOs) grew 18% year-over-year and 9% quarter-over-quarter, reaching $385 million.
Our strong financial performance and balance sheet continued to distinguish our team’s rigorous focus on operational excellence. Days sales outstanding (DSO) remained low at 35 days; inventory turns were 3.0 reflecting increased investments to address a robust demand environment; and we generated a record $40 million of free cash flow, the eleventh consecutive quarter of eight-figure free cash flow, ending the year with record cash and investments of $388 million.
Entering a Sustained Growth Phase with Agent Workforce Cloud and SmartLife
The clarity of our vision and strategy, commitment to long term customer transformation and financial strength enable our team to maximize opportunities for our BXP customers to take advantage of the ongoing commoditization of broadband by differentiating across the four segments that make up a community – residential, business, multi-dwelling units (MDU) and municipal (e.g., education, first responders, event and common spaces) – at a pace that cannot be met by their competitors.
In December 2025, we began moving customers to our third-generation platform with a goal of converting most of our customers in the first quarter of 2026. Going live in December marked the start of Calix’s next stage of growth as it enabled our teams to expand into new geographies with local datacenters and with large customers via private clouds in partnership with Google Cloud.
Calix BXP customers on our third-generation platform will see an unprecedented expansion of their capacity and capability via Agent Workforce Cloud, while expanding their market offerings to all segments of a community with SmartLife. The market disruption is now past the early adopter phase as our BXP customers are winning versus commodity speed-and-price providers regardless of type or size.
This third phase of Calix’s journey, helping broadband providers evolve from commodity to community serving experience providers, is now in a sustained growth phase which we believe will last for many years to come. Our demand visibility is at an all-time high, which affirms our alignment into sustained growth mode. To that end we have:
•Aligned our leadership team for market expansion
•Globalized our platform to enable deployment by any customer anywhere in the world
•Continued our focus on operational excellence through the rapid deployment of AI tools for internal use
•Aligned our publicly disclosed metrics around the growth and value of our model
We will discuss these in more detail at our Investor Day at the New York Stock Exchange on February 24, 2026. Please register as we look forward to hosting you there!
The Calix Difference – Strategically Aligned Culture that Delivers Value for Investors, Customers, and Team Members
While delivering record results and launching our third-generation platform, the Calix team concluded an incredible 2025 with 44 awards for culture and 20 awards for innovation, adding 16 awards in the fourth quarter of 2025 including:
•Resilinc named Calix Supply Chain “Top 15 Most Resilient High-Tech Suppliers”
•Comparably recognized Calix in the large company categories for “Best Company Culture,” “Best Compensation,” and “Top 10 CEOs.”
•Newsweek named Calix as one of “America’s Greatest Workplaces for Culture, Belonging, and Community”
•Fierce Network Innovation Awards recognized Success Education’s Broadband Transformation for “Broadband Workforce Development”
•Builder Innovator recognized Calix SmartMDU for best “Property Management Software”
Our team has launched the year aggressively, holding our 2026 Field Kick-Off and Leadership Kick-Off in early January to ensure team members are aligned to our strategy and investments that support our BXP customers’ success as they transform to dominate the markets they serve, which fuels our long-term financial performance across four measurable objectives:
•Deliberate revenue growth
•Gross margin expansion
•Disciplined operating expense investment
•Ongoing predictability
The disruption and commoditization of the broadband industry continue in 2026. With the launch of Calix Agent Workforce and expansion of SmartLife to encompass all facets of a community, we are uniquely positioned to accelerate adoption of our platform, cloud and managed services to support our BXP customers winning new subscribers, reducing churn and growing revenue per subscriber. In 2026, we will continue to support our customers’ success while maintaining our own strong operating discipline, allowing us to expand our unique differentiating business model into the new markets of MDUs, new sovereign geographies and new private platform customers for years to come.
Fourth Quarter 2025 Financial Results
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| GAAP | Non-GAAP | Guidance Non-GAAP 1 |
| Revenue | $272.4m | $272.4m | $267.0m – $273.0m |
| Gross margin | 57.7% | 58.0%2 | 56.75% – 58.75% |
| Operating expenses | $148.0m | $126.8m2 | $122.0m – $124.0m |
| Net income per diluted common share | $0.10 | $0.392 | $0.35 – $0.41 |
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1 | Non-GAAP guidance provided on October 29, 2025. | | |
2 | Non-GAAP excludes stock-based compensation, net of the effect for income taxes. See GAAP to non-GAAP reconciliations beginning on page 15. | | |
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For the fourth quarter of 2025, revenue was $272.4 million, representing an increase of 3% from the prior quarter and an increase of 32% compared with the same quarter a year ago. We saw robust and broad-based demand from our BXP customers amplified as we continued to take footprint from legacy box vendors. We did, however, see a return to a more disciplined approach to deployments as the immediate need from ex-DZS customers has normalized.
U.S. revenue was 94% of revenue for the fourth quarter of 2025, same as the third quarter of 2025 and up from 90% for the year ago quarter. U.S. revenue increased 2% sequentially and increased 38% compared with the year ago quarter. International revenue was 6% of revenue in the fourth quarter of 2025, up 5% sequentially and down 20% compared with the year ago period. The sequential increase in international revenue was primarily due to continued shipments to a European customer.
GAAP gross margin for the fourth quarter of 2025 was a record 57.7%, an increase of 40 basis points sequentially and 270 basis points year-over-year. U.S. tariff and tariff-related costs and elevated memory costs were not material in the fourth quarter of 2025. Excluding stock-based compensation, our total non-GAAP gross margin for the fourth quarter of 2025 was a record 58.0%, representing an increase of 30 basis points sequentially and 250 basis points from the year ago period. The sequential and year-over-year increases relate primarily to continued adoption of our platform by new broadband service providers and our BXP customers winning new subscribers. Gross margin may vary from quarter to quarter depending on customer and product mix as well as heightened memory costs due to AI demand.
Software and services revenue include platform licenses, which are recognized upon invoice, and our SaaS offerings of Calix Cloud (Engagement Cloud, Operations Cloud and Service Cloud) and managed services, which are recognized ratably over the service period. Services include customer success, support, warranty and professional services. Our software enables our BXPs to benefit from the power of
data-driven insights and improve their average revenue per user at higher margins with the greatest levels of subscriber satisfaction to drive best-in-class Net Promoter Scores℠. Our SmartLife™ managed services include: SmartHome™ (which includes Wi-FiIQ, CommandIQ®, ProtectIQ® and ExperienceIQ®), Arlo Secure, Bark, SmartBiz™, SmartMDU™ and SmartTown®.
During the fourth quarter of 2025, software and service revenue was $46.6 million, up 7% sequentially primarily due to increased Calix Cloud and managed services revenue and up 17% compared with the year ago quarter related to strong demand for platform licenses, Calix Cloud and managed services and to a lesser extent services.
Software and services GAAP gross margin in the fourth quarter was 60.2%, representing a decrease of 310 basis points sequentially and a decrease of 170 basis points from the year ago period. Excluding stock-based compensation, software and services non-GAAP gross margin for the fourth quarter of 2025 was 61.3%, representing a decrease of 390 basis points sequentially and a decrease of 240 basis points from the year ago period. The sequential and year-over-year decreases related primarily to the transition from our second-generation platform to our third-generation platform. During this transition period, we are operating in a dual cloud environment and therefore incurring dual costs. We expect to complete this transition in the first half of 2026.
RPOs result from long-term commitments made by our customers and consist mainly of Calix Cloud, managed services, extended warranties and support/maintenance agreements and exclude platform licenses, month-to-month usage-based models and true-ups to actual usage from minimum commitments. These minimum commitments generally have a three-year term at signing.
At the end of the fourth quarter of 2025, our RPOs were a record $385.0 million, which is an increase of $30.4 million, or 9%, from the prior quarter and an increase of $59.2 million, or 18%, from the same quarter a year ago. Our current RPOs were a record $151.5 million, up $10.7 million, or 8% from the prior quarter and up $30.8 million, or 26%, from the year-ago quarter. The increases reflected continued strength as our BXP customers adopted our platform, cloud and managed services, added incremental cloud and managed service offerings and won new subscribers. We are also seeing an accelerating interest in Agent Workforce Cloud, which reinforces our expectation that RPOs will continue to grow each quarter.
During the fourth quarter of 2025, appliance revenue, which includes our Access Edge and Experience Edge appliances and related optics, was $225.8 million and increased by 2% sequentially and 36% compared with the year ago quarter on continued adoption of our platform. Our customers that adopt our appliance-based platform can quickly enable subscriber expansion into managed services, thereby enabling them to improve their average revenue per user at higher margins with the greatest levels of subscriber satisfaction.
Appliance GAAP gross margin in the fourth quarter of 2025 was 57.2%, representing an increase of 110 basis points sequentially and an increase of 380 basis points from the year ago period. Excluding stock-based compensation, appliance non-GAAP gross margin in the fourth quarter of 2025 was 57.4%, representing an increase of 120 basis points sequentially and an increase of 380 basis points from the year ago period. The sequential and year-over-year increases relate primarily to the adoption of our platform and growing market for network and on-premises appliances that are the foundation for the adoption of our software and services.
Our GAAP and non-GAAP operating expenses for the fourth quarter of 2025 were $148.0 million and $126.8 million, representing 54% and 47% of revenue, respectively. Sequentially, GAAP operating expenses increased by $13.4 million due to increases in stock-based compensation of $1.4 million and non-GAAP operating expenses of $12.0 million. The sequential increase in non-GAAP operating expenses was due to investments in our annual ConneXions conference, our agentic platform and our team. Compared with the year ago quarter, both GAAP and non-GAAP operating expenses increased by $15.9 million primarily related to increased investments in sales headcount, incentive compensation and platform innovation. Non-GAAP sales and marketing investments were 22% of revenue, which was above our Target Financial Model range of 18% to 20%. Non-GAAP research and development investments were 30% of gross profit, which is above our Target Financial Model of 29%. Non-GAAP general and administrative investments were 7% of revenue, which is in line with our Target Financial Model of 7%.
Our GAAP net income was $7.4 million for the fourth quarter of 2025, down $8.3 million sequentially and an improvement of $25.3 million from the year ago period. The sequential decline in the fourth quarter of 2025 was the result of increased operating expense investments partially offset by an increase in gross profit due to record revenue and record gross margin. GAAP net income for the fourth quarter of 2025 included stock-based compensation of $22.1 million. Excluding stock-based compensation, our non-GAAP net income was $27.3 million, a decrease of $3.3 million compared with the prior quarter due to increased operating expense investments. Non-GAAP net income increased $22.0 million, when compared with net income of $5.2 million in the year ago quarter as revenue increased 32% and gross margin expanded by 250 basis points, allowing us to make additional operating expense investments of $15.9 million.
Balance Sheet and Cash Flow
Our balance sheet remained strong. Our DSO at the end of 2025 was an industry-best 35 days, up 5 days from the prior quarter and down 1 day from the year ago period, reflecting continued strong shipment linearity. Our Target Financial Model for DSO remains between 35 and 45 days. Inventory turns were 3.0, down from 3.8 in the prior quarter and in-line with 3.1 a year ago. The decrease in inventory turns represents investments in inventory to address the robust demand environment, including our expectations for BEAD. Inventory turns for each quarter of 2025 were within our Target Financial Model of 3 to 4 turns. Days payable outstanding (DPO) at the end of the fourth quarter was 26 days, up 8 days from the prior quarter and up 5 days from the year ago quarter. Our Target Financial Model for DPO is between 25 and 35 days. Our cash conversion cycle was 131 days compared with 108 days in the prior quarter and 133 days in the same quarter last year. Our Target Financial Model for our cash conversion cycle remains between 100 and 130 days.
We ended the fourth quarter of 2025 with record cash and investments of $388.1 million, which represented a record sequential quarterly increase of $48.5 million. The increase was primarily due to record quarterly operating cash flow of $46.0 million and proceeds from equity-based employee benefit plans of $24.4 million partially offset by capital expenditures of $5.8 million and common stock repurchases of $16.6 million. Compared with the year ago period, our cash and investments increased by
$91.0 million. The increase was primarily due to the generation of operating cash flow of $135.0 million in 2025 and proceeds from equity-based employee benefit plans of $65.2 million partially offset by common stock repurchases of $84.0 million and capital expenditures of $93.6 million. We continue to expect both GAAP operating and non-GAAP free cash flow to remain strong due to continued non-GAAP profitability and a robust cash conversion cycle.
The remaining amount of the common stock repurchase authorization at the end of the fourth quarter of 2025, excluding the new authorization of $125 million, was $109.3 million.
First Quarter 2026 Guidance
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| Guidance Non-GAAP | Guidance Reconciled to GAAP |
| Revenue | $275m – $281m | $275m – $281m |
| Gross margin | 56.25% – 58.25%1 | 55.95% – 57.95% |
| Operating expenses | $127.0m – $129.0m1 | $147.0m – $149.0m |
Net income per diluted common share2 | $0.34 – $0.401 | $0.08 – $0.14 |
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1 | Non-GAAP excludes stock-based compensation as well as the income tax impact of these items. See GAAP to non-GAAP reconciliation on page 17. | | |
2 | Based on 69.6 million weighted-average diluted common shares outstanding. | | |
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Our guidance for the first quarter of 2026, ending March 28, 2026, reflects our expectations as of the date of this letter.
Our revenue guidance for the first quarter of 2026 is for revenue to be between $275 million and $281 million, up 2% (at the midpoint) from the prior quarter taking into consideration the robust demand and visibility that we are experiencing across our customer base.
Our non-GAAP gross margin guidance for the first quarter of 2026 of 57.25% (at the midpoint) is down 75 basis points from the previous quarter reflecting overlapping cloud costs as we migrate customers to our third-generation platform and customer mix. We anticipate our non-GAAP gross margin expansion will be at the low end of our Target Financial Model of 100 to 200 basis points for the year.
Our non-GAAP operating expense guidance for the first quarter of 2026 of $128.0 million (at the midpoint) represents a sequential increase primarily related to accelerating the development of AI functionality and capabilities of our platform, cloud and managed services into the first half of 2026 partially offset by a reduction in sales and marketing expense related to ConneXions, our annual customer success and innovation conference, which occurred during the fourth quarter of 2025. We expect to return to our Target Financial Model for operating expenses by the fourth quarter of 2026.
We expect our non-GAAP effective tax rate for 2026 will be in a range of 23% to 25%.
Summary
The Calix team is excited to enter this next phase of growth as our customers turn to our platform as a proven path to quickly becoming a BXP to deal with the broadly accepted threat of market commoditization. We are further excited as we are now live with our third-generation platform, which includes Agent Workforce Cloud, SmartMDU and our third-generation mobile app, representing the culmination of 15 years of investment and learning in partnership with our customers. We expect the coming years will see an acceleration of the broadband industry transforming into BXPs that will simplify operations and go to market, innovate experiences across consumer, small business, municipality and MDU, and grow for their members, investors and the communities they serve.
Our demand visibility is at an all-time high, and we will combine this with our internal transformation enabled through AI to evolve the way that we work to serve our customers while embracing new markets such as MDU, new sovereign geographies and new private platform customers for years to come.
The foundation for our growth continues to be based on three consistent vectors:
•Winning new subscribers: BXP customers leverage our platform, cloud and managed services to differentiate themselves in their markets thereby adding subscribers.
•Growing existing subscriber revenue while reducing churn: BXP customers adopt additional platform extensions, cloud and managed services, enabling them to reduce their operational costs, reduce churn and grow revenue per subscriber.
•Adding new BXPs: We continue to help legacy operators and operators in new customer segments and geographies become strategically aligned experience providers who recognize that our unique platform, cloud and managed services model enables their teams to transform their business as they simplify their operations, subscriber engagement and services, innovate for their consumer, business and municipal subscribers and grow their value for members, investors and the communities they serve.
With strong demand for our appliances, platform, cloud and managed services, we are confident in our sequential revenue growth, and we are excited by the multi-year outlook for our business. We remain focused on growing our footprint by adding to our BXP customer base and expanding the reach of our platform, cloud and managed services across their subscribers in the geographies they serve.
We thank our customers, employees, partners, vendors and stockholders for their continued support.
Sincerely,
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Michael Weening President and CEO | | Cory Sindelar CFO |
Conference Call
In conjunction with this announcement, Calix will host a conference call tomorrow, January 29, 2026 at 5:30 a.m. Pacific Time / 8:30 a.m. Eastern Time to answer questions regarding our fourth quarter 2025 financial results. A live audio webcast and replay of the call will be available in the Investor Relations section of the Calix website at http://investor-relations.calix.com.
Live call access information: Dial-in number: (877) 407-4019 (U.S.) or (201) 689-8337 (outside the U.S.) ID# 13757677.
The conference call and webcast will include forward-looking information.
Investor Inquiries
Nancy Fazioli
VP, Investor Relations
InvestorRelations@calix.com
(669) 308-3901
About Calix
Calix, Inc. (NYSE: CALX) — Calix delivers the industry’s leading agentic AI cloud and appliance-based platform, purpose-built over two decades with open standards and advanced security so service providers of all types and sizes can transform into experience providers. The platform combines agentic AI, intelligent appliances, and fully integrated managed services with Calix Success and a partner community to simplify operations, engagement, and service, innovate for their consumer, business, and municipal subscribers, and grow their value for members, investors and the communities they serve.
Forward-Looking Statements
Statements made in this stockholder letter and the earnings call referencing the stockholder letter that are not statements of historical fact are forward-looking statements. Forward-looking statements are subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to, but are not limited to, impact from U.S. tariffs and trade policies, potential customer or market opportunities, growth and future opportunities, customer demand or the sustainability of continued demand, anticipated customer purchase trends, anticipated government funding, programs and proposals, expected customer and product mix or anticipated adoption or deployment of our appliances, platform, cloud or managed services, implementation of agentic AI, industry, market and customer trends, opportunities with existing and prospective customers, the timing of BEAD shipments, free cash flow and liquidity, continuation of our stock repurchase program and future financial performance (including the outlook for the first quarter of 2026, full year and future periods and performance against our Target Financial Model). Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations, including but not limited to fluctuations in our financial and operating results, the capital spending decisions of our customers, U.S. tariffs, changes and disruptions in the market and industry, availability of capital in the market, potential for growth in our business driven by government funds, changes in and impacts of regulations and/or government sponsored programs, competition, our ability to achieve market acceptance of our appliances, platform, cloud or managed services, our ability to grow our customer base, our ability to implement agentic AI across our platform to scale our customer success team and our BXP customers’ success, fluctuations in costs associated with our appliances and services including higher costs, dependence on third-parties for production and resource management associated with our global supply chain that may cause delays in production, inventory write-offs or component liabilities, cost overruns, disruptions in global trade and relations, social unrest and political uncertainties and other unanticipated factors, as well as the risks and uncertainties described in our annual report on Form 10-K and our quarterly reports on Form 10-Q, each as filed with the SEC and available at www.sec.gov, particularly in the sections titled “Risk Factors.” Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Calix assumes no obligation to update forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. Accordingly, investors should not place undue reliance on any forward-looking statements.
Use of Non-GAAP Financial Information
The Company uses certain non-GAAP financial measures in this stockholder letter to supplement its consolidated financial statements, which are presented in accordance with U.S. GAAP. These non-GAAP measures include non-GAAP gross margin, non-GAAP operating expenses, non-GAAP sales and marketing investments, non-GAAP research and development investments, non-GAAP general and administrative investments, non-GAAP effective income tax rate, non-GAAP net income or profitability, non-GAAP net income per diluted common share and non-GAAP free cash flow. These non-GAAP
measures are provided to enhance the reader’s understanding of the Company’s operating performance as they exclude non-cash stock-based compensation and intangible asset amortization and the impact from changes in income taxes, which the Company believes are not indicative of its core operating results. Management believes that the non-GAAP measures used in this stockholder letter provide investors with important perspectives into the Company’s ongoing business performance and management uses these non-GAAP measures to evaluate financial results and to establish operational goals. The presentation of these non-GAAP measures is not meant to be a substitute for results presented in accordance with GAAP but rather should be evaluated in conjunction with those GAAP results. A reconciliation of the non-GAAP results to the most directly comparable GAAP results is provided in this stockholder letter. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
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| Calix, Inc. |
| Condensed Consolidated Statements of Operations |
| (Unaudited, in thousands, except per share data) |
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| | | | Three Months Ended December 31, | | Year Ended December 31, |
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| | | | 2025 | | 2024 | | 2025 | | 2024 |
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| Revenue: | | | | | | | | |
| Appliance | | $ | 225,812 | | | $ | 166,327 | | | $ | 825,649 | | | $ | 694,147 | |
| Software and service | | 46,637 | | | 39,797 | | | 174,361 | | | 137,371 | |
| | Total revenue | | 272,449 | | | 206,124 | | | 1,000,010 | | | 831,518 | |
| Cost of revenue: | | | | | | | | |
| Appliance | | 96,595 | | | 77,584 | | | 367,088 | | | 317,842 | |
| Software and service | | 18,551 | | | 15,173 | | | 64,606 | | | 60,082 | |
| | Total cost of revenue | | 115,146 | | | 92,757 | | | 431,694 | | | 377,924 | |
| Gross profit | | 157,303 | | | 113,367 | | | 568,316 | | | 453,594 | |
| Operating expenses: | | | | | | | | |
| Sales and marketing | | 66,667 | | | 59,443 | | | 248,636 | | | 217,879 | |
| Research and development | | 53,534 | | | 45,858 | | | 190,356 | | | 179,870 | |
| General and administrative | | 27,827 | | | 26,816 | | | 108,334 | | | 98,879 | |
| | Total operating expenses | | 148,028 | | | 132,117 | | | 547,326 | | | 496,628 | |
| Operating income (loss) | | 9,275 | | | (18,750) | | | 20,990 | | | (43,034) | |
| Interest income and other income (expense), net: | | | | | | | | |
| Interest income, net | | 3,924 | | | 3,466 | | | 13,434 | | | 12,343 | |
| Other income (expense), net | | 198 | | | (356) | | | (256) | | | (955) | |
| | Total interest income and other income (expense), net | | 4,122 | | | 3,110 | | | 13,178 | | | 11,388 | |
| Income (loss) before income taxes | | 13,397 | | | (15,640) | | | 34,168 | | | (31,646) | |
| Income tax expense (benefit) | | 6,185 | | | 2,284 | | | 16,284 | | | (1,899) | |
| Net income (loss) | | $ | 7,212 | | | $ | (17,924) | | | $ | 17,884 | | | $ | (29,747) | |
| Net income (loss) per common share: | | | | | | | | |
| | Basic | | $ | 0.11 | | | $ | (0.27) | | | $ | 0.27 | | | $ | (0.45) | |
| | Diluted | | $ | 0.10 | | | $ | (0.27) | | | $ | 0.26 | | | $ | (0.45) | |
| Weighted average number of shares used to compute net income (loss) per common share: | | | | | | | |
| | Basic | | 66,808 | | | 66,399 | | | 66,041 | | | 65,879 | |
| | Diluted | | 70,427 | | | 66,399 | | | 69,305 | | | 65,879 | |
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| Calix, Inc. |
| Condensed Consolidated Balance Sheets |
| (Unaudited, in thousands) |
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| | December 31, |
| | 2025 | | 2024 |
| ASSETS |
| Current assets: | | | | |
| Cash and cash equivalents | | $ | 143,086 | | | $ | 43,162 | |
| Marketable securities | | 245,018 | | | 253,929 | |
| Accounts receivable, net | | 99,367 | | | 79,321 | |
| Inventory | | 133,737 | | | 102,727 | |
| Prepaid expenses and other current assets | | 70,345 | | | 105,596 | |
| Total current assets | | 691,553 | | | 584,735 | |
| Property and equipment, net | | 37,812 | | | 31,153 | |
| Right-of-use operating leases | | 14,665 | | | 6,216 | |
| Deferred tax assets | | 165,636 | | | 177,601 | |
| Goodwill | | 116,175 | | | 116,175 | |
| Other assets | | 32,681 | | | 23,387 | |
| | $ | 1,058,522 | | | $ | 939,267 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
| Current liabilities: | | | | |
| Accounts payable | | $ | 41,523 | | | $ | 20,226 | |
| Accrued liabilities | | 91,339 | | | 84,167 | |
| Deferred revenue | | 30,386 | | | 26,750 | |
| Total current liabilities | | 163,248 | | | 131,143 | |
| Long-term portion of deferred revenue | | 19,890 | | | 20,883 | |
| Operating leases | | 12,756 | | | 3,720 | |
| Other long-term liabilities | | 3,409 | | | 2,581 | |
| Total liabilities | | 199,303 | | | 158,327 | |
| Stockholders’ equity: | | | | |
| Common stock | | 1,678 | | | 1,661 | |
| Additional paid-in capital | | 1,230,191 | | | 1,170,017 | |
| Accumulated other comprehensive loss | | (408) | | | (612) | |
| Accumulated deficit | | (372,242) | | | (390,126) | |
| Total stockholders’ equity | | 859,219 | | | 780,940 | |
| | $ | 1,058,522 | | | $ | 939,267 | |
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| Calix, Inc. |
| Condensed Consolidated Statements of Cash Flows |
| (Unaudited, in thousands) |
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| | Year Ended December 31, |
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| | 2025 | | 2024 |
| Operating activities: | | | | |
| Net income (loss) | | $ | 17,884 | | | $ | (29,747) | |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | |
| Stock-based compensation | | 87,929 | | | 70,761 | |
| Depreciation and amortization | | 17,710 | | | 19,550 | |
| Deferred income taxes | | 11,854 | | | (9,969) | |
| Net accretion of available-for-sale securities | | (3,697) | | | (5,286) | |
| Changes in operating assets and liabilities: | | | | |
| Accounts receivable, net | | (20,046) | | | 46,706 | |
| Inventory | | (31,010) | | | 30,258 | |
| Prepaid expenses and other assets | | 17,297 | | | 11,167 | |
| Accounts payable | | 21,509 | | | (15,138) | |
| Accrued liabilities | | 3,017 | | | (31,926) | |
| Deferred revenue | | 2,643 | | | (13,900) | |
| Other long-term liabilities | | 9,863 | | | (4,076) | |
| Net cash provided by operating activities | | 134,953 | | | 68,400 | |
Investing activities: | | | | |
| Purchases of property and equipment | | (19,435) | | | (18,054) | |
| Purchases of marketable securities | | (220,839) | | | (301,677) | |
| Sales of marketable securities | | 28,142 | | | 49,902 | |
| Maturities of marketable securities | | 205,759 | | | 160,299 | |
| Net cash used in investing activities | | (6,373) | | | (109,530) | |
| Financing activities: | | | | |
| Proceeds from common stock issuances related to employee benefit plans | | 65,196 | | | 31,592 | |
| Repurchases of common stock | | (93,630) | | | (10,695) | |
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| Net cash provided by (used in) financing activities | | (28,434) | | | 20,897 | |
| Effect of exchange rate changes on cash and cash equivalents | | (222) | | | (14) | |
| Net increase (decrease) in cash and cash equivalents | | 99,924 | | | (20,247) | |
| Cash and cash equivalents at beginning of year | | 43,162 | | | 63,409 | |
| Cash and cash equivalents at end of year | | $ | 143,086 | | | $ | 43,162 | |
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| Calix, Inc. | | | | |
| Reconciliation of GAAP to Non-GAAP Gross Margin | | | | |
| (Unaudited) | | | | |
| Three Months Ended | | | | |
| December 31,
2025 | | September 27,
2025 | | June 28,
2025 | | March 29,
2025 | | December 31,
2024 |
| Appliance | | Software and service | | Total | | Appliance | | Software and service | | Total | | Appliance | | Software and service | | Total | | Appliance | | Software and service | | Total | | Appliance | | Software and service | | Total |
| GAAP gross margin | 57.2 | % | | 60.2 | % | | 57.7 | % | | 56.1 | % | | 63.3 | % | | 57.3 | % | | 54.4 | % | | 65.0 | % | | 56.3 | % | | 54.0 | % | | 63.5 | % | | 55.7 | % | | 53.4 | % | | 61.9 | % | | 55.0 | % |
| Adjustments to GAAP amount: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Stock-based compensation | 0.2 | | | 1.1 | | | 0.3 | | | 0.1 | | | 1.0 | | | 0.3 | | | 0.2 | | | 1.0 | | | 0.4 | | | 0.2 | | | 1.0 | | | 0.4 | | | 0.2 | | | 1.0 | | | 0.4 | |
| Intangible asset amortization | — | | | — | | | — | | | — | | | 0.9 | | | 0.1 | | | — | | | 0.5 | | | 0.1 | | | — | | | 0.8 | | | 0.1 | | | — | | | 0.8 | | | 0.1 | |
| Non-GAAP gross margin | 57.4 | % | | 61.3 | % | | 58.0 | % | | 56.2 | % | | 65.2 | % | | 57.7 | % | | 54.6 | % | | 66.5 | % | | 56.8 | % | | 54.2 | % | | 65.3 | % | | 56.2 | % | | 53.6 | % | | 63.7 | % | | 55.5 | % |
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| Calix, Inc. |
| Reconciliation of GAAP to Non-GAAP Operating Expenses |
| (Unaudited, in thousands) |
| | Three Months Ended |
| | December 31, | | September 27, | | June 28, | | March 29, | | December 31, |
| | 2025 | | 2025 | | 2025 | | 2025 | | 2024 |
| GAAP operating expenses: | | | | | | | | | | |
| Sales and marketing | | $ | 66,667 | | | $ | 60,257 | | | $ | 63,653 | | | $ | 58,059 | | | $ | 59,443 | |
| Research and development | | 53,534 | | | 47,055 | | | 45,787 | | | 43,980 | | | 45,858 | |
| General and administrative | | 27,827 | | | 27,293 | | | 26,464 | | | 26,750 | | | 26,816 | |
| | 148,028 | | | 134,605 | | | 135,904 | | | 128,789 | | | 132,117 | |
| Stock-based compensation: | | | | | | | | | | |
| Sales and marketing | | (7,059) | | | (6,158) | | | (11,047) | | | (6,469) | | | (7,138) | |
| Research and development | | (6,400) | | | (5,965) | | | (5,890) | | | (5,081) | | | (5,388) | |
| General and administrative | | (7,782) | | | (7,742) | | | (7,912) | | | (7,415) | | | (8,729) | |
| | (21,241) | | | (19,865) | | | (24,849) | | | (18,965) | | | (21,255) | |
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| Non-GAAP operating expenses: | | | | | | | | | | |
| Sales and marketing | | 59,608 | | | 54,099 | | | 52,606 | | | 51,590 | | | 52,305 | |
| Research and development | | 47,134 | | | 41,090 | | | 39,897 | | | 38,899 | | | 40,470 | |
| General and administrative | | 20,045 | | | 19,551 | | | 18,552 | | | 19,335 | | | 18,087 | |
| | $ | 126,787 | | | $ | 114,740 | | | $ | 111,055 | | | $ | 109,824 | | | $ | 110,862 | |
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| Calix, Inc. |
| Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income |
| (Unaudited, in thousands) |
| | Three Months Ended | |
| | December 31, | | September 27, | | June 28, | | March 29, | | December 31, | |
| | 2025 | | 2025 | | 2025 | | 2025 | | 2024 | |
| GAAP net income (loss) | | $ | 7,212 | | | $ | 15,658 | | | $ | (199) | | | $ | (4,787) | | | $ | (17,924) | | |
| Adjustments to GAAP amount: | | | | | | | | | | | |
| Stock-based compensation | | 22,012 | | | 20,618 | | | 25,613 | | | 19,745 | | | 22,075 | | |
| Intangible asset amortization | | — | | | 381 | | | 228 | | | 298 | | | 298 | | |
| Income tax effect of non-GAAP adjustments | | (1,959) | | | (6,071) | | | (3,398) | | | (2,125) | | | 781 | | |
| Non-GAAP net income | | $ | 27,265 | | | $ | 30,586 | | | $ | 22,244 | | | $ | 13,131 | | | $ | 5,230 | | |
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| Calix, Inc. |
| Non-GAAP Free Cash Flow Reconciliation |
| (Unaudited, in thousands) |
| | Three Months Ended |
| | December 31, | | September 27, | | June 28, | | March 29, | | December 31, |
| | 2025 | | 2025 | | 2025 | | 2025 | | 2024 |
| Net cash provided by operating activities | | $ | 46,046 | | | $ | 32,314 | | | $ | 39,381 | | | $ | 17,212 | | | $ | 15,363 | |
| Purchases of property and equipment | | (5,765) | | | (5,625) | | | (3,735) | | | (4,310) | | | (5,149) | |
| Non-GAAP free cash flow | | $ | 40,281 | | | $ | 26,689 | | | $ | 35,646 | | | $ | 12,902 | | | $ | 10,214 | |
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| Calix, Inc. |
Reconciliation of GAAP Net Income to Non-GAAP Net Income Per Diluted Common Share1 |
| (Unaudited) |
| | Three Months Ended
December 31, 2025 |
| GAAP net income per diluted common share | | $ | 0.10 | |
| Adjustments to GAAP amount: | | |
| Stock-based compensation | | 0.31 | |
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Income tax effect of non-GAAP adjustments | | (0.02) | |
| Non-GAAP net income per diluted common share | | $ | 0.39 | |
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1 | Based on 70.4 million weighted-average diluted common shares outstanding. | | |
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| Calix, Inc. |
| Reconciliation of GAAP to Non-GAAP Guidance |
| (Unaudited, dollars in thousands, except per share data) |
| Three Months Ending March 28, 2026 |
| | GAAP | | Stock-Based Compensation | | | | | | Non-GAAP |
| Gross margin | | 55.95% - 57.95% | | 0.3% | | | | | | 56.25% - 58.25% |
| Operating expenses | | $147,000 - $149,000 | | $(20,000) | | | | | | $127,000 - $129,000 |
Net income per diluted common share1 | | $0.08 - $0.14 | | $0.26 2 | | | | | | $0.34 - $0.40 |
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1 | Based on 69.6 million weighted-average diluted common shares outstanding. | | |
2 | Net of income taxes. | | |
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