MeritValue

EXTREME NETWORKS INC

EXTRdata completeness 100%17 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'realEstateImpairment'; no data for concept 'dividendsPaid'

The thesis, from the filings

EXTREME NETWORKS INC earns about 10% on invested capital, barely covering its ~9% cost of capital, with a roughly flat share count. The estimate methods put fair value between $3.18 and $9 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$1.11B1$1.31B2$1.12B3$1.14B3$1.28B3
Net income$44.3M4$78.1M5−$86M6−$7.47M6$42.1M6
Operating cash flow$128.2M7$249.2M8$55.5M9$152M9$123.2M9
Capital expenditure$15.4M10$13.8M11$18.1M12$24.7M12$27.9M12
Free cash flow (derived)$112.7M7$235.4M8$37.4M9$127.3M9$95.2M9
Total debt$612.5M13$446.9M14$377.6M15$358M16$328.7M16
Cash & equivalents$194.5M17$234.8M18$156.7M19$231.7M20$211.8M20
Diluted shares133.5M133.6M129.3M132.3M135.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$6.56
your share of equity
Profit it earned you last year
$3.12
Free cash flow it threw off
$7.06
Debt you’d be carrying
$24.36

10 shares is a claim on $6.56 of net worth that earned you $3.12 and generated $7.06 of cash last year, against $24.36 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
10% avg · 5y
FY22 11%FY23 28%FY24 -19%FY25 5%FY26 26%

It earned about 10% on invested capital against a ~9% cost of capital — roughly what it costs to fund the business, so the numbers show no clear edge.

seeing a moat in the numbers →
Management signal · capital allocation
+1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has fallen 46% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0

The 3 estimate methods that apply put fair value between $3.18 and $9 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$8.26
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$95.2M
DCF · Growth Exit 5Y
$9
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$95.2M
Earnings Power Value
$3.18
assumptions (8)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$42.1M
  • growthAssumed0.0%
Graham Number
$2.17
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)9.08%
Terminal growth2.5%
At your growth, a share is worth $9
The three cases
Bear0.0%$9
Base0.0%$9
Bull5.0%$11.38

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-06-30 · accession 0000950170-24-098129 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-06-30 · accession 0000950170-25-109742 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-06-30 · accession 0001193125-26-352872 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-06-30 · accession 0000950170-24-098129 (NetIncomeLoss)
  5. 10-K · period ending 2023-06-30 · accession 0000950170-25-109742 (NetIncomeLoss)
  6. 10-K · period ending 2024-06-30 · accession 0001193125-26-352872 (NetIncomeLoss)
  7. 10-K · period ending 2022-06-30 · accession 0000950170-24-098129 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-06-30 · accession 0000950170-25-109742 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-06-30 · accession 0001193125-26-352872 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-06-30 · accession 0000950170-24-098129 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-06-30 · accession 0000950170-25-109742 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-06-30 · accession 0001193125-26-352872 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-06-30 · accession 0000950170-23-044385 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-06-30 · accession 0000950170-24-098129 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2024-06-30 · accession 0000950170-25-109742 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2025-06-30 · accession 0001193125-26-352872 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2022-06-30 · accession 0000950170-23-044385 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-06-30 · accession 0000950170-24-098129 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-06-30 · accession 0000950170-25-109742 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2025-06-30 · accession 0001193125-26-352872 (CashAndCashEquivalentsAtCarryingValue)