Calix Posts Record Q2 Revenue of $293M, Guides Q3 Above Street, but Memory Costs Squeeze Margins
CALX is trading near its 52-week low of $34.86 (5.3% below the low).
Summary
Calix posted record Q2 revenue of $293.3M and non-GAAP EPS of $0.47, beating guidance, but gross margins fell sharply due to memory component costs. Q3 guidance implies continued margin pressure. The company repurchased $69.4M in shares.
Key Events · Earnings and Guidance · CALX
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Record Q2 Revenue, EPS Beat
Revenue of $293.3M grew 21% YoY; non-GAAP EPS of $0.47 exceeded the high end of guidance ($0.35-$0.45).
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Gross Margin Squeeze
GAAP gross margin fell 230 bps sequentially to 54.6%, driven by higher memory component costs from AI data center demand. Surcharges partially offset the impact.
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Q3 Guidance: Revenue Up, Margins Down
Q3 revenue guidance of $301M-$307M implies ~4% sequential growth at midpoint, but non-GAAP gross margin guidance of 50.5%-53.5% reflects continued memory cost pressure.
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Software & Services Momentum
Software and service revenue reached a record $50.5M (up 16% YoY), and remaining performance obligations hit $386.4M, up 11% YoY, indicating strong future revenue visibility.
Analysis · CALX · Technology
Calix delivered record Q2 revenue of $293.3 million, up 21% year-over-year, driven by its AI-native Calix One platform. Non-GAAP EPS of $0.47 beat the high end of guidance. However, gross margin fell 230 bps sequentially to 54.6% as surging memory component costs—tied to AI data center demand—ate into profitability. The company is passing some costs to customers via surcharges, but the margin headwind persists into Q3 guidance (50.5%-53.5%). On the positive side, software and services revenue hit a record $50.5 million, and remaining performance obligations grew to $386.4 million, signaling strong future revenue visibility. Calix also repurchased $69.4 million in shares during the quarter, returning capital to shareholders. The stock trades near its 52-week low, making the earnings beat and buyback a potential catalyst, but the margin compression and cautious Q3 outlook temper enthusiasm.
At the time of this filing, CALX was trading at $33.00 on NYSE in the Technology sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $34.86 to $71.22. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.