Calix Q2 Revenue Hits $293M but Margins Erode; $240M Buyback Drains Cash
CALX is trading near its 52-week low of $34.26 (9.4% above the low) on elevated volume (4.0× avg).
Summary
Calix posted record Q2 revenue of $293.3M and GAAP EPS of $0.26, but gross margins fell on higher memory costs. The company spent $240M on buybacks in H1, slashing its cash balance, while its chairman adopted a plan to sell up to 300,000 shares.
Key Events · Earnings and Guidance · CALX
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Record Q2 Revenue, But Margins Erode
Revenue rose 21% YoY to $293.3M, with GAAP EPS of $0.26. Gross margin fell 170 bps to 54.6% due to elevated memory component costs, and management warned of continued pressure.
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Aggressive Buybacks Drain Cash
Calix repurchased 5.0M shares for $240.2M in H1 2026, reducing shares outstanding by 7%. Cash and equivalents dropped to $194.3M from $388.1M at year-end 2025.
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Chairman Adopts 10b5-1 Sales Plan
Chairman Carl Russo adopted a Rule 10b5-1 plan on April 23, 2026, to sell up to 300,000 shares starting July 2026, adding potential selling pressure.
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Securities Class Action Filed
A lawsuit filed May 27, 2026, alleges Calix misled investors about memory component supply and its impact on non-GAAP gross margins between January 28 and April 21, 2026.
Analysis · CALX · Technology
Calix delivered record Q2 revenue of $293.3 million, up 21% year-over-year, and swung to a GAAP profit of $17.1 million. However, gross margin contracted 170 basis points to 54.6% as memory component costs bit, and the company burned through nearly half its cash pile—$194 million spent on buybacks in just six months. The balance sheet weakened: cash and equivalents fell to $194.3 million from $388.1 million at year-end. Adding to the overhang, Chairman Carl Russo adopted a 10b5-1 plan to sell up to 300,000 shares starting this month. A securities class action filed in May alleges the company misled investors about memory supply and its margin impact. The strong top line is overshadowed by margin pressure, aggressive capital allocation, and legal risk.
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At the time of this filing, CALX was trading at $37.47 on NYSE in the Technology sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $34.26 to $71.22. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.