One-glance verdict
Within fair range
$47.89 our estimate vs market $35.15
Wall Street consensus: $62.33 (30.2% higher than our fair-value estimate)
27% below our estimate
Fundamentals snapshot
Calix, Inc.
CALX · NYQ · Technology · Software - Infrastructure
Current price
$35.15
52-week range
$33.95 - $71.22
Market cap
$2.21B
Balance sheet
Healthy
52.21x Strong cushion
Net cash $180.32M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 11.1% last year.
- Reward Returns 6.9% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 7/10 years.
What this company does
Calix, Inc.
Calix provides software and systems to internet service providers, helping them run their networks and sell services like smart home security and advanced Wi-Fi to people and businesses. The company makes money by selling this technology platform to internet providers, which in turn helps even small, local providers compete with bigger rivals. This creates a business ecosystem (a network where different companies and customers all rely on each other), encouraging internet companies to become long-term partners.
How the company got here
Founded in 1999, Calix started by providing equipment to help smaller internet companies upgrade their networks. A key moment was its 2011 purchase of a competitor, Occam Networks, which expanded its customer base. Over the last decade, Calix has shifted its focus from being just a hardware seller to a platform partner, offering software and services. This change helps its customers, who are broadband service providers (BSPs), do more than just provide an internet connection; it helps them manage their business and offer new services to subscribers.
What it actually does
Calix provides a complete package of software, hardware, and services for local and regional internet service providers, like those serving rural areas or specific communities. Think of it as a one-stop shop that helps these providers build, manage, and grow their internet networks. Their platform allows these companies to simplify their operations, offer better Wi-Fi experiences in homes and businesses, and roll out new services like enhanced security or community-wide Wi-Fi. The end goal is to help these local providers compete with larger national companies by improving the internet experience for their customers.
Platforms
This is the core of Calix's modern business and a major source of its recurring revenue (income that is predictable and likely to continue). It's a collection of cloud-based software that helps internet providers manage their networks and customer relationships. For example, the Calix Cloud gives providers data and insights to improve network performance and reduce the need for technician visits. This segment makes money by charging subscription fees, which creates a steady and predictable income stream for the company.
Systems
This part of the business includes the physical hardware that makes an internet network run. This includes equipment that sits in the provider's central office and the Wi-Fi systems, like GigaSpire routers, that go inside a subscriber's home or business. While Calix has been focusing more on software, these hardware sales are still a significant part of the business. Revenue from systems is typically generated from one-time sales of this equipment to the broadband service providers.
Services
This segment provides support and expertise to help internet providers succeed. This can include helping design a new network, managing the rollout of new technology, and providing ongoing support and training. Calix also offers 'managed services,' which are ready-to-go products that providers can sell to their own customers, such as smart home security or advanced Wi-Fi for small businesses. This helps the service providers generate new revenue (money they bring in from sales) beyond just the basic internet subscription.
What management is betting on now
Calix is heavily focused on becoming an essential platform partner for broadband providers, moving beyond one-time hardware sales to create long-term relationships. A major priority is expanding its cloud and software subscriptions, which provide more predictable, recurring revenue. The company is also betting on the growth of smaller, community-focused internet providers, especially in rural areas, which are receiving government funding to expand their networks. Finally, Calix is investing in artificial intelligence (AI) to make its platform smarter, helping providers anticipate customer needs and operate more efficiently.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$12.76M
FY2024 Q4
$10.21M
FY2025 Q1
$12.90M
FY2025 Q2
$35.65M
FY2025 Q3
$26.69M
FY2025 Q4
$40.28M
FY2026 Q1
$6.52M
FY2026 Q2
$11.93M
Revenue
$293.33M
Net income
$17.11M
Diluted EPS
0.26
Operating cash flow
$16.51M
Free cash flow
$11.93M
Fetching…
Sources
Revenue
$279.98M
Net income
$11.21M
Diluted EPS
0.16
Operating cash flow
$14.63M
Free cash flow
$6.52M
Fetching…
Sources
Revenue
$272.45M
Net income
$7.21M
Diluted EPS
0.11
Operating cash flow
$46.05M
Free cash flow
$40.28M
Fetching…
Sources
Revenue
$265.44M
Net income
$15.66M
Diluted EPS
0.22
Operating cash flow
$32.31M
Free cash flow
$26.69M
Fetching…
Sources
Revenue
$241.88M
Net income
$-199.00K
Diluted EPS
0.00
Operating cash flow
$39.38M
Free cash flow
$35.65M
Fetching…
Sources
Revenue
$220.24M
Net income
$-4.79M
Diluted EPS
-0.07
Operating cash flow
$17.21M
Free cash flow
$12.90M
Fetching…
Sources
Revenue
$206.12M
Net income
$-17.92M
Diluted EPS
-0.27
Operating cash flow
$15.36M
Free cash flow
$10.21M
Fetching…
Sources
Revenue
$200.94M
Net income
$-3.97M
Diluted EPS
-0.06
Operating cash flow
$16.00M
Free cash flow
$12.76M
Fetching…
Sources
Is it cheap or expensive?
Fair value $47.89 vs current price $35.15
Wall Street consensus is the average analyst price target: $62.33 (30.2% higher than our fair-value estimate).
Our most-likely fair value is $47.89 a share — about 36.2% away from today's price of $35.15, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $180.3M - more cash than debt. Interest coverage 52.2x.
Net debt
$-180.32M
Interest coverage
52.21x
Calix, Inc.'s profit covers its interest bill about 52.2 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
CALX
BASELINE
Calix, Inc.
Total debt $13.98M Interest coverage 52.21x This is the baseline the peer rows are being compared against.
Total debt $194.57M Interest coverage 4.64x -91% vs CALX Carries about 11.2x less debt cushion than CALX.
Total debt $39.98M Interest coverage 64.93x +24% vs CALX Carries about 1.2x more debt cushion than CALX.
Total debt $130.12M Interest coverage 4.48x -91% vs CALX Carries about 11.6x less debt cushion than CALX.
Total debt $242.66M Interest coverage -0.81x -100% vs CALX This peer has almost no interest-payment cushion compared with CALX.
What you should know
The case for and against CALX
3 Rewards
0 Risks
Rewards
-
Revenue grew 11.1% last year.
-
Returns 6.9% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
46.25x
Forward P/E
15.27x
P/B
3.12x
P/S
1.99x
EV/EBITDA
25.69x
PEG ratio
3.34x
Profitability
How much profit each dollar creates
Gross margin
56.6%
Operating margin
7.4%
Net margin
4.6%
ROE
6.9%
ROA
4.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
2.83x
Quick ratio
1.57x
Total debt
$13.98M
Total cash
$194.30M
Growth
How the business has been compounding
Revenue TTM
$1.11B
Revenue 5Y CAGR
10.1%
EPS TTM
0.76
EPS 5Y CAGR
-24.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$109.51M
Free CF TTM
$115.52M
FCF margin
10.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—