We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Calix shares fell 11.9% after Q4 results despite the non-GAAP EPS rising to 39 cents from 8 cents a year ago.
CALX guided 1Q26 EPS of 34-40 cents and a lower gross margin as customer mix and dual cloud costs weigh.
Calix Q4 revenues rose 32% y/y to $272.4M, driven by strong platform demand from BXP customers.
Calix (CALX - Free Report) shares have lost 11.9% since the company reported its fourth-quarter 2025 results on Jan. 28. The decline can be attributed to the company’s disappointing first-quarter 2026 outlook. In the first quarter of 2026, the company expects some near-term impacts on the non-GAAP gross margin due to customer mix and overlapping cloud costs, as it moves to its third-generation platform.
However, Calix reported fourth-quarter 2025 non-GAAP earnings of 39 cents per share, which beat the Zacks Consensus Estimate by 1.75%. The company had registered non-GAAP earnings of 8 cents in the year-ago quarter.
Non-GAAP revenues of $272.4 million, which beat the consensus mark by only 0.90%, increased 3% on a sequential basis and 32% on a year-over-year basis. This growth was driven by strong demand for its platform among broadband experience provider (BXP) customers. In the fourth quarter of 2025, remaining performance obligations reached a record $385 million, up 9% quarter over quarter and 18% year over year.
Calix’s Appliance revenues, which include our Access Edge and Experience Edge appliances and related optics, were $225.8 million, which accounted for 82.9% of total revenues. The figure represents a year-over-year increase of 35.8% and 2% on a sequential basis. This growth was primarily driven by the continued adoption of Calix's platform, as well as the growing network market and on-premises appliances.
Software and Services revenues were $46.6 million, which contributed 17.1% of total revenues, representing a 17.2% year-over-year increase and 7% on a sequential basis. The growth was driven by demand for platform licenses, Calix Cloud and managed services.
CALX Q4 Details
The non-GAAP gross margin expanded 250 basis points (bps) year over year to 58%. The non-GAAP appliance gross margin for the fourth quarter of 2025 was 57.4%, reflecting an increase of 120 basis points sequentially and 380 basis points year over year.
The non-GAAP software and services gross margin for the reported quarter was 61.3%, a decline of 390 basis points sequentially and 240 basis points year over year, primarily due to dual cloud costs incurred during the transition to the third-generation platform.
Sales and marketing expenses, as a percentage of revenues, decreased 350 bps from the year-ago quarter’s level to 21.9%.
Research and development expenses, as a percentage of revenues, decreased 230 bps to 17.3%.
General and administrative expenses, as a percentage of revenues, decreased 140 bps from the year-ago quarter’s level to 7.4%.
Calix reported a non-GAAP operating margin of 11.5%, which expanded 970 bps year over year.
Balance Sheet
As of Dec. 31, 2025, cash and cash equivalents (including marketable securities) were $388.1 million compared with $339.6 million as of Sept. 27, 2025.
In the reported quarter, the company generated a cash flow from operations of $46.046 million compared with $32.314 million in the previous quarter.
In the reported quarter, the company generated free cash flow of $40 million compared with $27 million in the previous quarter.
CALX 1Q26 Guidance
For first-quarter 2026, CALX expects non-GAAP revenues between $275 million and $281 million, suggesting 2% growth (at the midpoint) from the prior quarter's actual. The company expects non-GAAP earnings between 34 cents and 40 cents per share.
The non-GAAP gross margin for the first quarter of 2026 is expected between 56.25% and 58.25%, with a midpoint of 57.25%, indicating a decline of 75 basis points from that reported in the previous quarter, whereas non-GAAP operating expenses are expected between $127 million and $129 million, with a midpoint of $128 million, indicating a sequential increase.
Zacks Rank & Other Stocks to Consider
Calix currently sports a Zacks Rank #1 (Strong Buy).
Shares of Ciena have gained 199.5% in the past 12-month period. CIEN is likely to report its first-quarter fiscal 2026 results on Mar. 10, 2026.
Shares of Microchip Technology have gained 43.9% in the past 12-month period. MCHP is likely to report its third-quarter fiscal 2026 results on Feb. 5, 2026.
Shares of MKS have soared 115.8% in the past 12-month period. MKSI is likely to report its fourth-quarter 2025 results on Feb. 17, 2026.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Calix Share Price Decreases 11.9% Despite Strong Q4 Earnings Growth
Key Takeaways
Calix (CALX - Free Report) shares have lost 11.9% since the company reported its fourth-quarter 2025 results on Jan. 28. The decline can be attributed to the company’s disappointing first-quarter 2026 outlook. In the first quarter of 2026, the company expects some near-term impacts on the non-GAAP gross margin due to customer mix and overlapping cloud costs, as it moves to its third-generation platform.
However, Calix reported fourth-quarter 2025 non-GAAP earnings of 39 cents per share, which beat the Zacks Consensus Estimate by 1.75%. The company had registered non-GAAP earnings of 8 cents in the year-ago quarter.
Non-GAAP revenues of $272.4 million, which beat the consensus mark by only 0.90%, increased 3% on a sequential basis and 32% on a year-over-year basis. This growth was driven by strong demand for its platform among broadband experience provider (BXP) customers. In the fourth quarter of 2025, remaining performance obligations reached a record $385 million, up 9% quarter over quarter and 18% year over year.
Calix’s Appliance revenues, which include our Access Edge and Experience Edge appliances and related optics, were $225.8 million, which accounted for 82.9% of total revenues. The figure represents a year-over-year increase of 35.8% and 2% on a sequential basis. This growth was primarily driven by the continued adoption of Calix's platform, as well as the growing network market and on-premises appliances.
Calix, Inc Price, Consensus and EPS Surprise
Calix, Inc price-consensus-eps-surprise-chart | Calix, Inc Quote
Software and Services revenues were $46.6 million, which contributed 17.1% of total revenues, representing a 17.2% year-over-year increase and 7% on a sequential basis. The growth was driven by demand for platform licenses, Calix Cloud and managed services.
CALX Q4 Details
The non-GAAP gross margin expanded 250 basis points (bps) year over year to 58%. The non-GAAP appliance gross margin for the fourth quarter of 2025 was 57.4%, reflecting an increase of 120 basis points sequentially and 380 basis points year over year.
The non-GAAP software and services gross margin for the reported quarter was 61.3%, a decline of 390 basis points sequentially and 240 basis points year over year, primarily due to dual cloud costs incurred during the transition to the third-generation platform.
Sales and marketing expenses, as a percentage of revenues, decreased 350 bps from the year-ago quarter’s level to 21.9%.
Research and development expenses, as a percentage of revenues, decreased 230 bps to 17.3%.
General and administrative expenses, as a percentage of revenues, decreased 140 bps from the year-ago quarter’s level to 7.4%.
Calix reported a non-GAAP operating margin of 11.5%, which expanded 970 bps year over year.
Balance Sheet
As of Dec. 31, 2025, cash and cash equivalents (including marketable securities) were $388.1 million compared with $339.6 million as of Sept. 27, 2025.
In the reported quarter, the company generated a cash flow from operations of $46.046 million compared with $32.314 million in the previous quarter.
In the reported quarter, the company generated free cash flow of $40 million compared with $27 million in the previous quarter.
CALX 1Q26 Guidance
For first-quarter 2026, CALX expects non-GAAP revenues between $275 million and $281 million, suggesting 2% growth (at the midpoint) from the prior quarter's actual. The company expects non-GAAP earnings between 34 cents and 40 cents per share.
The non-GAAP gross margin for the first quarter of 2026 is expected between 56.25% and 58.25%, with a midpoint of 57.25%, indicating a decline of 75 basis points from that reported in the previous quarter, whereas non-GAAP operating expenses are expected between $127 million and $129 million, with a midpoint of $128 million, indicating a sequential increase.
Zacks Rank & Other Stocks to Consider
Calix currently sports a Zacks Rank #1 (Strong Buy).
Ciena (CIEN - Free Report) , Microchip Technology (MCHP - Free Report) and MKS (MKSI - Free Report) are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. These three stocks presently sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Ciena have gained 199.5% in the past 12-month period. CIEN is likely to report its first-quarter fiscal 2026 results on Mar. 10, 2026.
Shares of Microchip Technology have gained 43.9% in the past 12-month period. MCHP is likely to report its third-quarter fiscal 2026 results on Feb. 5, 2026.
Shares of MKS have soared 115.8% in the past 12-month period. MKSI is likely to report its fourth-quarter 2025 results on Feb. 17, 2026.