Craig-Hallum has increased its price target for Calix (CALX, Financial) from $50 to $68 while maintaining a Buy rating on the stock. This adjustment follows the company’s impressive earnings performance in the second quarter. The firm points to the company’s expanding potential in artificial intelligence and international markets as key factors contributing to its positive outlook.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Calix Inc (CALX, Financial) is $62.00 with a high estimate of $70.00 and a low estimate of $50.00. The average target implies an upside of 10.99% from the current price of $55.86. More detailed estimate data can be found on the Calix Inc (CALX) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Calix Inc's (CALX, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Calix Inc (CALX, Financial) in one year is $43.93, suggesting a downside of 21.36% from the current price of $55.86. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Calix Inc (CALX) Summary page.
CALX Key Business Developments
Release Date: July 22, 2025
- Revenue: $242 million, representing 10% sequential quarterly growth.
- Record RPOs: $347 million, a 2% sequential increase and 30% year-over-year growth.
- Current RPOs: $134 million, up 5% sequentially and 30% year-over-year.
- Non-GAAP Gross Margin: 56.8%, a 60 basis point sequential increase.
- New BSP Customers: 18 new customers added in the second quarter.
- Free Cash Flow: Record $36 million, marking the 9th consecutive quarter of generating 8-digit free cash flow.
- Cash and Investments: $299 million, even after $33 million in share repurchases.
- DSO (Days Sales Outstanding): 24 days, down 6 days sequentially and 14 days year-over-year.
- Inventory Turns: 3.4%, down from 3.6% in the first quarter.
- Third Quarter Revenue Guidance: $243 to $249 million, representing a 2% sequential increase at the midpoint.
- Non-GAAP Gross Margin Guidance: Expected slight increase from the second quarter.
- Annual Gross Margin Improvement: Anticipated at the higher end of the target financial model of 100 to 200 basis points.
- Non-GAAP Operating Expenses: Expected slight increase in the third quarter with incremental investments in sales and marketing.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Calix Inc (CALX, Financial) reported a strong second quarter with revenue of $242 million, representing a 10% sequential quarterly growth.
- The company achieved a record non-GAAP gross margin of 56.8%, indicating improved profitability.
- Calix Inc (CALX) added 18 new BSP customers, highlighting successful competitive takeaways and expansion of its customer base.
- The company generated a record free cash flow of $36 million, marking its ninth consecutive quarter of eight-digit free cash flow.
- Calix Inc (CALX) is advancing its platform with the introduction of its third-generation platform, which includes agentic AI capabilities to enhance customer operations and experiences.
Negative Points
- Despite strong revenue growth, the RPO growth was modest compared to the previous quarter, indicating potential variability in future revenue streams.
- The company faces challenges in marketing capacity for its customers, which could limit the adoption of new experience campaigns.
- Calix Inc (CALX) is investing significantly in AI and platform development, which may increase R&D and operational expenses in the near term.
- The impact of tariffs remains a concern, although currently minimal, it could affect future supply chain and cost structures.
- The BEAD program, which could provide significant growth opportunities, remains in a state of flux and is not currently factored into the company's financial projections.
