Q1 2026 Calix Inc Earnings Call Transcript
Key Points
- Calix Inc (CALX) reported record revenue of $280 million for the first quarter of 2026, marking a 3% sequential increase driven by strong demand for its platform.
- The company successfully completed the migration of all existing customers to the third generation of the Calix platform on Google Cloud, enhancing capabilities and market reach.
- Calix Inc (CALX) welcomed 14 new customers in the quarter, reinforcing efforts to grow its customer base and support community expansion.
- The company generated free cash flow of $7 million and maintained a strong cash and investment balance of $243 million.
- Calix Inc (CALX) invested $171 million to buy back 3.3 million shares of common stock, with the Board authorizing an additional $100 million for the buyback program, demonstrating confidence in future opportunities and commitment to shareholder value.
- Non-GAAP gross margin decreased by 80 basis points sequentially to 57.2% due to investment in dual cloud environments during the customer migration process.
- Remaining performance obligations were down 2% sequentially, although they were up 11% year over year.
- The company faces higher memory component costs as advanced purchasing has run its course, impacting gross margins.
- Calix Inc (CALX) anticipates a 200-basis-point headwind on gross margins due to surcharges for higher memory costs.
- Non-GAAP operating expenses are expected to increase slightly in the second quarter of 2026, driven by efforts to expedite AI functionality and enhancements to the Calix One platform.
Greetings, everyone, and welcome to the Calix first-quarter 2026 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Nancy Fazioli, Vice President of Investor Relations. Nancy, please go ahead.
Thank you, Alicia, and good afternoon, everyone. Thank you for joining our first-quarter 2026 earnings call. Today on the call, we have President and CEO, Michael Weening; and Chief Financial Officer, Cory Sindelar.
As a reminder, today after the market closed, Calix issued news releases, which were furnished on a Form 8-K along with our stockholder letter and were also posted on the Investor Relations section of the Calix website. Today's conference call will be available for webcast replay in the Investor Relations section of our website.
Before I turn the call over to Michael for his opening remarks, I want to remind everyone that on this call, we will refer to forward-looking
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