EXTR (Extreme Networks) Financial Strength: 6 (As of Jun. 2026) — 20% Above Median

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EXTR Extreme Networks Inc EXTR
72 GF Score
Price $21.61
GF Value $18.48
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Extreme Networks Financial Strength?

Extreme Networks EXTR -1.35% 72 Financial Strength is 6 as of Jun. 2026, which is 20% above its 10-year median of 5.00. GuruFocus rates EXTR with a GF Score™ of 72/100 and a GF Value™ of $18.48 (Modestly Overvalued). The stock has 5 warning signs investors should review.

Extreme Networks has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Extreme Networks's Interest Coverage for the quarter that ended in Jun. 2026 was 6.20. Extreme Networks's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.14. As of today, Extreme Networks's Altman Z-Score is 1.73.


Extreme Networks  (NAS:EXTR) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Extreme Networks has the Financial Strength Rank of 6.


Extreme Networks Financial Strength Related Terms


EXTR vs DGII, VISN, BDC: Financial Strength Comparison

For the Communication Equipment subindustry, Extreme Networks's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Extreme Networks Financial Strength vs Hardware Industry

For the Hardware industry and Technology sector, Extreme Networks's Financial Strength distribution charts can be found below:

* The bar in red indicates where Extreme Networks's Financial Strength falls into.


EXTR
72GF Score
Extreme Networks Inc EXTR
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Extreme Networks Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Extreme Networks's Interest Expense for the months ended in Jun. 2026 was $-4 Mil. Its Operating Income for the months ended in Jun. 2026 was $22 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was $164 Mil.

Extreme Networks's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*21.795/-3.518
=6.20

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Extreme Networks's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(30.682 + 163.884) / 1354.196
=0.14

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Extreme Networks has a Z-score of 1.73, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.73 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 6 mean?
Extreme Networks (EXTR) has a Financial Strength of 6 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Extreme Networks and its competitors. This is 20% above median its historical median of 5.00. Over the past decade, Extreme Networks' Financial Strength has ranged from 3.00 to 6.00.
Is Extreme Networks' Financial Strength too high?
Extreme Networks' current Financial Strength of 6 is 20% above median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 6.00. Overall, Extreme Networks has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Extreme Networks' Financial Strength compare to DGII and VISN?
Extreme Networks' Financial Strength of 6 can be compared against companies in the Hardware industry. Historically, Extreme Networks' own Financial Strength has ranged from 3.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Hardware company?
A good Financial Strength depends on the Hardware industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Extreme Networks and its competitors. Extreme Networks's current Financial Strength is 6, which is 20% above median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Extreme Networks stock overvalued right now?
Based on GuruFocus' analysis, Extreme Networks (EXTR) is currently considered Modestly Overvalued. The stock's GF Value™ is $18.48, compared to a current price of $21.61 — trading 16.9% above its estimated fair value. The current Financial Strength is 6, which is 20% above median its 10-year median of 5.00. Extreme Networks' overall GF Score™ is 72/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Extreme Networks (EXTR), the current Financial Strength is 6 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Extreme Networks (EXTR) Overvalued in 2026?

Based on GuruFocus' analysis, Extreme Networks stock appears to be overvalued. The current stock price of $21.61 is trading 16.9% above its estimated GF Value™ of $18.48. GuruFocus considers Extreme Networks to be Modestly Overvalued.

Key valuation signals for EXTR:

  • Financial Strength: 6 (20% above median its 10-year median of 5.00)
  • GF Value™: $18.48 vs. price of $21.61 (16.9% above fair value)
  • GF Score™: 72/100 with 5 warning signs

No single metric tells the full story. See the EXTR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Extreme Networks Business Description

Other Exchanges 0IJW:UKEXM:Germany
Address 2121 RDU Center Drive, Suite 300, Morrisville, NC, USA, 27560
Extreme Networks Inc provides AI-powered cloud networking, focused on delivering simple and secure solutions that help businesses address challenges and enable connections among devices, applications, and users. The group designs, develops, and manufactures wired, wireless, and software-defined wide area network (SD-WAN) infrastructure equipment. It has one reportable segment, the development, marketing, and sale of network infrastructure equipment and related software. The Company operates in three geographical areas: Americas, EMEA, and APAC.
72GF Score

Get the complete analysis for EXTR

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$21.61
Price
$18.48
GF Value