Extreme Networks Announces $200 Million Share Repurchase Authorization
Extreme Networks (EXTR) has announced a new $200 million share repurchase authorization over a three-year period, starting July 1, 2025. The company still has approximately $50 million remaining from its previous May 2022 authorization, which expires June 30, 2025.
The company's CFO, Kevin Rhodes, indicated that after several quarters of sequential growth and improved cash flow, they have resumed buyback activity. The strategy aims to deleverage the balance sheet, offset equity program dilution, and return capital to shareholders opportunistically.
The repurchase program's implementation will be based on market conditions, stock price, and management's evaluation of the best use of available cash. Purchases may be conducted through open market transactions or via a 10b5-1 plan.
Extreme Networks (EXTR) ha annunciato una nuova autorizzazione al riacquisto di azioni da 200 milioni di dollari su un periodo di tre anni, a partire dal 1° luglio 2025. L'azienda ha ancora circa 50 milioni di dollari rimanenti dalla precedente autorizzazione di maggio 2022, che scade il 30 giugno 2025.
Il CFO dell'azienda, Kevin Rhodes, ha indicato che dopo diversi trimestri di crescita sequenziale e un miglioramento del flusso di cassa, hanno ripreso l'attività di riacquisto. La strategia mira a ridurre l'indebitamento, compensare la diluizione del programma azionario e restituire capitale agli azionisti in modo opportunistico.
L'attuazione del programma di riacquisto sarà basata sulle condizioni di mercato, sul prezzo delle azioni e sulla valutazione da parte della direzione del miglior utilizzo della liquidità disponibile. Gli acquisti possono essere effettuati tramite transazioni nel mercato aperto o tramite un piano 10b5-1.
Extreme Networks (EXTR) ha anunciado una nueva autorización de recompra de acciones de 200 millones de dólares durante un periodo de tres años, comenzando el 1 de julio de 2025. La compañía aún tiene aproximadamente 50 millones de dólares restantes de su autorización anterior de mayo de 2022, que expira el 30 de junio de 2025.
El CFO de la compañía, Kevin Rhodes, indicó que después de varios trimestres de crecimiento secuencial y mejora en el flujo de efectivo, han reanudado la actividad de recompra. La estrategia tiene como objetivo reducir el apalancamiento del balance, compensar la dilución del programa de acciones y devolver capital a los accionistas de manera oportuna.
La implementación del programa de recompra se basará en las condiciones del mercado, el precio de las acciones y la evaluación de la gerencia sobre el mejor uso del efectivo disponible. Las compras pueden realizarse a través de transacciones en el mercado abierto o mediante un plan 10b5-1.
익스트림 네트웍스 (EXTR)는 2025년 7월 1일부터 시작하여 3년 동안 2억 달러 규모의 자사주 매입 승인을 발표했습니다. 이 회사는 2022년 5월에 승인된 자사주 매입에서 약 5천만 달러가 남아 있으며, 이 승인은 2025년 6월 30일에 만료됩니다.
회사의 CFO인 케빈 로즈는 몇 분기 연속 성장과 개선된 현금 흐름 후에 자사주 매입 활동을 재개했다고 밝혔습니다. 이 전략은 재무제표의 레버리지를 줄이고, 주식 프로그램의 희석을 상쇄하며, 주주에게 자본을 기회에 따라 환원하는 것을 목표로 합니다.
매입 프로그램의 실행은 시장 상황, 주가 및 경영진의 가용 현금의 최적 사용에 대한 평가를 기반으로 합니다. 매입은 공개 시장 거래를 통해 또는 10b5-1 계획을 통해 이루어질 수 있습니다.
Extreme Networks (EXTR) a annoncé une nouvelle autorisation de rachat d'actions de 200 millions de dollars sur une période de trois ans, à partir du 1er juillet 2025. L'entreprise dispose encore d'environ 50 millions de dollars restants de son autorisation précédente de mai 2022, qui expire le 30 juin 2025.
Le directeur financier de l'entreprise, Kevin Rhodes, a indiqué qu'après plusieurs trimestres de croissance séquentielle et d'amélioration des flux de trésorerie, ils ont repris l'activité de rachat. La stratégie vise à désendetter le bilan, à compenser la dilution du programme d'actions et à restituer du capital aux actionnaires de manière opportuniste.
L'application du programme de rachat sera basée sur les conditions du marché, le prix des actions et l'évaluation par la direction de la meilleure utilisation de la trésorerie disponible. Les achats peuvent être effectués par le biais de transactions sur le marché ouvert ou via un plan 10b5-1.
Extreme Networks (EXTR) hat eine neue Aktienrückkaufautorisierung über 200 Millionen Dollar für einen Zeitraum von drei Jahren angekündigt, beginnend am 1. Juli 2025. Das Unternehmen hat noch etwa 50 Millionen Dollar verbleibend aus seiner vorherigen Genehmigung im Mai 2022, die am 30. Juni 2025 abläuft.
Der CFO des Unternehmens, Kevin Rhodes, gab an, dass nach mehreren aufeinanderfolgenden Quartalen mit Wachstum und verbessertem Cashflow die Rückkauftätigkeit wieder aufgenommen wurde. Die Strategie zielt darauf ab, die Bilanz zu entschulden, die Verwässerung des Eigenkapitalprogramms auszugleichen und den Aktionären opportunistisch Kapital zurückzugeben.
Die Umsetzung des Rückkaufprogramms wird auf der Grundlage der Marktbedingungen, des Aktienkurses und der Bewertung des Managements hinsichtlich der besten Verwendung des verfügbaren Bargelds erfolgen. Käufe können durch Transaktionen am offenen Markt oder über einen 10b5-1-Plan durchgeführt werden.
- New $200 million share repurchase program authorized for 2025-2028
- Still has $50 million remaining from previous buyback program
- Several quarters of sequential growth and improved cash flow reported
- Strategic focus on deleveraging balance sheet and offsetting equity dilution
- New buyback program doesn't start until July 2025
- Program execution subject to market conditions and may be suspended
Insights
The newly announced
Several key aspects of this announcement warrant attention:
- The three-year duration offers significant flexibility in execution, allowing management to optimize purchase timing based on market conditions and valuation opportunities.
- The prioritization of deleveraging alongside buybacks indicates a balanced approach to capital allocation, suggesting management's focus on maintaining financial stability while returning capital to shareholders.
- The resumption of buyback activity following "several quarters of sequential growth and improvement in cash flow" points to sustainable operational improvements rather than opportunistic financial engineering.
The program's structure as a non-binding authorization rather than a commitment provides important strategic flexibility, particularly valuable given the extended timeline and evolving market conditions. The emphasis on deleverage as the primary use of free cash flow, followed by dilution management, demonstrates a disciplined approach to capital allocation that should support long-term financial health.
Kevin Rhodes, Extreme’s Executive Vice President and CFO said, "We have resumed our buyback activity after several quarters of sequential growth and improvement in cash flow. Given the confidence we have in our long-term growth prospects, we believe the best use of free cash flow is to deleverage our balance sheet, offset dilution from our equity programs, and to opportunistically return capital to shareholders. This buyback authorization further extends our ability to maximize shareholder returns beyond fiscal 2025.”
The manner, timing and amount of any future purchases will be determined by the Company's management based on their evaluation of market conditions, stock price, Extreme’s ongoing determination that it is the best use of available cash and other factors. The repurchase program does not obligate Extreme to acquire any common stock, may be suspended or terminated at any time without prior notice and will be subject to regulatory considerations. Purchases may be made from time to time in the open market or pursuant to a 10b5-1 plan.
Forward-Looking Statements
Statements in this press release, including statements regarding the company's cash flow and its intention to repurchase shares of its common stock from time to time under the stock repurchase program, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements speak only as of the date of this release. There are several important factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, the market price of the company's stock prevailing from time to time, the nature of other investment opportunities presented to the company from time to time, the company's cash flows from operations, general economic conditions, and other factors discussed under Item 1A. "Risk Factors," in the company’s Annual Report on Form 10-K, Quarterly Report on Form 10-Q and other reports filed with the SEC. The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, the occurrence of certain events or otherwise. As a result of these risks and others, actual results could vary significantly from those anticipated in this press release, and the company’s financial condition and results of operations could be materially adversely affected.
About Extreme Networks:
Extreme Networks, Inc. (EXTR) is a leader in AI-driven cloud networking, focused on delivering simple and secure solutions that help businesses address challenges and enable connections among devices, applications, and users. We push the boundaries of technology, leveraging the powers of artificial intelligence, analytics, and automation. Tens of thousands of customers globally trust our AI-driven cloud networking solutions and industry-leading support to enable businesses to drive value, foster innovation, and overcome extreme challenges. For more information, visit Extreme's website at www.extremenetworks.com or follow us on LinkedIn, YouTube, X, Facebook, or Instagram.
Extreme Networks and the Extreme Networks logo are trademarks or registered trademarks of Extreme Networks, Inc. in
View source version on businesswire.com: https://www.businesswire.com/news/home/20250218529925/en/
Investor Relations and Press Contacts:
Stan Kovler
SVP, Corporate Development & Investor Relations
Extreme Networks
919-595-4196
skovler@extremenetworks.com
Amy Aylward
VP, Corporate Marketing
Extreme Networks
603-952-5138
PR@extremenetworks.com
Source: Extreme Networks, Inc.
FAQ
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