EXTREME NETWORKS INC, 10-Q filed on 1/30/2025
Quarterly Report
v3.24.4
Document and Entity Information - shares
 6 Months Ended
Dec. 31, 2024
Jan. 24, 2025
Cover [Abstract]    
Entity Registrant Name EXTREME NETWORKS, INC.  
Entity Central Index Key 0001078271  
Current Fiscal Year End Date --06-30  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Shell Company false  
Entity Emerging Growth Company false  
Document Type 10-Q  
Document Period End Date Dec. 31, 2024  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
Trading Symbol EXTR  
Amendment Flag false  
Entity Common Stock, Shares Outstanding   132,755,304
Entity File Number 000-25711  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 77-0430270  
Entity Address, Address Line One 2121 RDU Center Drive, Suite 300  
Entity Address, City or Town Morrisville  
Entity Address, State or Province NC  
Entity Address, Postal Zip Code 27560  
City Area Code 408  
Local Phone Number 579-2800  
Title of 12(b) Security Common Stock  
Security Exchange Name NASDAQ  
Document Quarterly Report true  
Document Transition Report false  
Entity Interactive Data Current Yes  
Entity Current Reporting Status Yes  
v3.24.4
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Current assets:    
Cash and cash equivalents $ 170,322 $ 156,699
Accounts receivable, net 117,575 89,518
Inventories 132,278 141,032
Prepaid expenses and other current assets 75,114 79,677
Total current assets 495,289 466,926
Property and equipment, net 36,735 43,744
Operating lease right-of-use assets, net 41,609 44,145
Goodwill 391,981 393,709
Intangible assets, net 8,221 10,613
Other assets 107,109 83,457
Total assets 1,080,944 1,042,594
Current liabilities:    
Accounts payable 52,371 51,423
Accrued compensation and benefits 59,521 42,064
Accrued warranty 10,036 10,942
Current portion of deferred revenue 312,050 306,114
Current portion of long-term debt, net of unamortized debt issuance costs of $752 and $674, respectively 11,748 9,326
Current portion of operating lease liabilities 10,997 10,547
Other accrued liabilities 77,499 87,172
Total current liabilities 534,222 517,588
Deferred revenue, less current portion 277,419 268,909
Long-term debt, less current portion, net of unamortized debt issuance costs of $1,634 and $1,735, respectively 170,866 178,265
Operating lease liabilities, less current portion 37,994 41,466
Deferred income taxes 6,771 7,978
Other long-term liabilities 2,464 3,106
Commitments and contingencies (Note 8)
Stockholders’ equity:    
Convertible preferred stock, $0.001 par value, issuable in series, 2,000 shares authorized; none issued
Common stock, $0.001 par value, 750,000 shares authorized; 150,866 and 148,503 shares issued, respectively; 132,647 and 130,284 shares outstanding, respectively 151 149
Additional paid-in-capital 1,253,296 1,220,379
Accumulated other comprehensive loss (19,354) (15,483)
Accumulated deficit (945,084) (941,962)
Treasury stock at cost, 18,219 and 18,219 shares, respectively (237,801) (237,801)
Total stockholders’ equity 51,208 25,282
Total liabilities and stockholders’ equity $ 1,080,944 $ 1,042,594
v3.24.4
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Current liabilities:    
Net of unamortized debt issuance costs $ 752 $ 674
Noncurrent liabilities:    
Net of unamortized debt issuance costs $ 1,634 $ 1,735
Stockholders’ equity:    
Convertible preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Convertible preferred stock, shares authorized 2,000,000 2,000,000
Convertible preferred stock, shares issued 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized 750,000,000 750,000,000
Common stock, shares issued 150,866,000 148,503,000
Common stock, shares outstanding 132,647,000 130,284,000
Treasury Stock, Shares 18,219,000 18,219,000
v3.24.4
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Net revenues:        
Total net revenues $ 279,355 $ 296,377 $ 548,559 $ 649,514
Cost of revenues:        
Total cost of revenues 104,232 113,007 203,929 253,208
Gross profit:        
Total gross profit 175,123 183,370 344,630 396,306
Operating expenses:        
Research and development 54,883 52,833 109,334 110,849
Sales and marketing 79,967 85,154 161,350 177,074
General and administrative 26,064 25,384 62,665 49,257
Restructuring and related charges 1,035 9,174 2,312 11,891
Amortization of intangible assets 509 509 1,021 1,020
Total operating expenses 162,458 173,054 336,682 350,091
Operating income 12,665 10,316 7,948 46,215
Interest income 839 1,430 1,685 2,656
Interest expense (4,179) (4,269) (8,601) (8,587)
Other income (expense), net 661 (420) (60) 12
Income before income taxes 9,986 7,057 972 40,296
Provision for income taxes 2,604 3,069 4,094 7,632
Net income (loss) $ 7,382 $ 3,988 $ (3,122) $ 32,664
Basic and diluted income (loss) per share:        
Net income (loss) per share - basic $ 0.06 $ 0.03 $ (0.02) $ 0.25
Net income (loss) per share - diluted $ 0.06 $ 0.03 $ (0.02) $ 0.25
Shares used in per share calculation – basic 132,381 128,987 131,778 128,885
Shares used in per share calculation – diluted 134,107 131,514 131,778 132,786
Product        
Net revenues:        
Total net revenues $ 172,261 $ 186,611 $ 334,545 $ 440,094
Cost of revenues:        
Total cost of revenues 72,604 81,493 142,006 190,029
Gross profit:        
Total gross profit 99,657 105,118 192,539 250,065
Subscription and Support        
Net revenues:        
Total net revenues 107,094 109,766 214,014 209,420
Cost of revenues:        
Total cost of revenues 31,628 31,514 61,923 63,179
Gross profit:        
Total gross profit $ 75,466 $ 78,252 $ 152,091 $ 146,241
v3.24.4
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]        
Net income (loss) $ 7,382 $ 3,988 $ (3,122) $ 32,664
Derivatives designated as hedging instruments:        
Net change in foreign currency translation adjustments (7,972) 4,038 (3,871) 1,134
Other comprehensive income (loss): (7,972) 4,038 (3,871) 1,134
Total comprehensive income (loss) $ (590) $ 8,026 $ (6,993) $ 33,798
v3.24.4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-In-Capital
Accumulated Other Comprehensive Loss
Treasury Stock
Accumulated Deficit
Balance at Jun. 30, 2023 $ 116,752 $ 144 $ 1,173,744 $ (13,192) $ (187,946) $ (855,998)
Balance, common stock, shares at Jun. 30, 2023   143,629     (15,854)  
Net Income (Loss) 32,664         32,664
Other comprehensive income (loss) 1,134     1,134    
Issuance of common stock from equity incentive plans, net of tax withholdings (33,387) $ 3 (33,390)      
Issuance of common stock from equity incentive plans, net of tax withholdings, shares   3,214        
Repurchase of stock (49,855)       $ (49,855)  
Repurchase of stock, shares         (2,365)  
Share-based compensation 40,876   40,876      
Balance at Dec. 31, 2023 108,184 $ 147 1,181,230 (12,058) $ (237,801) (823,334)
Balance, common stock, shares at Dec. 31, 2023   146,843     (18,219)  
Balance at Sep. 30, 2023 108,482 $ 146 1,164,589 (16,096) $ (212,835) (827,322)
Balance, common stock, shares at Sep. 30, 2023   146,264     (16,734)  
Net Income (Loss) 3,988         3,988
Other comprehensive income (loss) 4,038     4,038    
Issuance of common stock from equity incentive plans, net of tax withholdings (4,315) $ 1 (4,316)      
Issuance of common stock from equity incentive plans, net of tax withholdings, shares   579        
Repurchase of stock (24,966)       $ (24,966)  
Repurchase of stock, shares         (1,485)  
Share-based compensation 20,957   20,957      
Balance at Dec. 31, 2023 108,184 $ 147 1,181,230 (12,058) $ (237,801) (823,334)
Balance, common stock, shares at Dec. 31, 2023   146,843     (18,219)  
Balance at Jun. 30, 2024 $ 25,282 $ 149 1,220,379 (15,483) $ (237,801) (941,962)
Balance, common stock, shares at Jun. 30, 2024 148,503 148,503     (18,219)  
Net Income (Loss) $ (3,122)         (3,122)
Other comprehensive income (loss) (3,871)     (3,871)    
Issuance of common stock from equity incentive plans, net of tax withholdings (8,300) $ 2 (8,302)      
Issuance of common stock from equity incentive plans, net of tax withholdings, shares   2,363        
Share-based compensation 41,219   41,219      
Balance at Dec. 31, 2024 $ 51,208 $ 151 1,253,296 (19,354) $ (237,801) (945,084)
Balance, common stock, shares at Dec. 31, 2024 150,866 150,866     (18,219)  
Balance at Sep. 30, 2024 $ 32,721 $ 150 1,234,220 (11,382) $ (237,801) (952,466)
Balance, common stock, shares at Sep. 30, 2024   150,265     (18,219)  
Net Income (Loss) 7,382         7,382
Other comprehensive income (loss) (7,972)     (7,972)    
Issuance of common stock from equity incentive plans, net of tax withholdings (2,375) $ 1 (2,376)      
Issuance of common stock from equity incentive plans, net of tax withholdings, shares   601        
Share-based compensation 21,452   21,452      
Balance at Dec. 31, 2024 $ 51,208 $ 151 $ 1,253,296 $ (19,354) $ (237,801) $ (945,084)
Balance, common stock, shares at Dec. 31, 2024 150,866 150,866     (18,219)  
v3.24.4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities:    
Net income (loss) $ (3,122) $ 32,664
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation 7,804 9,485
Amortization of intangible assets 2,251 3,064
Reduction in carrying amount of right-of-use asset 4,894 5,891
Provision for credit losses 27 82
Share-based compensation 41,219 40,876
Deferred income taxes (987) (21)
Provision (Benefit) for excess and obsolete inventory [1] (271) 16,043
Non-cash interest expense 594 532
Other (801) (2,481)
Changes in operating assets and liabilities:    
Accounts receivable, net (28,083) 69,915
Inventories [1] 411 (80,595)
Prepaid expenses and other assets (9,969) (7,850)
Accounts payable 1,177 (12,263)
Accrued compensation and benefits 16,995 (20,625)
Operating lease liabilities (5,375) (6,444)
Deferred revenue 17,421 48,272
Other current and long-term liabilities (4,067) 13,320
Net cash provided by operating activities 40,118 109,865
Cash flows from investing activities:    
Capital expenditures (12,325) (9,955)
Net cash used in investing activities (12,325) (9,955)
Cash flows from financing activities:    
Net payments on revolving facility   (25,000)
Payments on debt obligations (5,000) (5,000)
Payments on debt financing costs (695)  
Repurchase of common stock   (49,855)
Payments for tax withholdings, net of proceeds from issuance of common stock (8,300) (33,387)
Net cash used in financing activities (13,995) (113,242)
Foreign currency effect on cash and cash equivalents (175) (91)
Net increase (decrease) in cash and cash equivalents 13,623 (13,423)
Cash and cash equivalents at beginning of period 156,699 234,826
Cash and cash equivalents at end of period $ 170,322 $ 221,403
[1] The prior period amounts have been reclassified to conform to the current period presentation
v3.24.4
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Pay vs Performance Disclosure        
Net Income (Loss) $ 7,382 $ 3,988 $ (3,122) $ 32,664
v3.24.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Rule 10b5-1 Arrangement Modified false
Non-Rule 10b5-1 Arrangement Modified false
v3.24.4
Description of Business and Basis of Presentation
 6 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business and Basis of Presentation
1.
Description of Business and Basis of Presentation

Extreme Networks, Inc., together with its subsidiaries (collectively referred to as “Extreme” or the “Company”), is a leader in providing software-driven networking solutions for enterprise customers. The Company conducts its sales and marketing activities on a worldwide basis through distributors, resellers, and the Company’s field sales organization. Extreme was incorporated in California in 1996 and reincorporated in Delaware in 1999.

The unaudited condensed consolidated financial statements of Extreme included herein have been prepared under the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted under such rules and regulations. The condensed consolidated balance sheet at June 30, 2024 was derived from audited financial statements as of that date but does not include all disclosures required by generally accepted accounting principles for complete financial statements. These interim financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024.

The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations and cash flows for the interim periods presented and the financial condition of Extreme at December 31, 2024. The results of operations for the three and six months ended December 31, 2024 are not necessarily indicative of the results that may be expected for fiscal 2025 or any future periods.

Fiscal Year

The Company uses a fiscal calendar year ending on June 30. All references herein to “fiscal 2025” represent the fiscal year ending June 30, 2025. All references herein to “fiscal 2024” represent the fiscal year ended June 30, 2024.

Principles of Consolidation

The unaudited condensed consolidated financial statements include the accounts of Extreme and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated.

The Company predominantly uses the United States Dollar as its functional currency. The functional currency for certain of its foreign subsidiaries is the local currency. For those subsidiaries that operate in a local functional currency environment, all assets and liabilities are translated to United States Dollars at current month end rates of exchange and revenues, and expenses are translated using the monthly average rate.

Accounting Estimates

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates.
v3.24.4
Summary of Significant Accounting Policies
 6 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
2.
Summary of Significant Accounting Policies

For a description of significant accounting policies, see Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024. There have been no material changes to the Company’s significant accounting policies since the filing of the Annual Report on Form 10-K.

Recently Adopted Accounting Pronouncements

There were no recently adopted accounting standards which would have a material effect on the Company's condensed consolidated financial statements and accompanying disclosures.

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses to improve disclosures about public business entities’ expenses and to provide more detailed information around the types of expenses included in commonly presented expense captions. Additionally, in January 2025 the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods for fiscal years beginning after December 15, 2027, and can be applied on a prospective basis or on a retrospective basis to all periods presented. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2024-03 and ASU 2025-01 on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures to enhance income tax disclosures primarily through changes in the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2023-09 on its consolidated financial statements and related disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2023-07 on its consolidated financial statements and related disclosures.
v3.24.4
Revenues
 6 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenues
3.
Revenues

The Company accounts for revenues in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. The Company derives the majority of its revenues from sales of its networking equipment, with the remaining revenues generated from sales of subscription and support, which primarily includes software subscriptions delivered as software as a service (“SaaS”) and additional revenues from maintenance contracts, professional services and training for its products. The Company sells its products, SaaS and maintenance contracts direct to customers and partners in two distribution channels, or tiers. The first tier consists of a limited number of independent distributors that stock the Company's products and sell primarily to resellers. The second tier of the distribution channel consists of non-stocking distributors and value-added resellers that sell directly to end-users. Products and subscription and support may be sold separately or in bundled packages.

Revenue Recognition

Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Certain of the Company’s contracts have multiple performance obligations, as the promise to transfer individual goods or services is separately identifiable from other promises in the contracts and, therefore, is distinct. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on its relative standalone selling price. The stand-alone selling prices are determined based on the prices at which the Company separately sells these products. For items that are not sold separately, the Company estimates the stand-alone selling prices using other observable inputs.

The Company’s performance obligations are satisfied at a point in time or over time as the customer receives and consumes the benefits provided. Substantially all of the Company’s product sales revenues are recognized at a point in time. Substantially all of the Company’s subscription and support revenues are recognized over time. For revenues recognized over time, the Company primarily uses an input measure, days elapsed, to measure progress.

As of December 31, 2024, the Company had $589.5 million of remaining performance obligations, which primarily comprised of deferred SaaS subscription and deferred support revenues. The Company expects to recognize approximately 31% of its deferred revenue as revenue in the remainder of fiscal 2025, an additional 34% in fiscal 2026, and the remaining 35% of the balance thereafter.

Contract Balances. The timing of revenue recognition, billings and cash collections results in billed accounts receivable and deferred revenue in the condensed consolidated balance sheets. Services provided under renewable SaaS subscription and support arrangements of the Company are billed in accordance with agreed-upon contractual terms, which are either billed fully at the inception of contract or at periodic intervals (e.g., quarterly or annually). The Company generally receives payments from its customers in advance of services being provided, resulting in deferred revenues. These liabilities are reported on the condensed consolidated balance sheets on a contract-by-contract basis at the end of each reporting period.

Revenue recognized for the three months ended December 31, 2024 and 2023 that was included in the deferred revenue balance at the beginning of each period was $101.3 million and $105.7 million, respectively. Revenue recognized for the six months ended December 31, 2024 and 2023 that was included in the deferred revenue balance at the beginning of each period was $183.3 million and $172.0 million, respectively.

Contract Costs. The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. Management expects that commission fees paid to sales representatives as a result of obtaining subscription and support contracts and contract renewals are recoverable and therefore the Company’s condensed consolidated balance sheets included capitalized balances in the amount of $24.7 million as of December 31, 2024 and June 30, 2024. Capitalized commissions are included within other assets in the condensed consolidated balance sheets. Capitalized commission fees are amortized on a straight-line basis over the average period of service contracts of approximately three years, and are included in “Sales and marketing” in the accompanying condensed consolidated statements of operations. Amortization recognized during the three months ended December 31, 2024 and 2023 was $3.1 million and $2.7 million, respectively. Amortization recognized during the six months ended December 31, 2024 and 2023 was $6.1 million and $5.2 million, respectively.

Estimated Variable Consideration. There were no material changes in the current period to the estimated variable consideration for performance obligations, which were satisfied or partially satisfied during previous periods.

Revenues by Geography

The Company operates in three geographic regions: Americas, EMEA (Europe, Middle East and Africa) and APAC (Asia Pacific). The following table sets forth the Company’s net revenues disaggregated by geographic region (in thousands):

 

Three Months Ended

 

Six Months Ended

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

December 31,
2024

 

 

December 31,
2023

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

119,678

 

 

$

149,549

 

 

 

272,931

 

 

$

332,301

 

Other

 

 

11,710

 

 

 

13,086

 

 

 

23,892

 

 

 

25,983

 

Total Americas

 

 

131,388

 

 

 

162,635

 

 

 

296,823

 

 

 

358,284

 

EMEA

 

 

128,257

 

 

 

110,605

 

 

 

213,175

 

 

 

254,208

 

APAC

 

 

19,710

 

 

 

23,137

 

 

 

38,561

 

 

 

37,022

 

Total net revenues

 

$

279,355

 

 

$

296,377

 

 

$

548,559

 

 

$

649,514

 

 

Geographic Concentrations

 

For the three and six months ended December 31, 2024, the Company generated 15% and 11% of its net revenues from the Netherlands, respectively. For the three months ended December 31, 2023, the Company generated 10% of its net revenues from Germany and for the six months ended December 31, 2023, the Company generated approximately 11% of its net revenues from the Netherlands. No other foreign country accounted for 10% or more of the Company's net revenues for the three and six months ended December 31, 2024 and 2023.

 

Customer Concentrations

The Company performs ongoing credit evaluations of its customers and generally does not require collateral in exchange for credit.

The following table sets forth customers accounting for 10% or more of the Company’s net revenues for the periods indicated below:

 

 

Three Months Ended

 

Six Months Ended

 

 

December 31,
2024

 

December 31,
2023

 

December 31,
2024

 

December 31,
2023

Westcon Group, Inc.

 

22%

 

10%

 

18%

 

18%

TD Synnex Corporation

 

17%

 

24%

 

19%

 

21%

Jenne, Inc.

 

15%

 

23%

 

18%

 

25%

 

The following table sets forth major customers accounting for 10% or more of the Company’s net accounts receivable balance:

 

 

 

 

 

December 31,
2024

 

June 30,
2024

Jenne, Inc.

 

26%

 

64%

ScanSource, Inc.

 

*

 

11%

 * Less than 10% of accounts receivable

 

 

 

 
v3.24.4
Balance Sheet Accounts
 6 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Accounts
4.
Balance Sheet Accounts

 

Cash and Cash Equivalents

The Company considers highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents.

The following table summarizes the Company's cash and cash equivalents (in thousands):

 

 

December 31,
2024

 

 

June 30,
2024

 

Cash

 

$

170,204

 

 

$

153,483

 

Cash equivalents

 

 

118

 

 

 

3,216

 

Total cash and cash equivalents

 

$

170,322

 

 

$

156,699

 

 

Inventories

Inventories are stated at the lower of cost, or net realizable value. Extreme uses a standard cost methodology to determine the cost basis for its inventories. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. The Company adjusts the carrying value of its inventory when conditions exist that suggest that inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Any previously written down or obsolete inventory subsequently sold has not had a material impact on gross margin for any of the periods presented.

The following table summarizes the Company's inventory by category (in thousands):

 

 

December 31,
2024

 

 

June 30,
2024

 

Finished goods

 

$

84,002

 

 

$

115,813

 

Raw materials

 

 

48,276

 

 

 

25,219

 

Total inventories

 

$

132,278

 

 

$

141,032

 

 

Property and Equipment, Net

The following table summarizes the Company's property and equipment, net by category (in thousands):

 

 

December 31,
2024

 

 

June 30,
2024

 

Computers and equipment

 

$

80,790

 

 

$

77,224

 

Software

 

 

55,805

 

 

 

60,717

 

Office equipment, furniture and fixtures

 

 

8,103

 

 

 

8,134

 

Leasehold improvements

 

 

48,128

 

 

 

47,880

 

Total property and equipment

 

 

192,826

 

 

 

193,955

 

Less: accumulated depreciation and amortization

 

 

(156,091

)

 

 

(150,211

)

Property and equipment, net

 

$

36,735

 

 

$

43,744

 

 

Deferred Revenue

Deferred revenue represents invoiced amounts for deferred maintenance, SaaS, and other deferred revenue including professional services and training when the revenue recognition criteria have not been met.

Guarantees and Product Warranties

The majority of the Company’s hardware products are shipped with either a one-year warranty or a limited lifetime warranty, and software products receive a 90-day warranty. Upon shipment of products to its customers, the Company estimates expenses for the cost to repair or replace products that may be returned under warranty and accrues a liability in cost of product revenues for this amount. The determination of the Company’s warranty requirements is based on actual historical experience with the product or product family, estimates of repair and replacement costs, and any product warranty problems that are identified after shipment. The Company estimates and adjusts these accruals at each balance sheet date in accordance with changes in these factors.

The following table summarizes the activity related to the Company’s product warranty liability during the following periods (in thousands):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

December 31,
2024

 

 

December 31,
2023

 

Balance at beginning of period

 

$

10,239

 

 

$

12,164

 

 

$

10,942

 

 

$

12,322

 

New warranties issued

 

 

3,045

 

 

 

2,777

 

 

 

5,531

 

 

 

6,451

 

Warranty expenditures

 

 

(3,248

)

 

 

(3,544

)

 

 

(6,437

)

 

 

(7,376

)

Balance at end of period

 

$

10,036

 

 

$

11,397

 

 

$

10,036

 

 

$

11,397

 

 

To facilitate sales of its products in the normal course of business, the Company indemnifies its resellers and end-user customers with respect to certain matters. The Company has agreed to hold the customer harmless against losses arising from intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. It is not possible to estimate the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on its operating results or financial position.

 

Concentrations

The Company may be subject to concentration of credit risk as a result of certain financial instruments consisting of accounts receivable. See Note 3, Revenues, for the Company’s accounts receivable concentration. The Company does not invest an amount exceeding 10% of its combined cash in the securities of any one obligor or maker, except for obligations of the United States government, obligations of United States government agencies, and money market accounts.

v3.24.4
Fair Value Measurements
 6 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements
5.
Fair Value Measurements

A three-tier fair value hierarchy is utilized to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels are defined as follows:

•
Level 1 Inputs - unadjusted quoted prices in active markets for identical assets or liabilities;
•
Level 2 Inputs - quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and
•
Level 3 Inputs - unobservable inputs reflecting the Company’s own assumptions in measuring the asset or liability at fair value.

 

The following table presents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis (in thousands):

 

December 31, 2024

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

$

—

 

 

$

118

 

 

$

—

 

 

$

118

 

Foreign currency derivatives

 

 

—

 

 

 

36

 

 

 

—

 

 

 

36

 

Total assets measured at fair value

 

$

—

 

 

$

154

 

 

$

—

 

 

$

154

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivatives

 

$

—

 

 

$

342

 

 

$

—

 

 

$

342

 

Total liabilities measured at fair value

 

$

—

 

 

$

342

 

 

$

—

 

 

$

342

 

 

June 30, 2024

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

$

—

 

 

$

3,216

 

 

$

—

 

 

$

3,216

 

Foreign currency derivatives

 

 

—

 

 

 

18

 

 

 

—

 

 

 

18

 

Total assets measured at fair value

 

$

—

 

 

$

3,234

 

 

$

—

 

 

$

3,234

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivatives

 

$

—

 

 

$

71

 

 

$

—

 

 

$

71

 

Total liabilities measured at fair value

 

$

—

 

 

$

71

 

 

$

—

 

 

$

71

 

Level 1 Assets and Liabilities:

The Company’s financial instruments consist of cash, accounts receivable, accounts payable, and accrued liabilities. The Company states accounts receivable, accounts payable, and accrued liabilities at their carrying value, which approximates fair value due to the short time to the expected receipt or payment.

Level 2 Assets and Liabilities:

The Company's level 2 assets consist of certificates of deposit and derivative instruments. Certificates of deposit do not have regular market pricing and are considered Level 2. The fair value of derivative instruments under the Company’s foreign exchange forward contracts are estimated based on valuations provided by alternative pricing sources supported by observable inputs, which is considered Level 2.

As of December 31, 2024 and June 30, 2024, the Company had investment in certificates of deposit of $0.1 million and $3.2 million, respectively, with maturity of three months at the date of purchase, which are recorded as cash equivalents in the condensed consolidated balance sheets. The Company considers these cash equivalents to be available-for-sale and, as of December 31, 2024 and June 30, 2024, their fair value approximated their amortized cost.

As of December 31, 2024 and June 30, 2024, the Company had foreign exchange forward contracts that were not designated as hedging instruments with notional principal amounts of $55.0 million and $31.3 million, respectively. Changes in the fair value of these foreign exchange forward contracts not designated as hedging instruments are included in “Other income (expense), net” in the condensed consolidated statements of operations. For the three months ended December 31, 2024 and 2023, the net gains and losses recorded in the condensed consolidated statement of operations from these contracts were net losses of $2.1 million and net gains of $0.4 million, respectively. For the six months ended December 31, 2024 and 2023, the net gains and losses recorded in the condensed consolidated statement of operations were net losses of $1.3 million and net gains of $0.3 million, respectively. As of December 31, 2024 and June 30, 2024, there were no outstanding foreign exchange forward contracts that were designated as hedging instruments. See Note 12, Derivatives and Hedging, for additional information.

The fair value of borrowings under the 2023 Credit Agreement (as defined in Note 7) is estimated based on valuations provided by alternative pricing sources supported by observable inputs which is considered Level 2. Since the interest rate is variable in the 2023 Credit Agreement, the fair value approximates the face amount of the Company’s indebtedness of $185.0 million and $190.0 million as of December 31, 2024 and June 30, 2024, respectively.

Level 3 Assets and Liabilities:

Certain of the Company’s assets, including intangible assets and goodwill, are measured at fair value on a non-recurring basis if impairment is indicated.

As of December 31, 2024 and June 30, 2024, the Company did not have any assets or liabilities that were considered Level 3.

There were no transfers of assets or liabilities between Level 1, Level 2, or Level 3 during the three and six months ended December 31, 2024 and 2023. There were no impairments recorded for the three and six months ended December 31, 2024 and 2023.
v3.24.4
Intangible Assets and Goodwill
 6 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill
6.
Intangible Assets and Goodwill

 

Intangible Assets

The following tables summarize the components of gross and net intangible assets (in thousands, except years):

 

 

Weighted Average

 

 

 

 

 

 

 

 

 

 

 

Remaining Amortization

 

Gross Carrying

 

 

Accumulated

 

 

Net Carrying

 

 

 

Period

 

Amount

 

 

Amortization

 

 

Amount

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

Developed technology

 

2.8 years

 

$

168,884

 

 

$

163,676

 

 

$

5,208

 

Customer relationships

 

1.5 years

 

 

64,626

 

 

 

61,756

 

 

 

2,870

 

Trade names

 

0.0 years

 

 

10,700

 

 

 

10,700

 

 

 

—

 

License agreements

 

2.0 years

 

 

1,282

 

 

 

1,139

 

 

 

143

 

Total intangible assets, net*

 

 

 

$

245,492

 

 

$

237,271

 

 

$

8,221

 

* The carrying amount of foreign intangible assets are affected by foreign currency translation

 

 

 

 

 

 

 

Weighted Average

 

 

 

 

 

 

 

 

 

 

 

Remaining Amortization

 

Gross Carrying

 

 

Accumulated

 

 

Net Carrying

 

 

 

Period

 

Amount

 

 

Amortization

 

 

Amount

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

Developed technology

 

3.0 years

 

$

169,247

 

 

$

162,708

 

 

$

6,539

 

Customer relationships

 

2.0 years

 

 

64,671

 

 

 

60,776

 

 

 

3,896

 

Trade names

 

0.0 years

 

 

10,700

 

 

 

10,700

 

 

 

—

 

License agreements

 

2.4 years

 

 

1,282

 

 

 

1,104

 

 

 

178

 

Total intangible assets, net*

 

 

$

245,901

 

 

$

235,288

 

 

$

10,613

 

* The carrying amount of foreign intangible assets are affected by foreign currency translation

 

 

 

 

The following table summarizes the amortization expense of intangible assets for the periods presented (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

December 31,
2024

 

 

December 31,
2023

 

Amortization of intangible assets in “Total cost of revenues”

 

$

606

 

 

$

611

 

 

$

1,230

 

 

$

2,044

 

Amortization of intangible assets in “Total operating expenses”

 

 

509

 

 

 

509

 

 

 

1,021

 

 

 

1,020

 

Total amortization expense

 

$

1,115

 

 

$

1,120

 

 

$

2,251

 

 

$

3,064

 

The amortization expense that is recognized in “Total cost of revenues” primarily consists of amortization related to developed technology and license agreements.

The estimated future amortization expense to be recorded for each of the respective future fiscal years is as follows (in thousands):

 

 

Amount

 

For the fiscal year ending June 30:

 

 

 

2025 (the remainder of fiscal 2025)

 

$

2,183

 

2026

 

 

3,131

 

2027

 

 

1,402

 

2028

 

 

1,246

 

2029

 

 

259

 

Total

 

$

8,221

 

Goodwill

The Company had goodwill in the amount of $392.0 million and $393.7 million as of December 31, 2024 and June 30, 2024, respectively. The change in goodwill during the six months ended December 31, 2024 is due to foreign currency translation adjustments that are recorded as a component of accumulated other comprehensive loss.
v3.24.4
Debt
 6 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Debt
7.
Debt

The Company’s debt is comprised of the following (in thousands):

 

 

December 31,
2024

 

 

June 30,
2024

 

Current portion of long-term debt:

 

 

 

 

 

 

Term Loan

 

$

12,500

 

 

$

10,000

 

Less: unamortized debt issuance costs

 

 

(752

)

 

 

(674

)

Current portion of long-term debt

 

$

11,748

 

 

$

9,326

 

 

 

 

 

 

 

 

Long-term debt, less current portion:

 

 

 

 

 

 

Term Loan

 

$

172,500

 

 

$

180,000

 

Less: unamortized debt issuance costs

 

 

(1,634

)

 

 

(1,735

)

Total long-term debt, less current portion

 

 

170,866

 

 

 

178,265

 

Total debt

 

$

182,614

 

 

$

187,591

 

On August 9, 2019, the Company entered into an Amended and Restated Credit Agreement (the “2019 Credit Agreement”), by and among the Company, as borrower, several banks and other financial institutions as Lenders, BMO Harris Bank N.A., as an issuing lender and swingline lender, Silicon Valley Bank, as an Issuing Lender, and Bank of Montreal, as administrative agent and collateral agent for the Lenders which was subsequently amended during fiscal 2023.

On June 22, 2023, the Company entered into a Second Amended and Restated Credit Agreement (the “2023 Credit Agreement”), by and among the Company, as borrower, BMO Harris Bank, N.A., as an issuing lender and swingline lender, Bank of America, N.A., JPMorgan Chase Bank, N.A., PNC Bank, National Association, and Wells Fargo Bank, National Association, as issuing lenders, the financial institutions or entities party thereto as lenders, and Bank of Montreal, as administrative agent and collateral agent, which amended and restated the 2019 Credit Agreement. The 2023 Credit Agreement provides for i) a $200.0 million first lien term loan facility in an aggregate principal amount (the “2023 Term Loan”), ii) a $150.0 million five-year revolving credit facility (the “2023 Revolving Facility”) and, iii) an uncommitted additional incremental loan facility in the principal amount of up to $100.0 million.

Borrowings under the 2023 Credit Agreement bear interest, and at the Company’s election, the initial term loan may be made as either a base rate loan or a Secured Overnight Funding Rate (“SOFR”) loan. The applicable margin for base rate loans ranges from 1.00% to 1.75% per annum, and the applicable margin for SOFR loans ranges from 2.00% to 2.75%, in each case based on the Company’s consolidated leverage ratio. All SOFR loans are subject to a floor of 0.00% per annum and spread adjustment of 0.10% per annum. The Company paid other closing fees, arrangement fees, and administration fees associated with the 2023 Credit Agreement.

The 2023 Credit Agreement requires the Company to maintain certain minimum financial ratios at the end of each fiscal quarter. The 2023 Credit Agreement also includes covenants and restrictions that limit, among other things, the Company’s ability to incur additional indebtedness, create liens upon any of its property, merge, consolidate or sell all or substantially all of its assets. The 2023 Credit Agreement also includes customary events of default which may result in acceleration of the outstanding balance.

On August 14, 2024, the Company entered into an Amendment Number One to the 2023 Credit Agreement (the “Amended Credit Agreement”). Under the Amended Credit Agreement, the Company modified the definition of the consolidated EBITDA for the purposes of evaluating compliance with financial covenants under the 2023 Credit Agreement. The amended definition of consolidated EBITDA modifies the amount and type of add-backs that are allowable to better align with the Company's operations and activities. Further, the Amended Credit Agreement provides a waiver for the Company's compliance with the consolidated interest charge coverage ratio for each of the quarters ended June 30, 2024, September 30, 2024, and December 31, 2024.

As of December 31, 2024, the Company was in compliance with all the terms and financial covenants of the Amended Credit Agreement.

Financing costs incurred in connection with obtaining long-term financing are deferred and amortized over the term of the related indebtedness or credit agreement. Amortization of deferred financing costs is included in “Interest expense” in the accompanying condensed consolidated statements of operations and was $0.3 million for each period during the three months ended December 31, 2024 and 2023 and was $0.6 million and $0.5 million for the six months ended December 31, 2024 and 2023, respectively. The interest rate was 6.84% and 7.46% as of December 31, 2024 and 2023, respectively.

As of December 31, 2024, the Company did not have any outstanding balance against its 2023 Revolving Facility. The Company had $135.8 million of availability under the 2023 Revolving Facility as of December 31, 2024. During the three and six months ended December 31, 2024 and 2023, the Company did not make any additional payments against its term loan facility other than the scheduled payments per the terms of the Amended Credit Agreement.

The Company had $14.2 million of outstanding letters of credit as of December 31, 2024.
v3.24.4
Commitments and Contingencies
 6 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
8.
Commitments and Contingencies

Purchase Commitments

The Company currently has arrangements with contract manufacturers and suppliers for the manufacture of its products. Those arrangements allow the contract manufacturers to procure long lead-time component inventory based upon a rolling production forecast provided by the Company. The Company is obligated to purchase long lead-time component inventory that its contract manufacturer procures in accordance with the forecast, unless the Company gives notice of order cancellation outside of applicable component lead-times. As of December 31, 2024, the Company had commitments to purchase $29.5 million of inventory.

Legal Proceedings

The Company may from time to time be party to litigation arising in the course of its business, including, without limitation, allegations relating to commercial transactions, business relationships, or intellectual property rights. Such claims, even if not meritorious, could result in the expenditure of significant financial and managerial resources. Litigation in general, and intellectual property litigation in particular, can be expensive and disruptive to normal business operations. Moreover, the results of legal proceedings are difficult to predict.

In accordance with applicable accounting guidance, the Company records accruals for certain of its outstanding legal proceedings, investigations or claims when it is probable that a liability will be incurred, and the amount of loss can be reasonably estimated. The Company evaluates, at least on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual, as well as any developments that would result in a loss contingency to become both probable and reasonably estimable. When a loss contingency is not both probable and reasonably estimable, the Company does not record a loss accrual. However, if the loss (or an additional loss in excess of any prior accrual) is at least reasonably possible and material, then the Company would disclose an estimate of the possible loss or range of loss, if such estimate can be made, or disclose that an estimate cannot be made. The assessment of whether a loss is probable or a reasonable possibility, and whether the loss or a range of loss is estimable, involves a series of complex judgments about future events. Even if a loss is reasonably possible, the Company may not be able to estimate a range of possible loss, particularly where (i) the damages sought are substantial or indeterminate, (ii) the proceedings are in the early stages, or (iii) the matters involve novel or unsettled legal theories or a large number of parties. In such cases, there is considerable uncertainty regarding the ultimate resolution of such matters, including the amount of any possible loss, fine or penalty. However, an adverse resolution of one or more of such matters could have a material adverse effect on the Company's results of operations in a particular quarter or fiscal year. As of December 31, 2024, the total estimated litigation expense accrual included in the “Other accrued liabilities” in the condensed consolidated balance sheets was $23.5 million for various ongoing litigation matters with probable losses that can be reasonably estimated.

Orckit IP, LLC v. Extreme Networks, Inc., Extreme Networks Ireland Ltd., and Extreme Networks GmbH

 

On February 1, 2018, Orckit IP, LLC (“Orckit”) filed a patent infringement lawsuit against the Company and its Irish and German subsidiaries in the District Court in Dusseldorf, Germany. The lawsuit alleged direct and indirect infringement of the German portion of a patent (“EP ‘364”) based on the offer, distribution, use, possession and/or importation into Germany of certain network switches that are equipped with the ExtremeXOS operating system. On October 21, 2024, the District Court in Dusseldorf, Germany confirmed the withdrawal by Orckit of its complaint, thus concluding this action.

On April 23, 2019, Orckit filed an extension of the patent infringement complaint against the Company and its Irish and German subsidiaries in the District Court in Dusseldorf, Germany. With this extension, Orckit alleged infringement of the German portion of a second patent (“EP ‘077”) based on the offer, distribution, use, possession and/or importation into Germany of certain network switches that the Company no longer sells in Germany. On December 23, 2024, Orckit withdrew this infringement complaint.

The Company filed a nullity action related to the EP ‘364 patent on May 3, 2018, and one related to the EP ‘077 patent on October 31, 2019, both in the Federal Patent Court in Munich. The Federal Patent Court in Munich found the EP ‘364 patent to be valid and the Company filed an appeal, which was dismissed on October 12, 2023. On December 10, 2024, the Federal Court of Justice ruled that the ‘077 patent is invalid.

As a result of the withdrawals and the invalidity ruling, these cases are now concluded in the Company’s favor.

SNMP Research, Inc. and SNMP Research International, Inc. v. Broadcom Inc., Brocade Communications Systems LLC, and Extreme Networks, Inc.

On October 26, 2020, SNMP Research, Inc. and SNMP Research International, Inc. (collectively, “SNMP”) filed a lawsuit against the Company in the Eastern District of Tennessee for copyright infringement, alleging that the Company was not properly licensed to use its software. SNMP is seeking actual damages and profits attributed to the infringement, as well as equitable relief. The Company filed a motion to transfer the case to the Northern District of California. The motion to dismiss was denied in part and denied without

prejudice in part. On March 2, 2023, SNMP filed an amended complaint adding claims against Extreme on additional products for copyright infringement, breach of contract, and fraud. The trial is set for August 5, 2025.

Mala Technologies Ltd. v. Extreme Networks GmbH, Extreme Networks Ireland Ops Ltd., and Extreme Networks, Inc.

On April 15, 2021, Mala Technologies Ltd. (“Mala”) filed a patent infringement lawsuit against the Company and its Irish and German subsidiaries in the District Court in Dusseldorf, Germany. The lawsuit alleges indirect infringement of the German portion of a patent (“EP ‘498”) based on the offer and sale in Germany of certain network switches equipped with the ExtremeXOS operating system. Mala is seeking injunctive relief, accounting, and an unspecified declaration of liability for damages and costs of the lawsuit. On December 20, 2022, the trial court ruled that the Company did not infringe the EP ‘498 patent and dismissed Mala’s complaint entirely. Mala has filed an appeal. On December 9, 2024, the Higher Regional Court stayed the matter until the nullity action has been finally decided.

The Company filed a nullity complaint against EP ‘498 with the German Federal Patent Court on September 24, 2021. The German Federal Patent Court issued a decision finding that the patent was invalid on November 20, 2024. It is not yet known if Mala will appeal the ruling of the German Federal Patent Court.

Steamfitters Local 449 Pension & Retirement Security Funds v. Extreme Networks, Inc., et al.

On August 13, 2024, a putative securities class action (the “Class Action”) was filed in the United States District Court for the Northern District of California captioned Steamfitters Local 449 Pension & Retirement Security Funds v. Extreme Networks, Inc., et al., Case No. 5:24-cv-05102-TLT, naming the Company and certain of its current and former executive officers as defendants. The lawsuit is purportedly brought on behalf of purchasers of Extreme Networks securities between July 27, 2022 and January 30, 2024 (the “Class Period”). The complaint alleges claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, based on allegedly false and misleading statements about the Company's business and prospects during the Class Period. The lawsuit seeks unspecified damages. On December 30, 2024, the Court selected Oklahoma Fire/Police and Oakland County Employees as the lead plaintiffs. Trial has been scheduled for March 20, 2027.

Indemnification Obligations

Subject to certain limitations, the Company may be obligated to indemnify its current and former directors, officers, and employees. These obligations arise under the terms of its certificate of incorporation, its bylaws, applicable contracts, and applicable law. The obligation to indemnify, where applicable, generally means that the Company is required to pay or reimburse, and in certain circumstances the Company has paid or reimbursed, the individuals’ reasonable legal expenses and possible damages and other liabilities incurred in connection with certain legal matters. The Company also procures Directors and Officers liability insurance to help cover its defense and/or indemnification costs, although its ability to recover such costs through insurance is uncertain. While it is not possible to estimate the maximum potential amount that could be owed under these governing documents and agreements due to the Company’s limited history with prior indemnification claims, indemnification (including defense) costs could, in the future, have a material adverse effect on the Company’s consolidated financial position, results of operations and cash flows.
v3.24.4
Stockholders' Equity
 6 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Stockholders' Equity
9.
Stockholders’ Equity

Equity Incentive Plan

The Compensation Committee of the Board unanimously approved an amendment to the Extreme Networks, Inc. Amended and Restated 2013 Equity Incentive Plan (the “2013 Plan”) on September 14, 2024 to increase the maximum number of available shares by 2.3 million shares, which was approved by the stockholders of the Company at the annual meeting of stockholders held on November 14, 2024.

Common Stock Repurchases

On May 18, 2022, the Company announced the Board had authorized management to repurchase up to $200.0 million shares of the Company’s common stock over a three-year period commencing July 1, 2022 (as amended, the “2022 Repurchase Program”). Initially, under the 2022 Repurchase Program, a maximum of $25.0 million of shares was authorized to be repurchased in any quarter; however, on November 17, 2022, the Board increased the authorization to repurchase shares in any quarter from up to $25.0 million of shares per quarter to up to $50.0 million of shares per quarter. Purchases may be made from time to time in the open market or pursuant to a 10b5-1 plan.

During the three and six months ended December 31, 2024, the Company did not repurchase any shares of its common stock. During the three months ended December 31, 2023, the Company repurchased 1,485,005 shares of its common stock on the open market at a total cost of $25.0 million with an average price of $16.81 per share. During the six months ended December 31, 2023, the Company repurchased a total of 2,365,220 shares of its common stock on the open market at a total cost of $49.9 million with an average price of $21.08 per share. As of December 31, 2024, approximately $50.3 million remains available for share repurchases under the 2022 Repurchase Program.

As a provision of the Inflation Reduction Act enacted in the U.S., the Company is subject to an excise tax on corporate stock repurchases, which is assessed as one percent of the fair market value of net corporate stock repurchases after December 31, 2022. The Company had no excise tax liability for fiscal 2024 and expects the impact of the excise tax on net corporate stock repurchases will not be material for fiscal 2025.
v3.24.4
Employee Benefit Plans
 6 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Employee Benefit Plans
10.
Employee Benefit Plans

Shares Reserved for Issuance

The Company had the following reserved shares of common stock for future issuance as of the dates noted (in thousands):

 

 

December 31,
2024

 

 

June 30,
2024

 

2013 Equity Incentive Plan shares available for grant

 

 

11,092

 

 

 

13,414

 

Employee stock options and awards outstanding

 

 

8,619

 

 

 

7,562

 

2014 Employee Stock Purchase Plan

 

 

6,662

 

 

 

7,130

 

Total shares reserved for issuance

 

 

26,373

 

 

 

28,106

 

Share-based Compensation Expense

Share-based compensation expense recognized in the condensed consolidated financial statements by line-item caption is as follows (in thousands):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

December 31,
2024

 

 

December 31,
2023

 

Cost of product revenues

 

$

680

 

 

$

464

 

 

$

1,298

 

 

$

947

 

Cost of subscription and support revenues

 

 

798

 

 

 

749

 

 

 

1,487

 

 

 

1,615

 

Research and development

 

 

4,467

 

 

 

4,435

 

 

 

8,680

 

 

 

8,812

 

Sales and marketing

 

 

7,596

 

 

 

7,535

 

 

 

14,478

 

 

 

14,523

 

General and administrative

 

 

7,911

 

 

 

7,774

 

 

 

15,276

 

 

 

14,979

 

Total share-based compensation expense

 

$

21,452

 

 

$

20,957

 

 

$

41,219

 

 

$

40,876

 

 

Stock Options

 

The following table summarizes stock option activity for the six months ended December 31, 2024 (in thousands, except per share amount and contractual term):

 

 

Number of Shares

 

 

Weighted-Average Exercise Price Per Share

 

 

Weighted-Average Remaining Contractual Term (years)

 

 

Aggregate Intrinsic Value

 

Options outstanding at June 30, 2024

 

 

1,073

 

 

$

6.58

 

 

 

1.75

 

 

$

7,376

 

Granted

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Exercised

 

 

(195

)

 

 

6.40

 

 

 

 

 

 

 

Canceled

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Options outstanding at December 31, 2024

 

 

878

 

 

$

6.62

 

 

 

1.39

 

 

$

8,886

 

Vested and expected to vest at December 31, 2024

 

 

878

 

 

$

6.62

 

 

 

1.39

 

 

$

8,886

 

Exercisable at December 31, 2024

 

 

878

 

 

$

6.62

 

 

 

1.39

 

 

$

8,886

 

 

The fair value of each stock option grant under the 2013 Plan is estimated on the date of grant using the Black-Scholes-Merton option valuation model. The expected term of options granted is derived from historical data on employee exercise and post-vesting employment termination behavior. The risk-free interest rate is based upon the estimated life of the option and the U.S. Treasury yield

curve in effect at the time of grant. Expected volatility is based on the historical volatility on the Company’s stock. There were no stock options granted during the three and six months ended December 31, 2024 and 2023.

Stock Awards

Stock awards may be granted under the 2013 Plan on terms approved by the Compensation Committee of the Board. Stock awards generally provide for the issuance of restricted stock units (“RSUs”) including performance-condition or market-condition RSUs which vest over a fixed period of time or based upon the satisfaction of certain performance criteria or market conditions. The Company recognizes compensation expense on the stock awards over the vesting period based on the awards’ fair value as of the date of grant. The Company does not estimate forfeitures, but accounts for them as incurred.

The following table summarizes stock award activity for the six months ended December 31, 2024 (in thousands, except grant date fair value):

 

 

 

Number of Shares

 

 

Weighted- Average Grant Date Fair Value

 

 

Aggregate Fair Value

 

Non-vested stock awards outstanding at June 30, 2024

 

 

6,489

 

 

$

22.65

 

 

 

 

Granted

 

 

4,191

 

 

 

15.82

 

 

 

 

Released

 

 

(2,662

)

 

 

20.47

 

 

 

Canceled

 

 

(277

)

 

 

21.62

 

 

 

 

Non-vested stock awards outstanding at December 31, 2024

 

 

7,741

 

 

$

19.83

 

 

 

 

Stock awards expected to vest at December 31, 2024

 

 

7,741

 

 

$

19.83

 

 

$

153,538

 

The RSUs granted under the 2013 Plan vest over a period of time, generally one to three years, and are subject to participant's continued service to the Company. The stock awards granted during the six months ended December 31, 2024 included 1.3 million RSUs including the market condition awards discussed below to the named executive officers and outside directors.

Market Condition Awards

During the six months ended December 31, 2024 and 2023, the Compensation Committee of the Board granted 0.9 million and 0.8 million RSUs, respectively, with vesting based on market conditions (“MSU”) to certain of the Company’s employees. The MSUs granted during the six months ended December 31, 2024 were subject to total stockholder return (“TSR”). The MSUs granted during the six months ended December 31, 2023 included 0.5 million MSUs subject to TSR and 0.3 million MSUs subject to certain stock price targets.

The TSR MSUs vest based on the Company’s TSR relative to the TSR of the Russell 2000 Index (“Index”). The MSU award represents the right to receive a target number of shares of common stock of up to 150% of the original grant, as indicated in the table below. The MSUs vest based on the Company’s TSR relative to the TSR of the Index over performance periods of three years from the grant date, subject to the grantees’ continued service through the certification of performance.

Level

Relative TSR

Shares Vested

Below Threshold

TSR is less than the Index by more than 37.5 percentage points

0%

Threshold

TSR is less than the Index by 37.5 percentage points

25%

Target

TSR equals the Index

100%

Maximum

TSR is greater than the Index by 25 percentage points or more

150%

TSR is calculated based on the average closing price for the 30-trading days prior to the beginning and end of the performance periods. Performance is measured based on three periods, with the ability for up to one-third of target shares to vest after years one and two and the ability for up to the maximum of the full award to vest based on the full three-year TSR less any shares vested based on one- and two-year periods. Linear interpolation is used to determine the number of shares vested for achievement between target levels.

The grant date fair value of each MSU was determined using the Monte Carlo simulation model. The weighted-average grant-date fair value of the TSR MSUs granted during the six months ended December 31, 2024 was $17.22 per share. The assumptions used in the Monte Carlo simulation included the expected volatility of 48%, risk-free interest rate of 3.86%, no expected dividend yield, expected term of three years and possible future stock prices over the performance period based on the historical stock and market prices. The weighted-average grant-date fair value of the TSR MSUs granted during the six months ended December 31, 2023 was $34.09 per share. The assumptions used in the Monte Carlo simulation included the expected volatility of 50%, risk-free interest rate of 4.48%, no expected dividend yield, expected term of three years, and possible future stock prices over the performance period based on the historical stock and market prices. The Company recognizes the expense related to these MSUs on a graded-vesting method over the estimated term.

The stock price target MSUs vest upon the achievement of a certain stock price target over the defined performance period. The stock price target shall be deemed as achieved if the average closing stock price over any 30 consecutive trading days during the period from grant date through the third anniversary of the grant date equals or exceeds the price target of $41.38 for the initial performance period. Upon satisfaction of the initial stock price target, 50% of the target shares will vest on the third anniversary of the grant date and the remaining 50% will vest on the fourth anniversary of the grant date, subject to employees’ continued service through the applicable vesting dates. If the units are not earned on the last day of initial performance period, the units will remain outstanding and be eligible to be earned if the average closing stock price over any 30 consecutive trading days equals or exceeds the price target of $46.96.

The grant date fair value of these stock price target MSUs was determined using the Monte Carlo simulation model. The weighted-average grant-date fair value of these stock price target MSUs granted during the six months ended December 31, 2024 was $28.80 per share. The assumptions used in the Monte Carlo simulation included the expected volatility of 63%, risk-free interest rate of 4.45%, no expected dividend yield, expected term of three years based on possible future stock prices over the performance period based on the historical stock prices. The Company recognizes the expense related to these MSUs on a graded-vesting method over the estimated term.

On February 15, 2024 the Company modified certain terms and conditions of the stock price target MSU's for certain employees. Under the modified agreement, the stock price target over the initial and fourth year performance periods were revised to $23.00 and $26.00, respectively. All other contractual terms remained unchanged. The incremental compensation cost related to the modification was not material and will be recognized ratably over the remaining requisite service period.

Employee Stock Purchase Plan

The fair value of each share purchase option under the ESPP is estimated on the date of grant using the Black-Scholes-Merton option valuation model with the weighted average assumptions noted in the following table. The expected term of the ESPP represents the term of the offering period of each option. The risk-free interest rate is based on the estimated life and on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on the historical volatility on the Company’s common stock.

There were 0.5 million and 0.5 million shares issued under the ESPP during the six months ended December 31, 2024 and 2023, respectively. The following assumptions were used to determine the grant-date fair values of the ESPP shares during the following periods:

 

 

 

 

Employee Stock Purchase Plan

 

 

 

 

 

Six Months Ended

 

 

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

Expected term

 

 

0.5 years

 

 

0.5 years

 

 

Risk-free interest rate

 

 

 

5.04

%

 

 

5.54

%

 

Volatility

 

 

 

36

%

 

 

42

%

 

Dividend yield

 

 

 

—

%

 

 

—

%

 

 

The weighted-average grant-date fair value of shares under the ESPP during the six months ended December 31, 2024 and 2023 was $3.74 and $8.09 per share, respectively.

v3.24.4
Information about Segments and Geographic Areas
 6 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Information about Segments and Geographic Areas
11.
Information about Segments and Geographic Areas

The Company operates in one segment, the development and marketing of network infrastructure equipment and related software. The Company conducts business globally and is managed geographically. Revenues are attributed to a geographical area based on the billing address of customers. The Company operates in three geographical areas: Americas, EMEA, and APAC. The Company’s chief operating decision maker, who is its Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance.

See Note 3, Revenues, for the Company’s revenues by geographic region.

The Company’s long-lived assets are attributed to the geographic regions as follows (in thousands):

 

 

 

December 31,
2024

 

 

June 30,
2024

 

Americas

 

$

142,172

 

 

$

136,745

 

EMEA

 

 

41,064

 

 

 

33,715

 

APAC

 

 

10,438

 

 

 

11,499

 

Total long-lived assets

 

$

193,674

 

 

$

181,959

 
v3.24.4
Derivatives and Hedging
 6 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging
12.
Derivatives and Hedging

Foreign Exchange Forward Contracts

The Company uses derivative financial instruments to manage exposures to foreign currency risk that may or may not be designated as hedging instruments. The Company’s objective for holding derivatives is to use the most effective methods to minimize the impact of these exposures. The Company does not enter into derivatives for speculative or trading purposes. The Company enters into foreign exchange forward contracts to attempt to mitigate the effect of gains and losses generated by foreign currency transactions related to certain operating expenses and re-measurement of certain assets and liabilities denominated in foreign currencies.

For foreign exchange forward contracts not designated as hedging instruments, the fair value of the Company’s derivatives in a gain position are recorded in “Prepaid expenses and other current assets” and derivatives in a loss position are recorded in “Other accrued liabilities” in the accompanying condensed consolidated balance sheets. Changes in the fair value of derivatives are recorded in “Other income (expense), net” in the accompanying condensed consolidated statements of operations. As of December 31, 2024 and June 30, 2024, foreign exchange forward contracts not designated as hedging instruments had a total notional principal amount of $55.0 million and $31.3 million, respectively. During the three months ended December 31, 2024 and 2023, the net gains and losses recorded in the condensed consolidated statement of operations from these contracts were net losses of $2.1 million and net gains of $0.4 million, respectively. During the six months ended December 31, 2024 and 2023 the net gains and losses recorded in the condensed consolidated statement of operations were net losses of $1.3 million and net gains of $0.3 million, respectively. Changes in the fair value of these foreign exchange forward contracts are offset largely by remeasurement of the underlying assets and liabilities.

There were no foreign exchange forward contracts that were designated as hedging instruments as of December 31, 2024 or June 30, 2024.

For the three months ended December 31, 2024 and 2023, the Company recognized foreign currency net gains of $2.8 million and foreign currency net losses of $0.7 million, respectively, and for the six months ended December 31, 2024 and 2023, the Company recognized foreign currency net gains of $1.4 million and foreign currency net losses of $0.3 million, respectively, related to the change in fair value of foreign currency denominated assets and liabilities.
v3.24.4
Restructuring and Related Charges
 6 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring and Related Charges
13.
Restructuring and Related Charges

The Company recorded $1.0 million and $9.2 million of restructuring and related charges during the three months ended December 31, 2024 and 2023, respectively. The Company recorded $2.3 million and $11.9 million of restructuring and related charges during the six months ended December 31, 2024 and 2023, respectively. These charges primarily included severance and benefits costs and professional fees related to the restructuring plans executed in prior years.

During the third quarter of fiscal 2024, the Company executed a global reduction-in-force plan targeted towards the reorganization of the Company's research and development and sales and marketing functions to align the Company's workforce with its strategic priorities and to focus on specific geographies and industry segments with higher growth opportunities (the “Q3 2024 Plan”). During the three and six months ended December 31, 2024, the Company recorded restructuring charges of $0.9 million and $1.5 million, respectively, related to the Q3 2024 Plan, which primarily consisted of additional severance and benefits expenses, legal and consulting fees.

During the second quarter of fiscal 2024, the Company executed a global reduction-in-force plan to rebalance its workforce to create greater efficiency and improve execution, in alignment with the Company's business and strategic priorities, while reducing its ongoing operating expenses to address reduced revenue and macro-economic conditions (the “Q2 2024 Plan”). During the three and six months ended December 31, 2024, the Company recorded restructuring charges of less than $0.1 million and $0.6 million related to the Q2 2024 Plan, which primarily consisted of additional severance and benefits expenses, legal fees and consulting fees. During the three months ended December 31, 2023, the Company recorded restructuring charges of $8.8 million related to the Q2 2024 Plan, which primarily consisted of severance and benefits expenses, legal and consulting fees.

Through December 31, 2024, the Company has incurred $29.1 million in restructuring charges under the Q2 2024 Plan and Q3 2024 Plan which primarily related to severance and benefits costs. The Company expects to complete these ongoing restructuring plans by the end of fiscal year 2025 and expects to incur approximately $1.3 million in additional charges for the Q2 2024 Plan and the Q3 2024 Plan.

During the third quarter of fiscal 2023, the Company initiated a restructuring plan to transform its business infrastructure and reduce its facilities footprint and the facilities related charges (the “2023 Plan”). As part of this project, the Company is moved engineering labs from its San Jose, California location to its Salem, New Hampshire location. This move is expected to help reduce the cost of operating the Company's labs. During the six months ended December 31, 2024, the Company recorded restructuring charges of $0.1 million related to the 2023 Plan. The Company expects to complete the 2023 Plan by the end of fiscal year 2025 and expects to incur charges of $1.6 million throughout this period, primarily for asset disposals and other fees. Through December 31, 2024, the

Company has incurred $6.6 million of restructuring charges under the 2023 Plan, which primarily consisted of $5.9 million in accelerated depreciation on lab leasehold improvements and $0.7 million in other charges related to moving expenses and asset disposal costs.

During the first quarter of fiscal 2024, the Company initiated a reduction-in-force plan to rebalance the workforce to create greater efficiency and improve execution in alignment with the Company's business and strategic priorities (the “Q1 2024 Plan”). It consisted primarily of workforce reduction to drive productivity in research and development, sales and marketing and provide efficiency across operations and general and administrative functions. During the three and six months ended December 31, 2023, the Company incurred charges of $0.2 million and $2.9 million, respectively related to the Q1 2024 Plan. As of June 30, 2024, the plan was completed.

Restructuring liabilities are recorded in “Other accrued liabilities” in the accompanying condensed consolidated balance sheets. As of December 31, 2024 and 2023, the restructuring liability was $3.4 million and $6.2 million, respectively related to these restructuring plans.

The following table summarizes the activity related to the Company’s restructuring and related liabilities during the following periods (in thousands):

 

 

Three Months Ended

 

Six Months Ended

 

 

 

December 31,
2024

 

 

December 31,
2023

 

December 31,
2024

 

 

December 31,
2023

 

Balance at beginning of period

 

$

4,393

 

 

$

925

 

$

11,469

 

 

$

—

 

Period charges

 

 

1,134

 

 

 

9,412

 

 

2,707

 

 

 

12,188

 

Period reversals

 

 

(97

)

 

 

(173

)

 

(393

)

 

 

(258

)

Period payments

 

 

(2,032

)

 

 

(3,972

)

 

(10,385

)

 

 

(5,738

)

Balance at end of period

 

$

3,398

 

 

$

6,192

 

$

3,398

 

 

$

6,192

 
v3.24.4
Income Taxes
 6 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
14.
Income Taxes

For the three months ended December 31, 2024 and 2023, the Company recorded an income tax provision of $2.6 million and $3.1 million, respectively. For the six months ended December 31, 2024 and 2023, the Company recorded an income tax provision of $4.1 million and $7.6 million, respectively.

The income tax provisions for the three and six months ended December 31, 2024 and 2023, consisted of (1) taxes on the income of the Company’s foreign subsidiaries, (2) state taxes in jurisdictions where the Company has no remaining state net operating losses (“NOLs”), (3) foreign withholding taxes, and (4) tax expense associated with the establishment of a U.S. deferred tax liability for amortizable goodwill resulting from the acquisition of Enterasys Networks, Inc., the wireless local area network business from Zebra Technologies Corporation, the Campus Fabric Business from Avaya and the Data Center Business from Brocade. In addition, the income tax provision for the three and six months ended December 31, 2024, includes US Federal income tax expense of $1.4 million and $0.2 million, respectively. The interim income tax provisions for the three and six months ended December 31, 2024 and 2023 were calculated using the discrete effective tax rate method as allowed by ASC 740-270-30-18, Income Taxes – Interim Reporting. The discrete method is applied when the application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. The discrete method treats the year-to-date period as if it was the annual period and determines the income tax expense or benefit on that basis. The Company believes that, at this time, the use of this discrete method is more appropriate than the annual effective tax rate method as (i) the estimated annual effective tax rate method is not reliable due to the high degree of uncertainty in estimating annual pretax earnings on a jurisdictional basis and (ii) the Company’s ongoing assessment that the recoverability of certain U.S. and Irish deferred tax assets is not more likely than not.

The Company has provided a full valuation allowance against all of its U.S. federal and state deferred tax assets as well as a portion of the deferred tax assets in Ireland. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, the Company considers all available positive and negative evidence to determine whether it is “more likely than not” that deferred tax assets are recoverable including past operating results, estimates of future taxable income, changes to enacted tax laws, and the feasibility of tax planning strategies; such assessment is required on a jurisdiction-by-jurisdiction basis. The Company's inconsistent earnings in recent periods, including historical losses, tax attributes expiring unutilized in recent years and the cyclical nature of the Company's business provides sufficient negative evidence that require a full valuation allowance against its U.S. federal and state net deferred tax assets as well as a portion of the deferred tax assets in Ireland. These valuation allowances will be evaluated periodically and can be reversed partially or in whole if business results and the economic environment have sufficiently improved to support realization of some or all of the Company's deferred tax assets. In the event the Company changes its determination as to the amount of deferred tax assets that can be realized, it will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made.

The Company had $18.2 million of unrecognized tax benefits as of December 31, 2024. If fully recognized in the future, $0.2 million would impact the effective tax rate and $18.0 million would result in adjustments to deferred tax assets and corresponding adjustments to the valuation allowance with no impact to the effective tax rate. The Company does not anticipate any events to occur

during the next twelve months that would materially reduce the unrealized tax benefit as currently stated in the Company’s condensed consolidated balance sheets.

The Company’s policy is to accrue interest and penalties related to the underpayment of income taxes as a component of tax expense in the accompanying condensed consolidated statements of operations.

In general, the Company’s U.S. federal income tax returns are subject to examination by tax authorities for fiscal years 2004 forward due to NOLs and the Company’s state income tax returns are subject to examination for fiscal years 2005 and forward due to NOLs.
v3.24.4
Net Income (Loss) Per Share
 6 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share
15.
Net Income (Loss) Per Share

Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares of common stock used in the basic net income (loss) per share calculation plus the dilutive effect of shares subject to repurchase, options and unvested RSUs.

The following table presents the calculation of net income (loss) per share of basic and diluted (in thousands, except per share data):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

December 31,
2024

 

 

December 31,
2023

 

Net income (loss)

 

$

7,382

 

 

$

3,988

 

 

$

(3,122

)

 

$

32,664

 

Weighted-average shares used in per share calculation – basic

 

 

132,381

 

 

 

128,987

 

 

 

131,778

 

 

 

128,885

 

Options to purchase common stock

 

 

551

 

 

 

757

 

 

 

—

 

 

 

836

 

Restricted stock units

 

 

1,100

 

 

 

1,579

 

 

 

—

 

 

 

2,951

 

Employee Stock Purchase Plan shares

 

 

75

 

 

 

191

 

 

 

—

 

 

 

114

 

Weighted-average shares used in per share calculation – diluted

 

 

134,107

 

 

 

131,514

 

 

 

131,778

 

 

 

132,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share – basic and diluted

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share – basic

 

$

0.06

 

 

$

0.03

 

 

$

(0.02

)

 

$

0.25

 

Net income (loss) per share – diluted

 

$

0.06

 

 

$

0.03

 

 

$

(0.02

)

 

$

0.25

 

 

The following securities were excluded from the computation of net income (loss) per diluted share of common stock for the periods presented as their effect would have been anti-dilutive (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

December 31,
2024

 

 

December 31,
2023

 

Options to purchase common stock

 

 

—

 

 

 

—

 

 

 

997

 

 

 

—

 

Restricted stock units

 

 

1,295

 

 

 

2,336

 

 

 

5,638

 

 

 

1,623

 

Employee Stock Purchase Plan shares

 

 

695

 

 

 

560

 

 

 

545

 

 

 

445

 

Total shares excluded

 

 

1,990

 

 

 

2,896

 

 

 

7,180

 

 

 

2,068

 
v3.24.4
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Fiscal Year

Fiscal Year

The Company uses a fiscal calendar year ending on June 30. All references herein to “fiscal 2025” represent the fiscal year ending June 30, 2025. All references herein to “fiscal 2024” represent the fiscal year ended June 30, 2024.
Principles of Consolidation

Principles of Consolidation

The unaudited condensed consolidated financial statements include the accounts of Extreme and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated.

The Company predominantly uses the United States Dollar as its functional currency. The functional currency for certain of its foreign subsidiaries is the local currency. For those subsidiaries that operate in a local functional currency environment, all assets and liabilities are translated to United States Dollars at current month end rates of exchange and revenues, and expenses are translated using the monthly average rate.
Accounting Estimates

Accounting Estimates

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates.
Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

There were no recently adopted accounting standards which would have a material effect on the Company's condensed consolidated financial statements and accompanying disclosures.

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses to improve disclosures about public business entities’ expenses and to provide more detailed information around the types of expenses included in commonly presented expense captions. Additionally, in January 2025 the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods for fiscal years beginning after December 15, 2027, and can be applied on a prospective basis or on a retrospective basis to all periods presented. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2024-03 and ASU 2025-01 on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures to enhance income tax disclosures primarily through changes in the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 on a prospective basis. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2023-09 on its consolidated financial statements and related disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2023-07 on its consolidated financial statements and related disclosures.
Revenue Recognition

Revenue Recognition

Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Certain of the Company’s contracts have multiple performance obligations, as the promise to transfer individual goods or services is separately identifiable from other promises in the contracts and, therefore, is distinct. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on its relative standalone selling price. The stand-alone selling prices are determined based on the prices at which the Company separately sells these products. For items that are not sold separately, the Company estimates the stand-alone selling prices using other observable inputs.

The Company’s performance obligations are satisfied at a point in time or over time as the customer receives and consumes the benefits provided. Substantially all of the Company’s product sales revenues are recognized at a point in time. Substantially all of the Company’s subscription and support revenues are recognized over time. For revenues recognized over time, the Company primarily uses an input measure, days elapsed, to measure progress.

As of December 31, 2024, the Company had $589.5 million of remaining performance obligations, which primarily comprised of deferred SaaS subscription and deferred support revenues. The Company expects to recognize approximately 31% of its deferred revenue as revenue in the remainder of fiscal 2025, an additional 34% in fiscal 2026, and the remaining 35% of the balance thereafter.

Contract Balances. The timing of revenue recognition, billings and cash collections results in billed accounts receivable and deferred revenue in the condensed consolidated balance sheets. Services provided under renewable SaaS subscription and support arrangements of the Company are billed in accordance with agreed-upon contractual terms, which are either billed fully at the inception of contract or at periodic intervals (e.g., quarterly or annually). The Company generally receives payments from its customers in advance of services being provided, resulting in deferred revenues. These liabilities are reported on the condensed consolidated balance sheets on a contract-by-contract basis at the end of each reporting period.

Revenue recognized for the three months ended December 31, 2024 and 2023 that was included in the deferred revenue balance at the beginning of each period was $101.3 million and $105.7 million, respectively. Revenue recognized for the six months ended December 31, 2024 and 2023 that was included in the deferred revenue balance at the beginning of each period was $183.3 million and $172.0 million, respectively.

Contract Costs. The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. Management expects that commission fees paid to sales representatives as a result of obtaining subscription and support contracts and contract renewals are recoverable and therefore the Company’s condensed consolidated balance sheets included capitalized balances in the amount of $24.7 million as of December 31, 2024 and June 30, 2024. Capitalized commissions are included within other assets in the condensed consolidated balance sheets. Capitalized commission fees are amortized on a straight-line basis over the average period of service contracts of approximately three years, and are included in “Sales and marketing” in the accompanying condensed consolidated statements of operations. Amortization recognized during the three months ended December 31, 2024 and 2023 was $3.1 million and $2.7 million, respectively. Amortization recognized during the six months ended December 31, 2024 and 2023 was $6.1 million and $5.2 million, respectively.

Estimated Variable Consideration. There were no material changes in the current period to the estimated variable consideration for performance obligations, which were satisfied or partially satisfied during previous periods.

Revenues by Geography

The Company operates in three geographic regions: Americas, EMEA (Europe, Middle East and Africa) and APAC (Asia Pacific). The following table sets forth the Company’s net revenues disaggregated by geographic region (in thousands):

 

Three Months Ended

 

Six Months Ended

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

December 31,
2024

 

 

December 31,
2023

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

119,678

 

 

$

149,549

 

 

 

272,931

 

 

$

332,301

 

Other

 

 

11,710

 

 

 

13,086

 

 

 

23,892

 

 

 

25,983

 

Total Americas

 

 

131,388

 

 

 

162,635

 

 

 

296,823

 

 

 

358,284

 

EMEA

 

 

128,257

 

 

 

110,605

 

 

 

213,175

 

 

 

254,208

 

APAC

 

 

19,710

 

 

 

23,137

 

 

 

38,561

 

 

 

37,022

 

Total net revenues

 

$

279,355

 

 

$

296,377

 

 

$

548,559

 

 

$

649,514

 

 

Geographic Concentrations

 

For the three and six months ended December 31, 2024, the Company generated 15% and 11% of its net revenues from the Netherlands, respectively. For the three months ended December 31, 2023, the Company generated 10% of its net revenues from Germany and for the six months ended December 31, 2023, the Company generated approximately 11% of its net revenues from the Netherlands. No other foreign country accounted for 10% or more of the Company's net revenues for the three and six months ended December 31, 2024 and 2023.
Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents.

The following table summarizes the Company's cash and cash equivalents (in thousands):

 

 

December 31,
2024

 

 

June 30,
2024

 

Cash

 

$

170,204

 

 

$

153,483

 

Cash equivalents

 

 

118

 

 

 

3,216

 

Total cash and cash equivalents

 

$

170,322

 

 

$

156,699

 
Inventories

Inventories

Inventories are stated at the lower of cost, or net realizable value. Extreme uses a standard cost methodology to determine the cost basis for its inventories. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. The Company adjusts the carrying value of its inventory when conditions exist that suggest that inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Any previously written down or obsolete inventory subsequently sold has not had a material impact on gross margin for any of the periods presented.

The following table summarizes the Company's inventory by category (in thousands):

 

 

December 31,
2024

 

 

June 30,
2024

 

Finished goods

 

$

84,002

 

 

$

115,813

 

Raw materials

 

 

48,276

 

 

 

25,219

 

Total inventories

 

$

132,278

 

 

$

141,032

 
Property and Equipment, Net

Property and Equipment, Net

The following table summarizes the Company's property and equipment, net by category (in thousands):

 

 

December 31,
2024

 

 

June 30,
2024

 

Computers and equipment

 

$

80,790

 

 

$

77,224

 

Software

 

 

55,805

 

 

 

60,717

 

Office equipment, furniture and fixtures

 

 

8,103

 

 

 

8,134

 

Leasehold improvements

 

 

48,128

 

 

 

47,880

 

Total property and equipment

 

 

192,826

 

 

 

193,955

 

Less: accumulated depreciation and amortization

 

 

(156,091

)

 

 

(150,211

)

Property and equipment, net

 

$

36,735

 

 

$

43,744

 
Deferred Revenue

Deferred Revenue

Deferred revenue represents invoiced amounts for deferred maintenance, SaaS, and other deferred revenue including professional services and training when the revenue recognition criteria have not been met.
Guarantees and Product Warranties

Guarantees and Product Warranties

The majority of the Company’s hardware products are shipped with either a one-year warranty or a limited lifetime warranty, and software products receive a 90-day warranty. Upon shipment of products to its customers, the Company estimates expenses for the cost to repair or replace products that may be returned under warranty and accrues a liability in cost of product revenues for this amount. The determination of the Company’s warranty requirements is based on actual historical experience with the product or product family, estimates of repair and replacement costs, and any product warranty problems that are identified after shipment. The Company estimates and adjusts these accruals at each balance sheet date in accordance with changes in these factors.

The following table summarizes the activity related to the Company’s product warranty liability during the following periods (in thousands):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

December 31,
2024

 

 

December 31,
2023

 

Balance at beginning of period

 

$

10,239

 

 

$

12,164

 

 

$

10,942

 

 

$

12,322

 

New warranties issued

 

 

3,045

 

 

 

2,777

 

 

 

5,531

 

 

 

6,451

 

Warranty expenditures

 

 

(3,248

)

 

 

(3,544

)

 

 

(6,437

)

 

 

(7,376

)

Balance at end of period

 

$

10,036

 

 

$

11,397

 

 

$

10,036

 

 

$

11,397

 

 

To facilitate sales of its products in the normal course of business, the Company indemnifies its resellers and end-user customers with respect to certain matters. The Company has agreed to hold the customer harmless against losses arising from intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. It is not possible to estimate the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on its operating results or financial position.
Concentrations

Concentrations

The Company may be subject to concentration of credit risk as a result of certain financial instruments consisting of accounts receivable. See Note 3, Revenues, for the Company’s accounts receivable concentration. The Company does not invest an amount exceeding 10% of its combined cash in the securities of any one obligor or maker, except for obligations of the United States government, obligations of United States government agencies, and money market accounts.

Earnings Per Share

Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares of common stock used in the basic net income (loss) per share calculation plus the dilutive effect of shares subject to repurchase, options and unvested RSUs.
v3.24.4
Revenues (Tables)
 6 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Revenues Disaggregated by Sales Channel and Geographic Region The following table sets forth the Company’s net revenues disaggregated by geographic region (in thousands):

 

Three Months Ended

 

Six Months Ended

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

December 31,
2024

 

 

December 31,
2023

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

119,678

 

 

$

149,549

 

 

 

272,931

 

 

$

332,301

 

Other

 

 

11,710

 

 

 

13,086

 

 

 

23,892

 

 

 

25,983

 

Total Americas

 

 

131,388

 

 

 

162,635

 

 

 

296,823

 

 

 

358,284

 

EMEA

 

 

128,257

 

 

 

110,605

 

 

 

213,175

 

 

 

254,208

 

APAC

 

 

19,710

 

 

 

23,137

 

 

 

38,561

 

 

 

37,022

 

Total net revenues

 

$

279,355

 

 

$

296,377

 

 

$

548,559

 

 

$

649,514

 

 

Geographic Concentrations

 

For the three and six months ended December 31, 2024, the Company generated 15% and 11% of its net revenues from the Netherlands, respectively.
Schedule of Customers Accounting for 10% or More of Net Revenues and Accounts Receivable Balance

The following table sets forth customers accounting for 10% or more of the Company’s net revenues for the periods indicated below:

 

 

Three Months Ended

 

Six Months Ended

 

 

December 31,
2024

 

December 31,
2023

 

December 31,
2024

 

December 31,
2023

Westcon Group, Inc.

 

22%

 

10%

 

18%

 

18%

TD Synnex Corporation

 

17%

 

24%

 

19%

 

21%

Jenne, Inc.

 

15%

 

23%

 

18%

 

25%

 

The following table sets forth major customers accounting for 10% or more of the Company’s net accounts receivable balance:

 

 

 

 

 

December 31,
2024

 

June 30,
2024

Jenne, Inc.

 

26%

 

64%

ScanSource, Inc.

 

*

 

11%

 * Less than 10% of accounts receivable

 

 

 

 
v3.24.4
Balance Sheet Accounts (Tables)
 6 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Cash and Cash Equivalents

The following table summarizes the Company's cash and cash equivalents (in thousands):

 

 

December 31,
2024

 

 

June 30,
2024

 

Cash

 

$

170,204

 

 

$

153,483

 

Cash equivalents

 

 

118

 

 

 

3,216

 

Total cash and cash equivalents

 

$

170,322

 

 

$

156,699

 
Components of Inventories

The following table summarizes the Company's inventory by category (in thousands):

 

 

December 31,
2024

 

 

June 30,
2024

 

Finished goods

 

$

84,002

 

 

$

115,813

 

Raw materials

 

 

48,276

 

 

 

25,219

 

Total inventories

 

$

132,278

 

 

$

141,032

 
Components of Property and Equipment

The following table summarizes the Company's property and equipment, net by category (in thousands):

 

 

December 31,
2024

 

 

June 30,
2024

 

Computers and equipment

 

$

80,790

 

 

$

77,224

 

Software

 

 

55,805

 

 

 

60,717

 

Office equipment, furniture and fixtures

 

 

8,103

 

 

 

8,134

 

Leasehold improvements

 

 

48,128

 

 

 

47,880

 

Total property and equipment

 

 

192,826

 

 

 

193,955

 

Less: accumulated depreciation and amortization

 

 

(156,091

)

 

 

(150,211

)

Property and equipment, net

 

$

36,735

 

 

$

43,744

 
Summary of Product Warranty Liability Activity

The following table summarizes the activity related to the Company’s product warranty liability during the following periods (in thousands):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

December 31,
2024

 

 

December 31,
2023

 

Balance at beginning of period

 

$

10,239

 

 

$

12,164

 

 

$

10,942

 

 

$

12,322

 

New warranties issued

 

 

3,045

 

 

 

2,777

 

 

 

5,531

 

 

 

6,451

 

Warranty expenditures

 

 

(3,248

)

 

 

(3,544

)

 

 

(6,437

)

 

 

(7,376

)

Balance at end of period

 

$

10,036

 

 

$

11,397

 

 

$

10,036

 

 

$

11,397

 
v3.24.4
Fair Value Measurements (Tables)
 6 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value for Financial Assets and Liabilities Measured on Recurring Basis

The following table presents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis (in thousands):

 

December 31, 2024

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

$

—

 

 

$

118

 

 

$

—

 

 

$

118

 

Foreign currency derivatives

 

 

—

 

 

 

36

 

 

 

—

 

 

 

36

 

Total assets measured at fair value

 

$

—

 

 

$

154

 

 

$

—

 

 

$

154

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivatives

 

$

—

 

 

$

342

 

 

$

—

 

 

$

342

 

Total liabilities measured at fair value

 

$

—

 

 

$

342

 

 

$

—

 

 

$

342

 

 

June 30, 2024

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

$

—

 

 

$

3,216

 

 

$

—

 

 

$

3,216

 

Foreign currency derivatives

 

 

—

 

 

 

18

 

 

 

—

 

 

 

18

 

Total assets measured at fair value

 

$

—

 

 

$

3,234

 

 

$

—

 

 

$

3,234

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivatives

 

$

—

 

 

$

71

 

 

$

—

 

 

$

71

 

Total liabilities measured at fair value

 

$

—

 

 

$

71

 

 

$

—

 

 

$

71

 
v3.24.4
Intangible Assets and Goodwill (Tables)
 6 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Components of Gross and Net Intangible Asset Balances

Intangible Assets

The following tables summarize the components of gross and net intangible assets (in thousands, except years):

 

 

Weighted Average

 

 

 

 

 

 

 

 

 

 

 

Remaining Amortization

 

Gross Carrying

 

 

Accumulated

 

 

Net Carrying

 

 

 

Period

 

Amount

 

 

Amortization

 

 

Amount

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

Developed technology

 

2.8 years

 

$

168,884

 

 

$

163,676

 

 

$

5,208

 

Customer relationships

 

1.5 years

 

 

64,626

 

 

 

61,756

 

 

 

2,870

 

Trade names

 

0.0 years

 

 

10,700

 

 

 

10,700

 

 

 

—

 

License agreements

 

2.0 years

 

 

1,282

 

 

 

1,139

 

 

 

143

 

Total intangible assets, net*

 

 

 

$

245,492

 

 

$

237,271

 

 

$

8,221

 

* The carrying amount of foreign intangible assets are affected by foreign currency translation

 

 

 

 

 

 

 

Weighted Average

 

 

 

 

 

 

 

 

 

 

 

Remaining Amortization

 

Gross Carrying

 

 

Accumulated

 

 

Net Carrying

 

 

 

Period

 

Amount

 

 

Amortization

 

 

Amount

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

Developed technology

 

3.0 years

 

$

169,247

 

 

$

162,708

 

 

$

6,539

 

Customer relationships

 

2.0 years

 

 

64,671

 

 

 

60,776

 

 

 

3,896

 

Trade names

 

0.0 years

 

 

10,700

 

 

 

10,700

 

 

 

—

 

License agreements

 

2.4 years

 

 

1,282

 

 

 

1,104

 

 

 

178

 

Total intangible assets, net*

 

 

$

245,901

 

 

$

235,288

 

 

$

10,613

 

* The carrying amount of foreign intangible assets are affected by foreign currency translation

 

 

 

 

Summary of Amortization Expense of Intangibles

The following table summarizes the amortization expense of intangible assets for the periods presented (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

December 31,
2024

 

 

December 31,
2023

 

Amortization of intangible assets in “Total cost of revenues”

 

$

606

 

 

$

611

 

 

$

1,230

 

 

$

2,044

 

Amortization of intangible assets in “Total operating expenses”

 

 

509

 

 

 

509

 

 

 

1,021

 

 

 

1,020

 

Total amortization expense

 

$

1,115

 

 

$

1,120

 

 

$

2,251

 

 

$

3,064

 
Schedule of Expected Amortization Expenses

The estimated future amortization expense to be recorded for each of the respective future fiscal years is as follows (in thousands):

 

 

Amount

 

For the fiscal year ending June 30:

 

 

 

2025 (the remainder of fiscal 2025)

 

$

2,183

 

2026

 

 

3,131

 

2027

 

 

1,402

 

2028

 

 

1,246

 

2029

 

 

259

 

Total

 

$

8,221

 
Summary of Goodwill

The Company had goodwill in the amount of $392.0 million and $393.7 million as of December 31, 2024 and June 30, 2024, respectively. The change in goodwill during the six months ended December 31, 2024 is due to foreign currency translation adjustments that are recorded as a component of accumulated other comprehensive loss.
v3.24.4
Debt (Tables)
 6 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Components of Debt

The Company’s debt is comprised of the following (in thousands):

 

 

December 31,
2024

 

 

June 30,
2024

 

Current portion of long-term debt:

 

 

 

 

 

 

Term Loan

 

$

12,500

 

 

$

10,000

 

Less: unamortized debt issuance costs

 

 

(752

)

 

 

(674

)

Current portion of long-term debt

 

$

11,748

 

 

$

9,326

 

 

 

 

 

 

 

 

Long-term debt, less current portion:

 

 

 

 

 

 

Term Loan

 

$

172,500

 

 

$

180,000

 

Less: unamortized debt issuance costs

 

 

(1,634

)

 

 

(1,735

)

Total long-term debt, less current portion

 

 

170,866

 

 

 

178,265

 

Total debt

 

$

182,614

 

 

$

187,591

 
v3.24.4
Employee Benefit Plans (Tables)
 6 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Common Stock Reserved for Future Issuance

The Company had the following reserved shares of common stock for future issuance as of the dates noted (in thousands):

 

 

December 31,
2024

 

 

June 30,
2024

 

2013 Equity Incentive Plan shares available for grant

 

 

11,092

 

 

 

13,414

 

Employee stock options and awards outstanding

 

 

8,619

 

 

 

7,562

 

2014 Employee Stock Purchase Plan

 

 

6,662

 

 

 

7,130

 

Total shares reserved for issuance

 

 

26,373

 

 

 

28,106

 
Schedule of Recognized Share-based Compensation Expense

Share-based compensation expense recognized in the condensed consolidated financial statements by line-item caption is as follows (in thousands):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

December 31,
2024

 

 

December 31,
2023

 

Cost of product revenues

 

$

680

 

 

$

464

 

 

$

1,298

 

 

$

947

 

Cost of subscription and support revenues

 

 

798

 

 

 

749

 

 

 

1,487

 

 

 

1,615

 

Research and development

 

 

4,467

 

 

 

4,435

 

 

 

8,680

 

 

 

8,812

 

Sales and marketing

 

 

7,596

 

 

 

7,535

 

 

 

14,478

 

 

 

14,523

 

General and administrative

 

 

7,911

 

 

 

7,774

 

 

 

15,276

 

 

 

14,979

 

Total share-based compensation expense

 

$

21,452

 

 

$

20,957

 

 

$

41,219

 

 

$

40,876

 
Summary of Stock Option Activity

The following table summarizes stock option activity for the six months ended December 31, 2024 (in thousands, except per share amount and contractual term):

 

 

Number of Shares

 

 

Weighted-Average Exercise Price Per Share

 

 

Weighted-Average Remaining Contractual Term (years)

 

 

Aggregate Intrinsic Value

 

Options outstanding at June 30, 2024

 

 

1,073

 

 

$

6.58

 

 

 

1.75

 

 

$

7,376

 

Granted

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Exercised

 

 

(195

)

 

 

6.40

 

 

 

 

 

 

 

Canceled

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Options outstanding at December 31, 2024

 

 

878

 

 

$

6.62

 

 

 

1.39

 

 

$

8,886

 

Vested and expected to vest at December 31, 2024

 

 

878

 

 

$

6.62

 

 

 

1.39

 

 

$

8,886

 

Exercisable at December 31, 2024

 

 

878

 

 

$

6.62

 

 

 

1.39

 

 

$

8,886

 
Summary of Stock Award Activity

The following table summarizes stock award activity for the six months ended December 31, 2024 (in thousands, except grant date fair value):

 

 

 

Number of Shares

 

 

Weighted- Average Grant Date Fair Value

 

 

Aggregate Fair Value

 

Non-vested stock awards outstanding at June 30, 2024

 

 

6,489

 

 

$

22.65

 

 

 

 

Granted

 

 

4,191

 

 

 

15.82

 

 

 

 

Released

 

 

(2,662

)

 

 

20.47

 

 

 

Canceled

 

 

(277

)

 

 

21.62

 

 

 

 

Non-vested stock awards outstanding at December 31, 2024

 

 

7,741

 

 

$

19.83

 

 

 

 

Stock awards expected to vest at December 31, 2024

 

 

7,741

 

 

$

19.83

 

 

$

153,538

 
Schedule of Awards Performance Thresholds and Shares Expected to Vest (TSR PSUs) The MSU award represents the right to receive a target number of shares of common stock of up to 150% of the original grant, as indicated in the table below. The MSUs vest based on the Company’s TSR relative to the TSR of the Index over performance periods of three years from the grant date, subject to the grantees’ continued service through the certification of performance.

Level

Relative TSR

Shares Vested

Below Threshold

TSR is less than the Index by more than 37.5 percentage points

0%

Threshold

TSR is less than the Index by 37.5 percentage points

25%

Target

TSR equals the Index

100%

Maximum

TSR is greater than the Index by 25 percentage points or more

150%
TSR
Schedule of Fair Value Assumptions for Employee Stock Purchase Plan Awards The following assumptions were used to determine the grant-date fair values of the ESPP shares during the following periods:

 

 

 

 

Employee Stock Purchase Plan

 

 

 

 

 

Six Months Ended

 

 

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

Expected term

 

 

0.5 years

 

 

0.5 years

 

 

Risk-free interest rate

 

 

 

5.04

%

 

 

5.54

%

 

Volatility

 

 

 

36

%

 

 

42

%

 

Dividend yield

 

 

 

—

%

 

 

—

%

 
v3.24.4
Information about Segments and Geographic Areas (Tables)
 6 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Long Lived Assets by Segment

The Company’s long-lived assets are attributed to the geographic regions as follows (in thousands):

 

 

 

December 31,
2024

 

 

June 30,
2024

 

Americas

 

$

142,172

 

 

$

136,745

 

EMEA

 

 

41,064

 

 

 

33,715

 

APAC

 

 

10,438

 

 

 

11,499

 

Total long-lived assets

 

$

193,674

 

 

$

181,959

 
v3.24.4
Restructuring and Related Charges (Tables)
 6 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Summary the activity related to the company's restructuring and related liabilities

The following table summarizes the activity related to the Company’s restructuring and related liabilities during the following periods (in thousands):

 

 

Three Months Ended

 

Six Months Ended

 

 

 

December 31,
2024

 

 

December 31,
2023

 

December 31,
2024

 

 

December 31,
2023

 

Balance at beginning of period

 

$

4,393

 

 

$

925

 

$

11,469

 

 

$

—

 

Period charges

 

 

1,134

 

 

 

9,412

 

 

2,707

 

 

 

12,188

 

Period reversals

 

 

(97

)

 

 

(173

)

 

(393

)

 

 

(258

)

Period payments

 

 

(2,032

)

 

 

(3,972

)

 

(10,385

)

 

 

(5,738

)

Balance at end of period

 

$

3,398

 

 

$

6,192

 

$

3,398

 

 

$

6,192

 
v3.24.4
Net Income (Loss) Per Share (Tables)
 6 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted

The following table presents the calculation of net income (loss) per share of basic and diluted (in thousands, except per share data):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

December 31,
2024

 

 

December 31,
2023

 

Net income (loss)

 

$

7,382

 

 

$

3,988

 

 

$

(3,122

)

 

$

32,664

 

Weighted-average shares used in per share calculation – basic

 

 

132,381

 

 

 

128,987

 

 

 

131,778

 

 

 

128,885

 

Options to purchase common stock

 

 

551

 

 

 

757

 

 

 

—

 

 

 

836

 

Restricted stock units

 

 

1,100

 

 

 

1,579

 

 

 

—

 

 

 

2,951

 

Employee Stock Purchase Plan shares

 

 

75

 

 

 

191

 

 

 

—

 

 

 

114

 

Weighted-average shares used in per share calculation – diluted

 

 

134,107

 

 

 

131,514

 

 

 

131,778

 

 

 

132,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share – basic and diluted

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share – basic

 

$

0.06

 

 

$

0.03

 

 

$

(0.02

)

 

$

0.25

 

Net income (loss) per share – diluted

 

$

0.06

 

 

$

0.03

 

 

$

(0.02

)

 

$

0.25

 
Schedule of Antidilutive Securities Excluded from Earnings Per Share Calculation

The following securities were excluded from the computation of net income (loss) per diluted share of common stock for the periods presented as their effect would have been anti-dilutive (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

December 31,
2024

 

 

December 31,
2023

 

 

December 31,
2024

 

 

December 31,
2023

 

Options to purchase common stock

 

 

—

 

 

 

—

 

 

 

997

 

 

 

—

 

Restricted stock units

 

 

1,295

 

 

 

2,336

 

 

 

5,638

 

 

 

1,623

 

Employee Stock Purchase Plan shares

 

 

695

 

 

 

560

 

 

 

545

 

 

 

445

 

Total shares excluded

 

 

1,990

 

 

 

2,896

 

 

 

7,180

 

 

 

2,068

 
v3.24.4
Revenues (Narratives) (Details)
$ in Millions
 3 Months Ended 6 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2024
USD ($)
Distribution_Channels
Dec. 31, 2023
USD ($)
Jun. 30, 2024
USD ($)
Disaggregation Of Revenue [Line Items]          
Number of distribution channels | Distribution_Channels     2    
Estimated selling price determination approach     Certain of the Company’s contracts have multiple performance obligations, as the promise to transfer individual goods or services is separately identifiable from other promises in the contracts and, therefore, is distinct. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on its relative standalone selling price. The stand-alone selling prices are determined based on the prices at which the Company separately sells these products. For items that are not sold separately, the Company estimates the stand-alone selling prices using other observable inputs.    
Remaining revenue performance obligations $ 589.5   $ 589.5    
Revenue recognized for deferred revenue balance $ 101.3 $ 105.7 $ 183.3 $ 172.0  
Geographic Concentration Risk | Revenue | NETHERLANDS          
Disaggregation Of Revenue [Line Items]          
Concentration risk (percent) 15.00%   11.00% 11.00%  
Geographic Concentration Risk | Revenue | GERMANY          
Disaggregation Of Revenue [Line Items]          
Concentration risk (percent)   10.00%      
Geographic Concentration Risk | Revenue | Other Foreign Country | Maximum          
Disaggregation Of Revenue [Line Items]          
Concentration risk (percent) 10.00% 10.00% 10.00% 10.00%  
Commission Fees          
Disaggregation Of Revenue [Line Items]          
Revenue, practical expedient, incremental cost of obtaining contract [true false]     true    
Contract costs capitalized, balances amount $ 24.7   $ 24.7   $ 24.7
Contract costs capitalized, amortization period 3 years   3 years    
Contract costs capitalized, amortization method     straight-line basis    
Contract costs capitalized, amortization expense $ 3.1 $ 2.7 $ 6.1 $ 5.2  
v3.24.4
Revenues (Narratives) (Details 1)
 6 Months Ended
Dec. 31, 2024
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Percentage of remaining performance obligations expected to recognize, period 6 months
Percentage of remaining performance obligations expected to recognize 31.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-07-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Percentage of remaining performance obligations expected to recognize, period 1 year
Percentage of remaining performance obligations expected to recognize 34.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-07-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Percentage of remaining performance obligations expected to recognize, period
Percentage of remaining performance obligations expected to recognize, description thereafter
Percentage of remaining performance obligations expected to recognize 35.00%
v3.24.4
Revenues (Schedule of Revenues Disaggregated by Sales Channel and Geographic Region) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Disaggregation Of Revenue [Line Items]        
Net Revenues $ 279,355 $ 296,377 $ 548,559 $ 649,514
United States        
Disaggregation Of Revenue [Line Items]        
Net Revenues 119,678 149,549 272,931 332,301
Other Americas        
Disaggregation Of Revenue [Line Items]        
Net Revenues 11,710 13,086 23,892 25,983
Total Americas        
Disaggregation Of Revenue [Line Items]        
Net Revenues 131,388 162,635 296,823 358,284
EMEA        
Disaggregation Of Revenue [Line Items]        
Net Revenues 128,257 110,605 213,175 254,208
APAC        
Disaggregation Of Revenue [Line Items]        
Net Revenues $ 19,710 $ 23,137 $ 38,561 $ 37,022
v3.24.4
Revenues (Schedule of Customers Accounting for 10% or More of Net Revenues and Accounts Receivable Balance) (Details) - Customer Concentration Risk
 3 Months Ended 6 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Jun. 30, 2024
TD Synnex Corporation | Revenue          
Concentration Risk [Line Items]          
Concentration risk (percent) 17.00% 24.00% 19.00% 21.00%  
Westcon Group Inc. | Revenue          
Concentration Risk [Line Items]          
Concentration risk (percent) 22.00% 10.00% 18.00% 18.00%  
Jenne, Inc. | Revenue          
Concentration Risk [Line Items]          
Concentration risk (percent) 15.00% 23.00% 18.00% 25.00%  
Jenne, Inc. | Accounts Receivable          
Concentration Risk [Line Items]          
Concentration risk (percent)     26.00%   64.00%
ScanSource, Inc. | Accounts Receivable          
Concentration Risk [Line Items]          
Concentration risk (percent)         11.00%
v3.24.4
Balance Sheet Accounts (Summary of Cash and Cash Equivalents) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Cash $ 170,204 $ 153,483
Cash equivalents 118 3,216
Total cash and cash equivalents $ 170,322 $ 156,699
v3.24.4
Balance Sheet Accounts (Components of Inventories) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Finished goods $ 84,002 $ 115,813
Raw materials 48,276 25,219
Total inventories $ 132,278 $ 141,032
v3.24.4
Balance Sheet Accounts (Components of Property and Equipment) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 192,826 $ 193,955
Less: accumulated depreciation and amortization (156,091) (150,211)
Property and equipment, net 36,735 43,744
Computers and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 80,790 77,224
Software    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 55,805 60,717
Office equipment, furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 8,103 8,134
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 48,128 $ 47,880
v3.24.4
Balance Sheet Accounts (Narratives) (Details)
 6 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Standard hardware warranty period (in months) 1 year
Standard software warranty period (in days) 90 days
Maximum investment in one obligor or maker (percent) 10.00%
v3.24.4
Balance Sheet Accounts (Summary of Product Warranty Liability Activity) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]        
Balance at beginning of period $ 10,239 $ 12,164 $ 10,942 $ 12,322
New warranties issued 3,045 2,777 5,531 6,451
Warranty expenditures (3,248) (3,544) (6,437) (7,376)
Balance at end of period $ 10,036 $ 11,397 $ 10,036 $ 11,397
v3.24.4
Fair Value Measurements (Schedule of Fair Value for Financial Assets and Liabilities Measured on Recurring Basis) (Details) - Recurring - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Assets    
Certificate of deposits $ 118 $ 3,216
Foreign currency derivatives 36 18
Total assets measured at fair value 154 3,234
Liabilities    
Foreign currency derivatives 342 71
Total liabilities measured at fair value 342 71
Level 2    
Assets    
Certificate of deposits 118 3,216
Foreign currency derivatives 36 18
Total assets measured at fair value 154 3,234
Liabilities    
Foreign currency derivatives 342 71
Total liabilities measured at fair value $ 342 $ 71
v3.24.4
Fair Value Measurements (Narratives) (Details) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Jun. 30, 2024
Not Designated as Hedging Instrument | Forward Foreign Currency Contracts          
Assets/Liabilities          
Notional principal amount of forward foreign exchange contracts $ 55,000,000   $ 55,000,000   $ 31,300,000
Gains (losses) on foreign currency derivative instruments (2,100,000) $ 400,000 (1,300,000) $ 300,000  
Designated as Hedging Instrument | Forward Foreign Currency Contracts          
Assets/Liabilities          
Unrealized gain (loss) on derivatives     0   0
Level 2 Assets and Liabilities          
Assets/Liabilities          
Long-term debt, fair value 185,000,000   185,000,000   190,000,000
Transfers of assets between Level 1 and Level 2 0 0 0 0  
Transfers of liabilities between Level 1 and Level 2 0 0 0 0  
Level 3 Assets and Liabilities          
Assets/Liabilities          
Fair value, measurement level 3 assets, transfers     0   0
Fair value, measurement level 3 liabilities transfers     0   0
Transfers of assets between Level 2 and Level 3 0 0 0 0  
Transfers of liabilities between Level 2 and Level 3 0 $ 0 0 0  
Fair value assets impairment     0 $ 0  
Recurring          
Assets/Liabilities          
Certificate of deposits 118,000   118,000   3,216,000
Recurring | Level 2 Assets and Liabilities          
Assets/Liabilities          
Certificate of deposits $ 118,000   $ 118,000   $ 3,216,000
v3.24.4
Intangible Assets and Goodwill (Components of Gross and Net Intangible Asset Balances) (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Dec. 31, 2024
Jun. 30, 2024
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 245,492 $ 245,901
Accumulated Amortization 237,271 235,288
Net Carrying Amount $ 8,221 $ 10,613
Developed Technology    
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]    
Weighted Average Remaining Amortization Period 2 years 9 months 18 days 3 years
Gross Carrying Amount $ 168,884 $ 169,247
Accumulated Amortization 163,676 162,708
Net Carrying Amount $ 5,208 $ 6,539
Customer Relationships    
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]    
Weighted Average Remaining Amortization Period 1 year 6 months 2 years
Gross Carrying Amount $ 64,626 $ 64,671
Accumulated Amortization 61,756 60,776
Net Carrying Amount $ 2,870 $ 3,896
Trade Names    
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]    
Weighted Average Remaining Amortization Period 0 years 0 years
Gross Carrying Amount $ 10,700 $ 10,700
Accumulated Amortization 10,700 10,700
Net Carrying Amount $ 0 $ 0
License Agreements    
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]    
Weighted Average Remaining Amortization Period 2 years 2 years 4 months 24 days
Gross Carrying Amount $ 1,282 $ 1,282
Accumulated Amortization 1,139 1,104
Net Carrying Amount $ 143 $ 178
v3.24.4
Intangible Assets and Goodwill (Summary of Amortization Expense of Intangibles) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]        
Amortization of intangibles in “Total cost of revenues” $ 606 $ 611 $ 1,230 $ 2,044
Type Of Cost Good Or Service Extensible List Product Product Product Product
Amortization of intangibles in “Total operating expenses” $ 509 $ 509 $ 1,021 $ 1,020
Total amortization expense $ 1,115 $ 1,120 $ 2,251 $ 3,064
v3.24.4
Intangible Assets and Goodwill (Schedule Future Amortization for Finite-Lived Intangible Assets) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
For the fiscal year ending:    
2025 (the remainder of fiscal 2025) $ 2,183  
2026 3,131  
2027 1,402  
2028 1,246  
2029 259  
Net Carrying Amount $ 8,221 $ 10,613
v3.24.4
Intangible Assets and Goodwill (Narratives) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill $ 391,981 $ 393,709
v3.24.4
Debt (Components of Debt) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Line Of Credit Facility [Line Items]    
Less: unamortized debt issuance costs $ (752) $ (674)
Current portion of long-term debt 11,748 9,326
Less: unamortized debt issuance costs (1,634) (1,735)
Long-term debt, less current portion 170,866 178,265
Total debt 182,614 187,591
Term Loan    
Line Of Credit Facility [Line Items]    
Current portion of long-term debt 12,500 10,000
Long-term debt, less current portion $ 172,500 $ 180,000
v3.24.4
Debt (Narratives) (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 22, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Line Of Credit Facility [Line Items]          
Payments of lines of credit         $ 25,000,000
Outstanding letters of credit   $ 14,200,000   $ 14,200,000  
Credit Agreement | Applicable Margin for SOFR          
Line Of Credit Facility [Line Items]          
Debt instrument, subject to floor 0.00%        
Debt instrument, spread adjustment 0.10%        
Credit Agreement | Term Loan          
Line Of Credit Facility [Line Items]          
Borrowing capacity from Credit Agreement $ 200,000,000        
Credit Agreement | Revolving Facility          
Line Of Credit Facility [Line Items]          
Credit Facility, term 5 years        
Borrowing capacity from Credit Agreement $ 150,000,000        
Amended Credit Agreement          
Line Of Credit Facility [Line Items]          
Debt instrument interest rate       6.84% 7.46%
Amended Credit Agreement | Interest Expense          
Line Of Credit Facility [Line Items]          
Amortization of deferred financing costs   300,000 $ 300,000 $ 600,000 $ 500,000
Amended Credit Agreement | Term Loan          
Line Of Credit Facility [Line Items]          
Payments of lines of credit   0 $ 0 0 $ 0
Amended Credit Agreement | Revolving Facility          
Line Of Credit Facility [Line Items]          
Line of credit facility remaining outstanding balance   0   0  
Borrowing capacity from Credit Agreement   $ 135,800,000   $ 135,800,000  
Maximum | Credit Agreement          
Line Of Credit Facility [Line Items]          
Additional incremental loan facility $ 100,000,000        
Maximum | Credit Agreement | Applicable Margin for Base Rate          
Line Of Credit Facility [Line Items]          
Borrowings, interest rate 1.75%        
Maximum | Credit Agreement | Applicable Margin for SOFR          
Line Of Credit Facility [Line Items]          
Borrowings, interest rate 2.75%        
Minimum | Credit Agreement | Applicable Margin for Base Rate          
Line Of Credit Facility [Line Items]          
Borrowings, interest rate 1.00%        
Minimum | Credit Agreement | Applicable Margin for SOFR          
Line Of Credit Facility [Line Items]          
Borrowings, interest rate 2.00%        
v3.24.4
Commitments and Contingencies (Narratives) (Details)
$ in Millions
Dec. 31, 2024
USD ($)
Other Accrued Liabilities  
Commitments And Contingencies [Line Items]  
Total estimated litigation expense accrual $ 23.5
Non-Cancelable Inventory  
Commitments And Contingencies [Line Items]  
Non-cancelable purchase commitments $ 29.5
v3.24.4
Stockholders' Equity (Narratives) (Details) - USD ($)
 3 Months Ended 6 Months Ended
Sep. 14, 2024
May 18, 2022
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Nov. 17, 2022
Class Of Stock [Line Items]              
Total number of shares repurchased     0 1,485,005,000 0 2,365,220,000  
Stock repurchased during period, value       $ 25,000,000   $ 49,900,000  
Stock repurchase, extended period, effective date   Jul. 01, 2022          
Stock repurchased average price per share       $ 16.81   $ 21.08  
Share repurchased outstanding amount     $ 50,300,000   $ 50,300,000    
Excise tax on stock repurchases     1.00%   1.00%    
2022 Repurchase Program              
Class Of Stock [Line Items]              
Stock repurchase, extended period   3 years          
2022 Repurchase Program | Maximum              
Class Of Stock [Line Items]              
Stock repurchase, authorized amount   $ 200,000,000.0         $ 50,000,000.0
Maximum amount of common stock may be repurchased in any quarter   $ 25,000,000.0          
Stock repurchase, increase in authorized amount             $ 25,000,000.0
2013 Equity Incentive Plan              
Class Of Stock [Line Items]              
Maximum number of shares available for sale under equity incentive plan 2,300,000            
v3.24.4
Employee Benefit Plans (Shares Reserved for Issuance) (Details) - shares
shares in Thousands
Dec. 31, 2024
Jun. 30, 2024
Class Of Stock [Line Items]    
Shares reserved for issuance 26,373 28,106
2014 Employee Stock Purchase Plan    
Class Of Stock [Line Items]    
Shares reserved for issuance 6,662 7,130
Employee Stock Options and Awards Outstanding    
Class Of Stock [Line Items]    
Shares reserved for issuance 8,619 7,562
2013 Equity Incentive Plan Shares Available for Grant    
Class Of Stock [Line Items]    
Shares reserved for issuance 11,092 13,414
v3.24.4
Employee Benefit Plans (Schedule of Recognized Share-based Compensation Expense) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense $ 21,452 $ 20,957 $ 41,219 $ 40,876
Cost of Product Revenue        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense 680 464 1,298 947
Cost of Subscription And Support Revenues        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense 798 749 1,487 1,615
Research and Development        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense 4,467 4,435 8,680 8,812
Sales and Marketing        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense 7,596 7,535 14,478 14,523
General and Administrative        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense $ 7,911 $ 7,774 $ 15,276 $ 14,979
v3.24.4
Employee Benefit Plans (Summary of Stock Option Activity) (Details)
$ / shares in Units, shares in Thousands, $ in Thousands
 6 Months Ended 12 Months Ended
Dec. 31, 2024
USD ($)
$ / shares
shares
Jun. 30, 2024
USD ($)
$ / shares
shares
Number of Shares    
Options outstanding at June 30, 2024 | shares 1,073  
Granted | shares 0  
Exercised | shares (195)  
Canceled | shares 0  
Options outstanding at December 31, 2024 | shares 878 1,073
Vested and expected to vest at December 31, 2024 | shares 878  
Exercisable at December 31, 2024 | shares 878  
Weighted-Average Exercise Price Per Share    
Options outstanding at June 30, 2024 | $ / shares $ 6.58  
Granted | $ / shares 0  
Exercised | $ / shares 6.4  
Canceled | $ / shares 0  
Options outstanding at December 31, 2024 | $ / shares 6.62 $ 6.58
Vested and expected to vest at December 31, 2024 | $ / shares 6.62  
Exercisable at December 31, 2024 | $ / shares $ 6.62  
Weighted-Average Remaining Contractual Term    
Options outstanding 1 year 4 months 20 days 1 year 9 months
Vested and expected to vest at December 31, 2024 1 year 4 months 20 days  
Exercisable at December 31, 2024 1 year 4 months 20 days  
Aggregate Intrinsic Value    
Options outstanding | $ $ 8,886 $ 7,376
Vested and expected to vest at December 31, 2024 | $ 8,886  
Exercisable at December 31, 2024 | $ $ 8,886  
v3.24.4
Employee Benefit Plans (Narratives) (Details) - $ / shares
 3 Months Ended 6 Months Ended
Feb. 15, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Granted       0  
Granted       4,191,000  
Granted       $ 15.82  
Stock price target       46.96  
Initial Performance Period          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Stock price target $ 23     $ 41.38  
4th Year Performance Period          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Stock price target $ 26        
3rd Anniversary | Initial Performance Period          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Vesting Rights Percentage       50.00%  
4th Anniversary | Initial Performance Period          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Vesting Rights Percentage       50.00%  
Restricted Stock Units (RSUs)          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Share-based compensation arrangement by share-based payment award, award vesting percentage       The RSUs granted under the 2013 Plan vest over a period of time, generally one to three years, and are subject to participant's continued service to the Company.  
MSU          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Calculation of total shareholder return (TSR), description       is calculated based on the average closing price for the 30-trading days prior to the beginning and end of the performance periods. Performance is measured based on three periods, with the ability for up to one-third of target shares to vest after years one and two and the ability for up to the maximum of the full award to vest based on the full three-year TSR less any shares vested based on one- and two-year periods.  
MSU Subject to Total Shareholder Return (TSR)          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Granted       $ 17.22 $ 34.09
Volatility       48.00% 50.00%
Risk-free interest rate       3.86% 4.48%
Dividend yield       0.00% 0.00%
Expected term       3 years 3 years
MSU Subject to Stock Price Targets          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Granted       $ 28.80  
Volatility       63.00%  
Risk-free interest rate       4.45%  
Dividend yield       0.00%  
Executive Officers and Outside Directors | Restricted Stock Units (RSUs)          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Granted       1,300,000  
Executive Officer Member | Restricted Stock Units (RSUs)          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Granted       900,000 800,000
Executive Officer Member | MSU          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Shares vested, Maximum       150.00%  
Executive Officer Member | MSU Subject to Total Shareholder Return (TSR)          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Granted         500,000
Executive Officer Member | MSU Subject to Stock Price Targets          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Granted         300,000
2013 Equity Incentive Plan          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Granted   0 0 0 0
2014 Employee Stock Purchase Plan          
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]          
Shares issued under stock purchase plan       500,000 500,000
Weighted-average grant-date fair value of options issued (in dollars per share)       $ 3.74 $ 8.09
v3.24.4
Employee Benefit Plans (Summary of Stock Award Activity) (Details)
$ / shares in Units, shares in Thousands, $ in Thousands
 6 Months Ended
Dec. 31, 2024
USD ($)
$ / shares
shares
Number of Shares  
Non-vested stock awards outstanding at June 30, 2024 | shares 6,489
Granted | shares 4,191
Released | shares (2,662)
Canceled | shares (277)
Non-vested stock awards outstanding at December 31, 2024 | shares 7,741
Stock awards expected to vest at December 31, 2024 | shares 7,741
Weighted-Average Grant Date Fair Value  
Non-vested stock awards outstanding at June 30, 2024 | $ / shares $ 22.65
Granted | $ / shares 15.82
Released | $ / shares 20.47
Canceled | $ / shares 21.62
Non-vested stock awards outstanding at December 31, 2024 | $ / shares 19.83
Stock awards expected to vest at December 31, 2024 | $ / shares $ 19.83
Aggregate Fair Market Value  
Stock awards expected to vest at December 31, 2024 | $ $ 153,538
v3.24.4
Employee Benefit Plans (Schedule of PSUs Earned and Vested Based on Total Stockholder Return (TSR PSUs)) (Details) - Executive Officer Member - TSR PSU
 6 Months Ended
Dec. 31, 2024
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Relative TSR, Below Threshold TSR is less than the Index by more than 37.5 percentage points
Relative TSR, Threshold TSR is less than the Index by 37.5 percentage points
Relative TSR, Target TSR equals the Index
Relative TSR, Maximum TSR is greater than the Index by 25 percentage points or more
Shares vested, Below Threshold 0.00%
Shares vested, Threshold 25.00%
Shares vested, Target 100.00%
Shares vested, Maximum 150.00%
v3.24.4
Employee Benefit Plans (Schedule of Fair Value Assumptions for Employee Stock Purchase Plan Awards) (Details) - Employee Stock Purchase Plan
 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]    
Expected term 6 months 6 months
Risk-free interest rate 5.04% 5.54%
Volatility 36.00% 42.00%
Dividend yield 0.00% 0.00%
v3.24.4
Information about Segments and Geographic Areas (Narratives) (Details)
 6 Months Ended
Dec. 31, 2024
Geographic_Area
Segment
Segment Reporting [Abstract]  
Number of operating segments | Segment 1
Number of geographic regions | Geographic_Area 3
v3.24.4
Information about Segments and Geographic Areas (Schedule of Long Lived Assets by Segment) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets $ 193,674 $ 181,959
Americas    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets 142,172 136,745
EMEA    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets 41,064 33,715
APAC    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets $ 10,438 $ 11,499
v3.24.4
Derivatives and Hedging (Narratives) (Details) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Jun. 30, 2024
Derivative [Line Items]          
Foreign currency transactions realized gains (losses) $ 2,800,000 $ (700,000) $ 1,400,000 $ (300,000)  
Forward Foreign Currency Contracts | Not Designated as Hedging Instrument          
Derivative [Line Items]          
Notional principal amount of forward foreign exchange contracts 55,000,000   55,000,000   $ 31,300,000
Net gains (losses) on forward foreign currency contracts $ (2,100,000) $ 400,000 (1,300,000) $ 300,000  
Forward Foreign Currency Contracts | Designated as Hedging Instrument          
Derivative [Line Items]          
Unrealized gain (loss) on derivatives     $ 0   $ 0
v3.24.4
Restructuring and Related Charges (Narratives) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Sep. 30, 2024
Jun. 30, 2024
Sep. 30, 2023
Jun. 30, 2023
Restructuring Cost And Reserve [Line Items]                
Restructuring charges, net of reversals and impairment $ 1,000 $ 9,200 $ 2,300 $ 11,900        
Restructuring charges 1,134 9,412 2,707 12,188        
Restructuring liabilities 3,398 6,192 3,398 6,192 $ 4,393 $ 11,469 $ 925 $ 0
Other Accrued Liabilities                
Restructuring Cost And Reserve [Line Items]                
Restructuring liabilities 3,400 6,200 3,400 6,200        
2023 Plan                
Restructuring Cost And Reserve [Line Items]                
Restructuring charges     100          
Expected restructuring charges $ 1,600   $ 1,600          
Restructuring and related activities completion year 2025   2025          
Restructuring charges accelerated depreciation on lab leasehold improvements     $ 5,900          
2023 Plan | Moving Expenses and Asset Disposal Costs                
Restructuring Cost And Reserve [Line Items]                
Other charges     700          
2023 Plan | Moving Expenses and Accelerated Depreciation of Leasehold Improvements                
Restructuring Cost And Reserve [Line Items]                
Restructuring charges     6,600          
Q3 2024 Plan                
Restructuring Cost And Reserve [Line Items]                
Restructuring charges $ 900   1,500          
Q2 2024 Plan                
Restructuring Cost And Reserve [Line Items]                
Restructuring charges   8,800 600          
Q2 2024 Plan | Maximum                
Restructuring Cost And Reserve [Line Items]                
Restructuring charges 100              
Q2 2024 Plan and Q3 2024 Plan                
Restructuring Cost And Reserve [Line Items]                
Restructuring charges     29,100          
Expected restructuring charges $ 1,300   $ 1,300          
Q1 2024 Plan                
Restructuring Cost And Reserve [Line Items]                
Restructuring charges, net of reversals and impairment   $ 200   $ 2,900        
v3.24.4
Restructuring and Related Charges - Summary the activity related to the company's restructuring and related liabilities (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Restructuring and Related Activities [Abstract]        
Balance at beginning of period $ 4,393 $ 925 $ 11,469 $ 0
Period charges $ 1,134 $ 9,412 $ 2,707 $ 12,188
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Restructuring And Related Charges Restructuring And Related Charges Restructuring And Related Charges Restructuring And Related Charges
Period reversals $ (97) $ (173) $ (393) $ (258)
Period payments (2,032) (3,972) (10,385) (5,738)
Balance at end of period $ 3,398 $ 6,192 $ 3,398 $ 6,192
v3.24.4
Income Taxes (Narratives) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]        
Income tax provision (benefit) $ 2,604 $ 3,069 $ 4,094 $ 7,632
US Federal income tax (benefit) expense 1,400   200  
Unrecognized tax benefits 18,200   18,200  
Unrecognized tax benefits that would affect the effective tax rate if recognized 200   200  
Unrecognized tax benefit future impact if recognized $ 18,000   $ 18,000  
v3.24.4
Net Income (Loss) Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Net income (loss) per share - basic and diluted        
Net Income (Loss) $ 7,382 $ 3,988 $ (3,122) $ 32,664
Weighted-average shares used in per share calculation – basic 132,381 128,987 131,778 128,885
Weighted-average shares used in per share calculation – diluted 134,107 131,514 131,778 132,786
Net income (loss) per share - basic        
Net income (loss) per share - basic $ 0.06 $ 0.03 $ (0.02) $ 0.25
Net income (loss) per share - diluted        
Net income (loss) per share - diluted $ 0.06 $ 0.03 $ (0.02) $ 0.25
Options to purchase common stock        
Net income (loss) per share - basic and diluted        
Options to purchase common stock 551 757 0 836
Restricted stock units        
Net income (loss) per share - basic and diluted        
Options to purchase common stock 1,100 1,579 0 2,951
Employee Stock Purchase Plan shares        
Net income (loss) per share - basic and diluted        
Options to purchase common stock 75 191 0 114
v3.24.4
Net Income (Loss) Per Share (Schedule of Anti-Dilutive Shares Excluded from Earnings Per Share Calculation) (Details) - shares
shares in Thousands
 3 Months Ended 6 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of EPS 1,990 2,896 7,180 2,068
Options to purchase common stock        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of EPS     997  
Restricted stock units        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of EPS 1,295 2,336 5,638 1,623
Employee Stock Purchase Plan shares        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of EPS 695 560 545 445