Calix, Inc. reported first‑quarter 2026 revenue of $280.0 million, up 27% from the same period last year and 3% from the prior quarter. Appliance sales accounted for $232.8 million, while Software and Services generated $47.1 million, reflecting a shift toward higher‑margin offerings. Net income reached $11.2 million, translating to diluted earnings of $0.16 per share. Adjusted earnings of $0.40 per share beat the consensus estimate of $0.38, a $0.02 or 5% outperformance.
GAAP gross margin stood at 56.9%, a slight sequential decline but a 120‑basis‑point year‑over‑year gain, driven by the growing mix of software and services. Operating expenses rose to $146.6 million, while non‑GAAP operating expenses were $126.9 million, reflecting the company’s investment in its AI‑native platform and customer acquisition. Free cash flow for the quarter was $7 million, and the company returned $171 million to shareholders through share repurchases.
Management raised its second‑quarter revenue guidance to $287 million–$293 million, up from the $275 million–$281 million range previously cited. CEO Michael Weening said, “Our first quarter 2026 results highlight that strong momentum and execution. Calix delivered record revenue of $280 million in the first quarter of 2026—our seventh consecutive quarter of growth—representing 3% sequential growth and 27% year‑over‑year growth.” CFO Cory Sindelar explained the sequential gross‑margin decline: “Non‑GAAP gross margin in the first quarter was 57.2%, down 80 basis points sequentially, which Sindelar said was due to investment in ‘dual cloud environments’ during the customer migration.” He added, “The dual‑cloud period has ended.” The company also reiterated its full‑year revenue outlook of 15%–20% growth, citing continued demand for its Calix One platform and the anticipated revenue from the BEAD program.
Investors reacted cautiously, noting that while the earnings beat and raised guidance signal confidence, the sequential margin compression and upcoming memory component cost increases present headwinds. The company’s completion of the third‑generation cloud migration and strong demand for its software‑as‑a‑service model are viewed as tailwinds that could offset short‑term margin pressure.
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