Calix Swings to $11.2M Q1 Profit as Revenue Jumps 27% to $280M

Calix, Inc. (a provider of cloud and software platforms for communications service providers) reported net income of $11.2 million for the three months ended March 28, 2026, swinging from a net loss of $4.8 million in the same period a year earlier. The Delaware-incorporated company posted diluted earnings per share of $0.16, compared to a loss of $0.07 per share in Q1 fiscal 2025. Read more earnings reports.

Revenue climbed 27% to $280.0 million for the quarter ended March 28, 2026, up from $220.2 million in the prior-year period. Systems revenue, the company's largest segment, rose to $265.3 million from $211.2 million, while services revenue increased to $6.7 million from $2.5 million. Subscription and support revenue edged up to $6.3 million from $5.5 million.

Gross profit expanded to $159.3 million from $122.7 million year-over-year, reflecting a gross margin of approximately 57% compared to 56% in the prior-year quarter. Cost of goods sold increased to $120.7 million from $97.5 million.

Operating expenses rose to $146.6 million from $128.8 million, driven in part by a 24% increase in research and development spending to $54.6 million from $44.0 million. The company recorded operating income of $12.7 million, a sharp reversal from an operating loss of $6.1 million in Q1 fiscal 2025.

Cash and cash equivalents stood at $54.6 million as of March 28, 2026, down from $143.1 million at the end of fiscal 2025. The decline reflected cash used in financing activities of $150.9 million, partially offset by cash from operations of $14.6 million and cash from investing activities of $47.9 million.

Total assets decreased to $951.4 million from $1.06 billion at year-end 2025. Stockholders' equity fell to $738.0 million from $859.2 million, as the company's retained deficit narrowed to $361.0 million from $372.2 million. Common shares outstanding declined to 64.4 million from 67.1 million over the same period.

Inventory on the balance sheet increased to $154.6 million from $133.7 million, while accounts receivable rose to $116.8 million from $99.4 million. Accounts payable jumped to $69.1 million from $41.5 million at the end of the prior quarter.