7. Extreme Networks (NASDAQ:EXTR)
Stock Performance Since Trade Date: +91%
Extreme Networks (NASDAQ:EXTR) is a networking infrastructure company. It makes wired and wireless network equipment, including switches, wireless access points, and related hardware. It sells networking products and software solutions to enterprise customers, government agencies, educational institutions, and healthcare providers. Its moat is built on product differentiation through AI-driven networking capabilities and the shift toward a cloud-managed software platform that creates customer stickiness. Its customers are large enterprises, federal government agencies, financial services companies, and educational institutions that require robust networking infrastructure.
Extreme Networks (NASDAQ:EXTR) is making a foray into artificial intelligence with its Extreme Platform ONE, an AI-driven networking platform that automates network management and provides intelligent network analytics. The platform allows customers to manage complex networking tasks at a fraction of the time compared to their previous systems. Approximately 36 percent of total revenues are now recurring, up from lower levels in previous years, with software-as-a-service annual recurring revenue growing 29 percent year-over-year.
SouthernSun Smid Cap Strategy stated the following regarding Extreme Networks, Inc. (NASDAQ:EXTR) in its fourth quarter 2025 investor letter:
During the fourth quarter we initiated new positions in Oshkosh Corporation (OSK), Live Oak Bancshares Inc (LOB) and Extreme Networks, Inc. (NASDAQ:EXTR) Extreme Networks, Inc. (EXTR) Earlier in 2025, we added EXTR to the Small Cap strategy. We have continued to get to know the company throughout the year, and our conviction has built, so in the fourth quarter we added EXTR to the SMID strategy. Extreme Networks is one of the top three players in the enterprise networking industry, although it remains a distant third behind Cisco and Hewlett Packard (HPE), which together control more than 60% of the market.
We believe EXTR has the opportunity to grow revenues in the low double-digit range and gain market share due to advantages in product architecture, pricing, and customer experience. Unlike its larger competitors, which are primarily focused on datacenter-centric network designs, Extreme offers a differentiated fabric-based architecture that is well suited for distributed environments. This makes EXTR particularly attractive for customers such as college campuses, hospitals, stadiums, convention centers, and industrial facilities with complex operational networks and growing numbers of connected devices..…” (Click here to read the full text)
