The strong revenue beat and EPS surprise are positive, but the sharp gross margin guidance compression (50.5%-53.5% vs Q2's 54.8%) is a clear negative. Memory component cost headwinds may persist through H2 2026. Monitor the earnings call for surcharge pass-through timing and any impact on customer demand. The company's expectation of RPO growth acceleration in H2 2026 could provide a catalyst if margins stabilize.
Price Chart
Executive Summary
Calix reported record Q2 2026 revenue of $293.3M (+21% YoY, +5% QoQ) and GAAP EPS of $0.26, beating the $0.16 consensus by 62.5%. However, non-GAAP gross margin fell to 54.8% (down 240 bps Y/Y) and Q3 guidance calls for further margin compression to 50.5%-53.5% due to memory component costs, partially offset by surcharges. The strong top-line beat is tempered by margin headwinds, making the overall picture mixed.
Key Financial Metrics
Key Facts
- Record quarterly revenue of $293.3M, up 21% YoY and 5% sequentially
- GAAP diluted EPS $0.26 vs consensus $0.16 (beat 62.5%)
- Non-GAAP diluted EPS $0.47, above guidance of $0.35-$0.45
- GAAP gross margin 54.6%, down 170 bps YoY; non-GAAP 54.8%, down 200 bps YoY
- Q3 FY2026 revenue guidance $301M-$307M (up 4% QoQ) but gross margin guided to 50.5%-53.5% (midpoint 52.0%, down ~280 bps QoQ)
- Record RPOs of $386.4M, up 11% YoY; current RPOs $162.1M, up 21% YoY
- Software and service revenue grew to a record $50.5M, up 16% YoY
- Free cash flow of $11.9M; returned $69.4M in share repurchases during Q2
- One customer represented 12% of total revenue in Q2
Financial Impact
Revenue beat by ~$3.3M vs guidance high end; GAAP EPS beat consensus by $0.10 (62.5%). Q3 gross margin guidance decline of ~280 bps sequentially implies ~$8-10M lower gross profit at midpoint vs Q2, partially offset by higher revenue.
Risk Factors
- Further gross margin compression from elevated memory component costs not fully offset by surcharges
- Customer concentration risk (one customer 12% of revenue)
- Inventory build-up (inventory turns at 2.7, below target of 3-4) could lead to write-offs if demand softens
- DSO increased to 42 days (up 6 days QoQ) due to surcharge-related shipment delays
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001406666-26-000028 |
| Exhibit: ex991pressrelease26q2.htm | 0001406666-26-000028 |
| Document: calx-20260720.htm | 0001406666-26-000028 |
| Document: 0001406666-26-000028-index-headers.html | 0001406666-26-000028 |
| Document: 0001406666-26-000028-index.html | 0001406666-26-000028 |
| Document: 0001406666-26-000028.txt | 0001406666-26-000028 |
| 8-K Data (Synthetic) | 0001406666-26-000028 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | Institutional Cluster | $36.91 | awaiting T+60 | — | $37.96 (+2.84%) |
Oct 8, 2026 18d ago | 8-K | $37.24 | awaiting T+60 | — | $37.96 (+1.93%) |
Jul 20, 2026 14w ago | 8-K | $37.47 $36.31 | ▼ −3.10% | ▼ −7.07% | $37.96 (+1.31%) |
Apr 21, 2026 26w ago | 8-K | $42.65 $39.14 | ▼ −8.23% | ▼ −13.01% | $37.96 (−11.00%) |
Apr 21, 2026 26w ago | 8-K | $42.65 $39.14 | ▼ −8.23% | ▼ −13.01% | $37.96 (−11.00%) |
Mar 27, 2026 30w ago | DEFA14A | $49.40 $35.20 | ▼ −28.74% | ▼ −45.24% | $37.96 (−23.16%) |
US Market Status
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