calx-20250329

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 29, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-34674

Calix, Inc.

(Exact Name of Registrant as Specified in Its Charter)


Delaware						68-0438710
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)

2777 Orchard Parkway, San Jose, CA 95134

(Address of Principal Executive Offices) (Zip Code)

(408) 514-3000

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Common Stock, par value $0.025 per share

CALX

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes: x No: o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes: x No: o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☒

Accelerated Filer

☐

Non-accelerated filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes: ☐ No: x

As of April 14, 2025, there were 64,820,252 shares of the Registrant’s common stock, par value $0.025, outstanding.

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CALIX, INC.

FORM 10-Q

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION			4

Item 1. Financial Statements (Unaudited)			4

Condensed Consolidated Balance Sheets			4

Condensed Consolidated Statements of Comprehensive Income (Loss)			5

Condensed Consolidated Statements of Stockholders ’ Equity			6

Condensed Consolidated Statements of Cash Flows			7

Notes to Condensed Consolidated Financial Statements			8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			18

Overview			18

Critical Accounting Policies and Estimates			19

Results of Operations			20

Liquidity and Capital Resources			22

Item 3. Quantitative and Qualitative Disclosures About Market Risk			23

Item 4. Controls and Procedures			25

PART II. OTHER INFORMATION			26

Item 1. Legal Proceedings			26

Item 1A. Risk Factors			26

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			41

Item 3. Defaults Upon Senior Securities			41

Item 4. Mine Safety Disclosures			41

Item 5. Other Information			41

Item 6. Exhibits			43

SIGNATURES			44

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PART I. FINANCIAL INFORMATION

ITEM 1.Financial Statements

CALIX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)


	March 29, 2025		December 31, 2024
	(Unaudited)		(See Note 1)
ASSETS
Current assets:
Cash and cash equivalents	$	42,300	$	43,162
Marketable securities	240,010		253,929
Accounts receivable, net	75,511		79,321
Inventory	100,835		102,727
Prepaid expenses and other current assets	103,344		105,596
Total current assets	562,000		584,735
Property and equipment, net	30,832		31,153
Right-of-use operating leases	5,535		6,216
Deferred tax assets	179,005		177,601
Goodwill	116,175		116,175
Other assets	23,572		23,387
	$	917,119	$	939,267
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	23,471	$	20,226
Accrued liabilities	69,871		84,167
Deferred revenue	29,482		26,750
Total current liabilities	122,824		131,143
Long-term portion of deferred revenue	21,310		20,883
Operating leases	3,378		3,720
Other long-term liabilities	2,441		2,581
Total liabilities	149,953		158,327
Commitments and contingencies (See Note 6)
Stockholders’ equity:
Preferred stock, $0.025 par value; 5,000 shares authorized; no shares issued and outstanding as of March 29, 2025 and December 31, 2024	—		—
Common stock, $0.025 par value; 100,000 shares authorized; 65,695 shares issued and outstanding as of March 29, 2025, and 66,434 shares issued and outstanding as of December 31, 2024	1,643		1,661
Additional paid-in capital	1,160,781		1,170,017
Accumulated other comprehensive loss	(345)		(612)
Accumulated deficit	(394,913)		(390,126)
Total stockholders’ equity	767,166		780,940
	$	917,119	$	939,267

See accompanying notes to condensed consolidated financial statements.

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CALIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share data)

(Unaudited)


	Three Months Ended
	March 29, 2025		March 30, 2024

Revenue	$	220,242	$	226,310
Cost of revenue	97,534		103,733
Gross profit	122,708		122,577
Operating expenses:
Sales and marketing	58,059		53,897
Research and development	43,980		44,422
General and administrative	26,750		26,290


Total operating expenses	128,789		124,609
Operating loss	(6,081)		(2,032)
Interest income and other expense, net:
Interest income, net	3,287		2,635
Other expense, net	(196)		(135)
Total interest income and other expense, net	3,091		2,500
Income (loss) before income taxes	(2,990)		468
Income taxes	1,797		365
Net income (loss)	$	(4,787)	$	103
Net income (loss) per common share:
Basic	$	(0.07)	$	0.00
Diluted	$	(0.07)	$	0.00
Weighted-average number of shares used to compute
net income (loss) per common share:
Basic	66,027		65,338
Diluted	66,027		68,119

Net income (loss)	$	(4,787)	$	103
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on available-for-sale marketable securities, net	171		(212)
Foreign currency translation adjustments, net	96		(112)
Total other comprehensive income (loss), net of tax	267		(324)
Comprehensive loss	$	(4,520)	$	(221)

See accompanying notes to condensed consolidated financial statements.

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CALIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, unaudited)


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount
Balance as of December 31, 2024	66,434	$	1,661	$	1,170,017	$	(612)	$	(390,126)	$	780,940
Stock-based compensation	—	—		20,103		—		—		20,103
Issuance of common stock under equity incentive plans, net of forfeitures	417	10		10,835		—		—		10,845
Repurchases of common stock including excise tax	(1,156)	(28)		(40,174)		—		—		(40,202)
Net loss	—	—		—		—		(4,787)		(4,787)
Other comprehensive income	—	—		—		267		—		267
Balance as of March 29, 2025	65,695	$	1,643	$	1,160,781	$	(345)	$	(394,913)	$	767,166


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount
Balance as of December 31, 2023	65,052	$	1,627	$	1,078,393	$	(659)	$	(360,379)	$	718,982
Stock-based compensation	—	—		16,856		—		—		16,856
Issuance of common stock under equity incentive plans, net of forfeitures	587	14		10,800		—		—		10,814
Repurchases of common stock	(114)	(3)		(3,735)		—		—		(3,738)
Net income	—	—		—		—		103		103
Other comprehensive loss	—	—		—		(324)		—		(324)
Balance as of March 30, 2024	65,525	$	1,638	$	1,102,314	$	(983)	$	(360,276)	$	742,693

See accompanying notes to condensed consolidated financial statements.

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CALIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands, unaudited)


	Three Months Ended
	March 29, 2025		March 30, 2024
Operating activities:
Net income (loss)	$	(4,787)	$	103
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation	19,745		16,856
Depreciation and amortization	4,271		4,867
Deferred income taxes	(1,459)		(2,448)
Net accretion of available-for-sale securities	(1,144)		(1,406)
Changes in operating assets and liabilities:
Accounts receivable, net	3,810		25,719
Inventory	1,891		13,203
Prepaid expenses and other assets	2,808		272
Accounts payable	3,486		(15,973)
Accrued liabilities	(14,086)		(28,056)
Deferred revenue	3,158		2,348
Other long-term liabilities	(481)		(794)
Net cash provided by operating activities	17,212		14,691
Investing activities
Purchases of property and equipment	(4,310)		(3,709)
Purchases of marketable securities	(36,856)		(35,575)

Maturities of marketable securities	52,154		42,565
Net cash provided by investing activities	10,988		3,281
Financing activities:
Proceeds from common stock issuances related to employee benefit plans	10,845		10,814
Repurchases of common stock	(39,974)		(3,738)

Net cash provided by (used in) financing activities	(29,129)		7,076
Effect of exchange rate changes on cash and cash equivalents	67		(39)
Net increase (decrease) in cash and cash equivalents	(862)		25,009
Cash and cash equivalents at beginning of period	43,162		63,409
Cash and cash equivalents at end of period	$	42,300	$	88,418

See accompanying notes to condensed consolidated financial statements.

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CALIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Company and Basis of Presentation

Company

Calix, Inc. (together with its subsidiaries, “Calix” or the “Company”) was incorporated in August 1999 and is a Delaware corporation. The Company develops, markets and sells an appliance-based platform, cloud and managed services that focus on the subscriber-facing network, the portion of the network that governs available bandwidth and determines the range and quality of services that can be offered to subscribers. These platform, cloud and managed services enable broadband experience providers (“BXPs”) of all sizes to innovate and transform their businesses. The Company’s BXP customers are empowered to utilize real-time data and insights from the Calix platform to simplify their businesses and deliver experiences that excite their subscribers. These insights enable BXPs to grow their businesses through increased subscriber acquisition, loyalty and revenue, thereby increasing the value of their businesses and contributions to their communities.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements, including the accounts of Calix, Inc. and its wholly-owned subsidiaries, have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. generally accepted accounting principles (“GAAP”) can be condensed or omitted. In the opinion of management, the financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of the Company’s financial position and operating results. All intercompany balances and transactions have been eliminated in consolidation. The Condensed Consolidated Balance Sheet as of December 31, 2024 has been derived from the audited financial statements at that date.

The results of the Company’s operations can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be the same as those for the full year or any future periods. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

The Company’s fiscal year begins on January 1st and ends on December 31st. Quarterly periods are based on a 4-4-5 calendar with the first quarter ending on the Saturday closest to March 31st. As a result, the Company had one less day in the three months ended March 29, 2025 than for the three months ended March 30, 2024. The preparation of financial statements in conformity with GAAP for interim financial reporting requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

2. Significant Accounting Policies

The Company’s significant accounting policies are disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024. The Company’s significant accounting policies did not change during the three months ended March 29, 2025.

Newly Adopted Accounting Standard

The Company did not adopt any new accounting standards during the three months ended March 29, 2025 that were significant to the Company.

Recent Accounting Pronouncements Not Yet Adopted

There have been no additional accounting pronouncements or changes in accounting pronouncements during the three months ended March 29, 2025 as compared with the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, that are significant or expected to be significant to the Company.

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3. Cash, Cash Equivalents and Marketable Securities

The Company has invested its excess cash primarily in money market funds and highly liquid marketable securities such as U.S. treasury securities, corporate debt instruments, commercial paper and U.S. government securities. The Company considers all investments with maturities of three months or less when purchased to be cash equivalents. Marketable securities represent highly liquid U.S. treasury securities, corporate debt instruments, commercial paper and U.S. government securities with maturities greater than 90 days at date of purchase. Cash equivalents are stated at amounts that approximate fair value based on quoted market prices. Marketable securities are recorded at their fair values.

Marketable securities with maturities greater than one year are classified as current because management considers all marketable securities to be available for current operations.

The Company’s investments have been classified and accounted for as available-for-sale. Such investments are recorded at fair value and unrealized holding gains and losses are reported as a separate component of accumulated other comprehensive loss in stockholders’ equity until realized. Realized gains and losses on sales of marketable securities, if any, are determined on the specific identification method and are reclassified from accumulated other comprehensive loss to results of operations as other expense, net. Realized gains and losses were not significant for the three months ended March 29, 2025 and March 30, 2024.

Cash, cash equivalents and marketable securities consisted of the following (in thousands):


	March 29, 2025		December 31, 2024
Cash and cash equivalents:
Cash	$	15,727	$	20,664
Commercial paper	17,636		10,058
Money market funds	8,937		4,890

U.S. government securities	—		7,550

Total cash and cash equivalents	42,300		43,162
Marketable securities:
Corporate debt securities	126,497		123,701
U.S. government securities	49,036		66,582
Commercial paper	31,979		22,715
U.S. government agency securities	19,875		24,411
Certificates of deposit	12,623		16,520
Total marketable securities	240,010		253,929
	$	282,310	$	297,091

The carrying amounts of the Company’s money market funds approximate their fair values due to their nature, duration and short maturities. The amortized cost and fair value of marketable securities were as follows (in thousands):


As of March 29, 2025	Amortized Cost		Unrealized Gains (Losses), net		Fair Value
Corporate debt securities	$	126,179	$	318	$	126,497
Commercial paper	49,624		(9)		49,615
U.S. government securities	48,915		121		49,036
U.S. government agency securities	19,838		37		19,875
Certificates of deposit	12,612		11		12,623
	$	257,168	$	478	$	257,646


As of December 31, 2024	Amortized Cost		Unrealized Gains, net		Fair Value
Corporate debt securities	$	123,519	$	182	$	123,701
U.S. government securities	74,118		14		74,132
Commercial paper	32,766		7		32,773
U.S. government agency securities	24,380		31		24,411
Certificates of deposit	16,505		15		16,520
	$	271,288	$	249	$	271,537

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4. Fair Value Measurements

The Company measures its cash equivalents and marketable securities at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company utilizes the following three-tier value hierarchy, which prioritizes the inputs used in measuring fair value:

Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 – Observable inputs other than quoted prices included in Level 1 for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-driven valuations in which all significant inputs and significant value drivers are observable in active markets.

Level 3 – Unobservable inputs to the valuation derived from fair valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The fair value hierarchy also requires the Company to maximize the use of observable inputs, when available, and to minimize the use of unobservable inputs when determining inputs and determining fair value.

The following tables sets forth the Company’s financial assets measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):


As of March 29, 2025	Level 1		Level 2		Total
Money market funds	$	8,937	$	—	$	8,937
U.S. government securities	49,036		—		49,036
Corporate debt securities	—		126,497		126,497
Commercial paper	—		49,615		49,615
U.S. government agency securities	—		19,875		19,875
Certificates of deposit	—		12,623		12,623
	$	57,973	$	208,610	$	266,583


As of December 31, 2024	Level 1		Level 2		Total
Money market funds	$	4,890	$	—	$	4,890
U.S. government securities	74,132		—		74,132
Corporate debt securities	—		123,701		123,701
Commercial paper	—		32,773		32,773
U.S. government agency securities	—		24,411		24,411
Certificates of deposit	—		16,520		16,520
	$	79,022	$	197,405	$	276,427

5. Balance Sheet Details

Accounts receivable, net consisted of the following (in thousands):


	March 29, 2025		December 31, 2024
Accounts receivable	$	75,943	$	79,632
Allowance for doubtful accounts	(432)		(311)
	$	75,511	$	79,321

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Inventory consisted of the following (in thousands):


	March 29, 2025		December 31, 2024
Components	$	11,327	$	21,735
Finished goods	89,508		80,992
	$	100,835	$	102,727

Prepaid expenses and other current assets consisted of the following (in thousands):


	March 29, 2025		December 31, 2024
Supplier deposits	$	58,451	$	62,620
Prepaid expenses and other current assets	44,893		42,976
	$	103,344	$	105,596

Property and equipment, net consisted of the following (in thousands):


	March 29, 2025		December 31, 2024
Test equipment	$	59,697	$	57,595
Computer equipment	14,999		14,561
Software	11,149		11,146
Leasehold improvements	2,125		2,173
Furniture and fixtures	1,273		1,268
Total	89,243		86,743
Accumulated depreciation and amortization	(58,411)		(55,590)
	$	30,832	$	31,153

Accrued liabilities consisted of the following (in thousands):


	March 29, 2025		December 31, 2024
Compensation and related benefits	$	23,074	$	36,004
Component inventory held by suppliers	10,616		8,855
Taxes payable	5,794		5,048
Professional and consulting fees	5,294		5,385
Current portion of warranty	4,112		5,288
Operating leases	3,661		4,303
Customer advances or rebates	3,209		4,882
Insurance	2,393		2,019
Product returns	2,016		2,428
Operations	1,764		1,735
Freight	1,548		1,640

Other	6,390		6,580
	$	69,871	$	84,167

Changes in the Company’s accrued warranty liability were as follows (in thousands):

Three Months Ended

SEC Form 10-Q filed by Calix Inc