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Extreme Networks Inc

EXTRAbove value

Held by 2 superinvestors.

Price$22.042026-10-22 close · Yahoo Finance
Holders2
Total value$2.3M

SEC 10-K · fundamentals

Business quality

As of 2026-06-30
Revenue growth
+12.6%
Net margin
3.3%
ROE
47.5%
FCF margin
7.4%
Revenue $1.01B → $1.28B · 6y
What makes a business high quality

Valuation · value band

Above fair value

$2/ sh · growth-anchored intrinsic value
margin of safety
fair value
above fair value
$22
cheaperpricier

Zero-growth floor

$4

Central IV

$2

Optimistic top

$4

Extreme Networks Inc (EXTR): A conservative value band $4 / sh (zero-growth floor to growth-capped optimistic top); central read about $2. Today’s price sits above that band (price $22 as of 2026-10-22).

The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.

  • Recent earnings are below the multi-year average, so the band uses the lower run-rate.

Revenue growth 0% (history declining, capped at zero) · moat 0 yr · discount 10.8% · Zero-growth downside $4

Price as of 2026-10-22 · yahoo · DGS10 5.1% @ 2026-10-21.

Method & numbers

Buybacks over the years shown roughly only offset stock-based-compensation dilution — read them as maintaining the share count, not a net return of capital.

Model cautions

  • Owner-earnings yield diverges sharply from the 10-year Treasury (over 300 bps).

A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.

Owner-earnings DCF $2.11 – $2.62 · Greenwald zero-growth $4.08 · zero-growth base $4.08 · reproduction $4.08

Moat Below asset base · terminal value 36% of present value · owner-earnings yield 1% vs 10Y 5.1%.

Graham earnings-power value (normalized NOPAT)$2.34 – $2.79 / sh

Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.

Years: 2025, 2024, 2023, 2022, 2021

v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 104% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back).

Buffett owner-earnings value$2.30 – $2.81 / sh

Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9–11% rate band (read as a cost-of-equity proxy). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).

Years: 2025, 2024, 2023, 2022, 2021

v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 104% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% band as a cost-of-equity proxy; no leverage premium applied (net cash or debt within the no-charge range).

Reproduction value = tangible net assets $-312.25M + capitalized R&D $662.03M（FY 2025, 2024, 2023, 2022, 2021） = $4.08 / sh. Reproduction value = intangible-inclusive net reproduction (tangible net assets + acquired-intangible reset proxy + capitalized R&D), ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise.

Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.

Growth value gated to zero — no moat or ROIIC ≤ WACC, so no growth value is credited.

Window FY 2025, 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 21% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.

Owner-earnings DCF: growth g₁ 0% (history declining → capped at 0) · OE FY 2025, 2024, 2023, 2022, 2021 · Discount band: 9.63%–12.00% (DGS10 +4.5% to a 12% strict end, as of 2026-10-21). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.

What the price is betting

Today's price pencils in about over 30.0% (outside the usual range) a year in owner-earnings for the next few years. Revenue actually grew 3.2% a year.

The market wants it well ahead of its own track record.

Even when the value band is low-confidence: use this to see what the price assumes — not as a cheapness confirmation.

How to read intrinsic value

SEC 13F · holders

Superinvestors Holding This Security

2 holders · $2.3M combined · this quarter +1 opened / -0 exited

This quarter1 opened1 added
Holders 1 → 2 · last 4 quarters
  • Ray Dalio
    Value$1.8MWeight (prev→now)0.0% → 0.0% ▲
  • Lee Ainslie
    Value$465,578Weight (prev→now)New · 0.0%

SEC 13F · notes

Written summary

Extreme Networks Inc (EXTR) is held by 2 of the superinvestors tracked on Compounder, with a combined $2.3M in reported 13F value. The largest position belongs to Ray Dalio, where it makes up 0.0% of the portfolio.

Other notable holders by value include Lee Ainslie (0.0% of its book).

In the quarter ended 2026-06-30, 1 of the tracked filers opened a new position in EXTR, 1 added to existing ones, 0 trimmed, and 0 sold out entirely.

Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.

How to read a 13F

SEC 13F · co-ownership

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Also on

Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14· Yahoo Finance as of 2026-10-22· SEC 10-K (XBRL) as of 2026-06-30 · filed 2026-08-17·FRED 10-year Treasury (DGS10) as of 2026-10-21

Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.

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