Calix (NYSE:CALX) executives highlighted record financial results for the fourth quarter and full year 2025, pointed to growing demand visibility entering 2026, and discussed the company’s transition to a third-generation platform built around “Agent Workforce” capabilities and a Google Cloud partnership.
Record Q4 and full-year performance
President and CEO Michael Weening said Calix closed 2025 with “the best performance in the company’s history,” citing record revenue and gross margin, expanding remaining performance obligations (RPOs), 11 consecutive quarters of “eight-figure free cash flow,” and record cash.
Sindelar said the quarter’s performance was driven by demand from “Broadband Experience Provider” (BXP) customers using Calix appliances, cloud, and managed services to attract subscribers, reduce churn, improve net promoter scores, increase ARPU, and expand footprints. Calix added 25 new customers in the quarter.
RPO strength, margins, and cash flow
Calix posted record RPOs of $385 million, up 9% sequentially and 18% year over year. Current RPOs were $152 million, also a record, up 8% sequentially and 26% year over year. Management framed the RPO growth as a key indicator of ongoing business strength and visibility as customers adopt more of the company’s platform and services.
Non-GAAP gross margin reached a record 58%, marking the company’s eighth consecutive quarter of margin improvement. Sindelar said margins can fluctuate based on customer and product mix and memory costs, but he expressed confidence in the company’s ability to drive further gross margin growth as the platform and cloud services scale. On memory costs, he said Calix will remain proactive and partner with customers to manage supply continuity and any cost increases, adding in Q&A that there was “no immediate near-term impact” in the first quarter because Calix’s supply chain team “got ahead of this.”
The company generated $40 million of free cash flow in the quarter and ended 2025 with $388 million in cash and investments, up $48 million sequentially and $91 million year over year. Days sales outstanding were 35 days, and inventory turns were 3, with Sindelar citing inventory investments to address demand.
Calix also repurchased 300,000 shares for $17 million during the quarter and said its board authorized an additional $125 million increase to the stock repurchase plan. Sindelar described the company as a “disciplined buyer” of its own stock and said internal valuation models had moved higher as visibility increased.
Platform transition, Agent Workforce, and AI investment
Weening said Calix launched the third generation of its platform in December and had already migrated “more than 300 customers,” with a goal of completing all customer migrations by the end of the first quarter. He said the new platform integrates “Calix Agent Workforce” into the company’s operations and, through a partnership with Google Cloud, can be deployed globally either as Calix-hosted or as a private instance for large customers.
Management indicated that the migration requires running “dual clouds” temporarily, and Sindelar said that overlap would weigh on near-term software and services margin. He added that once the dual-cloud period ends, software and services gross margin “should clearly move beyond 70%,” though he said the ultimate ceiling could depend on success with Tier One customers where revenue could be more software-only.
On operating expenses, Sindelar guided to a sequential increase in the first quarter of 2026, attributing it primarily to accelerating development of AI functionality across the platform, cloud, and managed services. He said Calix expects to return to its “target financial model” for operating expenses by the end of 2026.
2026 outlook, BEAD, and market expansion efforts
For the first quarter of 2026, Calix guided revenue of $275 million to $281 million, implying a 2% sequential increase at the midpoint. Sindelar noted the first quarter has “traditionally experienced slower growth due to seasonal trends,” and said the outlook reflects confidence in a multi-year opportunity as more service providers adopt the BXP model.
On the BEAD program, Sindelar said Calix now has a clearer view of size and timing, estimating the opportunity for the company at $1 billion to $1.5 billion. He said Calix has already seen orders from BEAD recipients, expects appliance deliveries “later this year,” and anticipates a meaningful ramp “into next year and beyond.” In Q&A, management cautioned that BEAD revenue may not be entirely additive because industry deployment crews are finite, meaning some BEAD work could displace other builds. Weening also emphasized that beyond infrastructure builds, providers still need to win subscribers—an area where Calix said its platform and agentic capabilities can drive outcomes.
Management also discussed efforts to pursue larger customers and international markets. Weening said Calix has not built international or large-customer wins into 2026 revenue expectations due to the investment and time required, describing Tier One sales cycles as “18–24 months” and suggesting proofs of concept through 2026 with revenue traction more likely later in 2026 and into 2027. He added that Calix will attend Mobile World Congress in Barcelona for the first time, where he is scheduled to keynote and where Calix will appear in the Google booth to demo capabilities.
Calix said it will provide further detail on strategy, growth drivers, and elements such as Agent Workforce monetization at its Investor Day at the New York Stock Exchange on February 24.
About Calix (NYSE:CALX)
Calix, Inc is a provider of cloud and software platforms, systems, and services that enable broadband service providers to transform their networks and subscriber experiences. The company’s flagship Calix Cloud platform delivers real-time analytics, automation and intelligence designed to simplify network operations, improve service agility and drive revenue growth. Calix also offers a comprehensive suite of premises and access systems, including broadband access nodes, fiber-to-the-home optics and residential gateways under the GigaSpire brand.
Through its software-defined network architecture, Calix helps service providers virtualize key network functions and introduce new services with minimal capital expenditure.
