Following our prepared remarks, we will take questions. And now I will turn the call over to Xtreme's President and CEO, Ed Meiercord. Thank you, Stan, and thank you all for joining us this morning. At fiscal 26, we delivered 13% year-over-year revenue growth and 26% EPS growth, highlighting competitive strength and the operating leverage in our model. During the year, we took share and accelerated our move up market by winning more sophisticated gated networking projects with larger customers, and Q4 was our sixth consecutive quarter of double-digit growth. Our performance was driven by the convergence of three factors. First, our highly differentiated portfolio, including Platform One, Enterprise Fabric, Wi-Fi 7, and the industry's first multi-beam wireless solution. Our innovation is driving competitive wins and opening doors to new customers. Second, we're well positioned in a market that's rapidly moving away from point solutions toward integrated platforms. Our go-to-market teams are tightly aligned and capitalizing on the opportunity to take share here. And third, operating excellence and discipline execution highlighted by our supply chain team eliminating product constraints and by allowing us to meet customer demand into fiscal 28 and beyond. Enterprise networking is in an extended growth cycle fueled by new demands on network created by AI, security, and the modernization of enterprise. At the same time, competitor refresh cycles are creating a significant multi-year window for us to take share with new customers and deepen existing relationships. Fiscal 26 highlighted a significant move up market, with 187 customers booking more than a million dollars in business with Xtreme. Our average deal size grew by a third, and our enterprise competitive win rate improved significantly. We just completed nine consecutive quarters of product growth driven by innovation. Our unique enterprise fabric remains one of our strongest differentiators. One customer recently told us they've gone 11 years without a single network outage since deploying Fabric. By automating operations, strengthening security, and simplifying management, Fabric delivers results customers can see. And when they experience it and approve of concept, our win rate goes way up. And now our Fabric with enhanced capabilities is built into Platform 1. Extreme Platform 1 accounted for 30% of subscription bookings in the first year of general availability, and nearly half of subscription bookings in the fourth quarter, underscoring the rapid pace customer adoption for a unified AI-powered networking platform. Customers and partners are interested in Extreme because they want the most advanced networking platforms that leverage modern agentic AI technology. technology. The release of our Xtreme Agent 1 coworker this quarter is highly anticipated. And deployment flexibility. No competitor matches Xtreme's cloud flexibility, whether it's public, private, or on-prem. We offer seamless alternatives without compromising performance control or compliance. That differentiation brings unique data sovereignty protection, driving strong public sector demand. During the quarter, Platform 1 achieved Germany's C5 certification, one of Europe's rigorous cloud security standards. In the quarter, we extended our innovation leadership with the industry's first multi-beam wireless solution with Wi-Fi 7. This is a result of an exclusive partnership with MatSing. By delivering significantly better economics greater coverage and capacity with dramatically less infrastructure the solution helped us win the massive and highly contested tennessee titans new nissan stadium project it demonstrates how differentiated innovation continues to drive competitive wins platform one continues to accelerate with customers across all go's and all industry verticals including a top 10 global retailer based in Europe, University Technology of Sydney, a new logo and our largest deal in the ANZ region and company history, Vandalia Health, the largest healthcare provider in West Virginia, the UK Health Security Agency, Assumption University, Penn State Athletics, and many more. We also signed our first multi-million dollar multi-year enterprise agreement for Platform One with one of the Middle East's largest health care providers. And other competitive wins, Extreme Display Cisco at Nottingham City Council, the UK government authority that delivers a broad range of public services to more than 320,000 residents. The new network will include a unified fabric, SD-WAN, and our cloud-managed networking solution spanning 74 sites. Elisabeth Twijsteden, one of the largest hospitals in Netherlands, expanded its partnership with Xtreme, selecting Platform One and Wired and Wireless Solutions to support a major modernization initiative. Xtreme Fabric was a key differentiator helping us display Cisco with the simplicity and resiliency required for a 24-7 healthcare environment. Brunel University in London, with over 16,000 students, was another new logo when we displaced a 20-year incumbent by combining the differentiated value of our campus fabric with Platform One. And lastly, University of Florida selected Xtreme to deploy the first Wi-Fi 7 network in a collegiate athletic venue at the iconic Ben Hill Griffin Stadium, better known as The Swamp. Our MSP program continued to gain traction, closing the year with 74 active MSPs, up from 70 last quarter. Billings grew 16% quarter over quarter and 112% year over year. All MSPs are now running Platform One for MSP Workspace, with upgrades now a key focus on our differentiated multi-tenant architecture. The strength of our business momentum has carried into the new fiscal year, market trends are favorable for extreme, and we intend to continue outfacing market growth by taking share, migrating new and existing customers onto platform one. Our component supply is secured into fiscal 28 and beyond, allowing us to meet customer demand while maintaining solid gross margins. Our channel partners continue to report the competitors' lead times are extending due to ongoing supply constraints, creating tailwinds for us. With the next generation of Platform 1 and the upcoming release of both Agent 1 in co-worker mode this quarter and in operator mode next quarter, we will bring agentic AI across the entire network life cycle, from design to orchestration, troubleshooting, and remediation across our entire product portfolio, while delivering complete observability, auditability, and autonomy with built-in governance. None of our competitors will be able to say this or have this capability for some time, and it will be on display at our AI Summit in Amsterdam in October. Finally, the benefits of our continued growth will show up in our operating leverage as we expect our earnings to grow in the 20-plus percent, more than doubling our top-line growth as we go forward. Now, let me turn the call over to Kevin to discuss financial results and guidance. Thanks, Ed.

In the fourth quarter, total revenue of $339 million exceeded consensus and the high end of our guidance range, representing 10% year-over-year and 7% sequential growth. This is our ninth consecutive quarter of sequential product revenue growth, and demand remains strong, resulting in 14% year-over-year and 10% sequential growth. Our recurring revenue of $116 million grew 6% year-over-year. We were pleased with the continued increase in our gross margins to 62.7%, which exceeded consensus and was above the high end of our guidance range. This was the result of timely pricing actions and effective cost management of our supply chain components, which led to a 40 basis point improvement in product margins. Earnings per share of $0.32 was up 28% year over year and 23% sequentially, and exceeded consensus in the high end of our guidance range, with some tax favorability included. I'm pleased to report that we have secured our supply chain for the long term, including into fiscal 2028, and our broad product availability enables us to meet the needs of prospects and our customers at a time when product lead times are a concern for many of our competitors. SaaS ARR climbed to $244 million in the quarter, growing 18% year over year. Investors may recall last year in the fourth quarter, we grew 24% year over year due to winning large customers such as John Deere and the Japanese government. We expect SAS ARR growth to re-accelerate towards the mid-20% range at the end of this fiscal year. Wi-Fi 7 continues to drive our wireless product revenue. Over half of our wireless bookings and revenue now comes from Wi-Fi 7. The upgrade cycle is also creating a positive mix shift in average selling prices and further supports our gross margin outlook. Geographically, our bookings and revenue tend to fluctuate based on the seasonality of our business. This quarter, the Americas region exhibited strong performance, driven by continued bookings growth over the past two quarters. We also generated major competitive wins in EMEA and APAC, including some of the largest universities, hospitals, and retailers in their respective geographies. We expect all regions to grow in fiscal 2027. Operating margin in the fourth quarter was 15.7%, up 50 basis points from 15.2% in the prior year quarter. We had a really strong finish to the year, winning large deals and exceeding our goals for Platform 1, which drove higher incentive compensation expense. We also achieved our highest EBITDA on a dollar and margin basis in the last 11 quarters, in the past 11 quarters, generating $59 million of EBITDA at a 17.5% EBITDA margin. In addition to strong EBITDA, regenerated $65 million of cash flow and ended the quarter with a healthy $47 million of net cash. In addition, we repurchased $25 million worth of shares at a favorable average cost of $16.66 per share. Our cash conversion cycle improved to 25 days from 41 days last quarter, driven primarily by a reduction in days inventory outstanding. Lastly, just last week, we strengthened our financial flexibility and reduced interest expenses with the $500 million revolving credit facility, which provides additional working capital to fuel our growth. We also simplified our terms and covenants and improved our rate structure. For the full fiscal year, 2026, we continue to translate revenue growth into accelerated earnings growth, demonstrating the leverage and scalability of our operating model. On a vertical basis, we experience broad-based strength with particular standout bookings, growth in manufacturing, healthcare, retail, and sports and entertainment. it. Revenue of $1.28 billion grew 13% year-over-year, with non-GAAP earnings per share of $1.06, up 26% from $0.84 in the prior year. In fact, product revenue growth accelerated to 15% year-over-year. We achieved significant operating leverage as our operating margin expanded 60 basis points to 14.8%, up from 14.2% in the prior year. EBITDA for the full year was $210 million, up 20% year over year. In fiscal 26, we stepped up our buybacks to $87 million for the year, up from $38 million in the prior year. And we continue to prioritize the use of cash flow to repurchase shares. As we enter fiscal 2027, we believe that business is operating from a position of increasing strength based on our growth drivers and disciplined cost and expense management. This gives us confidence in our expectations for double-digit product revenue growth, visibility into our margin outlook, and more than 20% EPS growth in fiscal 27. At the end of fiscal 27, we expect half of our install base to be on Platform 1, which in turn drives accelerated growth and our high margin recurring revenue. For the first quarter of fiscal 27, we expect revenue to be in a range of $334 to $339 million, gross margin to be in a range of 62.2 to 62.7%, Operating margin to be in a range of 14.7% to 15.3%, and earnings per share to be in a range of $0.27 to $0.29. For the full fiscal year 27, we expect revenue to be in a range of $1.38 billion to $1.4 billion. dollars. Gross margin to be in a range of 62.2 to 62.7 percent. Operating margin to be in a range of 16.7 to 17.1 percent. And earnings per share to be in a range of $1.28 to $1.33 per share. We expect our fiscal 27 non-GAAP tax rate to be 23 percent for the year. And with that, I'll now turn the call over to the operator to begin the question and answer session.

Thank you. We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. And if you're muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Ryan Kuntz from Needham. Please go ahead.

Hey, this is Jeff Hobson on for Ryan. Thank you for the question. Just wanted to get an idea of customer buying behavior right now. You call that some great competitive wins. Just was wondering, Are they interested? Is it still a technological decision? Are you winning on being able to get supply and allocation with the memory or the consistent pricing that you guys are giving out? Just trying to understand what customers are doing out there right now.

Yeah, good, good, good, good question, Jeff. We haven't really seen the benefit in our results yet of the product availability that we're able to, you know, that we're able to support. I mentioned in my comments that we hear from our distributors and we hear from partners that they're getting notice from all of our competitors in different geos around the world with different product sets that they're elongating and stretching lead times. And that has created, and we have a few examples, I would say, of smaller deals and bookings that came in during the quarter, but we feel like that pressure is building momentum and the opportunity we think will show up in greater force this quarter and the next couple of quarters where the supply chain pinch is really going to hit people. So I think our teams have done a good job communicating. We have a special program around deal registration with a price guarantee where customers that want to move to extreme can guarantee a price and guarantee supply. And in today's environment, what we are hearing from distribution partners is that that's going to create a business for us. we see it in the funnel, and we're expecting to see that funnel convert. In terms of demand right now, what we're seeing is this long-term network upgrade cycle by enterprise customers. Cisco announced their refresh. We have the same thing with HP Juniper. So enterprise customers are contemplating an upgrade to their network. Obviously, everyone is talking about AI. security is very important. So having the most modern networking infrastructure is critical to support business needs. HP and Juniper combined, enterprise customers want to talk to three vendors. When they look at the enterprise and the enterprise campus, Cisco is always a default. Now you have HPE and Xtreme is more and more being included in that conversation. And I'll tell you that enterprise customers are kind of blown away when they see our technology they're blown away by our fabric they're blown away by the integration now of fabric into platform one what platform one can do and then as we come out with co-worker and and new tools think about a network assistant by your side uh and then in october uh we're coming out with operator mode where you can actually unleash ai for autonomous functions and tasks obviously there's always human in the loop and it's at your control there's governance you know there's all the um the capabilities in there but extreme is is a great alternative um and and the best choice today for customers don't want to you know that they want to leverage the new technology so you know today we're we're highlighting the innovation that we're bringing to market from a tech perspective our teams have embraced this uh they're getting more at-bats uh a higher winning rate, and then we do expect tailwinds to come from the fact that we have full supply and, you know, the normal lead times.

Thank you for that, and maybe just a follow up. It looks like platform well or platform one is going well with nearly 50% of the subscription bookings in the quarter. um i i guess the but the sas ar was probably a little bit lower than some were expecting um where where are we with the future parity kind of roadmap and and what kind of gives you that confidence that we can return to the to the mid 20 percent growth uh in the year coming up thanks yeah well yeah you have to keep in mind that uh last year you know the bar was high for us as it relates to growth in in q4 uh because of uh big wins that we had previously with with

john deere uh wins that we have with the japanese government and a spike uh in in that arr a year ago and we talked about the fact that you know that you know that that kind of set off a trend um and you know as we work through those those comparables uh you'll see us return to those 20% plus growth rates. But the two points to make, one, our feature development for the second half of the year, which in each six months, we're calling them waves in wave two. We had a huge amount of feature enhancement to platform one, specifically adding in our fabric customers and fabric capability and enhancements. So at this point, we have different cohorts of customers and all of our, you know, each of those cohorts, ABC, depending on size and complexity of customer are now eligible to move into platform one. So that is a, that's important. The May and June releases were huge. So we'll see that pick up momentum. The other thing is if we look at bookings, we had a very aggressive target. And that target of three, five, 10, 20 with a very steep ramp of platform one bookings, we exceeded. And so we exceeded the effective, call it a 40 million target by hitting over 50 million of bookings. So the adoption is real, the features are there. And so as we go forward, after the high bar for this quarter, we will expect after a few quarters as we move through the comparables to see that rate go back up. Kevin, I don't know if you want to add.

Yeah, I agree. It was just an elevated benchmark from Q4, but we'll be right back there at 20%. Thank you very much. Yeah.

Your next question comes from the line of Tomer zilberman from bank of america please go ahead hey guys um i wanted to ask the question maybe along the same veins of the previous question um if i look at the growth trajectory uh this quarter and what you set out for next year um you went from 11 to 15 growth the last few quarters to about 10 this quarter and guiding to about eight to eight and a half percent next year Can you just take us through the components of the growth trajectory, especially in respect to your long-term growth framework of 10%? Is it mostly about what you described earlier in terms of tough comps and extended lead times of the supply chain? It kind of remains tight.

Is there risk that you saw pull forward in the last few quarters and there's a reversion period before um uh growth uh re-accelerates thanks yeah i can yeah i i can take the uh the first part of this kevin and i'll let you uh sure and i'll let you jump in uh teller you know we're still calling 10 percent double digit uh you know product growth um and then as you know we're we're migrating customers, you know, off of traditional service break, fix, maintenance plans and combining them with platform one. And so you're seeing sort of that, your traditional service line go down and offsetting growth on the subscription side. But as I mentioned earlier, we're, you know, we're very pleased and we're exceeding, you know, our metrics for, you know, adoption for platform one so we're going through a transition we have to work through the transition you know on that migration uh at which at which point we'll hit an inflection point and then you'll see that recurring revenue growth kick back up after we work through um you know the integration and and and the combination with um absorbing the uh service contract traditional service contracts that will be declining. In terms of pull forward, now there's no unusual pull forward activity in the quarter from that standpoint. In fact, we built up backlog year over year. If you look at the comparisons, we've added backlog and we're off to a very healthy start from a bookings perspective in Q1. In this environment, You know, we felt like a 10% product growth call was a solid call and that, you know, we're working through that transition as it relates to the services offset with the growth of PlatformOne. Kevin, do you want to add anything to that?

No, I think you're right, Ed. I would say, you know, it's early in the year, right? This last year, we did well to overachieve our original guidance. And at the end of the day, you know, from our perspective, this is the visibility we have right now. And it is 10% product revenue growth. And we'll see how we hear things out.

John, one thing that we did that was unique in the marketplace is we put something called a, you know, it's a deal registration price guarantee. Basically, you know, our partners can come in and they can register a deal with us. So we basically protect them that it's that it's their project and their deal. And we protected the price out to the end of October. So there was really no incentive or need for customers to to pull in their orders into the quarter, given the fact that they're price protected out into out into our fiscal Q2. It's been very popular. It's been very well received. and, you know, we have a really nice funnel of opportunities that are, you know, that are building there.

Got it. Maybe as one more follow-up, I think when we last spoke, you disclosed you had two price increases versus some of your larger competitors that had up to four, if not more, price increases. Can you just remind us, have the two already flowed through and And how do you view the opportunity to maybe catch up to some of your peers in terms of adding more price increases and, you know, offering another form of growth leverage?

Yeah, I'll take this. And, Kevin, you can fill in. Yeah, we have two price increases. And as you mentioned, many of our competitors have had more than that. And we typically price under Cisco, their umbrella, and bring a price advantage into the market for our customers. And we will continue to look at that. And so I think this is an environment of price increases, and we will look at that going forward. On the services side of the business, we have an annual increase. And then on the product side, we're opportunistic in terms of how we look at that. But you should expect to see us continue to raise price on the product side. But it's just not as as as pre-programmed as as the services side of the business. Kevin, do you want to add anything?

The only thing I think I'd add, Ed, is that at this point, all of our quotes have the full impact of both November and the March price increases in them. So I think the answer to your question is absolutely, we do have that included at this point. And then it's a balance of being able to retain some of that price increase with discounting. And as you can see from a margin perspective, we're actually doing a good job on that with rising margins. So I feel like we're doing a good job kind of balancing price increases in a in a market that's fairly price sensitive on networking equipment. But yet also, you know, our ability to provide available networking equipment pretty much across the entire portfolio is helping us with opportunities.

Thank you, guys.

Your next question comes from the line of Dave Kang from Be Riley.

Please go ahead. uh thank you uh come on name uh first question uh just wondering if you can go over health of your key vertical starting with uh government and education um sure dave um you and you just want to understand that the health of them when you say the health are you referring to the bookings growth that we're experiencing there okay bookings you know visibility yeah i'll go ahead and let you take it yeah yeah well i you know we mentioned it and dave you see it in the customer examples we're giving customer examples we're trying to give you a flavor of the kinds of customers that

we're winning you know across our geo so you know we mentioned you know a you know a big university win um in in sydney australia uh this is the largest deal that we've ever done in anz um and driven by a platform one and fabric, you know, combined. But there, you know, you have healthcare. We also mentioned healthcare wins throughout EMEA, our enterprise agreement with the largest healthcare provider in the Middle East, healthcare in the U.S. and U.K. and really around the world. Government customers, you know, that if you look at our customer mix by vertical, Dave, It's not really changed. It's pretty remarkably consistent. And so that really hasn't changed. I talked about some of the advantages that we're bringing. Getting the C5 certification in Germany was a big deal. That's important for us to take share and continue to expand on the government side in Germany, which is our biggest market in EMEA. That's a big one. We have really a across all of our verticals, our technology development in terms of the fabric and platform one, in terms of the wifi innovations that we talk about, all of this is playing well into each of our verticals across all of our geos. And it's supporting our move up market when you look at the kinds of customers that we're winning and the kinds of projects that we're winning. So I'm just going to say, you know, solid demand, no change to vertical mix to note with us moving up market, you know, across our geos.

So it sounds like there's really no vertical that we should be worried about?

No, not in our case. I mean, our forecast is very consistent on the vertical front.

Got it. And just America, as it was very strong, I'm just wondering how sustainable that will be.

Yeah, I'll let Kevin talk about some of the mechanics and how we report revenue versus booking and trying to gauge true demand. And if you look at the 30 plus percent growth numbers, it's it's overstating the revenue growth in America's and understating revenue growth in EMEA and and Asia Pacific. and america's as a geo is definitely our fastest growing market in fiscal 26 followed by emia followed by asia pacific if you recall the prior year we won the japanese government and the massive project that created a tough comp for asia pacific but as we as we transition into fiscal 27 you'll see asia pacific you know high up on the list from a growth perspective and then higher growth rates in EMEA than kind of what you would see in Americas. But as I said before, each of our geos, we have strong double-digit growth forecasts from a booking standpoint. Kevin, do you want to add to that?

I would just add, yeah, and I would just add.

The differentiation between revenue and bookings.

Yeah, I just add there is some timing differences between bookings and revenue, especially with DISC-D buying cycles. also playing kind of a role here in different parts and regions of the world um we have some seasonality for instance in the fourth quarter as well within the americas with the e-rate ion cycle and so that that plays out in the fourth quarter but then we see other parts of the world kind of you know have have other stronger you know quarters so but i would say in general the demand across all of our different regions of the world was still from a bookings perspective still very strong. And we expect, again, all three of our regions to grow in fiscal 27 year-over-year.

Got it. And my last question is regarding margins. In the last couple of quarters, you talked about a number of professional installations, how that's going to pressure margins.

Just wondering what happened in the fiscal fourth quarter and what should our expectation be for you know going forward kevin i'll i'll start off and then have you you jump in but sure gane as you as you know we you know we were guiding it at a uh 62.3 margin uh for this quarter um and we had some we had favorability some of that does have to do with professional services mix um we also had strength and our product margins um and yet we have confidence to take that up to 62.5 as a guide going into Q4 and for the rest of the year. In this environment, we don't think it makes sense to be too aggressive and how we call that number, but you'll notice that we've gradually been taking that up in a very challenging environment. um and yeah we have to as we forecast the business we have to look at mix as it relates to pro services and and obviously wire wireless the portfolio kevin do you want to add to that yeah i think you're right ed i mean at the end of the day we didn't quite have as much professional services as we originally anticipated in the quarter to drag down margins and you saw the product margin improvements which is really you know an emblematic of the supply chain kind of

management that we had, the big supply chain management.

Got it. Thank you.

Your next question comes from the line of David Vought from UBS. Please go ahead.

Great. Thanks, guys, for taking my question. Maybe Kevin and Ed, this is just more of a longer-term philosophical question. Obviously, the networking market continues to be incredibly strong.

You guys are doing exceptionally well.

But the component environment and the supply chain environment is obviously a constraining factor and i think you know i think everyone can acknowledge leading to you know maybe elevated costs and long lead times how do we think about that mix in terms of what this means longer term for your profitability because i think kevin in the past we've talked about you know long-term targeting getting to 64 to 66 and to ed's just recent comment you know obviously we want to be prudent and not get out ahead of our skis but just how do we think about the environment today, maybe vis-a-vis what the environment looked like six months ago or 12 months ago, and how do you think about that in the context of a longer-term perspective on your business? Thanks.

Thanks, David. And Kevin, again, I'll jump in and then let you pick it up. But obviously, David, we have to look at it from two sides, right? We were talking about pricing. That question came up. We have to balance how much we raise price and how does it impact demand from customers so that's something that we look at you know we're we are not the industry leader and so you know we have a uh you know we're priced below uh the larger competitors in the marketplace which gives us an advantage so uh from a pricing standpoint you know that that is a lever uh that we're able to to kind of push and pull if you will um and and we do that and we're very and i'd say We're very good at that, and we expect to capture the price increases we put in place. The other thing that we've done, which is exceptional in the industry, is we've solved for the supply chain constraint. So I can tell you we don't have supply chain constraints at Xtreme, which is highly unusual. It has to do with many factors. We were early in recognizing the supply issues. we have literally 12 different initiatives underway at extreme in terms of sourcing new vendors broadcom has been an amazing partner for us in introducing us important relationships for us we're turning up new sources of supply they've also been very helpful for us and ceo level connections board level connections at micron you know our traditional vendor We've gotten in on Micron now and we're now part of their supply mix and we're on their radar going direct with them in the open market broker markets. We've done a great job. Samsung is a large customer of Xtreme. Samsung's global headquarters runs on Xtreme and our sales leadership in that country has excellent relationships. And we've unlocked supply from Samsung at amazing prices. So I'm just giving you some examples of here you have a country manager in sales unlocking supply. You have cross-functional team members getting very creative about how we solve for this. So the net-net for us is we have clear visibility for supply, as we mentioned in our comments, into 28 and beyond. One, we have new suppliers coming online, and I'm confident saying that supply just isn't an issue. And then it's a question of pricing. Even in the case of Micron, where they shifted their products to these higher margin products, if you will, at the same time, to support customers like Xtreme, they're still building more fabs for the older technology, if you will. So, we see increasing supply coming from older vendors that we've dealt with, and then we have new sources of supply, and we're confident that that margin goal will come back. And then the real shift in the margin goal will be the evolution of Platform 1, and as we pivot into 28, where we'll have real confidence in seeing that margin move. Kevin, do you want to ask?

Maybe just one.

I'm sorry, go ahead, Ed.

I mean, the only thing I would add, Ed, is as well, Dave, if you think about the one stat we had in the quarter, we had 187 customers over a million dollars. And that's up pretty heavily from last year. And we had 47 customers in particular in Q4 with over a million dollars. And so we're going up market. When we go up market, there are larger deals. When you get larger deals, and as we continue to move with the AI leadership position that we have and going up market to these larger customers and then and then attracting new resellers with that larger kind of capacity to be able to find larger customers. That's going to help us, you know, from a demand perspective and growth perspective in future years. So that's the that's the strategy that we have. And I think it's playing out well with platform one with going up market, and I think we've got a long cycle here of continued growth.

Great. Now, just a follow-up, and I appreciate all that color. That was incredibly helpful. Just maybe, I know this is maybe a difficult question, but when you think about all those vectors and the different sort of matrices, whether it's demand, price, discounting, are you trying to solve for gross margin rate or gross profit dollars right now, given the environment that we're in?

I'm just trying to get a sense for how you're thinking about all the moving pieces um i i don't think we're i mean so i don't think we're trying to solve for one or the other to be honest with you dave i mean we we first and foremost we're a growth company and so we're focusing on growth and being able to take as much share as we possibly can you know in this market i think second we want to do it profitably and as ed and i talked about even at the analyst day you know we want to grow more than 10%, you know, in the business. And we want to double that amount from a profit perspective. That's what we just, you know, landed on in 2026. And, you know, hopefully we can continue to be that way in 2027. And so as we think, as we think about, you know, just what we're trying to do here is grow the company and grow it with scale and leverage to continue to provide, you know, stronger EPS, which is going to underpin a growing stock price.

Yeah, I think, I mean, David, I think, yeah, Kevin, good answer. Net network, we're doing both. And we think we can do both. So again, we're pointing to, you know, growth numbers for this year. And then we're also pointing to, you know, expanding gross margins. And I know, again, 62.3 target in Q4, 62.5 target in Q1, and over the long term, in our long-range plan, as you look at the migration of customers over to Platform 1, you see a real gross margin benefit. That's right.

Yeah, great. Thanks, guys.

A reminder, if you would like to ask a question, please press star 1 on your telephone keypad. Your next question comes from the line of Eric Martinuzzi from Lake Street Capital Markets. Please go ahead.

Yeah, Kevin, I wanted to follow up on your comment there about the 187 customers that ordered with over a million in bookings. How did that compare? What was the number in FY25? And then I have a follow-up.

Yeah, we had 168 in 25 there, Eric. Oh, sorry, 168.

Okay. And then is, for FY27, is there an expectation about, you know, an assumption of growth? Is there something in the sales plan where we are targeting, where, you know, we've got, based on the pipeline that we have now, is there an expectation for that number to grow or is it just kind of taking it as it comes?

Kevin, let me take that and you can. The answer is we have great visibility, Eric, into the funnel. And in terms of our funnel metrics, the number of opportunities that we have that are over a million dollars, if you look at the funnel as where we sit today versus where we were a year ago you know that that that that funnel in terms of the the number of opportunities is up i call it in the mid-teens and then if you look at this the the the the size of those opportunities um that is up as well into the mid-teens so if you look at again it goes back to the you know the funnel creation and i talked about the alignment of our go-to-market teams We have 19 pods between marketing, direct sales, channel sales. They're doing a great job. They have very specific funnel creation targets and funnel conversion targets. And within all of these, we're incentivizing our teams to go after bigger deals. So it's nice to see it when you have a strategy, you're executing on the strategy, and it shows up in the numbers. And in our funnel, that's what gives us a lot of confidence in what we're calling here because we're definitely moving up market as we look forward based on the metrics and the analysis of the opportunities in our funnel.

And that your channel that you currently have is supporting that. It's not like we need to develop new reseller relationships.

And that's the other thing that's going on, Eric. So we have opened up the doors to larger customers and larger partners, and that channel is going to be critical for us. You know, I can talk about some of the largest channel partners that Xtreme has never had relation. A year ago, we could say we were ground zero with some of these bigger partners, and we've made tremendous progress. These are partners that talk about doing hundreds of millions of dollars with Xtreme, not tens of millions of dollars with Xtreme. And so it's a longer lead time, if you will, to nurture and develop these relationships. But we've done that in the U.S. with some key partners that we're very excited about. We're doing that in Europe. As you may recall, we have a new sales leader who is running Europe for us, who came from Juniper, who is coming. And he strengthened some of these larger partner relationships. And in our funnel, that's contributing to the larger deals that we're seeing in our funnel. um and this is where there's the combination of these larger partners uh training up on our technology and being surprised and impressed and excited by the technology differentiation that they didn't realize one two the commercial terms the kinds of things that we're doing the availability of supply um and and the relationships and so this is how uh this is you know it's it's all a combination of channel and it's a combination of our sales teams being able to manage these kinds of projects that are larger more complicated the operational support that we that we that we provide and our marketing teams uh and how we're targeting and the kinds of events that we're doing you know all these things are coming together and as i mentioned before we have 19 specific strategies based on how we go to market um leveraging best practices from across the the company and you know we're we're executing and we see it because if we're looking at funnel creation funnel conversion and obviously that ties into our bookings forecast and um yeah you can tell just you know listen we're we're excited about how all that's coming together got it thanks at this time there are no further questions i will now turn the call back to ed meyer court president and ceo for closing remarks uh jade thank you and uh you know for all the investors on the call um we appreciate uh your time and and uh attention and and work on extreme i also want to we have employees and partners uh suppliers people that tune into the call i want to thank you for the partnership and the hard work delivering the results one thing i will say we we are very excited about the release of agent one co-worker scheduled to come at the end of this month uh as well as our operator mode which we are unveiling in amsterdam on october 20th investors, you're welcome to join if you want to make the trek over there to see the technology. And as I mentioned before, we are going to be demonstrating and showing technology that will become GA this year that is well in front of our much larger competitors. And if you want to get a flavor for that, please come over and we'll welcome you and make space for you um in in that uh event um so again thanks to all of you for the participation and uh have a great day this concludes today's call thank you all for attending you may now disconnect