📊 CALX Key Takeaways
Is Calix, Inc. (CALX) a Good Investment?
Calix demonstrates solid 20.3% revenue growth with strong 56.9% gross margins, but operational efficiency remains a critical concern with only 4.5% operating margins and weak free cash flow generation (2.3% FCF margin). The dramatic net income growth (160% YoY) coupled with minimal actual cash generation raises quality-of-earnings questions, though the fortress balance sheet (zero debt, 3.29x current ratio) provides downside protection.
Calix shows solid fundamental momentum with 20.3% revenue growth, sharply improved net income and EPS, and strong free cash flow generation. Its balance sheet is exceptionally clean, with no long-term debt, high liquidity, and substantial equity, which supports resilience and reinvestment capacity. The main constraint is that operating and net margins remain thin, so the durability of recent earnings improvement still needs to be proven.
Why Buy Calix, Inc. Stock? CALX Key Strengths
- Strong revenue growth of 20.3% YoY with 56.9% gross margins indicates market demand and pricing power
- Fortress balance sheet with zero long-term debt, $54.6M cash, 3.29x current ratio, and 289x interest coverage provides financial stability
- Net income surged 160.1% YoY to $11.2M, showing improved bottom-line profitability trajectory
- Revenue growth is strong at 20.3% YoY, indicating healthy demand and business expansion
- Gross margin of 56.8% and free cash flow of $115.52M suggest good product economics and cash conversion
- Balance sheet strength is high with no long-term debt, 4.24x current ratio, and $143.09M in cash
CALX Stock Risks: Calix, Inc. Investment Risks
- Critically low operating margin (4.5%) despite high gross margins suggests significant uncontrolled operating expenses or SG&A burden
- Weak free cash flow generation ($6.5M on $280M revenue; 2.3% FCF margin) raises concerns about earnings quality and sustainability of profit claims
- Minimal returns on equity (1.5%) and assets (1.2%) indicate poor capital efficiency and suboptimal deployment of the $951.4M asset base
- Operating margin of 2.1% and net margin of 1.8% remain low, leaving limited room for execution missteps
- Returns on capital are still modest, with ROE of 2.1% and ROA of 1.7%
- Recent earnings growth may be difficult to sustain if cost discipline weakens or revenue growth slows
Key Metrics to Watch
- Operating margin expansion rate and operating expense ratio trend
- Free cash flow absolute growth and FCF margin sustainability relative to net income growth
- Return on equity and return on assets trajectory to assess capital allocation effectiveness
- Operating margin expansion
- Free cash flow margin
Calix, Inc. (CALX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.3% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.29x current ratio provides a solid financial cushion.
CALX Profit Margin, ROE & Profitability Analysis
CALX vs Telecom Sector: How Calix, Inc. Compares
How Calix, Inc. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Calix, Inc. Stock Overvalued? CALX Valuation Analysis 2026
Based on fundamental analysis, Calix, Inc. has mixed fundamental signals relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Calix, Inc. Balance Sheet: CALX Debt, Cash & Liquidity
CALX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Calix, Inc.'s revenue has grown significantly by 20% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.42 reflects profitable operations.
CALX Revenue Growth, EPS Growth & YoY Performance
CALX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $220.2M | -$4.8M | $-0.07 |
| Q3 2025 | $200.9M | -$4.0M | $-0.06 |
| Q2 2025 | $198.1M | -$199.0K | $0.00 |
| Q1 2025 | $220.2M | $103.0K | $0.00 |
| Q3 2024 | $200.9M | -$4.0M | $-0.06 |
| Q2 2024 | $198.1M | -$7.9M | $-0.12 |
| Q1 2024 | $226.3M | $103.0K | $0.00 |
| Q3 2023 | $236.3M | $13.4M | $0.19 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Calix, Inc. Dividends, Buybacks & Capital Allocation
CALX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Calix, Inc. (CIK: 0001406666)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CALX
What is the AI rating for CALX?
Calix, Inc. (CALX) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CALX's key strengths?
Claude: Strong revenue growth of 20.3% YoY with 56.9% gross margins indicates market demand and pricing power. Fortress balance sheet with zero long-term debt, $54.6M cash, 3.29x current ratio, and 289x interest coverage provides financial stability. ChatGPT: Revenue growth is strong at 20.3% YoY, indicating healthy demand and business expansion. Gross margin of 56.8% and free cash flow of $115.52M suggest good product economics and cash conversion.
What are the risks of investing in CALX?
Claude: Critically low operating margin (4.5%) despite high gross margins suggests significant uncontrolled operating expenses or SG&A burden. Weak free cash flow generation ($6.5M on $280M revenue; 2.3% FCF margin) raises concerns about earnings quality and sustainability of profit claims. ChatGPT: Operating margin of 2.1% and net margin of 1.8% remain low, leaving limited room for execution missteps. Returns on capital are still modest, with ROE of 2.1% and ROA of 1.7%.
What is CALX's revenue and growth?
Calix, Inc. reported revenue of $280.0M.
Does CALX pay dividends?
Calix, Inc. does not currently pay dividends.
Where can I find CALX SEC filings?
Official SEC filings for Calix, Inc. (CIK: 0001406666) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CALX's EPS?
Calix, Inc. has a diluted EPS of $0.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CALX a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Calix, Inc. has a BUY rating with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CALX stock overvalued or undervalued?
Valuation metrics for CALX: ROE of 1.5% (sector avg: 15%), net margin of 4.0% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
Should I buy CALX stock in 2026?
Our dual AI analysis gives Calix, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CALX's free cash flow?
Calix, Inc.'s operating cash flow is $14.6M, with capital expenditures of $8.1M. FCF margin is 2.3%.
How does CALX compare to other Telecom stocks?
Vs Telecom sector averages: Net margin 4.0% (avg: 14%), ROE 1.5% (avg: 15%), current ratio 3.29 (avg: 1).