Calix (CALX) Stock Forecast & Price Target

Calix Inc is poised for significant growth, with anticipated 4Q25 revenues projected to surpass a 30% increase year-over-year, reflecting strong customer adoption. The company has demonstrated remarkable financial health, as evidenced by a 200% year-over-year increase in cash flow from operations, reaching $46 million, and a nearly 300% rise in non-GAAP free cash flow to $40 million. Additionally, the total remaining performance obligations (RPO) grew 18% year-over-year to $385 million, highlighting the ongoing demand for Calix’s software platform offerings and the strength of their long-term customer contracts.

Calix Inc. is experiencing a decline in sales growth, projecting only a 3% to 5% increase quarter-over-quarter, which marks a downturn from the previously higher growth rates of 7% to 10%. The company's operating margin has also seen a significant decline of 300 basis points quarter-over-quarter, coupled with increased operating expenses that surpassed expectations, leading to concerns regarding profitability. Furthermore, in light of a potential macroeconomic slowdown, there may be reduced consumer spending on broadband, alongside increased competition from alternative broadband technologies, which could negatively impact Calix's market opportunities.