Calix (CALX) Q2 2025 Earnings Transcript

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Tuesday, July 22, 2025 astatine 8:30 a.m. ET

• President and Chief Executive Officer — Michael Weening

• Chief Financial Officer — Cory J. Sindelar

• Vice President, Investor Relations — Nancy Fazioli

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Michael Weening: Thank you, Nancy. As I stated successful our past net call, the investments we made successful 2024 to negociate done the post-pandemic play are yielding results and the marketplace is evolving arsenic we predicted. Cory volition screen our exceptional 2nd quarter, which is simply a testament to our semipermanent strategy, our Calix team, the unthinkable customers we service and the partners who enactment us. As I proceed to state, the manufacture is astatine a crossroads. A broadband supplier indispensable determine if they volition clasp the bequest mindset of a speed-based web relation who tries to outgo chopped their mode to maturation portion being commoditized.

As our homes passed is not a measurement of occurrence arsenic it does not warrant a revenue-generating subscriber, portion the palmy broadband supplier is the 1 that delivers unthinkable experiences crossed each segments, thereby establishing a marque that is loved by the communities they serve. The effect is higher gross per lawsuit crossed each segments: residential, concern and municipality, higher Net Promoter Scores, which output lawsuit loyalty and little churn. That experience-based occurrence is what Calix enabled arsenic we ever deliberation subscriber in, not web out.

Our mindset is grounded successful the experiences beyond the undifferentiated velocity of a tube via our unsocial appliance-based platform, unreality and managed services exemplary that helps our customers alteration with the enactment of our industry-leading lawsuit occurrence team. Our property releases often item our customers' quality to usage differentiated experiences to present worth for members and investors arsenic evidenced by a treatment I had with a medium-sized lawsuit past month. That lawsuit launched SmartBiz successful precocious 2024 and saw a 250% summation successful gross per tiny concern subscriber by delivering a amended experience.

Experiences are the aboriginal of broadband, and our level is unsocial successful that it tin code residential, tiny business, MDU and municipal needs with the aforesaid appliances unreality and managed services, which brings maine to the 2nd adjacent larger disruption that the satellite is paying attraction to, artificial intelligence. Since precocious 2023, our squad has believed that the semipermanent interaction of AI is important and represented the adjacent captious constituent of the Calix platform. More importantly, we person ensured that our teams bash not underestimate the gait of change. This is not a mean exertion curve. The gait of alteration successful AI is staggering.