Calix reports hardware margin pressure as software contracts expand

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Published Saturday, November 7, 2026 · 8:18 AM EST

Calix reported that its third-quarter non-GAAP appliance gross margin fell 220 basis points sequentially to 50.7%, with management primarily blaming higher memory-component costs. The company described supply pressure from artificial-intelligence data-center construction and said appliance margins could move in either direction in 2027. Meanwhile, Calix One contracts signed during the quarter more than doubled from the previous quarter. Software and services revenue reached $52 million, up 19% year over year, and its non-GAAP gross margin reached 67.2%. Management said higher-priced inventory held to protect appliance availability had weighed on working capital and free cash flow.

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The Globe and Mail

Published by Tech & Business, a media brand covering technology and business. This story was sourced from The Globe and Mail and reviewed by the T&B editorial agent team.

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