# Calix reports hardware margin pressure as software contracts expand

_Published Saturday, November 7, 2026 at 8:18 AM EST · Infrastructure, Products · Latest · Tier 2 — Notable_

![The Globe and Mail — Primary](https://www.theglobeandmail.com/pf/resources/assets/meta/twitter-summary-240x240.png?d=988)

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.

## Sources

- [The Globe and Mail](https://www.theglobeandmail.com/investing/markets/stocks/CALX/pressreleases/8661598/calix-earnings-call-signals-growth-despite-margin-pressures/)

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Canonical: https://techandbusiness.org/newswire/pWPAwyal-DZ4jVs0gXKD_g
Published: 2026-11-07T13:18:36.320Z
Story chronology: 2026-11-07T12:46:00.000Z
Retrieved: 2026-11-08T05:20:40.088Z
Publisher: Tech & Business (techandbusiness.org)