Company: CALX
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0001406666-25-000016
Chunk: 103

Company: CALIX, INC
Filing Date: 2025-04-22
Form: 10-Q
Item: Part I, Item 2
Chunk 103
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 March 30, 2024.

Gross Profit and Gross Margin

The following table sets forth our gross profit and gross margin (dollars in thousands):

 Three Months Ended March 29,2025March 30,2024VarianceinDollarsVarianceinPercentGross profit$122,708 $122,577 $131 — %Gross margin55.7 %54.2 %

Gross profit was relatively flat comparing the three months ended March 29, 2025 to the corresponding period in 2024. Our gross margin increased by 150 basis points for the three months ended March 29, 2025, compared to the corresponding period in 2024, primarily related to the continued growth in our platform, cloud and managed services being a greater percentage of our total revenue.

Operating Expenses

Sales and Marketing Expenses

The following table sets forth our sales and marketing expenses (dollars in thousands):

 Three Months Ended March 29,2025March 30,2024VarianceinDollarsVarianceinPercentSales and marketing expenses$58,059 $53,897 $4,162 8 %Percent of revenue26 %24 %

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Table of Contents

Sales and marketing expenses for the three months ended March 29, 2025 increased by $4.2 million compared with the corresponding period in 2024 primarily due to increases in personnel expenses of $2.8 million, stock-based compensation of $1.6 million and travel expenses of $0.7 million. These increases were partially offset by decreases in outside services of $0.4 million and depreciation and amortization of $0.4 million.

For the three months ended March 29, 2025, sales and marketing expenses as a percentage of revenue increased to 26% from 24% in the same period in 2024 due to lower revenue and the increases described above. We expect our investments in sales and marketing will increase slightly in absolute dollars on a year-over-year basis, but decline as a percentage of revenue, as we continue to land new customers and expand our platform, cloud and managed services.

Research and Development Expenses

The following table sets forth our research and development expenses (dollars in thousands):

 Three Months Ended March 29,2025March 30,2024VarianceinDollarsVarianceinPercentResearch and development expenses$43,980 $44,422 $(