Company: CALX
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001406666-25-000045
Chunk: 36

Company: CALIX, INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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5 is lower than the corresponding period in 2024 primarily due to lower return-to-provision adjustments and higher excess tax benefits from share-based compensation exercises, offset by a relatively higher level of non-deductible stock-based compensation for executive officers. The effective tax rate for the nine months ended September 27, 2025 is higher than the corresponding period in 2024 primarily as a result of higher pre-tax earnings with a relatively higher level of non-deductible stock-based compensation for executive officers.

Our income taxes may be subject to fluctuation during the year and in future years as new information is obtained. This may affect the assumptions used to estimate the interim income tax provision, including factors such as actual results differing from our estimates of pre-tax earnings in the various jurisdictions in which we operate, which could impact the recognition of our deferred tax assets, further benefits from stock option exercises, investments in our foreign operations, the recognition or de-recognition of tax benefits related to uncertain tax positions and changes in or the interpretation of tax laws in jurisdictions where we conduct business.

Liquidity and Capital Resources

We fund our operations and investing activities from cash flow generated from our operations as well as the issuance of common stock under our equity incentive plans. As of September 27, 2025, we had cash, cash equivalents and marketable securities of $339.6 million, which consisted of deposits held at banks and major financial institutions and highly liquid marketable securities such as U.S. government and its agency securities, corporate debt securities and commercial paper.

Operating Activities

Net cash provided by operating activities was $88.9 million for the nine months ended September 27, 2025 and consisted of net income of $10.7 million and non-cash charges of $85.1 million partially offset by cash flow decreases of $6.8 million reflected in the net change in assets and liabilities. Non-cash charges primarily consisted of stock-based compensation of $66.0 million, depreciation and amortization of $13.3 million and deferred income taxes of $8.8 million partially offset by the net accretion of available-for-sale securities of $3.0 million.

Cash flow decreases resulting from the net change in assets and liabilities primarily consisted of an increase in accounts receivable of $8.1 million due to higher revenue, an increase in inventory of $5.3 million to support increased revenue, a 

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decrease in deferred revenue of $3.7 million and a decrease in accrued liabilities of