Company: CALX
Filing Date: 2025-07-22
Form Type: 10-Q
Source: 0001406666-25-000035
Chunk: 35

Company: CALIX, INC
Filing Date: 2025-07-22
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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arsVarianceinPercentJune 28,2025June 29,2024VarianceinDollarsVarianceinPercentInterest and other expense, net$3,036 $2,674 $362 14 %$6,127 $5,174 $953 18 %Percent of revenue1 %1 %1 %1 %

Interest and other expense, net increased by $0.4 million and $1.0 million as compared with the corresponding periods in 2024 mainly due to a larger cash and marketable securities balance.

Income Taxes

The following table sets forth our income taxes (dollars in thousands):

 Three Months EndedSix Months Ended June 28,2025June 29,2024VarianceinDollarsVarianceinPercentJune 28,2025June 29,2024VarianceinDollarsVarianceinPercentIncome taxes (benefit)$3,626 $(724)$4,350 (601)%$5,423 $(359)$5,782 (1,611)%Effective tax rate105.8 %8.3 %1,241.0 %4.4 %

For the three and six ended June 28, 2025, our income tax expense was $3.6 million for an effective tax rate of 105.8%, which differed from the statutory rate of 21% primarily due to the effect of non-deductible stock-based compensation for executive officers offset by the favorable impact of U.S. federal research tax credits, excess tax benefits from stock-based compensation and the U.S. tax impact of foreign operations. The effective tax rates for the three and six months ended June 28, 2025 are higher than the corresponding periods 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.