The Portnoy Law Firm announced a class action lawsuit on behalf of investors who purchased securities of Calix, Inc. between January 28, 2026, and April 21, 2026. Investors have until July 27, 2026, to file a lead plaintiff motion. The litigation alleges violations of federal securities laws, claiming the company misled investors regarding its business prospects and margins. The core allegation is that Calix failed to disclose that its first quarter margins had significantly benefited from an advanced supply of memory components acquired at below-market prices, which was dwindling and forcing the company to purchase components at rising market prices, creating negative margin pressure not previously communicated to the market.

On April 21, 2026, Calix reported a non-GAAP gross margin of 57.2% for the first quarter of 2026, a decrease of 80 basis points sequentially. The company provided guidance for the second quarter of 2026 gross margin at 55.8%, a decline of 140 basis points from the previous quarter. Chief Financial Officer Cory Sindelar stated that advanced purchasing had allowed the company to avoid higher costs in the first quarter, but that supply had run its course, forcing the company to face market prices. The company expects its non-GAAP gross margin to decline between 50 and 150 basis points for the year.

Following the disclosure, Calix's stock price fell $6.93 per share, or 13.98%, to close at $42.65 on April 22, 2026. The stock had previously traded as high as $55.61 on February 20, 2026. Institutional investors who acquired shares near the Class Period high and held through the post-disclosure close experienced a significant decline. The lawsuit contends that the market had priced CALX shares based on a margin trajectory that was unsustainable once the company exhausted its pre-purchased memory inventory.

The lawsuit names Chief Executive Officer Michael Weening and Chief Financial Officer Cory Sindelar as individual defendants, alleging they controlled the dissemination of materially misleading statements. According to the allegations, these executives had direct supervisory involvement in day-to-day operations, influenced the content of SEC filings, and possessed the ability to prevent misleading statements. Both executives personally certified the accuracy of the company's Form 10-K for the period ended December 31, 2025, under Sections 302 and 906 of the Sarbanes-Oxley Act. The complaint argues these certifications were made while the company's advanced supply of memory components was dwindling, meaning the record 58% non-GAAP gross margin reported for Q4 2025 was sustained by a temporary procurement advantage.

Calix's Form 10-K for the period ended December 31, 2025, filed February 20, 2026, contained broad risk factor language acknowledging dependency on third-party vendors and a "history of fluctuations in our gross margin." The filing stated that component shortages "have and could continue to disrupt our business and adversely impact our gross margin." Gross margin was described as subject to variation based on "customer, geographic and product mix" and "costs associated with components and materials." The complaint challenges these disclosures as materially deficient because they framed memory cost risk as hypothetical when it was allegedly already materializing.

Key Dates and Class Period

Under the Private Securities Litigation Reform Act of 1995, the lead plaintiff is typically the investor with the largest financial interest in the relief sought. There is no minimum dollar loss required to apply. Affected investors may contact attorney Lesley F. Portnoy by phone at 310-692-8883 or via email at lesley@portnoylaw.com to evaluate their recovery options. Shareholders can also join the case via the firm's website at https://portnoylaw.com/calix-inc . The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.

Calix, Inc. reported unaudited financial results for its second quarter of 2026, achieving record revenue of $293 million, a 21% year-over-year increase. The company’s adjusted earnings per share of $0.47 surpassed analyst consensus estimates of $0.40, representing a 42.42% increase over the prior year. This performance was driven by strong demand for the company’s AI-native Calix One platform, which led to record software and service revenue and remaining performance obligations (RPOs). President and CEO Michael Weening and CFO Corey Sindelar highlighted the company’s strategic focus on AI, noting that the Calix One platform enables service providers to transform operations through agentic workflows. The company provided guidance for the third quarter of 2026, expecting revenue between $301 million and $307 million, and raised its annual revenue growth outlook to the higher end of the 15% to 20% range.

Financial Performance

The company’s revenue growth was fueled by broad-based demand across its customer segments, including residential, business, municipal, and MDU markets. Software and service revenue reached $50 million, up 16% year-over-year, while RPOs hit a record $386 million. The table below summarizes the key financial metrics for the quarter:

Operational Highlights

Calix completed its platform migration, resulting in an 810 basis point sequential improvement in non-GAAP software and service gross margin. The company emphasized its commitment to human-centric AI deployment, which contributed to operating leverage in the second quarter. Non-GAAP operating expenses were approximately $122 million, or 42% of revenue, down from 45% in the prior quarter. Despite challenges such as higher memory costs, the company maintained a strong balance sheet with cash and investments totaling $194 million. Calix deployed $69 million to repurchase 1.6 million shares during the quarter. The company expects appliance gross margins to bottom in the third quarter of 2026 as its memory surcharge program takes effect.