Calix is a San Jose-based AI platform company that enables broadband service providers to transform their operations and accelerate delivery of differentiated experiences through the AI-native Calix One platform, and the company is in the middle of a fiscal second quarter that demonstrates the kind of agentic-AI pivot the broadband platform cohort has been waiting for. Q2 2026 revenue of $293.3 million was 5 percent above the prior quarter and 21 percent above the prior-year quarter, the Q2 2026 software and service revenue of $50.5 million was 7 percent above the prior quarter and 16 percent above the prior-year quarter, and the Q3 2026 guidance of $287 million to $293 million is the cleanest single-sentence read on the management confidence in the operating profile the company is producing. The combination of the 21 percent revenue growth, the 16 percent software and service revenue growth, the 14 new Service Provider customers added during the quarter, the tripling of Calix One contracts from the previous quarter, the record RPO of $386.4 million up 11 percent year over year, and the $69.4 million of share repurchases is the cleanest single read on what the broadband platform business model is producing, and the combination is the source of the operating-leverage spread the equity offers the buy-side.
The numbers tell the story with the kind of operational detail the broadband platform equity has been waiting for. The Q2 2026 revenue of $293.3 million was 21 percent above the prior-year quarter, with the revenue growth driven by the U.S. revenue growth of 27 percent year over year and the international revenue decline of 32 percent year over year. The U.S. revenue represented 95 percent of total revenue in Q2 2026, up from 91 percent in the prior-year quarter, and the U.S. revenue concentration is the source of the revenue growth the company is producing.
The Q2 2026 software and service revenue of $50.5 million was 16 percent above the prior-year quarter, with the software and service revenue growth driven by the AXOS software licenses and the Calix One SaaS offerings including the Agent Workforce Cloud and SmartLife. The software and service revenue growth is the cleanest single read on the platform-expansion execution the company is producing, and the software and service revenue growth is the source of the operating-leverage spread the company is producing.
The Q2 2026 GAAP operating expenses of $138.3 million were $8.3 million below the prior quarter, and the Q2 2026 non-GAAP operating expenses of $122.2 million were $4.7 million below the prior quarter. The Q2 2026 non-GAAP operating expenses represented approximately 42 percent of revenue, down from 45 percent in the prior quarter, with the operating expense leverage reflecting the Calix One platform completion the company has been producing.
The Q2 2026 free cash flow of $11.9 million was the cleanest single read on the cash-generation profile the company is producing, and the Q2 2026 $69.4 million of share repurchases of 1.6 million shares is the source of the capital-return profile the company is producing. The RPO of $386.4 million at quarter-end was 11 percent above the prior-year quarter-end, with the RPO growth reinforcing the revenue visibility the company is producing.
The question the next four quarters resolve is whether the company can sustain the 21 percent revenue growth and the 16 percent software and service revenue growth, and whether the agentic-AI platform produces the customer adoption the company is positioning for. A Q3 2026 print that delivers the guided $287 million to $293 million revenue range would confirm the operating profile is sustainable. A Q3 2026 print that misses the guided revenue range or the agentic-AI platform does not produce the customer adoption would force the market to reprice the equity for a more modest terminal value.