Calix (CALX, Financials) shares rose 13% on Tuesday after the company reported a 7% sequential revenue gain and expanded its customer footprint during the first quarter of 2025.

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The broadband technology provider said revenue rose to $220.2 million, up from the prior quarter but down 2.7% from a year earlier. Calix narrowed its net loss to $4.8 million compared with a $17.9 million loss in the previous quarter.

The company said broadband experience providers adopting its appliance, cloud and managed services fueled revenue growth and subscriber gains. Remaining performance obligations rose 39% year-over-year to $340.4 million.

Gross margin improved to a record 55.7% on a GAAP basis and 56.2% on a non-GAAP basis, driven by the shift toward higher-margin cloud and services offerings. Calix maintained positive free cash flow for the 19th straight quarter, generating $17.2 million during the period.

The company repurchased 1.2 million shares for $40 million in the quarter and ended with $282.3 million in cash and investments. The board authorized an additional $100 million for future buybacks.

U.S. revenue made up 96% of total revenue, while international sales declined due to lower shipments to Europe. Calix added 16 new broadband service providers during the quarter as industry players sought to shift from legacy broadband operations to differentiated subscriber models.

For the second quarter, Calix expects revenue between $221 million and $227 million, and a non-GAAP gross margin of about 56.25% at the midpoint.

This article first appeared on GuruFocus.

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