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Ribbon Communications Inc. Reports Second Quarter 2025 Financial Results
Record Second Quarter Revenue Up 15% Year Over Year Profitability at High End of Guidance Robust Growth in Service Provider and Enterprise Markets PLANO, Texas, July 23, 2025 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a leading supplier of real-time communications technology and IP optical networking solutions, today announced its financial results for the second quarter of 2025. Ribbon Communications is dedicated to assisting the world's largest service providers, enterprises, and critical infrastructure operators in modernizing and safeguarding their networks and services. Second Quarter 2025 Highlights Financial Highlights¹: Revenue was $221 million, compared to $193 million for the second quarter of 2024 GAAP Operating Income was $4 million, compared to a loss of $2 million for the second quarter of 2024 Non-GAAP Adjusted EBITDA was $32 million, compared to $22 million for the second quarter of 2024 GAAP Gross Margin was 49.6%, compared to 50.8% for the second quarter of 2024 Non-GAAP Gross Margin was 52.1%, compared to 54.4% for the second quarter of 2024 "I am very pleased with our strong financial performance in the second quarter with both revenue and earnings exceeding our growth projections, resulting in a successful first half of the year. Demand in the North American market was strong across both Service Provider and Enterprise market verticals as we continue to win the largest industry voice transformation opportunities. And we had good momentum in our IP Optical business in India and North America this quarter supporting fiber and mobile network expansion," stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. "Looking ahead, the demand picture remains robust with good visibility, and we continue to anticipate a seasonally stronger second half of the year." John Townsend, Chief Financial Officer, added, "It was great to see our business momentum reflected in our second quarter results. Revenue increased 15% year over year to $221 million, exceeding guidance, and Adjusted EBITDA increased 47% year over year to $32 million, at the top end of our guidance. In the quarter, we announced a new stock repurchase program and expect to use a portion of our free cash flow over the next several years to repurchase up to $50 million of our common stock. Our cash position remained solid, closing the quarter at $62 million including $2.3 million of stock repurchases. In addition, the new U.S. spending bill recently approved by Congress includes corporate tax changes that are expected to result in lower cash tax payments in the second half, which should further improve our cash flow this year." Three months endedSix months ended June 30,June 30, In millions, except per share amounts2025202420252024 GAAP Revenue$ 221$ 193$ 402$ 372 GAAP Net income (loss)$ (11)$ (17)$ (37)$ (47) Non-GAAP Net income (loss)$ 10$ 9$ 5$ 7 Non-GAAP Adjusted EBITDA$ 32$ 22$ 38$ 33 GAAP diluted earnings (loss) per share $ (0.06)$ (0.10)$ (0.21)$ (0.27) Non-GAAP diluted earnings (loss) per share$ 0.05$ 0.05$ 0.03$ 0.04 Weighted average shares outstanding basic177174176173 Weighted average shares outstanding diluted1801761801761 Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about non-GAAP measures in the section entitled "Discussion of Non-GAAP Financial Measures" in the attached schedules. Business Highlights: Ribbon Announces $50 Million Share Repurchase Program Ribbon Showcases AI-Enabled Optical Innovation at OFC NPT 2714 Router and Apollo ADM 400/800 Optical Transport recognized by Lightwave Kerala State Leverages Ribbon for its Kerala Fiber Optic Network (KFON) Deployment | Ribbon Communications Government of Kerala delivers high speed internet to rural India Business Outlook2 For the third quarter of 2025, the Company projects revenue of $213 million to $227 million. Non-GAAP gross margin is projected in a range of 53.5% to 54.0%. Adjusted EBITDA is projected in a range of $28 million to $34 million. Full Year 2025 projections remain unchanged. The Company's outlook is based on current indications for its business, which are subject to change. 2 GAAP earnings guidance is not provided. Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about the non-GAAP measures in the section entitled "Discussion of Non-GAAP Financial Measures" in the attached schedules. Upcoming Conference Schedule August 26-27, 2025: Jefferies Semis, IT Hardware & Comm Tech Summit September 4, 2025: TD Securities Technology Growth Cap Summit Conference Call and Webcast InformationRibbon Communications will host a conference call to discuss the Company's financial results at 4:30 p.m. ET on Wednesday, July 23, 2025. Dial-in Information: US/Canada: 877-407-2991International: 201-389-0925Instant Telephone Access: Call me™ A live (listen-only) webcast and replay will be available on the Company's Investor Relations website at Investor Contact+1 (978) 614-8050ir@ Media ContactCatherine Berthier+1 (646) 741-1974cberthier@ About Ribbon Ribbon Communications (Nasdaq: RBBN) delivers communications software, IP and optical networking solutions to service providers, enterprises and critical infrastructure sectors globally. We engage deeply with our customers, helping them modernize their networks for improved competitive positioning and business outcomes in today's smart, always-on and data-hungry world. Our innovative, end-to-end solutions portfolio delivers unparalleled scale, performance, and agility, including core to edge software-centric solutions, cloud-native offers, leading-edge security and analytics tools, along with IP and optical networking solutions for 5G and broadband internet. We maintain a keen focus on our commitments to Environmental, Social and Governance (ESG) matters, offering an annual Sustainability Report to our stakeholders. To learn more about Ribbon visit Important Information Regarding Forward-Looking Statements This release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to a number of risks and uncertainties. All statements other than statements of historical facts contained in this release, including without limitation, statements regarding the Company's projected financial results for the third quarter of 2025 and beyond; beliefs about the Company's business strategy and market share growth, are forward-looking statements. Without limiting the foregoing, the words "anticipates", "believes", "could", "estimates", "expects", "expectations", "intends", "may", "plans", "projects" and other similar language, whether in the negative or affirmative, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are unknown and/or difficult to predict and that may cause the Company's actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, unpredictable fluctuations in quarterly revenue and operating results; the impact of restructuring and cost-containment activities; increases in tariffs, trade restrictions or taxes on the Company's products; supply chain disruptions resulting from component availability and/or geopolitical instabilities and disputes (including those related to the wars in Israel and Ukraine); the impact of military call-ups of employees in Israel; material litigation; the impact of fluctuations in interest rates; material cybersecurity and data intrusion incidents, including any security breaches resulting in the theft, transfer, or unauthorized disclosure of customer, employee, or Company information; the Company's ability to comply with applicable domestic and foreign information security and privacy laws, regulations and technology platform rules or other obligations related to data privacy and security; failure to compete successfully against telecommunications equipment and networking companies; failure to grow the Company's customer base or generate recurring business from existing customers; credit risks; the timing of customer purchasing decisions and the Company's recognition of revenues; macroeconomic conditions, including inflation; the Company's ability to adapt to rapid technological and market changes; the Company's ability to generate positive returns on its research and development; the Company's ability to protect its intellectual property rights and obtain necessary licenses; the Company's ability to maintain partner, reseller, distribution and vendor support and supply relationships; the potential for defects in the Company's products; risks related to the terms of the Company's credit agreement; higher risks in international operations and markets; currency fluctuations; unanticipated adverse changes in legal, regulatory or tax laws; future accounting pronouncements or changes in the Company's accounting policies and/or failure or circumvention of the Company's controls and procedures. We therefore caution you against relying on any of these forward-looking statements. These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect the Company's business and results from operations. Additional information regarding these and other factors can be found in the Company's reports filed with the Securities and Exchange Commission, including, without limitation, its Form 10-K for the year ended December 31, 2024. Any forward-looking statement made by the Company in this release speaks only as of the date on which this release was first issued. The Company undertakes no obligation to update any forward-looking statement publicly or otherwise, whether as a result of new information, future developments or otherwise, except as required by law. Discussion of Non-GAAP Financial MeasuresThe Company's management uses several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of its business, making operating decisions, planning and forecasting future periods, and determining payments under compensation programs. The Company considers the use of non-GAAP financial measures helpful in assessing the core performance of its continuing operations and when planning and forecasting future periods. The Company's annual financial plan is prepared on a non-GAAP basis and is approved by its board of directors. In addition, budgeting and forecasting for revenue and expenses are conducted on a non-GAAP basis, and actual results on a non-GAAP basis are assessed against the annual financial plan. The Company defines continuing operations as the ongoing results of its business adjusted for certain expenses and credits, as described below. The Company believes that providing non-GAAP information to investors allows them to view the Company's financial results in the way its management views them and helps investors to better understand the Company's core financial and operating performance and evaluate the efficacy of the methodology and information used by its management to evaluate and measure such performance. While the Company's management uses non-GAAP financial measures as tools to enhance its understanding of certain aspects of the Company's financial performance, management does not consider these measures to be a substitute for, or superior to, GAAP measures. In addition, the Company's presentations of these measures may not be comparable to similarly titled measures used by other companies. These non-GAAP financial measures should not be considered alternatives for, or in isolation from, the financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures. In particular, many of the adjustments to the Company's financial measures reflect the exclusion of items that are recurring and will be reflected in its financial results for the foreseeable future. Stock-Based CompensationThe expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. The Company believes that presenting non-GAAP operating results that exclude stock-based compensation provides investors with visibility and insight into its management's method of analysis and its core operating performance. Amortization of Acquired Technology (including software licenses); Amortization of Acquired Intangible AssetsAmortization amounts are inconsistent in frequency and amount and are significantly impacted by the timing and size of acquisitions. Amortization of acquired technology is reported separately within Cost of revenue and Amortization of acquired intangible assets is reported separately within Operating expenses. These items are reported collectively as Amortization of acquired intangible assets in the accompanying reconciliations of non-GAAP and GAAP financial measures. The Company believes that excluding non-cash amortization of these intangible assets facilitates the comparison of its financial results to its historical operating results and to other companies in its industry as if the acquired intangible assets had been developed internally rather than acquired. Litigation CostsIn connection with certain ongoing litigation where Ribbon is the defendant (as described in the Company's Commitments and Contingencies footnotes in its Form 10-Qs and Form 10-Ks filed with the SEC, the Company has incurred litigation costs beginning in 2023. These costs are included as a component of general and administrative expense. The Company believes that such costs are not part of its core business or ongoing operations, are unplanned, and generally are not within its control. Accordingly, the Company believes that excluding litigation costs related to these specific legal matters facilitates the comparison of the Company's financial results to its historical operating results and to other companies in its industry. Acquisition-, Disposal- and Integration-RelatedThe Company considers certain acquisition-, disposal- and integration-related costs to be unrelated to the organic continuing operations of the Company and its acquired businesses. Such costs are generally not relevant to assessing or estimating the long-term performance of the acquired assets. In the second quarter of 2025, the Company recorded $3.9 million of expense for legal and professional fees associated with contemplated corporate development activities. The Company excludes such acquisition-, disposal- and integration-related costs to allow more accurate comparisons of its financial results to its historical operations and the financial results of less acquisitive peer companies and allows management and investors to consider the ongoing operations of the business both with and without such expenses. Restructuring and RelatedThe Company has recorded restructuring and related expense to streamline operations and reduce operating costs by closing and consolidating certain facilities and reducing its worldwide workforce. The Company believes that excluding restructuring and related expense facilitates the comparison of its financial results to its historical operating results and to other companies in its industry, as there are no future revenue streams or other benefits associated with these costs. Preferred Stock and Warrant Liability Mark-to-Market AdjustmentThe Company recorded adjustments to the fair value of its Series A Preferred Stock and Warrants to purchase shares of the Company's common stock in Other (expense) income, net. Both of these instruments were issued in March 2023 in connection with the Company's private placement and have been classified as liabilities and marked to market each reporting period until the Series A Preferred Stock was fully redeemed on June 25, 2024. The Warrant liability remains outstanding and will continue to be marked to market each reporting period. The Company excluded these gains and losses from the change in the fair value of these liabilities because it believes that such gains or losses were not part of its core business or ongoing operations. Tax Effect of Non-GAAP AdjustmentsThe Non-GAAP income tax provision is presented based on an estimated tax rate applied against forecasted annual non-GAAP income. The Non-GAAP income tax provision assumes no available net operating losses or valuation allowances for the U.S. because of reporting significant cumulative non-GAAP income over the past several years. The Company is reporting its non-GAAP quarterly income taxes by computing an annual rate for the Company and applying that single rate (rather than multiple rates by jurisdiction) to its consolidated quarterly results. The Company expects that this methodology will provide a consistent rate throughout the year and allow investors to better understand the impact of income taxes on its results. Due to the methodology applied to its estimated annual tax rate, the Company's estimated tax rate on non-GAAP income will differ from its GAAP tax rate and from its actual tax liabilities. Adjusted EBITDAThe Company uses Adjusted EBITDA as a supplemental measure to review and assess its performance. The Company calculates Adjusted EBITDA by excluding from income (loss) from operations: depreciation; stock-based compensation; amortization of acquired intangible assets; certain litigation costs; acquisition-, disposal- and integration-related expense; and restructuring and related expense. In general, the Company excludes the expenses that it considers to be non-cash and/or not a part of its ongoing operations. The Company may exclude other items in the future that have those characteristics. Adjusted EBITDA is a non-GAAP financial measure that is used by the investing community for comparative and valuation purposes. The Company discloses this metric to support and facilitate dialogue with research analysts and investors. Other companies may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure. RIBBON COMMUNICATIONS INC. Consolidated Statements of Operations (in thousands, except percentages and per share amounts) (unaudited) Three months ended June 30,March 31,June 30, 202520252024 Revenue:Product $ 115,057$ 81,991$ 99,133Service 105,52699,28893,487 Total revenue 220,583181,279192,620Cost of revenue: Product 66,74657,89354,845Service 39,25335,62833,376Amortization of acquired technology 5,2775,3886,532 Total cost of revenue 111,27698,90994,753Gross profit 109,30782,37097,867Gross margin 49.6 %45.4 %50.8 %Operating expenses: Research and development 44,69643,56843,489Sales and marketing 32,53631,78832,984General and administrative 16,63015,12814,901Amortization of acquired intangible assets 5,9756,1556,508Acquisition-, disposal- and integration-related 3,898--Restructuring and related 1,3465,3411,920 Total operating expenses 105,081101,98099,802Income (loss) from operations 4,226(19,610)(1,935) Interest expense, net (10,977)(10,500)(3,879) Other (expense) income, net (2,159)3,129(9,503)Income (loss) before income taxes (8,910)(26,981)(15,317) Income tax benefit (provision) (2,183)754(1,499)Net income (loss) $ (11,093)$ (26,227)$ (16,816)Earnings (loss) per share: Basic$ (0.06)$ (0.15)$ (0.10)Diluted $ (0.06)$ (0.15)$ (0.10)Weighted average shares used to compute earnings (loss) per share: Basic176,749175,719173,793Diluted 176,749175,719173,793 RIBBON COMMUNICATIONS INC. Consolidated Statements of Operations (in thousands, except percentages and per share amounts) (unaudited) Six months ended June 30,June 30, 20252024 Revenue:Product $ 197,048$ 186,743Service 204,814185,541 Total revenue 401,862372,284Cost of revenue: Product 124,639100,639Service 74,88168,740Amortization of acquired technology 10,66513,083 Total cost of revenue 210,185182,462Gross profit 191,677189,822Gross margin 47.7 %51.0 %Operating expenses: Research and development 88,26489,252Sales and marketing 64,32467,700General and administrative 31,75830,092Amortization of acquired intangible assets 12,13013,214Acquisition-, disposal- and integration-related 3,898-Restructuring and related 6,6874,985 Total operating expenses 207,061205,243Income (loss) from operations (15,384)(15,421) Interest expense, net (21,477)(9,866) Other (expense) income, net 970(17,016)Income (loss) before income taxes (35,891)(42,303) Income tax benefit (provision) (1,429)(4,874)Net loss$ (37,320)$ (47,177)Earnings (loss) per share: Basic$ (0.21)$ (0.27)Diluted $ (0.21)$ (0.27)Weighted average shares used to compute earnings (loss) per share: Basic176,237173,110Diluted 176,237173,110 RIBBON COMMUNICATIONS INC. Consolidated Balance Sheets (in thousands) (unaudited) June 30,December 31, 20252024 AssetsCurrent assets: Cash and cash equivalents $ 60,450$ 87,770Restricted cash 1,8242,709Accounts receivable, net 249,360254,718Inventory 80,29979,179Other current assets 42,00739,286 Total current assets 433,940463,662Property and equipment, net 66,65960,364 Intangible assets, net 164,742187,537 Goodwill300,892300,892 Deferred income taxes 99,31488,982 Operating lease right-of-use assets 47,38334,544 Other assets 29,24226,573 $ 1,142,172$ 1,162,554Liabilities and Stockholders' EquityCurrent liabilities: Current portion of term debt $ 8,750$ 6,125Accounts payable 88,69787,759Accrued expenses and other 90,144106,251Operating lease liabilities 10,8169,443Deferred revenue 115,212119,295 Total current liabilities 313,619328,873Long-term debt, net of current 327,625330,726 Warrant liability 6,2738,064 Operating lease liabilities, net of current 62,06337,376 Deferred revenue, net of current 31,74920,991 Deferred income taxes 5,9415,941 Other long-term liabilities 24,46725,962Total liabilities 771,737757,933Commitments and contingencies Stockholders' equity: Common stock 1818Additional paid-in capital 1,973,9901,970,708Accumulated deficit (1,611,505)(1,574,185)Accumulated other comprehensive income 7,9328,080Total stockholders' equity 370,435404,621 $ 1,142,172$ 1,162,554 RIBBON COMMUNICATIONS INC. Consolidated Statements of Cash Flows (in thousands) (unaudited)Six months ended June 30, June 30, 20252024 Cash flows from operating activities: Net loss$ (37,320)$ (47,177)Adjustments to reconcile net loss to cash flows (used in) provided by operating activities:Depreciation and amortization of property and equipment 7,7576,770 Amortization of intangible assets 22,79526,297 Amortization of debt issuance costs and original issue discount 1,4013,445 Amortization of accumulated other comprehensive gain related to interest rate swap -(8,196) Stock-based compensation 8,7758,016 Deferred income taxes (8,984)(8,104) Change in fair value of warrant liability (1,641)875 Change in fair value of preferred stock liability -8,091 Dividends accrued on preferred stock liability -2,743 Payment of dividends accrued on preferred stock liability -(6,686) Foreign currency exchange (gains) losses 5872,023 Changes in operating assets and liabilities: Accounts receivable 4,57856,146Inventory (2,820)(4,405)Other operating assets ...(186)8,854Accounts payable 5,083(20,541)Accrued expenses and other long-term liabilities (11,030)(8,407)Deferred revenue 6,675(16,422) Net cash (used in) provided by operating activities (4,330)3,322 Cash flows from investing activities: Purchases of property and equipment (17,831)(5,613)Purchases of software licenses -(263) Net cash used in investing activities (17,831)(5,876) Cash flows from financing activities: Borrowings under revolving line of credit -44,106Principal payments on revolving line of credit -(44,106)Proceeds from issuance of term debt -342,300Principal payments of term debt (1,750)(235,395)Payment of debt issuance costs -(3,978)Payment of preferred stock liability -(56,850)Proceeds from the exercise of stock options 617Payment of tax obligations related to vested stock awards and units (3,396)(2,638)Repurchase of common stock (2,253)- Net cash used in financing activities (7,393)43,456 Effect of exchange rate changes on cash and cash equivalents 1,349(124) Net (decrease) increase in cash and cash equivalents (28,205)40,778 Cash, cash equivalents and restricted cash, beginning of year 90,47926,630 Cash, cash equivalents and restricted cash, end of period $ 62,274$ 67,408 RIBBON COMMUNICATIONS INC. Supplemental Information (in thousands) (unaudited) The following tables provide the details of stock-based compensation included as components of other line items in the Company's Consolidated Statements of Operations and the line items in which these amounts are reported. Three months ended Six months ended June 30,March 31,June 30,June 30,June 30, 20252025202420252024 Stock-based compensationCost of revenue - product $ 33$ 66$ 64$ 99$ 170 Cost of revenue - service 198286274484746Cost of revenue 231352338583916Research and development 4557256161,1801,684 Sales and marketing 1,0661,1739542,2392,111 General and administrative 2,7252,0481,5864,7733,305Operating expense 4,2463,9463,1568,1927,100Total stock-based compensation $ 4,477$ 4,298$ 3,494$ 8,775$ 8,016 RIBBON COMMUNICATIONS INC. Reconciliation of Non-GAAP and GAAP Financial Measures (in thousands, except per share amounts) (unaudited) Three months ended June 30,March 31,June 30,202520252024 GAAP Gross margin 49.6 %45.4 %50.8 % Stock-based compensation 0.1 %0.2 %0.2 % Amortization of acquired technology 2.4 %3.0 %3.4 % Non-GAAP Gross margin 52.1 %48.6 %54.4 % GAAP Net income (loss) $ (11,093)$ (26,227)$ (16,816) Stock-based compensation 4,4774,2983,494 Amortization of intangible assets 11,25211,54313,040 Litigation costs 2,3148001,768 Acquisition-, disposal- and integration-related 3,898-- Restructuring and related 1,3465,3411,920 Preferred stock and warrant liability mark-to-market adjustment 94(1,735)8,210 Tax effect of non-GAAP adjustments (2,679)1,401(3,095) Non-GAAP Net income (loss) $ 9,609$ (4,579)$ 8,521 GAAP Diluted earnings (loss) per share $ (0.06)$ (0.15)$ (0.10) Stock-based compensation 0.020.020.02 Amortization of intangible assets 0.060.070.08 Litigation costs 0.01 * 0.01 Acquisition-, disposal- and integration-related 0.02-- Restructuring and related 0.010.030.01 Preferred stock and warrant liability mark-to-market adjustment * (0.01)0.05 Tax effect of non-GAAP adjustments (0.01)0.01(0.02) Non-GAAP Diluted earnings (loss) per share $ 0.05$ (0.03)$ 0.05 Weighted average shares used to compute diluted earnings (loss) per share Shares used to compute GAAP diluted earnings (loss) per share 176,749175,719173,793 Shares used to compute Non-GAAP diluted earnings (loss) per share 179,884175,719176,246 GAAP Income (loss) from operations $ 4,226$ (19,610)$ (1,935) Depreciation 4,2883,4693,376 Stock-based compensation 4,4774,2983,494 Amortization of intangible assets 11,25211,54313,040 Litigation costs 2,3148001,768 Acquisition-, disposal- and integration-related 3,898-- Restructuring and related 1,3465,3411,920 Non-GAAP Adjusted EBITDA $ 31,801$ 5,841$ 21,663 * Less than $0.01 impact on earnings (loss) per share. RIBBON COMMUNICATIONS INC. Reconciliation of Non-GAAP and GAAP Financial Measures (in thousands, except per share amounts) (unaudited)Six months endedJune 30,June 30,20252024 GAAP Gross Margin 47.7 %51.0 % Stock-based compensation 0.1 %0.2 % Amortization of acquired technology 2.7 %3.5 % Non-GAAP Gross Margin 50.5 %54.7 % GAAP Net income (loss) $ (37,320)$ (47,177) Stock-based compensation 8,7758,016 Amortization of intangible assets 22,79526,297 Litigation costs 3,1142,719 Acquisition-, disposal- and integration-related 3,898- Restructuring and related 6,6874,985 Preferred stock and warrant liability mark-to-market adjustment (1,641)11,709 Tax effect of non-GAAP adjustments (1,278)876 Non-GAAP Net income (loss) $ 5,030$ 7,425 GAAP Diluted earnings (loss) per share $ (0.21)$ (0.27) Stock-based compensation 0.050.05 Amortization of intangible assets 0.130.14 Litigation costs 0.020.02 Acquisition-, disposal- and integration-related 0.02- Restructuring and related 0.040.03 Preferred stock and warrant liability mark-to-market adjustment (0.01)0.07 Tax effect of non-GAAP adjustments (0.01) * Non-GAAP Diluted earnings (loss) per share $ 0.03$ 0.04 Weighted average shares used to compute diluted earnings (loss) per share Shares used to compute GAAP diluted earnings (loss) per share 176,237173,110 Shares used to compute Non-GAAP diluted earnings (loss) per share 180,231175,784 GAAP Income (loss) from operations $ (15,384)$ (15,421) Depreciation 7,7576,770 Stock-based compensation 8,7758,016 Amortization of intangible assets 22,79526,297 Litigation costs 3,1142,719 Acquisition-, disposal- and integration-related 3,898- Restructuring and related 6,6874,985 Non-GAAP Adjusted EBITDA $ 37,642$ 33,366 * Less than $0.01 impact on earnings (loss) per share. RIBBON COMMUNICATIONS INC. Reconciliation of Non-GAAP and GAAP Financial Measures (in thousands) (unaudited)Trailing Twelve MonthsJune 30,March 31,June 30,202520252024 GAAP Income (loss) from operations $ 16,909$ 10,748$ 2,105 Depreciation 14,52613,61413,816 Stock-based compensation 16,84515,86217,858 Amortization of intangible assets 47,36049,14853,836 Litigation costs 11,59311,0473,735 Acquisition-, disposal- and integration-related 3,898-2,336 Restructuring and related 11,86212,4369,950 Non-GAAP Adjusted EBITDA $ 122,993$ 112,855$ 103,636 RIBBON COMMUNICATIONS INC. Reconciliation of Non-GAAP and GAAP Financial Measures - Outlook (unaudited) Three months ending Year ending September 30, 2025December 31, 2025Midpoint (1) RangeMidpoint (1)RangeRevenue ($ millions) $ 220 +/- $7M$ 880+/- $10MGross margin:GAAP outlook 51.25 % 52.0 %Stock-based compensation 0.20 % 0.2 %Amortization of acquired technology 2.30 % 2.3 % Non-GAAP outlook 53.75 % +/- 0.25%54.5 %+/- 0.5%Adjusted EBITDA ($ millions):GAAP income (loss) from operations $ 10.8 $ 42.3Depreciation 3.9 15.8Stock-based compensation 4.0 16.2Amortization of intangible assets 10.8 44.1Litigation costs 0.3 3.7Acquisition-, disposal- and integration-related - 3.9Restructuring and related 1.2 9.0 Non-GAAP outlook $ 31.0 +/- $3M$ 135.0+/- $5M(1) Q3 2025 and FY 2025 outlook represents the midpoint of the expected ranges View original content to download multimedia: SOURCE Ribbon Communications Inc. 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Yahoo
24-07-2025
- Business
- Yahoo
Verizon And Federal Wins Power Ribbon Communications' Confident Outlook
Ribbon Communications (NASDAQ:RBBN) reported a robust second quarter for 2025, driven by strong demand and key customer wins. Ribbon Communications reported total second-quarter 2025 revenue of $221 million, marking a 22% sequential increase and a 15% year-over-year rise, surpassing estimates by approximately $6 million. This growth was fueled by strong performance with major clients, including Verizon Communications (NYSE:VZ) and U.S. federal agencies, and the successful closure of several previously delayed deals. Despite some pressure on gross margins due to a mix of hardware and professional services sales, the company's Cloud and Edge segment delivered record-high profitability, and its IP Optical segment saw a significant improvement in its financial performance. Ribbon Communications also maintained its full-year outlook, forecasting continued growth and the earnings report, Rosenblatt analyst Mike Genovese reaffirmed a Buy rating for Ribbon Communications and increased his price forecast from $5.50 to $6.00. This positive adjustment came despite a slight dip in the stock's trading price on the day of the announcement. Genovese highlighted that the impressive revenue growth was driven by continued strong demand from Verizon Communications, U.S. federal agencies, new wins in critical infrastructure, and Bharti Airtel in India. He said the company also secured a new contract with a Tier 1 telecom operator in Southeast Asia, while several previously delayed deals closed during the quarter. Domestic revenue reached $117 million, jumping 40% quarter-over-quarter and 45% year-over-year. International revenue came in at $104 million, rising 6% sequentially but declining 7% compared to the prior year. Genovese noted that the Cloud and Edge segment delivered $137 million in revenue, up 27% sequentially and 24% year-over-year, which was in line with expectations driven by robust growth from Verizon and government customers. He pointed out that Verizon accounted for 20% of Ribbon's total revenue and was the only customer exceeding 10% of sales, as it continues to modernize its voice network. Cloud and Edge gross margins contracted 110 basis points sequentially and 410 basis points year-over-year to 61.9%, largely due to a higher mix of professional services and hardware and a dip in maintenance and software sales. Despite the margin pressure, Genovese pointed out that the segment posted a record adjusted EBITDA of $37 million. The analyst said IP Optical revenue rose to $84 million, up 13% sequentially and 2% year-over-year, beating estimates by 6%. Sales in India and North America surged over 40% year-over-year. Excluding Eastern Europe, the IP Optical segment posted a 5% annual increase. He noted that the segment's gross margin expanded 760 basis points sequentially to 35.9%, supported by stronger North American sales, improved mix and margins in Asia-Pacific, and better fixed cost absorption from higher volume. The adjusted EBITDA loss for IP Optical narrowed to $5 million from a $15 million loss a year ago. Company-wide gross margin reached 52.1%, expanding 340 basis points quarter-over-quarter, though contracting 230 basis points year-over-year, missing estimates due to a greater share of hardware and services revenue, Genovese noted. The analyst said that operating margin expanded sharply to 12.5%, up 1,120 basis points sequentially and 300 basis points year-over-year, beating projections by 20 basis points. He noted that adjusted EBITDA totaled $32 million, representing a 433% increase sequentially and 47% growth year-over-year, at the high end of company guidance. Genovese noted that management guided third-quarter revenue between $213 million and $227 million, slightly below prior estimates. The analyst expects IP Optical revenue to grow sequentially, while Cloud and Edge revenue will likely decline, primarily due to project timing with Verizon. Gross margins are projected between 53.5% and 54%, below the prior 55.9% estimate, and adjusted EBITDA is forecast between $28 million and $34 million. The company reiterated its full-year 2025 outlook, maintaining revenue guidance of $870 million to $890 million, gross margins of 54%–55%, and adjusted EBITDA of $130 million to $140 million. However, management noted that GMs and EBITDA are trending toward the lower end of those ranges due to stronger-than-expected product and professional services sales and a $2 million quarterly opex impact from the weaker U.S. dollar. Genovese noted that management expects the fourth quarter to remain the strongest quarter of the year, as is typical for Ribbon. Additionally, the firm anticipates $15 million to $20 million in tax savings following a recent bill passed by Congress. Genovese highlighted that the Ribbon story remains attractive, especially at a valuation of 12.5x estimated 2026 EPS. The analyst emphasized Ribbon's ability to weather recent headwinds, such as its exit from Eastern Europe and timing-related delays in the Federal and Enterprise sectors, while consistently delivering on its guidance across multiple quarters. He also noted meaningful improvement in the Cloud and Edge narrative, particularly with Verizon's shift to next-gen voice infrastructure, enhancing Ribbon's growth prospects. Additionally, Genovese noted that Ribbon could win a similar deal with AT&T (NYSE:T), which has committed to fully modernizing its voice systems by 2029. He highlighted growing synergies between Ribbon's business segments, as Verizon now uses its routers for the Cloud and Edge upgrade, a signal of broader strategic alignment and opportunity ahead. Price Action: RBBN stock is trading lower by 11.7% to $3.76 at last check Thursday. Latest Ratings for RBBN Date Firm Action From To Jan 2021 B. Riley Securities Initiates Coverage On Buy Oct 2019 Northland Capital Markets Downgrades Outperform Market Perform Aug 2018 Cowen & Co. Upgrades Underperform Market Perform View More Analyst Ratings for RBBN View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Verizon And Federal Wins Power Ribbon Communications' Confident Outlook originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
09-07-2025
- Business
- Yahoo
Ribbon Communications to Report Second Quarter 2025 Financial Results on July 23, 2025
PLANO, Texas, July 9, 2025 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a leading supplier of real-time communications technology and IP optical networking solutions, today announced that it will report financial results for the second quarter of 2025 after the close of the market on Wednesday, July 23, 2025. Following the release, Ribbon Communications will host a conference call with the financial community at 4:30 p.m. ET to discuss the results. Conference Call Details and WebcastDate: Wednesday, July 23, 2025Time: 4:30 p.m. ETDial-in number (Domestic): 877-407-2991Dial-in number (International): 201-389-0925Instant Telephone Access: Call me™Live (Listen-only) Webcast: Available via the Investor Relations website at where a replay will also be available shortly following the conference call. About RibbonRibbon Communications (Nasdaq: RBBN) delivers secure cloud communications and IP and optical networking solutions to service providers, enterprises and critical infrastructure sectors globally. We engage deeply with our customers, helping them modernize their networks for improved competitive positioning and business outcomes in today's smart, always-on and data-hungry world. Our end-to-end portfolio of communications software and IP Optical networking solutions delivers superior value and innovation by leveraging cloud-native architectures, automation and analytics tools, and leading-edge security. We maintain a keen focus on our commitments to Environmental, Social, and Governance (ESG) matters, offering an annual Sustainability Report to our stakeholders. To learn more about Ribbon, please visit Investor Contact Media Contact +1 (978) 614-8050 Catherine Berthier ir@ +1 (646) 741-1974cberthier@ View original content to download multimedia: SOURCE Ribbon Communications Inc.
Yahoo
05-06-2025
- Business
- Yahoo
Ribbon Joins Two Investor Conferences in June
PLANO, Texas, June 5, 2025 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a leading supplier of real-time communications technology and IP optical networking solutions, announced the investor conferences its executives will attend later this month: Rosenblatt 5th Annual Technology Virtual Summit Tech Conference, June 10, 2025 Northland Capital Virtual Growth Conference, June 25, 2025 Qualified participants may email ir@ to set up virtual meetings with Ribbon leadership. Ribbon is dedicated to assisting the world's largest service providers, enterprises and critical infrastructure operators in modernizing and safeguarding their networks and services. About RibbonRibbon Communications (Nasdaq: RBBN) delivers secure cloud communications and IP and optical networking solutions to service providers, enterprises and critical infrastructure sectors globally. We engage deeply with our customers, helping them modernize their networks for improved competitive positioning and business outcomes in today's smart, always-on and data-hungry world. Our end-to-end portfolio of communications software and IP Optical networking solutions delivers superior value and innovation by leveraging cloud-native architectures, automation and analytics tools, and leading-edge security. We maintain a keen focus on our commitments to Environmental, Social, and Governance (ESG) matters, offering an annual Sustainability Report to our stakeholders. To learn more about Ribbon, please visit Important Information Regarding Forward-Looking StatementsThe information in this release contains forward-looking statements regarding future events that involve risks and uncertainties. All statements other than statements of historical facts contained in this release, including those regarding the expected benefits from use of Ribbon Communication's products, are forward-looking statements. The actual results of Ribbon Communications may differ materially from those contemplated by the forward-looking statements. For further information regarding risks and uncertainties associated with Ribbon Communications' business, please refer to the "Risk Factors" section of Ribbon Communications' most recent annual or quarterly report filed with the SEC. Any forward-looking statements represent Ribbon Communications' views only as of the date on which such statement is made and should not be relied upon as representing Ribbon Communications' views as of any subsequent date. While Ribbon Communications may elect to update forward-looking statements at some point, Ribbon Communications specifically disclaims any obligation to do so. Investor Contact+1 (978) 614-8050ir@ Media ContactCatherine Berthier+1 (646) 741-1974cberthier@ View original content to download multimedia: SOURCE Ribbon Communications Inc. Sign in to access your portfolio
Yahoo
04-06-2025
- Business
- Yahoo
Ribbon Communications authorizes $50M share repurchase program
Ribbon Communications (RBBN) has authorized a program to repurchase up to $50M of the company's common stock, commencing June 5, 2025 and continuing through December 31, 2027. The program may be modified, increased, suspended, or discontinued at any time. The share repurchase program will be funded with cash on hand or cash generated from operations. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on RBBN: Disclaimer & DisclosureReport an Issue Ribbon Communications Increases Authorized Shares After Meeting Ribbon Communications' Mixed Earnings Call: Growth Amid Challenges Ribbon Communications price target lowered to $6 from $7.50 at B. Riley Ribbon Communications Reports Q1 2025 Financial Results Ribbon Communications sees Q2 revenue $210M-$220M, consensus $209.54M Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
