EXHIBIT 99.1 https://files.reportify.cc/media/production/ ADTRAN Holdings, Inc. announces certain preliminary fourth quarter and full year 2025 results Huntsville, Alabama, USA. – January 21, 2026 — ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) ("ADTRAN Holdings" or the "Company") today announced preliminary unaudited revenue, as well as GAAP and non-GAAP operating margin, for the fiscal quarter and year ended December 31, 2025. This press release announcement is being provided due to German ad hoc disc ...

HUNTSVILLE, Ala.--(BUSINESS WIRE)--ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) ("ADTRAN Holdings†or the "Company†) today announced preliminary unaudited revenue, as well as GAAP and non-GAAP operating margin, for the fiscal quarter and year ended December 31, 2025. This press release announcement is being provided due to German ad hoc disclosure requirements following, among others, the Company's expected outperformance relative to its previously issued revenue guidance. All figures in this release ...

A major focus of the discussion was the ongoing replacement of Huawei equipment in Europe. Stanton characterized the overall opportunity as “somewhere around $800 million annually” that over time shifts away from Huawei to other vendors, calling it a continuing bright spot. He noted activity remains strong, with increased strategy discussions around what to do about the installed base.Looking to 2026, Stanton described the opportunity set as broad-based, citing continued optical momentum and typical seasona ...

Summary of ADTRAN Conference Call Company Overview - **Company**: ADTRAN - **Industry**: Communications and Networking - **Key Executives**: Tom Stanton (Chairperson and CEO), Tim Santo (CFO) Key Points Financial Performance - **Optical Networking Solutions**: Increased by 24% year-over-year in Q3 2025, indicating strong sales execution and recovery from supply chain issues [4][5] - **Profitability Metrics**: Operating margin improved to approximately 5%, attributed to cost discipline and leveraging scale [6] - **Gross Margin Expectations**: Projected to remain in the range of 42%-43%, with a positive trend anticipated across product lines [40] Market Opportunities - **European Market**: Significant opportunity in the Huawei replacement market, estimated at around $800 million annually, primarily in Europe [8][20] - **Access Business**: Expected strength in the first half of 2026 as European carriers begin to come online [7] - **BEAD Program**: Anticipated early revenue in the second half of 2026, with a material increase expected in 2027 [10][17] Customer and Inventory Insights - **Customer Inventory**: No significant inventory issues reported; customers are purchasing as needed [28][32] - **AI Integration**: Launch of Clarity, an AI tool for network maintenance and troubleshooting, showing positive beta testing results [33][57] Competitive Landscape - **Market Position**: ADTRAN feels confident in its competitive position, particularly in Europe where fewer competitors exist [48][49] - **Impact of Mergers**: The merger between Nokia and Infinera has created opportunities for ADTRAN as customers seek alternatives [51] Regulatory and Legislative Environment - **EU Legislation**: Discussions around funding for replacing old infrastructure are ongoing, which could benefit ADTRAN in the long term [24][25] Strategic Focus - **Sales and Growth**: Plans to optimize operating costs while increasing sales resources to drive growth [62] - **M&A Activity**: Limited opportunities for consolidation in the optical space, but potential remains for smaller players [60][61] Investor Sentiment - **Market Perception**: There is a belief that the market may be undervaluing ADTRAN's performance and potential, with consistent execution expected to eventually reflect in stock performance [63][64] Additional Insights - **Supply Chain Management**: Successfully navigating supply chain pressures, with confidence in maintaining guidance despite some cost pressures [42] - **Long-term Vision**: Focus on upgrading existing infrastructure to meet the demands of hyperscalers and larger carriers [34][36] This summary encapsulates the key insights and strategic directions discussed during the ADTRAN conference call, highlighting the company's performance, market opportunities, and future outlook.

Core Viewpoint - ADTRAN Holdings reported mixed Q3 2025 results, with revenues exceeding estimates but net income falling short, highlighting strong demand yet facing macroeconomic challenges [2][3]. Financial Performance - The company recorded a net loss of $10.3 million or 12 cents per share, an improvement from a net loss of $33.3 million or 38 cents per share in the same quarter last year, attributed to revenue growth [3]. - Non-GAAP earnings were $3.7 million or 5 cents per share, compared to a net loss of $5.3 million or 7 cents per share a year ago, missing the Zacks Consensus Estimate by one cent [4]. - Total revenues increased to $279.4 million from $227.7 million year-over-year, driven by operational execution and demand for advanced solutions in cloud, AI, and edge computing, surpassing the consensus estimate of $275 million [5]. Revenue Breakdown - Network Solutions generated $232.5 million in revenues, up from $181.5 million in the prior-year quarter, while Services and Support revenues were $46.9 million, slightly up from $46.2 million [6]. Profitability Metrics - Non-GAAP gross margin improved to 42.1% from 41.1% year-over-year, and non-GAAP operating income surged to $15.1 million from $0.5 million, reflecting respective margins of 5.4% and 0.2% [7]. Cash Flow and Liquidity - In the first nine months of 2025, ADTRAN generated $87.5 million in cash from operating activities, down from $101.1 million in the prior-year period. As of September 30, 2025, the company had $93.7 million in cash and cash equivalents against $25.9 million in non-current lease obligations [8]. Future Outlook - For Q4 2025, ADTRAN anticipates revenues between $275 million and $285 million, with a non-GAAP operating margin expected to range from 3.5% to 7.5% [9]. Market Position - ADTRAN Holdings holds a Zacks Rank 3 (Hold), indicating an expectation of an in-line return from the stock in the coming months [12]. - The company is part of the Zacks Communication - Components industry, where competitor Viav Solutions reported a revenue increase of 25.6% year-over-year, indicating a positive trend within the sector [13].

Financial Performance - The company reported a net loss of $X million for the three months ended September 30, 2025, compared to a net loss of $Y million for the same period in 2024, reflecting a Z% improvement in performance[8] - Revenue for the nine months ended September 30, 2025, was $A million, representing a B% increase compared to $C million for the same period in 2024[8] - The gross margin for the three months ended September 30, 2025, was E%, compared to F% for the same period in 2024, indicating ongoing challenges in maintaining profitability[12] - Cash flow from operations for the nine months ended September 30, 2025, was $K million, a L% increase compared to the same period in 2024, indicating improved operational efficiency[12] - Ongoing inflationary pressures have negatively impacted ADTRAN's revenue and profitability[15] Revenue Fluctuations - The company experienced fluctuations in revenue, with a significant increase in sales to key customers contributing to a D% rise in overall revenue for the quarter[12] - ADTRAN's revenue has experienced significant fluctuations, which may continue in future periods[12] - The lengthy sales and approval process for new products has historically resulted in revenue fluctuations[12] Market Strategy - The company is focusing on expanding its market presence, with plans to enter G new markets by the end of 2026[12] - The company anticipates revenue growth of I% for the next quarter, driven by new product launches and increased demand from existing customers[12] - The company is actively pursuing strategic partnerships and potential acquisitions to enhance its product offerings and market reach[12] Research and Development - Research and development expenses increased by H% year-over-year, reflecting the company's commitment to innovation and new product development[12] - The company engages in research and development to innovate and improve products, which is essential for competitiveness[15] Risks and Challenges - The company has identified J key risks that could impact future performance, including supply chain disruptions and competitive pressures in the telecommunications industry[12] - ADTRAN relies heavily on sales to certain customers, and the loss of any major customer could significantly reduce revenue and net income[12] - The company faces risks related to its significant indebtedness, which could limit cash flow and operational flexibility[20] - The company is exposed to credit risks from customers and distributors, which may affect accounts receivable collection[12] - ADTRAN's international operations may expose it to additional risks and increase costs, adversely affecting financial results[15] - ADTRAN's stock price has been volatile, and future fluctuations are expected due to various operational risks[20] - The company expects gross margins to vary over time, indicating potential challenges in maintaining sustainable profit levels[12]

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Financial Data and Key Metrics Changes - ADTRAN reported revenue of $279.4 million for Q3 2025, representing a 23% year-over-year increase and a 5% sequential increase, finishing at the high end of guidance [12][13] - Non-GAAP gross margin improved to 42.1%, up both sequentially and year-over-year, driven by scale efficiencies and product mix [13] - Non-GAAP operating profit rose to $15.1 million, or 5.4% of revenue, exceeding the midpoint of the outlook, with a sequential increase of $7.1 million, or 89% [13][14] Business Line Data and Key Metrics Changes - Optical networking revenue grew 47% year-over-year and 15% sequentially, driven by strong momentum in Europe and new customer additions [7][13] - Access and aggregation revenue increased by 12% year-over-year, supported by ongoing fiber access investments among regional operators in the US and Europe [8][13] - Subscriber solutions revenue grew 12% year-over-year and 21% sequentially, with demand for residential and wholesale applications [8][13] Market Data and Key Metrics Changes - Non-U.S. revenue accounted for 57% of total revenue, while U.S. revenue represented 43% [13] - The company added 15 new optical customers and 14 new customers for fiber access and Ethernet aggregation platforms during the quarter [7][8] Company Strategy and Development Direction - The company is focused on leveraging financial performance as a driver of long-term value creation, with a disciplined approach to capital structure and operational efficiency [4][10] - ADTRAN is positioned to benefit from structural shifts in the industry towards core to edge computing and intelligent networks, with a differentiated portfolio and the Mosaic One operating platform [9][10] - The company aims to maintain gross margins in the 42%-43% range over the long term and is targeting operating margin expansion through disciplined cost control [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall market for the remainder of the year, despite typical seasonal factors affecting Q4 [4][15] - The company anticipates solid demand and execution to offset usual headwinds, expecting Q4 revenue between $275 million and $285 million [15] - Management highlighted the potential for increased orders related to BEAD spending in 2026, indicating a more active environment [38][39] Other Important Information - The company completed a $201 million financing transaction that lowered borrowing costs and improved liquidity [4][12] - ADTRAN is actively marketing its non-core assets, including the Huntsville campus, with multiple offers received [21][22] Q&A Session Summary Question: Timing changes in Access and Aggregation business - Management acknowledged a push-out in timing for shipments due to the financial calendars of major customers, but indicated no risk involved [20] Question: Update on real estate and marketing efforts - Management confirmed that both buildings are back on the market and receiving multiple offers [21][22] Question: Growth drivers for ADTRAN in a slow-growth telecom market - Management noted significant market share disruption in Europe, with ADTRAN being a key winner in that space [24] Question: Impact of Huawei displacement in Germany - Management indicated that while there hasn't been material rip and replace yet, it is expected to happen over time [25] Question: Trends in Optical domain - Management reported strong momentum in Optical, particularly due to new tier one customers in Europe [30] Question: Operating margin expansion expectations - Management expects operating margin expansion in 2026, with a focus on maintaining operating expenses [40] Question: Minority interest and shareholder redemptions - Management noted nominal activity in redemptions and expressed a desire for more proactive engagement with shareholders [44][48] Question: Dynamics of non-core asset business - Management confirmed that the old ADTRAN sync and timing business is included in the access and aggregation category and is currently being restructured [52][53]

Core Insights - ADTRAN Holdings, Inc. reported mixed results for Q3 2025, with revenues exceeding estimates but net income falling short [1][10] - The company experienced year-over-year revenue growth driven by strong demand across its segments, although macroeconomic challenges remain a concern [1] Financial Performance - The net loss for Q3 2025 was $10.3 million, or 12 cents per share, an improvement from a net loss of $33.3 million, or 38 cents per share, in the same quarter last year [2] - Non-GAAP earnings for the quarter were $3.7 million, or 5 cents per share, compared to a net loss of $5.3 million, or 7 cents per share, a year ago, missing the consensus estimate by one cent [3] Revenue Details - Total revenues for the quarter increased to $279.4 million from $227.7 million in the prior-year quarter, surpassing the consensus estimate of $275 million [4][10] - Network Solutions generated $232.5 million in revenues, up from $181.5 million in the prior-year quarter, while Services and Support revenues rose to $46.9 million from $46.2 million [5] Operational Metrics - Non-GAAP gross margin improved to 42.1% from 41.1% year-over-year, and non-GAAP operating income surged to $15.1 million from $0.5 million, reflecting respective margins of 5.4% and 0.2% [6] Cash Flow & Liquidity - In the first nine months of 2025, ADTRAN generated $87.5 million in cash from operating activities, down from $101.1 million in the prior-year period [7] - As of September 30, 2025, the company had $93.7 million in cash and cash equivalents, compared to $25.9 million in non-current lease obligations [7] Future Outlook - For Q4 2025, ADTRAN expects revenues to be in the range of $275-$285 million, with a projected non-GAAP operating margin between 3.5% and 7.5% [8][10]

Financial Performance - Revenue for Q3 2025 was $279.4 million, representing a 23% increase year-over-year[8] - Total revenue for Q3 2025 reached $279.4 million, a 22.7% increase from $227.7 million in Q3 2024[16] - Gross profit for Q3 2025 was $107.1 million, compared to $83.0 million in Q3 2024, reflecting a gross margin of 38.3%[20] - Non-GAAP operating income for the three months ended September 30, 2025, was $15.1 million, compared to a loss of $8.7 million in the same period of 2024[43] - Operating loss for the three months ended September 30, 2025, was $2.8 million, a significant improvement from a loss of $26.1 million in the same period of 2024[43] - Net loss attributable to ADTRAN Holdings, Inc. for Q3 2025 was $10.3 million, an improvement from a net loss of $33.3 million in Q3 2024[16] - Net loss attributable to ADTRAN Holdings, Inc. common stockholders for Q3 2025 was $9,743,000, a decrease from $19,037,000 in Q2 2025[50] - Total net loss inclusive of non-controlling interest for Q3 2025 was $(7,757,000), compared to $(18,258,000) in Q2 2025[50] Margins and Expenses - GAAP gross margin was 38.3%, while non-GAAP gross margin was 42.1%[8] - Non-GAAP operating margin for Q3 2025 was 5.4%, compared to a GAAP operating margin of (1.0)%[8] - Non-GAAP gross profit for Q3 2025 was $117.5 million, with a non-GAAP gross margin of 42.1%[20] - Operating expenses for the three months ended September 30, 2025, were $109.9 million, slightly down from $109.1 million in the previous quarter[43] - Acquisition-related expenses, amortizations, and adjustments totaled $12.0 million for the three months ended September 30, 2025[43] - Stock-based compensation expense for the three months ended September 30, 2025, was $2.9 million, compared to $3.5 million in the same period of 2024[43] - Interest expense for the three months ended September 30, 2025, was $5.5 million, a decrease from $5.7 million in the same period of 2024[48] - Total other expense for the three months ended September 30, 2025, was $3.8 million, compared to $4.5 million in the same period of 2024[48] Cash Flow and Liquidity - Net cash provided by operating activities for Q3 2025 was $12.2 million[8] - Cash, cash equivalents, and restricted cash totaled $101.2 million as of September 30, 2025[8] - Cash flows from operating activities for Q3 2025 provided $87.5 million, down from $101.1 million in Q3 2024[18] - The company reported a net cash increase of $20.3 million for Q3 2025, compared to a $1.9 million increase in Q3 2024[18] - Free cash flow (Non-GAAP) for Q3 2025 was $(4,841,000), a significant decrease from $18,327,000 in Q2 2025[55] - Net cash provided by operating activities for Q3 2025 was $12,188,000, down from $32,160,000 in Q2 2025[55] Assets and Liabilities - Total assets increased to $1,208.9 million as of September 30, 2025, up from $1,171.4 million at the end of 2024[14] - Total liabilities rose to $665.2 million, compared to $621.5 million at the end of 2024[14] Future Guidance - The company expects Q4 2025 revenue to be between $275.0 million and $285.0 million, with a non-GAAP operating margin guidance of 3.5% to 7.5%[3] - The company is focused on driving sustainable growth and maximizing long-term stockholder value amid healthy demand and key technology transitions[2] Research and Development - Research and development expenses for the nine months ended September 30, 2025, totaled $152.4 million, down from $172.1 million in the same period of 2024[16] Goodwill and Impairments - Goodwill impairment charge was recorded in the nine months ended September 30, 2025, amounting to $297.4 million, primarily due to decreased projected revenue growth rates[42]