| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change | | --- | --- | --- | --- | --- | | EPS (Non-GAAP) | $(0.00) | N/A | $(0.13) | 100.0 % | | Revenue (GAAP) | $265.1 million | $260.2 million | $226.0 million | 17.3 % | | Gross Margin (Non-GAAP) | 41.4 % | | 41.8 % | (0.4 pp) | | Operating Margin (Non-GAAP) | 3.0 % | | 0.6 % | 2.4 pp | | Free Cash Flow (Non-GAAP) | $18.3 million | | $3.9 million | 369.2 % | What Adtran Does and Where It's Focused Adtran builds and supplies hardware and software to ...

Financial Data and Key Metrics Changes - ADTRAN reported second quarter revenue of $265.1 million, representing a 17% year-over-year increase and a 7% sequential increase, exceeding the high end of previous guidance [21][7] - Non-GAAP gross margin for the quarter was 41.4%, with a slight decline attributed to product mix and higher transportation costs [24][26] - Non-GAAP operating profit was $8 million, or 3% of revenue, compared to $1.4 million, or 0.6% of revenue, in the same quarter last year [25][27] - Cash from operations was $32.2 million, and free cash flow was $18.3 million, reflecting solid improvement in liquidity [29][19] Business Line Data and Key Metrics Changes - Optical Networking Solutions revenue was $90.1 million, accounting for 34% of total revenue, with a 22% year-over-year growth [22][8] - Access and Aggregation revenue reached $91.2 million, also 34% of total revenue, increasing by 30% year-over-year [22][10] - Subscriber Solutions revenue was $83.8 million, or 32% of total revenue, with a 2% year-over-year increase [22][12] Market Data and Key Metrics Changes - Non-U.S. revenue accounted for 55% of total revenue, while U.S. revenue comprised 45% [23] - The company added 18 new optical customers during the quarter, indicating strong customer acquisition [9] Company Strategy and Development Direction - The company is focused on strengthening its capital structure and enhancing financial capabilities while deepening engagement with stakeholders [18][20] - Continued investments in next-generation optical, fiber access, and subscriber solutions are expected to drive future growth [14][15] - The company aims to achieve a positive net cash position and is evaluating opportunities to monetize non-core assets [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustained growth due to improving demand trends across key market segments [6][15] - The outlook for the second half of the year remains positive, with expectations for continued revenue growth and improved profitability [33][15] Other Important Information - The company is actively working on a robust foreign exchange hedging strategy to manage currency fluctuations [26][50] - The company is exploring a sale-leaseback transaction on its East Tower as part of its capital management strategy [70][30] Q&A Session Summary Question: Strength in large service providers in Europe - Management confirmed strength in both European and U.S. large service providers, with ongoing positive momentum in the market [36][38] Question: Emerging DCI opportunities and Mosa networks - Management acknowledged significant activity in RFPs related to data center interconnectivity, indicating early-stage business wins [40][42] Question: Balance sheet and share redemptions - Management clarified that share redemptions were well-managed and reduced shares outstanding, which is viewed positively for long-term value [43][44] Question: Market share gains - Management reported gaining market share in the U.S. tier two space and added several new customers in both optical and subscriber solutions [47][48] Question: Operating leverage and FX management - Management indicated that operating leverage is expected to improve, with ongoing efforts to manage foreign exchange impacts [49][54] Question: U.S. revenue strength and BCS bankruptcy - Management confirmed that the bankruptcy of BCS has led to increased demand, positively impacting U.S. revenue [59][60] Question: Sale of North Star Tower - Management clarified that negotiations for the North Star Tower are ongoing, with efforts to explore additional offers [68][70] Question: Growth expectations for subscriber solutions - Management expressed confidence in continued growth for subscriber solutions, driven by backlog and strong demand [73][75]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number: 001-41446 ADTRAN Holdings, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 87-2164282 (State or o ...

Financial Data and Key Metrics Changes - The past year was characterized by operational discipline and strategic investment, leading to tangible improvements in financial performance and a stronger market position, especially in the second half of 2024 [3] - The company entered 2025 with improved financial fundamentals, including cash flow generation [3] Business Line Data and Key Metrics Changes - Specific business line performance data was not detailed in the provided content, but the overall focus was on the company's differentiated portfolio offering and its commitment to operational excellence [4] Market Data and Key Metrics Changes - There is strong support for fiber infrastructure expansion, particularly in key U.S. and European markets, indicating positive market conditions for the company [4] Company Strategy and Development Direction - The company is committed to disciplined execution, innovation, and operational excellence to create long-term value for stockholders [4] - The management expressed confidence in the company's position to capitalize on the reinvestment by communication service providers in their networks following a recent market slowdown [4] Management Comments on Operating Environment and Future Outlook - Management noted that the momentum is expected to continue into the second half of 2025, driven by the reinvestment in networks by communication service providers [4] - The company emphasized its resilience and commitment to building a stronger, more agile organization poised for long-term success [5] Other Important Information - The meeting included the election of directors, an advisory vote on executive compensation, and the ratification of the independent auditor, PricewaterhouseCoopers LLP, for the fiscal year ending December 31, 2025 [10][12] Q&A Session Summary - No specific questions and answers were provided in the content, as the focus was primarily on the meeting proceedings and voting outcomes.

Company Overview - ADTRAN Holdings (ADTN) shares increased by 9.2% to $9.66 in the last trading session, with a notable trading volume, and have gained 13.5% over the past four weeks [1][2] Financial Performance - Preliminary second-quarter 2025 revenue estimates for ADTRAN are between $262.5 million and $267.5 million, surpassing previous guidance of $247.5 million to $262.5 million, driven by improved market conditions and rising product demand [2][3] - The company anticipates quarterly earnings of $0.01 per share, reflecting a year-over-year increase of 104.2%, with expected revenues of $257 million, a 13.7% rise from the same quarter last year [3] Market Sentiment - Management believes that favorable business conditions are contributing to higher demand trends [3] - The consensus EPS estimate for ADTRAN has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [5] Industry Context - ADTRAN is part of the Zacks Technology Services industry, where another company, Jamf Holding (JAMF), saw a 3.5% increase in its stock price but has returned -13.2% over the past month [5][6] - Jamf Holding's consensus EPS estimate has also remained unchanged, with a year-over-year change of +21.4% expected [6]

ADTRAN Holdings, Inc. Form 8-K (July 16, 2025) [Item 2.02 Results of Operations and Financial Condition](index=3&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) ADTRAN Holdings, Inc. announced preliminary Q2 2025 revenue on July 16, 2025 - ADTRAN announced its preliminary revenue for the fiscal quarter ended June 30, 2025[6](index=6&type=chunk) - The announcement was made via a press release on July 16, 2025, which is attached as Exhibit 99.1[6](index=6&type=chunk) [Item 7.01 Regulation FD Disclosure](index=3&type=section&id=Item%207.01%20Regulation%20FD%20Disclosure) ADTRAN issued an ad hoc announcement in Germany on July 16, 2025, disclosing preliminary Q2 2025 revenue to comply with EU Market Abuse Regulation - Due to its listing on the Frankfurt Stock Exchange, ADTRAN is subject to German and European securities laws, specifically the Market Abuse Regulation (MAR)[7](index=7&type=chunk) - MAR requires real-time disclosure if management's expected results significantly deviate from prior guidance or analyst consensus[7](index=7&type=chunk) - In compliance with MAR, ADTRAN published an ad hoc announcement in Germany on July 16, 2025, disclosing preliminary revenue for Q2 2025. This announcement is attached as Exhibit 99.2[7](index=7&type=chunk)[8](index=8&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=3&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists documents filed with the Form 8-K, including a press release, ad hoc notification, and interactive data file List of Exhibits | Exhibit Number | Description | | :--- | :--- | | 99.1 | Press Release dated July 16, 2025 | | 99.2 | Ad Hoc Notification dated July 16, 2025 (English translation) | | 104 | Cover Page Interactive Data File – the cover page iXBRL tags are embedded within the Inline XBRL document |

Group 1 - The stock of ADTRAN Holdings, Inc. (ADTN) is experiencing significant attention due to high implied volatility in the options market, particularly the Jul 18, 2025 $10 Put option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in ADTRAN's stock price, potentially due to an upcoming event [2] - Currently, ADTRAN Holdings holds a Zacks Rank 3 (Hold) in the Technology Services industry, which is in the top 18% of the Zacks Industry Rank, but analysts have not increased earnings estimates for the current quarter, with a consensus estimate dropping from 5 cents to 1 cent per share [3][4] Group 2 - The high implied volatility surrounding ADTRAN could indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as expected by expiration [4]

Company Overview - Adtran's fiscal year 2024 revenue reached $923 million[6] - The company has over 3,100 employees worldwide and operates in 50 locations[6] - Adtran has over 1,000 global technology patents and over 35 years of experience[6] Market Trends and Outlook - The company anticipates increasing fiber infrastructure growth due to fiber expansion, vendor consolidation, a shift away from high-risk Chinese vendors, and investments focused on AI[5] - The Carrier Ethernet market is projected to reach $5 billion, with a CAGR of 3.6% between 2025 and 2028[21] - The PON OLT+ONT market is projected to reach $5 billion, with a CAGR of 6.8% between 2025 and 2028[21] - The Metro WDM market is projected to reach $600 million between 2025 and 2028[21] Q1 2025 Financial Performance - Q1 2025 revenue was $247.7 million[26, 33] - Non-GAAP gross margin for Q1 2025 was 42.5%[26, 41] - Q1 2025 non-GAAP operating margin was 3.9%[26, 41] - Operating cash flow for Q1 2025 was $43.2 million[26]

Core Viewpoint - ADTRAN Holdings (ADTN) shares have increased by approximately 3.2% over the past month, which is underperforming compared to the S&P 500 index [1] Group 1: Recent Performance - The stock has shown a positive trend in the last month, but there are concerns about whether this will continue leading up to the next earnings release [1] - The company is currently facing a downward trend in estimates revisions over the past month [2]

Group 1 - Pomerantz LLP is investigating claims on behalf of investors of ADTRAN Holdings, Inc. regarding potential securities fraud or unlawful business practices by the company and its officers or directors [1] - On May 13, 2025, ADTRAN disclosed that its audited consolidated financial statements for the years ended December 31, 2024, and December 31, 2023, as well as its unaudited condensed financial statements for interim periods, should no longer be relied upon and would be restated [3] - Following the announcement of the financial restatement, ADTRAN's stock price fell by $0.41 per share, or 4.79%, closing at $8.15 per share on May 14, 2025 [3] Group 2 - The Pomerantz Firm is recognized as a leading firm in corporate, securities, and antitrust class litigation, with a history of fighting for the rights of victims of securities fraud and corporate misconduct [4] - The firm has a track record of recovering multimillion-dollar damages awards on behalf of class members [4]