​Ribbon Communications Inc. (NASDAQ:RBBN) is one of the Best Value Penny Stocks to Buy Now. On February 25, Ribbon Communications Inc. (NASDAQ:RBBN) announced its strategic partnership with Amazon Web Services to deliver a cloud-native voice communications solution available on AWS Marketplace. ​The company said that the solution integrates Ribbon’s key products, including Session Border Controller Policy and Routing Server, and Application Management Platform to offer secure session control and centraliz ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 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 001-38267 RIBBON COMMUNICATIONS INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorp ...

Core Insights - Ribbon Communications is a significant player in the communication network software industry, providing advanced software solutions for secure and efficient business communication [1] - The company has faced a downgrade from B. Riley from a Buy to a Neutral rating despite reporting strong quarterly earnings [2] Financial Performance - Ribbon reported earnings per share of $0.59, which exceeded the Zacks Consensus Estimate of $0.11 by 436.36%, indicating strong profitability [2][5] - The company's revenue for the quarter ending December 2025 was $227.32 million, which was 4.85% below the Zacks Consensus Estimate and a decline from $251.36 million in the previous year [3][5] Stock Performance - The current stock price is $2.72, reflecting a slight increase of approximately 1.12%, with trading occurring between $2.62 and $2.75 [4] - Over the past year, Ribbon's stock has experienced volatility, with a high of $5.38 and a low of $2.60, and the market capitalization is approximately $480.35 million [4]

分组1 - Ribbon Communications reported quarterly earnings of $0.59 per share, significantly exceeding the Zacks Consensus Estimate of $0.11 per share, compared to earnings of $0.16 per share a year ago [1] - The earnings surprise of +436.36% marks a notable improvement from the previous quarter, where the company reported earnings of $0.04 per share against an expectation of $0.06 per share, resulting in a surprise of -33.33% [2] - The company posted revenues of $227.32 million for the quarter, missing the Zacks Consensus Estimate by 4.85%, and down from $251.36 million in the same quarter last year [3] 分组2 - Ribbon Communications shares have declined approximately 6.6% since the beginning of the year, while the S&P 500 has gained 0.5% [4] - The current consensus EPS estimate for the upcoming quarter is breakeven on revenues of $193.56 million, and $0.24 on revenues of $901.47 million for the current fiscal year [8] - The Communication - Network Software industry, to which Ribbon Communications belongs, is currently ranked in the bottom 19% of over 250 Zacks industries, indicating potential challenges for stock performance [9]

Financial Data and Key Metrics Changes - In Q4 2025, Ribbon generated revenues of $227 million, a decrease of 10% from the prior year [14] - For the full year, revenues were $845 million, an increase of 1% or $11 million year-over-year [14] - Adjusted EBITDA for Q4 was $40 million, a $15 million decrease from the prior year [15] - Non-GAAP gross margin for Q4 was 55.4%, down 270 basis points due to lower software revenue [14] - Non-GAAP net income for Q4 was $106 million, a $78 million improvement year-over-year, driven by a tax benefit [16] Business Line Data and Key Metrics Changes - In the IP optical networks segment, Q4 revenues were $85 million, a 2% decrease year-over-year [17] - Cloud-and-edge segment revenue in Q4 was $142 million, down 14% year-over-year but up 14% sequentially [17] - For the full year, cloud-and-edge sales increased 1%, with service provider sales growing 8% [13] Market Data and Key Metrics Changes - Sales to U.S. federal agencies decreased by approximately $10 million year-over-year in Q4 [7] - Sales to global service providers increased 5% and accounted for 70% of overall sales [8] - Sales in the Asia-Pacific region grew 19% year-over-year, driven by significant business growth in India [8] Company Strategy and Development Direction - The company aims to drive profitable growth through modernization projects with service providers and enterprises [21] - There is a focus on integrating voice technologies with AI platforms, particularly through the Acumen AIOps platform [24] - The company is exploring opportunities in high-speed broadband infrastructure, particularly in underserved regions [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the backlog and customer base for secure voice and IP optical solutions [21] - The company is taking a cautious approach to 2026 guidance due to macro uncertainties and restructuring efforts [28] - Management expects revenue growth to be back-end loaded in 2026, with significant opportunities anticipated in the second half of the year [43] Other Important Information - The company repurchased approximately 972,000 shares in Q4, totaling 2.5 million shares for the year [19] - A deferred tax benefit of approximately $90 million was recognized in Q4, providing a favorable impact on non-GAAP EPS [15] Q&A Session Summary Question: Details on new cloud and edge bookings - The $50 million in new bookings were from non-Verizon customers, spread across a growing base of about a dozen different customers [32] Question: Clarification on delays affecting revenue - Delays were primarily due to project backlog and budget issues, with significant impacts from U.S. federal and service provider customers [38][39] Question: Expectations for sequential growth throughout the year - Management indicated that they expect sequential growth after the first quarter, with a cautious outlook due to various macro factors [40][41] Question: Federal segment revenue decline - U.S. federal business revenue was approximately $10 million in Q4, down from over $20 million in the previous year [71] Question: Insights on Acumen platform POCs - The company is focusing on deploying Acumen with lead customers and has several POCs lined up, aiming for revenue generation in the second half of the year [80]

Financial Data and Key Metrics Changes - In Q4 2025, Ribbon generated revenues of $227 million, a decrease of 10% from the prior year [14] - For the full year, revenues were $845 million, an increase of 1% or $11 million year-over-year [14] - Adjusted EBITDA for Q4 was $40 million, a $15 million decrease from the prior year [15] - Non-GAAP net income for Q4 was $106 million, a $78 million improvement year-over-year, driven by a tax benefit [16] Business Line Data and Key Metrics Changes - IP Optical Networks revenue in Q4 was $85 million, a 2% decrease versus the prior year, while full year revenue was $333 million, up 1% from 2024 [16] - Cloud and Edge revenue in Q4 was $142 million, down 14% year-over-year, but full year revenues were $511 million, a $6 million increase from 2024 [17] - For the full year, sales to global service providers increased 5% and were 70% of overall sales, while sales to enterprise customers increased 2% year-over-year [8] Market Data and Key Metrics Changes - Sales to U.S. federal agencies were approximately $10 million lower than the fourth quarter of 2024 [7] - EMEA sales were down year-over-year due to reduced sales to Russia, while excluding Russia, sales in EMEA were flat [8] - Sales in the Asia-Pacific region grew 19% year-over-year, significantly driven by business in India [8] Company Strategy and Development Direction - The company aims to drive profitable growth through modernization projects with service providers, governments, and enterprises [21] - There is a focus on integrating voice technologies with AI platforms, particularly through the Acumen AIOps platform [24] - The company is exploring opportunities in high-speed broadband infrastructure, particularly in underserved regions [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism despite a dynamic macro environment, citing a strong backlog and customer base [4] - The company is taking a cautious approach for 2026 due to uncertainties in investment priorities and federal spending [28] - Management expects revenue growth to be back-end loaded in 2026, with significant opportunities anticipated in the second half of the year [43] Other Important Information - The company repurchased approximately 972,000 shares of common stock in Q4 for a total cost of approximately $3.3 million [19] - A deferred tax benefit of approximately $90 million was recognized in Q4, resulting in cash tax savings of $15 million-$20 million per annum [15] Q&A Session Summary Question: Details on new Cloud and Edge bookings - The $50 million of new bookings were from non-Verizon customers, spread across a growing base of about a dozen different customers [32] Question: Clarification on delays affecting revenue - Delays were primarily due to backlog projects and budget issues, with significant impacts from a U.S. customer undergoing restructuring [38][39] Question: Expectations for sequential growth throughout the year - Management indicated that they expect sequential growth throughout the year, with a cautious approach due to current uncertainties [40][41] Question: Federal segment revenue decline - U.S. federal business revenue was approximately $10 million in Q4, down from over $20 million in the prior year [70] Question: Insights on Acumen platform POCs - The company is in deployment with its lead customer and has about a dozen other POCs lined up, focusing on demonstrating OpEx savings [78]

Financial Data and Key Metrics Changes - In Q4 2025, Ribbon generated revenues of $227 million, a decrease of 10% from the prior year [15] - For the full year, revenues were $845 million, an increase of 1% or $11 million year-over-year [15] - Fourth quarter non-GAAP gross margin was 55.4%, down 270 basis points due to lower software revenue and higher professional services revenue [15] - Adjusted EBITDA for the quarter was $40 million, a $15 million decrease from the prior year [15] - Quarterly non-GAAP net income was $106 million, a $78 million improvement year-over-year, driven by a tax benefit [17] Business Line Data and Key Metrics Changes - In the IP optical networks segment, Q4 revenues were $85 million, a 2% decrease versus the prior year [18] - Cloud-and-edge segment revenue in Q4 was $142 million, down 14% year-over-year, but up 14% sequentially [18] - For the full year, cloud-and-edge sales increased 1%, with service provider sales growing 8% and enterprise and government sales decreasing 16% [13] Market Data and Key Metrics Changes - Sales to global service providers increased 5% and accounted for 70% of overall sales [8] - Sales to enterprise customers increased 2% year-over-year, while sales to government and defense declined 23% [8] - Sales in the Asia-Pacific region grew 19% year-over-year, driven by significant business increases in India [8] Company Strategy and Development Direction - The company aims to capitalize on the modernization of voice technologies and integration with AI platforms [4][5] - There is a focus on expanding the customer base and reinforcing leadership in cloud-centric voice modernization [4] - The company is exploring creative ways to unlock and accelerate voice modernization across the industry [23] - A key goal is to secure similar programs outside the U.S. and sustain global investment in high-speed broadband infrastructure [25][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism despite a dynamic macro environment and budget uncertainties due to the U.S. government shutdown [4] - The company expects improved visibility in the government sector now that U.S. federal fiscal 2026 funding has been approved [24] - The outlook for 2026 reflects a cautious approach due to several near-term factors, including shifts in investment priorities and timing of federal spending [28] Other Important Information - The company repurchased approximately 972,000 shares of common stock in Q4 2025, totaling a cost of approximately $3.3 million [20] - A deferred tax benefit of approximately $90 million was recognized in Q4, resulting in significant net income improvement [16] Q&A Session Summary Question: Details on new cloud and edge bookings - The $50 million of new bookings were from non-Verizon customers, spread across a growing base of about a dozen different customers [33] Question: Delays in projects and budget issues - Delays were primarily due to customer restructuring and year-end budget issues, affecting both government and service provider segments [38][40] Question: Expectations for sequential growth throughout the year - The company expects sequential growth throughout the year, with a focus on the second half for significant ramp-up [41][43] Question: Federal segment revenue decline - U.S. federal business revenue was approximately $10 million in Q4 2025, down from over $20 million in Q4 2024 [72] Question: Acumen platform POC opportunities - The company is in deployment with its lead customer and has about a dozen other POCs lined up, focusing on operational savings [81]

Ribbon Communications Fourth Quarter & Full Year 2025 Results February 5, 2026 © 2026 Ribbon | Public 1 Note Regarding Forward-Looking Statements and Non-GAAP Financial Measures This presentation 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 presentation, including without limitation, statements regarding ...

Financial Performance - Fourth quarter 2025 revenue was $227 million, down from $251 million in Q4 2024, while full-year revenue increased to $845 million from $834 million in 2024[3] - GAAP operating income for Q4 2025 was $9 million, compared to $33 million in Q4 2024, and a full-year GAAP operating loss of ($3) million versus a profit of $17 million in 2024[3] - Non-GAAP adjusted EBITDA for Q4 2025 was $40 million, down from $55 million in Q4 2024, with full-year adjusted EBITDA at $107 million compared to $119 million in 2024[3] - Total revenue for Q4 2025 was $227.3 million, a 5.4% increase from $215.4 million in Q3 2025, but a decrease of 9.6% from $251.4 million in Q4 2024[30] - Gross profit for Q4 2025 was $121.1 million, resulting in a gross margin of 53.3%, compared to 50.1% in Q3 2025 and 55.7% in Q4 2024[30] - For the full year 2025, total revenue was $844.6 million, slightly up from $833.9 million in 2024[32] - For the year ended December 31, 2025, Ribbon Communications reported a net income of $39,636,000, a significant improvement from a net loss of $54,235,000 in 2024[36] - The company achieved a GAAP gross margin of 49.8% for the year ended December 31, 2025, compared to 52.7% in 2024[45] - Non-GAAP net income for the year ended December 31, 2025, was $118,131,000, up from $44,192,000 in 2024[45] - The company reported a non-GAAP diluted earnings per share of $0.66 for the year ended December 31, 2025, compared to $0.25 in 2024[45] Cash Flow and Liabilities - Cash and cash equivalents increased to $96.4 million as of December 31, 2025, up from $87.8 million a year earlier[34] - The company’s total liabilities stood at $763.3 million as of December 31, 2025, compared to $757.9 million in 2024[34] - Cash flows from operating activities for the year ended December 31, 2025, were $51,398,000, slightly up from $50,240,000 in 2024[36] - Ribbon Communications' net cash used in investing activities was $(25,342,000) for the year ended December 31, 2025, compared to $(22,868,000) in 2024[36] - The company reported a net cash used in financing activities of $(19,431,000) for the year ended December 31, 2025, compared to $37,706,000 in 2024[36] - The total cash, cash equivalents, and restricted cash at the end of the year was $98,131,000, up from $90,479,000 at the beginning of the year[36] Future Projections - The company projects 2026 revenue between $840 million and $875 million, with non-GAAP gross margin expected to be between 52.5% and 53.5%[5] - The first quarter of 2026 revenue is projected to be between $160 million and $170 million, with non-GAAP gross margin expected to be between 48% and 49%[5] - Revenue guidance for Q1 2026 is set at a midpoint of $165 million, with a range of +/- $5 million[50] - Full-year 2026 revenue guidance is projected at a midpoint of $857.5 million, with a range of +/- $17.5 million[50] - GAAP income from operations for FY 2026 is expected to be $22.2 million, with a non-GAAP outlook of $112.5 million, allowing for a +/- $7.5 million variance[50] Operational Highlights - The company achieved a record level of product and services bookings exceeding $50 million in Q4 2025, driven by new voice modernization programs[2] - U.S. Tier 1 service provider sales increased over 25% in 2025, indicating strong demand in the voice modernization customer base[1] - The company is targeting expansion in high-growth AI and defense markets, leveraging its established foundation in the U.S. and Europe[2] - The company plans to consider investments in rapidly growing private technology companies to differentiate its portfolio and expand into adjacent markets[2] Expenses and Costs - The company incurred restructuring and related expenses of $9.5 million in Q4 2025, compared to $3.5 million in Q3 2025 and $1.4 million in Q4 2024[30] - Adjusted EBITDA is used as a supplemental measure, excluding non-cash and non-operational expenses, to provide a clearer view of the company's performance[27] - The company recorded a tax indemnification write-off of $6 million related to its acquisition of ECI Telecom Group Ltd., which will expire on December 31, 2024[24] - Total stock-based compensation for the year was $19,406,000, an increase from $16,086,000 in the previous year[45] - Stock-based compensation for Q1 2026 is projected at $5.8 million, and for FY 2026 at $23.4 million[50] - Amortization of intangible assets is expected to be $9.8 million for Q1 2026 and $39.1 million for FY 2026[50] - Restructuring and related costs are anticipated to be $2.2 million for Q1 2026 and $8.3 million for FY 2026[50] - Litigation costs are projected at $0.3 million for Q1 2026 and $1.2 million for FY 2026[50]

Core Insights - Ribbon Communications Inc. reported strong cash flow and bookings driven by an expanding customer base in voice modernization, with U.S. Tier 1 service provider sales projected to increase over 25% in 2025 [1][2] - The fourth quarter results were affected by delays in customer projects and budget timing, but the company achieved a record level of product and services bookings, including over $50 million from new voice modernization programs [2][4] - The company is targeting growth in high-demand AI and defense markets, anticipating increased government spending in these areas [1][2] Financial Performance - Fourth Quarter 2025 financial results showed revenue of $227 million, down from $251 million in Q4 2024, with GAAP operating income of $9 million compared to $33 million in the previous year [4][5] - Non-GAAP adjusted EBITDA for Q4 2025 was $40 million, down from $55 million in Q4 2024, while GAAP gross margin decreased to 53.3% from 55.7% year-over-year [4][5] - For the full year 2025, total revenue was $845 million, slightly up from $834 million in 2024, but GAAP operating income turned to a loss of $3 million compared to a profit of $17 million in 2024 [4][5] Business Outlook - The company projects revenue for 2026 to be between $840 million and $875 million, with non-GAAP gross margin expected to range from 52.5% to 53.5% [6] - For Q1 2026, revenue is projected to be between $160 million and $170 million, with non-GAAP gross margin anticipated to be between 48% and 49% [6] - The company expects to benefit from a new tax advantage that could reduce future cash tax payments by approximately $15-$20 million over the next several years, starting in 2026 [2][6]