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]

Group 1 - Ribbon Communications Inc. will report its financial results for Q4 and the full year of 2025 on February 5, 2026, after market close [1] - A conference call will be held at 4:30 p.m. ET on the same day to discuss the financial results [1][2] - The company specializes in real-time communications technology and IP optical networking solutions, serving service providers, enterprises, and critical infrastructure sectors globally [3] Group 2 - Ribbon Communications focuses on modernizing networks for improved competitive positioning and business outcomes, leveraging cloud-native architectures, automation, and analytics tools [3] - The company emphasizes its commitment to Environmental, Social, and Governance (ESG) matters, providing an annual Sustainability Report to stakeholders [3]

Core Insights - Ribbon Communications Inc. is partnering with Aircall to deploy a suite of solutions in the AWS cloud, enhancing Aircall's global communications infrastructure and ensuring regulatory compliance [1][2][4] - Aircall is implementing several Ribbon solutions, including SBC SWe for voice network security, PSX for call routing, Analytics for network monitoring, and RAMP for application management [2] - The deployment on AWS provides Aircall with a cost-effective alternative to private data centers, enabling faster time-to-market and operational flexibility [3] Company Overview - Ribbon Communications specializes in real-time communications technology and IP optical networking solutions, serving service providers, enterprises, and critical infrastructure sectors globally [1][4] - The company focuses on modernizing networks to improve competitive positioning and business outcomes, offering a comprehensive portfolio of software-centric solutions, cloud-native offers, and security tools [4] Aircall Overview - Aircall is an integrated customer communications platform trusted by over 20,500 companies, unifying voice and digital channels into a seamless platform [5] - The platform offers one-click integrations with leading CRMs and over 250 business tools, utilizing AI-powered insights to enhance customer interactions [5] - Aircall has a global team of over 600 employees across nine offices, driving smarter conversations and measurable success for businesses [5]