Group 1 - Ribbon Communications Inc. will report its financial results for Q2 2025 on July 23, 2025, 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 [2] - The company provides secure cloud communications and IP optical networking solutions globally, focusing on modernizing networks for improved business outcomes [3] Group 2 - Ribbon Communications emphasizes its commitment to Environmental, Social, and Governance (ESG) matters, providing an annual Sustainability Report [3]

Company Overview - Ribbon Communications Inc. is a leading supplier of real-time communications technology and IP optical networking solutions, focusing on assisting service providers, enterprises, and critical infrastructure operators in modernizing and safeguarding their networks and services [1][2] - The company offers a comprehensive portfolio of secure cloud communications and IP optical networking solutions, emphasizing cloud-native architectures, automation, analytics tools, and security [2] Upcoming Events - Ribbon Communications executives will participate in the Rosenblatt 5th Annual Technology Virtual Summit Tech Conference on June 10, 2025, and the Northland Capital Virtual Growth Conference on June 25, 2025 [5] - Qualified participants can set up virtual meetings with Ribbon leadership by contacting the company [1]

Group 1: Penny Stocks Overview - Trading penny stocks allows investors to buy a significant number of shares with limited capital, potentially generating substantial profits from small price movements [1] - Penny stocks are often associated with small-cap or micro-cap companies, many of which are unprofitable and may lack revenue [1][2] Group 2: Microvast Holdings Inc. - Microvast Holdings Inc. (NASDAQ: MVST) is a leader in battery technologies for electric vehicles and energy storage, holding over 800 patents [4] - The company reported a strong earnings performance, beating revenue expectations and maintaining a full-year revenue growth guidance of 18% to 25% [5] - MVST stock has risen 80% in the last 30 days, partly due to its recent addition to the Russell 3000 index, which may attract institutional interest [6] Group 3: Ribbon Communications Inc. - Ribbon Communications Inc. (NASDAQ: RBBN) is positioned as a key player in AI infrastructure, particularly in telecommunications for large language models [8][9] - The company has maintained its full-year revenue guidance between $870 million and $890 million, exceeding analysts' forecasts [10] - RBBN stock has increased over 20% following its latest earnings report, with a consensus price target of $5.88, indicating a potential upside of 49.8% [11] Group 4: Intellicheck Inc. - Intellicheck Inc. (NYSE: IDN) focuses on identity verification and fraud detection within the cybersecurity sector, a rapidly growing niche [12][13] - The company reported 100% renewal rates and high gross margins, with annual contract values exceeding $10 million [14] - Analysts have set a consensus price target of $5.83 for IDN stock, suggesting potential for speculative investment [15]

Core Viewpoint - Ribbon Communications Inc. has announced a share repurchase program of up to $50 million, reflecting the Board's confidence in the company's strategic plan and improved performance, particularly highlighted by record financial results in Q4 2024 [1][2]. Financial Performance - The company reported a 30% increase in earnings for 2024, achieving results at the high end of its original guidance [2]. - Business with US Tier One Service Providers doubled in 2024, supported by a multi-year contract with Verizon for modernizing telecom voice infrastructure [2]. Share Repurchase Program - The share repurchase program will commence on June 5, 2025, and continue through December 31, 2027 [1]. - The program may involve purchases in the open market, privately negotiated transactions, or structured through investment banking institutions, with the timing and amount subject to various factors [2]. Business Strategy and Outlook - The company has seen significant growth in business with Enterprise customers and U.S. Federal agencies [2]. - There is improved visibility in the business with positive book-to-bill ratios and a growing backlog, indicating a focus on driving profitable growth and strong cash flow generation [2]. Company Overview - Ribbon Communications provides secure cloud communications and IP optical networking solutions globally, focusing on modernizing networks for better competitive positioning [3]. - The company emphasizes its commitment to Environmental, Social, and Governance (ESG) matters, offering an annual Sustainability Report to stakeholders [3].

[PART I FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Ribbon Communications reported Q1 2025 total revenue of **$181,279 thousand**, a net loss of **$26,227 thousand**, and cash used in operating activities of **$3,535 thousand** Condensed Consolidated Statements of Operations (Q1 2025 vs Q1 2024) | Financial Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Total Revenue** | **$181,279 thousand** | **$179,664 thousand** | | Gross Profit | $82,370 thousand | $91,955 thousand | | Loss from Operations | $(19,610) thousand | $(13,486) thousand | | **Net Loss** | **$(26,227) thousand** | **$(30,361) thousand** | | Diluted Loss Per Share | $(0.15) | $(0.18) | Condensed Consolidated Balance Sheets Highlights | Balance Sheet Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $71,243 thousand | $87,770 thousand | | Total Current Assets | $425,063 thousand | $463,662 thousand | | **Total Assets** | **$1,137,477 thousand** | **$1,162,554 thousand** | | Total Current Liabilities | $305,180 thousand | $328,873 thousand | | Long-term debt, net | $329,176 thousand | $330,726 thousand | | **Total Liabilities** | **$755,662 thousand** | **$757,933 thousand** | | Total Stockholders' Equity | $381,815 thousand | $404,621 thousand | Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(3,535) thousand | $13,100 thousand | | Net cash used in investing activities | $(12,149) thousand | $(2,663) thousand | | Net cash used in financing activities | $(1,812) thousand | $(5,843) thousand | | **Net (decrease) increase in cash** | **$(16,665) thousand** | **$4,301 thousand** | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's two operating segments, significant customer Verizon (**15%** of Q1 2025 revenue), a new **$2,400 thousand** restructuring plan, **$347,400 thousand** in term debt, and ongoing litigation with Charter Communications - The company operates and reports in two segments: **Cloud and Edge** and **IP Optical Networks**[25](index=25&type=chunk)[112](index=112&type=chunk) - Verizon Communications Inc. was a major customer, accounting for **15%** of total revenue in the three months ended March 31, 2025[122](index=122&type=chunk) - In Q1 2025, the company initiated the '2025 Restructuring Plan' focused on workforce reductions, recording **$2,400 thousand** in related expenses[53](index=53&type=chunk) - As of March 31, 2025, the company had an outstanding term debt balance of **$347,400 thousand** under its 2024 Credit Facility[43](index=43&type=chunk)[67](index=67&type=chunk)[213](index=213&type=chunk) - The company is in ongoing litigation with **Charter Communications**, which filed complaints alleging breach of contract for indemnification obligations, with a trial date set for **June 2025** in Delaware[146](index=146&type=chunk)[147](index=147&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=50&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses economic factors like supply chain issues and inflation, noting Q1 2025 revenue of **$181,279 thousand**, a gross margin decline to **45.4%**, operating expenses of **$102,000 thousand**, and **$3,535 thousand** cash used in operations, while affirming sufficient liquidity for the next twelve months - Key economic factors impacting the business include ongoing **supply chain disruptions**, the **wars in Israel and Ukraine** (affecting employee availability and customer purchasing), and persistent **inflation** and **high interest rates**[150](index=150&type=chunk)[152](index=152&type=chunk)[154](index=154&type=chunk) - The company initiated the 2025 Restructuring Plan, recording **$2,400 thousand** in expenses, and continued to incur costs related to its 2023 and 2022 plans[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk) - Cash used in operating activities was **$3,535 thousand** in Q1 2025, compared to cash provided of **$13,100 thousand** in Q1 2024, largely driven by payments of variable employee compensation and changes in working capital[205](index=205&type=chunk)[223](index=223&type=chunk) - Management expects total revenue in 2025 to **increase** compared to 2024, driven by growth in the **Cloud & Edge segment**, particularly from Verizon, and growth in the **IP Optical segment** in North America and EMEA[185](index=185&type=chunk) [Results of Operations](index=56&type=section&id=Results%20of%20Operations) Q1 2025 total revenue increased by **0.9%** to **$181,279 thousand**, driven by Service revenue growth offsetting Product decline, with Cloud and Edge segment revenue growing to **$107,591 thousand** while IP Optical Networks declined, and overall gross margin fell to **45.4%** due to mix, alongside decreased R&D and Sales & Marketing expenses but increased interest expense Revenue by Type (Q1 2025 vs Q1 2024) | Revenue Type | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Product | $81,991 | $87,610 | $(5,619) | (6.4)% | | Service | $99,288 | $92,054 | $7,234 | 7.9% | | **Total** | **$181,279** | **$179,664** | **$1,615** | **0.9%** | Revenue by Segment (Q1 2025 vs Q1 2024) | Segment | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Cloud and Edge | $107,591 | $101,669 | | IP Optical Networks | $73,688 | $77,995 | - Gross margin decreased to **45.4%** in Q1 2025 from **51.2%** in Q1 2024, with the IP Optical segment margin lower due to regional mix and the Cloud and Edge margin lower due to product mix[186](index=186&type=chunk)[187](index=187&type=chunk) - R&D expenses decreased by **4.8%** to **$43,600 thousand** due to lower headcount and subcontractor costs in both segments[190](index=190&type=chunk) - Sales and Marketing expenses decreased by **8.4%** to **$31,800 thousand**, primarily due to lower employee-related costs and agent commissions[193](index=193&type=chunk) - Interest expense, net, increased by **75.4%** to **$10,500 thousand**, mainly due to higher interest margins under the 2024 Credit Facility compared to the previous facility[198](index=198&type=chunk) [Liquidity and Capital Resources](index=65&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity showed cash at **$74,000 thousand** as of March 31, 2025, down from **$90,000 thousand** at year-end 2024, following a June 2024 debt refinancing into a new **$385,000 thousand** credit facility with a **$347,400 thousand** outstanding term loan, and management believes current liquidity is sufficient for the next twelve months - Cash, cash equivalents, and restricted cash decreased from **$90,000 thousand** at Dec 31, 2024 to **$74,000 thousand** at March 31, 2025[205](index=205&type=chunk) - In June 2024, the company entered a new **$385,000 thousand** credit facility (**$350,000 thousand** term loan, **$35,000 thousand** revolver) to repay its 2020 facility and redeem preferred stock[206](index=206&type=chunk) - As of March 31, 2025, the outstanding balance on the 2024 Term Loan was **$347,400 thousand**, with an average interest rate of **10.6%**, and the revolving facility was undrawn[213](index=213&type=chunk) - The company believes its current cash balances and available borrowings under the 2024 Credit Facility are **sufficient** to meet working capital and capital expenditure needs for at least the next twelve months[230](index=230&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in market risk exposures related to interest rates and foreign currency exchange rates since fiscal year-end 2024 - There have been **no material changes** in market risk from the information provided in the Annual Report on Form 10-K for the year ended December 31, 2024[233](index=233&type=chunk) [Controls and Procedures](index=73&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[234](index=234&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[235](index=235&type=chunk) [PART II OTHER INFORMATION](index=49&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ongoing litigation with Charter Communications regarding alleged breach of contract for indemnification obligations, with a trial date set for June 2025 in Delaware - The company is involved in a legal dispute with **Charter Communications Operating, LLC** over alleged breach of contract for indemnification obligations[146](index=146&type=chunk) - Discovery is ongoing, and a trial date for the Delaware complaint has been set for **June 2025**[147](index=147&type=chunk) [Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - **No material changes** to the risk factors described in the Annual Report on Form 10-K for the year ended December 31, 2024, occurred during the three months ended March 31, 2025[238](index=238&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company repurchased **226,862** common shares at an average price of **$4.13** per share to satisfy tax withholding obligations from restricted stock awards Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2025 | 9,399 | $4.02 | | February 2025 | 33,998 | $5.13 | | March 2025 | 183,465 | $3.95 | | **Total** | **226,862** | **$4.13** | - The share purchases were conducted to satisfy employee **tax withholding obligations** upon the vesting of restricted stock awards[239](index=239&type=chunk) [Other Information](index=49&type=section&id=Item%205.%20Other%20Information) No company directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - **No directors or officers** adopted, terminated, or modified a Rule 10b5-1 trading arrangement during the three months ended March 31, 2025[240](index=240&type=chunk) [Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - The report includes **CEO and CFO certifications** under Sections 302 and 906 of the **Sarbanes-Oxley Act of 2002**[241](index=241&type=chunk) - **Inline XBRL** Instance Documents and related taxonomy files are filed as exhibits[241](index=241&type=chunk)

Financial Data and Key Metrics Changes - In Q1 2025, Ribbon generated revenues of $181 million, an increase of 1% year over year [19] - Non-GAAP gross margin for Q1 was 48.6%, lower than expected due to higher sales in India and increased hardware shipments [19] - Adjusted EBITDA for Q1 was $6 million, a decrease of $6 million year over year, primarily due to tighter margins across segments [20] - Non-GAAP net loss for Q1 was $5 million compared to a $1 million loss in the prior year, resulting in a non-GAAP diluted loss per share of $0.03 [21] Business Line Data and Key Metrics Changes - Cloud and Edge segment revenues in Q1 were $108 million, a 6% year-over-year increase, with product and professional services revenue increasing 17% [22] - IP Optical segment revenues in Q1 were $74 million, a 6% decrease year over year; excluding Eastern Europe, sales were up 25% [23] - Cloud and Edge non-GAAP gross margins were 62.5%, down 350 basis points from the prior year due to a higher mix of professional services and hardware revenue [22] Market Data and Key Metrics Changes - Sales in India for the IP Optical segment increased 80% year over year, with strong performance in Southeast Asia and North America [15][18] - Service provider sales increased more than 10% year over year in Q1, with a significant increase in sales in the U.S. and India [8] - The backlog grew by 35% year over year, indicating strong demand and a book-to-bill ratio of 1.2 times [7] Company Strategy and Development Direction - The company is focusing on modernizing voice and data networks, with a strong emphasis on cloud technologies and AI deployments [5][6] - Ribbon is investing in new product development, particularly in routing platforms to support TDM elimination and IP over optical networks [31][32] - The company aims to improve gross margins in Q2 with a better product mix and regional profile [10][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong demand in the first half of 2025, projecting sales growth of 5% to 8% year over year [7] - The company anticipates a strong second quarter with sales growth of more than 10% year over year, driven by delayed enterprise deals and ongoing projects with U.S. Federal agencies [35] - Management noted that while there is uncertainty regarding U.S. tariffs, they do not expect a material impact on business operations [34] Other Important Information - Cash from operations was a usage of $4 million in Q1, with a closing cash balance of $74 million [24] - Total capital expenditures in Q1 were $12 million, with expectations for full-year CapEx to remain consistent with prior years [25] Q&A Session Summary Question: Any pull-ins due to tariff uncertainty? - Management indicated no strong evidence of pull-ins related to tariff uncertainty, with bookings consistent across the quarter [38] Question: Customer plans regarding potential tariffs? - Customers have not indicated changes in strategy or plans due to tariffs, and most service providers do not expect significant impacts [40] Question: Update on AT&T's Neptune ramp? - Management could not provide specific details but remains a strategic partner to AT&T and expects growth in IP optical in North America [42] Question: Benefits from retiring copper networks? - The company is involved in both eliminating copper and maintaining services through media gateways and software solutions [46] Question: Growth expectations for Cloud and Edge products? - Management expects Cloud and Edge sales to grow approximately 20% year over year in Q2, with IP Optical projected to grow 5% to 10% [49]

Ribbon Communications First Quarter 2025 Results April 29, 2025 © 2025 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 release, including without limitation, statements regarding our projected finan ...

Core Insights - Ribbon Communications reported a quarterly loss of $0.03 per share, missing the Zacks Consensus Estimate of $0.01, compared to a loss of $0.01 per share a year ago [1] - The company posted revenues of $181.28 million for the quarter, missing the Zacks Consensus Estimate by 5.67%, and showing a slight increase from $179.66 million year-over-year [3] - The stock has underperformed the market, losing about 11.5% since the beginning of the year, while the S&P 500 declined by 6% [4] Earnings Performance - The earnings surprise for the quarter was -400%, contrasting with a previous quarter where the company exceeded expectations by 33.33% [2] - Over the last four quarters, Ribbon Communications has surpassed consensus EPS estimates two times [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $207.13 million, and for the current fiscal year, it is $0.27 on revenues of $881.53 million [8] - The estimate revisions trend for Ribbon Communications is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [7] Industry Context - The Communication - Network Software industry, to which Ribbon Communications belongs, is currently in the bottom 13% of over 250 Zacks industries, suggesting potential challenges ahead [9] - A10 Networks, another company in the same industry, is expected to report quarterly earnings of $0.19 per share, reflecting a year-over-year change of +11.8% [10]

Financial Data and Key Metrics Changes - In Q1 2025, Ribbon generated revenues of $181 million, an increase of 1% year over year [19] - Non-GAAP gross margin for Q1 was 48.6%, lower than expected due to higher sales in India and increased hardware shipments [19] - Adjusted EBITDA for Q1 was $6 million, a decrease of $6 million year over year, driven by tighter margins across segments [20] Business Line Data and Key Metrics Changes - Cloud and Edge segment revenues in Q1 were $108 million, a 6% year-over-year increase, with product and professional services revenue increasing 17% [22] - IP Optical segment revenues in Q1 were $74 million, a 6% decrease year over year, but up 25% when excluding Eastern Europe [23] - Cloud and Edge non-GAAP gross margins were 62.5%, down 350 basis points from the prior year [22] Market Data and Key Metrics Changes - Sales in India for the IP Optical segment increased 80% year over year, with strong performance in Southeast Asia as well [16][17] - North American sales more than doubled year over year, driven by rural broadband projects and critical infrastructure growth [18] - Service provider sales increased more than 10% year over year, with a significant increase in India [8] Company Strategy and Development Direction - The company is focusing on modernizing voice and data networks, with a strong emphasis on cloud technologies and AI deployments [5][6] - Ribbon expects to see continued growth in its Cloud and Edge business, projecting approximately 20% sales growth in Q2 year over year [27] - The company is investing in new product development, particularly in routing platforms to support TDM elimination use cases [31][32] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand from service providers and enterprises, with a backlog growth of 35% year over year [7] - The company anticipates a strong second quarter with sales projected to grow more than 10% year over year [36] - Management expressed optimism about the future despite uncertainties related to tariffs and trade barriers [35] Other Important Information - Cash from operations was a usage of $4 million in Q1, with a closing cash balance of $74 million [25] - The company expects significant improvement in gross margins in Q2 due to a better product mix [34] Q&A Session Summary Question: Was there any pull-in due to tariff uncertainty? - Management indicated no strong evidence of pull-ins related to tariffs, with bookings consistent across the quarter [39] Question: What are customers saying about potential tariffs? - Management noted that customers have not indicated changes in their strategies or plans due to tariffs, and many service providers do not expect significant impacts [41] Question: Update on AT&T's Neptune ramp? - Management stated they remain a strategic partner to AT&T and expect growth in IP optical in North America [44] Question: How does the company benefit from copper retirement in the U.S.? - Management explained that they provide solutions for both complete copper elimination and maintaining services while transitioning to fiber or IP [48] Question: Growth expectations for Cloud and Edge products? - Management expects Cloud and Edge growth to be approximately 20% year over year in Q2, with IP Optical projected to grow 5% to 10% [51][52] Question: Update on Verizon's revenue expectations? - Management confirmed expectations for Verizon to return to Q4 levels and noted the scaling of service revenue [58][60] Question: Observations on optical transport growth? - Management highlighted strong growth in India and Southeast Asia, with good opportunities stemming from competitive dynamics in the region [67]

[Financial Performance and Outlook](index=1&type=section&id=Financial%20Performance%20and%20Outlook) This section provides an overview of Ribbon Communications' financial results, key business achievements, and future projections [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Ribbon Communications reported Q1 2025 revenue of $181 million, a slight increase from $180 million in Q1 2024, experiencing a GAAP Net Loss of ($26) million and Non-GAAP Adjusted EBITDA of $6 million, with performance impacted by deal timing but supported by strong Service Provider sales and backlog growth Q1 2025 Financial Highlights (vs. Q1 2024) | In millions, except per share amounts | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **GAAP Revenue** | $181 | $180 | | **GAAP Net income (loss)** | $(26) | $(30) | | **Non-GAAP Net income (loss)** | $(5) | $(1) | | **Non-GAAP Adjusted EBITDA** | $6 | $12 | | **GAAP diluted earnings (loss) per share** | $(0.15) | $(0.18) | | **Non-GAAP diluted earnings (loss) per share** | $(0.03) | $(0.01) | - The company projects strong first-half 2025 performance with **5-8% year-over-year revenue growth**, driven by a more than **10% increase in sales to Service Providers**[2](index=2&type=chunk) - Q1 sales were lower than expected due to the delayed timing of two key Federal and Enterprise deals, which are now being fulfilled in Q2[2](index=2&type=chunk) - Bookings were solid, and the company's backlog grew by **35%** compared to the same period last year, enhancing visibility and confidence for the full year[2](index=2&type=chunk) [Business Highlights](index=2&type=section&id=Business%20Highlights) During the quarter, Ribbon secured several key projects and received industry recognition, including a network upgrade for Estonia's EENet, expansion of its high-density router portfolio, and selection by Moratelindo for a 20T capacity link, while also supporting Converge's use of Starlink and showcasing AI-enabled optical innovations - Delivered an open, programmable network upgrade to the Estonian Education and Research Network (EENet)[8](index=8&type=chunk) - Expanded its portfolio of innovative, high-density routers[8](index=8&type=chunk) - Supported Converge's use of Starlink low latency satellite solutions with Ribbon's AI-enabled data transmission technology[8](index=8&type=chunk) - Showcased AI-enabled optical innovation at the OFC conference, with its NPT 2714 Router and Apollo ADM 400/800 receiving recognition[8](index=8&type=chunk) - Selected by Moratelindo for a **20T capacity**, automated management solution for the Jakarta-Singapore link[8](index=8&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) Ribbon projects second quarter 2025 revenue between $210 million and $220 million, with Non-GAAP gross margin expected to be 53% to 53.5%, and Adjusted EBITDA forecasted to be in the range of $28 million to $32 million, while full-year 2025 projections remain unchanged Q2 2025 Outlook | Metric | Projected Range | | :--- | :--- | | Revenue | $210M - $220M | | Non-GAAP Gross Margin | 53% - 53.5% | | Adjusted EBITDA | $28M - $32M | - Full Year 2025 projections remain unchanged[5](index=5&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents the company's consolidated statements of operations, balance sheets, and cash flows, detailing its financial position and performance [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, total revenue was $181.3 million, slightly up from $179.7 million in the prior-year quarter, with gross margin decreasing to 45.4% from 51.2% YoY, resulting in a loss from operations of ($19.6) million and a net loss of ($26.2) million Key Operational Data (in thousands) | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | **Total Revenue** | $181,279 | $251,359 | $179,664 | | **Gross Profit** | $82,370 | $140,073 | $91,955 | | **Gross Margin** | 45.4% | 55.7% | 51.2% | | **Income (loss) from operations** | $(19,610) | $33,220 | $(13,486) | | **Net income (loss)** | $(26,227) | $6,364 | $(30,361) | | **Diluted EPS** | $(0.15) | $0.04 | $(0.18) | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, Ribbon had total assets of $1.137 billion, a slight decrease from $1.163 billion at the end of 2024, with cash and cash equivalents at $71.2 million, total liabilities of $755.7 million, and total stockholders' equity of $381.8 million Key Balance Sheet Data (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $71,243 | $87,770 | | **Total current assets** | $425,063 | $463,662 | | **Total assets** | $1,137,477 | $1,162,554 | | **Total current liabilities** | $305,180 | $328,873 | | **Total liabilities** | $755,662 | $757,933 | | **Total stockholders' equity** | $381,815 | $404,621 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2025, the company experienced a net cash outflow from operating activities of ($3.5) million, a significant shift from a $13.1 million inflow in Q1 2024, with increased net cash used in investing activities and financing activities, resulting in a total decrease in cash of ($16.7) million Cash Flow Summary (in thousands) | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(3,535) | $13,100 | | Net cash used in investing activities | $(12,149) | $(2,663) | | Net cash used in financing activities | $(1,812) | $(5,843) | | **Net (decrease) increase in cash** | **$(16,665)** | **$4,301** | [Non-GAAP Measures and Reconciliations](index=4&type=section&id=Non-GAAP%20Measures%20and%20Reconciliations) This section explains the company's use of non-GAAP financial measures and provides detailed reconciliations to their GAAP equivalents [Discussion of Non-GAAP Financial Measures](index=4&type=section&id=Discussion%20of%20Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP financial measures to assess its core operational performance, plan future periods, and for compensation programs, believing these measures provide better insight by excluding certain recurring and non-recurring items, serving as supplemental rather than substitute figures for GAAP measures - Management uses non-GAAP measures to analyze core business performance, make operating decisions, and plan for the future, as the company's annual financial plan is prepared on a non-GAAP basis[14](index=14&type=chunk) - Key adjustments to GAAP figures include excluding expenses for: - Stock-based compensation[16](index=16&type=chunk) - Amortization of acquired technology and intangible assets[17](index=17&type=chunk) - Certain litigation costs[18](index=18&type=chunk) - Restructuring and related expenses[18](index=18&type=chunk) - Adjusted EBITDA is a key non-GAAP metric calculated by excluding depreciation, stock-based compensation, amortization of acquired intangible assets, certain litigation costs, and restructuring expenses from income (loss) from operations[24](index=24&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20and%20GAAP%20Financial%20Measures) In Q1 2025, Ribbon's Non-GAAP Gross Margin was 48.6% compared to a GAAP Gross Margin of 45.4%, with the GAAP Net Loss of ($26.2) million adjusted to a Non-GAAP Net Loss of ($4.6) million, and the GAAP Operating Loss of ($19.6) million reconciled to a Non-GAAP Adjusted EBITDA of $5.8 million Q1 2025 Reconciliation of GAAP Net Loss to Non-GAAP Net Loss (in thousands) | Description | Amount | | :--- | :--- | | **GAAP Net income (loss)** | **$(26,227)** | | Stock-based compensation | $4,298 | | Amortization of intangible assets | $11,543 | | Litigation costs | $800 | | Restructuring and related | $5,341 | | Preferred stock and warrant liability mark-to-market adjustment | $(1,735) | | Tax effect of non-GAAP adjustments | $1,401 | | **Non-GAAP Net income (loss)** | **$(4,579)** | Q1 2025 Reconciliation of GAAP Operating Loss to Non-GAAP Adjusted EBITDA (in thousands) | Description | Amount | | :--- | :--- | | **GAAP Income (loss) from operations** | **$(19,610)** | | Depreciation | $3,469 | | Stock-based compensation | $4,298 | | Amortization of intangible assets | $11,543 | | Litigation costs | $800 | | Restructuring and related | $5,341 | | **Non-GAAP Adjusted EBITDA** | **$5,841** | Reconciliation of Outlook for Q2 2025 (Midpoint, $ millions) | Metric | GAAP Outlook | Adjustments | Non-GAAP Outlook | | :--- | :--- | :--- | :--- | | **Gross Margin** | 50.65% | +2.60% | 53.25% | | **Adjusted EBITDA** | $9.3 | +$20.7 | $30.0 |