Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $215 million, a 2% increase year over year, within the guidance range [24] - Year-to-date revenue increased by 6%, and EBITDA rose by 5% compared to the same period in 2024 [9][24] - Non-GAAP gross margin for Q3 was 52.6%, lower than expected due to reduced software sales to U.S. government customers [24] - Non-GAAP net income for the quarter was $7 million, down from $8 million in the prior year, resulting in a diluted EPS of $0.04 [27] Business Line Data and Key Metrics Changes - IP Optical Networks revenue for Q3 was $91 million, an 11% increase year over year, driven by strong sales in India and EMEA [28] - Cloud and Edge segment revenue was $124 million, a decrease of 3% year over year, primarily due to lower U.S. Federal sales [30] - Sales to service providers increased by 5% year over year, with Verizon's revenue growing approximately 20% [20][44] Market Data and Key Metrics Changes - Sales in Europe, Middle East, and Africa grew by 26% year over year, while Asia Pacific sales increased by 13%, led by India [13] - North American sales declined approximately 10% year over year, impacted by lower U.S. Federal sales due to the government shutdown [14][22] - IP Optical sales in North America were lower, but Europe and the Middle East saw significant growth, particularly in critical infrastructure projects [16][17] Company Strategy and Development Direction - The company is focusing on the convergence of AI and voice technologies, with the launch of the Acumen AIOps automation platform [5][6] - There is a strategic emphasis on modernizing voice and data networks for service providers and enterprises, with ongoing investments in cloud and edge solutions [13][20] - The company aims to expand its presence in the U.S. Federal market, despite current delays due to the government shutdown [12][90] Management's Comments on Operating Environment and Future Outlook - Management noted that the U.S. government shutdown has delayed procurement processes but emphasized that no business has been lost [10][12] - The outlook for Q4 is expected to be strong, with continued momentum in enterprise and service provider segments, despite the impact of the government shutdown [33][35] - The company anticipates revenue in Q4 to range from $230 million to $250 million, with adjusted EBITDA between $42 million and $48 million [37] Other Important Information - The company repurchased approximately 900,000 shares for a total cost of $3.5 million during the quarter [31] - The cash balance at the end of the quarter was $77 million, up $14 million from the previous quarter [31] Q&A Session Summary Question: Is AI a driver for future growth in Cloud and Edge? - Management views AI as a new category that will drive growth, particularly through AIOps and the convergence of voice and AI technologies [40][42] Question: How did Verizon perform in Q3 and what is the outlook? - Verizon grew about 20% year over year in Q3, with expectations for continued strong performance in Q4 [43][44] Question: What was the impact of the government shutdown on Q3 and Q4? - The shutdown impacted Q3 results, with management estimating a potential $10 million to $15 million effect on revenue for Q4 [79][82] Question: What is the expected growth rate for government business in 2026? - Management anticipates solid growth in government business as new projects are initiated, but specific growth rates are uncertain due to the current budget situation [90] Question: What is the impact of foreign exchange and tariffs? - Foreign exchange headwinds were approximately $3 million year over year, primarily due to the shekel's performance [54][56]

Financial Performance - Ribbon Communications' Q3 2025 revenue reached $215 million, a 2% year-over-year increase[15] - The company's gross margin for Q3 2025 was 53%[15] - Adjusted EBITDA for Q3 2025 was $29 million, a 3% decrease year-over-year[15] - The adjusted EBITDA margin for Q3 2025 was 13%, down 80 basis points year-over-year[15] - For the year-to-date 2025, revenue was $617 million, a 6% increase year-over-year[15] - Year-to-date adjusted EBITDA was $67 million, a 5% increase year-over-year, with an 11% margin[15] Segment Performance - IP Optical Networks revenue was $91 million in Q3 2025, an 11% increase year-over-year[22] - Cloud & Edge revenue was $124 million in Q3 2025, a 3% decrease year-over-year[27] Outlook - The company projects revenue between $230 million and $250 million for Q4 2025[49] - The company projects revenue between $847 million and $867 million for the full year 2025[49]

Revenue Performance - Revenue for Q3 2025 was $215 million, a 2% increase from $210 million in Q3 2024[3] - Year-to-date revenue growth reached 6%, with IP Optical Networks sales up 11% year-over-year[2] - Total revenue for Q3 2025 was $215,371, a decrease of 2% from $220,583 in Q2 2025 and an increase of 2.4% from $210,238 in Q3 2024[26] - Total revenue for the nine months ended September 30, 2025, was $617,233, an increase of 6% from $582,522 in the same period of 2024[28] - The company expects revenue for the year ending December 31, 2025, to be approximately $857 million, with a range of +/- $10 million[43] Profitability Metrics - Non-GAAP Adjusted EBITDA for Q3 2025 was $29 million, slightly down from $30 million in Q3 2024[3] - GAAP Operating Income improved to $3 million, compared to a loss of $1 million in Q3 2024[3] - GAAP Gross Margin for Q3 2025 was 50.1%, down from 52.1% in Q3 2024[3] - Gross profit for Q3 2025 was $107,966, with a gross margin of 50.1%, compared to 49.6% in Q2 2025 and 52.1% in Q3 2024[26] - Non-GAAP gross margin for the same period was 52.6%, up from 52.1% in the previous quarter and down from 55.3% year-over-year[37] - The GAAP outlook for gross margin for the year ending December 31, 2025, is projected at 50.0%[43] Cash Flow and Liquidity - Cash flow from operations was $26 million, with a closing cash balance of $77 million, up $14 million from Q2 2025[2] - Cash and cash equivalents at the end of Q3 2025 were $74,799, down from $87,770 at the end of Q4 2024[30] - The company reported a net cash provided by operating activities of $22,159 for the nine months ended September 30, 2025, compared to a net cash used of $11,527 in the same period of 2024[32] Operating Expenses - Operating expenses were lower year-over-year despite foreign exchange headwinds of approximately $3 million[2] - Operating expenses for the nine months ended September 30, 2025, totaled $312,264, a decrease from $315,787 in the same period of 2024[28] - Total stock-based compensation for the nine months ended September 30, 2025, was $14.62 million, compared to $12.06 million for the same period in 2024[39] Net Income and Loss - Net loss for Q3 2025 was $12,109, compared to a net loss of $11,093 in Q2 2025 and $13,422 in Q3 2024[26] - GAAP net loss for the three months ended September 30, 2025, was $12.1 million, compared to a loss of $11.1 million in the previous quarter and a loss of $13.4 million in the same quarter last year[37] - Non-GAAP net income for the three months ended September 30, 2025, was $6.95 million, down from $9.61 million in the previous quarter and $8.49 million year-over-year[37] Future Projections - The company projects Q4 2025 revenue between $230 million and $250 million, with Non-GAAP gross margin expected to be 55% to 56%[6] - Non-GAAP adjusted EBITDA for the three months ending December 31, 2025, is expected to be $45.0 million, with a range of +/- $3 million[43] - Non-GAAP adjusted EBITDA for the nine months ended September 30, 2025, was $66.56 million, compared to $63.32 million for the same period in 2024[39] Innovation and Customer Base - The Acumen AIOps platform was launched and deployed with a leading U.S. service provider, enhancing the company's innovation pipeline[2] - The company continues to expand its customer base, particularly in Network Transformation programs and IP Optical Networks segment[2]

Core Insights - Ribbon Communications reported a year-over-year revenue growth of 2% for Q3 2025, with a year-to-date increase of 6% [2] - The IP Optical Networks segment saw a significant sales increase of 11% year-over-year, particularly in the EMEA and India regions [2] - The introduction of the Acumen AIOps platform marks a strategic innovation aimed at enhancing service providers' operational efficiency [2] Financial Highlights - Q3 2025 GAAP revenue was $215 million, compared to $210 million in Q3 2024 [6] - GAAP net loss for Q3 2025 was $12 million, an improvement from a loss of $13 million in Q3 2024 [6] - Non-GAAP adjusted EBITDA for Q3 2025 was $29 million, slightly down from $30 million in Q3 2024 [6] Business Outlook - For Q4 2025, the company projects revenue between $230 million and $250 million, with a non-GAAP gross margin expected to be in the range of 55% to 56% [3] - Adjusted EBITDA for Q4 2025 is projected to be between $42 million and $48 million [3] Operational Performance - Cash flow from operations for Q3 2025 was $26 million, with a closing cash balance of $77 million, up $14 million from Q2 2025 [2] - The company maintained a net debt leverage ratio of 2.2 times at the end of Q3 2025 [2] Segment Performance - Cloud & Edge sales increased by over 8% year-to-date, with continued growth in sales to Global Service Providers [2] - The company experienced minor impacts from the U.S. Federal Government shutdown, but ongoing voice modernization projects are progressing [2]

Core Points - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that ad-blockers may interfere with website functionality, suggesting users disable them for better access [1] Summary by Categories Technical Requirements - Users are advised to enable Javascript and cookies in their browsers to ensure proper website functionality [1] - The presence of ad-blockers can lead to access restrictions, and users are encouraged to disable them [1]

Core Points - Ribbon Communications Inc. will report its financial results for Q3 2025 on October 22, 2025, after market close [1] - A conference call will be held at 4:30 p.m. ET on the same day to discuss the results [1][2] Company Overview - Ribbon Communications is a leader in real-time communications technology and IP optical networking solutions, serving service providers, enterprises, and critical infrastructure sectors globally [3] - The company focuses on modernizing networks to enhance competitive positioning and business outcomes, utilizing cloud-native architectures, automation, analytics tools, and advanced security [3] - Ribbon maintains a commitment to Environmental, Social, and Governance (ESG) matters, providing an annual Sustainability Report to stakeholders [3]

Core Insights - Ribbon Communications Inc. has launched its AI-powered automation platform, Acumen, aimed at enhancing network management for telecom operators, enterprises, and critical infrastructure providers [1][2]. Group 1: Product Launch and Features - The Acumen platform is designed to integrate analytics and automation, improving network efficiency and reducing operating costs [2]. - Acumen provides end-to-end observability, AI-driven insights, and customizable automation throughout the network lifecycle, facilitating transformation and efficiency [4]. Group 2: Industry Reception and Expert Opinions - Luciano Ramos, Chief Technology and Product Officer at Optimum, praised Acumen's potential to enhance reliability and create more resilient networks [3]. - Roy Chua, Founder and Industry Analyst at AvidThink, noted that Ribbon is leveraging its expertise with global Tier 1 providers to deliver a differentiated product [3]. Group 3: Company Overview - Ribbon Communications Inc. is a global provider of real-time communications technology and IP optical networking solutions, serving service providers, enterprises, and critical infrastructure operators [4].

Core Insights - The article highlights 13 tech stocks under $10 that present investment opportunities due to their potential for revenue growth, profit improvement, and market share expansion [2][6] - The current technology market is experiencing a boom, particularly driven by artificial intelligence, although not all AI-related companies are deemed worthy of their high valuations [3][5] - The methodology for selecting these stocks involved screening U.S.-listed tech companies under $10, with additional filters for market capitalization and upside potential [8] Group 1: Market Context - Many tech stocks under $10 are involved in rapidly growing sectors such as software, semiconductors, cybersecurity, and digital services [2] - Tom Lee from Fundstrat noted that the technology market is in a significant boom, with AI creating substantial growth opportunities, but cautioned that some companies may not sustain their high valuations [3] - Comparisons were made to the late 1990s, indicating that current valuations are more reasonable than those seen during that period, with Nvidia trading at approximately 26 times forward earnings compared to Cisco's 60 times at a similar stage in 1998 [4] Group 2: Investment Methodology - The selection process for the best tech stocks under $10 involved screening for companies trading below this price, with a minimum market capitalization of $300 million and an estimated upside potential exceeding 20% [8] - The final list was based on the number of hedge funds holding positions in each stock, indicating a level of confidence from institutional investors [9] Group 3: Featured Companies - **Blaize Holdings Inc. (NASDAQ:BZAI)**: Stock price at $3.90 with a potential upside of 99%. The company announced a partnership with Technology Control Company to enhance AI infrastructure in Saudi Arabia [11][12] - **Ribbon Communications Inc. (NASDAQ:RBBN)**: Stock price at $3.80 with a potential upside of 60%. The company launched an AI-powered automation platform, Acumen, aimed at modernizing network management for telecom operators [15][16]

Core Insights - Ribbon Communications Inc. has launched Acumen, an AIOps and automation platform aimed at enhancing network operations for service providers and enterprises, facilitating their transition to autonomous networks [1][2][3] - The platform is designed to address operational challenges, reduce costs, and improve customer experience through AI-driven insights and customizable automation [2][3] Group 1: Product Features and Benefits - Acumen provides end-to-end observability and AI-driven insights, enabling network operators to enhance reliability and performance while reducing operational costs [2][3] - The platform includes a low-code/no-code workflow builder, allowing for the creation of custom applications tailored to the needs of telecom and critical infrastructure [3] - Acumen supports both Ribbon and third-party components, offering a unified view of network performance and enabling proactive, data-driven decision-making [3] Group 2: Industry Positioning and Strategy - Ribbon Communications positions itself as a leader in real-time communications technology and IP optical networking solutions, focusing on modernizing and securing networks for service providers and critical infrastructure operators [1][4] - The company emphasizes its commitment to Environmental, Social, and Governance (ESG) matters, providing an annual Sustainability Report to stakeholders [4]

Core Insights - Ribbon Communications Inc. has expanded its portfolio with the addition of the Ribbon Policy Engine Server, Ribbon Application Management Platform, and Ribbon Analytics to the U.S. Department of Defense's DISA Approved Products List, highlighting its commitment to secure communications infrastructure [1][2] - The JITC certification signifies high standards of quality, security, interoperability, and reliability, reinforcing Ribbon's dedication to meeting the stringent requirements of defense and critical infrastructure customers [2][3] - The newly certified platforms complement Ribbon's existing APL-listed solutions, enhancing its offerings in secure and reliable communications for the Department of Defense [4] Company Overview - Ribbon Communications specializes in secure cloud communications and IP optical networking solutions, focusing on modernizing networks for improved competitive positioning and business outcomes [6] - The company is actively involved in modernizing DISA's communications infrastructure through the Soft Switch Backbone initiative, which aims to enhance cybersecurity and reduce operational costs [5]