Ribbon munications (US:RBBN)2025-10-23 15:02Revenue Performance - Total revenue for Q3 2025 was $215.371 million, a slight increase from $210.238 million in Q3 2024, representing a growth of 1.1% year-over-year[12] - Product revenue for the three months ended September 30, 2025, was $109.979 million, compared to $112.151 million in 2024, indicating a decrease of about 1.0%[112] - Service revenue for the three months ended September 30, 2025, increased to $105.392 million from $98.087 million in Q3 2024, reflecting a growth of 7.3%[12] - Total revenue for the three months ended September 30, 2025, was $215.371 million, a slight decrease from $210.238 million in the same period of 2024, representing a year-over-year decline of approximately 1.1%[111] - Service revenue for the nine months ended September 30, 2025, was $310.206 million, an increase from $283.628 million in 2024, reflecting a growth of approximately 9.3%[112] - Sales to enterprise customers for the three months ended September 30, 2025, were $37.467 million, a decrease from $40.002 million in 2024, showing a decline of approximately 6.4%[112] - Sales to service provider customers for the nine months ended September 30, 2025, were $207.276 million, an increase from $182.982 million in 2024, indicating a growth of about 13.2%[112] Financial Performance - The net loss for Q3 2025 was $12.109 million, compared to a net loss of $13.422 million in Q3 2024, showing an improvement of 9.8%[12] - The company reported a basic loss per share of $0.07 for Q3 2025, an improvement from a loss of $0.08 per share in Q3 2024[12] - The company reported a net loss of $49,429,000 for the nine months ended September 30, 2025, an improvement from a net loss of $60,599,000 for the same period in 2024, representing an 18% reduction in losses[19] - The company reported a loss before income taxes of $9.0 million for the three months ended September 30, 2025, compared to a loss of $11.8 million in the same period of 2024[126] - The total adjusted gross profit for the three months ended September 30, 2025, was $113.2 million, slightly down from $116.3 million in the same period of 2024[126] Assets and Liabilities - Total current assets decreased to $418.427 million as of September 30, 2025, down from $463.662 million at the end of 2024, a decline of 9.7%[10] - Total liabilities decreased to $745.182 million as of September 30, 2025, compared to $757.933 million at the end of 2024, a reduction of 1.7%[10] - The company reported total stockholders' equity of $360,052,000 as of September 30, 2025, down from $404,621,000 at the beginning of the year[15] - The accumulated deficit increased to $(1,623,614,000) as of September 30, 2025, from $(1,611,505,000) on July 1, 2025[15] - The term debt balance as of September 30, 2025, was $344.3 million, with a fair value of approximately $348.6 million[47] Cash Flow and Investments - Cash flows from operating activities provided $22,159,000 in the nine months ended September 30, 2025, compared to cash used of $11,527,000 in the same period of 2024, indicating a significant turnaround[19] - The company reported net cash used in investing activities of $23,368,000 for the nine months ended September 30, 2025, compared to $14,890,000 in 2024, indicating a 57% increase in investment outflows[19] - Ribbon Communications' cash and cash equivalents at the end of the period were $76,767,000, up from $40,093,000 at the end of September 2024, marking a 91% increase year-over-year[19] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $134.158 million, slightly down from $134.897 million in the same period of 2024[12] - Research and development expenses for the three months ended September 30, 2025, were $45.9 million, consistent with $45.6 million in the same period of 2024[126] Stock and Shareholder Information - Ribbon Communications Inc. repurchased 911,092 shares of common stock during the three months ended September 30, 2025, resulting in a reduction of additional paid-in capital by $3,478,000[15] - The total number of common shares outstanding decreased from 177,156,341 on July 1, 2025, to 176,476,492 on September 30, 2025[15] - The company has authorized 390,000,000 shares as of September 30, 2025, an increase from 240,000,000 shares authorized at December 31, 2024[10] Restructuring and Related Expenses - The company recorded restructuring expenses of $10.2 million for the nine months ended September 30, 2025, compared to $8.8 million for the same period in 2024[52] - Total restructuring and related expenses for the nine months ended September 30, 2025, included $4.996 million in severance costs and $5.197 million in variable and other facilities-related costs[56] - The restructuring expenses include costs for severance, estimated future variable lease costs, and accelerated rent amortization[52] Other Financial Metrics - Interest paid increased to $28,797,000 for the nine months ended September 30, 2025, compared to $22,851,000 in 2024, representing a 26% increase[20] - The company recorded income tax provisions of $4.6 million for the nine months ended September 30, 2025, down from $6.5 million in the same period of 2024[150] - The company recognized approximately $96 million of revenue in the nine months ended September 30, 2025, that was recorded as deferred revenue at December 31, 2024[115]