ADTRAN (US:ADTN)2025-11-04 12:00Financial Performance - Revenue for Q3 2025 was $279.4 million, representing a 23% increase year-over-year[8] - Total revenue for Q3 2025 reached $279.4 million, a 22.7% increase from $227.7 million in Q3 2024[16] - Gross profit for Q3 2025 was $107.1 million, compared to $83.0 million in Q3 2024, reflecting a gross margin of 38.3%[20] - Non-GAAP operating income for the three months ended September 30, 2025, was $15.1 million, compared to a loss of $8.7 million in the same period of 2024[43] - Operating loss for the three months ended September 30, 2025, was $2.8 million, a significant improvement from a loss of $26.1 million in the same period of 2024[43] - Net loss attributable to ADTRAN Holdings, Inc. for Q3 2025 was $10.3 million, an improvement from a net loss of $33.3 million in Q3 2024[16] - Net loss attributable to ADTRAN Holdings, Inc. common stockholders for Q3 2025 was $9,743,000, a decrease from $19,037,000 in Q2 2025[50] - Total net loss inclusive of non-controlling interest for Q3 2025 was $(7,757,000), compared to $(18,258,000) in Q2 2025[50] Margins and Expenses - GAAP gross margin was 38.3%, while non-GAAP gross margin was 42.1%[8] - Non-GAAP operating margin for Q3 2025 was 5.4%, compared to a GAAP operating margin of (1.0)%[8] - Non-GAAP gross profit for Q3 2025 was $117.5 million, with a non-GAAP gross margin of 42.1%[20] - Operating expenses for the three months ended September 30, 2025, were $109.9 million, slightly down from $109.1 million in the previous quarter[43] - Acquisition-related expenses, amortizations, and adjustments totaled $12.0 million for the three months ended September 30, 2025[43] - Stock-based compensation expense for the three months ended September 30, 2025, was $2.9 million, compared to $3.5 million in the same period of 2024[43] - Interest expense for the three months ended September 30, 2025, was $5.5 million, a decrease from $5.7 million in the same period of 2024[48] - Total other expense for the three months ended September 30, 2025, was $3.8 million, compared to $4.5 million in the same period of 2024[48] Cash Flow and Liquidity - Net cash provided by operating activities for Q3 2025 was $12.2 million[8] - Cash, cash equivalents, and restricted cash totaled $101.2 million as of September 30, 2025[8] - Cash flows from operating activities for Q3 2025 provided $87.5 million, down from $101.1 million in Q3 2024[18] - The company reported a net cash increase of $20.3 million for Q3 2025, compared to a $1.9 million increase in Q3 2024[18] - Free cash flow (Non-GAAP) for Q3 2025 was $(4,841,000), a significant decrease from $18,327,000 in Q2 2025[55] - Net cash provided by operating activities for Q3 2025 was $12,188,000, down from $32,160,000 in Q2 2025[55] Assets and Liabilities - Total assets increased to $1,208.9 million as of September 30, 2025, up from $1,171.4 million at the end of 2024[14] - Total liabilities rose to $665.2 million, compared to $621.5 million at the end of 2024[14] Future Guidance - The company expects Q4 2025 revenue to be between $275.0 million and $285.0 million, with a non-GAAP operating margin guidance of 3.5% to 7.5%[3] - The company is focused on driving sustainable growth and maximizing long-term stockholder value amid healthy demand and key technology transitions[2] Research and Development - Research and development expenses for the nine months ended September 30, 2025, totaled $152.4 million, down from $172.1 million in the same period of 2024[16] Goodwill and Impairments - Goodwill impairment charge was recorded in the nine months ended September 30, 2025, amounting to $297.4 million, primarily due to decreased projected revenue growth rates[42]