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]