Ribbon Communications Inc. Reports First Quarter 2025 Financial Results
Ribbon Communications reported Q1 2025 financial results, with revenue holding steady at $181 million compared to $180 million in Q1 2024. Despite timing delays in Federal and Enterprise deals, the company projects strong first-half 2025 performance with 5-8% year-over-year revenue growth.
Key highlights:
- Backlog increased 35% due to growing Service Provider demand
- Service Provider sales grew over 10% year-over-year
- GAAP Gross Margin decreased to 45.4% from 51.2%
- Non-GAAP Adjusted EBITDA was $6 million, down from $12 million
For Q2 2025, Ribbon forecasts revenue between $210-220 million and Adjusted EBITDA of $28-32 million. Notable business achievements include network upgrades for Estonia's EENet and Moratelindo selecting Ribbon for Jakarta-Singapore link with 20T capacity. The company maintains its full-year 2025 projections unchanged.
Ribbon Communications ha riportato i risultati finanziari del primo trimestre 2025, con un fatturato stabile a 181 milioni di dollari rispetto ai 180 milioni del primo trimestre 2024. Nonostante ritardi temporali nelle trattative con enti federali e aziende, la società prevede una solida performance nella prima metà del 2025 con una crescita del fatturato anno su anno tra il 5% e l'8%.
Punti salienti:
- Il backlog è aumentato del 35% grazie alla crescente domanda da parte dei fornitori di servizi
- Le vendite ai fornitori di servizi sono cresciute di oltre il 10% anno su anno
- Il margine lordo GAAP è diminuito al 45,4% dal 51,2%
- L'EBITDA rettificato non GAAP è stato di 6 milioni di dollari, in calo rispetto ai 12 milioni precedenti
Per il secondo trimestre 2025, Ribbon prevede un fatturato compreso tra 210 e 220 milioni di dollari e un EBITDA rettificato tra 28 e 32 milioni. Tra i risultati aziendali più rilevanti figurano gli aggiornamenti di rete per EENet in Estonia e la scelta di Ribbon da parte di Moratelindo per il collegamento Jakarta-Singapore con capacità di 20T. L'azienda mantiene invariate le previsioni per l'intero anno 2025.
Ribbon Communications reportó los resultados financieros del primer trimestre de 2025, con ingresos estables en 181 millones de dólares en comparación con 180 millones en el primer trimestre de 2024. A pesar de retrasos en la ejecución de contratos federales y empresariales, la compañía proyecta un sólido desempeño en la primera mitad de 2025 con un crecimiento de ingresos interanual del 5-8%.
Puntos clave:
- El backlog aumentó un 35% debido a la creciente demanda de proveedores de servicios
- Las ventas a proveedores de servicios crecieron más del 10% interanual
- El margen bruto GAAP disminuyó al 45,4% desde el 51,2%
- El EBITDA ajustado no GAAP fue de 6 millones, frente a 12 millones anteriores
Para el segundo trimestre de 2025, Ribbon pronostica ingresos entre 210 y 220 millones y un EBITDA ajustado de 28 a 32 millones. Logros comerciales destacados incluyen actualizaciones de red para EENet en Estonia y la selección de Ribbon por parte de Moratelindo para el enlace Jakarta-Singapur con capacidad de 20T. La compañía mantiene sus proyecciones para todo el año 2025 sin cambios.
Ribbon Communications는 2025년 1분기 재무 실적을 보고했으며, 매출은 2024년 1분기 1억 8천만 달러에서 1억 8천 1백만 달러로 유지되었습니다. 연방 및 기업 계약의 일정 지연에도 불구하고, 회사는 2025년 상반기에 전년 대비 5-8% 매출 성장으로 강력한 실적을 예상하고 있습니다.
주요 내용:
- 서비스 제공업체 수요 증가로 인해 수주 잔고가 35% 증가
- 서비스 제공업체 매출이 전년 대비 10% 이상 증가
- GAAP 총이익률은 51.2%에서 45.4%로 감소
- 비 GAAP 조정 EBITDA는 1,200만 달러에서 600만 달러로 감소
2025년 2분기에는 매출 2억 1천만~2억 2천만 달러, 조정 EBITDA 2,800만~3,200만 달러를 예상합니다. 주요 사업 성과로는 에스토니아 EENet 네트워크 업그레이드와 Moratelindo가 20T 용량의 자카르타-싱가포르 링크에 Ribbon을 선정한 점이 포함됩니다. 회사는 2025년 전체 연간 전망을 변경하지 않았습니다.
Ribbon Communications a publié ses résultats financiers du premier trimestre 2025, avec un chiffre d'affaires stable à 181 millions de dollars contre 180 millions au premier trimestre 2024. Malgré des retards dans la conclusion de contrats fédéraux et d'entreprise, la société prévoit une solide performance pour le premier semestre 2025, avec une croissance du chiffre d'affaires annuelle de 5 à 8 %.
Points clés :
- Le carnet de commandes a augmenté de 35 % grâce à la demande croissante des fournisseurs de services
- Les ventes aux fournisseurs de services ont progressé de plus de 10 % en glissement annuel
- La marge brute selon les normes GAAP est passée de 51,2 % à 45,4 %
- L'EBITDA ajusté non-GAAP s'est élevé à 6 millions de dollars, contre 12 millions précédemment
Pour le deuxième trimestre 2025, Ribbon prévoit un chiffre d'affaires compris entre 210 et 220 millions de dollars et un EBITDA ajusté entre 28 et 32 millions. Parmi les réalisations commerciales notables figurent les mises à niveau du réseau pour EENet en Estonie et la sélection de Ribbon par Moratelindo pour la liaison Jakarta-Singapour avec une capacité de 20T. La société maintient ses prévisions pour l'ensemble de l'année 2025 inchangées.
Ribbon Communications meldete die Finanzergebnisse für das erste Quartal 2025, wobei der Umsatz mit 181 Millionen US-Dollar im Vergleich zu 180 Millionen US-Dollar im ersten Quartal 2024 stabil blieb. Trotz zeitlicher Verzögerungen bei Bundes- und Unternehmenskunden erwartet das Unternehmen eine starke Leistung in der ersten Hälfte 2025 mit einem Umsatzwachstum von 5-8 % im Jahresvergleich.
Wichtige Highlights:
- Der Auftragsbestand stieg um 35 % aufgrund der steigenden Nachfrage von Dienstanbietern
- Der Umsatz bei Dienstanbietern wuchs im Jahresvergleich um über 10 %
- Die GAAP-Bruttomarge sank von 51,2 % auf 45,4 %
- Das Non-GAAP bereinigte EBITDA lag bei 6 Millionen US-Dollar, gegenüber 12 Millionen US-Dollar zuvor
Für das zweite Quartal 2025 prognostiziert Ribbon einen Umsatz zwischen 210 und 220 Millionen US-Dollar sowie ein bereinigtes EBITDA von 28 bis 32 Millionen US-Dollar. Bedeutende Geschäftserfolge umfassen Netzwerkausbauten für Estlands EENet und die Wahl von Ribbon durch Moratelindo für die Jakarta-Singapur-Verbindung mit 20T Kapazität. Das Unternehmen hält seine Prognosen für das Gesamtjahr 2025 unverändert.
- Backlog increased 35% year-over-year
- Service Provider sales grew >10% year-over-year
- Projecting 5-8% YoY revenue growth for 1H25
- Q2 2025 revenue guidance of $210-220M shows sequential growth
- Won major contracts including Moratelindo and EENet
- Q1 revenue flat at $181M vs $180M in Q1 2024
- GAAP Operating Loss widened to -$20M from -$13M YoY
- Non-GAAP Adjusted EBITDA declined to $6M from $12M YoY
- GAAP Gross Margin dropped to 45.4% from 51.2% YoY
- Non-GAAP Net loss increased to -$5M from -$1M YoY
Insights
Ribbon's Q1 shows margin pressure with flat revenue, but strong backlog and Q2 guidance suggest timing issues rather than fundamental business deterioration.
Ribbon Communications' Q1 2025 results reveal concerning
However, several indicators suggest this performance may represent timing issues rather than fundamental business deterioration. The 35% year-over-year backlog increase provides tangible evidence supporting management's growth narrative. Service Provider segment showed encouraging
Management's specific Q2 guidance projects substantial sequential improvement with revenue of
The company maintains its full-year 2025 projections and expects
The operational metrics behind Ribbon's financials reveal important industry dynamics at play. Their service provider segment growth exceeding 10% demonstrates telecommunications companies are actively investing in network modernization projects despite broader economic uncertainties. This aligns with industry-wide priorities as carriers prepare networks for increasing data demands and next-generation services.
The significant 35% backlog increase is particularly telling in the telecommunications equipment sector, where sales cycles are typically lengthy and visibility into future quarters carries substantial credibility. This metric suggests Ribbon is securing commitments in competitive deal environments, though the revenue recognition timing created short-term financial distortion.
Ribbon's customer wins with entities like EENet, Converge (supporting Starlink solutions), and Moratelindo for the Jakarta-Singapore link demonstrate traction across diverse market segments. The Moratelindo 20T capacity project is especially notable, representing the high-capacity infrastructure investments happening in emerging markets.
Recognition from Lightwave for their NPT 2714 Router and Apollo ADM 400/800 optical transport solutions indicates Ribbon's product portfolio remains competitive in a rapidly evolving market. Their emphasis on AI-enabled optical innovations aligns with industry direction, though we'll need to monitor whether these capabilities translate to sustainable margin improvement as they suggest product mix will normalize gross margins in future quarters.
Projecting Strong 1H25 with 5
Backlog Increased
Federal and Enterprise Deal Timing Affected 1Q25 Results but Delivering in 2Q
First Quarter 2025 Highlights
Financial Highlights¹:
- Revenue was
$181 million $180 million - GAAP Gross Margin was
45.4% , compared to51.2% for the first quarter of 2024 - Non-GAAP Gross Margin was
48.6% , compared to55.1% for the first quarter of 2024 - GAAP Operating Loss was
( , compared to$20) million ( for the first quarter of 2024$13) million - Non-GAAP Adjusted EBITDA was
$6 million $12 million
"We continue to expect a strong first half for 2025 with sales projected to increase 5
John Townsend, Chief Financial Officer, added, "We expect gross margins to return to normal levels as product and regional mix improve in the second quarter and the rest of the year. I am particularly pleased with the disciplined approach to cost and cash management that we demonstrated in the first quarter."
Three months ended | |||||
March 31, | |||||
In millions, except per share amounts | 2025 | 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) | |||
Weighted average shares outstanding basic | 176 | 172 | |||
Weighted average shares outstanding diluted | 180 | 175 | |||
1 Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about non-GAAP measures in the section entitled "Discussion of Non-GAAP Financial Measures" in the attached schedules. |
Business Highlights:
- Ribbon Delivers Open, Programmable Network Upgrade to EENet of HTM
- Estonian Education and Research Network of the Ministry of Education and Research
- Ribbon Expands Portfolio of Innovative, Cost-Efficient, High-Density Routers
- Converge Leverages Ribbon's AI-Enabled Data Transmission Technology, supports Starlink Low Latency Satellite Solutions
- Ribbon Showcases AI-Enabled Optical Innovation at OFC
- NPT 2714 Router and Apollo ADM 400/800 Optical Transport recognized by Lightwave
- Moratelindo Selects Ribbon for 20T capacity, Automated Management for Jakarta-Singapore Link
Business Outlook2
For the second quarter of 2025, the Company projects revenue of
Full Year 2025 projections remain unchanged. The Company's outlook is based on current indications for its business, which are subject to change.
2 GAAP earnings guidance is not provided. Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about the non-GAAP measures in the section entitled "Discussion of Non-GAAP Financial Measures" in the attached schedules. |
Upcoming Conference Schedule
- May 13, 2025: 20th Annual Needham Technology, Media, & Consumer 1x1 Conference
- May 21-22, 2025: B. Riley Securities 25th Annual Institutional Investor Conference
Conference Call and Webcast Information
Ribbon Communications will host a conference call to discuss the Company's financial results at 4:30 p.m. ET on Tuesday, April 29, 2025.
Dial-in Information:
US/
International: 201-389-0925
Instant Telephone Access: Call me™
A live (listen-only) webcast and replay will be available on the Company's Investor Relations website at investors.ribboncommunications.com.
Investor Contact
+1 (978) 614-8050
ir@rbbn.com
Media Contact
Catherine Berthier
+1 (646) 741-1974
cberthier@rbbn.com
About Ribbon
Ribbon Communications (Nasdaq: RBBN) delivers communications software, IP and optical networking solutions to service providers, enterprises and critical infrastructure sectors globally. We engage deeply with our customers, helping them modernize their networks for improved competitive positioning and business outcomes in today's smart, always-on and data-hungry world. Our innovative, end-to-end solutions portfolio delivers unparalleled scale, performance, and agility, including core to edge software-centric solutions, cloud-native offers, leading-edge security and analytics tools, along with IP and optical networking solutions for 5G and broadband internet. We maintain a keen focus on our commitments to Environmental, Social and Governance (ESG) matters, offering an annual Sustainability Report to our stakeholders. To learn more about Ribbon visit rbbn.com.
Important Information Regarding Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of the
Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are unknown and/or difficult to predict and that may cause the Company's actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, unpredictable fluctuations in quarterly revenue and operating results; the impact of restructuring and cost-containment activities; increases in tariffs, trade restrictions or taxes on the Company's products; supply chain disruptions resulting from component availability and/or geopolitical instabilities and disputes (including those related to the wars in
These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect the Company's business and results from operations. Additional information regarding these and other factors can be found in the Company's reports filed with the Securities and Exchange Commission, including, without limitation, its Form 10-K for the year ended December 31, 2024. Any forward-looking statement made by the Company in this release speaks only as of the date on which this release was first issued. The Company undertakes no obligation to update any forward-looking statement publicly or otherwise, whether as a result of new information, future developments or otherwise, except as required by law.
Discussion of Non-GAAP Financial Measures
The Company's management uses several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of its business, making operating decisions, planning and forecasting future periods, and determining payments under compensation programs. The Company considers the use of non-GAAP financial measures helpful in assessing the core performance of its continuing operations and when planning and forecasting future periods. The Company's annual financial plan is prepared on a non-GAAP basis and is approved by its board of directors. In addition, budgeting and forecasting for revenue and expenses are conducted on a non-GAAP basis, and actual results on a non-GAAP basis are assessed against the annual financial plan. The Company defines continuing operations as the ongoing results of its business adjusted for certain expenses and credits, as described below. The Company believes that providing non-GAAP information to investors allows them to view the Company's financial results in the way its management views them and helps investors to better understand the Company's core financial and operating performance and evaluate the efficacy of the methodology and information used by its management to evaluate and measure such performance.
While the Company's management uses non-GAAP financial measures as tools to enhance its understanding of certain aspects of the Company's financial performance, management does not consider these measures to be a substitute for, or superior to, GAAP measures. In addition, the Company's presentations of these measures may not be comparable to similarly titled measures used by other companies. These non-GAAP financial measures should not be considered alternatives for, or in isolation from, the financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures. In particular, many of the adjustments to the Company's financial measures reflect the exclusion of items that are recurring and will be reflected in its financial results for the foreseeable future.
Stock-Based Compensation
The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. The Company believes that presenting non-GAAP operating results that exclude stock-based compensation provides investors with visibility and insight into its management's method of analysis and its core operating performance.
Amortization of Acquired Technology (including software licenses); Amortization of Acquired Intangible Assets
Amortization amounts are inconsistent in frequency and amount and are significantly impacted by the timing and size of acquisitions. Amortization of acquired technology is reported separately within Cost of revenue and Amortization of acquired intangible assets is reported separately within Operating expenses. These items are reported collectively as Amortization of acquired intangible assets in the accompanying reconciliations of non-GAAP and GAAP financial measures. The Company believes that excluding non-cash amortization of these intangible assets facilitates the comparison of its financial results to its historical operating results and to other companies in its industry as if the acquired intangible assets had been developed internally rather than acquired.
Litigation Costs
In connection with certain ongoing litigation where Ribbon is the defendant (as described in the Company's Commitments and Contingencies footnotes in its Form 10-Qs and Form 10-Ks filed with the SEC, the Company has incurred litigation costs beginning in 2023. These costs are included as a component of general and administrative expense. The Company believes that such costs are not part of its core business or ongoing operations, are unplanned, and generally are not within its control. Accordingly, the Company believes that excluding litigation costs related to these specific legal matters facilitates the comparison of the Company's financial results to its historical operating results and to other companies in its industry.
Restructuring and Related
The Company has recorded restructuring and related expense to streamline operations and reduce operating costs by closing and consolidating certain facilities and reducing its worldwide workforce. The Company believes that excluding restructuring and related expense facilitates the comparison of its financial results to its historical operating results and to other companies in its industry, as there are no future revenue streams or other benefits associated with these costs.
Preferred Stock and Warrant Liability Mark-to-Market Adjustment
The Company recorded adjustments to the fair value of its Series A Preferred Stock and Warrants to purchase shares of the Company's common stock in Other (expense) income, net. Both of these instruments were issued in March 2023 in connection with the Company's private placement and have been classified as liabilities and marked to market each reporting period until the Series A Preferred Stock was fully redeemed on June 25, 2024. The Warrant liability remains outstanding and will continue to be marked to market each reporting period. The Company excluded these gains and losses from the change in the fair value of these liabilities because it believes that such gains or losses were not part of its core business or ongoing operations.
Tax Indemnification Write-Off
In connection with the Company's acquisition of ECI Telecom Group Ltd. in 2020, a portion of the shares of our common stock that were issued as consideration were held in escrow for potential future tax liabilities. This
Tax Effect of Non-GAAP Adjustments
The Non-GAAP income tax provision is presented based on an estimated tax rate applied against forecasted annual non-GAAP income. The Non-GAAP income tax provision assumes no available net operating losses or valuation allowances for the
Adjusted EBITDA
The Company uses Adjusted EBITDA as a supplemental measure to review and assess its performance. The Company calculates Adjusted EBITDA by excluding from income (loss) from operations: depreciation; stock-based compensation; amortization of acquired intangible assets; certain litigation costs; and restructuring and related expense. In general, the Company excludes the expenses that it considers to be non-cash and/or not a part of its ongoing operations. The Company may exclude other items in the future that have those characteristics. Adjusted EBITDA is a non-GAAP financial measure that is used by the investing community for comparative and valuation purposes. The Company discloses this metric to support and facilitate dialogue with research analysts and investors. Other companies may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure.
RIBBON COMMUNICATIONS INC. | ||||||||
Consolidated Statements of Operations | ||||||||
(in thousands, except percentages and per share amounts) | ||||||||
(unaudited) | ||||||||
Three months ended | ||||||||
March 31, | December 31, | March 31, | ||||||
2025 | 2024 | 2024 | ||||||
Revenue: | ||||||||
Product | $ 81,991 | $ 148,335 | $ 87,610 | |||||
Service | 99,288 | 103,024 | 92,054 | |||||
Total revenue | 181,279 | 251,359 | 179,664 | |||||
Cost of revenue: | ||||||||
Product | 57,893 | 68,483 | 45,794 | |||||
Service | 35,628 | 37,316 | 35,364 | |||||
Amortization of acquired technology | 5,388 | 5,487 | 6,551 | |||||
Total cost of revenue | 98,909 | 111,286 | 87,709 | |||||
Gross profit | 82,370 | 140,073 | 91,955 | |||||
Gross margin | 45.4 % | 55.7 % | 51.2 % | |||||
Operating expenses: | ||||||||
Research and development | 43,568 | 45,044 | 45,763 | |||||
Sales and marketing | 31,788 | 37,070 | 34,716 | |||||
General and administrative | 15,128 | 17,060 | 15,191 | |||||
Amortization of acquired intangible assets | 6,155 | 6,298 | 6,706 | |||||
Restructuring and related | 5,341 | 1,381 | 3,065 | |||||
Total operating expenses | 101,980 | 106,853 | 105,441 | |||||
Income (loss) from operations | (19,610) | 33,220 | (13,486) | |||||
Interest expense, net | (10,500) | (12,003) | (5,987) | |||||
Other (expense) income, net | 3,129 | (13,159) | (7,513) | |||||
Income (loss) before income taxes | (26,981) | 8,058 | (26,986) | |||||
Income tax benefit (provision) | 754 | (1,694) | (3,375) | |||||
Net income (loss) | $ (26,227) | $ 6,364 | $ (30,361) | |||||
Earnings (loss) per share: | ||||||||
Basic | $ (0.15) | $ 0.04 | $ (0.18) | |||||
Diluted | $ (0.15) | $ 0.04 | $ (0.18) | |||||
Weighted average shares used to compute earnings (loss) per share: | ||||||||
Basic | 175,719 | 175,321 | 172,428 | |||||
Diluted | 175,719 | 178,703 | 172,428 | |||||
RIBBON COMMUNICATIONS INC. | ||||||
Consolidated Balance Sheets | ||||||
(in thousands) | ||||||
(unaudited) | ||||||
March 31, | December 31, | |||||
2025 | 2024 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ 71,243 | $ 87,770 | ||||
Restricted cash | 2,571 | 2,709 | ||||
Accounts receivable, net | 225,485 | 254,718 | ||||
Inventory | 79,631 | 79,179 | ||||
Other current assets | 46,133 | 39,286 | ||||
Total current assets | 425,063 | 463,662 | ||||
Property and equipment, net | 64,744 | 60,364 | ||||
Intangible assets, net | 175,994 | 187,537 | ||||
Goodwill | 300,892 | 300,892 | ||||
Deferred income taxes | 93,672 | 88,982 | ||||
Operating lease right-of-use assets | 48,748 | 34,544 | ||||
Other assets | 28,364 | 26,573 | ||||
$ 1,137,477 | $ 1,162,554 | |||||
Liabilities and Stockholders' Equity | ||||||
Current liabilities: | ||||||
Current portion of term debt | $ 7,438 | $ 6,125 | ||||
Accounts payable | 80,843 | 87,759 | ||||
Accrued expenses and other | 89,935 | 106,251 | ||||
Operating lease liabilities | 10,341 | 9,443 | ||||
Deferred revenue | 116,623 | 119,295 | ||||
Total current liabilities | 305,180 | 328,873 | ||||
Long-term debt, net of current | 329,176 | 330,726 | ||||
Warrant liability | 6,179 | 8,064 | ||||
Operating lease liabilities, net of current | 61,144 | 37,376 | ||||
Deferred revenue, net of current | 23,515 | 20,991 | ||||
Deferred income taxes | 5,941 | 5,941 | ||||
Other long-term liabilities | 24,527 | 25,962 | ||||
Total liabilities | 755,662 | 757,933 | ||||
Commitments and contingencies | ||||||
Stockholders' equity: | ||||||
Common stock | 18 | 18 | ||||
Additional paid-in capital | 1,974,219 | 1,970,708 | ||||
Accumulated deficit | (1,600,412) | (1,574,185) | ||||
Accumulated other comprehensive income | 7,990 | 8,080 | ||||
Total stockholders' equity | 381,815 | 404,621 | ||||
$ 1,137,477 | $ 1,162,554 | |||||
RIBBON COMMUNICATIONS INC. | |||||||
Consolidated Statements of Cash Flows | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
Three months ended | |||||||
March 31, | March 31, | ||||||
2025 | 2024 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ (26,227) | $ (30,361) | |||||
Adjustments to reconcile net loss to cash flows (used in) provided by operating activities: | |||||||
Depreciation and amortization of property and equipment | 3,469 | 3,394 | |||||
Amortization of intangible assets | 11,543 | 13,257 | |||||
Amortization of debt issuance costs and original issue discount | 701 | 716 | |||||
Amortization of accumulated other comprehensive gain related to interest rate swap | - | (1,756) | |||||
Stock-based compensation | 4,298 | 4,522 | |||||
Deferred income taxes | (4,628) | (2,620) | |||||
Change in fair value of warrant liability | (1,735) | 632 | |||||
Change in fair value of preferred stock liability | - | 1,512 | |||||
Dividends accrued on preferred stock liability | - | 1,355 | |||||
Foreign currency exchange (gains) losses | (1,328) | 1,144 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 29,459 | 55,384 | |||||
Inventory | (1,546) | (4,379) | |||||
Other operating assets | (5,578) | 7,923 | |||||
Accounts payable | (2,184) | (17,837) | |||||
Accrued expenses and other long-term liabilities | (9,631) | (11,800) | |||||
Deferred revenue | (148) | (7,986) | |||||
Net cash (used in) provided by operating activities | (3,535) | 13,100 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (12,149) | (2,513) | |||||
Purchases of software licenses | - | (150) | |||||
Net cash used in investing activities | (12,149) | (2,663) | |||||
Cash flows from financing activities: | |||||||
Borrowings under revolving line of credit | - | 15,000 | |||||
Principal payments on revolving line of credit | - | (15,000) | |||||
Principal payments of term debt | (875) | (5,014) | |||||
Proceeds from the exercise of stock options | 1 | 17 | |||||
Payment of tax obligations related to vested stock awards and units | (938) | (846) | |||||
Net cash used in financing activities | (1,812) | (5,843) | |||||
Effect of exchange rate changes on cash and cash equivalents | 831 | (293) | |||||
Net (decrease) increase in cash and cash equivalents | (16,665) | 4,301 | |||||
Cash, cash equivalents and restricted cash, beginning of year | 90,479 | 26,630 | |||||
Cash, cash equivalents and restricted cash, end of period | $ 73,814 | $ 30,931 | |||||
RIBBON COMMUNICATIONS INC. | ||||||||
Supplemental Information | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
The following tables provide the details of stock-based compensation included as components | ||||||||
Three months ended | ||||||||
March 31, | December 31, | March 31, | ||||||
2025 | 2024 | 2024 | ||||||
Stock-based compensation | ||||||||
Cost of revenue - product | $ 66 | $ 66 | $ 106 | |||||
Cost of revenue - service | 286 | 288 | 472 | |||||
Cost of revenue | 352 | 354 | 578 | |||||
Research and development | 725 | 737 | 1,068 | |||||
Sales and marketing | 1,173 | 1,178 | 1,157 | |||||
General and administrative | 2,048 | 1,756 | 1,719 | |||||
Operating expense | 3,946 | 3,671 | 3,944 | |||||
Total stock-based compensation | $ 4,298 | $ 4,025 | $ 4,522 | |||||
RIBBON COMMUNICATIONS INC. | |||||
Reconciliation of Non-GAAP and GAAP Financial Measures | |||||
(in thousands, except per share amounts) | |||||
(unaudited) | |||||
Three months ended | |||||
March 31, | December 31, | March 31, | |||
2025 | 2024 | 2024 | |||
GAAP Gross margin | 45.4 % | 55.7 % | 51.2 % | ||
Stock-based compensation | 0.2 % | 0.2 % | 0.3 % | ||
Amortization of acquired technology | 3.0 % | 2.2 % | 3.6 % | ||
Non-GAAP Gross margin | 48.6 % | 58.1 % | 55.1 % | ||
GAAP Net income (loss) | $ (26,227) | $ 6,364 | $ (30,361) | ||
Stock-based compensation | 4,298 | 4,025 | 4,522 | ||
Amortization of intangible assets | 11,543 | 11,785 | 13,257 | ||
Litigation costs | 800 | 1,583 | 951 | ||
Restructuring and related | 5,341 | 1,381 | 3,065 | ||
Preferred stock and warrant liability mark-to-market adjustment | (1,735) | 2,478 | 3,499 | ||
Tax indemnification write-off | - | 6,313 | - | ||
Tax effect of non-GAAP adjustments | 1,401 | (5,648) | 3,971 | ||
Non-GAAP Net income (loss) | $ (4,579) | $ 28,281 | $ (1,096) | ||
GAAP Diluted earnings (loss) per share | $ (0.15) | $ 0.04 | $ (0.18) | ||
Stock-based compensation | 0.02 | 0.02 | 0.03 | ||
Amortization of intangible assets | 0.07 | 0.06 | 0.07 | ||
Litigation costs | * | 0.01 | 0.01 | ||
Restructuring and related | 0.03 | 0.01 | 0.02 | ||
Preferred stock and warrant liability mark-to-market adjustment | (0.01) | 0.01 | 0.02 | ||
Tax indemnification write-off | - | 0.04 | - | ||
Tax effect of non-GAAP adjustments | 0.01 | (0.03) | 0.02 | ||
Non-GAAP Diluted earnings (loss) per share | $ (0.03) | $ 0.16 | $ (0.01) | ||
Weighted average shares used to compute diluted earnings (loss) per share | |||||
Shares used to compute GAAP diluted earnings (loss) per share | 175,719 | 175,321 | 172,428 | ||
Shares used to compute Non-GAAP diluted earnings (loss) per share | 175,719 | 178,703 | 172,428 | ||
GAAP Income (loss) from operations | $ (19,610) | $ 33,220 | $ (13,486) | ||
Depreciation | 3,469 | 3,408 | 3,394 | ||
Stock-based compensation | 4,298 | 4,025 | 4,522 | ||
Amortization of intangible assets | 11,543 | 11,785 | 13,257 | ||
Litigation costs | 800 | 1,583 | 951 | ||
Restructuring and related | 5,341 | 1,381 | 3,065 | ||
Non-GAAP Adjusted EBITDA | $ 5,841 | $ 55,402 | $ 11,703 | ||
* Less than | |||||
RIBBON COMMUNICATIONS INC. | |||||
Reconciliation of Non-GAAP and GAAP Financial Measures | |||||
(in thousands) | |||||
(unaudited) | |||||
Trailing Twelve Months | |||||
March 31, | December 31, | March 31, | |||
2025 | 2024 | 2024 | |||
GAAP Income (loss) from operations | $ 10,748 | $ 16,872 | $ (2,582) | ||
Depreciation | 13,614 | 13,539 | 13,989 | ||
Stock-based compensation | 15,862 | 16,086 | 20,480 | ||
Amortization of intangible assets | 49,148 | 50,862 | 55,495 | ||
Litigation costs | 11,047 | 11,198 | 2,081 | ||
Acquisition-, disposal- and integration-related | - | - | 2,834 | ||
Restructuring and related | 12,436 | 10,160 | 12,337 | ||
Non-GAAP Adjusted EBITDA | $ 112,855 | $ 118,717 | $ 104,634 | ||
RIBBON COMMUNICATIONS INC. | ||||||||||
Reconciliation of Non-GAAP and GAAP Financial Measures - Outlook | ||||||||||
(unaudited) | ||||||||||
Three months ending | Year ending | |||||||||
June 30, 2025 | December 31, 2025 | |||||||||
Midpoint (1) | Range | Midpoint (1) | Range | |||||||
Revenue ($ millions) | $ 215 | +/- | $ 880 | +/- | ||||||
Gross margin: | ||||||||||
GAAP outlook | 50.65 % | 52.0 % | ||||||||
Stock-based compensation | 0.20 % | 0.2 % | ||||||||
Amortization of acquired technology | 2.40 % | 2.3 % | ||||||||
Non-GAAP outlook | 53.25 % | +/- | 54.5 % | +/- | ||||||
Adjusted EBITDA ($ millions): | ||||||||||
GAAP income (loss) from operations | $ 9.3 | $ 49.7 | ||||||||
Depreciation | 4.0 | 15.8 | ||||||||
Stock-based compensation | 4.0 | 16.2 | ||||||||
Amortization of intangible assets | 11.3 | 44.1 | ||||||||
Litigation costs | 0.3 | 1.2 | ||||||||
Restructuring and related | 1.1 | 8.0 | ||||||||
Non-GAAP outlook | $ 30.0 | +/- | $ 135.0 | +/- | ||||||
(1) Q2 2025 and FY 2025 outlook represents the midpoint of the expected ranges | ||||||||||
View original content to download multimedia:https://www.prnewswire.com/news-releases/ribbon-communications-inc-reports-first-quarter-2025-financial-results-302441737.html
SOURCE Ribbon Communications Inc.
FAQ
What is Ribbon Communications (RBBN) revenue forecast for Q2 2025?
How much did Ribbon Communications (RBBN) backlog increase in Q1 2025?
What caused RBBN's lower Q1 2025 sales performance?
What is RBBN's revenue growth projection for first half 2025?
How did RBBN's service provider sales perform in Q1 2025?
What were RBBN's Q1 2025 earnings per share?
