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Ribbon Communications Inc. Reports Fourth Quarter and Full Year 2025 Financial Results

Ribbon Communications Inc., trading on Nasdaq under the symbol RBBN, is a leading provider of real-time communications technology and IP optical networking solutions. On February 5, 2026, the company disclosed its financial performance for the fourth quarter and full year of 2025. Despite facing some tough conditions in the market, the company demonstrated resilience and aims to navigate its way through obstacles while targeting growth opportunities.

Fourth Quarter Financial Highlights

In the fourth quarter of 2025, Ribbon reported revenue of $227 million, down from $251 million in the same period of 2024. This slight decline illustrates a challenging environment exacerbated by delays in customer projects and budget timing issues. The company also recorded a GAAP operating income of $9 million, significantly lower than the $33 million from the same quarter a year prior. The Non-GAAP adjusted EBITDA stood at $40 million, down from $55 million last year, indicating challenges in profitability amid evolving market dynamics.

Overview of Full Year Performance

Over the full year of 2025, Ribbon Communications displayed relatively stable revenues of $845 million, compared to $834 million in 2024. However, the company faced a GAAP operating loss of $3 million, contrasting with the $17 million operating income reported the previous year. Non-GAAP adjusted EBITDA for the year also decreased to $107 million, down from $119 million. The gross margin, a critical indicator, fell to 49.8% from 52.7%, highlighting cost pressures within the business.

Growth Amidst Challenges

Bruce McClelland, President and CEO of Ribbon Communications, commented on the results, emphasizing that although project delays affected the fourth-quarter performance, the company achieved a new record in product and service bookings. Notably, Ribbon secured over $50 million tied to new voice modernization programs from various customers across different regions. The projects that faced delays are seen as part of a backlog rather than lost business, indicating ongoing demand connected to their improved services.

As Ribbon marches into 2026, the focus is on maintaining a conservative growth projection due to prevailing economic turbulence, particularly in the federal spending landscape. McClelland also hopes to leverage emerging trends such as artificial intelligence (AI) across enterprises and the growing demand for autonomous networking solutions through their Acumen AIOps platform. With expectations of increased government and defense sector spending, the company stands poised for expansion, particularly in markets where they have already established a strong presence.

Financial Improvements and Future Outlook

John Townsend, CFO, mentioned potential improvements in cost efficiency and working capital management to improve cash conversion rates. With a new tax benefit projected to positively affect cash conversion by approximately $15-$20 million in future tax payments starting from 2026, the financial outlook appears cautiously optimistic.

Given the projected revenue guidance for 2026 within the range of $840 million to $875 million, and an adjusted EBITDA between $105 million to $120 million, the organization aims at a revenue of $160 million to $170 million in the first quarter of 2026, establishing a strategic pathway to recovery and growth.

Business Developments

During 2025, Ribbon continued cementing its role within global communications through partnerships and technological advancements:

• - Intech deployed Ribbon's NPT 2100 IP Router to enhance connectivity in India.
• - Seren Juno reached 20Tbps transmission over the 10,000 km JUNO Trans-Pacific cable with Ribbon’s technology.
• - One NZ partnered with Ribbon, utilizing a cloud-native voice network.

These developments contribute to their broader vision of modernizing networks and solutions for service providers and critical infrastructures.

In summary, while Ribbon Communications has faced significant headwinds, its proactive approach and future-oriented strategies in AI and defense sectors suggest a robust plan for growth and innovation in a challenging economic landscape. The company remains committed to its goals of facilitating enhanced operational efficiencies and delivering high-value solutions to its clientele, ensuring that it stays at the forefront of communication technology advancements.