Ribbon Communications Reveals $50 Million Share Repurchase Initiative to Boost Stockholder Value

Ribbon Communications Initiates $50 Million Share Repurchase Program

On June 3, 2025, Ribbon Communications Inc. (Nasdaq: RBBN), a forefront player in real-time communications technology and IP optical networking solutions, disclosed its plan to initiate a share repurchase program totaling $50 million. The program, which is slated to commence on June 5, 2025, will run through December 31, 2027, demonstrating the company’s commitment to enhancing stockholder value amidst a robust financial performance.

Confidence in Strategic Growth

The announcement, made by Bruce McClelland, President and CEO of Ribbon Communications, reflects the board's confidence in the company’s strategic direction and significant performance improvements observed during 2024. Notably, Ribbon has enjoyed a remarkable year where business dealings with U.S. Tier One Service Providers doubled due to strategic partnerships, notably a multi-year contract with Verizon, aimed at modernizing their telecom voice infrastructure. Additionally, strong growth has been noted in enterprises and U.S. Federal agencies, underpinning the robust expansion strategy.

"Our business visibility has vastly improved, characterized by a positive book-to-bill ratio and an increasing backlog of projects. All these factors have contributed to a 30% rise in earnings in 2024, reaching the upper limit of our annual guidance," stated McClelland.

Repurchase Program Details

The share repurchase program allows Ribbon Communications to buy back shares through various means, such as in open market transactions, privately negotiated deals, or arrangements facilitated by investment banking institutions. The program may also leverage Rule 10b5-1 plans to streamline repurchase operations. Each repurchase decision will depend on liquidity, cash flow, stock market conditions, and compliance with the company's credit agreements.

The backing for this repurchase initiative will primarily come from available cash resources or cash generated from operations. McClelland emphasized, "This repurchase strategy is not only a way to deliver value to our shareholders but also a signal of our expectations for sustainable growth in the long run."

About Ribbon Communications

Ribbon Communications is globally recognized for its secure cloud communications and IP optical networking solutions, catering to service providers, enterprises, and essential infrastructure sectors. The company strives to elevate customer experiences by modernizing communication networks, thereby enhancing competitive position and business operations in an increasingly data-driven landscape. Its offerings are backed by cloud-native architectures, automation and analytics tools, and advanced security measures.

Ribbon Communications remains dedicated to its Environmental, Social, and Governance (ESG) commitments, furnishing an annual Sustainability Report that highlights its initiatives and performance in these areas. For further insights into Ribbon Communications and its solutions, visit rbbn.com.

Conclusion

With the introduction of a $50 million share repurchase program, Ribbon Communications reaffirms its strategic position in the market and empowers its stockholders. This move signifies both a commitment to improving shareholder value and a strong belief in the forthcoming growth potential driven by technological advancements and strengthened partnerships in the telecommunication sector.