Ribbon Communications Earnings Call Transcripts
Fiscal Year 2026
-
The meeting covered director elections, auditor ratification, and executive compensation approval, with all proposals passing. Strategic highlights included AI-driven initiatives, new partnerships, and a focus on recurring revenue. No stakeholder questions were received.
-
Revenue declined 10% year-over-year in Q1 2026, with both segments down but strong bookings and demand in India and EMEA supporting a positive outlook. Margin pressures persisted, but guidance calls for revenue and EBITDA growth in Q2 and a stronger second half.
Fiscal Year 2025
-
Q4 revenue declined 10% year-over-year due to project delays, but record bookings and a strong backlog position the company for growth in 2026. Full-year revenue rose 1% to $845 million, with a $90 million tax benefit boosting net income. 2026 guidance projects modest growth and margin improvement.
-
Q3 revenue grew 2% year-over-year to $215M, with strong IP Optical and international growth offsetting U.S. federal sales delays from the government shutdown. Outlook for Q4 remains robust, with projected revenue of $230–$250M and continued momentum in AI-driven and modernization projects.
-
Q2 revenue hit a record $221M, up 15% year-over-year, with strong growth in both Cloud and Edge and IP Optical segments. Full-year guidance is reaffirmed, though FX headwinds may pressure margins. Robust demand and a strong backlog support a positive outlook.
-
Revenue grew 1% year-over-year to $181M, with strong cloud and edge demand and robust service provider sales. Q2 sales are expected to rise over 10% year-over-year, with margins and EBITDA improving as delayed projects close and product mix shifts.
Fiscal Year 2024
-
Q4 2024 delivered record revenue and earnings, driven by Cloud & Edge and strong U.S. and international growth. 2025 guidance projects continued revenue and EBITDA growth, with strategic focus on network modernization, fiber, and AI-driven opportunities.
-
Q3 2024 delivered strong Cloud and Edge growth, robust U.S. and federal/defense sales, and record margins, offsetting IP Optical declines from Eastern Europe. Q4 guidance projects 8% sales growth and higher margins, with 2025 revenue expected to rise mid-single digits.
-
Q2 revenue declined 8.5% year-over-year to $193M, mainly due to Eastern Europe and a delayed U.S. federal deal, but gross margin and adjusted EBITDA were strong. Second-half 2024 is expected to see ~25% revenue growth, driven by Verizon, rural broadband, and enterprise projects, with full-year guidance revised to $830–$850M revenue and $105–$115M adjusted EBITDA.