Ribbon Communications Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw strong sequential growth, with revenue up 18% and record IP Optical bookings, though year-over-year results declined due to tough comps and slower deployments at key customers. Guidance for the year was lowered, reflecting supply chain pressures and mix shifts, but momentum in enterprise, AI, and critical infrastructure remains strong.
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The meeting covered director elections, auditor ratification, and executive compensation approval. Strategic highlights included AI-driven initiatives, new partnerships, and a strong financial outlook. No questions were raised by stakeholders.
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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
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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.
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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.
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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.
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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
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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.
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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.
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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.