Ribbon Communications Inc【RBBN】株式ニュース

Ribbon Communications Inc. Reports Fourth Quarter and Full Year 2025 Financial ResultsFebruary 5, 2026 4:03 PM
PR Newswire (US)

Strong Cash Flow and Bookings from Expanding Voice Modernization Customer BaseU.S. Tier 1 Service Provider Sales up over 25% in 2025Delays in Customer Projects and Budget Timing Impacted 4Q ResultsTargeting Expansion in High Growth AI and Defense MarketsNew Tax Benefit Expected to Result in Improved Cash ConversionPLANO, Texas, Feb. 5, 2026 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a global leader in real-time communications technology and IP optical networking solutions, today announced its financial results for the fourth quarter and the full year of 2025. Ribbon Communications is dedicated to assisting the world's largest service providers, enterprises, and critical infrastructure operators in modernizing and safeguarding their networks and services.

Fourth Quarter and Full Year 2025 HighlightsFourth Quarter 2025 Financial Results¹:Revenue was $227 million, compared to $251 million for the fourth quarter of 2024GAAP Operating Income was $9 million, compared to $33 million for the fourth quarter of 2024Non-GAAP Adjusted EBITDA was $40 million, compared to $55 million for the fourth quarter of 2024GAAP Gross Margin was 53.3%, compared to 55.7% for the fourth quarter of 2024Non-GAAP Gross Margin was 55.4%, compared to 58.1% for the fourth quarter of 2024Full Year 2025 Financial Results¹:Full-Year Revenue was $845 million, compared to $834 million for 2024GAAP Operating Income was a loss of ($3) million, compared to $17 million for 2024Non-GAAP Adjusted EBITDA was $107 million, compared to $119 million for 2024GAAP Gross Margin was 49.8%, compared to 52.7% for 2024Non-GAAP Gross Margin was 52.3%, compared to 55.9% for 2024"Although our fourth quarter results were impacted by several customer and project delays, we generated a new record level of Product and Services bookings in the quarter including over $50 million associated with new voice modernization programs for a growing number of customers across multiple regions. The delayed projects are not lost business and included deliverables already in backlog but with delayed deployment schedules. We also had several orders impacted by budget availability," stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. "As we look into 2026, we are accounting for these dynamic market conditions with a more conservative growth rate projection, particularly in the first half of the year where we expect continued lower U.S. Federal agency spending and recent industry M&A to cause timing uncertainty."Mr. McClelland continued, "In the mid-term, we expect to have multiple growth vectors fueled by accelerating adoption of AI across the Enterprise and the industry's shift towards achieving the goal of fully autonomous networking – an area where our new Acumen AIOps platform is purpose built to lead. We also expect increased global government and defense spending where we can leverage the strong foundation we have established in the U.S. and Europe to expand into other similar agencies. In parallel, we are considering select investments in rapidly growing private technology companies to further differentiate our portfolio and expand into high growth adjacent markets."John Townsend, Chief Financial Officer of Ribbon Communications, remarked, "In support of these goals, we expect to continue to improve our cost efficiency and working capital levels to drive better cash conversion. These efforts will receive a major boost from the tax benefit we recognized in the fourth quarter, which we expect will reduce our future cash tax payments by approximately $15-$20 million over the next several years, starting in 2026."

Three months ended
Year ended

December 31,
December 31,In millions, except per share amounts
2025
2024
2025
2024GAAP Revenue
$           227
$           251
$           845
$           834GAAP Net income (loss)
$             89
$               6
$             40
$ (54)Non-GAAP Net income (loss)
$           106
$             28
$           118
$             44Non-GAAP Adjusted EBITDA
$             40
$             55
$           107
$           119GAAP diluted earnings (loss) per share
$ 0.50
$ 0.04
$ 0.22
$ (0.31)Non-GAAP diluted earnings (loss) per share
$ 0.59
$ 0.16
$ 0.66
$ 0.25Weighted average shares outstanding basic
176
175
176
174Weighted average shares outstanding diluted
179
179
180
177
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:Intech Deploys Ribbon's NPT 2100 IP Router to Address India's Evolving Connectivity LandscapeSeren Juno and Ribbon Achieve 20Tbps Transmission on 10,000 km JUNO Trans-Pacific CableOne NZ and Ribbon Partner to Deliver Cloud Native Voice NetworkAircall Leverages Ribbon and AWS to Power Global Communications ConnectivityNasstar Taps Ribbon to Power UK Voice Network Transformation for Cloud EraBusiness Outlook2
For the full year 2026, the Company projects revenue of $840 million to $875 million. Non-GAAP gross margin is projected in a range of 52.5% to 53.5%. Adjusted EBITDA is projected in a range of $105 million to $120 million.For the first quarter of 2026, the Company projects revenue of $160 million to $170 million. Non-GAAP gross margin is projected in a range of 48% to 49%. Adjusted EBITDA is projected in a range of ($3) million to $1 million.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 ScheduleMarch 2-5, 2026: Mobile World Congress | BarcelonaMarch 17-19, 2026: Optical Fiber Communication Conference and Exhibition | Los AngelesMarch 23-24, 2026: 38th Annual ROTH ConferenceConference 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 Thursday, February 5, 2026.Dial-in Information:
US/Canada: 877-407-2991
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.comMedia Contact
Catherine Berthier
+1 (646) 741-1974
cberthier@rbbn.comAbout 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 U.S. Private Securities Litigation Reform Act of 1995, which are subject to a number of risks and uncertainties. All statements other than statements of historical facts contained in this release, including without limitation, statements regarding the Company's projected financial results for the first quarter of 2026 and beyond, expected customer spend and timing, beliefs about the Company's business strategy, including new product introductions such as the Acumen AIOps platform, beliefs about the accelerating adoption of AI and the shift towards autonomous networking, the impact of the new tax benefit recognized in the fourth quarter of 2025 and market share growth, are forward-looking statements. Without limiting the foregoing, the words "anticipates", "believes", "could", "estimates", "expects", "expectations", "intends", "may", "plans", "projects" and other similar language, whether in the negative or affirmative, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.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; slowdowns in customer capital spending related to their internal cost cutting initiatives; increases in tariffs, trade restrictions or taxes on the Company's products; customer acceptance of and demand for the Company's new product and solution introductions; material cybersecurity and data intrusion incidents, including any security breaches resulting in the theft, transfer, or unauthorized disclosure of customer, employee, or Company information; the impact of the government funding on the Company's operating results including delayed purchases resulting from government shutdowns or changes in federal subsidies; supply chain disruptions resulting from component availability and/or geopolitical instabilities and disputes (including those related to the military conflict in Israel and the war in Ukraine); the impact of military call-ups of employees in Israel; material litigation; the impact of fluctuations in interest rates; the Company's ability to comply with applicable domestic and foreign information security and privacy laws, regulations and technology platform rules or other obligations related to data privacy and security; failure to compete successfully against telecommunications equipment and networking companies; failure to grow the Company's customer base or generate recurring business from existing customers; credit risks; the timing of customer purchasing decisions and the Company's recognition of revenues; macroeconomic conditions, including inflation; the Company's ability to adapt to rapid technological and market changes; the Company's ability to generate positive returns on its research and development; the Company's ability to protect its intellectual property rights and obtain necessary licenses; the Company's ability to maintain partner, reseller, distribution and vendor support and supply relationships; the potential for defects in the Company's products; risks related to the terms of the Company's credit agreement; higher risks in international operations and markets; currency fluctuations; unanticipated adverse changes in legal, regulatory or tax laws; future accounting pronouncements or changes in the Company's accounting policies and/or failure or circumvention of the Company's controls and procedures. We therefore caution you against relying on any of these forward-looking statements.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.Cybersecurity Incident
The Company has recorded expenses associated with responding to and remediating a cybersecurity incident, including costs for external legal services, cybersecurity experts, and IT restoration activities. The Company believes that excluding these expenses facilitates the comparison of its financial results to its historical operating performance and to other companies in its industry, as these costs are non-recurring in nature and are not associated with future revenue streams or ongoing operational benefits.Acquisition-, Disposal- and Integration-Related
The Company considers certain acquisition-, disposal- and integration-related costs to be unrelated to the organic continuing operations of the Company and its acquired businesses. Such costs are generally not relevant to assessing or estimating the long-term performance of the acquired assets. In 2025, the Company recorded expense for legal and professional fees associated with contemplated corporate development activities. The Company excludes such acquisition-, disposal- and integration-related costs to allow more accurate comparisons of its financial results to its historical operations and the financial results of less acquisitive peer companies and allows management and investors to consider the ongoing operations of the business both with and without such expenses.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 $6 million tax indemnity asset, consisting of 2 million shares of common stock held in escrow, was written off upon its expiration on December 31, 2024. The Company believes that excluding this tax indemnification write-off facilitates the comparison of the Company's financial results to its historical operating results and to other companies in its industry.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 Company computes its non-GAAP estimated tax rate using its estimated GAAP annual effective tax rate for the period and adjusting for the tax effect of pre-tax non-GAAP adjustments. The Company computes a single annual non-GAAP rate for the Company and applying that rate (rather than multiple rates by jurisdiction) to its consolidated quarterly results. The Company expects that this methodology will provide a consistent rate throughout the year and allow investors to better understand the impact of income taxes on its results. Due to the methodology applied to its estimated annual tax rate, the Company's estimated tax rate on non-GAAP income will differ from its GAAP tax rate and from its actual tax liabilities.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; expenses related to cybersecurity incidents; acquisition-, disposal- and integration-related expense; 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

December 31,
September 30
December 31,

2025
2025
2024Revenue:

Product$       127,560
$             109,979
$       148,335
Service99,763
105,392
103,024

Total revenue227,323
215,371
251,359

Cost of revenue:

Product62,571
62,037
68,483
Service39,067
40,311
37,316
Amortization of acquired technology4,622
5,057
5,487

Total cost of revenue106,260
107,405
111,286

Gross profit121,063
107,966
140,073

Gross margin53.3 %
50.1 %
55.7 %

Operating expenses:

Research and development44,714
45,894
45,044
Sales and marketing35,688
33,063
37,070
General and administrative16,113
16,368
17,060
Amortization of acquired intangible assets5,786
5,933
6,298
Acquisition-, disposal- and integration-related-
439
-
Restructuring and related9,465
3,506
1,381

Total operating expenses111,766
105,203
106,853

Income (loss) from operations9,297
2,763
33,220Interest expense, net(10,928)
(11,606)
(12,003)Other (expense) income, net1,390
(134)
(13,159)

Income (loss) before income taxes(241)
(8,977)
8,058Income tax benefit (provision)89,306
(3,132)
(1,694)

Net income (loss)$          89,065
$              (12,109)
$            6,364

Earnings (loss) per share:

Basic
$              0.51
$                  (0.07)
$              0.04
Diluted$              0.50
$                  (0.07)
$              0.04

Weighted average shares used to compute earnings (loss) per share:

Basic
175,704
176,620
175,321
Diluted178,724
176,620
178,703 RIBBON COMMUNICATIONS INC.Consolidated Statements of Operations(in thousands, except percentages and per share amounts)(unaudited)

Year ended

December 31,
December 31,

2025
2024Revenue:

Product$       434,587
$       447,229
Service409,969
386,652

Total revenue844,556
833,881

Cost of revenue:

Product249,247
228,527
Service154,259
140,949
Amortization of acquired technology20,344
24,893

Total cost of revenue423,850
394,369

Gross profit420,706
439,512

Gross margin49.8 %
52.7 %

Operating expenses:

Research and development178,872
179,941
Sales and marketing133,075
137,830
General and administrative64,239
68,740
Amortization of acquired intangible assets23,849
25,969
Acquisition-, disposal- and integration-related4,337
-
Restructuring and related19,658
10,160

Total operating expenses424,030
422,640

Income (loss) from operations(3,324)
16,872Interest expense, net(44,011)
(33,821)Other (expense) income, net2,226
(29,119)

Income (loss) before income taxes(45,109)
(46,068)Income tax benefit (provision)84,745
(8,167)

Net income (loss)$          39,636
$        (54,235)

Earnings (loss) per share:

Basic
$              0.22
$            (0.31)
Diluted$              0.22
$            (0.31)

Weighted average shares used to compute earnings (loss) per share:

Basic
176,199
174,044
Diluted179,822
174,044 RIBBON COMMUNICATIONS INC.Consolidated Balance Sheets(in thousands)(unaudited)

December 31,
December 31,

2025
2024Assets

Current assets:

Cash and cash equivalents$          96,405
$          87,770
Restricted cash1,726
2,709
Accounts receivable, net231,885
254,718
Inventory78,806
79,179
Other current assets45,663
39,286

Total current assets454,485
463,662

Property and equipment, net65,559
60,364Intangible assets, net143,344
187,537Goodwill300,892
300,892Deferred income taxes174,318
88,982Operating lease right-of-use assets46,240
34,544Other assets27,417
26,573

$    1,212,255
$    1,162,554

Liabilities and Stockholders' Equity

Current liabilities:

Current portion of term debt$            8,750
$            6,125
Accounts payable79,840
87,759
Accrued expenses and other90,759
106,251
Operating lease liabilities11,699
9,443
Deferred revenue124,425
119,295

Total current liabilities315,473
328,873

Long-term debt, net of current324,525
330,726Warrant liability1,919
8,064Operating lease liabilities, net of current60,159
37,376Deferred revenue, net of current31,654
20,991Deferred income taxes5,728
5,941Other long-term liabilities23,803
25,962

Total liabilities763,261
757,933

Commitments and contingencies

Stockholders' equity:

Common stock18
18
Additional paid-in capital1,976,958
1,970,708
Accumulated deficit(1,534,549)
(1,574,185)
Accumulated other comprehensive income6,567
8,080

Total stockholders' equity448,994
404,621

$    1,212,255
$    1,162,554 RIBBON COMMUNICATIONS INC.Consolidated Statements of Cash Flows(in thousands)(unaudited)

Year ended

December 31,
December 31,

2025
2024Cash flows from operating activities:

Net income (loss)$            39,636
$          (54,235)
Adjustments to reconcile net income (loss) to cash flows (used in) provided by operating activities:

Depreciation and amortization of property and equipment16,728
13,539

Amortization of intangible assets44,193
50,862

Amortization of debt issuance costs and original issue discount2,802
4,847

Amortization of accumulated other comprehensive gain related to interest rate swap-
(8,196)

Stock-based compensation19,406
16,086

Deferred income taxes(85,603)
(16,887)

Change in fair value of warrant liability(5,995)
2,769

Change in fair value of preferred stock liability-
8,091

Dividends accrued on preferred stock liability-
2,743

Payment of dividends accrued on preferred stock liability-
(6,686)

Foreign currency exchange (gains) losses3,653
5,741

Changes in operating assets and liabilities:

Accounts receivable20,028
12,420

Inventory234
(3,616)

Other operating assets(564)
30,459

Accounts payable(3,257)
(6,016)

Accrued expenses and other long-term liabilities(15,656)
(9,367)

Deferred revenue15,793
7,686

Net cash (used in) provided by operating activities51,398
50,240

Cash flows from investing activities:

Purchases of property and equipment(25,342)
(22,406)
Purchases of software licenses-
(462)

Net cash (used in) provided by investing activities(25,342)
(22,868)

Cash flows from financing activities:

Borrowings under revolving line of credit-
44,106
Principal payments on revolving line of credit-
(44,106)
Proceeds from issuance of term debt-
342,300
Principal payments of term debt(6,125)
(237,145)
Payment of debt issuance costs-
(6,312)
Payment of preferred stock liability-
(56,850)
Proceeds from the exercise of stock options6
21
Payment of tax obligations related to vested stock awards and units(4,357)
(4,308)
Repurchase of common stock(8,955)
-

Net cash (used in) provided by financing activities(19,431)
37,706

Effect of exchange rate changes on cash and cash equivalents1,027
(1,229)

Net (decrease) increase in cash and cash equivalents7,652
63,849Cash, cash equivalents and restricted cash, beginning of year90,479
26,630Cash, cash equivalents and restricted cash, end of year$            98,131
$            90,479 RIBBON COMMUNICATIONS INC.Supplemental Information(in thousands)(unaudited)

The following tables provide the details of stock-based compensation included as components of other line items in the Company's
Consolidated Statements of Operations and the line items in which these amounts are reported.

Three months ended
Year ended

December 31,
September 30
December 31,
December 31,
December 31,

2025
2025
2024
2025
2024Stock-based compensation

Cost of revenue - product$               43
$               17
$               66
$             159
$             300Cost of revenue - service165
152
288
801
1,325
Cost of revenue208
169
354
960
1,625

Research and development436
398
737
2,014
3,166Sales and marketing915
1,493
1,178
4,647
4,397General and administrative3,228
3,784
1,756
11,785
6,898
Operating expense4,579
5,675
3,671
18,446
14,461

Total stock-based compensation$          4,787
$          5,844
$          4,025
$       19,406
$       16,086 RIBBON COMMUNICATIONS INC.
Reconciliation of Non-GAAP and GAAP Financial Measures
(in thousands, except per share amounts)
(unaudited)
Three months ended
December 31,
September 30
December 31,
2025
2025
2024

GAAP Gross margin53.3 %
50.1 %
55.7 %Stock-based compensation0.1 %
0.1 %
0.2 %Amortization of acquired technology2.0 %
2.4 %
2.2 %Non-GAAP Gross margin55.4 %
52.6 %
58.1 %

GAAP Net income (loss)$          89,065
$        (12,109)
$            6,364Stock-based compensation4,787
5,844
4,025Amortization of intangible assets10,408
10,990
11,785Litigation costs973
952
1,583Cybersecurity incident600
-
-Acquisition-, disposal- and integration-related-
439
-Restructuring and related9,465
3,506
1,381Preferred stock and warrant liability mark-to-market adjustment(3,184)
(1,170)
2,478Tax indemnification write-off-
-
6,313Tax effect of non-GAAP adjustments(5,964)
(1,501)
(5,648)Non-GAAP Net income (loss)$       106,150
$            6,951
$          28,281

GAAP Diluted earnings (loss) per share$              0.50
$            (0.07)
$              0.04Stock-based compensation0.03
0.04
0.02Amortization of intangible assets0.06
0.06
0.06Litigation costs0.01
0.01
0.01Cybersecurity incident *
-
-Acquisition-, disposal- and integration-related-
*
-Restructuring and related0.05
0.02
0.01Preferred stock and warrant liability mark-to-market adjustment(0.02)
(0.01)
0.01Tax indemnification write-off-
-
0.04Tax effect of non-GAAP adjustments(0.04)
(0.01)
(0.03)Non-GAAP Diluted earnings (loss) per share$              0.59
$              0.04
$              0.16

Weighted average shares used to compute diluted earnings (loss) per share

Shares used to compute GAAP diluted earnings (loss) per share178,724
176,620
175,321 Shares used to compute Non-GAAP diluted earnings (loss) per share178,724
181,033
178,703

GAAP Income (loss) from operations$            9,297
$            2,763
$          33,220Depreciation4,546
4,425
3,408Stock-based compensation4,787
5,844
4,025Amortization of intangible assets10,408
10,990
11,785Litigation costs973
952
1,583Cybersecurity incident600
-
-Acquisition-, disposal- and integration-related-
439
-Restructuring and related9,465
3,506
1,381Non-GAAP Adjusted EBITDA$          40,076
$          28,919
$          55,402

* Less than $0.01 impact on earnings (loss) per share.

RIBBON COMMUNICATIONS INC.Reconciliation of Non-GAAP and GAAP Financial Measures(in thousands, except per share amounts)(unaudited)

Year ended
December 31,
December 31,
2025
2024

GAAP Gross Margin49.8 %
52.7 %Stock-based compensation0.1 %
0.2 %Amortization of acquired technology2.4 %
3.0 %Non-GAAP Gross Margin52.3 %
55.9 %

GAAP Net income (loss)$          39,636
$        (54,235)Stock-based compensation19,406
16,086Amortization of intangible assets44,193
50,862Litigation costs5,039
11,198Cybersecurity incident600
-Acquisition-, disposal- and integration-related4,337
-Restructuring and related19,658
10,160Preferred stock and warrant liability mark-to-market adjustment(5,995)
13,604Tax indemnification write-off-
6,313Tax effect of non-GAAP adjustments(8,743)
(9,796)Non-GAAP Net income (loss)$       118,131
$          44,192

GAAP Diluted earnings (loss) per share$              0.22
$            (0.31)Stock-based compensation0.11
0.09Amortization of intangible assets0.25
0.29Litigation costs0.03
0.06Cybersecurity incident *
-Acquisition-, disposal- and integration-related0.02
-Restructuring and related0.11
0.06Preferred stock and warrant liability mark-to-market adjustment(0.03)
0.08Tax indemnification write-off-
0.04Tax effect of non-GAAP adjustments(0.05)
(0.06)Non-GAAP Diluted earnings (loss) per share$              0.66
$              0.25

Weighted average shares used to compute diluted earnings (loss) per share

Shares used to compute GAAP diluted earnings (loss) per share179,822
174,044 Shares used to compute Non-GAAP diluted earnings (loss) per share179,822
177,306

GAAP Income (loss) from operations$          (3,324)
$          16,872Depreciation16,728
13,539Stock-based compensation19,406
16,086Amortization of intangible assets44,193
50,862Litigation costs5,039
11,198Cybersecurity incident600
-Acquisition-, disposal- and integration-related4,337
-Restructuring and related19,658
10,160Non-GAAP Adjusted EBITDA$       106,637
$       118,717

* Less than $0.01 impact on earnings (loss) per share.

RIBBON COMMUNICATIONS INC.Reconciliation of Non-GAAP and GAAP Financial Measures(in thousands)(unaudited)

Trailing Twelve Months

December 31,
September 30
December 31,
2025
2025
2024

GAAP Income (loss) from operations$          (3,324)
$          20,599
$          16,872Depreciation16,728
15,590
13,539Stock-based compensation19,406
18,644
16,086Amortization of intangible assets44,193
45,570
50,862Litigation costs5,039
5,649
11,198Cybersecurity incident600
-
-Acquisition-, disposal- and integration-related4,337
4,337
-Restructuring and related19,658
11,574
10,160Non-GAAP Adjusted EBITDA$       106,637
$       121,963
$       118,717 RIBBON COMMUNICATIONS INC.Reconciliation of Non-GAAP and GAAP Financial Measures - Outlook(unaudited)

Three months ending
Year ending

March 31, 2026
December 31, 2026

Midpoint (1)

Range
Midpoint (1)
Range

Revenue ($ millions)$             165

+/- $5M
$          857.5
+/- $17.5M

Gross margin:

GAAP outlook45.8 %

50.9 %

Stock-based compensation0.1 %

0.1 %

Amortization of acquired technology2.6 %

2.0 %

Non-GAAP outlook48.5 %

+/- 0.5%
53.0 %
+/- 0.5%

Adjusted EBITDA ($ millions):

GAAP income (loss) from operations$          (23.6)

$            22.2

Depreciation4.5

18.3

Stock-based compensation5.8

23.4

Amortization of intangible assets9.8

39.1

Litigation costs0.3

1.2

Restructuring and related2.2

8.3

Non-GAAP outlook$            (1.0)

+/- $2M
$          112.5
+/- $7.5M

(1) Q1 2026 and FY 2026 outlook represents the midpoint of the expected ranges

View original content to download multimedia:https://www.prnewswire.com/news-releases/ribbon-communications-inc-reports-fourth-quarter-and-full-year-2025-financial-results-302680678.htmlSOURCE Ribbon Communications Inc.

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