Ribbon Communications' Q3 revenue misses estimates as U.S. federal shutdown impacted cloud sales

Ribbon Communications

22/10/2025 21:11

Overview

Ribbon Q3 revenue of $215 mln missed analyst expectations, per LSEG data

Adjusted EPS for Q3 missed analyst expectations

Company launched Acumen AIOps platform with a significant customer win

Outlook

Company projects Q4 2025 revenue of $230 mln to $250 mln

Ribbon expects Q4 non-GAAP gross margin between 55% and 56%

Company anticipates Q4 adjusted EBITDA of $42 mln to $48 mln

Result Drivers

IP OPTICAL NETWORKS - Sales grew 11% YoY, driven by strong performance in EMEA and India

ACUMEN AIOPS PLATFORM - Launch and deployment with a leading U.S. service provider noted as a significant innovation

CLOUD & EDGE SALES - Growth impacted by U.S. Federal Government shutdown, but voice modernization projects continue

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$215 mln
$220 mln (6 Analysts)
Q3 Adjusted EPS
Miss
$0.04
$0.06 (6 Analysts)
Q3 EPS
-$0.07
Q3 Adjusted Net Income
Miss
$7 mln
$10.30 mln (6 Analysts)
Q3 Net Income
-$12 mln
Q3 Adjusted EBITDA
Miss
$29 mln
$31.30 mln (5 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the communications & networking peer group is "buy"

Wall Street's median 12-month price target for Ribbon Communications Inc is $6.00, about 32.7% above its October 21 closing price of $4.04

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nPn2nwCYda

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)