Ribbon Q2 revenue beats estimates, keeps FY outlook unchanged

Ribbon Communications

23/07/2025 21:14

Overview

Ribbon Q2 revenue rises 15% yr/yr, beating analyst expectations, per LSEG data

Adjusted EBITDA for Q2 beats estimates, reaching $32 mln, per LSEG data

Co announced $50 mln share repurchase program in the qtr

Outlook

Ribbon projects Q3 2025 revenue of $213 mln to $227 mln

Company expects Q3 non-GAAP gross margin of 53.5% to 54.0%

Ribbon sees Q3 adjusted EBITDA between $28 mln and $34 mln

Full-year 2025 projections remain unchanged

Result Drivers

STRONG DEMAND - Robust demand in North American Service Provider and Enterprise markets drove revenue growth, per CEO Bruce McClelland

IP OPTICAL MOMENTUM - Significant momentum in IP Optical business in India and North America supported fiber and mobile network expansion

PROFITABILITY IMPROVEMENT - GAAP operating income reached $4 mln, compared to a loss in prior year

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$221 mln
$213.40 mln (6 Analysts)
Q2 Adjusted EPS
Meet
$0.05
$0.05 (6 Analysts)
Q2 EPS
-$0.06
Q2 Adjusted Net Income
Beat
$10 mln
$9.76 mln (6 Analysts)
Q2 Net Income
-$11 mln
Q2 Adjusted EBITDA
Beat
$32 mln
$29.60 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 32.8% above its July 22 closing price of $4.03

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nPn9lsFHNa

(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.)