10-K · February 26, 2026
Ribbon reported FY2025 revenue of $844.6 million (vs. $833.9M in 2024) with GAAP net income of $39.6 million and diluted EPS of $0.22. Operationally the company generated $51.4 million of cash from operations (implying…
Earnings analysis · 10-Q
RBBN earnings analysis
Filed May 6, 2026 · Our reading of the company's report
The latest report
Ribbon Communications reported Q1 2026 revenue of $162.6 million and a non-GAAP diluted EPS of $(0.05), slightly outperforming the consensus estimates while experiencing a 10.3% decline in revenue from the prior year.…
Read full summary
Ribbon Communications reported Q1 2026 revenue of $162.6 million and a non-GAAP diluted EPS of $(0.05), slightly outperforming the consensus estimates while experiencing a 10.3% decline in revenue from the prior year. Management highlighted continued restructuring efforts and challenges within its product segments, particularly IP Optical Networks. Looking ahead, they anticipate consistent revenue for the year and a rebound in gross margins amid ongoing projects.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.05
- Gross margin
- 42.9%
- Segment
- Cloud and Edge: $99.5M; IP Optical Networks: $63.1M
What stood out
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Revenue Decline Compared to Prior Year
Q1 2026 revenue was $162.6 million, down 10.3% from $181.3 million in Q1 2025.
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Improved EPS vs. Expectations
EPS of $(0.05) beat the estimate of $(0.07), marking a surprise of 28.57%.
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Segment Revenue Decline
Cloud and Edge segment revenue fell to $99.5 million from $107.6 million, while IP Optical Networks dropped to $63.1 million from $73.7 million.
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Operating Cash Flow Challenges
Cash used in operating activities amounted to $22.0 million in Q1 2026, a substantial increase from $3.5 million in Q1 2025.
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Substantial Restructuring Costs
Recorded restructuring and related expense of $2.0 million in Q1 2026, down from $5.3 million in Q1 2025.
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Liquidity Position
Cash and cash equivalents decreased to $70 million from $98 million at year-end 2025.
What to watch
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Ongoing Net Losses
Q1 2026 net loss expanded to $(34.5) million, compared to $(26.2) million in Q1 2025.
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Inventory and Receivables Increase
Total inventories increased to $29.6 million from $24.5 million, suggesting excess stock amid declining sales.
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Dependence on Customer Demand
Continued volatility in customer demand, particularly in IP Optical Networks, poses a risk to revenue stability.
Management's outlook
Management expects Q2 2026 revenue between $185 million and $195 million.
Earlier filings 4
10-K · February 27, 2025
Ribbon reported modest top-line growth to $833.9M in 2024 and achieved a positive income from operations of $16.9M (vs. an operating loss of $24.3M in 2023), driven by Cloud & Edge strength. Gross margin expanded to…
10-Q · October 24, 2024
Ribbon reported Q3 2024 revenue of $210.238 million, up 3.5% year‑over‑year, with gross margin expanding to 52.1% but returning to a small operating loss of $0.9 million. Cloud & Edge growth (+$12.313M) drove the…
10-Q · July 29, 2024
Ribbon reported Q2 revenue of $192.620 million, down 8.5% year-over-year from $210.618 million, while gross margin expanded to 50.8% (from 48.2%). Operating loss narrowed to $1.9 million for the quarter and GAAP net…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.