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Ribbon Q2 revenue beats estimates, keeps FY outlook unchanged

ReutersJul 23, 2025 8:14 PM


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

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