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