Ribbon Communications' Q4 revenue misses expectations

Overview

• Communications tech firm's Q4 revenue fell yr/yr, missing analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

Outlook

• Ribbon projects 2026 revenue between $840 mln and $875 mln

• Company expects 2026 non-GAAP gross margin of 52.5% to 53.5%

• Ribbon anticipates 2026 adjusted EBITDA between $105 mln and $120 mln

Result Drivers

• PROJECT DELAYS - Delays in customer projects and budget timing negatively impacted Q4 results, according to CEO Bruce McClelland

• VOICE MODERNIZATION - Record product and services bookings in Q4 were driven by new voice modernization programs

Key Details

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 123% above its February 4 closing price of $2.69

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nPn87j8Fja

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