Ribbon Communications (RBBN) investor relations material

Executive summary

• Full-year 2025 revenue increased 1% to $845 million, with Q4 revenue at $227 million, down 10% year-over-year due to project delays, but record bookings and a strong backlog position the company for future growth.

• Adjusted EBITDA for 2025 was $107 million, down 10% year-over-year; Q4 adjusted EBITDA was $40 million, down $15 million year-over-year.

• Significant U.S. tax benefit recognized in Q4, boosting non-GAAP EPS to $0.59 and expected to improve future cash conversion by reducing cash tax payments by $15–$20 million over several years.

• Ended 2025 with a strong financial position, including $98 million in cash and net debt leverage of 2.3x.

• U.S. Tier 1 service provider sales grew over 25% in 2025, with strong growth in India and expanding customer base in voice modernization.

Financial highlights

• Q4 2025 revenue: $227 million; full-year revenue: $845 million; Q4 non-GAAP gross margin: 55.4%; full-year non-GAAP gross margin: 52.3%.

• Q4 adjusted EBITDA: $40 million; full-year adjusted EBITDA: $107 million.

• Q4 non-GAAP net income: $106 million, up $78 million year-over-year due to a $90 million deferred tax benefit; full-year non-GAAP net income: $118 million, up $74 million.

• Q4 non-GAAP diluted EPS: $0.59, up $0.43; full-year EPS: $0.66, up $0.41.

• Cash from operations: $29 million in Q4; $51 million for the year. Year-end cash balance: $98 million.

Outlook and guidance

• 2026 revenue guidance: $840 million–$875 million, implying 1.5% year-over-year growth at midpoint.

• 2026 adjusted EBITDA guidance: $105 million–$120 million, up 6% at midpoint.

• Q1 2026 revenue expected at $160 million–$170 million, with adjusted EBITDA between -$3 million and +$1 million.

• Full-year non-GAAP gross margin expected at 52.5%–53.5%; Q1 2026 non-GAAP gross margin at 48%–49%.

• Growth rate projection for 2026 is more conservative, especially in the first half, due to lower U.S. Federal agency spending and industry M&A timing uncertainty.