Ribbon Communications (RBBN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $163 million, down from $181 million year-over-year, with both Cloud & Edge and IP Optical Networks segments declining.

• Adjusted EBITDA was a loss of $8 million, compared to $6 million in Q1 2025, with margin at (5%).

• Gross margin and earnings were below expectations due to lower professional services revenue, higher service costs, and mix shifts.

• Stronger demand in India and EMEA offset weaker U.S. Tier 1 provider sales; new wins in Data Center Interconnect and secure optical networks.

• Leadership transition: Rick Marmurek promoted to CFO as John Townsend departs.

Financial highlights

• Non-GAAP gross margin was 45.8%, down from 48.6% year-over-year; GAAP gross margin was 42.9%.

• Non-GAAP net loss was $8 million, or $0.05 per diluted share; GAAP net loss was $34 million.

• Cash flow from operations was negative $22 million; closing cash was $67.6 million; net debt leverage ratio at 2.9x.

• CapEx spend was $3 million, in line with normal run rate.

• Maintenance revenue comprised 39% of total revenue; top 10 customers accounted for 49%.

Outlook and guidance

• Q2 2026 revenue expected between $185 million and $195 million; adjusted EBITDA between $9 million and $14 million.

• Full-year 2026 revenue guidance midpoint is $857.5 million; non-GAAP gross margin expected at 53%.

• Q2 2026 non-GAAP gross margin projected at 49–50%; full-year at 52.5–53.5%.

• Management expects margin expansion and revenue growth in the second half of 2026.

• Anticipate higher deployment levels at major customers and continued strength in India.