Ribbon Communications (RBBN) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenue of $221M, up 15% year-over-year, with strong growth in Cloud & Edge and Service Provider/Enterprise markets; 1H 2025 revenue reached $402M, up 8% year-over-year.

• Adjusted EBITDA for Q2 was $32M, up 47% year-over-year, with a margin of 14%.

• Book-to-Bill ratio above 1.0x, indicating strong order intake and visibility into the second half.

• Cash balance ended at $62M at quarter end.

• Announced a $50M share repurchase program, with $2.3M repurchased in Q2.

Financial highlights

• Q2 2025 revenue: $221M, up 15% year-over-year; Adjusted EBITDA: $32M; Non-GAAP EPS: $0.05; GAAP net loss: $11.1M; GAAP diluted EPS: $(0.06).

• Non-GAAP gross margin: 52.1% (down from 54.4%); GAAP gross margin: 49.6% (down from 50.8%).

• Cash from operations: $(1M) in Q2; $(4.3M) for six months; closing cash balance: $62M.

• Q2 2025 product revenue: $115.1M (up 16.1%); service revenue: $105.5M (up 12.9%).

• Operating income for Q2: $4.2M; operating margin: 1.9%.

Outlook and guidance

• Full-year 2025 revenue guidance reaffirmed at $870M–$890M; Q3 2025 revenue projected at $213M–$227M.

• Q3 2025 Adjusted EBITDA guidance: $28M–$34M; full-year 2025 Adjusted EBITDA: $130M–$140M.

• Non-GAAP gross margin for Q3 2025 expected at 53.5%–54.0%; full-year 2025 at 54.0%–55.0%.

• Expect 15–20% revenue growth in the second half versus the first half; Q4 anticipated to be the strongest quarter.

• Gross margin and EBITDA expected at lower end of guidance due to FX headwinds and product mix.