Ribbon Communications (RBBN) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $192 million, up 18% sequentially but down 12.8% year-over-year, with key financial metrics above guidance midpoint and record IP Optical bookings, especially in North America and enterprise sectors.

• Adjusted EBITDA was $12 million, a $20 million sequential improvement but down $20 million year-over-year; GAAP net loss was $27 million ($0.15 per share).

• Strategic wins included major enterprise deals, a significant Salesforce partnership for AI-powered contact centers, and expansion in government, defense, and critical infrastructure markets.

• Enterprise sales rose sequentially, offsetting some declines in service provider sales; service provider revenue up 9% sequentially.

• Profitability improved sequentially, but year-over-year declines reflect lower demand from Tier 1 service providers and delayed federal purchasing.

Financial highlights

• Non-GAAP gross margin was 49.3%, up 350 bps sequentially but down 280 bps year-over-year; GAAP gross margin was 47.0%.

• Non-GAAP net loss was $5 million; GAAP net loss was $27 million; diluted loss per share was $0.15.

• Cash and equivalents at quarter-end were $45 million, down from $98 million at year-end 2025.

• Net debt leverage ratio was 4.0x; outstanding term debt was $338 million at a 9.9% average interest rate.

• Capital expenditures were $5 million in Q2; $7.9 million invested in H1 2026.

Outlook and guidance

• Q3 2026 revenue expected between $215 million and $230 million; adjusted EBITDA between $26 million and $31 million.

• Full-year 2026 revenue guidance is $810 million–$840 million, with adjusted EBITDA of $78 million–$88 million.

• Gross margin guidance for FY26 is 51%–52%, lowered due to mix shift, lower professional services, and higher component costs.

• Management expects 2026 revenue and gross margin to be slightly lower than 2025.

• Supply chain constraints and $2 million per quarter in higher product costs expected to persist, with partial offsets from price increases.