Ribbon Communications Inc
NASDAQ:RBBN
Ribbon Communications Inc
Ribbon Communications, Inc. delivers communications software, IP and optical networking solutions to service providers, enterprises, and infrastructure sectors. The company is headquartered in Plano, Texas and currently employs 3,685 full-time employees. The company went IPO on 2004-09-13. The firm provides a range of software and high-performance hardware products, network solutions, and services, which enable the secure delivery of data and voice communications, and high-bandwidth networking and connectivity for residential consumers and for small, medium, and large enterprises and industry verticals, such as finance, education, government, utilities and transportation. The company has two segments: the Cloud and Edge and the IP Optical Networks. The Cloud and Edge segment provides software and hardware products, solutions, and services for VoIP communications, voice over LTE and voice over 5G communications, as well as unified communications and collaboration services to both service provider and enterprise customers. IP Optical Networks segment provides hardware and software products and solutions for IP networking, switching and routing, and optical transport.
Ribbon Communications, Inc. delivers communications software, IP and optical networking solutions to service providers, enterprises, and infrastructure sectors. The company is headquartered in Plano, Texas and currently employs 3,685 full-time employees. The company went IPO on 2004-09-13. The firm provides a range of software and high-performance hardware products, network solutions, and services, which enable the secure delivery of data and voice communications, and high-bandwidth networking and connectivity for residential consumers and for small, medium, and large enterprises and industry verticals, such as finance, education, government, utilities and transportation. The company has two segments: the Cloud and Edge and the IP Optical Networks. The Cloud and Edge segment provides software and hardware products, solutions, and services for VoIP communications, voice over LTE and voice over 5G communications, as well as unified communications and collaboration services to both service provider and enterprise customers. IP Optical Networks segment provides hardware and software products and solutions for IP networking, switching and routing, and optical transport.
Revenue Miss: Ribbon's Q4 revenue was below guidance due to customer and project delays, but most delayed business is expected to materialize in future quarters.
Growth Drivers: Strong bookings in Q4, including record product and professional service orders and $50 million in new non-Verizon Cloud & Edge modernization projects.
Headwinds: Significant year-over-year decline in government and defense sales and reduced U.S. federal agency sales, as well as delays tied to government funding (like BEAD) and customer restructuring.
Profitability: Adjusted EBITDA for Q4 was $40 million, $2 million below guidance, but offset by lower operating expenses.
Tax Benefit: Recognition of a $90 million deferred tax benefit led to a significant increase in net income and EPS for the quarter.
2026 Guidance: Management is cautious, projecting flat to low-single-digit revenue growth and improved gross margins, with a slow start in Q1 and stronger performance expected in the second half.
Restructuring: Recent headcount reduction of about 85 positions to cut annual expenses by over $10 million.
Cash Generation: Strong cash from operations in Q4 and expectations for improved cash generation going forward due to lower cash taxes and controlled capex.
