Ribbon Communications Inc. (Nasdaq: RBBN), a leading supplier of real-time communications technology and IP optical networking solutions, today announced its financial results for the second quarter of 2025. Ribbon Communications is dedicated to assisting the world's largest service providers, enterprises, and critical infrastructure operators in modernizing and safeguarding their networks and services.

Second Quarter 2025 Highlights

Financial Highlights¹:

Revenue was $221 million, compared to $193 million for the second quarter of 2024 GAAP Operating Income was $4 million, compared to a loss of $2 million for the second quarter of 2024 Non-GAAP Adjusted EBITDA was $32 million, compared to $22 million for the second quarter of 2024 GAAP Gross Margin was 49.6%, compared to 50.8% for the second quarter of 2024 Non-GAAP Gross Margin was 52.1%, compared to 54.4% for the second quarter of 2024

"I am very pleased with our strong financial performance in the second quarter with both revenue and earnings exceeding our growth projections, resulting in a successful first half of the year. Demand in the North American market was strong across both Service Provider and Enterprise market verticals as we continue to win the largest industry voice transformation opportunities. And we had good momentum in our IP Optical business in India and North America this quarter supporting fiber and mobile network expansion," stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. "Looking ahead, the demand picture remains robust with good visibility, and we continue to anticipate a seasonally stronger second half of the year."

John Townsend, Chief Financial Officer, added, "It was great to see our business momentum reflected in our second quarter results. Revenue increased 15% year over year to $221 million, exceeding guidance, and Adjusted EBITDA increased 47% year over year to $32 million, at the top end of our guidance. In the quarter, we announced a new stock repurchase program and expect to use a portion of our free cash flow over the next several years to repurchase up to $50 million of our common stock. Our cash position remained solid, closing the quarter at $62 million including $2.3 million of stock repurchases. In addition, the new U.S. spending bill recently approved by Congress includes corporate tax changes that are expected to result in lower cash tax payments in the second half, which should further improve our cash flow this year."

Business Highlights:

Ribbon Announces $50 Million Share Repurchase Program Ribbon Showcases AI-Enabled Optical Innovation at OFC NPT 2714 Router and Apollo ADM 400/800 Optical Transport recognized by Lightwave Kerala State Leverages Ribbon for its Kerala Fiber Optic Network (KFON) Deployment | Ribbon Communications Government of Kerala delivers high speed internet to rural India Business Outlook2
For the third quarter of 2025, the Company projects revenue of $213 million to $227 million. Non-GAAP gross margin is projected in a range of 53.5% to 54.0%. Adjusted EBITDA is projected in a range of $28 million to $34 million.

Full Year 2025 projections remain unchanged. The Company's outlook is based on current indications for its business, which are subject to change.

2 GAAP earnings guidance is not provided. Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about the non-GAAP measures in the section entitled "Discussion of Non-GAAP Financial Measures" in the attached schedules.