https://theprpost.com/post/12449/

Ribbon Communications Q3 2025: Revenue up 6%, IP Optical Networks drive growth

Ribbon Communications Inc., a global provider of real-time communications technology and IP optical networking solutions, announced its financial results for the third quarter of 2025. The company reported year-to-date revenue growth of 6%, driven by robust demand in its IP Optical Networks segment and strategic gains in key markets.For the quarter ended September 30, 2025, Ribbon’s revenue reached $215 million, compared to $210 million during the same period in 2024. GAAP operating income came in at $3 million, improving from a $1 million loss a year earlier. Non-GAAP adjusted EBITDA totaled $29 million, slightly down from $30 million in the prior year. GAAP gross margin stood at 50.1%, while non-GAAP gross margin was 52.6%.The IP Optical Networks segment recorded an 11% year-over-year increase in sales, with particularly strong performance across EMEA and India. Year-to-date, Cloud & Edge sales rose over 8%, bolstered by steady growth among global service providers. Despite a temporary slowdown caused by the recent U.S. federal government shutdown, related modernization projects continued progressing as planned.President and CEO Bruce McClelland highlighted that the company’s momentum remains strong, citing the growing number of customers embarking on network transformation programs. He also underscored the importance of the company’s innovation pipeline, which includes the launch of the Acumen AIOps platform. This platform is designed to help service providers and enterprises manage operational complexity and accelerate the transition toward autonomous networks. McClelland added that Ribbon’s Cloud & Edge portfolio is becoming increasingly vital for customers developing voice-enabled agentic AI offerings.Chief Financial Officer John Townsend stated that Ribbon’s third-quarter financial performance was within guidance expectations, supported by solid growth and improved profitability in the IP Optical Networks division. He noted that operating expenses fell year over year despite foreign exchange pressures of around $3 million. Cash flow from operations reached $26 million, and the company ended the quarter with $77 million in cash, a $14 million increase from the previous quarter. The net debt leverage ratio was 2.2 times at quarter-end.For the fourth quarter of 2025, Ribbon Communications expects revenue between $230 million and $250 million, non-GAAP gross margins between 55% and 56%, and adjusted EBITDA ranging from $42 million to $48 million. The company reaffirmed confidence in its strategy and continued business momentum across network modernization and AI-driven communications solutions.Ribbon Communications serves global service providers, enterprises, and critical infrastructure sectors by helping them modernize and secure their networks. The company’s end-to-end solutions span core to edge, integrating cloud-native capabilities, advanced security, analytics, and IP optical networking for 5G and broadband applications. The company remains committed to environmental, social, and governance (ESG) goals and publishes an annual sustainability report for its stakeholders.