Overview

* Ribbon Q3 revenue of $215 mln missed analyst expectations, per LSEG data

* Adjusted EPS for Q3 missed analyst expectations

* Company launched Acumen AIOps platform with a significant customer win

Outlook

* Company projects Q4 2025 revenue of $230 mln to $250 mln

* Ribbon expects Q4 non-GAAP gross margin between 55% and 56%

* Company anticipates Q4 adjusted EBITDA of $42 mln to $48 mln

Result Drivers

* IP OPTICAL NETWORKS - Sales grew 11% YoY, driven by strong performance in EMEA and India

* ACUMEN AIOPS PLATFORM - Launch and deployment with a leading U.S. service provider noted as a significant innovation

* CLOUD & EDGE SALES - Growth impacted by U.S. Federal Government shutdown, but voice modernization projects continue

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $215 mln $220 mln

Revenue (6

Analysts

)

Q3 Miss $0.04 $0.06 (6

Adjusted Analysts

EPS )

Q3 EPS -$0.07

Q3 Miss $7 mln $10.30

Adjusted mln (6

Net Analysts

Income )

Q3 Net -$12 mln

Income

Q3 Miss $29 mln $31.30

Adjusted mln (5

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the communications & networking peer group is "buy"

* Wall Street's median 12-month price target for Ribbon Communications Inc ( RBBN ) is $6.00, about 32.7% above its October 21 closing price of $4.04

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)