Overview

* Ribbon Q2 revenue rises 15% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EBITDA for Q2 beats estimates, reaching $32 mln, per LSEG data

* Co announced $50 mln share repurchase program in the qtr

Outlook

* Ribbon projects Q3 2025 revenue of $213 mln to $227 mln

* Company expects Q3 non-GAAP gross margin of 53.5% to 54.0%

* Ribbon sees Q3 adjusted EBITDA between $28 mln and $34 mln

* Full-year 2025 projections remain unchanged

Result Drivers

* STRONG DEMAND - Robust demand in North American Service Provider and Enterprise markets drove revenue growth, per CEO Bruce McClelland

* IP OPTICAL MOMENTUM - Significant momentum in IP Optical business in India and North America supported fiber and mobile network expansion

* PROFITABILITY IMPROVEMENT - GAAP operating income reached $4 mln, compared to a loss in prior year

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $221 mln $213.40

Revenue mln (6

Analysts

)

Q2 Meet $0.05 $0.05 (6

Adjusted Analysts

EPS )

Q2 EPS -$0.06

Q2 Beat $10 mln $9.76

Adjusted mln (6

Net Analysts

Income )

Q2 Net -$11 mln

Income

Q2 Beat $32 mln $29.60

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 32.8% above its July 22 closing price of $4.03

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

(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.)