ADTRAN Holdings, Inc. reports fourth quarter and full year 2025 financial results

Adtran Holdings, Inc. / US00486H1059

Adtran Holdings, Inc. / Key word(s): Quarter Results


26.02.2026 / 05:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Huntsville, Alabama, USA. — Feb. 25, 2026 — ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) (“ADTRAN Holdings” “ADTRAN” or the “Company”) today announced its unaudited financial results for the fourth quarter ended December 31, 2025. Revenue: $291.6 million, up 20.1% year-over-year. GAAP gross margin of 39.0%; Non-GAAP gross margin of 42.5%; up 213 and 122 basis points year-over-year, respectively. Operating margin: GAAP operating margin of 1.5%; non-GAAP operating margin of 6.4%. Net cash provided by operating activities of $42.2 million. GAAP diluted loss per share of $0.02; non-GAAP diluted earnings per share of $0.16. Cash and cash equivalents of $95.7 million. ADTRAN Holdings Chairman and Chief Executive Officer Tom Stanton stated, “We delivered a strong fourth quarter, with revenue above our outlook and growth across all three revenue categories. Performance reflected solid execution and sustained fiber investment across our core markets.” Mr. Stanton added, “As we look at 2026, we see solid momentum with cloud and enterprise customers, strong broadband activity in the US and increasing high-risk vendor replacement initiatives in Europe. Our priorities remain focused on expanding operating margin, cash generation, and converting the customer opportunities we are seeing across our portfolio.” Business outlook1 For the first quarter of 2026, the Company expects revenue to be within a range of $275.0 million to $295.0 million. Non-GAAP operating margin is expected to be within a range of 4.0% to 8.0%. 1 Non-GAAP operating margin (which is calculated as non-GAAP operating income (loss) divided by revenue) is a non-GAAP financial measure. The Company has provided guidance for its first quarter 2026 non-GAAP operating margin. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below. The Company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify without unreasonable effort all of the adjustments that may occur during the period due to the difficulty of predicting the timing and amounts of various items within a reasonable range. In particular, non-GAAP operating margin excludes certain items, such as acquisition related expenses, amortizations and adjustments, stock-based compensation expense, restructuring expenses, integration expenses, deferred compensation adjustments, professional fees and other expenses, and goodwill impairment, that the Company is unable to quantitatively predict. Depending on the materiality of these items, they could have a significant impact on the Company's GAAP financial results. Conference call The Company will hold a conference call to discuss its fourth quarter and full year 2025 results on Thursday, February 26, 2026, at 7:30 a.m. Central Time (2:30 p.m. Central European Time). The Company will webcast this conference call at the events and presentations section of ADTRAN Holdings, Inc. Investor Relations website at  https://events.q4inc.com/attendee/203363753 approximately 10 minutes before the start of the call, or you may dial 1-888-330-2391 (Toll-Free US) or 1-240-789-2702, and use Conference ID 8936454. An online replay of the Company’s conference call, as well as the transcript of the call, will be available on the Investor Relations site https://investors.adtran.com/shortly following the call and will remain available for at least 12 months. For more information, visit investors.adtran.com or email [e-mail]. Upcoming conference schedule March 10, 2026: Stifel 2026 One-on-One Conference – New York About Adtran ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) is the parent company of Adtran, Inc., a leading global provider of open, disaggregated networking and communications solutions that enable voice, data, video and internet communications across any network infrastructure. From the cloud edge to the subscriber edge, Adtran empowers communications service providers around the world to manage and scale services that connect people, places and things. Adtran solutions are used by service providers, private enterprises, government organizations and millions of individual users worldwide. ADTRAN Holdings, Inc. is also the majority shareholder of Adtran Networks SE, formerly ADVA Optical Networking SE (“Adtran Networks”). Find more at Adtran.com, LinkedIn and X. Cautionary note regarding forward-looking statements Statements contained in this press release and the accompanying earnings call which are not historical facts, such as those relating to future market conditions, future priorities, customer demand, (including with respect to future fiber investments, upgrade activity in the U.S. and Europe, and future customer opportunities), and ADTRAN Holdings’ strategy, outlook and financial guidance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can also generally be identified by the use of words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “will,” “may,” “could,” “look forward,” and similar expressions. In addition, ADTRAN Holdings, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such projections and other forward-looking information speak only as of the date hereof, and ADTRAN Holdings undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise, except to the extent as may be required by law. All such forward-looking statements are necessarily estimates and reflect management’s best judgment based upon current information. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which have caused and may in the future cause actual events or results to differ materially from those estimated by ADTRAN Holdings include, but are not limited to: (i) risks and uncertainties relating to our ability to remain in compliance with the covenants set forth in and satisfy the payment obligations under our credit agreement and convertible notes, to satisfy our payment obligations to Adtran Networks’ minority shareholders under the Domination and Profit and Loss Transfer Agreement between us and Adtran Networks (the “DPLTA”), and to make payments to Adtran Networks in order to absorb its annual net loss pursuant to the DPLTA; (ii) the risk of fluctuations in revenue due to lengthy sales and approval processes required by major and other service providers for new products, as well as shifting customer spending patterns; (iii) risks and uncertainties related to our inventory practices and ability to match customer demand; (iv) risks and uncertainties relating to our level of indebtedness and our ability to generate cash; (v) risks and uncertainties relating to ongoing material weaknesses in our internal control over financial reporting; (vi) risks posed by changes in general economic conditions and monetary, fiscal and trade policies, including tariffs; (vii) risks posed by potential breaches of information systems and cyber-attacks? (viii) the risk that we may not be able to effectively compete, including through product improvements and development; and (ix) the other risks set forth in our public filings made with the Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K for the year ended December 31, 2024, as amended, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025, and September 30, 2025, and our Annual Reporting on Form 10-K for the year ended December 31, 2025 to be filed with the SEC. Explanation of use of non-GAAP financial measures Set forth in the tables below under the heading “Supplemental Information” are reconciliations of gross profit, gross margin, operating expenses, operating income (loss), operating margin, other expense, net loss inclusive of the non-controlling interest, net loss attributable to the Company, and loss per share - basic and diluted, attributable to the Company, and net cash provided by operating activities, in each case as reported based on generally accepted accounting principles in the United States (“GAAP”), to non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP other expense, non-GAAP net income (loss) inclusive of the non-controlling interest, non-GAAP net income (loss) attributable to the Company, non-GAAP net earnings (loss) per share - basic and diluted, attributable to the Company, and free cash flow, respectively. Such non-GAAP measures exclude acquisition-related expenses, amortization and adjustments (consisting of intangible amortization of backlog, inventory fair value adjustments, developed technology, customer relationships, and trade names acquired in connection with business combinations), stock-based compensation expense, restructuring expenses, integration expenses, deferred compensation adjustments, goodwill impairments, professional fees and other expenses, amortization of pension actuarial losses, the tax effect of these adjustments to net loss and purchases of property, plant and equipment, and developed technologies. These measures are used by management in our ongoing planning and annual budgeting processes. Additionally, we believe the presentation of these non-GAAP measures, when combined with the presentation of the most directly comparable GAAP financial measure, is beneficial to the overall understanding of ongoing operating performance of the Company. These non-GAAP financial measures are not prepared in accordance with, or an alternative for, GAAP and therefore should not be considered in isolation or as a substitution for analysis of our results as reported under GAAP. Additionally, our calculation of non-GAAP measures may not be comparable to similar measures calculated by other companies. Published by ADTRAN Holdings, Inc. www.adtran.com For media Gareth Spence [phone] [e-mail] For investors Peter Schuman, IRC [phone] [e-mail]     Condensed Consolidated Balance Sheets (Unaudited) (In thousands)  

ASSETS		December 31, 2025				December 31, 2024
Current Assets
Cash and cash equivalents		$	95,696			$	76,021
Accounts receivable, net			210,687				178,030
Other receivables			7,046				9,775
Inventory, net			215,736				261,557
Income tax receivable			3,667				5,461
Prepaid expenses and other current assets			55,317				56,395
Short-term investments - deferred compensation			35,174				—
Assets held for sale			11,901				11,901
Total Current Assets			635,224				599,140
Property, plant and equipment, net			124,384				106,454
Goodwill			59,983				52,918
Intangibles, net			294,047				284,893
Deferred tax assets			16,481				17,826
Other non-current assets			73,352				78,128
Long-term investments			1,022				32,060
Total Assets		$	1,204,493			$	1,171,419
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable		$	167,337			$	171,825
Unearned revenue			87,541				52,701
Accrued expenses and other liabilities			33,690				34,158
Accrued wages and benefits			32,203				32,853
Deferred compensation liability			37,447				—
Income tax payable			3,642				1,936
Total Current Liabilities			361,860				293,473
Non-current revolving credit agreement outstanding			25,000				189,576
Non-current convertible senior notes, net of debt issuance costs			193,038				—
Deferred tax liabilities			27,453				30,372
Non-current unearned revenue			27,143				22,065
Non-current pension liability			6,277				8,983
Non-current deferred compensation liability			—				33,203
Non-current lease obligations			27,000				25,925
Other non-current liabilities			17,564				17,928
Total Liabilities			685,335				621,525
Redeemable Non-Controlling Interest			373,328				422,943
Equity
Common stock			802				795
Additional paid-in capital			801,269				808,913
Accumulated other comprehensive income			78,877				11,254
Retained deficit			(730,010	)			(688,813	)
Treasury stock			(5,108	)			(5,198	)
Total Equity			145,830				126,951
Total Liabilities and Equity		$	1,204,493			$	1,171,419

  Condensed Consolidated Statements of Loss (Unaudited) (In thousands, except per share amounts)  

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2025				2024				2025				2024
Revenue
Network Solutions		$	242,653			$	197,009			$	896,911			$	738,964
Services & Support			48,907				45,843				186,896				183,756
Total Revenue			291,560				242,852				1,083,807				922,720
Cost of Revenue
Network Solutions			157,472				135,861				592,141				517,220
Network Solutions - charges and inventory write-down			—				—				—				8,597
Services & Support			20,359				17,435				76,711				72,739
Total Cost of Revenue			177,831				153,296				668,852				598,556
Gross Profit			113,729				89,556				414,955				324,164
Selling, general and administrative expenses			57,409				57,013				226,275				232,918
Research and development expenses			51,842				49,314				204,276				221,458
Goodwill impairment			—				—				—				297,353
Operating Income (Loss)			4,478				(16,771	)			(15,596	)			(427,565	)
Interest and dividend income			1,703				1,631				2,321				3,058
Interest expense			(4,520	)			(4,870	)			(19,344	)			(22,053	)
Net investment (loss) gain			(574	)			(920	)			3,001				3,587
Other income (expense), net			805				687				(1,632	)			246
Income (Loss) Before Income Taxes			1,892				(20,243	)			(31,250	)			(442,727	)
Income tax expense			(3,172	)			(23,461	)			(4,993	)			(7,340	)
Net Loss		$	(1,280	)		$	(43,704	)		$	(36,243	)		$	(450,067	)
Net Income attributable to non-controlling interest (1)			2,316				2,407				9,413				9,824
Net Loss attributable to ADTRAN Holdings, Inc.		$	(3,596	)		$	(46,111	)		$	(45,656	)		$	(459,891	)
Weighted average shares outstanding – basic			79,877				79,091				79,742				78,928
Weighted average shares outstanding – diluted			79,877				79,091				79,742				78,928
Loss per common share attributable to ADTRAN Holdings, Inc. – basic		$	(0.02	)	(2)	$	(0.58	)		$	(0.52	)	(1)	$	(5.79	)
Loss per common share attributable to ADTRAN Holdings, Inc. – diluted		$	(0.02	)	(2)	$	(0.58	)		$	(0.52	)	(1)	$	(5.79	)

  (1) For the three and twelve months ended December 31, 2025 we accrued $2.3 million and $9.3 million, respectively, net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA. For the three and twelve months ended December 31, 2024, we accrued $2.4 million and $9.8 million, respectively, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA. (2) Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects $2.1 million and $4.1 million effect of redemption of RNCI for the three and twelve months ended December 31, 2025 and $0 and $3.0 million effect of redemption of RNCI for the three and twelve months ended December 31, 2024.   Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands)  

		Twelve Months Ended December 31,
		2025				2024
Cash flows from operating activities:
Net Loss		$	(36,243	)		$	(450,067	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			92,546				90,529
Goodwill impairment			—				297,353
Amortization of revolving credit facility issuance costs			1,351				3,950
Amortization of convertible notes issuance costs			441				—
Gain on investments			(4,740	)			(5,030	)
Net loss on disposal of property, plant and equipment			228				1,371
Stock-based compensation expense			10,062				15,988
Deferred income taxes			(3,847	)			5,576
Inventory write down - business efficiency program			—				4,135
Inventory reserves			(2,541	)			5,316
Change in operating assets and liabilities:
Accounts receivable, net			(18,301	)			46,108
Other receivables			5,767				10,713
Income taxes receivable			2,034				648
Inventory			64,494				79,985
Prepaid expenses other current assets and other assets			19,223				(13,445	)
Accounts payable			17,982				10,238
Accrued expenses and other liabilities			(17,967	)			4,873
Income taxes payable			(722	)			(4,670	)
Net cash provided by operating activities			129,767				103,571
Cash flows from investing activities:
Purchases of property, plant and equipment			(31,737	)			(34,501	)
Purchases of intangibles - developed technology			(37,528	)			(30,671	)
Proceeds from sales and maturities of available-for-sale investments			1,019				1,240
Purchases of available-for-sale investments			(383	)			(268	)
Payments for beneficial interests in securitized accounts receivable			(539	)			(55	)
Net cash used in investing activities			(69,168	)			(64,255	)
Cash flows from financing activities:
Tax withholdings related to stock-based compensation settlements			(1,478	)			(1,143	)
Proceeds from stock option exercises			1,829				824
Proceeds from receivables purchase agreement			—				68,556
Repayments on receivables purchase agreement			—				(83,772	)
Proceeds from draw on revolving credit agreements			49,000				26,000
Repayment of revolving credit agreements			(214,000	)			(31,000	)
Redemption of redeemable non-controlling interest			(46,575	)			(17,398	)
Payment of annual recurring compensation to non-controlling interest			(10,053	)			(10,084	)
Payment of debt issuance cost			(9,003	)			(1,994	)
Proceeds from issuance of senior convertible notes			201,250				—
Payments for capped call transactions related to convertible senior notes			(17,650	)			—
Net cash used in financing activities			(46,680	)			(50,011	)
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