Adtran Holdings, Inc. · NASDAQ:ADTN
Adtran — Q3 2026 Earnings Presentation
32 slides from Adtran's earnings presentation, Nov 3, 2026
Slide 1: Adtran Holdings Q3 2026 financial results
Adtran Holdings NASDAQ: ADTN Q3 2026 financial results November 3, 2026
Slide 2: Financial results Q3 2026
Financial results Q3 2026 Third quarter 2026
Slide 3: Cautionary note regarding forward-looking statements
IMPORTANT INFORMATION Cautionary note regarding forward-looking statements Statements and graphics contained in this investor presentation which are not historical facts, such as those relating to market trends, future global optical demand, future demand across end markets, future demand driver gro
Slide 4: Cautionary note regarding forward-looking statements (risk factors)
IMPORTANT INFORMATION Cautionary note regarding forward-looking statements (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 obligati
Slide 5: CEO commentary: AI reshaping the network
Q3 2026 · CEO COMMENTARY AI reshaping the network 1 Optical growth continues Optical revenue +11% YoY and +4% Q-o-Q, led by growth in the U.S. 2 Hyperscale revenue up more than 200% Data center interconnect drives growth with hyperscalers; MicroMux Quattro and LiteWave 800 on track. 3 Enterprise and
Slide 6: Progress across our three focus areas
Q3 2026 · STRATEGIC PROGRESS Progress across our three focus areas Growth is coming from an increasingly diversified base of service providers, cloud providers and enterprise customers. SERVICE PROVIDERS Service provider fiber networking Capacity expansion, vendor replacement and multi-Gig upgrades
Slide 7: External reporting segmentation: category view
Q3 2026 · EXTERNAL REPORTING SEGMENTATION Category view Optical networking solutions +11% YoY · +4% Q-o-Q $114.5M revenue in Q3’26 • Growth led by hyperscalers and large service providers in the U.S. • Demand driven by transport capacity expansion, cloud wholesale connectivity and hyperscale DCI Acc
Slide 8: Customer mix: diversification beyond the carrier base
Q3 2026 · REVENUE BY CUSTOMER TYPE Customer mix Diversification beyond the carrier base Ent/Gov/Cloud grew 44% year over year and now represents 28% of revenue, up from 19.5% a year ago. Growth driven by data center interconnect with hyperscalers and secure networking for enterprise and government;
Slide 9: Non-GAAP gross margin
Q3 2026 · PROFITABILITY Non-GAAP gross margin Quarterly result Flat YoY and up 140 bps from 40.7% in Q2’26, including a ~2.0-point benefit from a tariff cost refund. Mix, tightening supply and component inflation remained headwinds. Looking ahead Cost savings and pricing adjustments are underway; a
Slide 10: Non-GAAP operating income
Q3 2026 · PROFITABILITY Non-GAAP operating income What moved the quarter Down $1.0M year over year on flat revenue and modestly higher opex. Up $3.5M and 120 bps sequentially on higher gross margin. Operating expenses Non-GAAP opex of $104.2M vs. $103.9M in Q2’26 and $102.4M a year ago, managed agai
Slide 11: Non-GAAP earnings per share
Q3 2026 · PROFITABILITY Non-GAAP earnings per share Non-GAAP earnings per share Non-GAAP diluted EPS of $0.09 compares with $0.05 a year ago and $0.04 in Q2’26. Non-GAAP earnings per share diluted, in dollars $0.05 Q3’25 $0.09 Q3’26 Year over year +$0.04 Reconciliation to GAAP is in the appendix.
Slide 12: Balance sheet and cash flow
Q3 2026 · FINANCIALS Balance sheet and cash flow CASH $64.6M Plus $7.1M restricted cash; $79M at the end of Q2’26 FREE CASH FLOW −$39.4M Reflecting operating cash flow of -$24.5M and capital expenditures of $14.9M DSO 77 days Up from 67 days in Q2’26 on the timing of billings and collections INVENTO
Slide 13: Q4 2026 outlook
BUSINESS OUTLOOK Q4 2026 outlook REVENUE $272.0M – $292.0M NON-GAAP OPERATING MARGIN +1.0% – +5.0% Non-GAAP operating margin is calculated as non-GAAP operating profit divided by revenue. The Company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis be
Slide 14: Business focus areas
Business focus areas STRATEGY Where we are investing for growth
Slide 15: Factors expected to drive long-term growth
BUSINESS MODEL Factors expected to drive long-term growth Expansion of fiber networks Ongoing fiber investment to homes, businesses and critical infrastructure — plus multi-Gig Wi-Fi upgrades in the home. High-risk vendor replacement The shift away from high-risk vendors is accelerating — Adtran is
Slide 16: A complete portfolio from the core to the premises
ADTRAN PORTFOLIO A complete portfolio from the core to the premises Subscriber solutions • Residential/SMB ONTs, Wi-Fi and cloud management • Business IP/Ethernet CPE and cloud-managed routers Optical networking • Pluggable coherent optics • Open line systems • Client optics • Optical terminals • In
Slide 17: Three focus areas drive our growth
BUSINESS FOCUS AREAS Three focus areas drive our growth One portfolio, from the core to the premises — expanding from service providers to high-growth adjacent markets. 1 Core-to-prem fiber networks powered by AI intelligence Optical transport, fiber access and subscriber solutions under one softwar
Slide 18: From the core to the customer premises
NETWORK ARCHITECTURE From the core to the customer premises Fabric AI platform Agents AI agent teams Clarity AI-driven intelligence AI-DRIVEN OPERATIONS AND SUPPORT Subscriber experience Access domain IP and optical domains PREMISES ACCESS EDGE METRO AND CORE Home Business 5G site Wi-Fi 7 SDG SMB Wi
Slide 19: Solutions that enable distributed AI at scale
CLOUD AND AI INFRASTRUCTURE SOLUTIONS Solutions that enable distributed AI at scale NETWORK EDGE CLOUD HANDOFF DATA CENTER DATA CENTER Agentic AI workloads Ensemble At the customer premises or network edge 4x100G LR4 to 400G MicroMux™ Cloud-to-network and cloud-to-cloud connectivity Front-end networ
Slide 20: Quantum-safe networking solutions
SECURING CRITICAL INFRASTRUCTURE Quantum-safe networking solutions Network orchestration and security management CRITICAL INFRASTRUCTURE ENTERPRISE AND CLOUD Secure IP/Ethernet for critical infrastructure FSP 150 quantum-safe Ethernet services Secure enterprise cloud interconnect S-Flex quantum-safe
Slide 21: Appendix: Non-GAAP reconciliations
Appendix REFERENCE Non-GAAP reconciliations
Slide 22: Explanation of use of non-GAAP financial measures
APPENDIX · NON-GAAP RECONCILIATIONS Explanation of use of non-GAAP financial measures Set forth in the tables below are reconciliations of cost of revenue, gross profit, gross margin, operating expenses, operating (loss) income, operating margin, other income (expense), net (loss) income inclusive o
Slide 23: Non-GAAP cost of revenue, gross profit and margin
APPENDIX · NON-GAAP RECONCILIATIONS Non-GAAP cost of revenue, gross profit and margin Three months ended, in $ thousands Sept. 30, 2026 June 30, 2026 Sept. 30, 2025 Total revenue 281,167 281,146 279,435 Cost of revenue 172,935 177,195 172,309 Acquisition-related expenses, amortizations and adjustmen
Slide 24: Reconciliation of non-GAAP operating expenses
APPENDIX · NON-GAAP RECONCILIATIONS Reconciliation of non-GAAP operating expenses Three months ended, in $ thousands Sept. 30, 2026 June 30, 2026 Sept. 30, 2025 Operating expenses 108,986 114,022 109,914 Acquisition-related expenses, amortizations and adjustments (1)(2)(6)(9) (1,642) (1,630) (1,898)
Slide 25: Non-GAAP operating expenses footnotes
APPENDIX · NON-GAAP RECONCILIATIONS Non-GAAP operating expenses — footnotes (5) Includes $2.4 million in selling, general and administrative on the condensed consolidated statements of loss. This relates to expenses associated with the global ERP go-live and restructuring costs resulting from that p
Slide 26: Non-GAAP operating income and margin
APPENDIX · NON-GAAP RECONCILIATIONS Non-GAAP operating income and margin Three months ended, in $ thousands Sept. 30, 2026 June 30, 2026 Sept. 30, 2025 Total revenue 281,167 281,146 279,435 Operating loss (754) (10,071) (2,788) Acquisition related expenses, amortizations and adjustments (1) 11,492 1
Slide 27: Reconciliation of non-GAAP other expense
APPENDIX · NON-GAAP RECONCILIATIONS Reconciliation of non-GAAP other expense Three months ended, in $ thousands Sept. 30, 2026 June 30, 2026 Sept. 30, 2025 Interest and dividend income 608 397 291 Interest expense (5,253) (4,234) (5,499) Net investment gain (loss) (154) 5,274 2,186 Other income (exp
Slide 28: Reconciliation of non-GAAP net income (1 of 2)
APPENDIX · NON-GAAP RECONCILIATIONS Reconciliation of non-GAAP net income (1 of 2) Three months ended, in $ thousands Sept. 30, 2026 June 30, 2026 Sept. 30, 2025 Net loss attributable to ADTRAN Holdings, Inc. common stockholders (8,199) (10,321) (9,743) Effect of redemption of RNCI (1) (1,029) (584)
Slide 29: Reconciliation of non-GAAP net income (2 of 2)
APPENDIX · NON-GAAP RECONCILIATIONS Reconciliation of non-GAAP net income (2 of 2) Three months ended, in $ thousands (except per share amounts) Sept. 30, 2026 June 30, 2026 Sept. 30, 2025 Non-GAAP net income inclusive of non-controlling interest 8,204 5,031 5,649 Net income attributable to non-cont
Slide 30: Non-GAAP net income reconciliation footnotes
APPENDIX · NON-GAAP RECONCILIATIONS Non-GAAP net income reconciliation footnotes (1) Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $1.0 million and $1.9 million effect of redemption of RNCI for the three and nine months ended September 30, 2026. Loss pe
Slide 31: Reconciliation of free cash flow (non-GAAP)
APPENDIX · NON-GAAP RECONCILIATIONS Reconciliation of free cash flow (non-GAAP) Three months ended, in $ thousands Sept. 30, 2026 June 30, 2026 Sept. 30, 2025 Net cash (used in) provided by operating activities (24,470) 25,915 12,188 Purchases of property, plant and equipment and developed technolog
Slide 32: Thank you
Adtran Thank you COIORTORORORCEGY