Adtran Holdings, Inc. · NASDAQ:ADTN
Adtran — Q3 2025 Earnings Presentation
35 slides from Adtran's earnings presentation, Nov 4, 2025
Slide 1: Adtran Holdings Investor presentation November 4, 2025
Adtran Holdings (Nasdaq: ADTN) Investor presentation November 4, 2025
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This investor presentation contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include, among other things, statements
Slide 3: Introduction and business model
Introduction and business model
Slide 4: Leading the way in the fiber everywhere era: Who is Adtran?
Leading the way in the fiber everywhere era Who is adtran? “Our vision is to enable a fully-connected world, where the power and freedom to communicate is available to everyone, everywhere, in a secure, efficient and sustainable environment.” Tom Stanton, Chairman and CEO, Adtran Global presence HQ
Slide 5: Market trends, shaping the future of connectivity
Market trends, shaping the future of connectivity Industry update Expected continued growth in scalable, secure and AI-optimized fiber networks Fiber everywhere era continues Mix of public and private funding expected to remain strong Connecting all homes, businesses, 5G sites and critical infrastru
Slide 6: Adtran is a global vendor with scale and diversity
Business model Adtran is a global vendor with scale and diversity Portfolio differentiation Customer diversity Global presence Trusted vendor Optical core to customer premise End-to-end automation & insights Enhanced security and assurance Balanced mix of national SPs, regional SPs, enterprise and I
Slide 7: Complete portfolio from the core to the customer premise
Adtran portfolio Complete portfolio from the core to the customer premise Subscriber solutions Residential/SMB: ONTs, Wi-Fi and cloud mgmt. software Business: IP/Ethernet CPE, cloud-managed routers Optical networking Optical terminals Pluggable coherent optics Client optics Open line systems (OLS) I
Slide 8: Combining fiber networking with AI-driven intelligence
Adtran portfolio Combining fiber networking with AI-driven intelligence 5G AI-driven intelligence for operations and support Subscriber experience Access domain Optical domain Subscriber solutions Cloud-managed Wi-Fi 7 Residential and business fiber CPE Data collection Data-driven insights Access an
Slide 9: Portfolio overview: Optical networking
Portfolio overview Optical networking Solution 800G pluggable transponders PQC*-ready, secure transponders 100G to 800G coherent plugs 10G to 400G client mux plugs Growth drivers Network capacity upgrades AI and cloud interconnect Securing critical infrastructure Optical terminals and pluggable opti
Slide 10: Portfolio overview: Access and aggregation
Portfolio overview Access and aggregation Solution Industry-leading density and power efficiency Industry-standard 50 Gig PON AI-driven access insights Growth drivers Fiber footprint expansion XGS-PON upgrades High-risk vendor swap outs Fiber access platforms Solution Nx100 Gig and 400 Gig aggregati
Slide 11: Portfolio overview: Subscriber solutions
Portfolio overview Subscriber solutions Solution ONTs Indoor and outdoor multi-Gig, mesh Wi-Fi 7 platforms AI-driven insights/optimization Growth drivers FTTH expansion and upgrades Upgrades to AI-optimized, cloud-managed Wi-Fi 7 Residential / SMB Solution Enterprise routing and switching Cloud-mana
Slide 12: Differentiated portfolio driving growth in edge network convergence
Network focus Converged edge RAN, Core / Metro Core / Metro Fixed line Metro / Access Customer focus Tier 1, 2, 3 CSPs enterprises Tier 1, 2 CSPs ICPs Tier 1 CSPs ICPs Tier 2, 3 CSPs Tier 2, 3 CSPs Customer premises (Residential / SMB) ✓ ✓ X ✓ X Customer premises (Ent. / Wholesale) ✓ ✓ ✓ X X Fiber a
Slide 13: Factors expected to drive long-term growth
Business model Factors expected to drive long-term growth Expansion of fiber networks Strong mix of public and private funds to build out fiber to homes, businesses, 5G sites, and critical infrastructure In-home networks upgrading to multi-Gig Wi-Fi to match access network speeds Adtran has strong p
Slide 14: Business update
Business update
Slide 15: Q3 2025 highlights
Revenue on target Non-GAAP gross margin Increasing non-GAAP operating leverage Higher Non-GAAP EPS Revenue of $279.4m, up +5% q-o-q & +23% y-o-y and at high-end of prior outlook* ($270.0m-$280.0m) Healthy demand for fiber networking solutions Strong non-GAAP gross margin Non-GAAP gross margin of 42.
Slide 16: Q3'25 revenue by category: Optical networking growth drivers
business update – Q3’25 percentage REVENUE BY CATEGORY Optical networking growth drivers Optical Networking Solutions Subscriber Solutions Access & Aggregation Note: Q3’25 Percentage revenue by category may have potential difference due to rounding. Increasing capacity demands 100 Gig at the edge; 4
Slide 17: Q3'25 revenue by category: Access and aggregation growth drivers
business update – Q3’25 percentage REVENUE BY CATEGORY Access and aggregation growth drivers Note: Q3’25 Percentage revenue by category may have potential difference due to rounding. Customers expanding and upgrading fiber access networks 10 Gig PON deployments are very strong 50 Gig PON planned in
Slide 18: Q3'25 revenue by category: Subscriber solutions growth drivers
business update – Q3’25 percentage REVENUE BY CATEGORY Subscriber solutions growth drivers Note: Q3’25 Percentage revenue by category may have potential difference due to rounding. Strong demand for multi-Gig subscriber platforms Rapid growth in 10 Gig ONTs Accelerated shift to multi-Gig Wi-Fi 7 Inc
Slide 19: Revenue by geography and customer type
Q3 2025 business update Revenue by geography and customer type Note: Q3’25 Percentage revenue by customer type may have potential difference due to rounding. US Non-US Large SPs Regional SPs Enterprise/ICPs
Slide 20: Q3 2025 business update: Financial information
Q3 2025 business update Financial information Q3 2024 Q2 2025 Q3 2025 Q3 2024 Q2 2025 Q3 2025 41.1% 41.4% 42.1% Q3 2024 Q2 2025 Q3 2025 Q4 2023 Q3 2024 Q4 2024 Q3 2024 Q2 2025 Q3 2025 Note: Potential differences may be due to rounding. Note: A reconciliation of each non-GAAP financial measure to the
Slide 21: Balance sheet and cash flow highlights
Net working capital Reduced net working capital by $13m q-o-q, and $62m y-o-y driven primarily by additional inventory control Cash* End-of-quarter cash remained strong at $101m, providing ample liquidity to support operations Non-GAAP free cash flow Free cash outflow of $5m in Q3 2025, largely driv
Slide 22: Business outlook
Business outlook
Slide 23: Outlook for Q4 2025
Outlook for Q4 2025 Prior outlook (for Q3 2025) Current outlook (for Q4 2025) Revenue $270.0m – $280.0m $275.0m – $285.0m Non-GAAP operating margin +3.0% – +7.0% +3.5% – +7.5% Note: Non-GAAP operating margin is calculated as non-GAAP operating profit divided by revenue. The Company has not provided
Slide 24: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations
Slide 25: Explanation of use of non-GAAP financial measures
Explanation of use of non-GAAP financial measures Set forth in the tables below are reconciliations of gross profit, gross margin, operating expenses, operating loss, operating margin, other expense, net loss inclusive of the non-controlling interest, net loss attributable to the Company, and loss p
Slide 26: Non-GAAP cost of revenue, gross profit and gross margin reconciliation
Non-GAAP cost of revenue, gross profit and gross margin reconciliation (1) Includes intangible amortization of backlog, inventory fair value adjustments, developed technology, customer relationships, and trade names acquired in connection with business combinations. We incur charges relating to the
Slide 27: Non-GAAP operating expense reconciliation
Non-GAAP operating expense reconciliation See footnotes on following page
Slide 28: Non-GAAP operating expense reconciliation footnotes
Non-GAAP operating expense reconciliation footnotes (1) We incur charges relating to the amortization of intangible assets and exclude these charges for purposes of calculating our non-GAAP measures. Such charges are significantly impacted by the timing and magnitude of our acquisitions. We exclude
Slide 29: Non-GAAP operating income (loss) and operating margin reconciliation
Non-GAAP operating income (loss) and operating margin reconciliation (1) Includes intangible amortization of backlog, inventory fair value adjustments, developed technology, customer relationships, and trade names acquired in connection with business combinations. We incur charges relating to the am
Slide 30: Non-GAAP other expense reconciliation
Non-GAAP other expense reconciliation (1) Includes non-cash change in fair value of equity investments held in the ADTRAN Holdings, Inc. Deferred Compensation Program for Employees. (2) Includes amortization of actuarial losses related to the Company's pension plan for employees in certain foreign c
Slide 31: Non-GAAP net income (loss) and earnings (loss) per share reconciliation
Non-GAAP net income (loss) and earnings (loss) per share reconciliation (1) Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $0.5 million and a $2.0 million effect of redemption of RNCI for the three and nine months ended September 30, 2025 and a $3.0 mill
Slide 32: Free cash flow reconciliation
Free cash flow reconciliation (1) Purchases related to capital expenditures and developed technologies.
Slide 33: Appendix
Appendix
Slide 34: 2025 Financial calendar
2025 Financial calendar Craig-Hallum Alpha Select Conference – New York November 18 Needham Tech Week Conference– New York November 20 Deutsches Eigenkapitalforum - Frankfurt, Germany November 24-25 Northland Capital Conference (Virtual) December 16
Slide 35: Thank you
Thank you - woncesece / /