Adtran Holdings, Inc. · NASDAQ:ADTN
Adtran — Q2 2026 Earnings Presentation
30 slides from Adtran's earnings presentation, Aug 4, 2026
Slide 1: Adtran Holdings Q2 2026 financial results
NASDAQ: ADTN Adtran Holdings Q2 2026 financial results August 4, 2026
Slide 2: Financial results
Financial results Q2 26 o a ° ° ° —— Z ”
Slide 3: Cautionary note regarding forward-looking statements
I M P O R TAN T I N F O RM AT I O N Cautionary note regarding forward-looking statements Statements and graphics contained in this investor presentation which are not historical facts, such as (ii) the risk of fluctuations in revenue due to lengthy sales and approval processes required by major and
Slide 4: Key messages
Q 2 2 0 2 6 · C E O C O M M E N TAR Y Key messages 1 2 3 4 5 Global optical Expanding Second-quarter GM% impacted by Refinancing demand remains engagements with revenue reflects customer and strengthens the strong pluggable optics single project shift product mix balance sheet Driven by increasing G
Slide 5: Category view
Q 2 2 0 2 6 · E X T E R N AL R E P O R T I N G S E G M E N T AT I O N Category view Optical networking solutions Access and aggregation solutions Subscriber solutions +22% YoY +13% Q-o-Q -5% YoY -4% Q-o-Q +1% YoY -14% Q-o-Q $109.7M revenue in Q2'26 $86.9M revenue in Q2'26 $84.5M revenue in Q2'26 Gro
Slide 6: Customer mix
Q2 2026 · REVENUE BY CUSTOMER TYPE Customer mix Revenue by customer type Diversification beyond the carrier base in millions Enterprise/ICP grew 47% year over year and now $281.1M $265.1M represents 25.4% of revenue, up from 18.3% a year ago. Growth driven by data center interconnect with hyperscale
Slide 7: Non-GAAP gross margin
Q 2 2 0 2 6 · P R O F I TAB I L I TY Non-GAAP gross margin Non-GAAP gross margin Quarterly result percent of revenue Product and customer mix negatively impacted non-GAAP 41.4% 40.7% gross margins during the quarter. Looking ahead Long-term target margin of 42-43% remains intact Q2'25 Q2'26 Year ove
Slide 8: Non-GAAP operating income
Q 2 2 0 2 6 · P R O F I TAB I L I TY Non-GAAP operating income Non-GAAP operating income What moved the quarter in millions, with non GAAP operating margin Increased year-over-year operating income with increased $10.6M scale. Sequential decline due to product and customer mix. 3.8% of revenue $8.0M
Slide 9: Non-GAAP earnings per share
Q 2 2 0 2 6 · P R O F I TAB I L I TY Non-GAAP earnings per share Non-GAAP earnings per share Non-GAAP earnings per share diluted, in dollars Non-GAAP EPS of $0.04 compares with ($0.00) a year ago, earned on increased revenue compared to a year ago. $0.04 ($0.00) Q2'25 Q2'26 Year over year +$0.04 Rec
Slide 10: Balance sheet and cash flow
Q 2 2 0 2 6 · F I N AN C I AL S Balance sheet and cash flow $253M $106M $18M $245M DSO DPO $227M $88M $79M 70 $9M 68 67 66 65 57 -$3M Q2 25 Q1 26 Q2 26 Q2 25 Q1 26 Q2 26 Q2 25 Q1 26 Q2 26 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Net working capital Cash Non-GAAP free cash flow Cash conversion metrics Lower by
Slide 11: Credit facility refinancing
Q 2 2 0 2 6 · F I N AN C I N G Credit facility refinancing Improved terms from premier financing partners demonstrate long-term confidence in the Adtran model. CAP ACI T Y PRI CI NG MATU RI T Y $350 million ~200 bps lower Extended to 2031 Replaces the prior facility with full capacity Directly reduc
Slide 12: Q3 2026 outlook
BUSINESS OUTLOOK Q3 2026 outlook REVENUE NON- G AAP OPERAT I N G MAR GI N $275.0M – $295.0M +1.5% – +5.5% 12 © 2026 Adtran
Slide 13: Business focus areas
Business focus areas o a ° ° ° Z Sa CEB ” . *
Slide 14: Factors expected to drive long-term growth
BUSINESS MODEL Factors expected to drive long-term growth Expansion of fiber networks High-risk vendor replacement Securing critical networks AI / cloud infrastructure Ongoing fiber investment to homes, The shift away from high-risk Governments, utilities and Surging AI infrastructure is driving bus
Slide 15: Complete portfolio from the core to the customer premises
AD T R AN P O R T F O LI O Complete portfolio from the core to the customer premises SUBSCRIBER OPTICAL ACCESS & SOFTWARE PROFESSIONAL SOLUTIONS NETWORKING AGGREGATION SERVICES Residential/SMB ONTs, Wi-Fi Pluggable coherent optics Broadband access Network and subscriber Scalable in-region services a
Slide 16: 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 to provider to high-growth adjacent markets. 1 2 3 Core-to-prem fiber networks Enabling distributed AI at Securing critical powered by AI intelligence scale infrastructure Op
Slide 17: From the core to the customer premises
N E T W O R K AR C H I T E C T U R E From the core to the customer premises 17 © 2026 Adtran
Slide 18: Solutions that enable distributed AI at scale
CLOUD AND AI INFRASTRUCTURE SOLUTIONS Solutions that enable distributed AI at scale IP OLS Cloud interconnect – DCI Agentic AI Network to cloud front-end workloads interconnect network customer premises 4x100G LR4 to 400G or network edge for cloud handoff Intra-rack: DC sync scale up Ensemble MicroM
Slide 19: Quantum-safe networking solutions
S E C U R I N G C R I T I C AL I N F R AS T R U C T U R E Quantum-safe networking solutions Network orchestration and security management Secure enterprise cloud interconnect Fiber monitoring ALM FSP 150 S-Flex Quantum-safe Ethernet ALM services Quantum-safe pluggable transponders Fiber sensing and
Slide 20: Appendix
Appendix Non-GAAP reconciliations 20
Slide 21: Explanation of use of non-GAAP financial measures
AP P E N D I X · N O N - G AAP R E C O N C I LI AT I O N S 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 (l
Slide 22: Reconciliation of non-GAAP cost of revenue, gross profit and gross margin
APPEN D I X · N O N - G AAP R EC O N C I LI ATI O N S Reconciliation of non-GAAP cost of revenue, gross profit and gross margin Three Months Ended June 30, March 31, June 30, in $ thousands 2026 2026 2025 Total Revenue 281,146 286,086 265,068 Cost of Revenue 177,195 173,098 166,144 (1) Acquisition-r
Slide 23: Reconciliation of non-GAAP operating expenses
APPEN D I X · N O N - G AAP R EC O N C I LI ATI O N S Reconciliation of non-GAAP operating expenses Three Months Ended June 30, March 31, June 30, in $ thousands 2026 2026 2025 Operating Expenses 114,022 106,613 112,242 (1) (2) (6) (9) Acquisition-related expenses, amortizations and adjustments (1,6
Slide 24: Reconciliation of non-GAAP operating expenses
APPEN D I X · N O N - G AAP R EC O N C I LI ATI O N S Reconciliation of non-GAAP operating expenses (5) Included in selling, general and administrative and research and development expenses on the condensed consolidated statements of loss. Includes $0.1 million in one-time professional fees and busi
Slide 25: Reconciliation of non-GAAP operating (loss) income and operating margin
APPEN D I X · N O N - G AAP R EC O N C I LI ATI O N S Reconciliation of non-GAAP operating (loss) income and operating margin Three Months Ended June 30, March 31, June 30, in $ thousands 2026 2026 2025 Total Revenue 281,146 286,086 265,068 Operating (Loss) Income (10,071) 6,375 (13,318) (1) Acquisi
Slide 26: Reconciliation of non-GAAP other income (expense)
APPEN D I X · N O N - G AAP R EC O N C I LI ATI O N S Reconciliation of non-GAAP other income (expense) Three Months Ended June 30, March 31, June 30, in $ thousands 2026 2026 2025 Interest and dividend income 397 300 201 Interest expense (4,234) (4,241) (4,564) Net investment gain (loss) 5,274 (850
Slide 27: Reconciliation of non-GAAP net (loss) income
APPEN D I X · N O N - G AAP R EC O N C I LI ATI O N S Reconciliation of non-GAAP net (loss) income Three Months Ended June 30, March 31, June 30, in $ thousands (except per share amounts) 2026 2026 2025 Net Loss attributable to ADTRAN Holdings, Inc. Common shareholders (10,321) (1,020) (19,037) (1)
Slide 28: Reconciliation of non-GAAP net (loss) income — footnotes
APPEN D I X · N O N - G AAP R EC O N C I LI ATI O N S Reconciliation of non-GAAP net (loss) income — footnotes (1) Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $0.6 million and $0.9 million effect of redemption of RNCI for the three and six months ende
Slide 29: Reconciliation of non-GAAP net cash provided by operating activities
APPEN D I X · N O N - G AAP R EC O N C I LI ATI O N S Reconciliation of non-GAAP net cash provided by operating activities Three Months Ended June 30, March 31, June 30, in $ thousands 2026 2026 2025 Net Cash provided by operating activities 25,915 12,670 32,160 (1) Purchases of property, plant and
Slide 30: Unlocking the future network
Unlocking the future network