Slide 1: Ribbon Communications Second Quarter 2025 Results
Ribbon Communications Second Quarter 2025 Results July 23, 2025 © 2025 Ribbon | Public 1
Slide 2: Note Regarding Forward-Looking Statements and Non-GAAP Financial Measures
Note Regarding Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to a number of risks and uncertainties. All statements other than state
Slide 3: Second Quarter 2025 Business Overview
Second Quarter 2025 Business Overview Bruce McClelland, President & CEO John Townsend, Executive Vice President & CFO
Slide 4: Second Quarter and Year to Date Highlights | Consolidated
Second Quarter and Year to Date Highlights | Consolidated Q2 1H 2025 Market Growth Revenue Revenue North America Service Providers $221M $402M Enterprise and Government APAC Tier 1 Service Providers +15% Growth YoY +8% Growth YoY Gross Margin Gross Margin 52% 50% Customer Highlights IP Edge Routing
Slide 5: Key Financial Trends
Key Financial Trends1 Cloud & Edge Revenue IP Optical Networks Revenue Adjusted EBITDA1 Adj. EBITDA Margin % $251M ($ millions) $226M $221M $32 $210M $55 $203M $87 $193M $30 $180M $181M $12 $22 $84 $6 $104 $82 $87 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 $82 $78 $74 14.4% $165 $137 Trailing Twelve Month Adjust
Slide 6: Non-GAAP Segment Financial Highlights | Cloud & Edge
Non-GAAP1 Segment Financial Highlights | Cloud & Edge Revenue Growth +24% Product & Professional Services Growth +47% Year over Year Adjusted EBITDA1 Service Provider Growth +28% Year over Year ($ millions) Higher mix of HW and Professional Services Q2 Market Growth $60 N. America +38% Year over Yea
Slide 7: Non-GAAP Segment Financial Highlights | IP Optical Networks
Non-GAAP1 Segment Financial Highlights | IP Optical Networks Revenue Growth +2% Overall Revenue Increase Year over Year Adjusted EBITDA1 (Revenue up +5% Year over Year excluding E. Europe) ($ millions) Revenue - Regional Trends ($5) Q2 U.S. +46% Year over Year India +42% Year over Year ($6) ($4) ($8
Slide 8: Second Quarter 2025 Key Metrics | Consolidated
Second Quarter 2025 Key Metrics | Consolidated Revenue Mix Profitability Balance Sheet Cash Flow Enterprise 34%2 52% Gross Margin1 Senior Term Loan Debt4 $347M Cash Position @ $62M Service Provider 66%2 YTD Operating Expenses1 4.7M Warrants Outstanding ($1M) Cash from Operations 31% Maintenance Reve
Slide 9: Second Quarter 2025 Non-GAAP Financial Summary
Second Quarter 2025 Non-GAAP1 Financial Summary 2Q24 1Q25 2Q25 Revenue $193M $181M $221M Non-GAAP Gross Margin1 54% 49% 52% Non-GAAP Opex1 $86M $86M $87M Non-GAAP Operating 9% 1% 13% Margin1 Non-GAAP Adjusted $22M $6M $32M EBITDA1 Non-GAAP Diluted EPS1 $0.05 ($0.03) $0.05 1. Please see the discussio
Slide 10: Key Market Trends & 2025 Outlook
Key Market Trends & 2025 Outlook
Slide 11: 2025 Operating Environment
2025 Operating Environment Federal and Shifting Network Fiber Economic Defense Secure Competitive Modernization Investment Trends Communications Environment ▪ Legacy TDM Voice ▪ Major voice ▪ Robust public and ▪ Industry consolidation is ▪ Inflation pressures easing Switch replacement and modernizat
Slide 12: Continued Strength in Key Markets
Continued Strength in Key Markets • Voice Network Modernization • Network Automation and Analytics Mobile and • Adoption of Cloud Technologies Fiber Service • Middle Mile & Backhaul Refresh for 5G & Fixed B/B Providers • Optical Backbone Refresh and Expansion • Expanding DCI Inroads Enterprise & • U
Slide 13: NPT 2714 – A Game Changer For IP Aggregation
NPT 2714 – A Game Changer For IP Aggregation Innovative Orthogonal Architecture for Modular Aggregation Routers, Merges the Best from Modular & Fixed Routers • True Pay As You Grow: In service switch capacity upgrade; 7.2Tbps - 14.4Tbps • Investment Protection: Architected to support independent upg
Slide 14: Third Quarter and Full Year 2025 Business Outlook
Third Quarter and Full Year 2025 Business Outlook 3Q24 FY24 3Q25 FY25 (Actual) (Actual) (Outlook) (Unchanged) Revenue $210M $834M $213M to $227M $870M to $890M Non-GAAP Gross Margin1 55.3% 55.9% 53.5% to 54.0% 54.0% to 55.0% Non-GAAP Adjusted EBITDA1 $30M $119M $28M to $34M $130M to $140M 1. Please
Slide 15: Appendix
Appendix &} riddon
Slide 16: Ribbon Key Revenue Statistics
Ribbon Key Revenue Statistics USD Millions except for percentages 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 Revenue Product 88 99 112 148 447 82 115 Service 92 93 98 103 387 99 106 Total Revenue 180 193 210 251 834 181 221 % of Total Revenue: Revenue Mix Product 49% 51% 53% 59% 54% 45% 52% Services 51% 49%
Slide 17: Quarterly Non-GAAP Segment Trend | Cloud & Edge
Quarterly Non-GAAP1 Segment Trend | Cloud & Edge CLOUD & EDGE – 2024 2025 1Q 2Q 3Q 4Q FY24 1Q 2Q Revenue $102M $111M $128M $165M $505M $108M $137M vs Prior Year (11%) (12%) +11% +35% +6% +6% +24% Non-GAAP 66% 66% 68% 68% 67% 63% 62% Gross Margin1 Non-GAAP Adjusted $17M $26M $38M $60M $141M $20M $37M
Slide 18: Quarterly Non-GAAP Segment Trend | IP Optical Networks
Quarterly Non-GAAP1 Segment Trend | IP Optical Networks IP OPTICAL NETWORKS – 2024 2025 1Q 2Q 3Q 4Q FY24 1Q 2Q Revenue $78M $82M $82M $87M $329M $74M $84M vs Prior Year +9% (4%) (6%) (17%) (6%) (6%) +2% Non-GAAP 41% 39% 36% 40% 39% 28% 36% Gross Margin1 Non-GAAP Adjusted ($6M) ($4M) ($8M) ($4M) ($22
Slide 19: Second Quarter 2025 GAAP Financial Summary
First SecondQuarter and2025 Quarter Full Year GAAP2024 GAAP Financial Financial Summary Summary 2Q24 1Q25 2Q25 Revenue $193M $181M $221M Gross Margin 51% 45% 50% Operating Expenses $100M $102M $105M Income (loss) from ($2M) ($20M) $4M operations Other (expense) income, ($13M) ($7M) ($13M) net Net in
Slide 20: Thank You
Refer to the supplemental schedules including financial results, key stats, and non-GAAP reconciliations on the investor relations website investors.ribboncommunications.com Thank You © 2025 Ribbon | Public 20