Adtran Holdings, Inc. · NASDAQ:ADTN
Adtran — Q2 2025 Earnings Presentation
33 slides from Adtran's earnings presentation, Aug 5, 2025
Slide 1: Adtran Holdings Investor Presentation
Adtran Holdings (Nasdaq: ADTN) August 5, 2025 Investor Presentation
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 3
Slide 4: 2025 outlook
2025 outlook • Inventory conditions have materially recovered. Booking trends continue to remain strong. Spending is approaching more normalized levels. • Increasing fiber infrastructure growth due to fiber expansion, vendor consolidation, a shift away from high-risk Chinese vendors, and investments
Slide 5: Your trusted partner for the fiber everywhere era
W H O I S AD TR AN ? Your trusted partner for the fiber everywhere era $923M 50 ~3,200 “Our vision is to enable a fully- connected world, where the power and freedom to communicate FY’24 Revenue Worldwide locations Employees is available to everyone, everywhere, HQ = Huntsville, AL worldwide in a se
Slide 6: Market trends
I N D U S TR Y U P D ATE Market trends Fiber everywhere era AI infrastructure Growing importance of Data & AI transforming continues reshaping networks secure networks network operations • Mix of public and private • Applying to AI to funding expected to remain • Rapid expansion of cloud • Threat fr
Slide 7: Adtran is a global vendor with scale and diversity
BUSINESS MODEL Adtran is a global vendor with scale and diversity Portfolio Customer Global Trusted differentiation diversity presence vendor • Optical core to • Balanced mix of national • Geo-diverse supply • Secure networking customer premise SPs, regional SPs, chain specialist • End-to-end automa
Slide 8: From the core through the door
AD TR AN P O R TF O L I O From the core through the door Data Data-driven collection insights Subscriber experience Access domain Optical domain Data-driven intelligence for operations and support 5G Subscriber Solutions Access and Aggregation Solutions Optical Networking Solutions • Cloud-managed W
Slide 9: Fiber networking market forecasts
AD D R E S S AB L E M AR K E TS Fiber networking market forecasts PON OLT-ONT Metro WDM Millions Carrier Ethernet Millions Millions $5,000 $5,000 $510 $4,500 $4,500 $480 $4,000 $4,000 $450 $3,500 $3,500 $420 $3,000 $3,000 2024 2025 2026 2027 2028 $390 2024 2025 2026 2027 2028 2024 2025 2026 2027 202
Slide 10: A differentiated scaled pure play addressing the converged edge
A differentiated scaled pure play addressing the converged edge / Network focus Converged edge RAN, Core / Metro Core / Metro Fixed line Metro / Access Tier 1, 2, 3 CSPs Tier 1, 2 CSPs Tier 1 CSPs Customer focus Tier 2, 3 CSPs Tier 2, 3 CSPs enterprises ICPs ICPs Customer premises (Residential / SMB
Slide 11: Factors expected to drive long-term growth
BUSINESS MODEL Factors expected to drive long-term growth • Strong mix of public and private funds to build out fiber to homes, businesses, 5G sites, Expansion and critical infrastructure of fiber • In-home networks upgrading to multi-Gig Wi-Fi to match access network speeds networks • Adtran has st
Slide 12: Business update
Business update 12
Slide 13: Q2 2025 highlights
B U S I N E S S U P D ATE Q2 2025 highlights Revenue above Strong non-GAAP Continued Strong cash flow high-end of gross margin strength in non- guidance range* GAAP operating margin Revenue of $265.1m, Non-GAAP gross margin Non-GAAP operating Operating cash flow of up +7% q-o-q & +17% of 41.4%, lowe
Slide 14: Technology update
Q 2 2 0 2 5 B U S I N E S S U P D ATE Technology update Subscriber solutions • Strong demand in 10 Gig ONTs, 10 Gig Carrier Software Professional Ethernet CPE and multi-Gig Wi-Fi 7 platforms platforms services • Expanding customer base with Intellifi cloud- managed Wi-Fi solutions Expanding Continue
Slide 15: Revenue by segment, category and region
Q 2 2 0 2 5 B U S I N E S S U P D ATE Revenue by segment, category and region In $m Segment Category Region $265.1 $265.1 $265.1 $226.0 $45.6 $226.0 $226.0 $46.8 $91.2 $69.9 $144.7 $118.4 $83.8 Y-o-Y $179.2 $219.5 $82.4 $90.1 $107.6 $120.3 $73.7 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 $247.7
Slide 16: Well diversified across technology, markets and customer base
Q 2 2 0 2 5 B U S I N E S S U P D ATE Well diversified across technology, markets and customer base Product Categories Market Customers 18% 34% 34% 39% 45% 55% 43% 32% Optical networking solutions U.S. Large SPs Subscriber solutions Non-U.S. Regional SPs Access & aggregation solutions Enterprise / I
Slide 17: Financial information
Q 2 2 0 2 5 B U S I N E S S U P D ATE Financial information Q2 25 Revenue ($) Q2 25 Non-GAAP gross Q2 25 Non-GAAP Q2 25 Non-GAAP Q2 25 Q4 24 Non-GAAP margin operating expenses ($) operating margin diluted EPS ($) 265.1m 41.4% 101.7m 3.0% -0.01 -0.00 +7.0% q-o-q -109 bps q-o-q +6.5% q-o-q -92 bps q-o
Slide 18: Balance sheet highlights
Q 2 2 0 2 5 B U S I N E S S U P D ATE Balance sheet highlights Trade accounts receivables $m Inventories $m Rolling DSO vs. DPO development $186 $284 $167 $165 $254 $240 DSO DPO 75 74 72 Days 70 70 Q2 2024 Q1 2025 Q2 2025 Q2 2024 Q1 2025 Q2 2025 60 Trade accounts payables $m Net working capital $m 6
Slide 19: Cash flow highlights
Q 2 2 0 2 5 B U S I N E S S U P D ATE Cash flow highlights Operating cash flow $m Non-GAAP Free cash flow1 $m Cash ($m) $111 $43 $24 $106 $101 $32 $18 $20 $4 Q2 2024 Q1 2025 Q2 2025 Q2 2024 Q1 2025 Q2 2025 Q2 2024 Q1 2025 Q2 2025 Note: Potential differences may be due to rounding. 1Non-GAAP free cas
Slide 20: Outlook for Q3 2025
Outlook for Q3 2025 Previous outlook* Current outlook (for Q2 2025) (for Q3 2025) Revenue $262.5m – $267.5m $270.0m – $280.0m Non-GAAP operating margin 0% – +4% +3.0% – +7.0% *The previous outlook range of $247.5m – $262.5m was revised upward to $262.5m – $267.5m on July 16, 2025. 20 © 2025 Adtran
Slide 21: Long-term target operating model
Long-term target operating model Non-GAAP gross Non-GAAP Non-GAAP operating Gross leverage margin operating expenses margin ~42% – 43% ~29% – 31% ~12% – 13% < 1.5x Assumes ~$340m quarterly revenue Gross leverage is defined as total debt to EBITDA (Earnings Before Interest, Taxes, Depreciation, and A
Slide 22: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations 22
Slide 23: 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 24: 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 25: Non-GAAP operating expense reconciliation
Non-GAAP operating expense reconciliation See footnotes on following page 25 © 2025 Adtran
Slide 26: 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 27: 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 28: 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 29: 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 $1.5 million effect of redemption of RNCI for the three and six months ended June 30, 2025. (2) Represents the non-controlling inte
Slide 30: Free cash flow reconciliation
Free cash flow reconciliation (1) Purchases related to capital expenditures and developed technologies. 30 © 2025 Adtran
Slide 31: Appendix
Appendix 31
Slide 32: 2025 Financial calendar
2025 Financial calendar Rosenblatt Age of AI Tech Conference (Virtual) August 19 Evercore ISI Semiconductor, IT Hardware, & Networking Investor Conference – Chicago August 26 Wolfe Research TMT Conference – San Francisco September 10 32 © 2025 Adtran
Slide 33: Thank you
Thank you A black and white logo A white letter in a black circle A white x in a black circle A logo of a camera A white play button with a black background A white circle with a black background and a white cloud A white logo with a black background A white line on a black background A white rss sy