Ribbon Communications Inc. · NASDAQ:RBBN
Ribbon Communications — Q3 2025 Earnings Presentation
21 slides from Ribbon Communications's earnings presentation, Oct 22, 2025
Slide 1: Ribbon Communications Third Quarter 2025 Results
Ribbon Communications Third Quarter 2025 Results October 22, 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: Third Quarter 2025 Business Overview
Third Quarter 2025 Business Overview Bruce McClelland, President & CEO John Townsend, Executive Vice President & CFO
Slide 4: Key Financial Trends
Key Financial Trends1 Cloud & Edge Revenue IP Optical Networks Revenue Adjusted EBITDA1 Adj. EBITDA Margin % $251M ($ millions) $226M $221M $29 $210M $215M $55 $87 $193M $30 $32 $180M $181M $12 $22 $84 $6 $104 $82 $91 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 $82 $74 $78 13.4% $165 $124 Trailing Twelve Mon
Slide 5: Third Quarter and Year to Date Highlights | Consolidated
Third Quarter and Year to Date Highlights | Consolidated Q3 YTD 2025 Market Growth IP Optical Networks Growth & Profitability Revenue Revenue Strength in EMEA & India $215M $617M Service Provider Growth +2% Growth YoY +6% Growth YoY Launch of Acumen AIOps Platform Gross Margin1 Gross Margin1 53% 51%
Slide 6: Non-GAAP Segment Financial Highlights | IP Optical Networks
Non-GAAP1 Segment Financial Highlights | IP Optical Networks Revenue Growth Year over Year EMEA +47%; India +31% Adjusted EBITDA1 +11% Notable New EMEA DCI Wins ($ millions) First Provisional BEAD Award $1 Q3 39% Gross Margin1 ($6) ($4) ($8) ($4) ($5) Reflects Strength in EMEA Service Margins ($15)
Slide 7: Non-GAAP Segment Financial Highlights | Cloud & Edge
Non-GAAP1 Segment Financial Highlights | Cloud & Edge Revenue Growth Year over Year -3% Service Provider Revenue Increase +5% Adjusted EBITDA1 U.S. Government Shutdown Delays ($ millions) Q3 Market Growth New Agentic AI Wins $60 $38 $37 Acumen AIOps Launch $17 $26 $20 $28 New Network Modernization P
Slide 8: Third Quarter 2025 Key Metrics | Consolidated
Third Quarter 2025 Key Metrics | Consolidated Revenue Mix Profitability Balance Sheet Cash Flow Enterprise 34%2 53% Gross Margin1 Senior Term Loan Debt4 $344M Cash Position @ $77M Service Provider 66%2 YTD Operating Expenses1 4.7M Warrants Outstanding $26M Cash from Operations 32% Maintenance Revenu
Slide 9: Third Quarter 2025 Non-GAAP Financial Summary
Third Quarter 2025 Non-GAAP1 Financial Summary 3Q24 2Q25 3Q25 Revenue $210M $221M $215M Non-GAAP Gross Margin1 55% 52% 53% Non-GAAP Opex1 $90M $87M $89M Non-GAAP Operating 13% 12% 11% Margin1 Non-GAAP Adjusted $30M $32M $29M EBITDA1 Non-GAAP Diluted EPS1 $0.05 $0.05 $0.04 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 Agentic and Defense Secure Competitive Modernization Investment Generative AI Communications Environment ▪ Legacy TDM Voice ▪ Major voice ▪ Robust public and ▪ Industry consolidation is ▪ AI-enabled Switch replacement and modernization pr
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: Acumen AIOps Platform – Powering Autonomous Networking
Acumen AIOps Platform – Powering Autonomous Networking Design, Deployment, Management, Troubleshooting, and Optimization Agentic AI Platform Agility Efficiency Lower Cost • Seamlessly integrates AI capabilities Acumen Builder • Changes the economics of deploying and Business outcome running networks
Slide 14: 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 15: Fourth Quarter and Full Year 2025 Business Outlook
Fourth Quarter and Full Year 2025 Business Outlook 4Q24 FY24 4Q25 FY25 (Actual) (Actual) (Outlook) (Outlook) Revenue $251M $834M $230M to $250M $847M to $867M Non-GAAP Gross Margin1 58.0% 55.9% 55.0% to 56.0% 52.3% to 52.7% Non-GAAP Adjusted EBITDA1 $55M $119M $42M to $48M $109M to $115M 1. Please s
Slide 16: Appendix
Appendix &} riddon
Slide 17: Ribbon Key Revenue Statistics
Ribbon Key Revenue Statistics USD Millions except for percentages 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 3Q25 GAAP Revenue Product 88 99 112 148 447 82 115 110 Service 92 93 98 103 387 99 106 105 Total Revenue 180 193 210 251 834 181 221 215 % of Total Revenue: GAAP Revenue Mix Product 49% 51% 53% 59% 5
Slide 18: 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 3Q Revenue $102M $111M $128M $165M $505M $108M $137M $124M vs Prior Year (11%) (12%) +11% +35% +6% +6% +24% (3%) Non-GAAP Gross 66% 66% 68% 68% 67% 63% 62% 62% Margin1 Non-GAAP Adjusted $17M $26M $38M $6
Slide 19: 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 3Q Revenue $78M $82M $82M $87M $329M $74M $84M $91M vs Prior Year +9% (4%) (6%) (17%) (6%) (6%) +2% +11% Non-GAAP Gross 41% 39% 36% 40% 39% 28% 36% 39% Margin1 Non-GAAP Adjusted ($6M) ($4M)
Slide 20: Third Quarter 2025 GAAP Financial Summary
First ThirdQuarter Quarterand Full 2025 YearFinancial GAAP 2024 GAAP Financial Summary Summary 3Q24 2Q25 3Q25 Revenue $210M $221M $215M Gross Margin 52% 50% 50% Operating Expenses $111M $105M $105M Income (loss) from ($1M) $4M $3M operations Other (expense) income, ($11M) ($13M) ($12M) net Net incom
Slide 21: 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 21
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