ADTRAN Holdings, Inc. · NASDAQ:ADTN
ADTRAN — Q3 2026 Earnings Presentation
32 slides from ADTRAN's earnings presentation, Nov 3, 2026
Slide 1: Adtran Holdings Q3 2026 financial results
NASDAQ: ADTN Adtran Holdings Q3 2026 financial results November 3, 2026
Slide 2: Q3 2026 Financial results
Q3 2026 Financial results Third quarter 2026 2
Slide 3: Cautionary note regarding forward-looking statements
IMPORTANT INFORMATION Cautionary note regarding forward-looking statements Statements and graphics contained in this investor presentation which are not In addition, ADTRAN Holdings, through its senior management, may from time to historical facts, such as those relating to market trends, future glo
Slide 4: Cautionary note regarding forward-looking statements
IMPORTANT INFORMATION Cautionary note regarding forward-looking statements (i) risks and uncertainties relating to our ability to remain in compliance with the covenants set forth in and satisfy the payment obligations under our credit (vi) risks posed by changes in general economic conditions and m
Slide 5: AI reshaping the network
Q3 2026 · CEO COMMENTARY AI reshaping the network 1 2 3 4 5 Optical growth Hyperscale revenue Enterprise and critical European access Acting on gross continues up more than 200% infrastructure growth continues margin pressure Optical revenue +11% YoY Data center remains strong Access and Aggregation
Slide 6: Progress across our three focus areas
Q3 2026 · STRATEGIC PROGRESS Progress across our three focus areas Growth is coming from an increasingly diversified base of service providers, cloud providers and enterprise customers. SERVICE PROVIDERS CLOUD ENTERPRISE Service provider fiber Cloud and AI infrastructure Enterprise and critical netw
Slide 7: Category view
Q3 2026 · EXTERNAL REPORTING SEGMENTATION Category view Optical networking solutions Access and aggregation Subscriber solutions +11% −13% solutions YoY · +4% Q-o-Q +5% YoY · +4% Q-o-Q $114.5M revenue in Q3’26 YoY · −10% Q-o-Q $88.1M revenue in Q3’26 $78.5M revenue in Q3’26 • Growth led by hyperscal
Slide 8: Customer mix
Q3 2026 · REVENUE BY CUSTOMER TYPE Customer mix Diversification beyond the carrier base Revenue by customer type Ent/Gov/Cloud grew 44% year over year and now in millions represents 28% of revenue, up from 19.5% a year ago. Growth driven by data center interconnect with $279.4M $281.2M hyperscalers
Slide 9: Non-GAAP gross margin
Q3 2026 · PROFITABILITY Non-GAAP gross margin Quarterly result Non-GAAP gross margin Flat YoY and up 140 bps from 40.7% in Q2’26, including a percent of revenue ~2.0-point benefit from a tariff cost refund. Mix, tightening supply and component inflation remained headwinds. 42.1% 42.1% Looking ahead
Slide 10: Non-GAAP operating income
Q3 2026 · PROFITABILITY Non-GAAP operating income What moved the quarter Non-GAAP operating income Down $1.0M year over year on flat revenue and modestly in millions, with non-GAAP operating margin higher opex. Up $3.5M and 120 bps sequentially on higher gross margin. $15.1M $14.1M Operating expense
Slide 11: Non-GAAP earnings per share
Q3 2026 · PROFITABILITY Non-GAAP earnings per share Non-GAAP earnings per share Non-GAAP earnings per share Non-GAAP diluted EPS of $0.09 compares with $0.05 a year diluted, in dollars ago and $0.04 in Q2’26. $0.09 $0.05 Q3’25 Q3’26 Year over year +$0.04 Reconciliation to GAAP is in the appendix. 11
Slide 12: Balance sheet and cash flow
Q3 2026 · FINANCIALS Balance sheet and cash flow CASH FREE CASH FLOW DSO INVENTORY $64.6M −$39.4M 77 days $227.4M Plus $7.1M restricted cash; Reflecting operating cash Up from 67 days in Q2’26 Accounts payable of $79M at the end of Q2’26 flow of -$24.5M and capital on the timing of billings $179.0M
Slide 13: Q4 2026 outlook
BUSINESS OUTLOOK Q4 2026 outlook REVENUE NON-GAAP OPERATING MARGIN $272.0M – $292.0M +1.0% – +5.0% Non-GAAP operating margin is calculated as non-GAAP operating profit divided by revenue. The Company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis be
Slide 14: Business focus areas
STRATEGY Business focus areas Where we are investing for growth 14
Slide 15: Factors expected to drive long-term growth
BUSINESS MODEL Factors expected to drive long-term growth Expansion of fiber High-risk vendor Securing critical AI / cloud networks replacement networks infrastructure Ongoing fiber investment to The shift away from high-risk Governments, utilities and Surging AI infrastructure is homes, businesses
Slide 16: A complete portfolio from the core to the premises
ADTRAN PORTFOLIO A complete portfolio from the core to the premises Subscriber Optical Access & Software Professional solutions networking aggregation services • Network and • Residential/SMB • Pluggable • Broadband access subscriber insights, • Scalable in-region ONTs, Wi-Fi and coherent optics pla
Slide 17: 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 providers to high-growth adjacent markets. 1 2 3 Core-to-prem fiber Enabling distributed AI at Securing critical networks powered by AI scale infrastructure intelligence Plug
Slide 18: From the core to the customer premises
NETWORK ARCHITECTURE From the core to the customer premises Fabric AI platform Agents AI agent teams Clarity AI-driven intelligence AI-DRIVEN OPERATIONS AND SUPPORT Subscriber experience Access domain IP and optical domains PREMISES ACCESS EDGE METRO AND CORE Wi-Fi 7 Home SDG Fiber access SDX Edge r
Slide 19: Solutions that enable distributed AI at scale
CLOUD AND AI INFRASTRUCTURE SOLUTIONS Solutions that enable distributed AI at scale NETWORK EDGE CLOUD HANDOFF DATA CENTER DATA CENTER Front-end network Front-end network IP OLS DCI OSA AI compute AI compute Agentic AI 4x100G LR4 to DC sync workloads 400G Ensemble MicroMux At the customer Cloud-to-n
Slide 20: Quantum-safe networking solutions
SECURING CRITICAL INFRASTRUCTURE Quantum-safe networking solutions Network orchestration and security management CRITICAL INFRASTRUCTURE ENTERPRISE AND CLOUD Secure IP/Ethernet for critical infrastructure Secure enterprise cloud interconnect FSP 150 quantum-safe Ethernet services S-Flex quantum-safe
Slide 21: Appendix
REFERENCE Appendix Non-GAAP reconciliations 21
Slide 22: Explanation of use of non-GAAP financial measures
APPENDIX · NON-GAAP RECONCILIATIONS Explanation of use of non-GAAP financial measures Set forth in the tables below are reconciliations of cost of revenue, gross profit, gross Additionally, we believe the presentation of these non-GAAP measures, when margin, operating expenses, operating (loss) inco
Slide 23: Non-GAAP cost of revenue, gross profit and margin
APPENDIX · NON-GAAP RECONCILIATIONS Non-GAAP cost of revenue, gross profit and margin Three months ended, in $ thousands Sept. 30, 2026 June 30, 2026 Sept. 30, 2025 Total revenue 281,167 281,146 279,435 Cost of revenue 172,935 177,195 172,309 Acquisition-related expenses, amortizations and adjustmen
Slide 24: Reconciliation of non-GAAP operating expenses
APPENDIX · NON-GAAP RECONCILIATIONS Reconciliation of non-GAAP operating expenses Three months ended, in $ thousands Sept. 30, 2026 June 30, 2026 Sept. 30, 2025 Operating expenses 108,986 114,022 109,914 Acquisition-related expenses, amortizations and adjustments (1)(2)(6)(9) (1,642) (1,630) (1,898)
Slide 25: Non-GAAP operating expenses — footnotes
APPENDIX · NON-GAAP RECONCILIATIONS Non-GAAP operating expenses — footnotes (5) Includes $2.4 million in selling, general and administrative on the condensed consolidated statements of loss. This relates to expenses associated with the global ERP go-live and restructuring costs resulting from that p
Slide 26: Non-GAAP operating income and margin
APPENDIX · NON-GAAP RECONCILIATIONS Non-GAAP operating income and margin Three months ended, in $ thousands Sept. 30, 2026 June 30, 2026 Sept. 30, 2025 Total revenue 281,167 281,146 279,435 Operating loss (754) (10,071) (2,788) Acquisition related expenses, amortizations and adjustments (1) 11,492 1
Slide 27: Reconciliation of non-GAAP other expense
APPENDIX · NON-GAAP RECONCILIATIONS Reconciliation of non-GAAP other expense Three months ended, in $ thousands Sept. 30, 2026 June 30, 2026 Sept. 30, 2025 Interest and dividend income 608 397 291 Interest expense (5,253) (4,234) (5,499) Net investment gain (loss) (154) 5,274 2,186 Other income (exp
Slide 28: Reconciliation of non-GAAP net income (1 of 2)
APPENDIX · NON-GAAP RECONCILIATIONS Reconciliation of non-GAAP net income (1 of 2) Three months ended, in $ thousands Sept. 30, 2026 June 30, 2026 Sept. 30, 2025 Net loss attributable to ADTRAN Holdings, Inc. common stockholders (8,199) (10,321) (9,743) Effect of redemption of RNCI (1) (1,029) (584)
Slide 29: Reconciliation of non-GAAP net income (2 of 2)
APPENDIX · NON-GAAP RECONCILIATIONS Reconciliation of non-GAAP net income (2 of 2) Three months ended, in $ thousands (except per share amounts) Sept. 30, 2026 June 30, 2026 Sept. 30, 2025 Non-GAAP net income inclusive of non-controlling interest 8,204 5,031 5,649 Net income attributable to non-cont
Slide 30: Non-GAAP net income reconciliation footnotes
APPENDIX · NON-GAAP RECONCILIATIONS Non-GAAP net income reconciliation footnotes (1) Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - (6) Includes reduced previously accrued cost for the Company's Business Efficiency reflects a $1.0 million and $1.9 million effect of
Slide 31: Reconciliation of free cash flow (non-GAAP)
APPENDIX · NON-GAAP RECONCILIATIONS Reconciliation of free cash flow (non-GAAP) Three months ended, in $ thousands Sept. 30, 2026 June 30, 2026 Sept. 30, 2025 Net cash (used in) provided by operating activities (24,470) 25,915 12,188 Purchases of property, plant and equipment and developed technolog
Slide 32: Thank you
Thank you adtran.com 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 line on a black background A white rss symbol in a black circle Description automatically generated Description automaticall