Ribbon Communications Inc. Reports Third Quarter 2026 Financial Results
Revenue increased 14% sequentially and Net Income improved by $18M;
further significant gains expected in 4Q 2026
IP Optical Networks Revenue increased 17% QoQ led by new wins in North America
Cloud and Edge Revenue increased 11% QoQ led by U.S. Tier 1 Network Modernization
Growing Pipeline of Data Center and AI-related Opportunities
PLANO, Texas, Oct. 27, 2026 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a global leader in real-time communications technology, IP routing, and optical networking solutions, today announced its financial results for the third quarter of 2026.
Third Quarter 2026 Highlights
Financial Results¹:
"We had meaningful sequential increases in revenue and profitability in both of our operating segments again in the third quarter, consistent with our second quarter results commentary. The strong IP Optical Networks bookings trend in the first half of the year translated into a record third quarter sales for the business, growing 5% year over year and included two new U.S. Tier 2 Internet Service Provider customers," stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. "We are also encouraged by increased activity in the Cloud and Edge segment with Service Provider revenue growing 15% sequentially supported by a 50% increase in sales to our largest customer, along with further growth in the Enterprise and Government market segments. This progress clearly supports the second-half improvement we expected, with positive trends in both operating segments and stronger results projected for the fourth quarter. Looking ahead to 2027, we see further growth drivers with the adoption of voice-enabled Enterprise AI applications, new solutions to mitigate AI-generated voice-phishing cyber-attacks, and broader demand for data center fiber infrastructure."
Rick Marmurek, Chief Financial Officer of Ribbon Communications, remarked, "Our performance improved significantly in the third quarter, with revenue increasing 14% and Adjusted EBITDA more than doubling to $27 million from $12 million in the second quarter. At the same time, Non-GAAP operating expenses remained at $88 million. We continue to focus on expanding margins, maintaining strong cost discipline, and further strengthening our balance sheet."
Three months ended
Nine months ended
September 30,
September 30,
In millions, except per share amounts
2026
2025
2026
2025
GAAP Revenue
$ 219
$ 215
$ 574
$ 617
GAAP Net income (loss)
$ (9)
$ (12)
$ (70)
$ (49)
Non-GAAP Net income (loss)
$ 12
$ 7
$ (1)
$ 12
Non-GAAP Adjusted EBITDA
$ 27
$ 29
$ 30
$ 67
GAAP diluted earnings (loss) per share
$ (0.05)
$ (0.07)
$ (0.40)
$ (0.28)
Non-GAAP diluted earnings (loss) per share
$ 0.07
$ 0.04
$ -
$ 0.07
Weighted average shares outstanding basic
179
177
177
176
Weighted average shares outstanding diluted
180
181
180
181
1 Please see the reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures and additional information about non-GAAP measures in the section entitled "Discussion of Non-GAAP Financial Measures" in the attached schedules.
Business Highlights:
Business Outlook 2
For the fourth quarter of 2026, the Company projects revenue of $233 million to $247 million. Non-GAAP gross margin is projected in a range of 53.5% to 54.5%. Adjusted EBITDA is projected in a range of $40 million to $47 million.
The Company's outlook is based on current indications for its business, which are subject to change.
2 GAAP earnings guidance is not provided. Please see the reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures and additional information about the non-GAAP measures in the section entitled "Discussion of Non-GAAP Financial Measures" in the attached schedules.
Upcoming Conference Schedule
Conference Call and Webcast Information
Ribbon Communications will host a conference call to discuss the Company's financial results at 4:30 p.m. ET on Tuesday, October 27, 2026.
Dial-in Information:
US/Canada: 877-407-2991
International: 201-389-0925
Instant Telephone Access: Call me™
A live (listen-only) webcast and replay will be available on the Company's Investor Relations website at investors.ribboncommunications.com.
Investor Contact
+1 (978) 614-8050
[email protected]
Media Contact
Catherine Berthier
+1 (646) 741-1974
[email protected]
About Ribbon
Ribbon Communications (Nasdaq: RBBN) is a global provider of voice communications software, IP routing, and optical networking to mobile and wireline service providers, enterprises, critical infrastructure and defense sectors. We support our customers' Path to Autonomous Networks by leveraging the latest AIOps automation platforms and Agentic AI technologies, helping them deliver better customer experiences, reduce operational costs, and achieve sustainable growth. To learn more about Ribbon, visit rbbn.com.
Important Information Regarding Forward-Looking Statements
This release 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 statements of historical facts contained in this release, including without limitation, statements regarding Company's projected financial results for the fourth quarter 2026 and beyond; expected customer bookings, spend and timing; beliefs about the Company's business strategy, including new product introductions such as the Acumen AIOps platform; beliefs about the accelerating adoption of AI and the shift towards autonomous networking; and the timing of customer network transformation projects, are forward-looking statements. Without limiting the foregoing, the words "anticipates", "believes", "could", "estimates", "expects", "expectations", "intends", "may", "plans", "projects" and other similar language, whether in the negative or affirmative, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.
Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are unknown and/or difficult to predict and that may cause the Company's actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, unpredictable fluctuations in quarterly revenue and operating results; the impact of restructuring and cost-containment activities; impacts from new tariffs, the potential modification of, or loss of benefits under, the USMCA and other trade restrictions or taxes on our products; supply chain disruptions resulting from component availability; impacts from the wars in the Middle East and Ukraine and related economic volatility and uncertainty resulting therefrom; the impact of military call-ups of our employees in Israel; material litigation; the impact of fluctuations in interest rates; material cybersecurity and data intrusion incidents, including any security breaches resulting in the theft, transfer, or unauthorized disclosure of customer, employee, or company information; our ability to comply with applicable domestic and foreign information security and privacy laws, regulations and technology platform rules or other obligations related to data privacy and security; failure to compete successfully against telecommunications equipment and networking companies; failure to grow our customer base or generate recurring business from our existing customers; credit risks; the timing of customer purchasing decisions and our recognition of revenues; macroeconomic conditions, including inflation; our ability to adapt to rapid technological and market changes; our ability to generate positive returns on our research and development; our ability to protect our intellectual property rights and obtain necessary licenses; our ability to maintain partner, reseller, distribution and vendor support and supply relationships; the potential for defects in our products; risks related to the terms of our Credit Agreement, including our ability to comply with the maximum net leverage ratio, our ability to obtain future waivers or amendments to the Credit Agreement, and increases in the applicable interest margin; higher risks in international operations and markets; currency fluctuations; unanticipated adverse changes in legal, regulatory or tax laws; future accounting pronouncements or changes in our accounting policies; and/or failure or circumvention of our controls and procedures. We therefore caution you against relying on any of these forward-looking statements.
These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect the Company's business and results from operations. Additional information regarding these and other factors can be found in the Company's reports filed with the Securities and Exchange Commission, including, without limitation, its Form 10-K for the year ended December 31, 2025. Any forward-looking statement made by the Company in this release speaks only as of the date on which this release was first issued. The Company undertakes no obligation to update any forward-looking statement publicly or otherwise, whether as a result of new information, future developments or otherwise, except as required by law.
Discussion of Non-GAAP Financial Measures
The Company's management uses several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of its business, making operating decisions, planning and forecasting future periods, and determining payments under compensation programs. The Company considers the use of non-GAAP financial measures helpful in assessing the core performance of its continuing operations and when planning and forecasting future periods. The Company's annual financial plan is prepared on a non-GAAP basis and is approved by its board of directors. In addition, budgeting and forecasting for revenue and expenses are conducted on a non-GAAP basis, and actual results on a non-GAAP basis are assessed against the annual financial plan. The Company defines continuing operations as the ongoing results of its business adjusted for certain expenses and credits, as described below. The Company believes that providing non-GAAP information to investors allows them to view the Company's financial results in the way its management views them and helps investors to better understand the Company's core financial and operating performance and evaluate the efficacy of the methodology and information used by its management to evaluate and measure such performance.
While the Company's management uses non-GAAP financial measures as tools to enhance its understanding of certain aspects of the Company's financial performance, management does not consider these measures to be a substitute for, or superior to, GAAP measures. In addition, the Company's presentations of these measures may not be comparable to similarly titled measures used by other companies. These non-GAAP financial measures should not be considered alternatives for, or in isolation from, the financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures. In particular, many of the adjustments to the Company's financial measures reflect the exclusion of items that are recurring and will be reflected in its financial results for the foreseeable future.
Stock-Based Compensation
The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. The Company believes that presenting non-GAAP operating results that exclude stock-based compensation provides investors with visibility and insight into its management's method of analysis and its core operating performance.
Amortization of Acquired Technology (including software licenses); Amortization of Acquired Intangible Assets
Amortization amounts are inconsistent in frequency and amount and are significantly impacted by the timing and size of acquisitions. Amortization of acquired technology is reported separately within Cost of revenue and Amortization of acquired intangible assets is reported separately within Operating expenses. These items are reported collectively as Amortization of acquired intangible assets in the accompanying reconciliations of non-GAAP and GAAP financial measures. The Company believes that excluding non-cash amortization of these intangible assets facilitates the comparison of its financial results to its historical operating results and to other companies in its industry as if the acquired intangible assets had been developed internally rather than acquired.
Litigation Costs
In connection with certain ongoing litigation where Ribbon is the defendant (as described in the Company's Commitments and Contingencies footnotes in its Form 10-Qs and Form 10-Ks filed with the SEC), the Company has incurred litigation costs beginning in 2023. These costs are included as a component of general and administrative expense. The Company believes that such costs are not part of its core business or ongoing operations, are unplanned, and generally are not within its control. Accordingly, the Company believes that excluding litigation costs related to these specific legal matters facilitates the comparison of the Company's financial results to its historical operating results and to other companies in its industry.
Cybersecurity Incident
The Company has recorded expenses associated with responding to and remediating a cybersecurity incident, including costs for external legal services, cybersecurity experts, and IT restoration activities. The Company believes that excluding these expenses facilitates the comparison of its financial results to its historical operating performance and to other companies in its industry, as these costs are non‑recurring in nature and are not associated with future revenue streams or ongoing operational benefits.
Acquisition-, Disposal- and Integration-Related
The Company considers certain acquisition-, disposal- and integration-related costs to be unrelated to the organic continuing operations of the Company and its acquired businesses. Such costs are generally not relevant to assessing or estimating the long-term performance of the acquired assets. In 2025, the Company recorded expense for legal and professional fees associated with contemplated corporate development activities. The Company excludes such acquisition-, disposal- and integration-related costs to allow more accurate comparisons of its financial results to its historical operations and the financial results of less acquisitive peer companies and allows management and investors to consider the ongoing operations of the business both with and without such expenses.
Restructuring and Related
The Company has recorded restructuring and related expense to streamline operations and reduce operating costs by closing and consolidating certain facilities and reducing its worldwide workforce. The Company believes that excluding restructuring and related expense facilitates the comparison of its financial results to its historical operating results and to other companies in its industry, as there are no future revenue streams or other benefits associated with these costs.
Preferred Stock and Warrant Liability Mark-to-Market Adjustment
The Company recorded adjustments to the fair value of its Series A Preferred Stock and Warrants to purchase shares of the Company's common stock in Other (expense) income, net. Both of these instruments were issued in March 2023 in connection with the Company's private placement and have been classified as liabilities and marked to market each reporting period until the Series A Preferred Stock was fully redeemed on June 25, 2024. The Warrant liability remains outstanding and will continue to be marked to market each reporting period. The Company excluded these gains and losses from the change in the fair value of these liabilities because it believes that such gains or losses were not part of its core business or ongoing operations.
Tax Effect of Non-GAAP Adjustments
The Non-GAAP income tax provision is presented based on an estimated tax rate applied against forecasted annual non-GAAP income. The Company computes its non-GAAP estimated tax rate using its estimated GAAP annual effective tax rate for the period and adjusting for the tax effect of pre-tax non-GAAP adjustments. The Company computes a single annual non-GAAP rate for the Company and applies that rate (rather than multiple rates by jurisdiction) to its consolidated quarterly results. The Company expects that this methodology will provide a consistent rate throughout the year and allow investors to better understand the impact of income taxes on its results. Due to the methodology applied to its estimated annual tax rate, the Company's estimated tax rate on non-GAAP income will differ from its GAAP tax rate and from its actual tax liabilities.
Adjusted EBITDA
The Company uses Adjusted EBITDA as a supplemental measure to review and assess its performance. The Company calculates Adjusted EBITDA by excluding from income (loss) from operations: depreciation; stock-based compensation; amortization of acquired intangible assets; certain litigation costs; expenses related to cybersecurity incidents; acquisition-, disposal- and integration-related expense; and restructuring and related expense. In general, the Company excludes the expenses that it considers to be non-cash and/or not a part of its ongoing operations. The Company may exclude other items in the future that have those characteristics. Adjusted EBITDA is a non-GAAP financial measure that is used by the investing community for comparative and valuation purposes. The Company discloses this metric to support and facilitate dialogue with research analysts and investors. Other companies may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure.
RIBBON COMMUNICATIONS INC.
Consolidated Statements of Operations
(in thousands, except percentages and per share amounts)
(unaudited)
Three months ended
September 30,
June 30
September 30,
2026
2026
2025
Revenue:
Product
$ 121,322
$ 95,560
$ 109,979
Service
97,388
96,780
105,392
Total revenue
218,710
192,340
215,371
Cost of revenue:
Product
70,166
58,877
62,037
Service
38,665
38,766
40,311
Amortization of acquired technology
4,353
4,354
5,057
Total cost of revenue
113,184
101,997
107,405
Gross profit
105,526
90,343
107,966
Gross margin
48.2 %
47.0 %
50.1 %
Operating expenses:
Research and development
44,424
44,858
45,894
Sales and marketing
33,376
33,124
33,063
General and administrative
15,233
14,643
16,368
Amortization of acquired intangible assets
5,461
5,495
5,933
Acquisition-, disposal- and integration-related
-
-
439
Restructuring and related
1,436
4,442
3,506
Total operating expenses
99,930
102,562
105,203
Income (loss) from operations
5,596
(12,219)
2,763
Interest expense, net
(11,273)
(10,685)
(11,606)
Other (expense) income, net
1,125
(2,258)
(134)
Income (loss) before income taxes
(4,552)
(25,162)
(8,977)
Income tax benefit (provision)
(4,565)
(1,709)
(3,132)
Net income (loss)
$ (9,117)
$ (26,871)
$ (12,109)
Earnings (loss) per share:
Basic
$ (0.05)
$ (0.15)
$ (0.07)
Diluted
$ (0.05)
$ (0.15)
$ (0.07)
Weighted average shares used to compute earnings (loss) per share:
Basic
178,861
177,251
176,620
Diluted
178,861
177,251
176,620
RIBBON COMMUNICATIONS INC.
Consolidated Statements of Operations
(in thousands, except percentages and per share amounts)
(unaudited)
Nine months ended
September 30,
September 30,
2026
2025
Revenue:
Product
$ 284,996
$ 307,027
Service
288,660
310,206
Total revenue
573,656
617,233
Cost of revenue:
Product
178,468
186,676
Service
116,359
115,192
Amortization of acquired technology
13,269
15,722
Total cost of revenue
308,096
317,590
Gross profit
265,560
299,643
Gross margin
46.3 %
48.5 %
Operating expenses:
Research and development
133,727
134,158
Sales and marketing
98,769
97,387
General and administrative
46,854
48,126
Amortization of acquired intangible assets
16,612
18,063
Acquisition-, disposal- and integration-related
-
4,337
Restructuring and related
7,916
10,193
Total operating expenses
303,878
312,264
Income (loss) from operations
(38,318)
(12,621)
Interest expense, net
(31,714)
(33,083)
Other (expense) income, net
(619)
836
Income (loss) before income taxes
(70,651)
(44,868)
Income tax benefit (provision)
174
(4,561)
Net income (loss)
$ (70,477)
$ (49,429)
Earnings (loss) per share:
Basic
$ (0.40)
$ (0.28)
Diluted
$ (0.40)
$ (0.28)
Weighted average shares used to compute earnings (loss) per share:
Basic
177,270
176,366
Diluted
177,270
176,366
RIBBON COMMUNICATIONS INC.
Consolidated Balance Sheets
(in thousands)
(unaudited)
September 30,
December 31,
2026
2025
Assets
Current assets:
Cash and cash equivalents
$ 40,383
$ 96,405
Restricted cash
1,972
1,726
Accounts receivable, net
246,232
231,885
Inventory
86,409
78,806
Other current assets
52,052
45,663
Total current assets
427,048
454,485
Property and equipment, net
58,448
65,559
Intangible assets, net
114,570
143,344
Goodwill
300,892
300,892
Deferred income taxes
180,154
174,318
Operating lease right-of-use assets
42,888
46,240
Other assets
26,574
27,417
$ 1,150,574
$ 1,212,255
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of term debt
$ 10,938
$ 8,750
Revolving credit facility
15,000
-
Accounts payable
94,083
79,840
Accrued expenses and other
78,857
90,759
Operating lease liabilities
11,200
11,699
Warrant liability
99
-
Deferred revenue
112,454
124,425
Total current liabilities
322,631
315,473
Long-term debt, net of current
316,937
324,525
Warrant liability
-
1,919
Operating lease liabilities, net of current
55,609
60,159
Deferred revenue, net of current
36,863
31,654
Deferred income taxes
5,728
5,728
Other long-term liabilities
24,088
23,803
Total liabilities
761,856
763,261
Commitments and contingencies
Stockholders' equity:
Common stock
18
18
Additional paid-in capital
1,987,542
1,976,958
Accumulated deficit
(1,605,026)
(1,534,549)
Accumulated other comprehensive income
6,184
6,567
Total stockholders' equity
388,718
448,994
$ 1,150,574
$ 1,212,255
RIBBON COMMUNICATIONS INC.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine months ended
September 30,
September 30,
2026
2025
Cash flows from operating activities:
Net income (loss)
$ (70,477)
$ (49,429)
Adjustments to reconcile net income (loss) to cash flows (used in) provided by operating activities:
Depreciation and amortization of property and equipment
13,343
12,182
Amortization of intangible assets
29,881
33,785
Amortization of debt issuance costs and original issue discount
2,252
2,102
Stock-based compensation
16,498
14,619
Deferred income taxes
(5,985)
52
Change in fair value of warrant liability
(1,820)
(2,811)
Foreign currency exchange (gains) losses
2,880
1,698
Changes in operating assets and liabilities:
Accounts receivable
(15,255)
34,258
Inventory
(11,491)
(382)
Other operating assets
3,587
822
Accounts payable
16,041
(5,017)
Accrued expenses and other long-term liabilities
(20,607)
(15,880)
Deferred revenue
(6,762)
(3,840)
Net cash (used in) provided by operating activities
(47,915)
22,159
Cash flows from investing activities:
Purchases of property and equipment
(8,464)
(23,368)
Purchases of software licenses
(553)
-
Net cash (used in) provided by investing activities
(9,017)
(23,368)
Cash flows from financing activities:
Borrowings under revolving line of credit
50,000
-
Principal payments on revolving line of credit
(35,000)
-
Principal payments of term debt
(6,562)
(3,938)
Payment of debt issuance costs
(977)
-
Proceeds from the exercise of stock options
-
6
Payment of tax obligations related to vested stock awards and units
(5,090)
(3,827)
Repurchase of common stock
(824)
(5,731)
Net cash (used in) provided by financing activities
1,547
(13,490)
Effect of exchange rate changes on cash and cash equivalents
(391)
987
Net (decrease) increase in cash and cash equivalents
(55,776)
(13,712)
Cash, cash equivalents and restricted cash, beginning of year
98,131
90,479
Cash, cash equivalents and restricted cash, end of period
$ 42,355
$ 76,767
RIBBON COMMUNICATIONS INC.
Supplemental Information
(in thousands)
(unaudited)
The following tables provide the details of stock-based compensation included as components of other line items in the Company's Consolidated Statements of Operations and the line items in which these amounts are reported.
Three months ended
Nine months ended
September 30,
June 30
September 30,
September 30,
September 30,
2026
2026
2025
2026
2025
Stock-based compensation
Cost of revenue - product
$ 35
$ 39
$ 17
$ 117
$ 116
Cost of revenue - service
202
175
152
538
636
Cost of revenue
237
214
169
655
752
Research and development
479
460
398
1,416
1,578
Sales and marketing
1,385
1,103
1,493
3,618
3,732
General and administrative
3,611
3,052
3,784
10,809
8,557
Operating expense
5,475
4,615
5,675
15,843
13,867
Total stock-based compensation
$ 5,712
$ 4,829
$ 5,844
$ 16,498
$ 14,619
RIBBON COMMUNICATIONS INC.
Reconciliation of Non-GAAP and GAAP Financial Measures
(in thousands, except per share amounts)
(unaudited)
Three months ended
September 30,
June 30
September 30,
2026
2026
2025
GAAP Gross margin
48.2 %
47.0 %
50.1 %
Stock-based compensation
0.1 %
0.1 %
0.1 %
Amortization of acquired technology
2.0 %
2.2 %
2.4 %
Non-GAAP Gross margin
50.3 %
49.3 %
52.6 %
GAAP Net income (loss)
$ (9,117)
$ (26,871)
$ (12,109)
Stock-based compensation
5,712
4,829
5,844
Amortization of intangible assets
9,814
9,849
10,990
Litigation costs
3
302
952
Acquisition-, disposal- and integration-related
-
-
439
Restructuring and related
1,436
4,442
3,506
Preferred stock and warrant liability mark-to-market adjustment
(909)
325
(1,170)
Tax effect of non-GAAP adjustments
5,440
2,223
(1,501)
Non-GAAP Net income (loss)
$ 12,379
$ (4,901)
$ 6,951
GAAP Diluted earnings (loss) per share
$ (0.05)
$ (0.15)
$ (0.07)
Stock-based compensation
0.03
0.03
0.04
Amortization of intangible assets
0.06
0.05
0.06
Litigation costs
*
*
0.01
Acquisition-, disposal- and integration-related
-
-
*
Restructuring and related
0.01
0.03
0.02
Preferred stock and warrant liability mark-to-market adjustment
(0.01)
*
(0.01)
Tax effect of non-GAAP adjustments
0.03
0.01
(0.01)
Non-GAAP Diluted earnings (loss) per share
$ 0.07
$ (0.03)
$ 0.04
Weighted average shares used to compute diluted earnings (loss) per share
Shares used to compute GAAP diluted earnings (loss) per share
178,861
177,251
176,620
Shares used to compute Non-GAAP diluted earnings (loss) per share
179,550
177,251
181,033
GAAP Income (loss) from operations
$ 5,596
$ (12,219)
$ 2,763
Depreciation
4,212
4,671
4,425
Stock-based compensation
5,712
4,829
5,844
Amortization of intangible assets
9,814
9,849
10,990
Litigation costs
3
302
952
Acquisition-, disposal- and integration-related
-
-
439
Restructuring and related
1,436
4,442
3,506
Non-GAAP Adjusted EBITDA
$ 26,773
$ 11,874
$ 28,919
* Less than $0.01 impact on earnings (loss) per share.
RIBBON COMMUNICATIONS INC.
Reconciliation of Non-GAAP and GAAP Financial Measures
(in thousands, except per share amounts)
(unaudited)
Nine months ended
September 30,
September 30,
2026
2025
GAAP Gross Margin
46.3 %
48.5 %
Stock-based compensation
0.1 %
0.1 %
Amortization of acquired technology
2.3 %
2.6 %
Non-GAAP Gross Margin
48.7 %
51.2 %
GAAP Net income (loss)
$ (70,477)
$ (49,429)
Stock-based compensation
16,498
14,619
Amortization of intangible assets
29,881
33,785
Litigation costs
1,049
4,066
Acquisition-, disposal- and integration-related
-
4,337
Restructuring and related
7,916
10,193
Preferred stock and warrant liability mark-to-market adjustment
(1,821)
(2,811)
Tax effect of non-GAAP adjustments
16,075
(2,779)
Non-GAAP Net income (loss)
$ (879)
$ 11,981
GAAP Diluted earnings (loss) per share
$ (0.40)
$ (0.28)
Stock-based compensation
0.09
0.08
Amortization of intangible assets
0.17
0.19
Litigation costs
0.01
0.02
Acquisition-, disposal- and integration-related
-
0.03
Restructuring and related
0.05
0.06
Preferred stock and warrant liability mark-to-market adjustment
(0.01)
(0.01)
Tax effect of non-GAAP adjustments
0.09
(0.02)
Non-GAAP Diluted earnings (loss) per share
$ -
$ 0.07
Weighted average shares used to compute diluted earnings (loss) per share
Shares used to compute GAAP diluted earnings (loss) per share
177,270
176,366
Shares used to compute Non-GAAP diluted earnings (loss) per share
177,270
180,512
GAAP Income (loss) from operations
$ (38,318)
$ (12,621)
Depreciation
13,343
12,182
Stock-based compensation
16,498
14,619
Amortization of intangible assets
29,881
33,785
Litigation costs
1,049
4,066
Acquisition-, disposal- and integration-related
-
4,337
Restructuring and related
7,916
10,193
Non-GAAP Adjusted EBITDA
$ 30,369
$ 66,561
RIBBON COMMUNICATIONS INC.
Reconciliation of Non-GAAP and GAAP Financial Measures
(in thousands)
(unaudited)
Trailing Twelve Months
September 30,
June 30
September 30,
2026
2026
2025
GAAP Income (loss) from operations
$ (29,021)
$ (31,854)
$ 20,599
Depreciation
17,889
18,102
15,590
Stock-based compensation
21,285
21,417
18,644
Amortization of intangible assets
40,289
41,465
45,570
Litigation costs
2,022
2,971
5,649
Cybersecurity incident
600
600
-
Acquisition-, disposal- and integration-related
-
439
4,337
Restructuring and related
17,381
19,451
11,574
Non-GAAP Adjusted EBITDA
$ 70,445
$ 72,591
$ 121,963
RIBBON COMMUNICATIONS INC.
Reconciliation of Non-GAAP and GAAP Financial Measures - Outlook
(unaudited)
Three months ending
Year ending
December 31, 2026
December 31, 2026
Midpoint (1)
Range
Midpoint (1)
Range
Revenue ($ millions)
$ 240
+/- $7M
$ 814
+/- $7M
Gross margin:
GAAP outlook
52.1 %
48.0 %
Stock-based compensation
0.1 %
0.1 %
Amortization of acquired technology
1.8 %
2.2 %
Non-GAAP outlook
54.0 %
+/- 0.5%
50.3 %
+/- 0.2%
Adjusted EBITDA ($ millions):
GAAP income (loss) from operations
$ 20.7
$ (18.8)
Depreciation
4.6
18.1
Stock-based compensation
5.0
21.0
Amortization of intangible assets
9.8
39.6
Litigation costs
0.4
1.6
Restructuring and related
3.0
12.5
Non-GAAP outlook
$ 43.5
+/- $3.5M
$ 74.0
+/- $3.5M
(1) Q4 2026 and FY 2026 outlook represents the midpoint of the expected ranges
SOURCE Ribbon Communications Inc.