Ribbon Communications Reports Q1 2025 Financial Results

Ribbon Communications ( (RBBN) ) has released its Q1 earnings. Here is a breakdown of the information Ribbon Communications presented to its investors.

Ribbon Communications Inc., a prominent provider of real-time communications technology and IP optical networking solutions, has released its financial results for the first quarter of 2025. The company focuses on helping service providers, enterprises, and critical infrastructure operators modernize and secure their networks.

In the first quarter of 2025, Ribbon Communications reported a slight increase in revenue to $181 million compared to $180 million in the same period last year. However, the company faced challenges with its gross margins, which decreased both on a GAAP and non-GAAP basis. Despite these challenges, the company is optimistic about the first half of 2025, projecting a 5-8% year-over-year revenue growth driven by increased demand from service providers.

Key financial metrics for the quarter included a GAAP operating loss of $20 million and a non-GAAP adjusted EBITDA of $6 million, both reflecting a decline from the previous year. The company attributed the lower-than-expected sales to the timing of federal and enterprise deals, which are anticipated to be fulfilled in the second quarter. Ribbon also highlighted a 35% increase in backlog, indicating strong future demand.

Looking ahead, Ribbon Communications is projecting second-quarter revenue between $210 million and $220 million, with non-GAAP gross margins expected to improve. The company remains focused on cost management and anticipates a return to normal gross margin levels as product and regional mixes improve throughout the year.