Adtran (ADTN) AI Stock Analysis

• Market Cap: $701.09M
• Dividend Yield: N/A
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.66
• Revenue Growth: -10.18%
• EPS Growth: 75.30%
• Country: US
• Employees: 3,091
• Sector: Technology
• Sector Strength: 92
• Industry: Communication Equipment
• EPS (TTM): 0.00
• Shares Outstanding: 80,032,650
• 10 Day Avg. Volume: 893,062
• 30 Day Avg. Volume: 1,248,123
• PEG Ratio: -0.02
• Price to Book (P/B): 4.89
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 9.31
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 1.25
• Enterprise Value/Gross Profit: 3.32
• Enterprise Value/Ebitda: 94.73
• 1Y Price Target: $11.63
• Price Target Upside: 43.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 66 Neutral
• Price Target: $10.50 ▲(29.79% Upside)

Adtran's overall stock score reflects a blend of financial challenges and positive growth prospects. The strongest factor is the technical analysis, suggesting current positive momentum. While financial performance is a concern, improvements in cash flow and strategic positioning from the earnings call provide optimism. Valuation remains a notable risk, tempered by strong corporate events and earnings outlook.

Positive Factors

Earnings

ADTN reported revenue and operating margin above consensus, indicating strong performance.

Financial Performance

Reaching positive net income for the first time in eight quarters shows efforts to reduce costs during the downturn.

Growth Outlook

Higher confidence in growth and execution leads to raised revenue estimates and price target.

Negative Factors

Foreign Exchange

2Q guidance was primarily impacted by foreign exchange.

Adtran Business Overview & Revenue Model

Company Description

Adtran, Inc. (ADTN) is a leading global provider of networking and communications equipment. The company designs, manufactures, and markets a diversified portfolio of telecommunications and networking infrastructure solutions. Adtran’s core products and services include broadband access, optical networking, and cloud-managed Wi-Fi solutions, serving a wide range of customers, including service providers, enterprises, and government organizations. The company focuses on enabling high-speed internet access, networking, and connectivity enhancements, driving the digital transformation across various sectors.

How the Company Makes Money

Adtran generates revenue primarily through the sale of its networking and telecommunications equipment and solutions. Its key revenue streams include broadband access products, such as fiber and copper-based systems, which enable high-speed internet access for residential and business customers. The company also earns from its optical networking solutions, which facilitate the transmission of data over fiber-optic cables, and cloud-managed Wi-Fi solutions that provide enterprise-grade wireless connectivity. Additionally, Adtran engages in service contracts, maintenance agreements, and software-related services, further contributing to its earnings. Strategic partnerships with telecommunications service providers and technology companies also play a significant role in expanding its market reach and driving sales growth.

Adtran Financial Statement Overview

Summary

Adtran's financial performance is mixed. The income statement indicates challenges with declining revenues and negative net profit margins, impacting profitability. However, the balance sheet shows low leverage and a stable financial structure. Cash flow is positive, suggesting potential recovery if revenue growth improves.

Income Statement

Adtran's income statement shows a challenging financial performance. The company has experienced a decline in revenue from 2023 to TTM 2025, and its net profit margin is negative, indicating losses. Despite this, there is a significant gross profit margin indicating that the company retains a good portion of revenue after direct costs. However, the negative EBIT and EBITDA margins suggest struggles with operational efficiency and profitability.

Balance Sheet

Adtran's balance sheet reflects a mixed financial position. The debt-to-equity ratio is low, indicating prudent leverage usage. However, the ROE is negative due to consistent net losses, which impacts shareholder value negatively. The equity ratio shows a moderate level of equity financing relative to total assets, suggesting a stable financial structure amidst industry challenges.

Cash Flow

The cash flow statement reveals a positive operating cash flow and free cash flow in TTM 2025, marking improvement. However, the free cash flow growth rate is negative due to previous periods of higher free cash flow. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	983.37M	922.72M	1.15B	1.03B	563.00M	506.51M
Gross Profit	370.58M	324.16M	331.13M	327.25M	218.38M	217.55M
EBITDA	13.00M	-330.14M	-104.36M	27.00K	9.81M	10.39M
Net Income	-108.95M	-459.89M	-267.69M	-2.04M	-8.63M	2.38M
Balance Sheet
Total Assets	1.22B	1.18B	1.68B	1.94B	569.02M	525.68M
Cash, Cash Equivalents and Short-Term Investments	106.27M	76.02M	87.17M	108.98M	56.95M	63.29M
Total Debt	27.78M	222.66M	226.42M	150.94M	3.27M	5.38M
Total Liabilities	644.59M	622.01M	628.86M	639.88M	211.91M	152.74M
Stockholders Equity	169.61M	134.41M	593.82M	973.95M	357.10M	372.94M
Cash Flow
Free Cash Flow	57.04M	70.62M	-88.72M	-61.30M	-2.66M	-22.93M
Operating Cash Flow	108.33M	103.07M	-45.60M	-44.23M	3.01M	-16.52M
Investing Cash Flow	-85.12M	-62.21M	-34.86M	55.83M	10.27M	41.40M
Financing Cash Flow	-45.31M	-50.01M	58.87M	52.94M	-12.96M	-42.98M

Adtran Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADTN, the sentiment is Negative. The current price of 8.09 is below the 20-day moving average (MA) of 9.27, below the 50-day MA of 8.74, and below the 200-day MA of 8.69, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 38.58 is Neutral, neither overbought nor oversold. The STOCH value of 30.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADTN.

Adtran Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLIT	75 Outperform	$944.36M	14.27	16.36%	―	24.14%	16.17%
DGII	71 Outperform	$1.15B	27.55	7.30%	―	-4.47%	195.28%
GILT	69 Neutral	$419.08M	30.17	4.79%	―	13.49%	-39.61%
ADTN	66 Neutral	$701.09M	―	-53.68%	―	-10.18%	75.30%
COMM	65 Neutral	$1.69B	―	17.08%	―	-19.10%	93.30%
NTGR	65 Neutral	$647.63M	10.44	12.97%	―	0.76%	―
Sector *	62 Neutral	$34.81B	5.71	-10.78%	2.06%	6.35%	-8.51%

Adtran Corporate Events

Adtran Concludes 2025 Annual Stockholders Meeting

Adtran Holdings, Inc. held its 2025 Annual Meeting of Stockholders on July 24, 2025, where stockholders elected seven directors, approved executive compensation, and ratified PricewaterhouseCoopers LLP as the independent auditor for 2025. The company also announced that its 2026 Annual Meeting will be held on May 13, 2026, as a virtual event, with new deadlines for stockholder proposals and nominations due to the change in meeting date.

The most recent analyst rating on (ADTN) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Adtran stock, see the ADTN Stock Forecast page.

Adtran Exceeds Q2 2025 Revenue Expectations

On July 16, 2025, ADTRAN Holdings, Inc. announced that its preliminary unaudited revenue for the second quarter of fiscal 2025 exceeded expectations, ranging between $262.5 million and $267.5 million, surpassing the previously announced guidance of $247.5 million to $262.5 million. This overperformance is attributed to improved market conditions and growing customer demand for ADTRAN’s products and services, reflecting strengthened business conditions during the quarter.

The most recent analyst rating on (ADTN) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Adtran stock, see the ADTN Stock Forecast page.

Adtran Reschedules 2025 Annual Stockholders Meeting

On May 27, 2025, ADTRAN Holdings, Inc. announced the rescheduling of its 2025 annual meeting of stockholders to July 24, 2025. The company plans to file a revised definitive proxy statement with the SEC and will require stockholders to resubmit their votes as previous submissions will not be counted. This rescheduling and requirement for new votes may impact stockholder engagement and the company’s governance processes.

The most recent analyst rating on (ADTN) stock is a Buy with a $6.50 price target. To see the full list of analyst forecasts on Adtran stock, see the ADTN Stock Forecast page.

Adtran Postpones 2025 Annual Meeting for Restatements

Adtran has announced the postponement of its 2025 Annual Meeting of stockholders, originally scheduled for May 14, 2025, due to the need to restate its 2024 and 2023 financial statements. The company plans to reschedule the meeting once the restatements are complete and will file amended documents with the SEC, including a new proxy statement and notice for stockholders.

The most recent analyst rating on (ADTN) stock is a Buy with a $6.50 price target. To see the full list of analyst forecasts on Adtran stock, see the ADTN Stock Forecast page.

Adtran Amends Credit Agreement to Reduce Commitments

On May 6, 2025, Adtran Holdings, Inc. and its subsidiaries entered into a Fifth Amendment to their Credit Agreement, resulting in a reduction of total commitments from $374 million to $350 million and a decrease in the German Borrower Sublimit from $74 million to $50 million. The amendment also addressed financial inaccuracies and covenant breaches from fiscal quarters in 2024, with lenders waiving certain events of default, potentially stabilizing the company’s financial standing and improving its operational flexibility.

The most recent analyst rating on (ADTN) stock is a Buy with a $6.50 price target. To see the full list of analyst forecasts on Adtran stock, see the ADTN Stock Forecast page.

Adtran Reports Strong Q1 2025 Financial Results

On May 7, 2025, ADTRAN Holdings, Inc. announced its preliminary unaudited financial results for the first quarter ending March 31, 2025, reporting a 10% year-over-year increase in revenue to $247.7 million, with strong gross and operating margins. The company highlighted its improved operating efficiency and business model strength, with net cash from operations at $41.6 million and cash equivalents rising by $23.8 million sequentially. ADTRAN’s CEO, Tom Stanton, emphasized the company’s readiness to capitalize on shifts in trade policy due to its diverse supply chain and strong customer relationships, expecting continued positive momentum into the second quarter.