Adtran (ADTN) AI Stock Analysis

• Market Cap: $730.08M
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: 3.52%
• EPS Growth: 81.33%
• Country: US
• Employees: 3,091
• Sector: Technology
• Sector Strength: 86
• Industry: Communication Equipment
• EPS (TTM): 0.00
• Shares Outstanding: 80,052,170
• 10 Day Avg. Volume: 739,227
• 30 Day Avg. Volume: 1,165,609
• 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: 1.68
• Enterprise Value/Revenue: 1.25
• Enterprise Value/Gross Profit: 3.32
• Enterprise Value/Ebitda: 94.54
• 1Y Price Target: $12.10
• Price Target Upside: 30.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 57 Neutral
• Price Target: $9.50 ▲(2.37% Upside)

Adtran's overall stock score is driven by its strong earnings call performance, highlighting revenue growth and customer acquisitions. However, significant profitability challenges and a negative P/E ratio weigh down the score. Technical indicators suggest a neutral trend, while cash flow resilience provides some support.

Positive Factors

Financial Performance

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

Market Share

Strength in Europe drives improving results as the company continues to take share from competitors.

Product Demand

Despite uncertainty, demand across all geographies and segments is improving and likely to drive modest upside to estimates.

Negative Factors

Operating Margin

Operating margin expansion may be lagging expectations, contributing to a surprising steep sell-off.

Real-Estate Deal

A real-estate deal fell through, impacting the company's efforts to shore up its balance sheet.

Adtran Business Overview & Revenue Model

Company Description

Adtran, Inc. (ADTN) is a leading provider of networking and communications solutions, primarily focused on delivering high-speed broadband access and connectivity for service providers, enterprises, and government entities. The company operates in the telecommunications sector, offering a diverse portfolio of products and services that include fiber optic and copper-based broadband systems, voice services, and network management software. Adtran's innovations in software-defined networking (SDN) and cloud-based solutions enable its customers to enhance their network performance and reliability while reducing operational costs.

How the Company Makes Money

Adtran generates revenue through the sale of its hardware products, including routers, switches, and optical networking equipment, as well as through recurring service contracts and software licensing. The company's primary revenue streams include direct sales to telecommunications service providers, which represent a significant portion of its income, as well as sales to enterprise customers seeking to improve their network infrastructure. Additionally, Adtran benefits from partnerships with major telecom operators and technology providers, which help expand its market reach and enhance its product offerings. The increasing demand for high-speed internet and data services drives growth in Adtran's revenue, particularly in the deployment of fiber-to-the-home (FTTH) solutions and other advanced networking technologies.

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: Positive
• Last Price: 9.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADTN, the sentiment is Positive. The current price of 9.28 is above the 20-day moving average (MA) of 8.88, above the 50-day MA of 8.99, and above the 200-day MA of 8.89, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.93 is Neutral, neither overbought nor oversold. The STOCH value of 84.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADTN.

Adtran Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGII	78 Outperform	$1.26B	29.86	7.21%	―	-2.37%	147.46%
HLIT	78 Outperform	$1.06B	15.98	16.36%	―	24.14%	16.17%
NTGR	70 Outperform	$783.23M	12.53	12.97%	―	0.76%	―
GILT	69 Neutral	$567.81M	25.37	7.49%	―	19.67%	12.32%
Sector *	61 Neutral	$35.62B	8.22	-10.94%	1.88%	8.86%	-10.36%
COMM	59 Neutral	$3.52B	―	17.08%	―	-11.03%	91.98%
ADTN	57 Neutral	$730.08M	―	-53.68%	―	3.52%	81.33%

Adtran Corporate Events

Adtran Reports Strong Q2 2025 Financial Results

On August 4, 2025, ADTRAN Holdings, Inc. reported its unaudited financial results for the second quarter of 2025, showing a 17% year-over-year increase in revenue to $265.1 million. The company achieved a GAAP gross margin of 37.3% and a non-GAAP gross margin of 41.4%, with a net cash flow from operating activities of $32.2 million. CEO Tom Stanton highlighted the company’s strong execution and growing market share, attributing success to strategic product investments and customer trust. Looking ahead, ADTRAN expects continued profitability and cash flow growth, with projected third-quarter revenue between $270 million and $280 million.

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.

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.

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.