Adtran (ADTN) AI Stock Analysis

• Market Cap: $635.46M
• Dividend Yield: N/A
• Average Volume (3M): 782.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: -10.18%
• EPS Growth: 75.30%
• Country: US
• Employees: 3,091
• Sector: Technology
• Sector Strength: 82
• Industry: Communication Equipment
• EPS (TTM): 0.03
• Shares Outstanding: 80,032,650
• 10 Day Avg. Volume: 793,671
• 30 Day Avg. Volume: 782,218
• PEG Ratio: 5.93
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.90
• Enterprise Value/Market Cap: 1.90
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: -1.11
• 1Y Price Target: $12.00
• Price Target Upside: 51.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 59 Neutral
• Price Target: $8.50 ▲(7.05%Upside)

Adtran's overall stock score reflects significant challenges in financial performance and valuation. The positive earnings call and technical stability offer some relief, but concerns about financial transparency and valuation remain prominent.

Positive Factors

Earnings

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

Growth Potential

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

Net Income

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

Negative Factors

Foreign Exchange

2Q guidance was primarily impacted by foreign exchange.

Adtran Business Overview & Revenue Model

Company Description

ADTRAN Holdings, Inc., through its subsidiaries, provides end-to-end fiber networking solutions for communications service provider, enterprises, and government customers in the United States, Germany, the United Kingdom, Mexico, and internationally. It operates through two segments, Network Solutions, and Services & Support. The company offers fiber access and fiber to the node platforms; transceivers, cables, and other miscellaneous materials; passive optical network optical line terminals; fiber to the distribution point Gfast distribution point units; cabinet and outside plant enclosures and services; packet optical transports; fixed wireless access platforms; and network management and subscriber services, and control and orchestration software. It also provides broadband customer premises solutions, ethernet switches and routers, residential gateways, cloud-based software-as-a-service management platforms, virtual wireless local area networks, Internet of Things gateways, pre-sale and post-sale technical support, and multi-gigabit mesh Wi-Fi gateways. In addition, the company offers time division multiplexed and asynchronous transfer mode-based aggregation systems and customer devices; and high-bit-rate and asymmetric digital subscriber line, and other technologies. Further, it provides other access and aggregation, subscriber and experience, and traditional and other products, software, and services. Additionally, the company engages in the provision of planning, engineering, program management, maintenance, installation, and commissioning services to implement customer network solutions; and customer devices solutions into consumer, small business, and enterprise locations. ADTRAN Holdings, Inc. is headquartered in Huntsville, Alabama.

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 challenged with declining revenues and net losses, impacting profitability and shareholder returns. However, the company maintains a reasonable balance sheet with low leverage and positive cash flow trends, indicating potential for recovery.

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
944.29M	922.72M	1.15B	1.03B	563.00M	506.51M
	Gross Profit
356.75M	336.20M	333.06M	327.25M	218.38M	217.55M
	EBIT
-81.07M	-124.52M	-156.28M	-72.83M	-14.70M	-9.77M
	EBITDA
-9.69M	-319.13M	-96.06M	3.93M	9.81M	10.39M
	Net Income Common Stockholders
-137.65M	-450.87M	-267.69M	-2.04M	-8.63M	2.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
101.32M	77.57M	87.17M	108.98M	56.95M	63.29M
	Total Assets
1.19B	1.18B	1.68B	1.94B	569.02M	525.68M
	Total Debt
26.37M	215.50M	226.42M	143.34M	3.27M	5.38M
	Net Debt
-74.95M	137.93M	139.25M	34.70M	-53.33M	-60.16M
	Total Liabilities
630.01M	622.01M	636.93M	639.88M	211.91M	152.74M
	Stockholders Equity
139.28M	134.41M	593.82M	973.95M	357.10M	372.94M
Cash Flow		Free Cash Flow
43.13M	70.62M	-88.72M	-61.30M	-2.66M	-22.93M
	Operating Cash Flow
105.06M	103.07M	-45.60M	-44.23M	3.01M	-16.52M
	Investing Cash Flow
-62.21M	-62.21M	-32.20M	55.83M	10.27M	41.40M
	Financing Cash Flow
-52.03M	-50.01M	58.87M	52.94M	-12.96M	-42.98M

Adtran Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.94
• 50DMA: Positive
• 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 Neutral. The current price of 7.94 is below the 20-day moving average (MA) of 8.00, above the 50-day MA of 7.88, and below the 200-day MA of 8.13, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 41.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ADTN.

Adtran Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGII	79 Outperform	$1.23B	29.47	7.30%	―	-4.47%	195.28%
HLIT	73 Outperform	$994.12M	19.50	12.45%	―	20.53%	-27.75%
GILT	64 Neutral	$355.79M	25.62	4.79%	―	13.49%	-39.61%
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%
COMM	61 Neutral	$1.30B	―	17.08%	―	-19.10%	93.30%
ADTN	59 Neutral	$635.46M	―	-66.95%	―	-10.18%	75.30%
NTGR	56 Neutral	$768.52M	32.85	4.78%	―	-6.97%	―

Adtran Corporate Events

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.

Adtran Revises 2024 Financials with Increased Loss

On April 15, 2025, Adtran Networks SE announced a deviation in its final IFRS financial statements from previously disclosed preliminary results for the fiscal year ending December 31, 2024. The company identified an adjustment to inventory, leading to an increased cost of goods sold and a revised expected loss of approximately EUR 10.2 million, compared to the earlier reported EUR 4.5 million. This adjustment does not affect the expected revenues or cash position for the year, and the full financial statements are set to be published on April 30, 2025.