Ribbon Communications (RBBN) AI Stock Analysis

• Market Cap: $686.76M
• Dividend Yield: N/A
• Average Volume (3M): 511.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: 7.68%
• EPS Growth: 18.65%
• Country: US
• Employees: 3,052
• Sector: Communication Services
• Sector Strength: 76
• Industry: Telecommunications Services
• EPS (TTM): 0.05
• Shares Outstanding: 176,544,390
• 10 Day Avg. Volume: 584,647
• 30 Day Avg. Volume: 511,235
• PEG Ratio: -1.11
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 87.42
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 4.32
• Enterprise Value/Ebitda: -63.57
• 1Y Price Target: $6.00
• Price Target Upside: 57.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 57 Neutral
• Price Target: $4.00 ▲(4.71%Upside)

Ribbon Communications' overall score reflects a mix of strengths and challenges. The strong performance and growth highlighted in the earnings call are significant positives, but are tempered by ongoing profitability issues and a negative valuation outlook. Technical signals suggest neutral to slight positive momentum, but not enough to offset financial weaknesses.

Positive Factors

Earnings

The company reported strengthening F4Q24 results, with revenue of $251.4M, up 11% year-over-year.

Market Opportunities

The company has a significant market opportunity of over $10 billion and shows strength internationally and in working with U.S. federal customers.

Negative Factors

Geopolitical Factors

Uncertainties remain due to geopolitical factors affecting the IP Optical segment's growth projections.

Ribbon Communications Business Overview & Revenue Model

Company Description

Ribbon Communications Inc. (RBBN) is a global provider of communications technology solutions, specializing in the design and development of secure and intelligent cloud communications, IP and optical networking solutions. The company serves a diverse range of sectors including telecommunications service providers, enterprises, and critical infrastructure sectors. Ribbon's core products and services include session border controllers, network transformation solutions, cloud-native solutions, and advanced analytics, catering to the needs of modern communications and data transmission networks.

How the Company Makes Money

Ribbon Communications makes money primarily through the sale of its hardware and software products, as well as associated services. The company's key revenue streams include product sales, which encompass both its cloud and edge communications solutions, and service revenues derived from maintenance, support, and professional services. Additionally, Ribbon generates revenue from licensing its software solutions and offering managed services. Strategic partnerships with telecommunications companies and enterprises also play a significant role in driving sales and expanding their market reach. By providing essential solutions for modern communication networks, Ribbon leverages the growing demand for secure and efficient digital communication infrastructure.

Ribbon Communications Financial Statement Overview

Summary

Ribbon Communications shows incremental operational improvements and a stable revenue base, yet struggles with profitability and cash flow generation. The balance sheet is becoming more robust, with improved debt management. However, continued net losses and negative free cash flow pose risks to financial stability and long-term sustainability.

Income Statement

The company has shown a steady revenue trend with a slight increase in TTM data. However, persistent net losses and declining gross profit margins indicate challenges in achieving profitability. The EBIT and EBITDA margins have improved in the latest TTM, suggesting operational improvements, but the negative net income continues to be a concern.

Balance Sheet

The balance sheet shows moderate leverage with a declining debt-to-equity ratio, indicating improved capital structure stability. The equity ratio is relatively stable, and the slight improvement in ROE in recent periods suggests better utilization of shareholder funds, though it is still negative due to net losses.

Cash Flow

Cash flow analysis reveals fluctuating free cash flow with a negative trend in the latest TTM period. Operating cash flow has decreased but remains positive, which is positive for liquidity. However, the free cash flow to net income ratio reflects challenges in converting earnings to cash due to ongoing net losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	833.88M	826.34M	819.76M	844.96M	843.79M
Gross Profit	439.51M	379.48M	400.94M	444.66M	493.11M
EBITDA	52.48M	43.28M	45.28M	101.08M	194.65M
Net Income	-54.23M	-66.21M	-98.08M	-177.19M	88.59M
Balance Sheet
Total Assets	1.16B	1.14B	1.26B	1.35B	1.55B
Cash, Cash Equivalents and Short-Term Investments	87.77M	26.63M	67.10M	103.92M	128.43M
Total Debt	383.67M	287.03M	387.93M	442.87M	474.20M
Total Liabilities	757.93M	691.39M	737.14M	820.57M	860.41M
Stockholders Equity	404.62M	452.76M	518.43M	527.17M	686.85M
Cash Flow
Free Cash Flow	27.83M	7.71M	-39.92M	2.05M	74.84M
Operating Cash Flow	50.24M	17.09M	-26.36M	19.18M	101.56M
Investing Cash Flow	-22.87M	-9.48M	-12.14M	-14.19M	-330.07M
Financing Cash Flow	37.71M	-47.86M	931.00K	-33.68M	319.30M

Ribbon Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.82
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBBN, the sentiment is Negative. The current price of 3.82 is below the 20-day moving average (MA) of 4.04, below the 50-day MA of 3.86, and below the 200-day MA of 3.89, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 43.82 is Neutral, neither overbought nor oversold. The STOCH value of 55.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RBBN.

Ribbon Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDCM	76 Outperform	$225.05M	27.47	9.35%	―	18.23%	81.31%
SNRE	69 Neutral	$148.25M	―		6.85%	―	―
SIFY	65 Neutral	$405.16M	―	-5.17%	―	10.20%	―
OOMA	65 Neutral	$332.30M	―	-5.81%	―	7.01%	-84.41%
Sector *	59 Neutral	C$3.46B	8.41	-17.94%	5.27%	-2.61%	-25.43%
RBBN	57 Neutral	$686.76M	―	-11.45%	―	7.68%	18.65%
ATEX	49 Neutral	$401.40M	―	-7.16%	―	43.90%	-24.87%

Ribbon Communications Corporate Events

Ribbon Communications Increases Authorized Shares After Meeting

Ribbon Communications Inc. held its annual meeting of stockholders on May 28, 2025, where several key proposals were approved. These included the election of eight directors, the ratification of Deloitte & Touche LLP as the independent registered public accounting firm, a non-binding advisory vote on executive compensation, an amendment to increase the number of authorized shares to 390 million, and the adoption of the 2025 Incentive Award Plan. The amendment to increase authorized shares became effective on May 29, 2025.

The most recent analyst rating on (RBBN) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Ribbon Communications stock, see the RBBN Stock Forecast page.