Ribbon Communications (RBBN) AI Stock Analysis

• Market Cap: $559.82M
• Dividend Yield: N/A
• Average Volume (3M): 594.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: 7.38%
• EPS Growth: 20.81%
• Country: US
• Employees: 3,052
• Sector: Technology
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 0.04
• Shares Outstanding: 176,599,600
• 10 Day Avg. Volume: 588,593
• 30 Day Avg. Volume: 594,189
• PEG Ratio: 0.65
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 26.01
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 2.40
• Enterprise Value/Ebitda: 15.06
• 1Y Price Target: $5.63
• Price Target Upside: 101.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $3.00 ▲(7.14% Upside)

Ribbon Communications' overall stock score is primarily influenced by its strong revenue growth and improved cash flow, which are offset by significant profitability challenges and bearish technical indicators. The earnings call provided some optimism for future growth, but the negative P/E ratio and lack of dividend yield weigh heavily on the valuation.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Regional Performance

Strong growth in EMEA and India suggests successful regional strategies and potential for further international market penetration.

Product Innovation

Innovative products like Acumen enhance competitive positioning and open new revenue streams, bolstering long-term growth prospects.

Negative Factors

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, which could hinder financial health and shareholder returns if not addressed.

Impact of U.S. Government Shutdown

The shutdown's impact on sales underscores vulnerability to government-related disruptions, affecting revenue stability and planning.

Decline in North American Sales

Declining sales in a key market like North America could signal competitive pressures or market saturation, impacting future growth.

Ribbon Communications Business Overview & Revenue Model

Company Description

Ribbon Communications Inc. provides communications technology in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It operates through two segments, Cloud and Edge, and IP Optical Networks. The Cloud and Edge segment provides software and hardware products; and solutions and services for enabling voice over internet protocol communications, voice over long-term evolution, and voice over 5G communications and unified communications and collaboration. It also offers session border controller and network transformation products. This segment serves private, public, or hybrid cloud infrastructures, as well as data centers, enterprise premises, and service provider networks. It also provides multiple solutions for VoIP, VoLTE, VoNR, and UC&C in network, on-premises, or via the telco cloud. The IP Optical Networks segment provides hardware and software solutions for IP networking, switching, routing, and optical transport to support and enable technologies, such as 5G, distributed cloud computing, and corresponding applications. It also offers multiple solutions, including 5G-native solutions for mobile-backhaul, metro and edge aggregation, core networking, data center interconnect, legacy NTR, and transport solutions for wholesale carriers. This segment serves utilities, government, defense, finance, transportation, and education and research industries, as well as service providers and enterprises. It also provides advanced analytics solutions and next generation products that provides cloud-native and streaming analytics platform for networks and subscribers. The company was formerly known as Sonus Networks, Inc. and changed its name to Ribbon Communications Inc. in November 2017. Ribbon Communications Inc. was founded in 1997 and is headquartered in Plano, Texas.

How the Company Makes Money

Ribbon Communications generates revenue through multiple streams, primarily by selling its software and hardware solutions to telecommunications service providers and enterprises. Key revenue streams include the sale of session border controllers, which facilitate secure VoIP communications, and cloud-based communication services that support video conferencing and collaboration tools. The company also earns revenue from maintenance and support services, as well as professional services related to the deployment and integration of its products. Additionally, Ribbon benefits from strategic partnerships with major telecommunications operators and technology firms, which enhance its market reach and provide opportunities for joint ventures and collaborative product offerings, further contributing to its earnings.

Ribbon Communications Financial Statement Overview

Summary

Ribbon Communications demonstrates strong revenue growth and improved cash flow generation, but profitability remains a significant challenge. The company has made progress in reducing leverage, but negative returns on equity and net losses indicate a need for strategic improvements to enhance profitability and shareholder value.

Income Statement

Ribbon Communications shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) revenue growth rate is strong at 59.4%, indicating a significant increase in sales. However, the company struggles with profitability, as evidenced by a negative net profit margin of -4.96% and a low EBIT margin of 1.03%. The gross profit margin is relatively healthy at 50.62%, but the overall profitability is hampered by high operating costs and negative net income.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has improved to 0.23 in the TTM, indicating reduced leverage compared to previous years. However, the return on equity remains negative at -11.36%, reflecting ongoing challenges in generating returns for shareholders. The equity ratio stands at 33.37%, suggesting a stable capital structure but highlighting the need for improved profitability.

Cash Flow

Cash flow analysis shows positive trends, with a substantial free cash flow growth rate of 577.14% in the TTM. The operating cash flow to net income ratio is 0.29, indicating some efficiency in converting earnings into cash. The free cash flow to net income ratio of 0.63 suggests that the company is generating cash despite net losses, which is a positive sign for liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	868.59M	833.88M	826.34M	819.76M	844.96M	843.79M
Gross Profit	439.72M	439.51M	379.48M	400.94M	444.66M	450.82M
EBITDA	70.12M	91.43M	43.28M	-16.34M	-108.72M	192.46M
Net Income	-43.06M	-54.23M	-66.21M	-98.08M	-177.19M	88.59M
Balance Sheet
Total Assets	1.11B	1.16B	1.14B	1.26B	1.35B	1.55B
Cash, Cash Equivalents and Short-Term Investments	74.80M	87.77M	26.63M	67.10M	103.92M	128.43M
Total Debt	408.25M	383.67M	287.03M	387.93M	442.87M	474.20M
Total Liabilities	745.18M	757.93M	691.39M	737.14M	820.57M	860.41M
Stockholders Equity	360.05M	404.62M	452.76M	518.43M	527.17M	686.85M
Cash Flow
Free Cash Flow	52.58M	27.37M	7.61M	-39.92M	2.05M	74.84M
Operating Cash Flow	83.93M	50.24M	17.09M	-26.36M	19.18M	101.56M
Investing Cash Flow	-31.35M	-22.87M	-9.48M	-12.14M	-14.19M	-330.07M
Financing Cash Flow	-15.96M	37.71M	-47.86M	931.00K	-33.68M	319.30M

Ribbon Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 2.8 is below the 20-day moving average (MA) of 3.01, below the 50-day MA of 3.44, and below the 200-day MA of 3.77, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 32.92 is Neutral, neither overbought nor oversold. The STOCH value of 30.47 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	$207.42M	20.45	10.54%	―	17.27%	39.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SIFY	53 Neutral	$810.33M	―	-8.89%	―	5.81%	―
RBBN	50 Neutral	$559.82M	-12.94	-11.40%	―	7.38%	20.81%
SHEN	48 Neutral	$591.25M	―	-4.41%	1.02%	11.59%	-106.83%
OOMA	46 Neutral	$303.05M	―	-1.78%	―	5.42%	69.88%
CCOI	41 Neutral	$956.39M	―	-136.94%	15.67%	-6.48%	-588.01%

Ribbon Communications Corporate Events

Ribbon Communications’ Earnings Call: Growth Amid Challenges

Ribbon Communications’ recent earnings call painted a picture of mixed sentiment, showcasing robust growth in certain segments while highlighting significant challenges. The company reported strong year-over-year growth in IP Optical Networks and key regions such as EMEA and India. However, the U.S. government shutdown posed challenges, particularly affecting sales in North America and the Cloud & Edge segment. Despite promising product innovations and strategic wins, the uncertainty surrounding U.S. government-related sales adds a layer of caution to the company’s outlook.

Ribbon Communications Reports Solid Q3 2025 Results

Ribbon Communications Inc., a leader in real-time communications technology and IP optical networking solutions, serves global service providers, enterprises, and critical infrastructure operators by modernizing and safeguarding their networks.

Ribbon Communications EVP Dan Redington to Depart

As of September 30, 2025, Dan Redington, the Executive Vice President of Global Sales at Ribbon Communications, will be leaving the company to explore other opportunities. Ribbon plans to appoint a new head of Global Sales by the end of the third quarter of 2025, which may impact its sales operations and strategic direction.

The most recent analyst rating on (RBBN) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Ribbon Communications stock, see the RBBN Stock Forecast page.