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Ribbon Communications
(NASDAQ:RBBN)
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Rating:51Neutral
Price Target:
$2.00
▼(-0.50% Downside)
Action:Reiterated
Date:07/29/26
The score is held back primarily by weakening TTM fundamentals (declining revenue, slightly negative operating margin, and sharply lower free cash flow/low cash conversion) and a clearly bearish technical setup (price below all key moving averages). Partially offsetting this, the latest earnings call included guidance for a second-half sequential recovery supported by strong bookings/backlog and strategic enterprise/cloud wins, while valuation appears only moderate given current cash-flow and profitability pressures.
Positive Factors
Stable, high gross margins
A sustained ~48% gross margin provides structural pricing and product-stack resilience versus peers. Durable gross margin supports profitability as revenue normalizes, enabling the company to absorb cyclical cost swings and invest in cloud-native and optical product development over the next several quarters.
Negative Factors
Revenue has declined year-over-year
Persistent YoY revenue decline and a negative TTM trend highlight sensitivity to large carrier timing (e.g., Verizon) and slower BEAD adoption. Structural recovery depends on converting backlog and diversifying large-customer exposure to avoid recurring negative comparables.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable, high gross margins
A sustained ~48% gross margin provides structural pricing and product-stack resilience versus peers. Durable gross margin supports profitability as revenue normalizes, enabling the company to absorb cyclical cost swings and invest in cloud-native and optical product development over the next several quarters.
Read all positive factors
Ribbon Communications Key Performance Indicators (KPIs)
Ribbon Communications (RBBN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$376.94M
Dividend YieldN/A
Average Volume (3M)594.19K
Price to Earnings (P/E)23.4
Beta (1Y)1.77
Revenue Growth-7.62%
EPS GrowthN/A
CountryUS
Employees3,080
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.09
Shares Outstanding176,139,070
10 Day Avg. Volume588,593
30 Day Avg. Volume594,189
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)1.13
Price to Sales (P/S)0.60
P/FCF Ratio19.48
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$3.60Price Target Upside79.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.07
Revenue Forecast (FY)$840.42M
Ribbon Communications Business Overview & Revenue Model
Company Description
Ribbon Communications Inc. (RBBN) provides communications software, IP/optical networking, and security solutions used by service providers, enterprises, and public-sector customers to build, secure, and operate voice, video, and data networks. Th...
How the Company Makes Money
Ribbon primarily makes money by selling communications infrastructure products and associated services to telecom operators and enterprise/government customers. Its revenue model generally includes: (1) Product revenue from deploying its networkin...
Ribbon Communications Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call showed clear sequential improvement and strong strategic momentum: record IP Optical bookings (book-to-bill 1.6x), a >60% YTD backlog increase, significant enterprise/cloud wins (Salesforce partnership, large Microsoft Teams deployment), and guidance that anticipates continued sequential growth. However, material year-over-year revenue declines, a non-GAAP net loss, IP Optical still EBITDA-negative, supply-chain cost pressures (~$2M/quarter), slow BEAD funding, and elevated leverage temper the outlook. Overall, the company appears to be in a recovery and re-acceleration phase with meaningful positive catalysts but still faces near-term profitability and cash-flow headwinds.Positive Updates
Sequential Revenue Growth
Revenue increased 18% sequentially to $192.0M (Q2 2026), driven by higher product shipments and stronger U.S. sales.
Negative Updates
Year-Over-Year Revenue Decline
Consolidated revenue declined 13% year-over-year in Q2 2026, reflecting a difficult comparison to prior-year Verizon-related shipments and other timing effects.
Read all updates
Q2-2026 Updates
Positive
Negative
Sequential Revenue Growth
Revenue increased 18% sequentially to $192.0M (Q2 2026), driven by higher product shipments and stronger U.S. sales.
Read all positive updates
Company Guidance
Ribbon guided Q3 revenue of $215–230M and adjusted EBITDA of $26–31M, and updated full‑year revenue to $810–840M with adjusted EBITDA of $78–88M (assuming ~ $2M/quarter of increased product/component costs and noting H2 supply limitations); Q2 actuals were revenue $192M, adjusted EBITDA $12M, non‑GAAP gross margin 49.3%, non‑GAAP net loss $5M (EPS -$0.03), cash $45M, net debt leverage 4.0x, capex $5M and operating cash flow -$12M. Segment detail: IP Optical Q2 revenue $82M, book‑to‑bill 1.6x, backlog +60% YTD, gross margin 35.2%; Cloud & Edge Q2 revenue $111M, gross margin 59.8%, adjusted EBITDA $18M (16% of rev). Management expects sequential revenue and earnings growth in Q3/Q4 and full‑year non‑GAAP gross margin of ~51–52% (previously 52.5–53.5%).Ribbon Communications Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 797.64M | 844.56M | 833.88M | 826.34M | 819.76M | 844.96M |
| Gross Profit | 375.12M | 396.86M | 439.51M | 379.48M | 400.94M | 444.66M |
| EBITDA | 38.45M | 59.82M | 91.43M | 43.28M | -16.34M | -108.72M |
| Net Income | 15.60M | 39.64M | -54.23M | -66.21M | -98.08M | -177.19M |
Balance Sheet | ||||||
| Total Assets | 1.14B | 1.21B | 1.16B | 1.14B | 1.26B | 1.35B |
| Cash, Cash Equivalents and Short-Term Investments | 43.51M | 96.41M | 87.77M | 26.63M | 67.10M | 103.92M |
| Total Debt | 397.01M | 405.13M | 383.67M | 287.03M | 387.93M | 442.87M |
| Total Liabilities | 750.25M | 763.26M | 757.93M | 691.39M | 737.14M | 820.57M |
| Stockholders Equity | 392.57M | 448.99M | 404.62M | 452.76M | 518.43M | 527.17M |
Cash Flow | ||||||
| Free Cash Flow | 7.35M | 26.06M | 27.37M | 7.61M | -39.92M | 2.05M |
| Operating Cash Flow | 22.23M | 51.40M | 50.24M | 17.09M | -26.36M | 19.18M |
| Investing Cash Flow | -15.43M | -25.34M | -22.87M | -9.48M | -12.14M | -14.19M |
| Financing Cash Flow | -23.19M | -19.43M | 37.71M | -47.86M | 931.00K | -33.68M |
Ribbon Communications Technical Analysis
Negative
2.01
Price Trends
2.47
Negative
2.46
Negative
2.65
Negative
Market Momentum
-0.12
Positive
37.14
Neutral
12.64
Positive
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 2.01 is below the 20-day moving average (MA) of 2.17, below the 50-day MA of 2.47, and below the 200-day MA of 2.65, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 37.14 is Neutral, neither overbought nor oversold. The STOCH value of 12.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RBBN.
Ribbon Communications Risk Analysis
Ribbon Communications disclosed 50 risk factors in its most recent earnings report. Ribbon Communications reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ribbon Communications Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $171.40M | 13.47 | 11.33% | ― | 15.77% | 40.61% | |
68 Neutral | $598.13M | 65.95 | 10.01% | ― | 11.70% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | $376.94M | 23.41 | 3.85% | ― | -7.62% | ― | |
49 Neutral | $663.82M | -14.80 | -4.77% | 0.96% | 5.01% | -23.53% | |
47 Neutral | $676.05M | -3.80 | 422.83% | 9.06% | -4.83% | 11.31% | |
43 Neutral | $1.06B | -112.43 | -4.87% | ― | 5.88% | ― |
* Technology Sector Average
RBBN
Ribbon Communications
2.14
-1.49
-41.05%
CCOI
Cogent Comms
13.50
-30.41
-69.25%
RDCM
Radcom
10.24
-2.97
-22.48%
SHEN
Shenandoah Telecommunications Co
11.99
-0.79
-6.20%
SIFY
Sify Technologies
14.64
7.97
119.49%
OOMA
Ooma
21.75
10.38
91.29%
Ribbon Communications Corporate Events
Business Operations and StrategyFinancial Disclosures
Ribbon Showcases AI Infrastructure Role in Investor Presentation
Positive
Jun 17, 2026
In June 2026, Ribbon Communications detailed an investor presentation aligned with its participation in a June 17, 2026 conference, positioning itself as a compelling AI infrastructure play built on its core strengths in mission-critical communica...
Executive/Board ChangesShareholder Meetings
Ribbon Communications shareholders back board, auditor and pay
Positive
Jun 5, 2026
Ribbon Communications Inc. held its annual meeting of stockholders on June 3, 2026, with approximately 93% of outstanding common stock represented, underscoring strong shareholder engagement. All nine director nominees were elected to serve until ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.