RBBN

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 18% sequential revenue growth driven by record IP Optical bookings and strong U.S. enterprise demand, despite a 19% sequential increase in Cloud & Edge product and services revenue. IP Optical segment reached an all-time high in product and service bookings with a 1.6x book-to-bill ratio, resulting in a 60% year-to-date backlog increase. Performance in Cloud & Edge was impacted by lower year-over-year revenue, but the company is working closely with Verizon to re-accelerate voice switch upgrades within their network to achieve higher velocity for the remainder of the year and into 2027. Strategic partnership with Salesforce for 'Agentforce' validates a new market for AI-powered voice applications, which management expects will drive demand for cloud-native session border controllers. U.S. enterprise growth was bolstered by major wins with Fortune 100 financial and energy firms, emphasizing a shift toward secure, carrier-grade voice and data infrastructure. Management attributed the sequential gross margin improvement to better fixed cost absorption and a favorable geographic mix, specifically increased high-margin U.S. sales. Full-year 2026 revenue guidance was moderated to $810 million–$840 million, primarily due to slower-than-expected deployment velocity for U.S. Tier 1 voice modernization projects. Management anticipates sequential revenue and earnings growth through Q3 and Q4, supported by the robust IP Optical backlog and a strong pipeline of mission-critical projects. The guidance framework assumes approximately $2 million per quarter in increased component and logistics costs, which the company aims to partially offset through surgical price increases. Supply chain limitations are expected to persist in the second half of 2026, particularly for core silicon and optical transceivers, given the high demand environment. The company expects a 'strong setup' for 2027 as delayed Tier 1 modernization projects move into higher velocity deployment phases. Component cost inflation is now estimated at $5 million for the year, up from initial estimates of a few million dollars, impacting consolidated gross margin targets. BEAD funding has been slow to materialize due to administrative friction and operator resistance, leading management to exclude significant BEAD-related revenue from the 2026 outlook. Geopolitical dynamics have not disrupted ECI operations, though management remains vigilant regarding global supply chain stability. The IP Optical segment remains EBITDA negative, with management focused on improving geographic mix and operational efficiency to reach breakeven. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management identified core silicon, memory, and optical transceivers as the primary areas of inflationary pressure. The company is using a 'surgical' approach to pass through costs, including reducing price guarantee timelines for hardware-integrated software sales. Verizon remained a 10% plus customer in Q2 and is expected to maintain that status in the second half of the year as deployment rates re-accelerate. The $25 million first-half revenue decline from Verizon accounts for a significant portion of the downward revision to full-year guidance. DCI projects doubled sequentially in Q2 and now represent approximately 10% of IP Optical revenue. Management sees a $50 million pipeline of incremental business over the next 12-18 months from new customers in this segment. Ribbon is expanding its enterprise edge portfolio to help large organizations completely eliminate legacy copper and Sonnet infrastructure. These products allow enterprises to preserve legacy TDM services while moving the demarcation point to a modern IP-based edge.

Interested in Ribbon Communications Inc.? Here are five stocks we like better. Q2 results exceeded guidance: Revenue reached $192 million, up 18% sequentially, while adjusted EBITDA improved to $12 million and non-GAAP gross margin rose to 49.3%. However, revenue remained down 13% year over year. IP Optical momentum was strong: The segment posted record bookings, a 1.6x book-to-bill ratio and backlog growth of more than 60% in 2026, driven by data-center interconnect, defense and infrastructure demand. It still reported a $6 million adjusted EBITDA loss. Ribbon lowered its full-year outlook amid slower Verizon deployments and higher costs: 2026 revenue is now expected at $810 million to $840 million, with adjusted EBITDA of $78 million to $88 million. Management expects delayed voice-modernization projects to support backlog and a stronger 2027. 3 Penny Stocks Analysts Believe Are Headed Higher Ribbon Communications (NASDAQ:RBBN) reported second-quarter 2026 revenue of $192 million, up 18% sequentially but down 13% from a year earlier, as stronger IP Optical demand and enterprise activity offset continued softness in its Cloud and Edge business tied largely to lower Verizon sales. Chief Executive Officer Bruce McClelland said revenue and earnings exceeded the midpoint of the company’s guidance. Adjusted EBITDA was $12 million, improving by $20 million from the first quarter, while non-GAAP gross margin rose 350 basis points sequentially to 49.3%. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit “We had a solid second quarter with key financial metrics above the midpoint of our guidance,” McClelland said, pointing to improving results in both operating segments. Product and services revenue excluding maintenance increased 28% sequentially, according to the company. Ribbon’s IP Optical Networks segment generated $82 million in second-quarter revenue, up 30% sequentially and down 2% year-over-year. The annual decline reflected the expiration of a legacy maintenance contract in Europe, partially offset by higher sales in the Americas and European defense markets. → This Tiny AI Supplier Could Be More Important Than the Chipmakers IP Optical product and services bookings reached an all-time high, with a book-to-bill ratio of 1.6 times. Overall backlog in the segment has increased by more than 60% so far in 2026, McClelland said. Segment gross margin rose 680 basis points sequentially to 35.2%, supported by product and geographic mix as well as higher fixed-cost absorption. Demand was broad-based across regional service providers, data-center interconnect projects, critical infrastructure customers and defense agencies. Ribbon said the number of new data-center interconnect projects doubled from the first quarter, with three projects awarded in the first quarter and six additional projects in the second quarter. → 2 Stocks Built to Thrive If Inflation Refuses to Fade McClelland said data-center interconnect-related projects represented more than 10% of IP Optical revenue during the quarter. The company also cited a new project in Africa to build an optical fiber backbone across several countries, connecting data centers and other services. Defense-related revenue increased nearly 60% both sequentially and year-over-year, according to Ribbon. The company recently introduced its “Network in a Box” offering for secure networking requirements in rugged environments. Despite strong bookings, the IP Optical segment posted an adjusted EBITDA loss of $6 million. Chief Financial Officer Rick Marmorek said the result improved by $11 million sequentially. Management said it is seeking additional efficiency improvements and noted that greater sales in North America and Europe could help margins, given comparatively lower margins in parts of Asia-Pacific. Cloud and Edge revenue was $111 million, up 11% from the first quarter but down 19% year-over-year. McClelland attributed the annual decline primarily to lower sales to Verizon, following record shipments and deployment activity related to the carrier’s Voice Network Transformation program in the prior-year period. Verizon and Vardi each remained customers accounting for more than 10% of Ribbon’s revenue in the quarter. Management expects Verizon to remain a 10%-plus customer in the second half, though it said voice switch upgrade deployments have progressed more slowly than anticipated. Ribbon has reduced its expected second-half growth rate because of the timing of U.S. Tier 1 voice-modernization projects, while saying that the delayed activity increases backlog and opportunity for 2027. McClelland said the company and Verizon remain aligned on accelerating deployments and capturing the cost savings associated with retiring legacy systems. Cloud and Edge gross margin was 59.8%, up 300 basis points sequentially but down 210 basis points from a year earlier. Marmorek said Ribbon has adjusted staffing that had been retained for anticipated service deployments and expects professional-services revenue and margins to improve in the second half. The segment’s adjusted EBITDA was $18 million, or 16% of revenue, up $10 million sequentially but down $19 million year-over-year. Enterprise sales, including large enterprise, critical infrastructure, government and defense customers, rose 42% sequentially. Ribbon reported significant voice communications infrastructure wins with large companies, including a global Microsoft Teams deployment for a major financial institution and a competitive replacement project with a major U.S. automobile manufacturer. The company also announced a partnership with Salesforce for its Agentforce Contact Center offering. Salesforce is using Ribbon’s cloud-native voice capabilities as part of the platform, which is deployed across multiple AWS instances. McClelland said Ribbon sees AI-enabled contact centers as a potential emerging market for secure, carrier-grade voice communications. Ribbon added five customer wins during the quarter in which AWS was selected as the deployment platform. The company said it is seeing increased interest in cloud-native communications platforms that can connect people, applications and AI services securely. For the third quarter, Ribbon forecast revenue of $215 million to $230 million and adjusted EBITDA of $26 million to $31 million. For the full year, it updated its outlook to revenue of $810 million to $840 million and adjusted EBITDA of $78 million to $88 million. Management said the outlook includes approximately $2 million per quarter of higher product costs tied to components and logistics, with potential partial offsets from price increases. The company expects supply limitations in the second half as demand rises for key technologies. Second-quarter cash flow from operations was negative $12 million, driven by lower billings and adjusted EBITDA. Ribbon ended the quarter with $45 million in cash and a net debt leverage ratio of 4.0 times. Net interest expense totaled $11 million, while non-GAAP net loss was $5 million, or $0.03 per diluted share. McClelland said Ribbon expects meaningful sequential improvement through the remainder of 2026 and a stronger 2027, supported by IP Optical bookings, enterprise demand, secure communications opportunities and the anticipated recovery in voice-network modernization deployments. Ribbon Communications Inc is a global provider of real-time communications software and network solutions for service providers and enterprises. The company's offerings address the full life cycle of voice, video and data transmission across fixed, mobile and cloud environments. Ribbon's technology portfolio is designed to enable secure, intelligent and interoperable communications in applications such as unified communications, contact centers, wholesale VoIP interconnect and next-generation 5G networks. Ribbon's product suite includes session border controllers (SBCs), which secure and interwork IP voice and multimedia sessions; Diameter signaling controllers for 4G/5G policy and charging control; network edge virtualization platforms; and analytics engines for service assurance and fraud management. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ribbon Communications Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Revenue increased 18% sequentially and Profitability improved by $20M; further gains expected in 2H 2026 Record IP Optical Quarterly Bookings led by growth in North America; Critical Infrastructure and DCI Wins Large Enterprise momentum, including selection by Salesforce for Agentforce Contact Center PLANO, Texas, July 28, 2026 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a global leader in real-time communications technology, IP routing, and optical networking solutions, today announced its financial results for the second quarter of 2026. Second Quarter 2026 Highlights Financial Results¹: Revenue was $192 million, compared to $221 million for the second quarter of 2025 GAAP Operating Loss was ($12) million, compared to income of $4 million for the second quarter of 2025 Non-GAAP Adjusted EBITDA was $12 million, compared to $32 million for the second quarter of 2025 GAAP Gross Margin was 47%, compared to 49.6% for the second quarter of 2025 Non-GAAP Gross Margin was 49.3%, compared to 52.1% for the second quarter of 2025 "We had meaningful sequential improvement in revenue and profitability in both of our operating segments in the second quarter, with key financial metrics above the mid-point of our guidance. Demand continued to strengthen in our IP Optical Networks business, resulting in a new record level of bookings, and one of our best quarters in the U.S. market," stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. "The Enterprise market was also a highlight in the quarter with a major Microsoft Teams Voice deployment with a top tier financial institution, and the announcement of our partnership with Salesforce for their new Agentforce Contact Center launch." Mr. McClelland continued, "For the balance of the year, we continue to expect sequential revenue growth and improved earnings. We see several larger opportunities in our IP Optical business that could provide additional upside, balanced by a more moderated view of voice modernization deployment acceleration with our U.S. Tier One Service Providers. We expect second-half revenue growth from several regions, including Telecom Operators and Critical Infrastructure Providers in EMEA and Southeast Asia, U.S. Government Federal Agencies, and U.S. Regional Service Providers investing in multi-purpose optical networks that support Data Center Interconnect (DCI), broadband internet access, and mobile backhaul." Rick Marmurek, Chief Financial Officer of Ribbon Communications, remarked, "Our financial results in the second quarter reflected improved execution in the business with healthy customer demand across most of our markets. Our financial priorities remain unchanged—execute efficiently, expand margins over time, and generate stronger cash flow as higher-value growth opportunities become a larger part of our business." Business Highlights: Planters Broadband Selects Ribbon to Launch New 400G/800G- Ready Optical Route Ribbon's Cloud Native Technology Partners with Agentforce Contact Center in the Public Cloud Ribbon Introduces Rapid Deployment Networking Solutions for Mobile Data Centers, Defense Agencies, and Critical Infrastructure Providers Ribbon and Comporium Expand Partnership to Advance Voice Infrastructure Modernization MGW Partners with Ribbon to Modernize Infrastructure and Expand Rural Connectivity Business Outlook2 For the third quarter of 2026, the Company projects revenue of $215 million to $230 million. Non-GAAP gross margin is projected in a range of 51% to 52%. Adjusted EBITDA is projected in a range of $26 million to $31 million. The Company has also adjusted full-year 2026 targets and now expects revenue in a range of $810 million to $840 million, non-GAAP gross margin in a range of 51% to 52%, and Adjusted EBITDA in a range of $78 million to $88 million. The Company's outlook is based on current indications for its business, which are subject to change. Upcoming Conference Schedule August 17-18, 2026: Rosenblatt 6th Annual Tech Summit 2026: The Age of AI August 25, 2026: Jefferies Semiconductor, IT Hardware & Communications Technology Conference Conference Call and Webcast InformationRibbon Communications will host a conference call to discuss the Company's financial results at 4:30 p.m. ET on Tuesday, July 28, 2026. Dial-in Information: US/Canada: 877-407-2991International: 201-389-0925Instant Telephone Access: Call me™ A live (listen-only) webcast and replay will be available on the Company's Investor Relations website at investors.ribboncommunications.com. Investor Contact+1 (978) [email protected] Media ContactCatherine Berthier+1 (646) [email protected] About RibbonRibbon Communications (Nasdaq: RBBN) is a global provider of voice communications software, IP routing, and optical networking to mobile and wireline service providers, enterprises, critical infrastructure and defense sectors. We support our customers' Path to Autonomous Networks by leveraging the latest AIOps automation platforms and Agentic AI technologies, helping them deliver better customer experiences, reduce operational costs, and achieve sustainable growth. To learn more about Ribbon, visit rbbn.com. Important Information Regarding Forward-Looking StatementsThis release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to a number of risks and uncertainties. All statements other than statements of historical facts contained in this release, including without limitation, statements regarding Company's projected financial results for the third quarter and full year 2026 and beyond; expected customer bookings, spend and timing; beliefs about the Company's business strategy, including new product introductions such as the Acumen AIOps platform; beliefs about the accelerating adoption of AI and the shift towards autonomous networking; and the timing of customer network transformation projects, are forward-looking statements. Without limiting the foregoing, the words "anticipates", "believes", "could", "estimates", "expects", "expectations", "intends", "may", "plans", "projects" and other similar language, whether in the negative or affirmative, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are unknown and/or difficult to predict and that may cause the Company's actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, unpredictable fluctuations in quarterly revenue and operating results; the impact of restructuring and cost-containment activities; impacts from new tariffs, the proposed termination of the USMCA and other trade restrictions or taxes on our products; supply chain disruptions resulting from component availability; impacts from the wars in the Middle East and Ukraine and related economic volatility and uncertainty resulting therefrom; the impact of military call-ups of our employees in Israel; material litigation; the impact of fluctuations in interest rates; material cybersecurity and data intrusion incidents, including any security breaches resulting in the theft, transfer, or unauthorized disclosure of customer, employee, or company information; our ability to comply with applicable domestic and foreign information security and privacy laws, regulations and technology platform rules or other obligations related to data privacy and security; failure to compete successfully against telecommunications equipment and networking companies; failure to grow our customer base or generate recurring business from our existing customers; credit risks; the timing of customer purchasing decisions and our recognition of revenues; macroeconomic conditions, including inflation; our ability to adapt to rapid technological and market changes; our ability to generate positive returns on our research and development; our ability to protect our intellectual property rights and obtain necessary licenses; our ability to maintain partner, reseller, distribution and vendor support and supply relationships; the potential for defects in our products; risks related to the terms of our credit agreement; higher risks in international operations and markets; currency fluctuations; unanticipated adverse changes in legal, regulatory or tax laws; future accounting pronouncements or changes in our accounting policies; and/or failure or circumvention of our controls and procedures. We therefore caution you against relying on any of these forward-looking statements. These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect the Company's business and results from operations. Additional information regarding these and other factors can be found in the Company's reports filed with the Securities and Exchange Commission, including, without limitation, its Form 10-K for the year ended December 31, 2025. Any forward-looking statement made by the Company in this release speaks only as of the date on which this release was first issued. The Company undertakes no obligation to update any forward-looking statement publicly or otherwise, whether as a result of new information, future developments or otherwise, except as required by law. Discussion of Non-GAAP Financial MeasuresThe Company's management uses several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of its business, making operating decisions, planning and forecasting future periods, and determining payments under compensation programs. The Company considers the use of non-GAAP financial measures helpful in assessing the core performance of its continuing operations and when planning and forecasting future periods. The Company's annual financial plan is prepared on a non-GAAP basis and is approved by its board of directors. In addition, budgeting and forecasting for revenue and expenses are conducted on a non-GAAP basis, and actual results on a non-GAAP basis are assessed against the annual financial plan. The Company defines continuing operations as the ongoing results of its business adjusted for certain expenses and credits, as described below. The Company believes that providing non-GAAP information to investors allows them to view the Company's financial results in the way its management views them and helps investors to better understand the Company's core financial and operating performance and evaluate the efficacy of the methodology and information used by its management to evaluate and measure such performance. While the Company's management uses non-GAAP financial measures as tools to enhance its understanding of certain aspects of the Company's financial performance, management does not consider these measures to be a substitute for, or superior to, GAAP measures. In addition, the Company's presentations of these measures may not be comparable to similarly titled measures used by other companies. These non-GAAP financial measures should not be considered alternatives for, or in isolation from, the financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures. In particular, many of the adjustments to the Company's financial measures reflect the exclusion of items that are recurring and will be reflected in its financial results for the foreseeable future. Stock-Based CompensationThe expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. The Company believes that presenting non-GAAP operating results that exclude stock-based compensation provides investors with visibility and insight into its management's method of analysis and its core operating performance. Amortization of Acquired Technology (including software licenses); Amortization of Acquired Intangible AssetsAmortization amounts are inconsistent in frequency and amount and are significantly impacted by the timing and size of acquisitions. Amortization of acquired technology is reported separately within Cost of revenue and Amortization of acquired intangible assets is reported separately within Operating expenses. These items are reported collectively as Amortization of acquired intangible assets in the accompanying reconciliations of non-GAAP and GAAP financial measures. The Company believes that excluding non-cash amortization of these intangible assets facilitates the comparison of its financial results to its historical operating results and to other companies in its industry as if the acquired intangible assets had been developed internally rather than acquired. Litigation CostsIn connection with certain ongoing litigation where Ribbon is the defendant (as described in the Company's Commitments and Contingencies footnotes in its Form 10-Qs and Form 10-Ks filed with the SEC), the Company has incurred litigation costs beginning in 2023. These costs are included as a component of general and administrative expense. The Company believes that such costs are not part of its core business or ongoing operations, are unplanned, and generally are not within its control. Accordingly, the Company believes that excluding litigation costs related to these specific legal matters facilitates the comparison of the Company's financial results to its historical operating results and to other companies in its industry. Cybersecurity IncidentThe Company has recorded expenses associated with responding to and remediating a cybersecurity incident, including costs for external legal services, cybersecurity experts, and IT restoration activities. The Company believes that excluding these expenses facilitates the comparison of its financial results to its historical operating performance and to other companies in its industry, as these costs are non‑recurring in nature and are not associated with future revenue streams or ongoing operational benefits. Acquisition-, Disposal- and Integration-RelatedThe Company considers certain acquisition-, disposal- and integration-related costs to be unrelated to the organic continuing operations of the Company and its acquired businesses. Such costs are generally not relevant to assessing or estimating the long-term performance of the acquired assets. In 2025, the Company recorded expense for legal and professional fees associated with contemplated corporate development activities. The Company excludes such acquisition-, disposal- and integration-related costs to allow more accurate comparisons of its financial results to its historical operations and the financial results of less acquisitive peer companies and allows management and investors to consider the ongoing operations of the business both with and without such expenses. Restructuring and RelatedThe Company has recorded restructuring and related expense to streamline operations and reduce operating costs by closing and consolidating certain facilities and reducing its worldwide workforce. The Company believes that excluding restructuring and related expense facilitates the comparison of its financial results to its historical operating results and to other companies in its industry, as there are no future revenue streams or other benefits associated with these costs. Preferred Stock and Warrant Liability Mark-to-Market AdjustmentThe Company recorded adjustments to the fair value of its Series A Preferred Stock and Warrants to purchase shares of the Company's common stock in Other (expense) income, net. Both of these instruments were issued in March 2023 in connection with the Company's private placement and have been classified as liabilities and marked to market each reporting period until the Series A Preferred Stock was fully redeemed on June 25, 2024. The Warrant liability remains outstanding and will continue to be marked to market each reporting period. The Company excluded these gains and losses from the change in the fair value of these liabilities because it believes that such gains or losses were not part of its core business or ongoing operations. Tax Effect of Non-GAAP AdjustmentsThe Non-GAAP income tax provision is presented based on an estimated tax rate applied against forecasted annual non-GAAP income. The Company computes its non-GAAP estimated tax rate using its estimated GAAP annual effective tax rate for the period and adjusting for the tax effect of pre-tax non-GAAP adjustments. The Company computes a single annual non-GAAP rate for the Company and applies that rate (rather than multiple rates by jurisdiction) to its consolidated quarterly results. The Company expects that this methodology will provide a consistent rate throughout the year and allow investors to better understand the impact of income taxes on its results. Due to the methodology applied to its estimated annual tax rate, the Company's estimated tax rate on non-GAAP income will differ from its GAAP tax rate and from its actual tax liabilities. Adjusted EBITDAThe Company uses Adjusted EBITDA as a supplemental measure to review and assess its performance. The Company calculates Adjusted EBITDA by excluding from income (loss) from operations: depreciation; stock-based compensation; amortization of acquired intangible assets; certain litigation costs; expenses related to cybersecurity incidents; acquisition-, disposal- and integration-related expense; and restructuring and related expense. In general, the Company excludes the expenses that it considers to be non-cash and/or not a part of its ongoing operations. The Company may exclude other items in the future that have those characteristics. Adjusted EBITDA is a non-GAAP financial measure that is used by the investing community for comparative and valuation purposes. The Company discloses this metric to support and facilitate dialogue with research analysts and investors. Other companies may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure. View original content to download multimedia:https://www.prnewswire.com/news-releases/ribbon-communications-inc-reports-second-quarter-2026-financial-results-302836894.html

First quarter performance was impacted by a slower-than-normal start to the year, characterized by lower sales to service providers across multiple regions and reduced voice network transformation activity. Management made a deliberate strategic decision to retain key technical resources and expertise despite lower first-half revenue to ensure execution readiness for an anticipated volume ramp in the second half. The IP Optical segment experienced a mix shift toward India, specifically with Bharti Airtel, which provided stronger-than-expected demand but contributed to lower consolidated gross margins. Cloud and Edge segment declines were driven by lower professional services revenue and reduced spending from smaller U.S. service providers, though Verizon remained a 10%-plus customer. Operational results were further pressured by FX headwinds, particularly the strong Israeli shekel, which increased R&D and operating expenses. Strategic momentum is shifting toward cloud-native technologies, evidenced by full commercial deployment of cloud-native SBC solutions in Japan and a new partnership with AWS. The company is pivoting toward high-growth verticals including data center interconnect (DCI) and critical infrastructure, securing five new awards from major energy producers. Management anticipates a much stronger second half of 2026, driven by a return to higher deployment levels at Verizon and a reacceleration of voice network modernization projects. Second quarter guidance assumes meaningful revenue acceleration from North American enterprise customers and continued sequential improvement in Tier 1 service provider spending. The IP Optical segment is expected to grow faster than Cloud and Edge in the second quarter, supported by a strong 1.5x book-to-bill ratio and a healthy pipeline in EMEA and Asia Pac. Future growth is tied to the launch of the Acumen AI Ops and automation platform, with the first lead customer expected to go live later in the second quarter. The company expects incremental business from over 30 customers who have been awarded BEAD grants once federal funds are officially distributed for broadband infrastructure. A significant leadership transition was announced with CFO John Townsend departing and Rick Marmurek, a 15-year company veteran, being promoted to the CFO role. Gross margins were negatively impacted by approximately 300 basis points due to lower professional services revenue and elevated service expenses related to maintaining staff for future projects. IP Optical maintenance revenue in Europe declined following the completion of a long-term support contract with a Tier 1 provider, creating a year-over-year headwind. U.S. Federal market projects remain a point of caution, with management awaiting the transition of large programs into full deployment before capacity expansion revenue can be realized. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management clarified that while Verizon deployment rates will improve throughout Q2, the primary growth drivers for the quarter are North American enterprise and critical infrastructure projects. EMEA and Africa are also expected to contribute significantly to the sequential step-up before the broader service provider recovery in the second half. The opportunity lies in regional service providers leveraging their fiber-to-the-home infrastructure to pick up interconnect traffic for new regional data centers. Ribbon views this as a 'sweet spot' for their middle-mile IP MPLS and optical transport solutions, particularly as BEAD funding becomes available. Ribbon is targeting two AI areas: using the Acumen platform to automate network operations and providing secure voice boundaries for enterprise Agentic AI applications. Management believes voice will be the primary interface for Agentic AI, allowing Ribbon to repurpose its SBC platforms for these emerging use cases. Visibility has improved over the last 90 days, with the India market remaining a strong catalyst for revenue performance. Management expressed increased confidence in the enterprise and critical infrastructure sectors for the remainder of the year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

This article first appeared on GuruFocus. Release Date: April 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ribbon Communications Inc (NASDAQ:RBBN) reported stronger-than-expected demand in India, particularly with Bharti Airtel, which was a 10%-plus customer in the quarter. The company achieved key wins in the rapidly growing data center interconnect space across multiple geographies, including Europe, the U.S., and Asia. Ribbon Communications Inc (NASDAQ:RBBN) established a new partnership with Amazon Web Services, reinforcing its leadership position in cloud-native secure voice infrastructure. The company has a strong pipeline of projects, including major network upgrades in Europe and Africa, and continued growth in India. Ribbon Communications Inc (NASDAQ:RBBN) is preparing to launch its new AIOps and automation platform, Acumen, with lead customer Optimum, which is expected to go live later this quarter. First quarter revenue decreased by 10% from the prior year, driven by lower sales in both Cloud and Edge and IP Optical Networks segments. Consolidated non-GAAP gross margin was abnormally low at 45.8%, down 280 basis points year-on-year, primarily due to lower professional services revenue. Adjusted EBITDA for the quarter was a loss of $8 million, a $14 million decrease from the prior year, driven by low revenues and gross margins. Sales to service providers in the Asia-Pac region were down year-over-year, following a strong performance from the region last year. The company experienced lower sales than anticipated to U.S. Tier 1 service providers, impacting overall performance. Warning! GuruFocus has detected 4 Warning Signs with RBBN. Is RBBN fairly valued? Test your thesis with our free DCF calculator. Q: Bruce, you seem confident about improvement in the second quarter, but Verizon's cloud and edge improvements seem to be expected in the second half. Can you elaborate on the timing of Verizon's performance? A: Bruce McClelland, CEO: We don't expect a significant revenue increase from Verizon in the second quarter, but deployment rates should improve progressively. Growth in Q2 will be driven by strong enterprise customer performance in North America and robust activity in the EMEA region, particularly in Europe and Africa. The second half will see broader growth, including Verizon and US federal market expansions. Q: Can you explain the correlation between data centers in rural areas and regional service providers? A: Bruce McClelland, CEO: The correlation is not about regional service providers building data centers but leveraging their network infrastructure for fiber-to-the-home and capacity expansions. This allows them to interconnect with regional data centers, enhancing traffic and connectivity, especially in North America and international markets. Q: Could you elaborate on the Agentic AI opportunity and how Ribbon supports it? A: Bruce McClelland, CEO: We are launching a platform called Acumen, which uses agentic AI to automate network management. It builds on our analytics platform, feeding data into a large language model. Additionally, as agentic AI becomes more prevalent, we see a voice-driven connection between users and applications, where our voice platforms can facilitate secure voice traffic. Q: What are the expected growth rates by segment for Q2, and how do they compare to recent bookings? A: Bruce McClelland, CEO: We expect growth in both segments in Q2, with IP Optical likely growing more than Cloud and Edge. Recent bookings have been solid, and we anticipate growth from data center interconnect projects and critical infrastructure deployments. Cloud and Edge growth will accelerate as Verizon deployments pick up in the second half. Q: Can you provide more detail on the year-over-year declines in Cloud and Edge and IP Optical segments? A: Bruce McClelland, CEO: The decline in Cloud and Edge was not primarily due to Verizon but rather smaller projects with various service providers. For IP Optical, the decline was mainly in Europe, with consistent performance in Asia-Pac, particularly India. European market declines were due to project-based nature of critical infrastructure customers. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Growing Demand Increases Confidence in Sequential and 2nd Half 2026 Growth Momentum Building in New Markets including AIOps and Data Center Interconnect First Quarter Revenue in Line with Expectations PLANO, Texas, April 28, 2026 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a global leader in real-time communications technology and IP optical networking solutions, today announced its financial results for the first quarter of 2026. Ribbon Communications is dedicated to assisting the world's largest service providers, enterprises, and critical infrastructure operators in modernizing and safeguarding their networks and services. First Quarter 2026 Highlights Financial Results¹: Revenue was $163 million, compared to $181 million for the first quarter of 2025 GAAP Operating Loss was ($32) million, compared to ($20) million for the first quarter of 2025 Non-GAAP Adjusted EBITDA was ($8) million, compared to $6 million for the first quarter of 2025 GAAP Gross Margin was 42.9%, compared to 45.4% for the first quarter of 2025 Non-GAAP Gross Margin was 45.8%, compared to 48.6% for the first quarter of 2025 "We remain confident in the underlying demand environment and continue to expect meaningful second-half growth across multiple end markets including voice transformation projects with U.S. Service Providers and Federal agencies, and growing IP and Optical deployments in the U.S. and EMEA regions, with significant improvement beginning in the second quarter," stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. "Revenue in the first quarter was in line with expectations and reflected the timing dynamics we outlined earlier this year. While margins were pressured by a slower deployment pace with key U.S. Tier 1 Service Providers and higher sales in India, we expect margin expansion as revenue increases throughout the year." Mr. McClelland continued, "We were particularly pleased by several new Data Center Interconnect wins in the first quarter, as well as multiple new secure private optical network awards supporting major energy producers and distributors in multiple countries. Importantly, we are gaining traction with our Ribbon Acumen™ AIOps platform with several new customer engagements and a growing pipeline of POCs. Furthermore, we believe our recent Strategic Collaboration Agreement with Amazon Web Services further strengthens our leadership position in cloud-native communications infrastructure to enable Agentic and AI voice capabilities." John Townsend, Chief Financial Officer of Ribbon Communications, remarked, "We continue to make deliberate investments to support our expected second half revenue growth including maintaining higher professional services capacity and retaining highly skilled resources. Notwithstanding this, we are staying focused on controlling expenses and driving efficiencies, helping mitigate currency headwinds." Business Highlights: Ribbon Provides Edge Solutions for Salt's Enterprise Voice Expansion Ribbon and AWS Transform Cloud Deployment for Service Providers and Enterprises Business Outlook2 For the second quarter of 2026, the Company projects revenue of $185 million to $195 million. Non-GAAP gross margin is projected in a range of 49% to 50%. Adjusted EBITDA is projected in a range of $9 million to $14 million. The Company's outlook is based on current indications for its business, which are subject to change. Upcoming Conference Schedule May 12, 2026: 21st Annual Needham Technology, Media, & Consumer 1x1 Conference May 21, 2026: B. Riley Securities 26th Annual Investor Conference June 17, 2026: TD Cowen and CEO Summit Inaugural Disruptive Technology Summit June 23, 2026: Northland Growth Conference Conference Call and Webcast Information Ribbon Communications will host a conference call to discuss the Company's financial results at 4:30 p.m. ET on Tuesday, April 28, 2026. Dial-in Information: US/Canada: 877-407-2991 International: 201-389-0925 Instant Telephone Access: Call me™ A live (listen-only) webcast and replay will be available on the Company's Investor Relations website at investors.ribboncommunications.com. Investor Contact +1 (978) 614-8050 [email protected] Media Contact Catherine Berthier +1 (646) 741-1974 [email protected] About Ribbon Ribbon Communications (Nasdaq: RBBN) is a global provider of voice communications software, IP routing, and optical networking to mobile and wireline service providers, enterprises, critical infrastructure and defense sectors. We support our customers' Path to Autonomous Networks by leveraging the latest AIOps automation platforms and Agentic AI technologies, helping them deliver better customer experiences, reduce operational costs, and achieve sustainable growth. To learn more about Ribbon visit rbbn.com. Important Information Regarding Forward-Looking Statements This release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to a number of risks and uncertainties. All statements other than statements of historical facts contained in this release, including without limitation, statements regarding Company's projected financial results for the second quarter of 2026 and beyond; expected customer spend and timing; beliefs about the Company's business strategy, including new product introductions such as the Acumen AIOps platform; beliefs about the accelerating adoption of AI and the shift towards autonomous networking; and the timing of customer network transformation projects, are forward-looking statements. Without limiting the foregoing, the words "anticipates", "believes", "could", "estimates", "expects", "expectations", "intends", "may", "plans", "projects" and other similar language, whether in the negative or affirmative, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are unknown and/or difficult to predict and that may cause the Company's actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, unpredictable fluctuations in quarterly revenue and operating results; the impact of restructuring and cost-containment activities; increases in tariffs, trade restrictions or taxes on our products; supply chain disruptions resulting from component availability and/or geopolitical instabilities and disputes (including those related to the wars in the Middle East and Ukraine); other impacts from the wars in the Middle East and Ukraine and related economic volatility and uncertainty resulting therefrom; the impact of military call-ups of our employees in Israel; material litigation; the impact of fluctuations in interest rates; material cybersecurity and data intrusion incidents, including any security breaches resulting in the theft, transfer, or unauthorized disclosure of customer, employee, or company information; our ability to comply with applicable domestic and foreign information security and privacy laws, regulations and technology platform rules or other obligations related to data privacy and security; failure to compete successfully against telecommunications equipment and networking companies; failure to grow our customer base or generate recurring business from our existing customers; credit risks; the timing of customer purchasing decisions and our recognition of revenues; macroeconomic conditions, including inflation; our ability to adapt to rapid technological and market changes; our ability to generate positive returns on our research and development; our ability to protect our intellectual property rights and obtain necessary licenses; our ability to maintain partner, reseller, distribution and vendor support and supply relationships; the potential for defects in our products; risks related to the terms of our credit agreement; higher risks in international operations and markets; currency fluctuations; unanticipated adverse changes in legal, regulatory or tax laws; future accounting pronouncements or changes in our accounting policies; and/or failure or circumvention of our controls and procedures. We therefore caution you against relying on any of these forward-looking statements. These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect the Company's business and results from operations. Additional information regarding these and other factors can be found in the Company's reports filed with the Securities and Exchange Commission, including, without limitation, its Form 10-K for the year ended December 31, 2025. Any forward-looking statement made by the Company in this release speaks only as of the date on which this release was first issued. The Company undertakes no obligation to update any forward-looking statement publicly or otherwise, whether as a result of new information, future developments or otherwise, except as required by law. Discussion of Non-GAAP Financial Measures The Company's management uses several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of its business, making operating decisions, planning and forecasting future periods, and determining payments under compensation programs. The Company considers the use of non-GAAP financial measures helpful in assessing the core performance of its continuing operations and when planning and forecasting future periods. The Company's annual financial plan is prepared on a non-GAAP basis and is approved by its board of directors. In addition, budgeting and forecasting for revenue and expenses are conducted on a non-GAAP basis, and actual results on a non-GAAP basis are assessed against the annual financial plan. The Company defines continuing operations as the ongoing results of its business adjusted for certain expenses and credits, as described below. The Company believes that providing non-GAAP information to investors allows them to view the Company's financial results in the way its management views them and helps investors to better understand the Company's core financial and operating performance and evaluate the efficacy of the methodology and information used by its management to evaluate and measure such performance. While the Company's management uses non-GAAP financial measures as tools to enhance its understanding of certain aspects of the Company's financial performance, management does not consider these measures to be a substitute for, or superior to, GAAP measures. In addition, the Company's presentations of these measures may not be comparable to similarly titled measures used by other companies. These non-GAAP financial measures should not be considered alternatives for, or in isolation from, the financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures. In particular, many of the adjustments to the Company's financial measures reflect the exclusion of items that are recurring and will be reflected in its financial results for the foreseeable future. Stock-Based Compensation The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. The Company believes that presenting non-GAAP operating results that exclude stock-based compensation provides investors with visibility and insight into its management's method of analysis and its core operating performance. Amortization of Acquired Technology (including software licenses); Amortization of Acquired Intangible Assets Amortization amounts are inconsistent in frequency and amount and are significantly impacted by the timing and size of acquisitions. Amortization of acquired technology is reported separately within Cost of revenue and Amortization of acquired intangible assets is reported separately within Operating expenses. These items are reported collectively as Amortization of acquired intangible assets in the accompanying reconciliations of non-GAAP and GAAP financial measures. The Company believes that excluding non-cash amortization of these intangible assets facilitates the comparison of its financial results to its historical operating results and to other companies in its industry as if the acquired intangible assets had been developed internally rather than acquired. Litigation Costs In connection with certain ongoing litigation where Ribbon is the defendant (as described in the Company's Commitments and Contingencies footnotes in its Form 10-Qs and Form 10-Ks filed with the SEC, the Company has incurred litigation costs beginning in 2023. These costs are included as a component of general and administrative expense. The Company believes that such costs are not part of its core business or ongoing operations, are unplanned, and generally are not within its control. Accordingly, the Company believes that excluding litigation costs related to these specific legal matters facilitates the comparison of the Company's financial results to its historical operating results and to other companies in its industry. Cybersecurity Incident The Company has recorded expenses associated with responding to and remediating a cybersecurity incident, including costs for external legal services, cybersecurity experts, and IT restoration activities. The Company believes that excluding these expenses facilitates the comparison of its financial results to its historical operating performance and to other companies in its industry, as these costs are non‑recurring in nature and are not associated with future revenue streams or ongoing operational benefits. Acquisition-, Disposal- and Integration-Related The Company considers certain acquisition-, disposal- and integration-related costs to be unrelated to the organic continuing operations of the Company and its acquired businesses. Such costs are generally not relevant to assessing or estimating the long-term performance of the acquired assets. In 2025, the Company recorded expense for legal and professional fees associated with contemplated corporate development activities. The Company excludes such acquisition-, disposal- and integration-related costs to allow more accurate comparisons of its financial results to its historical operations and the financial results of less acquisitive peer companies and allows management and investors to consider the ongoing operations of the business both with and without such expenses. Restructuring and Related The Company has recorded restructuring and related expense to streamline operations and reduce operating costs by closing and consolidating certain facilities and reducing its worldwide workforce. The Company believes that excluding restructuring and related expense facilitates the comparison of its financial results to its historical operating results and to other companies in its industry, as there are no future revenue streams or other benefits associated with these costs. Preferred Stock and Warrant Liability Mark-to-Market Adjustment The Company recorded adjustments to the fair value of its Series A Preferred Stock and Warrants to purchase shares of the Company's common stock in Other (expense) income, net. Both of these instruments were issued in March 2023 in connection with the Company's private placement and have been classified as liabilities and marked to market each reporting period until the Series A Preferred Stock was fully redeemed on June 25, 2024. The Warrant liability remains outstanding and will continue to be marked to market each reporting period. The Company excluded these gains and losses from the change in the fair value of these liabilities because it believes that such gains or losses were not part of its core business or ongoing operations. Tax Effect of Non-GAAP Adjustments The Non-GAAP income tax provision is presented based on an estimated tax rate applied against forecasted annual non-GAAP income. The Company computes its non-GAAP estimated tax rate using its estimated GAAP annual effective tax rate for the period and adjusting for the tax effect of pre-tax non-GAAP adjustments. The Company computes a single annual non-GAAP rate for the Company and applying that rate (rather than multiple rates by jurisdiction) to its consolidated quarterly results. The Company expects that this methodology will provide a consistent rate throughout the year and allow investors to better understand the impact of income taxes on its results. Due to the methodology applied to its estimated annual tax rate, the Company's estimated tax rate on non-GAAP income will differ from its GAAP tax rate and from its actual tax liabilities. Adjusted EBITDA The Company uses Adjusted EBITDA as a supplemental measure to review and assess its performance. The Company calculates Adjusted EBITDA by excluding from income (loss) from operations: depreciation; stock-based compensation; amortization of acquired intangible assets; certain litigation costs; expenses related to cybersecurity incidents; acquisition-, disposal- and integration-related expense; and restructuring and related expense. In general, the Company excludes the expenses that it considers to be non-cash and/or not a part of its ongoing operations. The Company may exclude other items in the future that have those characteristics. Adjusted EBITDA is a non-GAAP financial measure that is used by the investing community for comparative and valuation purposes. The Company discloses this metric to support and facilitate dialogue with research analysts and investors. Other companies may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure. View original content to download multimedia:https://www.prnewswire.com/news-releases/ribbon-communications-inc-reports-first-quarter-2026-financial-results-302756071.html

Ribbon reported Q1 revenue of $163 million (down 10% y/y), a non‑GAAP gross margin of 45.8% (down 280 bps) and an adjusted EBITDA loss of $8 million; it guided Q2 revenue of $185–195 million and adjusted EBITDA of $9–14 million while citing a 1.1x consolidated book‑to‑bill and confidence in a stronger second half. Demand was mixed: India was a standout (Bharti Airtel was a >10% customer) and IP Optical bookings were strong at 1.5x, but softer sales to U.S. Tier‑1s (notably slower Verizon deployments) and lower professional services hurt margins. Operational momentum includes multiple DCI wins, cloud‑native SBCs now live on AWS, and the upcoming Acumen AIOps rollout with Optimum; CFO John Townsend is leaving and Rick Marmurek is promoted, with ending cash of $70 million and net leverage of 2.9x. Interested in Ribbon Communications Inc.? Here are five stocks we like better. 3 Penny Stocks Analysts Believe Are Headed Higher Ribbon Communications (NASDAQ:RBBN) reported first-quarter 2026 results that management said were consistent with expectations for a slower start to the year, while reiterating confidence in a stronger second half driven by improving customer visibility, solid bookings, and an expanding pipeline across regions and end markets. Ribbon generated first-quarter revenue of $163 million, down 10% from the prior year. Chief Executive Officer Bruce McClelland said results reflected the “industry dynamics” discussed on the prior earnings call, with customer timing creating “a slower than normal start to the year.” → Pipelines and Automation: 2 Energy Plays Built for Any Oil Price McClelland noted first-quarter sales came in near the midpoint of guidance, with stronger-than-expected demand in India, particularly from Bharti Airtel, which was a 10%+ customer during the quarter. That strength was offset by lower-than-anticipated sales to U.S. Tier 1 service providers, contributing to an unfavorable mix shift that weighed on profitability. On a consolidated basis, non-GAAP gross margin was 45.8%, down 280 basis points year over year. Chief Financial Officer John Townsend said margin was “abnormally low” primarily because Ribbon carried higher service costs to support an anticipated second-half ramp, while professional services revenue came in lower than expected. → Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales Tank Adjusted EBITDA was a loss of $8 million, which Townsend attributed mainly to lower revenue and lower gross margins. Non-GAAP net loss was $8 million, equating to a non-GAAP diluted loss per share of $0.05. Ribbon said revenue fell in both operating segments versus last year: Cloud and Edge declined 8% and IP Optical Networks declined 14%. IP Optical Networks: Revenue of $63 million, down 14% year over year, driven primarily by lower sales in Asia Pacific and lower maintenance revenue, according to Townsend. Segment gross margin was 28.4%, similar to last year but below the company’s target level due to a higher mix of India revenue and fixed cost absorption. Segment Adjusted EBITDA was a loss of $16 million. Cloud and Edge: Revenue of $100 million, down 8% year over year. Gross margin was 56.8%, down 575 basis points, reflecting the same dynamic of lower professional services revenue while carrying higher service costs in preparation for anticipated deployment increases. Segment Adjusted EBITDA was $8 million, or 8% of revenue. → Meta Platforms Earnings Preview: What to Watch in Q1 2026 Report McClelland highlighted a key demand indicator: overall consolidated book-to-bill was 1.1x in the quarter, with IP Optical at 1.5x. He characterized IP Optical bookings as “strong,” saying they point to “a much improved quarter ahead.” In Cloud and Edge, McClelland said service provider sales declined about 5% year over year, primarily across a number of smaller U.S. customers. Verizon remained a 10%+ customer in the quarter, but the company said voice network transformation activity was lower than expected, affecting first-quarter results. McClelland said deployment rates are increasing and the company expects activity to “accelerate in the second half of the year,” adding that expansion into the Frontier footprint remains “a significant incremental opportunity.” During Q&A, McClelland told Rosenblatt’s Michael Genovese that Ribbon does not expect a “significant increase in revenue” in the second quarter from its top customer, though he expects deployment rates to “progressively improve throughout the quarter.” He said second-quarter growth is expected to be driven more by North American enterprise demand and strength in EMEA, including Africa. India was a recurring theme. McClelland said demand there was stronger than initially expected, supporting increased confidence in the region’s outlook. In response to a question from Rustam Kanga, McClelland said visibility into India has improved since the prior quarter and described the market as “remaining very strong,” calling it a catalyst that helped the company’s first-quarter revenue performance. In the enterprise, defense, and critical infrastructure vertical, Ribbon said aggregate sales declined about 6% year over year, reflecting lower Cloud and Edge sales to U.S. government agencies, partially offset by increased IP Optical business with international defense agencies. McClelland said voice modernization projects with several U.S. federal agencies continue progressing toward full deployment in coming months, with expected capacity expansion and new projects in the second half. McClelland outlined several first-quarter wins in IP Optical, including three new Data Center Interconnect (DCI) wins across Europe, the U.S., and Asia, as well as five new project awards tied to secure private networks for energy producers and distributors in countries including Germany, Vietnam, Singapore, and Colombia. He also cited an award in Africa for a fiber expansion across three countries that he said is expected to exceed $10 million, with first revenue anticipated in the second quarter. He added that Ribbon now has “more than 30 customers” in the U.S. that have deployed its IP and optical products and have been awarded BEAD grants, with expected incremental business once funds are distributed. In Cloud and Edge, McClelland said Ribbon reached full commercial deployment of its cloud-native session border controller (SBC) solution with a leading service provider in Japan and has an “extensive program” underway with a Tier 1 provider in Europe. He also pointed to a partnership with Amazon Web Services, first announced at MWC in February, and said the company’s “first two customers are now live and providing commercial service” with Ribbon’s cloud-native SBC running in AWS. Ribbon also discussed its upcoming Acumen AIOps and automation platform. McClelland said the product is expected to go live later in the second quarter with lead customer Optimum, and that the pipeline spans use cases including mobile and fixed wireless, E911, and fiber-to-the-home service assurance. In discussing “agentic AI,” he described Acumen as adding an agentic AI-driven operations layer on top of analytics already deployed in customer networks, and said separate opportunities may emerge as enterprises increasingly connect voice interfaces to agentic AI applications. For the second quarter, Ribbon guided to revenue of $185 million to $195 million and Adjusted EBITDA of $9 million to $14 million. McClelland said the company expects revenue acceleration from enterprise and EMEA customers, continued sequential improvement at major Tier 1 service providers, and ongoing strength in India, followed by broad-based growth in the second half, including “a return to higher deployment levels at Verizon.” Ribbon also announced a leadership change in finance. McClelland said Townsend will be leaving the company for another opportunity and that Rick Marmurek has been promoted to Chief Financial Officer. Marmurek said he is “very excited” about the new role and looks forward to driving “sustainable growth and operational excellence.” On the balance sheet and cash flow, Townsend said cash flow from operations was a usage of $22 million in the quarter, with ending cash of $70 million and a net debt leverage ratio of 2.9x. Capital expenditures were $3 million, which he said was in line with the company’s normal run rate. Ribbon Communications Inc is a global provider of real-time communications software and network solutions for service providers and enterprises. The company's offerings address the full life cycle of voice, video and data transmission across fixed, mobile and cloud environments. Ribbon's technology portfolio is designed to enable secure, intelligent and interoperable communications in applications such as unified communications, contact centers, wholesale VoIP interconnect and next-generation 5G networks. Ribbon's product suite includes session border controllers (SBCs), which secure and interwork IP voice and multimedia sessions; Diameter signaling controllers for 4G/5G policy and charging control; network edge virtualization platforms; and analytics engines for service assurance and fraud management. The article "Ribbon Communications Q1 Earnings Call Highlights" was originally published by MarketBeat.