ADTRAN posted preliminary financial results for the first quarter of 2025, reporting $247.7 million in revenue—a 10% year-over-year increase that exceeded the mid-point of its prior outlook. The company achieved a GAAP gross margin of 38.5% and a non-GAAP gross margin of 42.6%, with operating margins landing at the high end of expectations. Despite a GAAP loss of $0.13 per share, ADTRAN delivered non-GAAP earnings of $0.03 per share, supported by solid operational performance and rising cash flows.
Net cash provided by operating activities totaled $41.6 million, while cash and cash equivalents increased sequentially by $23.8 million to $101.3 million. The company credited its globally diversified supply chain and strong customer relationships for helping it navigate shifting trade and macroeconomic conditions. Chairman and CEO Tom Stanton noted that the first quarter demonstrated the strength of ADTRAN’s business model and improvements in operating efficiency, positioning the company for continued momentum into Q2.
Looking ahead, ADTRAN expects second-quarter revenue between $247.5 million and $262.5 million and non-GAAP operating margins in the range of 0% to 4%. The company remains focused on margin expansion, supply chain agility, and capitalizing on global broadband infrastructure opportunities.
- Q1 2025 revenue: $247.7 million, up 10% YoY and above outlook mid-point.
- GAAP gross margin: 38.5%; non-GAAP gross margin: 42.6%.
- GAAP EPS: -$0.13; Non-GAAP EPS: $0.03.
- Net cash from operations: $41.6 million; cash balance increased to $101.3 million.
- Q2 revenue guidance: $247.5M–$262.5M; non-GAAP operating margin guidance: 0%–4%.
“We executed on all fronts during the first quarter,” said Tom Stanton, Chairman and CEO of ADTRAN. “Our strong performance reinforces ADTRAN’s improved operating efficiency and the strength of our business model.”
