Ribbon Communications reported fourth-quarter and full-year 2025 financial results, citing customer project delays and budget timing as headwinds in Q4, while highlighting strong bookings momentum and cash flow improvements tied to voice modernization programs. Revenue declined year over year in the quarter, but full-year revenue edged higher, supported by expanding Tier 1 service provider activity and international deployments.
For the fourth quarter, Ribbon posted revenue of $227 million, down from $251 million a year earlier, with GAAP operating income of $9 million and non-GAAP adjusted EBITDA of $40 million. Management said delayed deployments reflected timing rather than lost business, with a record level of product and services bookings in the quarter, including more than $50 million tied to new voice modernization programs across multiple regions.
For the full year, revenue reached $845 million, up from $834 million in 2024, while non-GAAP adjusted EBITDA totaled $107 million. Looking ahead, the company guided to full-year 2026 revenue of $840 million to $875 million, citing cautious assumptions for the first half due to lower U.S. federal spending and industry M&A–related timing uncertainty, while positioning for growth in AI-driven operations, defense markets, and autonomous networking initiatives.
- Q4 2025 revenue: $227 million (vs. $251 million in Q4 2024)
- Full-year 2025 revenue: $845 million (vs. $834 million in 2024)
- Q4 2025 non-GAAP adjusted EBITDA: $40 million
- Full-year 2025 non-GAAP adjusted EBITDA: $107 million
- U.S. Tier 1 service provider sales: up more than 25% in 2025
- Record quarterly bookings: over $50 million tied to new voice modernization programs
- 2026 revenue outlook: $840 million to $875 million
- Expected tax benefit: $15–$20 million reduction in future cash tax payments starting in 2026
“Although our fourth quarter results were impacted by several customer and project delays, we generated a new record level of product and services bookings in the quarter,” said Bruce McClelland, president and chief executive officer of Ribbon Communications, adding that delayed projects remain in backlog and are expected to deploy over time.