Ribbon Communications reported first-quarter 2025 revenue of $181 million, essentially flat year-over-year, as delayed Federal and Enterprise deals pushed some deliveries into Q2. However, momentum in the company’s IP Optical segment continues to build, with a 35% year-over-year increase in backlog and more than 10% year-over-year growth in sales to Service Providers—driven by network modernization and growing demand for high-capacity, AI-enabled transport infrastructure.
The quarter saw Ribbon deliver several notable optical projects, including a 20 Tbps cross-border link between Jakarta and Singapore for Moratelindo, powered by Ribbon’s Apollo optical platform. The company also highlighted its new high-density NPT 2714 router and Apollo ADM 400/800 optical transport system, which were featured at OFC 2025 and recognized by Lightwave. Additionally, Ribbon’s AI-enabled optical capabilities are now being leveraged in satellite-connected, low-latency networks such as Starlink.
Despite lower-than-expected margins in Q1 due to product and regional mix, Ribbon expects improvement beginning in Q2. The company projects Q2 revenue between $210–$220 million, gross margins of 53–53.5%, and adjusted EBITDA of $28–$32 million. CEO Bruce McClelland reaffirmed Ribbon’s full-year outlook, noting that backlog visibility and a healthy pipeline position the company for 5–8% revenue growth in the first half of 2025.
- Q1 2025 revenue: $181M (flat YoY)
- GAAP gross margin: 45.4% (down from 51.2%)
- Non-GAAP gross margin: 48.6% (vs. 55.1%)
- Adjusted EBITDA: $6M (vs. $12M in Q1 2024)
- GAAP net loss: $(26)M or $(0.15) per share
- Backlog: +35% YoY, driven by optical demand from service providers
- Optical highlights:
- 20 Tbps Jakarta–Singapore link for Moratelindo
- New Apollo ADM 400/800 and NPT 2714 router showcased at OFC 2025
- AI-enabled optical transport supporting low-latency satellite systems
- Q2 2025 outlook:
- Revenue: $210–$220M
- Non-GAAP gross margin: 53–53.5%
- Adjusted EBITDA: $28–$32M
“Our backlog is up 35% year-over-year, giving us improved visibility and confidence for 2025,” said Bruce McClelland, CEO of Ribbon. “We expect strong optical and IP demand to drive our growth trajectory in the coming quarters.”
