Ribbon Communications (NASDAQ:RBBN) Releases Earnings Results, Beats Expectations By $0.01 EPS

Ribbon Communications (NASDAQ:RBBN) issued its earnings results on Tuesday. The communications equipment provider reported ($0.05) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.06) by $0.01, Briefing.com reports. Ribbon Communications had a net margin of 4.69% and a return on equity of 26.11%. The company had revenue of $162.61 million during the quarter, compared to analyst estimates of $163.43 million. During the same quarter last year, the business posted ($0.03) EPS. The company’s revenue for the quarter was down 10.3% on a year-over-year basis.

Here are the key takeaways from Ribbon Communications’ conference call:

• Q1 results — Revenue was $163M (down 10% YoY), non-GAAP gross margin fell to 45.8%, and Adjusted EBITDA was a loss of $8M; closing cash was $70M with net leverage ~2.9x, pressuring near-term profitability.
• Order momentum improved — consolidated book-to-bill was 1.1x and IP Optical bookings were 1.5x, and management guided Q2 revenue of $185M–$195M and Adjusted EBITDA of $9M–$14M, expecting stronger H2 2026.
• IP Optical momentum with multiple Data Center Interconnect wins across EMEA, US and APAC, five energy sector awards, a >$10M multi-country African fiber expansion (revenue starting in Q2), and exposure to >30 BEAD-awarded customers.
• Strategic Cloud & Edge progress — commercial cloud-native SBC deployments (Japan, Europe), a new AWS partnership with two live customers, and the upcoming Acumen AIOps launch with Optimum targeting automation and agentic AI use cases.
• Leadership transition — CFO John Townsend is departing and Rick Marmurek is promoted to CFO, which preserves internal continuity but introduces normal execution and transition risk.

Ribbon Communications Stock Up 10.3%

Shares of NASDAQ:RBBN traded up $0.25 on Thursday, reaching $2.63. The company had a trading volume of 927,424 shares, compared to its average volume of 896,352. Ribbon Communications has a twelve month low of $1.80 and a twelve month high of $4.29. The stock has a 50-day moving average price of $2.33 and a 200 day moving average price of $2.72. The stock has a market capitalization of $460.71 million, a P/E ratio of 11.93 and a beta of 1.07. The company has a quick ratio of 1.19, a current ratio of 1.44 and a debt-to-equity ratio of 0.72.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. lifted its position in Ribbon Communications by 2.2% during the 3rd quarter. Vanguard Group Inc. now owns 7,691,070 shares of the communications equipment provider’s stock worth $29,226,000 after acquiring an additional 166,683 shares during the last quarter. State Street Corp lifted its position in Ribbon Communications by 0.3% during the 4th quarter. State Street Corp now owns 2,099,793 shares of the communications equipment provider’s stock worth $6,047,000 after acquiring an additional 5,280 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its position in Ribbon Communications by 99.6% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 964,446 shares of the communications equipment provider’s stock worth $3,665,000 after buying an additional 481,276 shares during the period. Jacobs Levy Equity Management Inc. increased its position in Ribbon Communications by 88.9% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 890,168 shares of the communications equipment provider’s stock worth $2,564,000 after buying an additional 418,967 shares during the period. Finally, Goldman Sachs Group Inc. increased its position in Ribbon Communications by 85.7% in the 4th quarter. Goldman Sachs Group Inc. now owns 787,493 shares of the communications equipment provider’s stock worth $2,268,000 after buying an additional 363,334 shares during the period. Institutional investors and hedge funds own 70.92% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts recently issued reports on RBBN shares. Northland Securities set a $4.00 price objective on Ribbon Communications in a report on Friday, February 6th. B. Riley Financial reiterated a “neutral” rating on shares of Ribbon Communications in a report on Wednesday. Wall Street Zen upgraded Ribbon Communications from a “hold” rating to a “buy” rating in a report on Saturday, April 25th. Craig Hallum reiterated a “buy” rating and issued a $3.00 target price on shares of Ribbon Communications in a research note on Wednesday, February 11th. Finally, Citizens Jmp reduced their target price on shares of Ribbon Communications from $6.00 to $4.00 and set a “market outperform” rating for the company in a research note on Friday, February 6th. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $3.58.

About Ribbon Communications

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.