Ribbon Communications Inc.

Ribbon reported second-quarter 2026 revenue of $192 million, up 18% sequentially and down 13% year over year. Consolidated non-GAAP gross margin was 49.3%, up 350 basis points sequentially and down 280 basis points year over year. Adjusted EBITDA was $12 million, up $20 million sequentially and down $20 million year over year; non-GAAP diluted loss per share was $0.03, down $0.08 from the prior year. For Q3 2026, management guided to revenue of $215 million to $230 million and adjusted EBITDA of $26 million to $31 million. For full-year 2026, guidance was updated to revenue of $810 million to $840 million and adjusted EBITDA of $78 million to $88 million.

Bruce McClelland framed the quarter as a solid step forward, emphasizing strong IP Optical demand, better-than-expected sequential improvement, and a broadening business mix. He pointed to growth in data center interconnect, mission-critical infrastructure, defense, and enterprise voice/AI use cases, including the Salesforce partnership as evidence of a new market forming around agentic AI voice. His tone was constructive but measured, noting that Verizon-related voice modernization is improving more slowly than expected and that second-half growth is being moderated by timing and supply constraints.

Rick Marmurek said consolidated revenue was $192 million, non-GAAP gross margin was 49.3%, non-GAAP operating expenses were $88 million, and adjusted EBITDA was $12 million. He noted net interest expense of $11 million, non-GAAP net loss of $5 million, and a non-GAAP diluted loss per share of $0.03. Cash flow from operations was a use of $12 million, ending cash was $45 million, and net debt leverage was 4.0x; he also said capex was $5 million and expects cash to improve as revenue and earnings rise in the second half.

Analysts focused on supply-chain pressure, Verizon, BEAD funding, IP Optical margin outlook, and whether Q2 strength in optical and backlog could carry into the second half. Management said cost inflation is running across several inputs, including commercial off-the-shelf servers, core silicon, memory, and optical transceivers, and that it is using targeted pricing and supplier agreements to offset the impact. On Verizon, management said deployments remain below 2025 levels but should improve in Q3 and Q4; on BEAD, they said funding flow has been slow and they are not expecting much contribution in the second half of 2026.