Ribbon Communications reported fourth quarter revenue of $227 million, down 9.6% from $251 million in Q4 2024. GAAP operating income declined to $9 million from $33 million a year earlier, while non-GAAP adjusted EBITDA fell to $40 million from $55 million. GAAP gross margin compressed to 53.3% from 55.7%, and non-GAAP gross margin narrowed to 55.4% versus 58.1% in the prior year period, reflecting delayed customer projects and budget timing shifts that impacted product deployments and service bookings in the quarter.

For the full year, Ribbon achieved revenue of $845 million, a 1.3% increase over $834 million in 2024. GAAP operating income swung to a loss of $3 million from a $17 million profit in 2024, while non-GAAP adjusted EBITDA decreased to $107 million from $119 million. GAAP gross margin contracted to 49.8% from 52.7%, and non-GAAP gross margin declined to 52.3% from 55.9%. GAAP net income was $40 million versus a $54 million loss in the prior year, and non-GAAP diluted EPS rose to $0.66 from $0.25, supported by improved operational leverage and a one-time tax benefit recognized in Q4.

Ribbon achieved a record level of product and services bookings in Q4, including over $50 million of new voice modernization awards from multiple regions. U.S. Tier 1 service provider sales grew by more than 25% in 2025 as the company’s real-time communications and IP optical networking solutions were adopted to modernize legacy infrastructure. Delayed deployments accounted for a significant portion of the $227 million revenue, but the related backlog remains intact and is expected to drive growth once budgets align and projects resume.

For 2026, Ribbon projects full-year revenue of $840 million to $875 million, non-GAAP gross margin of 52.5% to 53.5%, and adjusted EBITDA between $105 million and $120 million. First quarter guidance calls for revenue of $160 million to $170 million, non-GAAP gross margin of 48% to 49%, and adjusted EBITDA of negative $3 million to positive $1 million. The company plans to accelerate investments in its Acumen AIOps platform to capitalize on enterprise AI adoption, expand government and defense program wins in the U.S. and Europe, and leverage a new tax benefit expected to reduce cash tax payments by $15 million to $20 million over several years.