Ribbon Communications (RBBN) Q3 2026 Earnings Call: Revenue Up 14%, Q4 Guidance Issued
Source Tradingkey
Key Takeaways
- Ribbon Communications reported Q3 2026 revenue of $219 million, up 14% sequentially and 2% year over year, as both operating segments improved from the second quarter.
- Adjusted EBITDA reached $27 million, increasing by $15 million sequentially, while non-GAAP diluted EPS rose to $0.07.
- IP Optical Networks revenue increased 17% sequentially to $96 million, supported by routing products, two new U.S. Tier 2 service provider customers and backlog conversion.
- Cloud & Edge revenue rose 11% sequentially to $123 million. Verizon-related sales were approximately 50% above the first-half quarterly run rate.
- Management guided Q4 2026 revenue to $233 million-$247 million and adjusted EBITDA to $40 million-$47 million, with most of the sequential growth expected from Cloud & Edge.
- Supply constraints could shift $5 million-$10 million of customer demand into the following quarter, while higher component and logistics costs are expected to add approximately $2 million per quarter.
Key Financial Results
| Metric | Q3 2026 | Change / Commentary |
|---|---|---|
| Revenue | $219 million | Up 14% sequentially; up 2% year over year |
| Non-GAAP gross margin | 50.3% | Up 100 bps sequentially; down 230 bps year over year |
| Non-GAAP operating expenses | $88 million | Down $1 million year over year; broadly flat sequentially |
| Adjusted EBITDA | $27 million | Up $15 million sequentially; down $2 million year over year |
| Non-GAAP net income | $12 million | Up $17 million sequentially; up $5 million year over year |
| Non-GAAP diluted EPS | $0.07 | Up $0.10 sequentially; up $0.03 year over year |
| Operating cash flow | $(14) million | Cash use during the quarter |
| Quarter-end cash | $42 million | Included a $15 million revolver draw |
| Net debt leverage | 4.4x | Management expects improvement as EBITDA increases |
Business and Operating Performance
IP Optical Networks
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
Gold holds above $4,350 following weak US jobs data. As inflation reports approach and UBS eyes $5,000, can XAUUSD break resistance at $4,435 to rally toward $4,500?
Gold Price Analysis Today: Gold Drops 1.32% Despite Lower Fed Rate-Hike Bets, Can $4,313 Support Hold?
Gold fell 1.32% on August 13 after rising to $4,449.73, then reversing lower and closing near $4,349.918 below the $4,356.46 support. Softer US inflation data reduced Fed rate hike expectations, but selling pressure still dominated the session. Will $4,313 support hold?
Gold fell 1.32% on August 13 after rising to $4,449.73, then reversing lower and closing near $4,349.918 below the $4,356.46 support. Softer US inflation data reduced Fed rate hike expectations, but selling pressure still dominated the session. Will $4,313 support hold?
Gold Price Analysis Today: Gold Gains 0.94% as Markets Expect Fed to Hold Rates, Can $4,449 Resistance Break?
Gold gained 0.94% on August 17, closing near $4,417.30 as softer US data strengthened expectations for unchanged Fed rates in September. Gold remains bullish, with $4,449.730 resistance and $4,310.650 support in focus.
Gold gained 0.94% on August 17, closing near $4,417.30 as softer US data strengthened expectations for unchanged Fed rates in September. Gold remains bullish, with $4,449.730 resistance and $4,310.650 support in focus.
Anthropic’s cash and short-term investments reached $131.7 billion on June 30, topping Nvidia and Apple combined, per CNBC. Disclosed lease and spending obligations add up to about $587 billion.Anthro
OpenAI Plans to Buy Google AI Chips to Further Diversify Compute Strategy as Nvidia Faces New CompetitionTradingKey - OpenAI is seeking to expand its sources of AI computing power. According to a Tuesday report from The Information, citing people familiar with the matter, the ChatGPT developer plans to p
TradingKey - OpenAI is seeking to expand its sources of AI computing power. According to a Tuesday report from The Information, citing people familiar with the matter, the ChatGPT developer plans to p
