Ribbon Q3 Revenue Rises 14% Sequentially to $219 Million

Ribbon Communications (RBBN ) reported third-quarter 2026 revenue of $219 million on October 27, 2026, a 14% sequential increase from $192 million in the second quarter, according to the company’s third-quarter 2026 earnings release. Revenue compared with $215 million in the third quarter of 2025. The GAAP net loss narrowed to $9 million, or $0.05 per diluted share, from $12 million, or $0.07 per share, a year earlier, while non-GAAP net income rose to $12 million, or $0.07 per share, from $7 million, or $0.04 per share.

GAAP operating income was $6 million, compared with $3 million in the third quarter of 2025. Non-GAAP Adjusted EBITDA was $27 million, versus $29 million a year earlier. GAAP gross margin was 48.2%, down from 50.1%, and non-GAAP gross margin was 50.3%, down from 52.6%.

Detailed income-statement figures showed total revenue of $218.71 million for the quarter, up from $192.34 million in the second quarter of 2026. Product revenue was $121.322 million versus $95.56 million in the prior quarter, and service revenue was $97.388 million versus $96.78 million. Total operating expenses were $99.93 million, down from $102.562 million in the second quarter, including restructuring and related expense of $1.436 million versus $4.442 million. The company recorded net interest expense of $11.273 million and an income tax provision of $4.565 million, and the net loss was $9.117 million versus a loss of $26.871 million in the second quarter. Adjusted EBITDA rose to $26.773 million from $11.874 million in the prior quarter.

The company said IP Optical Networks revenue increased 17% quarter over quarter, led by new wins in North America, and that Cloud and Edge revenue increased 11% quarter over quarter, led by U.S. Tier 1 network modernization. “The strong IP Optical Networks bookings trend in the first half of the year translated into a record third quarter sales for the business, growing 5% year over year and included two new U.S. Tier 2 Internet Service Provider customers,” stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. McClelland said Cloud and Edge Service Provider revenue grew 15% sequentially, supported by a 50% increase in sales to the company’s largest customer, along with further growth in the enterprise and government market segments. Looking ahead to 2027, he cited as growth drivers the adoption of voice-enabled enterprise AI applications, new solutions to mitigate AI-generated voice-phishing cyber-attacks, and broader demand for data center fiber infrastructure.

Chief Financial Officer Rick Marmurek said, “Our performance improved significantly in the third quarter, with revenue increasing 14% and Adjusted EBITDA more than doubling to $27 million from $12 million in the second quarter.” He added that non-GAAP operating expenses remained at $88 million.

Balance Sheet and Nine-Month Results

Cash and cash equivalents were $40.383 million at September 30, 2026, compared with $96.405 million at December 31, 2025. The revolving credit facility showed $15 million outstanding, versus no balance at year-end, and long-term debt net of current portion was $316.937 million versus $324.525 million. Total stockholders’ equity was $388.718 million, down from $448.994 million at year-end 2025, and current deferred revenue was $112.454 million versus $124.425 million.

For the nine months ended September 30, 2026, revenue was $573.656 million, compared with $617.233 million a year earlier. The GAAP net loss was $70.477 million, or $0.40 per diluted share, versus a loss of $49.429 million, or $0.28 per share, and Adjusted EBITDA was $30.369 million versus $66.561 million. Net cash used in operating activities was $47.915 million, compared with $22.159 million provided by operating activities in the prior-year period. During the nine months the company borrowed $50 million under its revolving line of credit and repaid $35 million; purchases of property and equipment were $8.464 million versus $23.368 million a year earlier.

Fourth-Quarter and Full-Year 2026 Outlook

For the fourth quarter of 2026, the company projected revenue of $233 million to $247 million, non-GAAP gross margin of 53.5% to 54.5%, and Adjusted EBITDA of $40 million to $47 million. GAAP earnings guidance is not provided. The outlook reconciliation shows a fourth-quarter revenue midpoint of $240 million, plus or minus $7 million, and an Adjusted EBITDA midpoint of $43.5 million, plus or minus $3.5 million. For the full year, the reconciliation shows a revenue midpoint of $814 million, plus or minus $7 million, and an Adjusted EBITDA midpoint of $74 million, plus or minus $3.5 million. The company said the outlook is based on current indications for its business, which are subject to change. Ribbon calculates Adjusted EBITDA by excluding from income from operations items including depreciation, stock-based compensation, amortization of acquired intangible assets, certain litigation costs, cybersecurity-incident expenses, acquisition- and integration-related expense, and restructuring and related expense.

Customer and product announcements the company cited for the quarter included HubOne selecting Ribbon’s PSX to unify voice traffic across its applications; Ribbon’s optical and DCI solutions enabling PT Jala Lintas Media to unlock subsea and metro network capacity between Indonesia and Singapore; moves to bolster its critical infrastructure portfolio; and work with TNS to simplify legacy voice switch replacement.

The company scheduled a conference call for 4:30 p.m. ET on October 27, 2026, to discuss the results. Its listed upcoming conferences are Ribbon Insights U.S. on November 10-12, 2026, the Needham Virtual Technology Conference on November 19, 2026, and the UBS Global Technology and AI Conference on December 1, 2026.