On May 6, 2025, Fiber Online reported that Ribbon Communications announced its financial results for the first quarter of 2025.Ribbon Communications is committed to helping the world's largest service providers, enterprises, and critical infrastructure operators modernize and secure their networks and services.
Revenue for the first quarter of 2025 was $181 million, relatively flat compared to $180 million in the first quarter of 2024. GAAP gross margin was 45.4%, down from 51.2% in the first quarter of 2024. Non-GAAP gross margin was 48.6%, down from 55.1% in the first quarter of 2024. GAAP operating loss was $20 million, compared to $13 million in the first quarter of 2024.
Bruce McClelland, President and CEO of Ribbon Communications, stated, “We continue to expect strong growth in the first half of 2025, with sales projected to increase by 5%-8% year-over-year, overcoming the impact of declining revenue in Eastern Europe since the second quarter of 2024. In the first quarter, service provider sales grew by over 10% due to widespread focus on network modernization. Quarterly revenue was below expectations due to timing of two key federal and enterprise transactions, both of which have been completed and will be included in the second quarter. Bookings remain very stable, with backlog up 35% year-over-year, enhancing our visibility and confidence for the year.”
John Townsend, Chief Financial Officer, added, “We anticipate that gross margins will return to normal levels in the second quarter and for the remainder of the year as product and regional mix improves. I am particularly pleased with our rigorous cost and cash management approach demonstrated in the first quarter.”
For the second quarter of 2025, Ribbon projects revenue of $210 million to $220 million. Non-GAAP gross margin is expected to be between 53% and 53.5%. Adjusted EBITDA is projected to be between $28 million and $32 million.
About Ribbon Communications
Ribbon Communications (NASDAQ: RBBN) provides communication software, IP, and optical network solutions to global service providers, enterprises, and critical infrastructure sectors. We work closely with customers to help them modernize their networks and enhance their competitive position and business outcomes in today's smart, always-on, and data-driven world. Our innovative end-to-end solutions portfolio offers unparalleled scale, performance, and agility, including software-centric core-to-edge solutions, cloud-native products/services, leading security and analytics tools, and IP and optical network solutions for 5G and broadband internet. We remain committed to environmental, social, and governance (ESG) matters, providing annual sustainability reports to stakeholders. For more information about Ribbon, please visit rbbn.com.
Original article: ribboncommunications.com
