Revenue growth has accelerated to 15.5% as of 2026Q1, yet gross margins remain structurally capped at 39.5%, trailing software-centric competitors.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.12B | 1.08B | 922.72M | 1.15B | 1.03B | 563M | 506.51M | 530.06M | 529.28M | 666.58M | 636.78M | 600.06M | 630.01M | 641.74M | 620.61M | 717.23M | 605.67M | 484.19M | 500.68M | 476.78M | 472.71M | 513.22M | 454.52M | 396.68M | 345.73M | 387.08M | 462.95M | 367.21M | 286.56M | 265.33M | 250.12M |
| Revenue Growth % | 18.84% | 17.46% | -19.7% | 12.05% | 82.15% | 11.15% | -4.44% | 0.15% | -20.6% | 4.68% | 6.12% | -4.75% | -1.83% | 3.4% | -13.47% | 18.42% | 25.09% | -3.29% | 5.01% | 0.86% | -7.89% | 12.91% | 14.58% | 14.74% | -10.68% | -16.39% | 26.07% | 28.14% | 8% | 6.08% | 37.81% |
| Cost of Goods Sold | 689.38M | 668.85M | 598.56M | 817.97M | 698.28M | 344.63M | 288.96M | 311.06M | 325.71M | 362.93M | 345.44M | 333.17M | 318.68M | 332.86M | 303.97M | 302.91M | 246.81M | 197.22M | 201.77M | 193.79M | 193.75M | 209.9M | 193.44M | 174.68M | 170.79M | 213.76M | 233.43M | 178.63M | 130.01M | 130.25M | 129.95M |
| COGS % of Revenue | - | 61.71% | 64.87% | 71.18% | 68.09% | 61.21% | 57.05% | 58.68% | 61.54% | 54.45% | 54.25% | 55.52% | 50.58% | 51.87% | 48.98% | 42.23% | 40.75% | 40.73% | 40.3% | 40.65% | 40.99% | 40.9% | 42.56% | 44.04% | 49.4% | 55.22% | 50.42% | 48.65% | 45.37% | 49.09% | 51.96% |
| Gross Profit | 432.77M | 414.95M | 324.16M | 331.13M | 327.25M | 218.38M | 217.55M | 219M | 203.56M | 303.65M | 291.34M | 266.9M | 311.33M | 308.89M | 316.64M | 414.32M | 358.86M | 286.96M | 298.9M | 282.99M | 278.96M | 303.32M | 261.07M | 222M | 174.94M | 173.32M | 229.52M | 188.58M | 156.55M | 135.08M | 120.17M |
| Gross Margin % | 38.57% | 38.29% | 35.13% | 28.82% | 31.91% | 38.79% | 42.95% | 41.32% | 38.46% | 45.55% | 45.75% | 44.48% | 49.42% | 48.13% | 51.02% | 57.77% | 59.25% | 59.27% | 59.7% | 59.35% | 59.01% | 59.1% | 57.44% | 55.96% | 50.6% | 44.78% | 49.58% | 51.35% | 54.63% | 50.91% | 48.04% |
| Gross Profit Growth % | - | 28.01% | -2.1% | 1.18% | 49.86% | 0.38% | -0.66% | 7.58% | -32.96% | 4.22% | 9.16% | -14.27% | 0.79% | -2.45% | -23.57% | 15.45% | 25.06% | -4% | 5.63% | 1.44% | -8.03% | 16.18% | 17.6% | 26.9% | 0.93% | -24.49% | 21.71% | 20.46% | 15.89% | 12.41% | 31.19% |
| Operating Expenses | 438.02M | 430.55M | 751.73M | 554.79M | 400.08M | 233.08M | 227.26M | 259.13M | 248.99M | 265.92M | 256.61M | 253.42M | 264.22M | 260.42M | 260.47M | 225.18M | 205M | 182.73M | 185.1M | 178.7M | 173.73M | 159.06M | 159.31M | 141.38M | 137.41M | 154.89M | 137.74M | 113.75M | 99.28M | 75.03M | 58.96M |
| OpEx % of Revenue | - | 39.73% | 81.47% | 48.28% | 39.01% | 41.4% | 44.87% | 48.89% | 47.04% | 39.89% | 40.3% | 42.23% | 41.94% | 40.58% | 41.97% | 31.4% | 33.85% | 37.74% | 36.97% | 37.48% | 36.75% | 30.99% | 35.05% | 35.64% | 39.75% | 40.01% | 29.75% | 30.98% | 34.65% | 28.28% | 23.57% |
| Selling, General & Admin | 231.83M | 226.28M | 232.92M | 258.61M | 208.89M | 124.41M | 113.97M | 130.6M | 124.44M | 135.49M | 131.81M | 123.54M | 131.96M | 129.37M | 134.52M | 124.88M | 114.7M | 99.45M | 103.29M | 103.33M | 103.03M | 96.41M | 91.93M | 83.23M | 81.12M | 95.95M | 87.12M | 71.73M | 62.06M | 44.97M | 34.31M |
| SG&A % of Revenue | - | 20.88% | 25.24% | 22.51% | 20.37% | 22.1% | 22.5% | 24.64% | 23.51% | 20.33% | 20.7% | 20.59% | 20.95% | 20.16% | 21.68% | 17.41% | 18.94% | 20.54% | 20.63% | 21.67% | 21.8% | 18.79% | 20.23% | 20.98% | 23.46% | 24.79% | 18.82% | 19.54% | 21.66% | 16.95% | 13.72% |
| Research & Development | 206.19M | 204.28M | 221.46M | 258.31M | 173.76M | 108.66M | 113.29M | 126.77M | 124.55M | 130.43M | 124.8M | 129.88M | 132.26M | 131.06M | 125.95M | 100.3M | 90.3M | 83.28M | 81.82M | 75.37M | 70.7M | 62.65M | 67.38M | 58.14M | 56.3M | 58.93M | 50.63M | 42.02M | 37.22M | 30.06M | 24.65M |
| R&D % of Revenue | - | 18.85% | 24% | 22.48% | 16.94% | 19.3% | 22.37% | 23.92% | 23.53% | 19.57% | 19.6% | 21.64% | 20.99% | 20.42% | 20.29% | 13.98% | 14.91% | 17.2% | 16.34% | 15.81% | 14.96% | 12.21% | 14.83% | 14.66% | 16.28% | 15.23% | 10.94% | 11.44% | 12.99% | 11.33% | 9.85% |
| Other Operating Expenses | 0 | 0 | 297.35M | 37.87M | 17.43M | 0 | 0 | 1.77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -5.25M | -15.6M | -427.56M | -223.67M | -72.83M | -14.7M | -9.77M | -39.96M | -45.42M | 37.39M | 34.73M | 13.48M | 47.11M | 48.47M | 56.17M | 189.14M | 153.86M | 104.23M | 113.8M | 104.29M | 105.23M | 144.25M | 101.76M | 80.62M | 37.52M | 18.43M | 91.78M | 74.83M | 57.27M | 60.05M | 61.21M |
| Operating Margin % | -0.47% | -1.44% | -46.34% | -19.46% | -7.1% | -2.61% | -1.93% | -7.54% | -8.58% | 5.61% | 5.45% | 2.25% | 7.48% | 7.55% | 9.05% | 26.37% | 25.4% | 21.53% | 22.73% | 21.87% | 22.26% | 28.11% | 22.39% | 20.32% | 10.85% | 4.76% | 19.82% | 20.38% | 19.98% | 22.63% | 24.47% |
| Operating Income Growth % | - | 96.35% | -91.16% | -207.12% | -395.42% | -50.41% | 75.54% | 12.02% | -221.49% | 7.63% | 157.7% | -71.39% | -2.79% | -13.72% | -70.3% | 22.93% | 47.62% | -8.41% | 9.12% | -0.89% | -27.05% | 41.76% | 26.22% | 114.85% | 103.58% | -79.92% | 22.65% | 30.66% | -4.64% | -1.89% | 45.4% |
| EBITDA | 43.17M | 76.95M | -337.04M | -110.72M | -5.27M | 1.38M | 6.85M | -22.19M | -29.53M | 53.08M | 49.14M | 27.72M | 61.96M | 63.09M | 70.25M | 200.64M | 164.41M | 114.31M | 123.69M | 114.98M | 116.06M | 157.45M | 117.13M | 95.87M | 53.93M | 35.23M | 105.19M | 85.37M | 66.27M | 67.4M | 66.1M |
| EBITDA Margin % | 3.85% | 7.1% | -36.53% | -9.64% | -0.51% | 0.25% | 1.35% | -4.19% | -5.58% | 7.96% | 7.72% | 4.62% | 9.83% | 9.83% | 11.32% | 27.97% | 27.14% | 23.61% | 24.7% | 24.12% | 24.55% | 30.68% | 25.77% | 24.17% | 15.6% | 9.1% | 22.72% | 23.25% | 23.13% | 25.4% | 26.43% |
| EBITDA Growth % | 390.52% | 122.83% | -204.41% | -1999.34% | -481.07% | -79.81% | 130.89% | 24.85% | -155.64% | 8.01% | 77.25% | -55.25% | -1.8% | -10.19% | -64.99% | 22.04% | 43.82% | -7.58% | 7.57% | -0.92% | -26.29% | 34.42% | 22.18% | 77.76% | 53.08% | -66.51% | 23.22% | 28.83% | -1.67% | 1.96% | 46.24% |
| D&A (Non-Cash Add-back) | 46.69M | 92.55M | 90.53M | 112.95M | 67.55M | 16.08M | 16.63M | 17.77M | 15.89M | 15.69M | 14.41M | 14.24M | 14.85M | 14.63M | 14.08M | 11.5M | 10.54M | 10.08M | 9.89M | 10.7M | 10.83M | 13.2M | 15.37M | 15.25M | 16.41M | 16.8M | 13.42M | 10.55M | 9M | 7.34M | 4.89M |
| EBIT | 2.98M | -11.91M | -420.67M | -217.31M | -67.53M | -6.27M | -6.24M | -24.27M | -32.84M | 45.24M | 47.47M | 26.3M | 60.58M | 63.18M | 75.31M | 208.54M | 170.63M | 110M | 120.79M | 118.07M | 105.23M | 144.25M | 101.76M | 80.62M | 37.52M | 18.43M | 91.78M | 74.83M | 57.27M | 60.05M | 61.21M |
| Net Interest Income | -23.78M | -17.02M | -19M | -13.96M | -1.31M | 2.81M | 1.93M | 2.25M | 3.49M | 3.82M | 3.35M | 3.36M | 4.34M | 4.69M | 5.31M | 5.24M | 4.12M | 4.5M | 6.19M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 1.11M | 2.32M | 3.06M | 2.34M | 2.12M | 2.84M | 1.94M | 2.77M | 4.03M | 4.38M | 3.92M | 3.95M | 5.02M | 7.01M | 7.66M | 7.64M | 6.56M | 6.93M | 8.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 20.65M | 19.34M | 22.05M | 16.3M | 3.44M | 34K | 5K | 511K | 533K | 556K | 572K | 596K | 677K | 2.33M | 2.35M | 2.4M | 2.44M | 2.43M | 2.51M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -13.8M | -15.65M | -15.16M | -9.94M | 1.86M | 8.39M | 3.53M | 15.19M | 12.05M | 7.3M | 12.32M | 12.23M | 12.79M | 12.39M | 16.8M | 17M | 14.32M | 3.34M | 4.47M | 11.28M | 13.29M | 9.12M | 8.26M | -19.11M | -5.35M | 5.31M | 91.26M | 2.37M | 3.35M | 2.77M | 2.29M |
| Pretax Income | -19.06M | -31.25M | -442.73M | -233.61M | -70.96M | -6.3M | -6.25M | -24.78M | -33.37M | 44.68M | 46.9M | 25.71M | 59.91M | 60.85M | 72.97M | 206.14M | 168.19M | 107.57M | 118.27M | 115.57M | 118.53M | 153.37M | 110.02M | 61.52M | 32.18M | 23.74M | 183.03M | 77.19M | 60.62M | 62.83M | 63.5M |
| Pretax Margin % | -1.7% | -2.88% | -47.98% | -20.33% | -6.92% | -1.12% | -1.23% | -4.67% | -6.3% | 6.7% | 7.36% | 4.28% | 9.51% | 9.48% | 11.76% | 28.74% | 27.77% | 22.22% | 23.62% | 24.24% | 25.07% | 29.88% | 24.2% | 15.51% | 9.31% | 6.13% | 39.54% | 21.02% | 21.15% | 23.68% | 25.39% |
| Income Tax | 3.47M | 4.99M | 7.34M | 28.3M | -62.08M | 2.33M | -8.62M | 28.2M | -14.03M | 20.85M | 11.67M | 7.06M | 15.29M | 15.06M | 25.7M | 67.56M | 54.2M | 33.35M | 39.69M | 39.24M | 40.19M | 52.22M | 34.88M | 0 | 7.4M | 6.41M | 62.23M | 26.24M | 20.31M | 22.62M | 23.68M |
| Effective Tax Rate % | -18.22% | -15.98% | -1.66% | -12.11% | 87.48% | -36.95% | 138.07% | -113.84% | 42.04% | 46.66% | 24.88% | 27.47% | 25.52% | 24.75% | 35.23% | 32.78% | 32.23% | 31% | 33.56% | 33.95% | 33.91% | 34.05% | 31.7% | 0% | 23% | 27% | 34% | 34% | 33.5% | 36% | 37.29% |
| Net Income | -29.63M | -45.66M | -459.89M | -267.69M | -2.04M | -8.63M | 2.38M | -52.98M | -19.34M | 23.83M | 35.23M | 18.65M | 44.62M | 45.79M | 47.26M | 138.58M | 113.99M | 74.22M | 78.58M | 76.33M | 78.33M | 101.15M | 75.14M | 61.52M | 24.78M | 17.33M | 120.8M | 50.95M | 40.31M | 40.21M | 39.82M |
| Net Margin % | -2.64% | -4.21% | -49.84% | -23.3% | -0.2% | -1.53% | 0.47% | -10% | -3.65% | 3.58% | 5.53% | 3.11% | 7.08% | 7.14% | 7.62% | 19.32% | 18.82% | 15.33% | 15.7% | 16.01% | 16.57% | 19.71% | 16.53% | 15.51% | 7.17% | 4.48% | 26.09% | 13.87% | 14.07% | 15.15% | 15.92% |
| Net Income Growth % | 78.58% | 90.07% | -71.8% | -13041.29% | 76.41% | -463.12% | 104.49% | -173.92% | -181.16% | -32.35% | 88.94% | -58.21% | -2.56% | -3.11% | -65.89% | 21.57% | 53.58% | -5.55% | 2.94% | -2.55% | -22.56% | 34.61% | 22.15% | 148.28% | 42.98% | -85.66% | 137.12% | 26.39% | 0.25% | 0.98% | 34.98% |
| Net Income (Continuing) | -22.53M | -36.24M | -450.07M | -261.91M | -8.89M | -8.63M | 2.38M | -52.98M | -19.34M | 23.84M | 35.23M | 18.65M | 44.62M | 45.79M | 47.26M | 138.58M | 113.99M | 74.22M | 78.58M | 76.33M | 78.33M | 101.15M | 75.14M | 61.52M | 24.78M | 17.33M | 120.8M | 50.95M | 40.31M | 40.21M | 39.82M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 369.02M | 373.33M | 422.94M | 443.33M | 329.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 160K | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.37 | -0.57 | -5.67 | -3.41 | -0.03 | -0.18 | 0.05 | -1.11 | -0.40 | 0.49 | 0.72 | 0.36 | 0.80 | 0.77 | 0.74 | 2.12 | 1.78 | 1.17 | 1.22 | 1.10 | 1.04 | 1.30 | 0.93 | 0.76 | 0.33 | 0.23 | 1.52 | 0.66 | 0.26 | 0.26 | 0.25 |
| EPS Growth % | 74.57% | 89.95% | -66.28% | -10328.13% | 81.83% | -465.85% | 104.43% | -177.5% | -181.63% | -31.94% | 100% | -55% | 3.9% | 4.05% | -65.09% | 19.1% | 52.14% | -4.1% | 10.91% | 5.77% | -20% | 39.78% | 22.37% | 130.3% | 43.48% | -84.87% | 130.3% | 153.85% | 0% | 4% | 31.58% |
| EPS (Basic) | - | -0.57 | -5.67 | -3.41 | -0.03 | -0.18 | 0.05 | -1.11 | -0.40 | 0.50 | 0.72 | 0.36 | 0.81 | 0.78 | 0.75 | 2.16 | 1.82 | 1.19 | 1.24 | 1.13 | 1.07 | 1.33 | 0.96 | 0.80 | 0.33 | 0.23 | 1.57 | 0.67 | 0.26 | 0.26 | 0.26 |
| Diluted Shares Outstanding | 80.32M | 79.74M | 78.93M | 78.42M | 62.35M | 48.58M | 48.29M | 47.84M | 47.88M | 48.7M | 48.95M | 51.27M | 55.48M | 59.42M | 63.77M | 65.42M | 63.88M | 63.36M | 64.41M | 69.21M | 75.2M | 77.97M | 80.98M | 80.74M | 76.44M | 77.35M | 79.41M | 77.66M | 155.17M | 158.26M | 158.19M |
| Basic Shares Outstanding | 80.32M | 79.74M | 78.93M | 78.42M | 62.35M | 48.58M | 48M | 47.84M | 47.88M | 48.15M | 48.72M | 51.15M | 55.12M | 59M | 63.26M | 64.14M | 62.49M | 62.46M | 63.55M | 67.85M | 73.45M | 75.78M | 78.23M | 76.94M | 76.09M | 77.13M | 77.29M | 76.67M | 155.17M | 158.26M | 158.19M |
| Dividend Payout Ratio | - | - | - | - | - | - | 728.93% | - | - | 72.87% | 49.91% | 98.94% | 44.7% | 46.76% | 48.27% | 16.69% | 19.74% | 30.3% | 29.17% | 32.23% | 34.16% | 25.53% | 33.42% | 144.56% | - | - | - | - | - | - | - |
Integration and cyclical demand
According to quarterly financial data, ADTRAN has successfully pivoted from a period of double-digit revenue contraction in early 2024 to a 15.5% year-over-year growth rate by 2026Q1, signaling a potential stabilization in carrier capital expenditure cycles and a recovery in demand for fiber infrastructure solutions.
The transition from a 37.1% revenue decline in 2023Q4 to consistent growth suggests that the company is successfully navigating the post-merger inventory destocking phase. Investors should monitor whether this acceleration is driven by sustainable long-term infrastructure projects or merely a temporary replenishment of depleted carrier inventory levels.
As reported in recent income statements, ADTRAN's gross margin has hovered near 39% in early 2026, which remains significantly below the 56% levels observed at software-centric peers like Calix, highlighting the inherent margin pressure associated with the company's hardware-intensive optical transport and access product portfolio.
The inability to consistently breach the 40% gross margin threshold suggests that the company lacks the pricing power of pure-play software vendors. Future margin expansion appears contingent on the successful integration of the Mosaic software platform, which would theoretically shift the revenue mix toward higher-margin recurring software and services.
Based on the provided financial figures, ADTRAN has only recently achieved positive operating income of $6.4 million in 2026Q1, demonstrating that the company is still struggling to scale its operating expenses efficiently relative to the growth in its gross profit following the ADVA integration.
The historical volatility in operating margins, which reached as low as -153% in 2024Q1, indicates that the company's cost base remains bloated by integration-related expenses. Management's ability to maintain positive operating leverage will be the primary indicator of whether the merger can eventually deliver the anticipated operational synergies.
Analysis of the income statement reveals that net income has been heavily impacted by non-operating items and integration costs, with the company reporting a net loss as recently as 2025Q4 despite positive gross profit, suggesting that GAAP earnings currently provide a distorted view of underlying business health.
The significant swings in net income, ranging from a $330.8 million loss in 2024Q1 to a modest profit in 2026Q1, warrant caution for investors relying on bottom-line metrics. The reduction in stock-based compensation expenses in recent quarters may suggest a more disciplined approach to overhead, though this requires further verification in upcoming filings.
Quick answers to the most common questions about buying ADTN stock.
For fiscal year 2025, ADTRAN Holdings, Inc. (ADTN) reported total revenue of $1.08B. This represents a 333.3% increase compared to $250.1M in 1996.
ADTRAN Holdings, Inc. (ADTN) reported a net loss of $45.7M for the fiscal year ending 2025.
ADTRAN Holdings, Inc. (ADTN) reported an operating income of $-15.6M, resulting in an operating profit margin of -1.4%. This margin reflects the operational efficiency of the business before interest and taxes.
ADTRAN Holdings, Inc. (ADTN) generated $415.0M in gross profit for the year, representing a gross profit margin of 38.3%. This demonstrates the company's core pricing power and production efficiency.