Revenue growth accelerated to 17.5% YoY in 2026Q2 ($281.1M), but operating margin remained negative at -3.6% (-$10.1M operating income), reflecting cost intensity of 40.6% of revenue.
ADTRAN Holdings Inc. (ADTN) annual income statement — 30-year revenue, gross profit & net income history
| 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 | 1.14B | 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 % | 15.75% | 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 | 700.43M | 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 | 437.79M | 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 % | 38.46% | 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 | 439.8M | 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 | 231.72M | 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 | 208.08M | 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 | -2.01M | -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 % | -0.18% | -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 | 95.1M | 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 % | 8.35% | 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 % | 176.31% | 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) | 97.1M | 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 | 19.07M | -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 | -27.19M | -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 | 1.61M | 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 | 28.8M | 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 | -7.73M | -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 | -9.73M | -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 % | -0.86% | -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 | 7.08M | 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 % | -72.74% | -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 | -26.08M | -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 % | -2.29% | -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 % | 76.06% | 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) | -16.81M | -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 | 359.16M | 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) | -0.32 | -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 % | 76.98% | 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 | 80.64M | 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 | 80.64M | 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% | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Persistent negative operating margins
Metrics are mathematically derived from official filings.
Revenue Recovery Amidst Carrier Destocking
ADTRAN's revenue grew 17.5% year-over-year in 2026Q2, reaching $281.1M, according to the latest quarterly report, marking a steady acceleration from the -30% declines seen in early 2024.
The sequential revenue progression from $226M in 2024Q1 to $281M in 2026Q2 indicates a clear recovery trajectory, likely driven by the ADVA integration and early BEAD-related orders. However, the growth rate, while positive, remains below the 20%+ levels of some peers, suggesting that the recovery is still in its early innings and may be vulnerable to carrier inventory digestion.
Gross Margin Ceiling at 39%
Gross margin has stabilized near 37-39% over the last five quarters, as reported in financial statements, but remains structurally below Calix's 56.8% and Ciena's 42%, reflecting ADTRAN's hardware-heavy mix.
The gross margin improvement from 31.1% in 2024Q1 to 39.5% in 2026Q1 suggests some operational efficiencies, but the plateau indicates limited pricing power in a competitive market. The gap to software-centric peers like Calix underscores the need for a shift toward higher-margin software and services revenue to drive structural expansion.
Operating Leverage Still Elusive
Despite revenue growth, operating income swung to -$10.1M in 2026Q2, as per the income statement, with operating margin at -3.6%, indicating that SG&A and R&D costs are not scaling down proportionally.
The company's operating leverage remains negative: while gross profit grew, R&D and SG&A expenses have stayed elevated, absorbing the incremental gross profit. The recent quarter's operating loss, despite a 6.1% revenue increase, suggests that cost discipline is not yet effective, and investors should monitor whether management can align expenses with the new revenue run-rate.
GAAP Losses Masked by Adjustments
Net income of -$10.9M in 2026Q2, as reported, includes significant non-cash charges and integration costs, with stock-based compensation of $4.7M, suggesting that underlying cash profitability may be better than GAAP figures indicate.
The gap between operating income and net income is relatively small, but the presence of SBC and potential amortization of intangibles from the ADVA deal likely depresses reported earnings. The negative ROE of -8.5% and net margin of -4.2% highlight the ongoing earnings drag, but investors should adjust for one-time items to assess the normalized earnings power.
R&D and SG&A Outpacing Revenue
Combined R&D and SG&A expenses totaled $114M in 2026Q2, as per the income statement, representing 40.6% of revenue, up from 38% a year earlier, indicating rising cost intensity.
The cost structure remains heavy, with R&D spending consistently above $50M per quarter, reflecting the need to invest in next-generation PON and optical transport technologies. SG&A has also remained sticky, suggesting that the integration of ADVA has not yet yielded the expected cost synergies. This cost pressure is a key reason why operating margins remain negative, and management's ability to control these expenses will be critical for profitability.
2024Q1: The Trough and Turn
The most significant inflection occurred in 2024Q1, when revenue fell 30.2% and operating income plunged to -$346.2M, as reported, marking the bottom of the cycle and the start of a gradual recovery.
The 2024Q1 results were distorted by a massive impairment or restructuring charge, likely related to the ADVA merger, which created a one-time operating loss. Since then, revenue has recovered sequentially, and operating losses have narrowed, indicating that the company is emerging from the integration trough. However, the persistence of negative operating income in 2026Q2 suggests that the recovery is not yet complete, and the lasting impact of the merger on profitability remains uncertain.
Margin Compression Risks Persist
Despite revenue growth, ADTRAN's operating margin has remained negative for six of the last seven quarters, as per financial data, suggesting that the company may be buying growth with unsustainable cost structures.
Short-sellers could argue that the revenue recovery is not translating into profitability, and the gross margin gap to peers like Calix indicates a structural competitive disadvantage. The reliance on hardware sales and the lack of software mix shift may cap margin expansion, while ongoing integration costs and potential inventory write-downs could further pressure earnings. If the company cannot achieve operating leverage soon, the stock may remain undervalued relative to peers.