Revenue growth remains challenged with a 10.3% year-over-year decline in 2026Q1, while operating margins have deteriorated to -19.5% due to high fixed R&D costs.
| 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 |
|---|
| Sales/Revenue | 825.88M | 844.56M | 833.88M | 826.34M | 819.76M | 844.96M | 843.79M | 563.11M | 577.9M | 329.94M | 252.59M | 249.03M | 296.33M | 276.73M | 254.13M | 259.7M | 249.31M | 227.5M | 313.14M | 320.31M | 279.48M | 194.61M | 170.74M | 93.21M | 62.56M | 173.2M | 51.77M | 1K |
| Revenue Growth % | -1.15% | 1.28% | 0.91% | 0.8% | -2.98% | 0.14% | 49.85% | -2.56% | 75.15% | 30.62% | 1.43% | -15.96% | 7.08% | 8.89% | -2.14% | 4.17% | 9.59% | -27.35% | -2.24% | 14.61% | 43.61% | 13.98% | 83.18% | 49% | -63.88% | 234.55% | 5176900% | - |
| Cost of Goods Sold | 423.64M | 447.7M | 394.37M | 446.86M | 418.82M | 400.3M | 392.98M | 246.03M | 269.57M | 128.45M | 84.98M | 87.38M | 102.92M | 104.27M | 111.54M | 113.58M | 96.16M | 83.36M | 129.87M | 129.57M | 100.43M | 77.52M | 50.57M | 37.91M | 30.87M | 75.7M | 22.74M | -4.03M |
| COGS % of Revenue | - | 53.01% | 47.29% | 54.08% | 51.09% | 47.37% | 46.57% | 43.69% | 46.65% | 38.93% | 33.64% | 35.09% | 34.73% | 37.68% | 43.89% | 43.73% | 38.57% | 36.64% | 41.47% | 40.45% | 35.93% | 39.83% | 29.62% | 40.67% | 49.34% | 43.71% | 43.92% | -402600% |
| Gross Profit | 402.24M | 396.86M | 439.51M | 379.48M | 400.94M | 444.66M | 450.82M | 317.08M | 308.33M | 201.5M | 167.61M | 161.66M | 193.41M | 172.46M | 142.59M | 146.12M | 153.15M | 144.14M | 183.27M | 190.74M | 179.05M | 117.09M | 120.17M | 55.3M | 31.69M | 97.5M | 29.03M | 4.03M |
| Gross Margin % | 48.7% | 46.99% | 52.71% | 45.92% | 48.91% | 52.63% | 53.43% | 56.31% | 53.35% | 61.07% | 66.36% | 64.91% | 65.27% | 62.32% | 56.11% | 56.27% | 61.43% | 63.36% | 58.53% | 59.55% | 64.07% | 60.17% | 70.38% | 59.33% | 50.66% | 56.29% | 56.08% | 402700% |
| Gross Profit Growth % | - | -9.71% | 15.82% | -5.35% | -9.83% | -1.37% | 42.18% | 2.84% | 53.02% | 20.22% | 3.68% | -16.42% | 12.14% | 20.94% | -2.41% | -4.59% | 6.26% | -21.35% | -3.92% | 6.53% | 52.92% | -2.56% | 117.3% | 74.51% | -67.5% | 235.82% | 620.98% | - |
| Operating Expenses | 400.49M | 376.19M | 422.64M | 383.08M | 449.26M | 562.46M | 449.15M | 506.54M | 339.77M | 232.53M | 177.33M | 190.59M | 203.47M | 188.03M | 177.97M | 158.65M | 163.21M | 152.01M | 229.29M | 242.51M | 156.56M | 117.5M | 98.81M | 71.66M | 102.17M | 678.33M | 85.32M | 28.4M |
| OpEx % of Revenue | - | 44.54% | 50.68% | 46.36% | 54.8% | 66.57% | 53.23% | 89.95% | 58.79% | 70.47% | 70.2% | 76.53% | 68.67% | 67.95% | 70.03% | 61.09% | 65.47% | 66.82% | 73.22% | 75.71% | 56.02% | 60.38% | 57.87% | 76.88% | 163.32% | 391.65% | 164.8% | 2840000% |
| Selling, General & Admin | 199.65M | 197.31M | 206.57M | 192.42M | 198.82M | 203.94M | 202.6M | 160.18M | 194.31M | 131.04M | 104.49M | 112.69M | 124.08M | 118.47M | 110.62M | 94.24M | 100.42M | 92.15M | 135.24M | 138.71M | 101.11M | 71.11M | 60.23M | 37.06M | 53.5M | 130.84M | 53.77M | 11.73M |
| SG&A % of Revenue | - | 23.36% | 24.77% | 23.29% | 24.25% | 24.14% | 24.01% | 28.45% | 33.62% | 39.72% | 41.37% | 45.25% | 41.87% | 42.81% | 43.53% | 36.29% | 40.28% | 40.5% | 43.19% | 43.3% | 36.18% | 36.54% | 35.28% | 39.76% | 85.52% | 75.54% | 103.87% | 1173300% |
| Research & Development | 179.75M | 178.87M | 179.94M | 190.66M | 203.68M | 194.95M | 194.53M | 141.06M | 145.46M | 101.48M | 72.84M | 77.91M | 79.4M | 69.56M | 67.34M | 64.41M | 62.79M | 59.86M | 72.22M | 79.13M | 55.45M | 46.38M | 36.17M | 32.19M | 45.31M | 65M | 26.43M | 10.78M |
| R&D % of Revenue | - | 21.18% | 21.58% | 23.07% | 24.85% | 23.07% | 23.05% | 25.05% | 25.17% | 30.76% | 28.84% | 31.28% | 26.79% | 25.14% | 26.5% | 24.8% | 25.18% | 26.31% | 23.06% | 24.7% | 19.84% | 23.83% | 21.19% | 34.53% | 72.43% | 37.53% | 51.05% | 1078000% |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | -5.94M | 20.67M | 16.87M | -3.6M | -48.32M | -117.8M | 1.67M | -189.46M | -65.41M | -55.23M | -13.61M | -31.22M | -17.25M | -21.07M | -48.54M | -12.53M | -11.56M | -11.38M | -46.72M | -51.77M | 22.49M | -409K | 21.36M | -16.36M | -69.79M | -650.44M | -56.28M | -24.37M |
| Operating Margin % | -0.72% | 2.45% | 2.02% | -0.44% | -5.89% | -13.94% | 0.2% | -33.65% | -11.32% | -16.74% | -5.39% | -12.54% | -5.82% | -7.62% | -19.1% | -4.82% | -4.64% | -5% | -14.92% | -16.16% | 8.05% | -0.21% | 12.51% | -17.55% | -111.56% | -375.54% | -108.72% | -2437300% |
| Operating Income Growth % | - | 22.52% | 568.67% | 92.55% | 58.98% | -7157.88% | 100.88% | -189.66% | -18.43% | -305.83% | 56.41% | -80.95% | 18.14% | 56.58% | -287.56% | -8.36% | -1.54% | 75.63% | 9.76% | -330.18% | 5599.02% | -101.91% | 230.57% | 76.56% | 89.27% | -1055.66% | -130.92% | - |
| EBITDA | 39.97M | 81.59M | 81.27M | 67.4M | 28.16M | -34.21M | 79.77M | -128.29M | -4.49M | -29.63M | 1.86M | -12.15M | -1.17M | -4.2M | -32.88M | -496K | 387K | -1.05M | -33.9M | -38.08M | 32M | 7.57M | 29.56M | -4.23M | -52.8M | -527.49M | -51.17M | -18.49M |
| EBITDA Margin % | 4.84% | 9.66% | 9.75% | 8.16% | 3.44% | -4.05% | 9.45% | -22.78% | -0.78% | -8.98% | 0.74% | -4.88% | -0.39% | -1.52% | -12.94% | -0.19% | 0.16% | -0.46% | -10.83% | -11.89% | 11.45% | 3.89% | 17.31% | -4.53% | -84.4% | -304.56% | -98.84% | -1848600% |
| EBITDA Growth % | -41.99% | 0.39% | 20.59% | 139.34% | 182.32% | -142.88% | 162.18% | -2760.33% | 84.86% | -1692.21% | 115.32% | -941.05% | 72.21% | 87.23% | -6528.63% | -228.17% | 136.93% | 96.91% | 10.98% | -219.01% | 322.88% | -74.4% | 799.27% | 91.99% | 89.99% | -930.84% | -176.81% | - |
| D&A (Non-Cash Add-back) | 45.91M | 60.92M | 64.4M | 71M | 76.48M | 83.59M | 78.1M | 61.17M | 60.92M | 25.6M | 15.47M | 19.07M | 16.09M | 16.88M | 15.66M | 12.03M | 11.95M | 10.34M | 12.82M | 13.69M | 9.51M | 7.98M | 8.2M | 12.13M | 16.99M | 122.95M | 5.11M | 5.89M |
| EBIT | 15.71M | -1.1M | 27.03M | -27.72M | -92.82M | -192.31M | 114.36M | -119.02M | -69.18M | -31.03M | -11.32M | -28.94M | -14.39M | -20.57M | -47.53M | -12.53M | -9.81M | -7.21M | -36.18M | -30.74M | 22.49M | -409K | 21.36M | -16.36M | -70.48M | -580.83M | -56.28M | -24.37M |
| Net Interest Income | -33.51M | -44.01M | -33.82M | -27.32M | -16.64M | -19.09M | -22.77M | -3.88M | -4.23M | 263K | 800K | 207K | 75K | 405K | 612K | 1.29M | 1.55M | 3.92M | 12.35M | 18.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 512K | 0 | 328K | 337K | 232K | 3.73M | 471K | 623K | 270K | 963K | 900K | 406K | 326K | 502K | 814K | 1.29M | 1.74M | 4.11M | 12.64M | 18.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | -59.06M | -45.11M | -46.07M | -55.37M | -112.6M | -208.14M | 93.32M | -122.89M | -73.41M | -53.69M | -11.42M | -29.89M | -14.64M | -20.67M | -47.73M | -11.24M | -10M | -7.39M | -34.01M | -32.46M | 37.9M | 8.98M | 25.16M | -14.83M | -70.94M | -1.09B | 0 | 0 |
| Pretax Margin % | -7.15% | -5.34% | -5.52% | -6.7% | -13.74% | -24.63% | 11.06% | -21.82% | -12.7% | -16.27% | -4.52% | -12% | -4.94% | -7.47% | -18.78% | -4.33% | -4.01% | -3.25% | -10.86% | -10.13% | 13.56% | 4.61% | 14.74% | -15.91% | -113.41% | -632.09% | - | - |
| Income Tax | -77.54M | -84.75M | 8.17M | 10.83M | -14.52M | -30.96M | 4.73M | 7.18M | 3.4M | -18.44M | 2.52M | 2.01M | 2.21M | 1.45M | 2.44M | 1.47M | 693K | -2.46M | 79.56M | -8.82M | -64.96M | 611K | 687K | 302K | -2.01M | 64.6M | -6.25M | -486K |
| Effective Tax Rate % | 131.28% | 187.87% | -17.73% | -19.56% | 12.89% | 14.87% | 5.06% | -5.84% | -4.63% | 34.34% | -22.04% | -6.72% | -15.12% | -7.03% | -5.11% | -13.04% | -6.93% | 33.27% | -233.94% | 27.18% | -171.41% | 6.8% | 2.73% | -2.04% | 2.83% | -5.9% | - | - |
| Net Income | 31.37M | 39.64M | -54.23M | -66.21M | -98.08M | -177.19M | 88.59M | -130.07M | -76.81M | -35.25M | -13.93M | -31.89M | -16.86M | -22.12M | -50.17M | -12.7M | -10.69M | -4.93M | -118.8M | -23.64M | 102.85M | 8.37M | 24.48M | -15.14M | -68.47M | -645.43M | -50.04M | -23.89M |
| Net Margin % | 3.8% | 4.69% | -6.5% | -8.01% | -11.96% | -20.97% | 10.5% | -23.1% | -13.29% | -10.68% | -5.52% | -12.81% | -5.69% | -7.99% | -19.74% | -4.89% | -4.29% | -2.17% | -37.94% | -7.38% | 36.8% | 4.3% | 14.34% | -16.24% | -109.45% | -372.65% | -96.65% | -2388700% |
| Net Income Growth % | 162.62% | 173.08% | 18.08% | 32.5% | 44.64% | -300% | 168.11% | -69.35% | -117.89% | -153.03% | 56.32% | -89.23% | 23.8% | 55.91% | -294.94% | -18.82% | -116.77% | 95.85% | -402.58% | -122.98% | 1129.13% | -65.81% | 261.71% | 77.89% | 89.39% | -1189.88% | -109.48% | - |
| Net Income (Continuing) | 31.37M | 39.64M | -54.23M | -66.21M | -98.08M | -177.19M | 88.59M | -130.07M | -76.81M | -35.25M | -13.93M | -31.89M | -16.86M | -22.12M | -50.17M | -12.7M | -10.69M | -4.93M | -113.56M | -23.64M | 102.85M | 8.37M | 24.48M | -15.14M | -68.47M | -645.43M | -50.04M | -23.89M |
| 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 |
| Minority Interest | 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 | 46.11M |
| EPS (Diluted) | 0.18 | 0.22 | -0.31 | -0.39 | -0.63 | -1.20 | 0.61 | -1.19 | -0.74 | -0.60 | -0.28 | -0.64 | -0.34 | -0.40 | -0.90 | -0.23 | -0.19 | -0.09 | -2.19 | -0.45 | 2.00 | 0.10 | 0.50 | -0.34 | -1.80 | -18.66 | -2.61 | -2.78 |
| EPS Growth % | 158.52% | 170.97% | 20.51% | 38.1% | 47.5% | -296.72% | 151.26% | -60.81% | -23.33% | -114.29% | 56.25% | -88.24% | 15% | 55.56% | -291.3% | -21.05% | -110.88% | 95.89% | -386.67% | -122.5% | 1900% | -80% | 247.06% | 81.11% | 90.35% | -614.94% | 6.12% | - |
| EPS (Basic) | - | 0.22 | -0.31 | -0.39 | -0.63 | -1.20 | 0.64 | -1.19 | -0.74 | -0.60 | -0.28 | -0.64 | -0.34 | -0.40 | -0.90 | -0.23 | -0.19 | -0.09 | -2.19 | -0.45 | 2.05 | 0.10 | 0.50 | -0.34 | -1.80 | -18.66 | -2.61 | -2.78 |
| Diluted Shares Outstanding | 175.66M | 179.82M | 174.04M | 170.41M | 156.67M | 147.57M | 144.65M | 109.73M | 103.92M | 58.82M | 49.38M | 49.56M | 50.24M | 55.69M | 56.02M | 55.71M | 55.09M | 54.75M | 54.3M | 52.58M | 51.67M | 50.56M | 50.76M | 44.14M | 37.98M | 34.58M | 19.18M | 8.59M |
| Basic Shares Outstanding | 175.66M | 176.2M | 174.04M | 170.41M | 156.67M | 147.57M | 138.97M | 109.73M | 103.8M | 58.75M | 49.38M | 49.56M | 49.57M | 55.3M | 55.74M | 55.71M | 55.09M | 54.75M | 54.3M | 52.58M | 50.75M | 49.72M | 49.17M | 44.14M | 37.98M | 34.58M | 19.18M | 8.59M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Carrier CapEx Cycle Sensitivity
As reported in recent financial filings, Ribbon Communications experienced a 10.3% year-over-year revenue decline in 2026Q1, signaling persistent challenges in capturing growth within its core telecommunications segments as carrier spending remains constrained by broader macroeconomic uncertainty and shifting infrastructure investment priorities across its primary North American markets.
The revenue trajectory appears increasingly pressured, with the 2026Q1 performance marking a significant reversal from the modest growth observed in mid-2025. This volatility suggests that the company's reliance on project-based hardware deployments in the IP Optical segment leaves it highly vulnerable to the cyclical nature of Tier 1 carrier CapEx cycles.
Based on the provided income statement data, gross margins fluctuated significantly, dropping to 42.9% in 2026Q1 from a peak of 55.7% in 2024Q4, which highlights the company's limited pricing power and sensitivity to the product mix between high-margin software and lower-margin optical hardware components.
The inability to maintain gross margins above the 50% threshold consistently suggests that Ribbon faces intense competitive pressure in its IP Optical segment. Investors should monitor whether the company can successfully pivot toward higher-margin cloud-native software solutions to decouple its profitability from the volatile hardware manufacturing cost structure.
According to historical income statements, Ribbon's operating leverage remains severely constrained, as evidenced by the 2026Q1 operating margin of -19.5%, which reflects a failure to scale revenue sufficiently to offset the heavy, fixed R&D expenditures required to maintain parity in the competitive 5G-native networking market.
The company's operating expenses, particularly R&D, appear largely decoupled from revenue fluctuations, creating a high break-even point that exacerbates losses during periods of top-line weakness. This rigid cost structure implies that any meaningful improvement in operating income will require either a significant revenue inflection or a more aggressive rationalization of the current R&D footprint.
Financial statements indicate that net income is subject to extreme swings, such as the $89.1M profit in 2025Q4 followed by a $34.5M loss in 2026Q1, suggesting that non-operating items and accounting adjustments frequently mask the underlying operational performance of the core business segments.
The reliance on non-recurring items to drive GAAP profitability warrants caution, as these figures do not reflect the company's ongoing ability to generate cash from operations. Analysts should focus on adjusted metrics that strip out the impact of M&A-related amortization and tax anomalies to better assess the true earnings power of the firm.
As indicated by the persistent negative operating margins and recurring net losses, the company's current business model faces significant scrutiny regarding its long-term sustainability, particularly if the anticipated 'Huawei replacement' tailwinds fail to materialize into consistent, high-margin revenue growth for the IP Optical segment.
Short-term investors may focus on the potential for further balance sheet strain if the company continues to burn cash while attempting to fund its R&D-heavy strategy. The lack of consistent GAAP profitability suggests that the market's skepticism regarding Ribbon's ability to compete with larger, better-capitalized incumbents may be fundamentally grounded in the current income statement realities.
Quick answers to the most common questions about buying RBBN stock.
For fiscal year 2025, Ribbon Communications Inc. (RBBN) reported total revenue of $844.6M. This represents a 84455500.0% increase compared to $0.0M in 1999.
Ribbon Communications Inc. (RBBN) is profitable, generating $39.6M in net income for the fiscal year ending 2025 with a net profit margin of 4.7%.
Ribbon Communications Inc. (RBBN) reported an operating income of $20.7M, resulting in an operating profit margin of 2.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Ribbon Communications Inc. (RBBN) generated $396.9M in gross profit for the year, representing a gross profit margin of 47.0%. This demonstrates the company's core pricing power and production efficiency.