Exhibit 99.1
Ribbon Communications Inc. Reports Second Quarter 2026 Financial Results
Revenue increased 18% sequentially and Profitability improved by $20M;
further gains expected in 2H 2026
Record IP Optical Quarterly Bookings led by growth in North America;
Critical Infrastructure and DCI Wins
Large Enterprise momentum,
including selection by Salesforce for Agentforce Contact Center
PLANO, Texas – Ribbon Communications Inc. (Nasdaq: RBBN), a global leader in real-time communications technology, IP routing, and optical networking solutions, today announced its financial results for the second quarter of 2026.
Second Quarter 2026 Highlights
Financial Results****¹:
- Revenue was $192 million, compared to $221 million for the second quarter of 2025
- GAAP Operating Loss was ($12) million, compared to income of $4 million for the second quarter of 2025
- Non-GAAP Adjusted EBITDA was $12 million, compared to $32 million for the second quarter of 2025
- GAAP Gross Margin was 47%, compared to 49.6% for the second quarter of 2025
- Non-GAAP Gross Margin was 49.3%, compared to 52.1% for the second quarter of 2025
“We had meaningful sequential improvement in revenue and profitability in both of our operating segments in the second quarter, with key financial metrics above the mid-point of our guidance. Demand continued to strengthen in our IP Optical Networks business, resulting in a new record level of bookings, and one of our best quarters in the U.S. market,” stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. “The Enterprise market was also a highlight in the quarter with a major Microsoft Teams Voice deployment with a top tier financial institution, and the announcement of our partnership with Salesforce for their new Agentforce Contact Center launch.”
Mr. McClelland continued, “For the balance of the year, we continue to expect sequential revenue growth and improved earnings. We see several larger opportunities in our IP Optical business that could provide additional upside, balanced by a more moderated view of voice modernization deployment acceleration with our U.S. Tier One Service Providers. We expect second-half revenue growth from several regions, including Telecom Operators and Critical Infrastructure Providers in EMEA and Southeast Asia, U.S. Government Federal Agencies, and U.S. Regional Service Providers investing in multi-purpose optical networks that support Data Center Interconnect (DCI), broadband internet access, and mobile backhaul.”
Rick Marmurek, Chief Financial Officer of Ribbon Communications, remarked, “Our financial results in the second quarter reflected improved execution in the business with healthy customer demand across most of our markets. Our financial priorities remain unchanged—execute efficiently, expand margins over time, and generate stronger cash flow as higher-value growth opportunities become a larger part of our business.”
| In millions, except per share amounts | |||
|---|---|---|---|
| GAAP Revenue | $192 | $221 | $402 |
| GAAP Net income (loss) | $(27) | $(11 | $(37)) |
| Non-GAAP Net income (loss) | $(5) | $10 | $5) |
| Non-GAAP Adjusted EBITDA | $12 | $32 | $38 |
| GAAP diluted earnings (loss) per share | $(0.15) | $(0.06 | $(0.21)) |
| Non-GAAP diluted earnings (loss) per share | $(0.03) | $0.05 | $0.03) |
| Weighted average shares outstanding basic | 177 | 177 | 176 |
| Weighted average shares outstanding diluted | 180 | 180 | 180 |
¹ Please see the reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures and additional information about non-GAAP measures in the section entitled “Discussion of Non-GAAP Financial Measures” in the attached schedules.
Business Highlights:
- Planters Broadband Selects Ribbon to Launch New 400G/800G- Ready Optical Route
- Ribbon's Cloud Native Technology Partners with Agentforce Contact Center in the Public Cloud
- Ribbon Introduces Rapid Deployment Networking Solutions for Mobile Data Centers, Defense Agencies, and Critical Infrastructure Providers
- Ribbon and Comporium Expand Partnership to Advance Voice Infrastructure Modernization
- MGW Partners with Ribbon to Modernize Infrastructure and Expand Rural Connectivity
Business Outlook²
For the third quarter of 2026, the Company projects revenue of $215 million to $230 million. Non-GAAP gross margin is projected in a range of 51% to 52%. Adjusted EBITDA is projected in a range of $26 million to $31 million.
The Company has also adjusted full-year 2026 targets and now expects revenue in a range of $810 million to $840 million, non-GAAP gross margin in a range of 51% to 52%, and Adjusted EBITDA in a range of $78 million to $88 million.
The Company’s outlook is based on current indications for its business, which are subject to change.
² GAAP earnings guidance is not provided. Please see the reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures and additional information about the non-GAAP measures in the section entitled “Discussion of Non-GAAP Financial Measures” in the attached schedules.
Upcoming Conference Schedule
- August 17-18, 2026: — Rosenblatt 6th Annual Tech Summit 2026: The Age of AI
- August 25, 2026: — Jefferies Semiconductor, IT Hardware & Communications Technology Conference
Conference Call and Webcast Information
Ribbon Communications will host a conference call to discuss the Company’s financial results at 4:30 p.m. ET on Tuesday, July 28, 2026.
Dial-in Information:
US/Canada: 877-407-2991 International: 201-389-0925 Instant Telephone Access: Call me™
A live (listen-only) webcast and replay will be available on the Company’s Investor Relations website at investors.ribboncommunications.com.
Investor Contact
+1 (978) 614-8050
ir@rbbn.com
Media Contact
Catherine Berthier
+1 (646) 741-1974
cberthier@rbbn.com
About Ribbon
Ribbon Communications (Nasdaq: RBBN) is a global provider of voice communications software, IP routing, and optical networking to mobile and wireline service providers, enterprises, critical infrastructure and defense sectors. We support our customers’ Path to Autonomous Networks by leveraging the latest AIOps automation platforms and Agentic AI technologies, helping them deliver better customer experiences, reduce operational costs, and achieve sustainable growth. To learn more about Ribbon, visit rbbn.com.
Important Information Regarding Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to a number of risks and uncertainties. All statements other than statements of historical facts contained in this release, including without limitation, statements regarding Company’s projected financial results for the third quarter and full year 2026 and beyond; expected customer bookings, spend and timing; beliefs about the Company’s business strategy, including new product introductions such as the Acumen AIOps platform; beliefs about the accelerating adoption of AI and the shift towards autonomous networking; and the timing of customer network transformation projects, are forward-looking statements. Without limiting the foregoing, the words “anticipates”, “believes”, “could”, “estimates”, “expects”, “expectations”, “intends”, “may”, “plans”, “projects” and other similar language, whether in the negative or affirmative, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.
Consolidated Statements of Operations
in thousands, except percentages and per share amounts · unaudited
| Revenue: | |||
| Product | $95,560 | $68,114 | $115,057 |
| Service | 96,780 | 94,492 | 105,526 |
| Total revenue | 192,340 | 162,606 | 220,583 |
| Cost of revenue: | |||
| Product | 58,877 | 49,425 | 66,746 |
| Service | 38,766 | 38,928 | 39,253 |
| Amortization of acquired technology | 4,354 | 4,562 | 5,277 |
| Total cost of revenue | 101,997 | 92,915 | 111,276 |
| Gross profit | 90,343 | 69,691 | 109,307 |
| Gross margin | 47.0% | 42.9 | 49.6%% |
| Operating expenses: | |||
| Research and development | 44,858 | 44,445 | 44,696 |
| Sales and marketing | 33,124 | 32,269 | 32,536 |
| General and administrative | 14,643 | 16,978 | 16,630 |
| Amortization of acquired intangible assets | 5,495 | 5,656 | 5,975 |
| Acquisition-, disposal- and integration-related | - | - | 3,898 |
| Restructuring and related | 4,442 | 2,038 | 1,346 |
| Total operating expenses | 102,562 | 101,386 | 105,081 |
| Income (loss) from operations | (12,219) | (31,695 | 4,226) |
| Interest expense, net | (10,685) | (9,756 | (10,977)) |
| Other (expense) income, net | (2,258) | 514 | (2,159) |
| Income (loss) before income taxes | (25,162) | (40,937 | (8,910)) |
| Income tax benefit (provision) | (1,709) | 6,448 | (2,183) |
| Net income (loss) | $(26,871) | $(34,489 | $(11,093)) |
| Earnings (loss) per share: | |||
| Basic | $(0.15) | $(0.20 | $(0.06)) |
| Diluted | $(0.15) | $(0.20 | $(0.06)) |
| Weighted average shares used to compute earnings (loss) per share: | |||
| Basic | 177,251 | 175,661 | 176,749 |
| Diluted | 177,251 | 175,661 | 176,749 |
Consolidated Statements of Operations
in thousands, except percentages and per share amounts · unaudited
| Revenue: | ||
| Product | $163,674 | $197,048 |
| Service | 191,272 | 204,814 |
| Total revenue | 354,946 | 401,862 |
| Cost of revenue: | ||
| Product | 108,302 | 124,639 |
| Service | 77,694 | 74,881 |
| Amortization of acquired technology | 8,916 | 10,665 |
| Total cost of revenue | 194,912 | 210,185 |
| Gross profit | 160,034 | 191,677 |
| Gross margin | 45.1% | 47.7% |
| Operating expenses: | ||
| Research and development | 89,303 | 88,264 |
| Sales and marketing | 65,393 | 64,324 |
| General and administrative | 31,621 | 31,758 |
| Amortization of acquired intangible assets | 11,151 | 12,130 |
| Acquisition-, disposal- and integration-related | - | 3,898 |
| Restructuring and related | 6,480 | 6,687 |
| Total operating expenses | 203,948 | 207,061 |
| Income (loss) from operations | (43,914) | (15,384) |
| Interest expense, net | (20,441) | (21,477) |
| Other (expense) income, net | (1,744) | 970 |
| Income (loss) before income taxes | (66,099) | (35,891) |
| Income tax benefit (provision) | 4,739 | (1,429) |
| Net income (loss) | $(61,360) | $(37,320) |
| Earnings (loss) per share: | ||
| Basic | $(0.35) | $(0.21) |
| Diluted | $(0.35) | $(0.21) |
| Weighted average shares used to compute earnings (loss) per share: | ||
| Basic | 176,460 | 176,237 |
| Diluted | 176,460 | 176,237 |
Consolidated Balance Sheets
in thousands · unaudited
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $43,510 | $96,405 |
| Restricted cash | 1,973 | 1,726 |
| Accounts receivable, net | 220,203 | 231,885 |
| Inventory | 87,811 | 78,806 |
| Other current assets | 52,132 | 45,663 |
| Total current assets | 405,629 | 454,485 |
| Property and equipment, net | 61,137 | 65,559 |
| Intangible assets, net | 124,384 | 143,344 |
| Goodwill | 300,892 | 300,892 |
| Deferred income taxes | 182,727 | 174,318 |
| Operating lease right-of-use assets | 41,895 | 46,240 |
| Other assets | 26,158 | 27,417 |
| $1,142,822 | $1,212,255 | |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Current portion of term debt | $8,750 | $8,750 |
| Accounts payable | 87,077 | 79,840 |
| Accrued expenses and other | 82,512 | 90,759 |
| Operating lease liabilities | 11,655 | 11,699 |
| Warrant liability | 1,007 | - |
| Deferred revenue | 118,333 | 124,425 |
| Total current liabilities | 309,334 | 315,473 |
| Long-term debt, net of current | 320,606 | 324,525 |
| Warrant liability | - | 1,919 |
| Operating lease liabilities, net of current | 56,000 | 60,159 |
| Deferred revenue, net of current | 34,632 | 31,654 |
| Deferred income taxes | 5,728 | 5,728 |
| Other long-term liabilities | 23,950 | 23,803 |
| Total liabilities | 750,250 | 763,261 |
| Commitments and contingencies | ||
| Stockholders' equity: | ||
| Common stock | 18 | 18 |
| Additional paid-in capital | 1,981,940 | 1,976,958 |
| Accumulated deficit | (1,595,909) | (1,534,549) |
| Accumulated other comprehensive income | 6,523 | 6,567 |
| Total stockholders' equity | 392,572 | 448,994 |
| $1,142,822 | $1,212,255 |
Consolidated Statements of Cash Flows
in thousands · unaudited
| Cash flows from operating activities: | ||
| Net income (loss) | $(61,360) | $(37,320) |
| Adjustments to reconcile net income (loss) to cash flows (used in) provided by operating activities: | ||
| Depreciation and amortization of property and equipment | 9,131 | 7,757 |
| Amortization of intangible assets | 20,067 | 22,795 |
| Amortization of debt issuance costs and original issue discount | 1,476 | 1,401 |
| Stock-based compensation | 10,786 | 8,775 |
| Deferred income taxes | (8,470) | (8,984) |
| Change in fair value of warrant liability | (912) | (1,641) |
| Foreign currency exchange (gains) losses | 2,844 | 587 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | 10,395 | 4,578 |
| Inventory | (11,319) | (2,820) |
| Other operating assets | 1,038 | (186) |
| Accounts payable | 9,128 | 5,083 |
| Accrued expenses and other long-term liabilities | (13,187) | (11,030) |
| Deferred revenue | (3,114) | 6,675 |
| Net cash (used in) provided by operating activities | (33,497) | (4,330) |
| Cash flows from investing activities: | ||
| Purchases of property and equipment | (7,368) | (17,831) |
| Purchases of software licenses | (553) | - |
| Net cash (used in) provided by investing activities | (7,921) | (17,831) |
| Cash flows from financing activities: | ||
| Borrowings under revolving line of credit | 15,000 | - |
| Principal payments on revolving line of credit | (15,000) | - |
| Principal payments of term debt | (4,375) | (1,750) |
| Payment of debt issuance costs | (977) | - |
| Proceeds from the exercise of stock options | - | 6 |
| Payment of tax obligations related to vested stock awards and units | (4,980) | (3,396) |
| Repurchase of common stock | (824) | (2,253) |
| Net cash (used in) provided by financing activities | (11,156) | (7,393) |
| Effect of exchange rate changes on cash and cash equivalents | (74) | 1,349 |
| Net (decrease) increase in cash and cash equivalents | (52,648) | (28,205) |
| Cash, cash equivalents and restricted cash, beginning of year | 98,131 | 90,479 |
| Cash, cash equivalents and restricted cash, end of period | $45,483 | $62,274 |
RIBBON COMMUNICATIONS INC.
Supplemental Information
(in thousands) (unaudited)
The following tables provide the details of stock-based compensation included as components of other line items in the Company's Consolidated Statements of Operations and the line items in which these amounts are reported.
| Line item | June 30, 2026 | |||
|---|---|---|---|---|
| Stock-based compensation | ||||
| Cost of revenue - product | $39 | $43 | $33 | $99 |
| Cost of revenue - service | 175 | 161 | 198 | 484 |
| Cost of revenue | 214 | 204 | 231 | 583 |
| Research and development | 460 | 477 | 455 | 1,180 |
| Sales and marketing | 1,103 | 1,130 | 1,066 | 2,239 |
| General and administrative | 3,052 | 4,146 | 2,725 | 4,773 |
| Operating expense | 4,615 | 5,753 | 4,246 | 8,192 |
| Total stock-based compensation | $4,829 | $5,957 | $4,477 | $8,775 |
- RIBBON COMMUNICATIONS INC.
- Reconciliation of Non-GAAP and GAAP Financial Measures
- (in thousands, except per share amounts)
- (unaudited)
| GAAP Gross margin | 47.0% | 42.9 | 49.6%% |
| Stock-based compensation | 0.1% | 0.1 | 0.1%% |
| Amortization of acquired technology | 2.2% | 2.8 | 2.4%% |
| Non-GAAP Gross margin | 49.3% | 45.8 | 52.1%% |
| GAAP Net income (loss) | $(26,871) | $(34,489 | $(11,093)) |
| Stock-based compensation | 4,829 | 5,957 | 4,477 |
| Amortization of intangible assets | 9,849 | 10,218 | 11,252 |
| Litigation costs | 302 | 744 | 2,314 |
| Acquisition-, disposal- and integration-related | - | - | 3,898 |
| Restructuring and related | 4,442 | 2,038 | 1,346 |
| Preferred stock and warrant liability mark-to-market adjustment | 325 | (1,237 | 94) |
| Tax effect of non-GAAP adjustments | 2,223 | 8,412 | (2,679) |
| Non-GAAP Net income (loss) | $(4,901) | $(8,357 | $9,609) |
| GAAP Diluted earnings (loss) per share | $(0.15) | $(0.20 | $(0.06)) |
| Stock-based compensation | 0.03 | 0.03 | 0.02 |
| Amortization of intangible assets | 0.05 | 0.06 | 0.06 |
| Litigation costs | * | 0.01 | 0.01 |
| Acquisition-, disposal- and integration-related | - | - | 0.02 |
| Restructuring and related | 0.03 | 0.01 | 0.01 |
| Preferred stock and warrant liability mark-to-market adjustment | * | (0.01 | * |
| Tax effect of non-GAAP adjustments | 0.01 | 0.05 | (0.01) |
| Non-GAAP Diluted earnings (loss) per share | $(0.03) | $(0.05 | $0.05) |
| Weighted average shares used to compute diluted earnings (loss) per share | |||
| Shares used to compute GAAP diluted earnings (loss) per share | 177,251 | 175,661 | 176,749 |
| Shares used to compute Non-GAAP diluted earnings (loss) per share | 177,251 | 175,661 | 179,884 |
| GAAP Income (loss) from operations | $(12,219) | $(31,695 | $4,226) |
| Depreciation | 4,671 | 4,460 | 4,288 |
| Stock-based compensation | 4,829 | 5,957 | 4,477 |
| Amortization of intangible assets | 9,849 | 10,218 | 11,252 |
| Litigation costs | 302 | 744 | 2,314 |
| Acquisition-, disposal- and integration-related | - | - | 3,898 |
| Restructuring and related | 4,442 | 2,038 | 1,346 |
| Non-GAAP Adjusted EBITDA | $11,874 | $(8,278 | $31,801) |
| * Less than $0.01 impact on earnings (loss) per share. |
- RIBBON COMMUNICATIONS INC.
- Reconciliation of Non-GAAP and GAAP Financial Measures
- (in thousands, except per share amounts)
- (unaudited)
| GAAP Gross Margin | 45.1% | 47.7% |
| Stock-based compensation | 0.1% | 0.1% |
| Amortization of acquired technology | 2.5% | 2.7% |
| Non-GAAP Gross Margin | 47.7% | 50.5% |
| GAAP Net income (loss) | $(61,360) | $(37,320) |
| Stock-based compensation | 10,786 | 8,775 |
| Amortization of intangible assets | 20,067 | 22,795 |
| Litigation costs | 1,046 | 3,114 |
| Acquisition-, disposal- and integration-related | - | 3,898 |
| Restructuring and related | 6,480 | 6,687 |
| Preferred stock and warrant liability mark-to-market adjustment | (912) | (1,641) |
| Tax effect of non-GAAP adjustments | 10,635 | (1,278) |
| Non-GAAP Net income (loss) | $(13,258) | $5,030 |
| GAAP Diluted earnings (loss) per share | $(0.35) | $(0.21) |
| Stock-based compensation | 0.06 | 0.05 |
| Amortization of intangible assets | 0.11 | 0.13 |
| Litigation costs | 0.01 | 0.02 |
| Acquisition-, disposal- and integration-related | - | 0.02 |
| Restructuring and related | 0.04 | 0.04 |
| Preferred stock and warrant liability mark-to-market adjustment | (0.01) | (0.01) |
| Tax effect of non-GAAP adjustments | 0.06 | (0.01) |
| Non-GAAP Diluted earnings (loss) per share | $(0.08) | $0.03 |
| Weighted average shares used to compute diluted earnings (loss) per share | ||
| Shares used to compute GAAP diluted earnings (loss) per share | 176,460 | 176,237 |
| Shares used to compute Non-GAAP diluted earnings (loss) per share | 176,460 | 180,231 |
| GAAP Income (loss) from operations | $(43,914) | $(15,384) |
| Depreciation | 9,131 | 7,757 |
| Stock-based compensation | 10,786 | 8,775 |
| Amortization of intangible assets | 20,067 | 22,795 |
| Litigation costs | 1,046 | 3,114 |
| Acquisition-, disposal- and integration-related | - | 3,898 |
| Restructuring and related | 6,480 | 6,687 |
| Non-GAAP Adjusted EBITDA | $3,596 | $37,642 |
- RIBBON COMMUNICATIONS INC.
- Reconciliation of Non-GAAP and GAAP Financial Measures
- (in thousands)
- (unaudited)
| GAAP Income (loss) from operations | $(31,854) | $(15,409 | $16,909) |
| Depreciation | 18,102 | 17,719 | 14,526 |
| Stock-based compensation | 21,417 | 21,065 | 16,845 |
| Amortization of intangible assets | 41,465 | 42,868 | 47,360 |
| Litigation costs | 2,971 | 4,983 | 11,593 |
| Cybersecurity incident | 600 | 600 | - |
| Acquisition-, disposal- and integration-related | 439 | 4,337 | 3,898 |
| Restructuring and related | 19,451 | 16,355 | 11,862 |
| Non-GAAP Adjusted EBITDA | $72,591 | $92,518 | $122,993 |
- RIBBON COMMUNICATIONS INC.
- Reconciliation of Non-GAAP and GAAP Financial Measures - Outlook
- (unaudited)
| Line item | Range | ||
|---|---|---|---|
| Revenue ($millions) | $222.5 | +/-$7.5M | $825 |
| Gross margin: | |||
| GAAP outlook | 49.5% | 49.3% | |
| Stock-based compensation | 0.1% | 0.1% | |
| Amortization of acquired technology | 1.9% | 2.1% | |
| Non-GAAP outlook | 51.5% | +/-0.5% | 51.5% |
| Adjusted EBITDA ($millions): | |||
| GAAP income (loss) from operations | $6.2 | $(9.8) | |
| Depreciation | 4.3 | 18.1 | |
| Stock-based compensation | 5.0 | 21.0 | |
| Amortization of intangible assets | 9.8 | 39.6 | |
| Litigation costs | 0.2 | 1.6 | |
| Restructuring and related | 3.0 | 12.5 | |
| Non-GAAP outlook | $28.5 | +/-$2.5M | $83.0 |
| (1) Q3 2026 and FY 2026 outlook represents the midpoint of the expected ranges |
|---|