Ribbon Communications Reports $220.6 Million Revenue in Q2 2025, Net Loss Improves

Ribbon Communications Inc. reported a total revenue of $220.6 million for the second quarter of 2025, marking a 14.5% increase from $192.6 million in the same period of 2024. The company's product revenue rose to $115.1 million, up from $99.1 million, while service revenue also increased to $105.5 million from $93.5 million. For the first half of 2025, total revenue reached $401.9 million, compared to $372.3 million in the prior year, driven primarily by growth in the Cloud and Edge segment, which saw a revenue increase of $32.4 million.

Despite the revenue growth, Ribbon reported a net loss of $11.1 million for the second quarter of 2025, an improvement from a loss of $16.8 million in the same quarter of 2024. The company’s gross profit for the quarter was $109.3 million, resulting in a gross margin of 49.6%, slightly down from 50.8% in the previous year. The decline in gross margin was attributed to a shift in product mix and increased costs associated with higher sales of hardware and professional services, which typically yield lower margins than software products.

In terms of operational developments, Ribbon's Cloud and Edge segment generated $137 million in revenue for the second quarter, up from $110.6 million in 2024, while the IP Optical Networks segment contributed $83.5 million, a slight increase from $82.1 million. The company also reported a strategic restructuring plan aimed at aligning workforce levels with current sales, which resulted in restructuring expenses of $1.3 million in the second quarter. Additionally, Ribbon initiated a stock repurchase program, authorizing up to $50 million, and repurchased $2.3 million worth of shares during the quarter.

The company’s cash and cash equivalents decreased to $60.5 million as of June 30, 2025, down from $87.8 million at the end of 2024. Ribbon's total liabilities increased to $771.7 million, compared to $757.9 million at the end of the previous fiscal year. The company’s long-term debt stood at $327.6 million, with an average interest rate of 10.6%. Ribbon continues to navigate challenges posed by global economic conditions, including inflation and geopolitical tensions, which may impact future operations and customer spending.

Looking ahead, Ribbon anticipates continued revenue growth in 2025, particularly from its Cloud and Edge segment, driven by increased purchases from key customers such as Verizon. The company expects to maintain its focus on expanding its product offerings and enhancing its service capabilities while managing costs effectively to improve profitability.