Ribbon Communications Inc. reported a total revenue of $215.4 million for the third quarter of 2025, reflecting a 2.4% increase from $210.2 million in the same period of 2024. The company's product revenue decreased slightly to $110.0 million, down from $112.2 million, while service revenue increased by 7.4% to $105.4 million. For the nine months ending September 30, 2025, total revenue reached $617.2 million, a 6.0% increase compared to $582.5 million in the prior year. The gross profit for the third quarter was $108.0 million, resulting in a gross margin of 50.1%, down from 52.1% in the previous year.
The company experienced notable changes in its operational performance, with a loss from operations of $12.6 million for the nine months ended September 30, 2025, an improvement from a loss of $16.3 million in the same period of 2024. The increase in revenue was primarily driven by higher sales in the IP Optical Networks segment, which saw a revenue increase of $8.7 million, while the Cloud and Edge segment experienced a decline in product sales. The company attributed the decrease in Cloud and Edge revenue to lower sales to enterprise customers, including federal agencies.
In terms of strategic developments, Ribbon Communications has been actively restructuring its operations to align with current sales levels. The company recorded restructuring expenses of $3.5 million in the third quarter of 2025, compared to $3.8 million in the same quarter of 2024. The restructuring plan aims to streamline operations and reduce costs, with a focus on workforce reductions in certain locations. Additionally, the company has initiated a stock repurchase program, with $5.7 million spent on repurchasing shares in the nine months ended September 30, 2025.
Operationally, Ribbon Communications reported a decrease in its employee headcount as part of its restructuring efforts, although specific numbers were not disclosed. The company continues to face challenges related to global supply chain disruptions and geopolitical tensions, which may impact future revenue growth. The company has also noted that it expects to see continued revenue growth in 2025, particularly from its Cloud and Edge segment, driven by increased purchases from major customers like Verizon.
Looking ahead, Ribbon Communications anticipates that its total revenue will increase in 2025 compared to 2024, supported by growth in both the Cloud and Edge and IP Optical Networks segments. The company is focused on enhancing its product offerings and expanding its market presence, particularly in regions such as EMEA and India. However, it remains cautious about potential impacts from ongoing geopolitical tensions, inflation, and changes in customer spending behavior.
About Ribbon Communications Inc.
Ribbon Communications Inc. is a global provider of secure communications technology, offering software, hardware, and network solutions for service providers and enterprises. Its products enable voice, data, and high-bandwidth connectivity across cloud, IP, and optical networks. Serving diverse markets including telecom, government, and industry verticals, the company focuses on network modernization, 5G deployment, and secure, scalable communications with a competitive edge in cloud-native, software-centric solutions.
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