The Goldman Sachs Group Acquires 1.49% Stake in Adtran Holdings

The Goldman Sachs Group, Inc. has acquired an additional 1.49% of voting rights in Adtran Holdings, Inc., bringing their total to 10.05%. The acquisition was made through the purchase of 119,087 shares and the exercise of convertible instruments. The ultimate controlling person or legal entity is not disclosed.

Goldman Sachs Group, Inc. has bolstered its position in ADTRAN Holdings, Inc. by acquiring an additional 1.49% of voting rights, bringing its total stake to 10.05%. The acquisition was executed through the purchase of 119,087 shares and the exercise of convertible instruments. The ultimate controlling person or legal entity behind this acquisition remains undisclosed [1].

ADTRAN Holdings, Inc. (NASDAQ: ADTN) is a leading provider of broadband access and networking gear, serving a wide range of clients from telecoms to governments. The company's recent performance has been notable, with shares surging about 42.8% over the past year, significantly outperforming the S&P 500's 13.6% return [1]. This growth is driven by rapid revenue expansion, positive free cash flow, and renewed investor interest in the telecom-equipment sector.

The company's Q2 2025 revenue climbed 17.3% to $265.1 million, fueled by fiber upgrades, network modernization, and a shift away from riskier suppliers. Management expects Q3 revenue to range between $270 million and $280 million, with non-GAAP operating margins of 3% to 7% [1]. Analysts anticipate full-year 2025 revenue around $1.04 billion, indicating a 10% growth rate.

Despite its improving financials, ADTRAN still faces challenges, including cyclical capital expenditure risks, profitability execution, and competitive pressures from industry giants like Cisco, Nokia, and Ericsson. The company's net debt to EBITDA ratio is 2.44x, higher than the market average, and interest coverage is thin [1]. Furthermore, ongoing trade disputes and supply chain issues pose additional risks.

Goldman Sachs' increased stake in ADTRAN suggests confidence in the company's growth prospects and potential for profitability. However, the high volatility of ADTRAN's stock and its ongoing losses on a GAAP basis may present risks for investors. As the company approaches its Q3 2025 earnings report, scheduled for early November 2025, and potential broadband infrastructure grants, investors will be closely monitoring ADTRAN's progress [1].

References:
[1] https://finimize.com/content/adtn-asset-snapshot