ADTRAN Q2 Earnings Beat Estimates, Revenue Up 17.1% YoY

ADTRAN Inc. reported Q2 earnings of -$20.53 million, compared to -$49.67 million in the same period last year. EPS was -$0.24, down from -$0.63 in the same period last year. Revenue increased to $265.07 million from $225.99 million in the same period last year. The company expects Q3 revenue to be between $270 million and $280 million and non-GAAP operating margin to be 3.0% to 7.0%.

HUNTSVILLE, Ala. -- ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) reported its unaudited financial results for the second quarter ended June 30, 2025, showcasing significant improvements compared to the same period last year. The company reported a net loss of -$20.53 million, a substantial improvement from -$49.67 million in Q2 2024. Earnings per share (EPS) also improved to -$0.24 from -$0.63 in the same period last year.

Revenue for the quarter increased to $265.1 million, a 17% year-over-year increase from $225.99 million in Q2 2024. The company attributed this growth to solid execution across its business and increasing demand for its networking solutions. The gross margin improved to 37.3% on a GAAP basis, and the non-GAAP gross margin was 41.4%. Operating margin improved to 5.0% on a GAAP basis and 3.0% on a non-GAAP basis.

ADTRAN Holdings also reported a net cash provided by operating activities of $32.2 million, with cash and cash equivalents increasing to $106.3 million. The company's Chairman and CEO, Tom Stanton, noted, "We delivered strong second quarter results with revenue growth that exceeded expectations, reflecting solid execution across our business and increasing demand. We experienced growth across all major revenue categories and gained market share in key areas. We also continued to strengthen our balance sheet with solid cash generation."

Looking ahead, ADTRAN Holdings expects revenue to be within a range of $270.0 million to $280.0 million for the third quarter of 2025. The non-GAAP operating margin is expected to be within a range of 3.0% to 7.0%. The company will hold a conference call to discuss its second quarter 2025 results on Tuesday, August 5, 2025, at 9:30 a.m. Central Time.

References:

[1] https://www.businesswire.com/news/home/20250804864935/en/ADTRAN-Holdings-Inc.-reports-second-quarter-2025-financial-results