Ribbon Communications reported first‑quarter 2026 results on 2026‑04‑28, posting revenue of $163 million—down 10% year‑over‑year and slightly below the consensus estimate of $163.2 million. The company recorded a non‑GAAP diluted loss per share of $0.05, beating the consensus estimate of $0.06, while GAAP diluted EPS was a loss of $0.20.
Revenue decline was driven by weaker performance in both core segments. The IP Optical Networks segment saw a slowdown in deployment pace with key U.S. Tier 1 service providers, while the Cloud & Edge segment experienced lower professional‑services revenue and higher service‑costs. The mix shift toward higher‑volume, lower‑margin sales in India—particularly to Bharti Airtel—contributed to the overall revenue shortfall.
Gross margin compression was evident: non‑GAAP gross margin fell to 45.8% from 48.6% in Q1 2025. The lower margin mix, higher service‑costs, and reduced professional‑services revenue all pressured the margin, while the company’s cost‑control efforts helped limit the loss to a modest $0.05 per share.
Management guided for Q2 2026 revenue of $185 million to $195 million, non‑GAAP gross margin of 49% to 50%, and adjusted EBITDA of $9 million to $14 million. The guidance reflects confidence that revenue growth will lift the mix and that margin expansion will follow as the company’s higher‑margin IP and optical deployments accelerate.
Bruce McClelland, President and CEO, said, “We remain confident in the underlying demand environment and continue to expect meaningful second‑half growth across multiple end markets including voice transformation projects with U.S. Service Providers and Federal agencies, and growing IP and Optical deployments in the U.S. and EMEA regions, with significant improvement beginning in the second quarter.” He added, “Revenue in the first quarter was in line with expectations and reflected the timing dynamics we outlined earlier this year. While margins were pressured by a slower deployment pace with key U.S. Tier 1 Service Providers and higher sales in India, we expect margin expansion as revenue increases throughout the year.”
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