Ribbon Communications Inc. (RBBN)

Ribbon Communications reported third-quarter 2026 revenue of $219 million, against $215 million a year earlier 3.

Revenue rose 14 percent from the second quarter, and the chief executive said both operating segments gained on the quarter before 3.

The gain followed a weak spring, when revenue in the three months ended 30 June 2026 was $192.3 million, down from $220.6 million a year before 2.

The 10-Q put most of that drop on Cloud and Edge, with $26.5 million less revenue, of which $18.4 million was lower product sales 2.

In the latest quarter, IP Optical Networks revenue rose 17 percent on the quarter before, led by new wins in North America, and Cloud and Edge rose 11 percent 3.

The company also pointed to a growing pipeline of data center and AI-related opportunities, which is the open question for the quarters ahead 3.

Ribbon was formed in October 2017 by the merger of Sonus Networks and GENBAND, two companies that specialized in internet voice technology 1.

GENBAND had itself acquired the assets of Nortel's carrier division in 2010, which brought an engineering and sales team and a wide base of customers 1.

Deals in 2018 and 2019 then added security products for the edge of company networks and data-analytics tools 1.

The biggest step came in March 2020, when the company completed the ECI Telecom acquisition, which added optical transport and IP routing to a business built on voice 1.

In 2025 revenue was $844.6 million, up from $833.9 million in 2024, and the company moved from a net loss of $54.2 million to net income of $39.6 million 1.

The rise came from a $6.3 million gain in Cloud and Edge on U.S. service provider demand, and a $4.4 million gain in IP Optical Networks led by India 1.

Gross margin, the share of revenue left after the cost of making the products, fell to 49.8 percent in 2025 from 52.7 percent in 2024 1.

To trim costs, the board approved a restructuring program in February 2023, and the chief executive approved workforce reductions in the first and fourth quarters of 2025 1.

In March 2023 the company raised about $53.4 million by issuing preferred stock, and in June 2024 it redeemed that stock with part of a new $385 million credit agreement 1.

Cloud and Edge

Cloud and Edge makes software and equipment for internet voice calls, including session border controllers, which secure and connect voice traffic as it moves between networks 1.

Its customers are phone companies and large enterprises, and it also sells analytics and the Acumen platform, which uses AI to automate network operations 1.

The segment brought in $511.4 million of 2025 revenue at a gross margin of 63.2 percent 1.

Verizon accounted for about 17 percent of company revenue in 2025, and the top five customers for about 41 percent 1.

IP Optical Networks

IP Optical Networks makes the Apollo line, which carries data as light over fiber, and the Neptune line of routers and switches 1.

It brought in $333.2 million of 2025 revenue at a gross margin of 29.3 percent 1.

The company said the segment had a record third quarter, growing 5 percent on the year and adding two new U.S. Tier 2 internet service providers 3.

People, sites and rivals

Bruce McClelland is president and chief executive, and Rick Marmurek is chief financial officer, as the latest results release names them 3.

The company had 3,080 employees at the end of 2025, with main sites in Plano, Texas, Westford, Massachusetts, Ottawa, Canada, Petah Tikva, Israel and Bangalore, India 1.

Contract manufacturers build its products 1.

Rivals for voice products include Huawei, Ericsson, Nokia, Oracle, Cisco and AudioCodes, and for optical and routing products Cisco, Juniper, Huawei, Nokia, Ciena, Adtran and Fujitsu 1.

Debt, cash and a lawsuit

At 30 June 2026 the credit facility balance was $337.8 million at an average interest rate of 9.9 percent, and cash was $45 million 2.

Charter Communications sued two Ribbon subsidiaries in September 2022 over indemnification, a promise to cover another party's costs 2.

On 28 May 2026 the New York court granted Ribbon summary judgment, a ruling without a full trial, and Charter has appealed 2.

The umbrella, in words

Ribbon Communications Inc. is the parent, and its filed subsidiary list names Ribbon Communications Operating Company, Inc., Sonus Networks, Inc., Genband Inc. and Network Equipment Technologies, Inc. in the United States 4.

The same list names ECI Telecom Group Ltd. and other Israeli companies, plus sales and support subsidiaries in dozens of countries 4.

Product brands include Apollo, Neptune, Acumen and Ribbon Call Trust 1.

Investors in the 2023 private placement received warrants for 4.9 million shares of common stock, which remain outstanding 1.

The headquarters in Plano, Texas is leased to September 2032 1.

For the fourth quarter of 2026 the company projects revenue of $233 million to $247 million 3.

It also projects adjusted EBITDA, a profit measure before interest, taxes and some other costs, of $40 million to $47 million, and a non-GAAP gross margin of 53.5 to 54.5 percent 3.

Chief executive Bruce McClelland said the company sees growth drivers in 2027 in voice-enabled enterprise AI applications, tools against AI-generated voice phishing, and demand for data center fiber infrastructure 3.

The board approved in 2025 a program to repurchase up to $50 million of common stock through 31 December 2027, with $41.0 million remaining at the end of 2025 1.

The company expects to record about $5 million of expense in 2026 for its 2026 restructuring plan 1.

Charter's appeal of the New York ruling is pending 2.

Its conference schedule lists Ribbon Insights on 10 to 12 November 2026 and investor conferences on 19 November and 1 December 3.

No clue on file points to a new direction yet.