ADTRAN Holdings, Inc. develops and provides network access solutions. It is a global provider of open, disaggregated networking and communications equipment that ...
ADTRAN Holdings, Inc., traded on the Nasdaq under the symbol ADTN, is a global communications equipment and networking technology company headquartered in Huntsville, Alabama. Founded in 1985 by Mark C. Smith and other telecommunications professionals, the company initially focused on telecommunications access equipment and expanded over time into broadband access, ...ADTRAN Holdings, Inc., traded on the Nasdaq under the symbol ADTN, is a global communications equipment and networking technology company headquartered in Huntsville, Alabama. Founded in 1985 by Mark C. Smith and other telecommunications professionals, the company initially focused on telecommunications access equipment and expanded over time into broadband access, fiber networking, optical transport, subscriber connectivity, and software-enabled network operations. Thomas R. Stanton is the company’s chief executive officer and has led the business for many years, while also serving in senior board leadership roles.
The company’s core strategic positioning is based on open and disaggregated networking. Rather than relying exclusively on proprietary, vertically integrated systems, ADTRAN provides hardware, software, and services intended to operate across varied network infrastructures and ecosystems. Its solutions help communications service providers deliver voice, data, video, internet, and high-speed broadband services. Major technology areas include fiber access, passive optical networking, residential and business broadband equipment, access and aggregation systems, optical transport, Ethernet connectivity, network management software, and cloud-hosted operational services.
ADTRAN reports activities through two broad areas: Network Solutions and Services and Support. Network Solutions includes the physical equipment and software used in subscriber, access, aggregation, and optical networks. Services and Support includes network design, deployment assistance, maintenance, professional services, technical support, training, and cloud-based or managed capabilities. These services can help customers reduce deployment complexity, improve network availability, and manage operating costs over the life of an installed system. ADTRAN’s customer base includes large, medium-sized, and smaller telecommunications providers, broadband operators, and enterprise-oriented communications customers in the United States and international markets.
The company’s cost structure reflects the economics of a communications equipment manufacturer and software provider. Costs generally include electronic components, optical modules, printed circuit boards, enclosures, contract manufacturing, logistics, employee compensation, research and development, sales and administration, warranty obligations, and customer support. A detailed product-level bill of materials is not publicly provided in the supplied information, so specific component costs, supplier pricing, and gross margin by individual product cannot be reliably stated. Research and development is significant because network technologies evolve rapidly and customers require higher bandwidth, improved automation, interoperability, and lower deployment costs.
The supplied trailing-twelve-month data indicates approximately $612.3 million in equity market capitalization and approximately $775.8 million in enterprise value at the quoted snapshot, although market values change continuously. The same data shows a gross margin of about 38.5%, EBITDA margin of approximately 7.4%, free cash flow of roughly $97.6 million to the firm, working capital of approximately $273.0 million, and a current ratio of about 1.79. It also reports negative net income and negative return metrics for the period, highlighting that profitability has been under pressure despite positive reported free cash flow. ADTRAN’s future priorities include expanding broadband and fiber deployments, improving software and service content, increasing operating efficiency, maintaining customer relationships, and converting its technology portfolio into more consistent revenue and earnings growth.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.1B
+17.5%
-1.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-45.7M
+90.1%
-725.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+38.3%
+9.0%
-6.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-1.4%
+96.9%
-260.8%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-4.2%
+91.5%
-740.0%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$98.0M
+155.3%
+228.8%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+9.0%
+117.3%
+234.5%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
168.0%
-1.0%
+5.9%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.76x
-14.0%
+1.5%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Ladies and gentlemen, welcome to the ADTRAN Holdings, Inc. Second Quarter 2026 Earnings Conference Call. Please note that this call is being recorded. [Operator Instructions] Now I would like to turn the call over to Tom Stanton, Chairman and CEO of ADTRAN Holdings, Inc. Tom, you may begin.
Thomas Stanton: Thank you, operator. Good morning, everyone. Although we are disappointed with the reported results of this past quarter, we believe they were driven by a specific set of factors. As we communicated in our preliminary results press release, the project delay from a single customer, combined with unfavorable impacts from product and customer mix caused our results to fall short of our guidance. Despite these factors, demand across our markets -- our end markets remains healthy. Our strategic priorities remain on track, and our customer base continues to diversify. We believe those underlying fundamentals position us well as we look ahead into 2027. As we shared in our pre-announcement, one of our customers adjusted the timing of a project, which affected our results for the quarter. This customer remains committed to its deployment objectives, and we view this as a timing adjustment rather than a change in demand. Overall customer demand remained strong during the quarter, but a challenging supply environment limited our ability to fulfill that demand, constraining shipments and resulting in an unfavorable mix. To be clear, absent these incremental supply constraints, we would have met our original revenue guidance. Against this backdrop, ADTRAN delivered second quarter revenue of $281.1 million, consistent with our preliminary results and non-GAAP operating margin of approximately 3.8%, also in line with our pre-announcement. While these results reflected the items I just discussed, several indicators of our strategic progress continued to strengthen during the quarter. Our optical business continued to serve as a key growth engine, and our growth was broad-based across service provider, enterprise, government and cloud customers and reflects continued demand for higher capacity optical infrastructure. AI-driven networking expansion and secure connectivity. We are also generating tangible benefits from our diversification strategy. Revenue from enterprise, government and cloud customers grew a strong 47% year-over-year and 19% sequentially, accounting for 25% of total company revenue in the quarter. Within this customer segment, revenue from hyperscalers increased 97% year-over-year, underscoring the strength of our diversification strategy. This momentum is being driven primarily by our data center interconnect business. In parallel, we continue to expand engagements with hyperscalers and large-scale content providers for our upcoming MicroMux Quattro and the LiteWave 800 pluggable optics solutions. The results highlight our growing participation in attractive end markets beyond our traditional service provider base and reflect the …
