Ribbon Communications Reports Q1 Revenue of $181 Million, Misses Estimates

Ribbon Communications reported first-quarter 2025 revenue of $181 million, missing analyst expectations and reflecting a decline in gross margins compared to the previous year. The company posted a GAAP net loss of $26 million, or $0.15 per share, which nonetheless showed slight improvement over the prior year's loss per share. Sales to service providers increased by over 10% year-over-year, but lower-than-expected sales were attributed to the delayed timing of key Federal and Enterprise deals, which are now being fulfilled in the second quarter. Despite these challenges, Ribbon's backlog grew by 35%, signaling strong demand and providing management with confidence for improved performance later in the year. Analyst sentiment remains generally positive, with a consensus 'Outperform' rating and average price targets implying significant upside potential from current levels, though fair value estimates from other sources suggest a more cautious outlook. The company continues to focus on network modernization and expects revenue growth of 5-8% in the first half of 2025, despite ongoing regional fluctuations.