Ribbon Communications (RBBN) AI Stock Analysis

• Market Cap: $681.77M
• Dividend Yield: N/A
• Average Volume (3M): 561.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: 7.68%
• EPS Growth: 18.65%
• Country: US
• Employees: 3,052
• Sector: Technology
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 0.05
• Shares Outstanding: 177,081,850
• 10 Day Avg. Volume: 698,450
• 30 Day Avg. Volume: 561,217
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 1.26
• Enterprise Value/Gross Profit: 2.49
• Enterprise Value/Ebitda: 21.67
• 1Y Price Target: $6.00
• Price Target Upside: 51.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: $4.00 ▲(0.76% Upside)

Ribbon Communications' overall stock score reflects a mix of operational improvements and ongoing challenges. The strong earnings call performance and strategic partnerships provide a positive outlook, but persistent net losses and valuation concerns weigh heavily on the score. Technical indicators suggest a neutral market position.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust demand for Ribbon's products and services, enhancing its market position and supporting long-term business expansion.

Strategic Partnerships

The partnership with Verizon strengthens Ribbon's market presence and provides a stable revenue stream, contributing to long-term growth and competitive advantage.

Cloud & Edge Business Success

The significant growth in the Cloud & Edge segment highlights Ribbon's successful adaptation to industry trends, positioning it well for future technological shifts.

Negative Factors

Profitability Challenges

Ongoing net losses and margin pressures can hinder Ribbon's ability to reinvest in growth opportunities and may affect long-term financial health.

Cash Flow Issues

Negative free cash flow trends suggest difficulties in converting earnings to cash, potentially limiting Ribbon's operational flexibility and investment capacity.

Gross Margin Challenges

Lower-than-expected gross margins could impact Ribbon's profitability, reducing its ability to sustain competitive pricing and invest in growth initiatives.

Ribbon Communications Business Overview & Revenue Model

Company Description

Ribbon Communications Inc. provides communications technology in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It operates through two segments, Cloud and Edge, and IP Optical Networks. The Cloud and Edge segment provides software and hardware products; and solutions and services for enabling voice over internet protocol communications, voice over long-term evolution, and voice over 5G communications and unified communications and collaboration. It also offers session border controller and network transformation products. This segment serves private, public, or hybrid cloud infrastructures, as well as data centers, enterprise premises, and service provider networks. It also provides multiple solutions for VoIP, VoLTE, VoNR, and UC&C in network, on-premises, or via the telco cloud. The IP Optical Networks segment provides hardware and software solutions for IP networking, switching, routing, and optical transport to support and enable technologies, such as 5G, distributed cloud computing, and corresponding applications. It also offers multiple solutions, including 5G-native solutions for mobile-backhaul, metro and edge aggregation, core networking, data center interconnect, legacy NTR, and transport solutions for wholesale carriers. This segment serves utilities, government, defense, finance, transportation, and education and research industries, as well as service providers and enterprises. It also provides advanced analytics solutions and next generation products that provides cloud-native and streaming analytics platform for networks and subscribers. The company was formerly known as Sonus Networks, Inc. and changed its name to Ribbon Communications Inc. in November 2017. Ribbon Communications Inc. was founded in 1997 and is headquartered in Plano, Texas.

How the Company Makes Money

Ribbon Communications generates revenue through multiple streams, primarily by selling its software and hardware solutions to telecommunications service providers and enterprises. Key revenue streams include the sale of session border controllers, which facilitate secure VoIP communications, and cloud-based communication services that support video conferencing and collaboration tools. The company also earns revenue from maintenance and support services, as well as professional services related to the deployment and integration of its products. Additionally, Ribbon benefits from strategic partnerships with major telecommunications operators and technology firms, which enhance its market reach and provide opportunities for joint ventures and collaborative product offerings, further contributing to its earnings.

Ribbon Communications Financial Statement Overview

Summary

Ribbon Communications shows incremental operational improvements and a stable revenue base, yet struggles with profitability and cash flow generation. The balance sheet is becoming more robust, with improved debt management. However, continued net losses and negative free cash flow pose risks to financial stability and long-term sustainability.

Income Statement

The company has shown a steady revenue trend with a slight increase in TTM data. However, persistent net losses and declining gross profit margins indicate challenges in achieving profitability. The EBIT and EBITDA margins have improved in the latest TTM, suggesting operational improvements, but the negative net income continues to be a concern.

Balance Sheet

The balance sheet shows moderate leverage with a declining debt-to-equity ratio, indicating improved capital structure stability. The equity ratio is relatively stable, and the slight improvement in ROE in recent periods suggests better utilization of shareholder funds, though it is still negative due to net losses.

Cash Flow

Cash flow analysis reveals fluctuating free cash flow with a negative trend in the latest TTM period. Operating cash flow has decreased but remains positive, which is positive for liquidity. However, the free cash flow to net income ratio reflects challenges in converting earnings to cash due to ongoing net losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	833.88M	826.34M	819.76M	844.96M	843.79M
Gross Profit	439.51M	379.48M	400.94M	444.66M	493.11M
EBITDA	52.48M	43.28M	45.28M	101.08M	194.65M
Net Income	-54.23M	-66.21M	-98.08M	-177.19M	88.59M
Balance Sheet
Total Assets	1.16B	1.14B	1.26B	1.35B	1.55B
Cash, Cash Equivalents and Short-Term Investments	87.77M	26.63M	67.10M	103.92M	128.43M
Total Debt	383.67M	287.03M	387.93M	442.87M	474.20M
Total Liabilities	757.93M	691.39M	737.14M	820.57M	860.41M
Stockholders Equity	404.62M	452.76M	518.43M	527.17M	686.85M
Cash Flow
Free Cash Flow	27.83M	7.71M	-39.92M	2.05M	74.84M
Operating Cash Flow	50.24M	17.09M	-26.36M	19.18M	101.56M
Investing Cash Flow	-22.87M	-9.48M	-12.14M	-14.19M	-330.07M
Financing Cash Flow	37.71M	-47.86M	931.00K	-33.68M	319.30M

Ribbon Communications Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBBN, the sentiment is Positive. The current price of 3.97 is above the 20-day moving average (MA) of 3.97, above the 50-day MA of 3.92, and above the 200-day MA of 3.93, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.78 is Neutral, neither overbought nor oversold. The STOCH value of 24.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RBBN.

Ribbon Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDCM	76 Outperform	225.53M	25.36	0.00%	―	18.18%	89.73%
SNREY	69 Neutral	158.86M	―	-8.39%	6.44%	0.00%	0.00%
SIFY	61 Neutral	900.76M	―	-3.90%	―	10.20%	0.00%
RBBN	58 Neutral	$681.77M	―	-11.45%	―	7.68%	18.65%
OOMA	56 Neutral	360.18M	-224.74	-1.71%	―	5.42%	69.88%
ATEX	55 Neutral	399.72M	13.73	-7.26%	―	15.97%	0.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Ribbon Communications Corporate Events

Ribbon Communications EVP Dan Redington to Depart

As of September 30, 2025, Dan Redington, the Executive Vice President of Global Sales at Ribbon Communications, will be leaving the company to explore other opportunities. Ribbon plans to appoint a new head of Global Sales by the end of the third quarter of 2025, which may impact its sales operations and strategic direction.

The most recent analyst rating on (RBBN) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Ribbon Communications stock, see the RBBN Stock Forecast page.