Ribbon Communications (RBBN) AI Stock Analysis

• Market Cap: $593.37M
• Dividend Yield: N/A
• Average Volume (3M): 594.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: 7.38%
• EPS Growth: 20.81%
• Country: US
• Employees: 3,052
• Sector: Technology
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 0.04
• Shares Outstanding: 176,599,600
• 10 Day Avg. Volume: 588,593
• 30 Day Avg. Volume: 594,189
• PEG Ratio: 0.65
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 26.01
• Enterprise Value/Market Cap: 1.78
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 2.39
• Enterprise Value/Ebitda: 15.43
• 1Y Price Target: $5.63
• Price Target Upside: 67.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 47 Neutral
• Price Target: $3.50 ▲(4.17% Upside)

Ribbon Communications faces significant financial challenges, with ongoing losses and negative cash flow impacting its financial performance score. Technical indicators suggest a bearish trend, further weighing on the stock. While the earnings call provided some optimism with strong growth in specific segments, the impact of the U.S. government shutdown and negative valuation metrics limit the overall score.

Positive Factors

IP Optical Networks Growth

The strong growth in IP Optical Networks indicates robust demand and successful product offerings, enhancing Ribbon's competitive position in the telecommunications sector.

Regional Performance in EMEA and India

Significant sales growth in EMEA and India demonstrates Ribbon's successful market penetration and potential for sustained revenue expansion in these regions.

New Product Innovations

Innovative products like Acumen enhance Ribbon's technological edge and customer appeal, potentially driving future growth and market differentiation.

Negative Factors

Negative Cash Flow

The significant decline in free cash flow indicates ongoing financial strain, limiting Ribbon's ability to invest in growth opportunities and manage debt effectively.

Impact of U.S. Government Shutdown

The shutdown's impact on sales highlights vulnerability to government-related disruptions, affecting revenue stability and planning.

Decline in North American Sales

The decline in North American sales suggests challenges in a key market, potentially affecting overall revenue and strategic positioning.

Ribbon Communications Business Overview & Revenue Model

Company Description

Ribbon Communications (RBBN) is a global provider of communications technology that enables service providers, enterprises, and government agencies to connect and collaborate. The company specializes in software and hardware solutions for secure and reliable communications, including voice, video, and messaging services. Ribbon operates primarily in the sectors of telecommunications and networking, offering core products such as session border controllers, analytics, and cloud communications solutions, which enhance network performance and security for its clients.

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 is experiencing modest revenue growth, but profitability and cash flow remain significant challenges. The company has improved its leverage position, but negative returns on equity and declining cash flow metrics highlight ongoing financial difficulties. Continued focus on improving profitability and cash generation is essential for future stability.

Income Statement

Ribbon Communications shows a modest revenue growth rate of 3.35% in the TTM, indicating some positive momentum. However, the company struggles with profitability, as evidenced by a negative net profit margin of -5.14% and a low EBIT margin of 0.76%. The gross profit margin is relatively healthy at 51.12%, but the overall profitability remains a concern.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.22 in the TTM, suggesting better leverage management compared to previous periods. However, the return on equity remains negative at -11.43%, indicating challenges in generating returns for shareholders. The equity ratio stands at 33.28%, reflecting a stable capital structure.

Cash Flow

The cash flow situation is challenging, with a significant decline in free cash flow growth at -384.75% in the TTM. The operating cash flow to net income ratio is low at 0.14, indicating limited cash generation relative to net losses. The free cash flow to net income ratio is 0.18, showing some ability to generate cash despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	863.46M	833.88M	826.34M	819.76M	844.96M	843.79M
Gross Profit	441.37M	439.51M	379.48M	400.94M	444.66M	493.11M
EBITDA	68.42M	52.48M	43.28M	45.28M	101.08M	194.65M
Net Income	-44.38M	-54.23M	-66.21M	-98.08M	-177.19M	88.59M
Balance Sheet
Total Assets	1.11B	1.16B	1.14B	1.26B	1.35B	1.55B
Cash, Cash Equivalents and Short-Term Investments	60.45M	87.77M	26.63M	67.10M	103.92M	128.43M
Total Debt	81.63M	383.67M	287.03M	387.93M	442.87M	474.20M
Total Liabilities	771.74M	757.93M	691.39M	737.14M	820.57M	860.41M
Stockholders Equity	370.44M	404.62M	452.76M	518.43M	527.17M	686.85M
Cash Flow
Free Cash Flow	7.76M	27.83M	7.71M	-39.92M	2.05M	74.84M
Operating Cash Flow	42.59M	50.24M	17.09M	-26.36M	19.18M	101.56M
Investing Cash Flow	-34.82M	-22.87M	-9.48M	-12.14M	-14.19M	-330.07M
Financing Cash Flow	-13.14M	37.71M	-47.86M	931.00K	-33.68M	319.30M

Ribbon Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBBN, the sentiment is Negative. The current price of 3.36 is below the 20-day moving average (MA) of 3.67, below the 50-day MA of 3.82, and below the 200-day MA of 3.88, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 34.99 is Neutral, neither overbought nor oversold. The STOCH value of 19.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RBBN.

Ribbon Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDCM	―	$217.52M	23.93	9.74%	―	18.18%	89.73%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SIFY	―	$831.31M	―	―	―	5.81%	―
SHEN	―	$668.11M	-16.74	-4.41%	0.77%	11.59%	-106.83%
RBBN	―	$593.37M	-13.71	-11.40%	―	7.38%	20.81%
CCOI	―	$2.01B	-8.96	-93.59%	9.76%	-6.64%	-569.94%
OOMA	―	$309.95M	―	-1.78%	―	5.42%	69.88%

Ribbon Communications Corporate Events

Ribbon Communications’ Earnings Call: Growth Amid Challenges

Ribbon Communications’ recent earnings call painted a picture of mixed sentiment, showcasing robust growth in certain segments while highlighting significant challenges. The company reported strong year-over-year growth in IP Optical Networks and key regions such as EMEA and India. However, the U.S. government shutdown posed challenges, particularly affecting sales in North America and the Cloud & Edge segment. Despite promising product innovations and strategic wins, the uncertainty surrounding U.S. government-related sales adds a layer of caution to the company’s outlook.

Ribbon Communications Reports Solid Q3 2025 Results

Ribbon Communications Inc., a leader in real-time communications technology and IP optical networking solutions, serves global service providers, enterprises, and critical infrastructure operators by modernizing and safeguarding their networks.

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.