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Ribbon Communications
(NASDAQ:RBBN)
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Rating:52Neutral
Price Target:
$1.50
▼(-27.18% Downside)
Action:Reiterated
Date:09/17/26
RBBN scores 52 primarily due to mixed fundamentals: improving net income and a generally stable balance sheet are offset by declining TTM revenue, slightly negative operating profitability, and materially weaker free cash flow. Technicals further pressure the score, with the stock below key moving averages and negative MACD despite oversold readings. Valuation is reasonable (P/E ~17.9), and the latest earnings call supports a potential second-half recovery via higher guidance and strong bookings/backlog, but near-term cash flow, margin pressure, and leverage remain key risks.
Positive Factors
IP Optical bookings and backlog momentum
Record IP Optical bookings and substantial backlog growth provide stronger forward demand visibility for the networking business. This momentum, alongside rising data-center interconnect activity, can support future revenue conversion and improve Ribbon’s market position as customers modernize network infrastructure.
Negative Factors
Declining revenue and delayed modernization demand
Revenue contraction in Cloud & Edge shows that customer migration activity is not yet converting into consistent growth. Slower modernization deployments and delayed opportunities reduce near-term scale benefits, making recovery dependent on execution and the timing of future enterprise and carrier projects.
Read all positive and negative factors
Positive Factors
Negative Factors
IP Optical bookings and backlog momentum
Record IP Optical bookings and substantial backlog growth provide stronger forward demand visibility for the networking business. This momentum, alongside rising data-center interconnect activity, can support future revenue conversion and improve Ribbon’s market position as customers modernize network infrastructure.
Read all positive factors
Ribbon Communications Key Performance Indicators (KPIs)
Any
Revenue by Type
Splits sales into types like recurring vs. one-time, licensing vs. maintenance, or product vs. services, indicating how predictable and resilient Ribbon’s revenue stream is. Higher recurring revenue typically means smoother cash flow and greater visibility, while a large share of one-time sales can lead to lumpy results and greater volatility.
Splits sales into types like recurring vs. one-time, licensing vs. maintenance, or product vs. services, indicating how predictable and resilient Ribbon’s revenue stream is. Higher recurring revenue typically means smoother cash flow and greater visibility, while a large share of one-time sales can lead to lumpy results and greater volatility.
Data provided by:
The Fly
The FlyRibbon Communications (RBBN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$316.52M
Dividend YieldN/A
Average Volume (3M)936.03K
Price to Earnings (P/E)18.6
Beta (1Y)1.64
Revenue Growth-7.62%
EPS GrowthN/A
CountryUS
Employees3,080
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.09
Shares Outstanding178,823,350
10 Day Avg. Volume1,147,178
30 Day Avg. Volume936,030
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)1.13
Price to Sales (P/S)0.60
P/FCF Ratio19.48
Enterprise Value/Market Cap2.42
Enterprise Value/Revenue0.96
Enterprise Value/Gross Profit2.04
Enterprise Value/Ebitda19.93
Forecast
1Y Price Target
$3.17Price Target Upside53.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.07
Revenue Forecast (FY)$840.42M
Ribbon Communications Business Overview & Revenue Model
Company Description
Ribbon Communications Inc., established in 1997 and headquartered in Plano, Texas, is a global provider of advanced communication technology. Operating across the United States, Europe, the Middle East, Africa, and the Asia Pacific region, the com...
How the Company Makes Money
Ribbon primarily makes money by selling communications infrastructure products and associated services to telecom operators and enterprise/government customers. Its revenue model generally includes: (1) Product revenue from deploying its networkin...
Ribbon Communications Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call showed clear sequential improvement and strong strategic momentum: record IP Optical bookings (book-to-bill 1.6x), a >60% YTD backlog increase, significant enterprise/cloud wins (Salesforce partnership, large Microsoft Teams deployment), and guidance that anticipates continued sequential growth. However, material year-over-year revenue declines, a non-GAAP net loss, IP Optical still EBITDA-negative, supply-chain cost pressures (~$2M/quarter), slow BEAD funding, and elevated leverage temper the outlook. Overall, the company appears to be in a recovery and re-acceleration phase with meaningful positive catalysts but still faces near-term profitability and cash-flow headwinds.Positive Updates
Sequential Revenue Growth
Revenue increased 18% sequentially to $192.0M (Q2 2026), driven by higher product shipments and stronger U.S. sales.
Negative Updates
Year-Over-Year Revenue Decline
Consolidated revenue declined 13% year-over-year in Q2 2026, reflecting a difficult comparison to prior-year Verizon-related shipments and other timing effects.
Read all updates
Q2-2026 Updates
Positive
Negative
Sequential Revenue Growth
Revenue increased 18% sequentially to $192.0M (Q2 2026), driven by higher product shipments and stronger U.S. sales.
Read all positive updates
Company Guidance
Ribbon guided Q3 revenue of $215–230M and adjusted EBITDA of $26–31M, and updated full‑year revenue to $810–840M with adjusted EBITDA of $78–88M (assuming ~ $2M/quarter of increased product/component costs and noting H2 supply limitations); Q2 actuals were revenue $192M, adjusted EBITDA $12M, non‑GAAP gross margin 49.3%, non‑GAAP net loss $5M (EPS -$0.03), cash $45M, net debt leverage 4.0x, capex $5M and operating cash flow -$12M. Segment detail: IP Optical Q2 revenue $82M, book‑to‑bill 1.6x, backlog +60% YTD, gross margin 35.2%; Cloud & Edge Q2 revenue $111M, gross margin 59.8%, adjusted EBITDA $18M (16% of rev). Management expects sequential revenue and earnings growth in Q3/Q4 and full‑year non‑GAAP gross margin of ~51–52% (previously 52.5–53.5%).Ribbon Communications Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 797.64M | 844.56M | 833.88M | 826.34M | 819.76M | 844.96M |
| Gross Profit | 375.12M | 396.86M | 439.51M | 379.48M | 400.94M | 444.66M |
| EBITDA | 38.45M | 59.82M | 91.43M | 43.28M | -16.34M | -108.72M |
| Net Income | 15.60M | 39.64M | -54.23M | -66.21M | -98.08M | -177.19M |
Balance Sheet | ||||||
| Total Assets | 1.14B | 1.21B | 1.16B | 1.14B | 1.26B | 1.35B |
| Cash, Cash Equivalents and Short-Term Investments | 43.51M | 96.41M | 87.77M | 26.63M | 67.10M | 103.92M |
| Total Debt | 397.01M | 405.13M | 383.67M | 287.03M | 387.93M | 442.87M |
| Total Liabilities | 750.25M | 763.26M | 757.93M | 691.39M | 737.14M | 820.57M |
| Stockholders Equity | 392.57M | 448.99M | 404.62M | 452.76M | 518.43M | 527.17M |
Cash Flow | ||||||
| Free Cash Flow | 7.35M | 26.06M | 27.37M | 7.61M | -39.92M | 2.05M |
| Operating Cash Flow | 22.23M | 51.40M | 50.24M | 17.09M | -26.36M | 19.18M |
| Investing Cash Flow | -15.43M | -25.34M | -22.87M | -9.48M | -12.14M | -14.19M |
| Financing Cash Flow | -23.19M | -19.43M | 37.71M | -47.86M | 931.00K | -33.68M |
Ribbon Communications Technical Analysis
Negative
2.06
Price Trends
1.97
Negative
2.25
Negative
2.38
Negative
Market Momentum
-0.07
Negative
42.62
Neutral
37.76
Neutral
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 2.06 is above the 20-day moving average (MA) of 1.83, above the 50-day MA of 1.97, and below the 200-day MA of 2.38, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 42.62 is Neutral, neither overbought nor oversold. The STOCH value of 37.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RBBN.
Ribbon Communications Risk Analysis
Ribbon Communications disclosed 50 risk factors in its most recent earnings report. Ribbon Communications reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ribbon Communications Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $172.24M | 24.79 | 6.17% | ― | 1.89% | -26.43% | |
73 Outperform | $574.08M | 53.26 | 11.59% | ― | 17.19% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $316.52M | 18.60 | 3.85% | ― | -7.62% | ― | |
47 Neutral | $433.29M | -4.99 | 140.52% | 0.90% | -4.54% | 79.01% | |
47 Neutral | $601.26M | -13.83 | -4.77% | 0.98% | 5.01% | -23.53% | |
43 Neutral | $964.10M | -103.36 | -4.89% | 1.26% | 5.88% | ― |
* Technology Sector Average
RBBN
Ribbon Communications
1.70
-2.14
-55.73%
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8.88
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10.41
-3.79
-26.69%
SHEN
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11.20
-2.07
-15.59%
SIFY
Sify Technologies
13.33
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-9.13%
OOMA
Ooma
21.00
9.44
81.66%
Ribbon Communications Corporate Events
Business Operations and StrategyFinancial Disclosures
Ribbon Showcases AI Infrastructure Role in Investor Presentation
Positive
Jun 17, 2026
In June 2026, Ribbon Communications detailed an investor presentation aligned with its participation in a June 17, 2026 conference, positioning itself as a compelling AI infrastructure play built on its core strengths in mission-critical communica...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.