However, these statements involve risks and uncertainties, including those detailed in our earnings release, our annual report on Form 10-K, as amended, and our other filings with the SEC. Reconciliations of GAAP to non-GAAP measures and certain additional information are also included in our investor presentation and our earnings release. Turning to the agenda, Tom Stanton, Adtran Holdings' CEO and Chairman of the Board, will provide key highlights for the fourth quarter and full year 2025. Earnings came in above expectations, with all three business categories achieving sequential and year-over-year growth.

In the fourth quarter, Adtran generated revenue of $291.6 million, reflecting a strong year-over-year growth of 20% and sequential growth of over 4%. This marks the sixth consecutive quarter of sequential growth and the fifth consecutive quarter of year-over-year improvement, reinforcing the strength of our company and our key markets. business led to quarterly growth, with revenue up 31% year-over-year and 14% sequentially. revenue grew 12% year-over-year and declined 3% sequentially, as expected, and consistent with recent ordering patterns among some of our larger European customers.

Optical networking solutions grew 33% year-over-year, driven by strong sales to cloud providers and enterprise customers. This increase also drove the contribution of enterprise and cloud providers to 25% of our revenue in Q4 and 21% for the full year of 2025. Access and aggregation revenue grew 9% year-over-year and 6% sequentially, supported by continued fiber access investment across the U.S. Subscriber Solutions revenue grew 17% year-over-year and 3% sequentially, driven by demand for our residential fiber CPE as customers continue to connect more subscribers.

What went well
  • Fourth-quarter revenue of $291.6 million grew 20% year-over-year and 4% sequentially, above the high end of original guidance, marking the sixth consecutive quarter of sequential growth.
  • Full-year 2025 revenue reached $1.084 billion, up 17.5%, with all three revenue categories growing at double-digit rates.
  • Optical networking grew 33% year-over-year (+$26.9 million), with enterprise and cloud providers reaching 25% of Q4 revenue.
  • Non-GAAP gross margin rose to 42.5% and non-GAAP operating profit reached $18.8 million (6.4% of revenue, up 406 basis points year-over-year), lifting non-GAAP EPS to $0.16.
  • Full-year operating cash flow of $129.8 million and free cash flow of $60.5 million rose 25% and 58% respectively, aided by nearly $50 million of inventory reduction.
  • Purchased $46.6 million of Adtran Networks shares during 2025, reducing the minority interest to under 30%, and issued ~$200 million of convertible notes at a lower interest rate than the revolver.
What went wrong
  • Non-U.S. revenue declined 3% sequentially, consistent with recent ordering patterns among some larger European customers.
  • Access and aggregation was the slowest category, growing 9% year-over-year and 6% sequentially.
  • DSO increased seven days sequentially to 66 days due to increased sales and the timing of Q4 invoicing.
  • Management cited a dynamic cost environment with variability in components such as memory.
  • Q4 EPS benefited by $0.03 from the acquisition of minority shares, a non-operational contribution.
  • First-quarter 2026 guidance of $275-$295 million with a 4%-8% operating margin reflected traditional seasonality and supply chain dynamics.

More on ADTRAN Holdings, Inc.

Reported 2026-02-26 · figures from the ADTRAN Holdings, Inc. Q4 2025 earnings call.

See how VectorShift works for your firm

Request Demo