Ciena^®Corporation (NYSE:CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal third quarter ended August 2, 2025.

Q3 Revenue: $1.22 billion
Q3 Net Income per Share: $0.35 GAAP; $0.67 adjusted (non-GAAP)
Share Repurchases: Repurchased approximately 1.0 million shares of common stock for an aggregate price of $81.8 million during the quarter

"We delivered another strong quarterly performance that reflects our leadership in high-speed connectivity and ongoing accelerated customer demand as the network becomes fundamental to the underpinning, growth, and monetization of AI," said Gary Smith, president and CEO, Ciena. "With visibility well into fiscal year 2026, we are confident in the continued momentum of our business and remain focused on further expanding our operating leverage as we continue to grow."

For the fiscal third quarter 2025, Ciena reported revenue of $1.22 billion as compared to $942.3 million for the fiscal third quarter 2024.

Ciena's GAAP net income for the fiscal third quarter 2025 was $50.3 million, or $0.35 per diluted common share, which compares to a GAAP net income of $14.2 million, or $0.10 per diluted common share, for the fiscal third quarter 2024.

Ciena's adjusted (non-GAAP) net income for the fiscal third quarter 2025 was $96.2 million, or $0.67 per diluted common share, which compares to an adjusted (non-GAAP) net income of $50.8 million, or $0.35 per diluted common share, for the fiscal third quarter 2024.

Fiscal Third Quarter 2025 Performance Summary

The tables below (in millions, except percentage data) provide comparisons of certain quarterly results to the prior year. Appendices A and B set forth reconciliations between the GAAP and adjusted (non-GAAP) measures contained in this release.

	GAAP Results (unaudited)
	Q3			Q3			Period Change
	FY 2025			FY 2024			Y-T-Y*
Revenue	$	1,219.4		$	942.3		29.4	%
Gross margin		41.3	%		42.9	%	(1.6	)%
Operating expense	$	429.5		$	377.2		13.9	%
Operating margin		6.1	%		2.9	%	3.2	%

	Non-GAAP Results (unaudited)
	Q3			Q3			Period Change
	FY 2025			FY 2024			Y-T-Y*
Revenue	$	1,219.4		$	942.3		29.4	%
Adj. gross margin		41.9	%		43.7	%	(1.8	)%
Adj. operating expense	$	380.2		$	336.0		13.2	%
Adj. operating margin		10.7	%		8.0	%	2.7	%
Adj. EBITDA	$	158.0		$	98.5		60.4	%

* Denotes % change, or in the case of margin, absolute change

	Revenue by Segment (unaudited)
	Q3 FY 2025			Q3 FY 2024
	Revenue		%**	Revenue		%**
Networking Platforms
Optical Networking	$	815.5	66.9	$	606.8	64.4
Routing and Switching		125.9	10.3		92.7	9.8
Total Networking Platforms		941.4	77.2		699.5	74.2

Platform Software and Services		90.0	7.4		83.2	8.9

Blue Planet Automation Software and Services		27.8	2.3		25.8	2.7

Global Services
Maintenance Support and Training		80.7	6.6		74.4	7.9
Installation and Deployment		65.9	5.4		46.5	4.9
Consulting and Network Design		13.6	1.1		12.9	1.4
Total Global Services		160.2	13.1		133.8	14.2

Total	$	1,219.4	100.0	$	942.3	100.0

** Denotes % of total revenue

Additional Performance Metrics for Fiscal Third Quarter 2025

	Revenue by Geographic Region (unaudited)
	Q3 FY 2025			Q3 FY 2024
	Revenue		% **	Revenue		% **
Americas	$	923.6	75.7	$	718.6	76.3
Europe, Middle East and Africa		186.0	15.3		135.0	14.3
Asia Pacific		109.8	9.0		88.7	9.4
Total	$	1,219.4	100.0	$	942.3	100.0

** Denotes % of total revenue

Two customers represented 10%-plus of revenue combining for a total of 28.8% of revenue
Cash and investments totaled $1.39 billion
Cash flow from operations totaled $174.3 million
Average days' sales outstanding (DSOs) were 88
Accounts receivable, net balance was $1.03 billion
Unbilled contract asset, net balance was $164.3 million
Inventories totaled $860.4 million, including:
- Raw materials: $642.7 million
- Work in process: $35.6 million
- Finished goods: $261.8 million
- Deferred cost of sales: $41.8 million
- Reserve for excess and obsolescence: $(121.5) million
Product inventory turns were 2.7
Headcount totaled 9,213

Business Outlook for Fiscal Fourth Quarter 2025

Statements relating to business outlook are forward-looking in nature and actual results may differ materially. These statements should be read in the context of the "Economic considerations and assumptions" in our accompanying Earnings Presentation, and each of the "Forward-Looking Statements" and "Reconciliation of Adjusted (Non- GAAP) Measurements" found in the Notes to Investors below.

Ciena expects fiscal fourth quarter 2025 financial performance to include:

Revenue in the range of $1.24 billion to $1.32 billion
Adjusted (non-GAAP) gross margin between 42% to 43%
Adjusted (non-GAAP) operating expense in a range of $390 million to $400 million

Supplemental Materials and Live Web Broadcast of Unaudited Fiscal Third Quarter 2025 Results

Today, Thursday, September 4, 2025, in conjunction with this announcement, Ciena has posted to the Quarterly Results page of the Investor Relations section of its website certain related supporting materials for its unaudited fiscal third quarter 2025 results.

Ciena's management will also host a discussion today with investors and financial analysts that will include the Company's outlook. The live audio web broadcast beginning at 8:30 a.m. Eastern will be accessible via www.ciena.com. An archived replay of the live broadcast will be available shortly following its conclusion on the Investor Relations page of Ciena's website.

Notes to Investors

Forward-Looking Statements. You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission ("SEC") filings, recent news, financial results, supplemental financial information, and other announcements. From time to time we exclusively post material information to this website along with other disclosure channels that we use. This press release contains certain forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, forecasts, assumptions and other information available to the Company as of the date hereof. Forward-looking statements include statements regarding Ciena's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. Forward-looking statements in this release include: "We delivered another strong quarterly performance that reflects our leadership in high-speed connectivity and ongoing accelerated customer demand as the network becomes fundamental to the underpinning, growth, and monetization of AI. With visibility well into fiscal year 2026, we are confident in the continued momentum of our business and remain focused on further expanding our operating leverage as we continue to grow."

Ciena's actual results, performance or events may differ materially from these forward-looking statements made or implied due to a number of risks and uncertainties relating to Ciena's business, including: the effect of broader economic and market conditions on our customers, their spending and their businesses and markets; our ability to execute our business and growth strategies; the impact of macroeconomic conditions and global supply chain constraints or disruptions including increased supply costs and lead times; the impact of the introduction of new technologies by us or our competitors; the timing and size of customer orders, their delivery dates and our ability to recognize revenue relating to such sales; the level of competitive pressure we encounter; the product, customer and geographic mix of sales within the period; changes in foreign currency exchange rates; factors beyond our control such as natural disasters, climate change, acts of war or terrorism, geopolitical tensions or events, including but not limited to the ongoing conflicts between Ukraine and Russia, and Israel and Hamas, and public health emergencies or epidemics and pandemics; changes in tax or trade regulations, including the imposition of tariffs, duties or efforts to withdraw from or materially modify international trade agreements; cyberattacks, data breaches or other security incidents involving our enterprise network environment or our products; regulatory changes, litigation involving our intellectual property or government investigations; and the other risk factors disclosed in Ciena's periodic reports filed with the Securities and Exchange Commission (SEC) including its Annual Report on Form 10-K filed with the SEC on December 20, 2024 and included in its Quarterly Report on Form 10-Q for the third quarter of fiscal 2025 to be filed with the SEC. Ciena assumes no obligation to update any forward-looking information included in this press release.

Non-GAAP Presentation of Quarterly and Annual Results. This release includes non-GAAP measures of Ciena's gross profit, operating expense, income from operations, earnings before interest, tax, depreciation and amortization (EBITDA), Adjusted EBITDA, and measures of net income and net income per share. In evaluating the operating performance of Ciena's business, management excludes certain charges and credits that are required by GAAP. These items share one or more of the following characteristics: they are unusual and Ciena does not expect them to recur in the ordinary course of its business; they do not involve the expenditure of cash; they are unrelated to the ongoing operation of the business in the ordinary course; or their magnitude and timing is largely outside of Ciena's control. Management believes that the non-GAAP measures below provide management and investors useful information and meaningful insight to the operating performance of the business. The presentation of these non-GAAP financial measures should be considered in addition to Ciena's GAAP results and these measures are not intended to be a substitute for the financial information prepared and presented in accordance with GAAP. Ciena's non-GAAP measures and the related adjustments may differ from non-GAAP measures used by other companies and should only be used to evaluate Ciena's results of operations in conjunction with our corresponding GAAP results. To the extent not previously disclosed in a prior Ciena financial results press release, Appendices A and B to this press release set forth a complete GAAP to non-GAAP reconciliation of the non-GAAP measures contained in this release.

With respect to Ciena's expectations under "Business Outlook for Fiscal Fourth Quarter 2025" above, Ciena is not able to provide a quantitative reconciliation of the adjusted (non-GAAP) gross margin and adjusted (non-GAAP) operating expense guidance measures to the corresponding gross profit and gross profit percentage, and operating expense GAAP measures without unreasonable efforts. Ciena cannot provide meaningful estimates of the non-recurring charges and credits excluded from these non-GAAP measures due to the forward-looking nature of these estimates and their inherent variability and uncertainty. For the same reasons, Ciena is unable to address the probable significance of the unavailable information.

About Ciena. Ciena (NYSE:CIEN) is a global leader in networking systems, services, and software. We build the most adaptive networks in the industry, enabling customers to anticipate and meet ever-increasing digital demands. For three-plus decades, Ciena has brought our humanity to our relentless pursuit of innovation. Prioritizing collaborative relationships with our customers, partners, and communities, we create flexible, open, and sustainable networks that better serve all users—today and into the future. For updates on Ciena, follow us on LinkedIn, X, the Ciena Insights blog, or visit www.ciena.com.

CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

	Quarter Ended						Nine Months Ended
	August 2,			July 27,			August 2,			July 27,
	2025			2024			2025			2024
Revenue:
Products	$	976,801		$	729,503		$	2,730,167		$	2,266,596
Services		242,584			212,805			687,356			624,247
Total revenue		1,219,385			942,308			3,417,523			2,890,843
Cost of goods sold:
Products		580,028			433,533			1,620,816			1,315,737
Services		136,278			104,830			368,969			315,538
Total cost of goods sold		716,306			538,363			1,989,785			1,631,275
Gross profit		503,079			403,945			1,427,738			1,259,568
Operating expenses:
Research and development		211,898			188,888			619,429			571,537
Selling and marketing		148,724			121,520			424,911			373,749
General and administrative		60,596			58,248			171,450			162,504
Significant asset impairments and restructuring costs		1,770			1,361			5,262			21,987
Amortization of intangible assets		6,556			7,185			19,646			22,384
Total operating expenses		429,544			377,202			1,240,698			1,152,161
Income from operations		73,535			26,743			187,040			107,407
Interest and other income, net		15,090			14,013			34,539			36,460
Interest expense		(22,806	)		(24,401	)		(67,421	)		(72,038	)
Loss on extinguishment and modification of debt		—			—			(729	)		—
Income before income taxes		65,819			16,355			153,429			71,829
Provision for income taxes		15,511			2,125			49,580			24,901
Net income	$	50,308		$	14,230		$	103,849		$	46,928

Net Income per Common Share
Basic net income per common share	$	0.35		$	0.10		$	0.73		$	0.32
Diluted net income per potential common share	$	0.35		$	0.10		$	0.72		$	0.32

Weighted average basic common shares outstanding		141,846			144,394			142,437			144,876
Weighted average dilutive potential common shares outstanding¹		144,499			145,361			145,158			145,795

¹ Weighted average dilutive potential common shares outstanding used in calculating GAAP diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 2.7 million for both the third quarter and first nine months of fiscal 2025; and (ii) 1.0 million and 0.9 million for the third quarter and first nine months of fiscal 2024, respectively.

CIENA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)

	August 2, 2025			November 2, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	1,055,976		$	934,863
Short-term investments		270,380			316,343
Accounts receivable, net		1,025,563			908,597
Inventories, net		860,403			820,430
Prepaid expenses and other		473,901			564,183
Total current assets		3,686,223			3,544,416
Long-term investments		64,397			80,920
Equipment, building, furniture and fixtures, net		368,348			337,722
Operating right-of-use assets		40,347			27,417
Goodwill		444,828			444,707
Other intangible assets, net		138,673			165,020
Deferred tax asset, net		851,903			886,441
Other long-term assets		154,059			154,694
Total assets	$	5,748,778		$	5,641,337
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	464,684		$	423,401
Accrued liabilities and other short-term obligations		436,312			393,905
Deferred revenue		196,209			156,379
Operating lease liabilities		14,694			14,455
Current portion of long-term debt		11,580			11,700
Total current liabilities		1,123,479			999,840
Long-term deferred revenue		81,057			81,240
Other long-term obligations		195,976			185,938
Long-term operating lease liabilities		34,498			25,107
Long-term debt, net		1,526,467			1,533,074
Total liabilities		2,961,477			2,825,199
Stockholders' equity:
Preferred stock – par value $0.01; 20,000,000 shares authorized; zero shares issued and outstanding		—			—
Common stock – par value $0.01; 290,000,000 shares authorized; 141,342,527 and 142,656,116 shares issued and outstanding		1,413			1,427
Additional paid-in capital		6,020,315			6,154,869
Accumulated other comprehensive loss		(44,829	)		(46,711	)
Accumulated deficit		(3,189,598	)		(3,293,447	)
Total stockholders' equity		2,787,301			2,816,138
Total liabilities and stockholders' equity	$	5,748,778		$	5,641,337

CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

	Nine Months Ended
	August 2,			July 27,
	2025			2024
Cash flows provided by operating activities:
Net income	$	103,849		$	46,928
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements		76,637			68,997
Share-based compensation expense		135,696			115,433
Amortization of intangible assets		26,343			30,675
Deferred taxes		(21,709	)		(19,909	)
Provision for inventory excess and obsolescence		34,185			35,400
Provision for warranty		16,302			14,708
Other		(1,838	)		11,968
Changes in assets and liabilities:
Accounts receivable		(116,887	)		92,421
Inventories		(73,493	)		78,220
Prepaid expenses and other		137,440			(221,823	)
Operating lease right-of-use assets		8,759			8,963
Accounts payable, accruals and other obligations		83,354			(112,352	)
Deferred revenue		38,246			28,833
Short and long-term operating lease liabilities		(11,868	)		(13,290	)
Net cash provided by operating activities		435,016			165,172
Cash flows used in investing activities:
Payments for equipment, furniture, and fixtures		(95,373	)		(53,098	)
Purchases of investments		(191,335	)		(197,303	)
Proceeds from sales and maturities of investments		261,611			114,899
Settlement of foreign currency forward contracts, net		(2,635	)		(362	)
Purchase of equity investments		—			(21,682	)
Net cash used in investing activities		(27,732	)		(157,546	)
Cash flows used in financing activities:
Proceeds for modification of debt, net		19,175			—
Cash paid for extinguishment of debt		(19,175	)		—
Payment of long term debt		(8,685	)		(5,850	)
Payment of debt issuance costs		(12	)		(2,554	)
Payment of finance lease obligations		(3,244	)		(3,004	)
Shares repurchased for tax withholdings on vesting of stock unit awards		(60,043	)		(33,450	)
Repurchases of common stock - repurchase program, net		(250,035	)		(125,816	)
Proceeds from issuance of common stock		35,874			34,292
Net cash used in financing activities		(286,145	)		(136,382	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		60			1,499
Net increase (decrease) in cash, cash equivalents and restricted cash		121,199			(127,257	)
Cash, cash equivalents and restricted cash at beginning of period		935,026			1,010,786
Cash, cash equivalents and restricted cash at end of period	$	1,056,225		$	883,529
Supplemental disclosure of cash flow information
Cash paid during the period for interest, net	$	68,243		$	64,999
Cash paid during the period for income taxes, net	$	84,898		$	41,736
Operating lease payments	$	13,246		$	14,672
Non-cash investing and financing activities
Purchase of equipment in accounts payable	$	14,819		$	35,316
Repurchase of common stock in accrued liabilities from repurchase program, net	$	2,231		$	1,762
Operating right-of-use assets subject to lease liability	$	21,850		$	5,326

APPENDIX A - Reconciliation of Adjusted (Non- GAAP) Measurements
(in thousands, except per share data) (unaudited)

	Quarter Ended
	August 2,			July 27,
	2025			2024
Gross Profit Reconciliation (GAAP/non-GAAP)
GAAP gross profit	$	503,079		$	403,945
Share-based compensation-products		2,027			1,660
Share-based compensation-services		3,942			3,122
Amortization of intangible assets		2,232			2,764
Total adjustments related to gross profit		8,201			7,546
Adjusted (non-GAAP) gross profit	$	511,280		$	411,491
Adjusted (non-GAAP) gross profit percentage		41.9	%		43.7	%

Operating Expense Reconciliation (GAAP/non-GAAP)
GAAP operating expense	$	429,544		$	377,202
Share-based compensation-research and development		16,749			13,118
Share-based compensation-sales and marketing		13,277			10,315
Share-based compensation-general and administrative		11,008			9,257
Significant asset impairments and restructuring costs		1,770			1,361
Amortization of intangible assets		6,556			7,185
Total adjustments related to operating expense		49,360			41,236
Adjusted (non-GAAP) operating expense	$	380,184		$	335,966

Income from Operations Reconciliation (GAAP/non-GAAP)
GAAP income from operations	$	73,535		$	26,743
Total adjustments related to gross profit		8,201			7,546
Total adjustments related to operating expense		49,360			41,236
Total adjustments related to income from operations		57,561			48,782
Adjusted (non-GAAP) income from operations	$	131,096		$	75,525
Adjusted (non-GAAP) operating margin percentage		10.7	%		8.0	%

Net Income Reconciliation (GAAP/non-GAAP)
GAAP net income	$	50,308		$	14,230
Exclude GAAP provision for income taxes		15,511			2,125
Income before income taxes		65,819			16,355
Total adjustments related to income from operations		57,561			48,782
Adjusted income before income taxes		123,380			65,137
Non-GAAP tax provision on adjusted income before income taxes		27,144			14,330
Adjusted (non-GAAP) net income	$	96,236		$	50,807

Weighted average basic common shares outstanding		141,846			144,394
Weighted average dilutive potential common shares outstanding ¹		144,499			145,361

Net Income per Common Share
GAAP diluted net income per potential common share	$	0.35		$	0.10
Adjusted (non-GAAP) diluted net income per potential common share	$	0.67		$	0.35

¹Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 2.7 million for the third quarter of fiscal 2025; and (ii) 1.0 million for the third quarter of fiscal 2024.

APPENDIX B - Calculation of EBITDA and Adjusted EBITDA
(in thousands) (unaudited)

	Quarter Ended
	August 2,		July 27,
	2025		2024
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
Net income (GAAP)	$	50,308	$	14,230
Add: Interest expense		22,806		24,401
Less: Interest and other income, net		15,090		14,013
Add: Provision for income taxes		15,511		2,125
Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements		26,866		22,981
Add: Amortization of intangible assets		8,788		9,949
EBITDA	$	109,189	$	59,673
Add: Share-based compensation expense		47,003		37,472
Add: Significant asset impairments and restructuring costs		1,770		1,361
Adjusted EBITDA	$	157,962	$	98,506

* * *

The adjusted (non-GAAP) measures above and their reconciliation to Ciena's GAAP results for the periods presented reflect adjustments relating to the following items:

Share-based compensation - a non-cash expense incurred in accordance with share-based compensation accounting guidance.

Significant asset impairments and restructuring costs - costs incurred as a result of restructuring activities taken to align resources with perceived market opportunities, the redesign of business processes and restructuring certain real estate facilities.

Amortization of intangible assets - a non-cash expense arising from the acquisition of intangible assets, principally developed technologies and customer-related intangibles, that Ciena is required to amortize over an expected useful life.

Non-GAAP tax provision - consists of current and deferred income tax expense commensurate with the level of adjusted income before income taxes and utilizes a current, blended U.S. and foreign statutory annual tax rate of 22.0% for both the third quarter of fiscal 2025 and fiscal 2024. This rate may be subject to change in the future, including as a result of changes in tax policy or tax strategy.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250903272104/en/

Press Contact: Jamie Moody

Ciena Corporation

+1 (214) 995-8035

pr@ciena.com

Investor Contact: Gregg Lampf

Ciena Corporation

+1 (410) 694-5700

ir@ciena.com

Ciena Reports Fiscal Third Quarter 2025 Financial Results