• Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Quantisnow Logo
  • Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Dashboard
    Quantisnow Logo

    © 2025 quantisnow.com
    Democratizing insights since 2022

    Services
    Live news feedsRSS FeedsAlerts
    Company
    AboutQuantisnow PlusContactJobs
    Legal
    Terms of usePrivacy policyCookie policy

    ADTRAN Holdings, Inc. reports preliminary fourth quarter and full-year 2024 financial results

    2/26/25 11:00:00 PM ET
    $ADTN
    Telecommunications Equipment
    Utilities
    Get the next $ADTN alert in real time by email

    ADTRAN Holdings, Inc. (NASDAQ:ADTN) ("ADTRAN Holdings" or the "Company") today announced its preliminary unaudited financial results for the fourth quarter and full-year ended December 31, 2024.

    • Revenue: $242.9 million, up 7% sequentially and above the mid-point of outlook.
    • Gross margin: GAAP gross margin: 37.6%; non-GAAP gross margin: 42.0%.
    • Operating margin: improved sequentially on a GAAP and non-GAAP basis, above the mid-point of outlook.
    • GAAP diluted loss per share of $0.58; non-GAAP diluted earnings per share $0.00.

    Adtran Holdings' Chairman and Chief Executive Officer Tom Stanton stated, "Market conditions continued to improve during the fourth quarter driven by higher service provider spending, lower customer inventories, a continuing shift away from high-risk vendors, and the secular trend of increased fiber access and optical transport. The progress we made during the fourth quarter, including higher sequential and year-over-year revenue and operating margin, was supported by growth across geographies, most product lines, and the continued expansion of our customer base."

    Mr. Stanton added, "We finished 2024 with positive momentum in our business. Based on the current visibility and booking trends, we expect higher revenue in the first quarter of 2025, overcoming typical seasonality."

    Business outlook1

    For the first quarter of 2025, the Company expects revenue to be within a range of $237.5 million to $252.5 million. Non-GAAP operating margin is expected to be within a range of 0% to 4%.

    1 Non-GAAP operating margin (which is calculated as non-GAAP operating income (loss) divided by revenue) is a non-GAAP financial measure. The Company has provided first quarter 2025 guidance with regard to non-GAAP operating margin. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below. The Company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify without unreasonable effort all of the adjustments that may occur during the period due to the difficulty of predicting the timing and amounts of various items within a reasonable range. In particular, non-GAAP operating margin excludes certain items, including continued restructuring expenses, that will continue to evolve as our business efficiency program is implemented that the Company is unable to quantitatively predict. Depending on the materiality of these items, they could have a significant impact on the Company's GAAP financial results.

    Conference call

    The Company will hold a conference call to discuss its preliminary fourth quarter 2024 results on Thursday, February 27, 2025, at 9:30 a.m. Central Time, or 4:30 p.m. Central European Time. The Company will webcast this conference call at the events and presentations section of ADTRAN Holdings, Inc. Investor Relations website at https://events.q4inc.com/attendee/811754399 approximately 10 minutes prior to the start of the call, or you may dial 1-888-330-2391 (Toll-Free US) or 1-240-789-2702, and use Conference ID 8936454.

    An online replay of the Company's conference call, as well as the transcript of the call, will be available on the Investor Relations site https://investors.adtran.com/ shortly following the call and will remain available for at least

    12 months. For more information, visit investors.adtran.com or email [email protected].

    Upcoming conference schedule

    March 11, 2025: Stifel 2025 NYC Technology One-on-One Conference

    March 17, 2025: 37th Annual ROTH Conference

    April 1, 2025: Optical Fiber Communication (OFC) Conference and Exhibition

    About Adtran

    ADTRAN Holdings, Inc. (NASDAQ:ADTN) is the parent company of Adtran, Inc., a leading global provider of open, disaggregated networking and communications solutions that enable voice, data, video and internet communications across any network infrastructure. From the cloud edge to the subscriber edge, Adtran empowers communications service providers around the world to manage and scale services that connect people, places and things. Adtran solutions are used by service providers, private enterprises, government organizations and millions of individual users worldwide. ADTRAN Holdings, Inc. is also the majority shareholder of Adtran Networks SE, formerly ADVA Optical Networking SE. Find more at Adtran, LinkedIn and Twitter.

    Cautionary note regarding forward-looking statements

    Statements contained in this press release and the accompanying earnings call which are not historical facts, such as those relating to expectations regarding future revenue and future non-GAAP operating margin; future service provider spending; future profitability, and growth, including customer acquisition and booking trends, as well as future end market growth; future market trends and customer inventory levels; future operational leverage and cash generation; and ADTRAN Holdings' strategy and outlook, outlook and financial guidance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can also generally be identified by the use of words such as "believe," "expect," "intend," "estimate," "anticipate," "will," "may," "could" and similar expressions. In addition, ADTRAN Holdings, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such projections and other forward-looking information speak only as of the date hereof, and ADTRAN Holdings undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise, except to the extent as may be required by law. All such forward-looking statements are necessarily estimates and reflect management's best judgment based upon current information. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which have caused and may in the future cause actual events or results to differ materially from those estimated by ADTRAN Holdings include, but are not limited to: (i) risks and uncertainties relating to ADTRAN Holdings' ability to continue to reduce expenditures and the impact of such reductions on its financial results and financial condition; (ii) risks and uncertainties relating to our ability to comply with the covenants set forth in our credit agreement, to satisfy our payment obligations to Adtran Networks' minority shareholders under the Domination and Profit and Loss Transfer Agreement between us and Adtran Networks (the "DPLTA"), and to make payments to Adtran Networks in order to absorb its annual net loss pursuant to the DPLTA; (iii) the risk of fluctuations in revenue due to lengthy sales and approval processes required by major and other service providers for new products, as well as shifting customer spending patterns; (iv) risks and uncertainties relating to our level of indebtedness; (v) risks and uncertainties relating to ongoing material weaknesses in our internal control over financial reporting; (vi) risks posed by potential breaches of information systems and cyber-attacks; (vii) the risk that ADTRAN Holdings may not be able to effectively compete, including through product improvements and development; and (viii) other risks set forth in ADTRAN Holdings' public filings made with the Securities and Exchange Commission ("SEC"), including its most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q or other securities filings, and the risks to be disclosed in its upcoming Annual Report on Form 10-K for the year ended December 31, 2024, to be filed with the SEC.

    Additionally, the financial measures presented herein are preliminary estimates, remain subject to our internal controls and procedures, and are subject to risks and uncertainties, including, among others, changes in connection with quarter-end adjustments. Any variation between the Company's actual results and the preliminary financial information set forth herein may be material.

    Explanation of use of non-GAAP financial measures

    Set forth in the tables below are reconciliations of gross profit, gross margin, operating expenses, operating loss, other (expense) income, net loss inclusive of the non-controlling interest, net income attributable to the non-controlling interest, net loss attributable to the Company, and loss per share - basic and diluted, attributable to the Company, and net cash provided by (used in) operating activities, in each case as reported based on generally accepted accounting principles in the United States ("GAAP"), to non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP other expense, non-GAAP net income (loss) inclusive of the non-controlling interest, non-GAAP net income (loss) attributable to the Company, non-GAAP net earnings (loss per share) - basic and diluted, attributable to the Company, and free cash flow, respectively. Such non-GAAP measures exclude acquisition-related expenses, amortization and adjustments (consisting of intangible amortization of backlog, developed technology, customer relationships, and trade names acquired in connection with business combinations and amortization of inventory fair value adjustments as well as legal and advisory fees related to a potential significant transaction), stock-based compensation expense, restructuring expenses, integration expenses, deferred compensation adjustments, goodwill impairments, amortization of pension actuarial losses, the tax effect of these adjustments to net loss and purchases of property, plant and equipment. These measures are used by management in our ongoing planning and annual budgeting processes. Additionally, we believe the presentation of these non-GAAP measures, when combined with the presentation of the most directly comparable GAAP financial measure, is beneficial to the overall understanding of ongoing operating performance of the Company. These non-GAAP financial measures are not prepared in accordance with, or an alternative for, GAAP and therefore should not be considered in isolation or as a substitution for analysis of our results as reported under GAAP. Additionally, our calculation of non-GAAP measures may not be comparable to similar measures calculated by other companies.

    Published by

    ADTRAN Holdings, Inc.

    www.adtran.com

    Condensed Consolidated Balance Sheets

    (Preliminary, Unaudited)

    (In thousands)

     

    ASSETS

     

    December 31,

    2024

     

    December 31,

    2023

     

    Current Assets

     

     

     

     

     

    Cash and cash equivalents

     

    $

    77,567

     

     

    $

    87,167

     

     

    Accounts receivable, net

     

     

    178,030

     

     

     

    216,445

     

     

    Other receivables

     

     

    9,775

     

     

     

    17,450

     

     

    Income tax receivable

     

     

    4,355

     

     

     

    7,933

     

     

    Inventory, net

     

     

    269,337

     

     

     

    362,295

     

     

    Assets held for sale

     

     

    11,901

     

     

     

    —

     

     

    Prepaid expenses and other current assets

     

     

    58,534

     

     

     

    45,566

     

     

    Total Current Assets

     

     

    609,499

     

     

     

    736,856

     

     

    Property, plant and equipment, net

     

     

    102,942

     

     

     

    123,020

     

     

    Deferred tax assets, net

     

     

    17,826

     

     

     

    25,787

     

     

    Goodwill

     

     

    52,918

     

     

     

    353,415

     

     

    Intangibles, net

     

     

    284,893

     

     

     

    327,985

     

     

    Other non-current assets

     

     

    78,128

     

     

     

    87,706

     

     

    Long-term investments

     

     

    32,060

     

     

     

    27,743

     

     

    Total Assets

     

    $

    1,178,266

     

     

    $

    1,682,512

     

     

    LIABILITIES AND EQUITY

     

     

     

     

     

    Current Liabilities

     

     

     

     

     

    Accounts payable

     

    $

    170,451

     

     

    $

    162,922

     

     

    Unearned revenue

     

     

    52,701

     

     

     

    46,731

     

     

    Accrued expenses and other liabilities

     

     

    35,704

     

     

     

    36,204

     

     

    Accrued wages and benefits

     

     

    32,853

     

     

     

    27,030

     

     

    Income tax payable, net

     

     

    830

     

     

     

    5,221

     

     

    Total Current Liabilities

     

     

    292,539

     

     

     

    278,108

     

     

    Non-current revolving credit agreement outstanding

     

     

    189,576

     

     

     

    195,000

     

     

    Deferred tax liabilities

     

     

    30,690

     

     

     

    35,655

     

     

    Non-current unearned revenue

     

     

    22,065

     

     

     

    25,109

     

     

    Non-current pension liability

     

     

    8,983

     

     

     

    12,543

     

     

    Deferred compensation liability

     

     

    33,203

     

     

     

    29,039

     

     

    Non-current lease obligations

     

     

    25,925

     

     

     

    31,420

     

     

    Other non-current liabilities

     

     

    17,928

     

     

     

    28,657

     

     

    Total Liabilities

     

     

    620,909

     

     

     

    635,531

     

     

    Redeemable Non-Controlling Interest

     

     

    422,943

     

     

     

    442,152

     

     

    Equity

     

     

     

     

     

    Common stock

     

     

    795

     

     

     

    790

     

     

    Additional paid-in capital

     

     

    808,913

     

     

     

    795,304

     

     

    Accumulated other comprehensive income

     

     

    10,897

     

     

     

    47,465

     

     

    Retained deficit

     

     

    (680,993

    )

     

     

    (232,905

    )

     

    Treasury stock

     

     

    (5,198

    )

     

     

    (5,825

    )

     

    Total Equity

     

     

    134,414

     

     

     

    604,829

     

     

    Total Liabilities and Equity

     

    $

    1,178,266

     

     

    $

    1,682,512

     

     

    Condensed Consolidated Statements of Loss

    (Preliminary, Unaudited)

    (In thousands, except per share amounts)

     

     

     

    Three Months Ended

     

    Twelve Months Ended

     

     

    December 31,

     

    December 31,

     

     

    2024

     

    2023

     

    2024

     

    2023

    Revenue

     

     

     

     

     

     

     

     

    Network Solutions

     

    $

    197,009

     

     

    $

    180,405

     

     

    $

    738,964

     

     

    $

    974,389

     

    Services & Support

     

     

    45,843

     

     

     

    45,074

     

     

     

    183,756

     

     

     

    174,711

     

    Total Revenue

     

     

    242,852

     

     

     

    225,479

     

     

     

    922,720

     

     

     

    1,149,100

     

    Cost of Revenue

     

     

     

     

     

     

     

     

    Network Solutions

     

     

    134,184

     

     

     

    126,248

     

     

     

    511,070

     

     

     

    722,582

     

    Network Solutions - charges and inventory write-down

     

     

    —

     

     

     

    3,270

     

     

     

    8,597

     

     

     

    24,313

     

    Services & Support

     

     

    17,435

     

     

     

    17,496

     

     

     

    72,739

     

     

     

    69,142

     

    Total Cost of Revenue

     

     

    151,619

     

     

     

    147,014

     

     

     

    592,406

     

     

     

    816,037

     

    Gross Profit

     

     

    91,233

     

     

     

    78,465

     

     

     

    330,314

     

     

     

    333,063

     

    Selling, general and administrative expenses

     

     

    57,156

     

     

     

    61,262

     

     

     

    233,369

     

     

     

    258,149

     

    Research and development expenses

     

     

    49,209

     

     

     

    54,818

     

     

     

    221,463

     

     

     

    258,311

     

    Goodwill impairment

     

     

    —

     

     

     

    —

     

     

     

    292,583

     

     

     

    37,874

     

    Operating Loss

     

     

    (15,132

    )

     

     

    (37,615

    )

     

     

    (417,101

    )

     

     

    (221,271

    )

    Interest and dividend income

     

     

    1,631

     

     

     

    1,157

     

     

     

    3,058

     

     

     

    2,340

     

    Interest expense

     

     

    (4,870

    )

     

     

    (4,441

    )

     

     

    (22,053

    )

     

     

    (16,299

    )

    Net investment (loss) gain

     

     

    (920

    )

     

     

    1,683

     

     

     

    3,587

     

     

     

    2,754

     

    Other income (expense), net

     

     

    687

     

     

     

    (3,448

    )

     

     

    246

     

     

     

    1,266

     

    Loss Before Income Taxes

     

     

    (18,604

    )

     

     

    (42,664

    )

     

     

    (432,263

    )

     

     

    (231,210

    )

    Income tax expense

     

     

    (24,906

    )

     

     

    (64,632

    )

     

     

    (8,785

    )

     

     

    (28,133

    )

    Net Loss

     

    $

    (43,510

    )

     

    $

    (107,296

    )

     

    $

    (441,048

    )

     

    $

    (259,343

    )

    Net Income attributable to non-controlling interest

     

     

    2,406

     

     

     

    2,566

     

     

     

    9,824

     

     

     

    6,946

     

    Net Loss attributable to ADTRAN Holdings, Inc.

     

    $

    (45,916

    )

     

    $

    (109,862

    )

     

    $

    (450,872

    )

     

    $

    (266,289

    )

     

     

     

     

     

     

     

     

     

    Weighted average shares outstanding – basic

     

     

    79,091

     

     

     

    78,530

     

     

     

    78,928

     

     

     

    78,416

     

    Weighted average shares outstanding – diluted

     

     

    79,091

     

     

     

    78,530

     

     

     

    78,928

     

     

     

    78,416

     

     

     

     

     

     

     

     

     

     

    Loss per common share attributable to ADTRAN Holdings, Inc. – basic

     

    $

    (0.58

    )

    (1)

    $

    (1.40

    )

     

    $

    (5.67

    )

    (1)

    $

    (3.39

    )

    Loss per common share attributable to ADTRAN Holdings, Inc. – diluted

     

    $

    (0.58

    )

    (1)

    $

    (1.40

    )

     

    $

    (5.67

    )

    (1)

    $

    (3.39

    )

    (1) Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $5 thousand effect of redemption for the three months ended December 31, 2024 and $3.0 million effect of redemption of RNCI for the year ended December 31, 2024.

    Condensed Consolidated Statements of Cash Flows

    (Preliminary, Unaudited)

    (In thousands)

     

     

     

    Twelve Months Ended

    December 31,

     

     

    2024

     

    2023

    Cash flows from operating activities:

     

     

     

     

    Net Loss

     

    $

    (441,048

    )

     

    $

    (259,343

    )

    Adjustments to reconcile net loss to net cash used in operating activities:

     

     

     

     

    Depreciation and amortization

     

     

    90,985

     

     

     

    112,949

     

    Goodwill impairment

     

     

    292,583

     

     

     

    37,874

     

    Amortization of debt issuance cost

     

     

    3,950

     

     

     

    862

     

    Accretion on available-for-sale investments, net

     

     

    —

     

     

     

    (22

    )

    Gain on investments

     

     

    (5,030

    )

     

     

    (2,900

    )

    Net loss on disposal of property, plant and equipment

     

     

    1,371

     

     

     

    458

     

    Stock-based compensation expense

     

     

    15,342

     

     

     

    16,016

     

    Deferred income taxes

     

     

    2,247

     

     

     

    15,558

     

    Inventory write down

     

     

    4,135

     

     

     

    24,313

     

    Inventory reserves

     

     

    3,980

     

     

     

    25,546

     

    Other, net

     

     

    —

     

     

     

    (2,942

    )

    Change in operating assets and liabilities:

     

     

     

     

    Accounts receivable, net

     

     

    46,108

     

     

     

    65,612

     

    Other receivables

     

     

    10,713

     

     

     

    10,315

     

    Income taxes receivable

     

     

    648

     

     

     

    (2,637

    )

    Inventory

     

     

    75,171

     

     

     

    20,537

     

    Prepaid expenses other current assets and other assets

     

     

    (10,718

    )

     

     

    (29,883

    )

    Accounts payable

     

     

    11,784

     

     

     

    (91,907

    )

    Accrued expenses and other liabilities

     

     

    5,519

     

     

     

    17,929

     

    Income taxes payable, net

     

     

    (4,670

    )

     

     

    (3,939

    )

    Net cash provided by (used in) operating activities

     

     

    103,070

     

     

     

    (45,604

    )

    Cash flows from investing activities:

     

     

     

     

    Purchases of property, plant and equipment

     

     

    (32,454

    )

     

     

    (43,121

    )

    Purchases of intangibles - developed technology

     

     

    (30,671

    )

     

     

    —

     

    Proceeds from sales and maturities of available-for-sale investments

     

     

    1,240

     

     

     

    10,567

     

    Purchases of available-for-sale investments

     

     

    (268

    )

     

     

    (868

    )

    (Payments) Proceeds from beneficial interests in securitized accounts receivable

     

     

    (55

    )

     

     

    1,218

     

    Net cash used in investing activities

     

     

    (62,208

    )

     

     

    (32,204

    )

    Cash flows from financing activities:

     

     

     

     

    Tax withholdings related to stock-based compensation settlements

     

     

    (1,143

    )

     

     

    (6,458

    )

    Proceeds from stock option exercises

     

     

    824

     

     

     

    540

     

    Dividend payments

     

     

    —

     

     

     

    (21,237

    )

    Proceeds from receivables purchase agreement

     

     

    68,556

     

     

     

    14,099

     

    Repayments on receivables purchase agreement

     

     

    (83,772

    )

     

     

    —

     

    Proceeds from draw on revolving credit agreements

     

     

    26,000

     

     

     

    163,733

     

    Repayment of revolving credit agreements

     

     

    (31,000

    )

     

     

    (64,987

    )

    Redemption of redeemable non-controlling interest

     

     

    (17,398

    )

     

     

    (1,224

    )

    Payment of annual recurring compensation to non-controlling interest

     

     

    (10,084

    )

     

     

    —

     

    Payment of debt issuance cost

     

     

    (1,994

    )

     

     

    (708

    )

    Repayment of notes payable

     

     

    —

     

     

     

    (24,891

    )

    Net cash (used in) provided by financing activities

     

     

    (50,011

    )

     

     

    58,867

     

    Net decrease in cash and cash equivalents

     

     

    (9,149

    )

     

     

    (18,941

    )

    Effect of exchange rate changes

     

     

    (451

    )

     

     

    (2,536

    )

    Cash and cash equivalents, beginning of year

     

     

    87,167

     

     

     

    108,644

     

    Cash and cash equivalents, end of year

     

    $

    77,567

     

     

    $

    87,167

     

     

     

     

     

     

    Supplemental disclosure of cash financing activities

     

     

     

     

    Cash paid for interest

     

    $

    20,884

     

     

    $

    12,596

     

    Cash paid for income taxes

     

    $

    10,384

     

     

    $

    18,552

     

    Cash used in operating activities related to operating leases

     

    $

    9,274

     

     

    $

    9,682

     

    Supplemental disclosure of non-cash investing activities

     

     

     

     

    Right-of-use assets obtained in exchange for lease obligations

     

    $

    5,317

     

     

    $

    17,865

     

    Purchases of property, plant and equipment included in accounts payable

     

    $

    2,635

     

     

    $

    1,298

     

    Redemption of redeemable non-controlling interest

     

    $

    2,986

     

     

    $

    371

     

    Supplemental Information

    Reconciliation of Preliminary Gross Profit and Preliminary Gross Margin to

    Preliminary Non-GAAP Gross Profit and Preliminary Non-GAAP Gross Margin

    (Unaudited)

    (In thousands)

     

     

     

    Three Months Ended

     

     

    Twelve Months Ended

     

     

    December 31,

    2024

     

    September 30,

    2024

     

    December 31,

    2023

     

     

    December 31,

    2024

     

    December 31,

    2023

    Total Revenue

     

    $

    242,852

     

     

    $

    227,704

     

     

    $

    225,479

     

     

     

    $

    922,720

     

     

    $

    1,149,100

     

     

     

     

     

     

     

     

     

     

     

     

     

    Cost of Revenue

     

    $

    151,619

     

     

    $

    142,453

     

     

    $

    147,014

     

     

     

    $

    592,406

     

     

    $

    816,037

     

    Acquisition-related expenses, amortization and adjustments(1)

     

     

    (9,980

    )

     

     

    (10,276

    )

     

     

    (10,048

    )

     

     

     

    (40,497

    )

     

     

    (89,602

    )

    Stock-based compensation expense

     

     

    (317

    )

     

     

    (270

    )

     

     

    (440

    )

     

     

     

    (1,142

    )

     

     

    (1,294

    )

    Restructuring expenses(2)

     

     

    (538

    )

     

     

    (7

    )

     

     

    (5,517

    )

     

     

     

    (14,580

    )

     

     

    (27,223

    )

    Integration expenses(3)

     

     

    123

     

     

     

    (34

    )

     

     

    39

     

     

     

     

    19

     

     

     

    (115

    )

    Non-GAAP Cost of Revenue

     

    $

    140,907

     

     

    $

    131,866

     

     

    $

    131,048

     

     

     

    $

    536,206

     

     

    $

    697,803

     

     

     

     

     

     

     

     

     

     

     

     

     

    Gross Profit

     

    $

    91,233

     

     

    $

    85,251

     

     

    $

    78,465

     

     

     

    $

    330,314

     

     

    $

    333,063

     

    Non-GAAP Gross Profit

     

    $

    101,945

     

     

    $

    95,838

     

     

    $

    94,431

     

     

     

    $

    386,514

     

     

    $

    451,297

     

     

     

     

     

     

     

     

     

     

     

     

     

    Gross Margin

     

     

    37.6

    %

     

     

    37.4

    %

     

     

    34.8

    %

     

     

     

    35.8

    %

     

     

    29.0

    %

    Non-GAAP Gross Margin

     

     

    42.0

    %

     

     

    42.1

    %

     

     

    41.9

    %

     

     

     

    41.9

    %

     

     

    39.3

    %

    (1) Includes intangible amortization of backlog, inventory fair value adjustments, developed technology, customer relationships, and trade names acquired in connection with business combinations. We incur charges relating to the amortization of intangible assets and exclude these charges for purposes of calculating our non-GAAP measures. Such charges are significantly impacted by the timing and magnitude of our acquisitions. We exclude these charges for the purpose of calculating our non-GAAP measures, primarily because they are noncash expenses and our internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding intangible asset amortization. Although this does not directly affect our cash position, the loss in value of intangible assets over time can have a material impact on the equivalent GAAP earnings measure. 

    (2) Includes expenses for restructuring program designed to optimize the assets and business processes following the business combination with Adtran Networks SE. These expenses include inventory write down and other charges of $8.6 million and other expenses of $0.6 million for the twelve months ended December 31, 2024, incurred as a result of a strategy shift which included discontinuance of certain product lines in connection with the Business Efficiency Program. The restructuring program commenced upon the closing of the business combination with Adtran Networks SE and was substantially completed in late 2024. Additionally, as part of the Business Efficiency Program, management determined to close a facility in Greifswald, Germany which occurred in December 2024. These expenses include restructuring wage charges of $5.4 million for the twelve months ended December 31, 2024.

    (3) Includes expenses related to the Company's one-time integration bonus program in connection with synergy targets as a result of the business combination with Adtran Networks SE.

    Supplemental Information

    Reconciliation of Preliminary Operating Expenses to Preliminary Non-GAAP Operating Expenses

    (Unaudited)

    (In thousands)

     

     

    Three Months Ended

     

    Twelve Months Ended

     

     

    December 31,

    2024

     

    September 30,

    2024

     

    December 31,

    2023

     

    December 31,

    2024

     

    December 31,

    2023

     

    Operating Expenses

    $

    106,365

     

     

    $

    109,235

     

     

    $

    116,080

     

     

    $

    747,415

     

     

    $

    554,334

     

     

    Acquisition-related expenses, amortization and adjustments (1)

     

    (5,294

    )

    (2)

     

    (5,054

    )

    (7)

     

    (4,150

    )

    (11)

     

    (22,462

    )

    (15)

     

    (17,666

    )

    (20)

    Stock-based compensation expense

     

    (3,351

    )

    (3)

     

    (3,126

    )

    (8)

     

    (3,181

    )

    (12)

     

    (13,245

    )

    (16)

     

    (13,864

    )

    (21)

    Restructuring expenses

     

    (3,567

    )

    (4)

     

    (5,930

    )

    (9)

     

    (7,859

    )

    (13)

     

    (30,101

    )

    (17)

     

    (19,331

    )

    (22)

    Integration expenses

     

    (587

    )

    (5)

     

    (333

    )

    (10)

     

    (1,928

    )

    (14)

     

    (1,930

    )

    (18)

     

    (4,825

    )

    (23)

    Deferred compensation adjustments(6)

     

    451

     

     

     

    (1,471

    )

     

     

    (1,324

    )

     

     

    (3,808

    )

     

     

    390

     

     

    Goodwill impairment

     

    —

     

     

     

    —

     

     

     

    —

     

     

     

    (292,583

    )

    (19)

     

    (37,874

    )

    (24)

    Non-GAAP Operating Expenses

    $

    94,017

     

     

    $

    93,321

     

     

    $

    97,638

     

     

    $

    383,286

     

     

    $

    461,164

     

     

    (1) We incur charges relating to the amortization of intangible assets and exclude these charges for purposes of calculating our non-GAAP measures. Such charges are significantly impacted by the timing and magnitude of our acquisitions. We exclude these charges for the purpose of calculating our non-GAAP measures, primarily because they are noncash expenses and our internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding intangible asset amortization. Although this does not directly affect our cash position, the loss in value of intangible assets over time can have a material impact on the equivalent GAAP earnings measure. 

    (2) Includes $4.3M of intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations and $1.0 million of legal and advisory fees related to a potential strategic transaction which are included in selling, general and administrative expenses on the condensed consolidated statements of loss.

    (3) $2.4 million is included in selling, general and administrative expenses and $1.0 million is included in research and development expenses on the condensed consolidated statements of loss.

    (4) $1.2 million is included in selling, general and administrative expenses and $2.4 million is included in research and development expenses on the condensed consolidated statements of loss. Includes expenses for restructuring program designed to optimize the assets and business processes following the business combination with Adtran Networks SE. The restructuring program commenced upon the closing of the business combination with Adtran Networks SE and was substantially completed in late 2024. Additionally, as part of the Business Efficiency Program, management determined to close a facility in Greifswald, Germany which occurred in December 2024.

    (5) $0.6 million is included in selling, general and administrative expenses and less than $0.1 million is included in research and development expenses on the condensed consolidated statements of loss, and is primarily related to the Company's one-time integration bonus program in connection with synergy targets as a result of the business combination with Adtran Networks SE.

    (6) Includes non-cash change in fair value of equity investments held in the ADTRAN Holdings, Inc. Deferred Compensation Program for Employees, all of which is included in selling, general and administrative expenses on the condensed consolidated statement of loss.

    (7) Includes $4.0M of intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations and $0.6 million of legal and advisory fees related to a potential strategic transaction which are both included in selling, general and administrative expenses and $0.5 million is included in research and development expenses on the condensed consolidated statements of loss.

    (8) $2.2 million is included in selling, general and administrative expenses and $0.9 million is included in research and development expenses on the condensed consolidated statements of loss.

    (9) $2.7 million is included in selling, general and administrative expenses and $3.2 million is included in research and development expenses on the condensed consolidated statements of loss. Includes expenses of $3.2 million of wage related and other charges due to the Greifswald facility closure of which $0.8 million is included in selling, general and administrative and $2.4 million is included in research and development expenses on the condensed consolidated statements of loss. Includes expenses for restructuring program designed to optimize the assets and business processes following the business combination with Adtran Networks SE. The restructuring program commenced upon the closing of the business combination with Adtran Networks SE and was substantially completed in late 2024. Additionally, as part of the Business Efficiency Program, management determined to close a facility in Greifswald, Germany which occurred in December 2024.

    (10) $0.3 million is included in selling, general and administrative expenses on the condensed consolidated statements of loss, and is primarily related to the Company's one-time integration bonus program in connection with synergy targets as a result of the business combination with Adtran Networks SE.

    (11) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, of which $3.7 million is included in selling, general and administrative expenses and $0.5 million is included in research and development expenses on the condensed consolidated statements of loss.

    (12) $2.3 million is included in selling, general and administrative expenses and $0.9 million is included in research and development expenses on the condensed consolidated statements of loss.

    (13) $4.6 million is included in selling, general and administrative expenses and $3.2 million is included in research and development expenses on the condensed consolidated statements of loss. Includes expenses for restructuring program designed to optimize the assets and business processes following the business combination with Adtran Networks SE. The restructuring program commenced upon the closing of the business combination with Adtran Networks SE and was substantially completed in late 2024. Additionally, as part of the Business Efficiency Program, management determined to close a facility in Greifswald, Germany which occurred in December 2024.

    (14) $1.9 million is included in selling, general and administrative expenses and $0.02 million is included in research and development expenses on the condensed consolidated statements of loss. Includes legal and advisory fees totaling $1.2 million related to a contemplated capital raise transaction that are recorded in selling, general and administrative expenses. Includes expenses totaling $0.4 million related to the Company's one-time integration bonus program in connection with synergy targets as a result of the business combination with Adtran Networks SE of which $0.4 million are included in selling, general and administrative expenses and $0.02 million are included in research and development expenses. The integration bonus expense of $0.4 million includes $0.2 million of stock compensation expense. Additionally, includes fees relating to the expansion of internal controls at Adtran Networks and the implementation of the DPLTA.

    (15) Includes $17.6M of intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations and $4.9 million of legal and advisory fees related to a potential strategic transaction which are included in selling, general and administrative expenses on the condensed consolidated statements of loss.

    (16) $9.4 million is included in selling, general and administrative expenses and $3.8 million is included in research and development expenses on the condensed consolidated statements of loss.

    (17) $9.1 million is included in selling, general and administrative expenses and $21.0 million is included in research and development expenses on the condensed consolidated statements of loss. Includes expenses for restructuring program designed to optimize the assets and business processes following the business combination with Adtran Networks SE. The restructuring program commenced upon the closing of the business combination with Adtran Networks SE and was substantially completed in late 2024. Additionally, as part of the Business Efficiency Program, management determined to close a facility in Greifswald, Germany which occurred in December 2024.

    (18) $1.8 million is included in selling, general and administrative expenses and $0.1 million is included in research and development expenses on the condensed consolidated statements of loss, and is primarily related to the Company's one-time integration bonus program in connection with synergy targets as a result of the business combination with Adtran Networks SE.

    (19) Non-cash impairment of goodwill in our Network Solutions reporting unit, necessitated by factors such as a decrease in the Company's market capitalization, cautious service provider spending due to economic uncertainty and continued elevated customer inventory adjustments.

    (20) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, of which $15.8 million is included in selling, general and administrative expenses and $1.9 million is included in research and development expenses on the condensed consolidated statements of loss.

    (21) $9.8 million is included in selling, general and administrative expenses and $4.0 million is included in research and development expenses on the condensed consolidated statements of loss.

    (22) $11.6 million is included in selling, general and administrative expenses and $7.7 million is included in research and development expenses on the condensed consolidated statements of loss. Includes expenses for restructuring program designed to optimize the assets and business processes following the business combination with Adtran Networks SE. The restructuring program commenced upon the closing of the business combination with Adtran Networks SE and was substantially completed in late 2024. Additionally, as part of the Business Efficiency Program, management determined to close a facility in Greifswald, Germany which occurred in December 2024.

    (23) $4.8 million is included in selling, general and administrative expenses and $0.1 million is included in research and development expenses on the condensed consolidated statements of loss. Includes expenses related to the integration bonus program and fees relating to the expansion of internal controls at Adtran Networks and the implementation of the DPLTA. Additionally, includes legal and advisory fees totaling $1.2 million related to a contemplated capital raise transaction that are recorded in selling, general and administrative expenses.

    (24) Includes non-cash goodwill impairment charge related to our Services and Support reporting unit. The impairment primarily resulted from a decrease in projected revenue growth rates and EBITDA margins.

    Supplemental Information

    Reconciliation of Preliminary Operating Loss to Preliminary Non-GAAP Operating Income (Loss)

    (Unaudited)

    (In thousands)

     

     

    Three Months Ended

     

    Twelve Months Ended

     

     

    December 31, 2024

     

    September 30, 2024

     

    December 31, 2023

     

    December 31, 2024

     

    December 31, 2023

     

    Operating Loss

    $

    (15,132

    )

     

    $

    (23,984

    )

     

    $

    (37,615

    )

     

    $

    (417,101

    )

     

    $

    (221,271

    )

     

    Acquisition related expenses, amortizations and adjustments(1)

     

    15,274

     

     

     

    15,330

     

     

     

    14,198

     

     

     

    62,959

     

     

     

    107,267

     

     

    Stock-based compensation expense

     

    3,668

     

     

     

    3,396

     

     

     

    3,621

     

     

     

    14,387

     

     

     

    15,158

     

     

    Restructuring expenses(2)

     

    4,105

     

     

     

    5,936

     

     

     

    13,376

     

     

     

    44,681

     

     

     

    46,554

     

     

    Integration expenses(3)

     

    464

     

     

     

    367

     

     

     

    1,890

     

     

     

    1,911

     

     

     

    4,941

     

     

    Deferred compensation adjustments(4)

     

    (451

    )

     

     

    1,471

     

     

     

    1,324

     

     

     

    3,808

     

     

     

    (390

    )

     

    Goodwill impairment

     

    —

     

     

     

    —

     

     

     

    —

     

     

     

    292,583

     

    (5)

     

    37,874

     

    (6)

    Non-GAAP Operating Income (Loss)

    $

    7,928

     

     

    $

    2,516

     

     

    $

    (3,206

    )

     

    $

    3,228

     

     

    $

    (9,867

    )

     

    (1) Includes intangible amortization of backlog, inventory fair value adjustments, developed technology, customer relationships, and trade names acquired in connection with business combinations. We incur charges relating to the amortization of intangible assets and exclude these charges for purposes of calculating our non-GAAP measures. Such charges are significantly impacted by the timing and magnitude of our acquisitions. We exclude these charges for the purpose of calculating our non-GAAP measures, primarily because they are noncash expenses and our internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding intangible asset amortization. Although this does not directly affect our cash position, the loss in value of intangible assets over time can have a material impact on the equivalent GAAP earnings measure. 

    (2) Includes expenses for restructuring program designed to optimize the assets and business processes following the business combination with Adtran Networks SE. The restructuring program commenced upon the closing of the business combination with Adtran Networks SE and was substantially completed in late 2024. Additionally, as part of the Business Efficiency Program, management determined to close a facility in Greifswald, Germany which occurred in December 2024.

    (3) Includes expenses related to the Company's one-time integration bonus program in connection with synergy targets as a results of the business combination with Adtran Networks SE. Includes fees incurred for the expansion of internal controls at Adtran Networks SE and the implementation of the DPTLA.

    (4) Includes non-cash change in fair value of equity investments held in the ADTRAN Holdings, Inc. Deferred Compensation Program for Employees, all of which is included in selling, general and administrative expenses on the condensed consolidated statement of loss.

    (5) Non-cash impairment of goodwill in our Network Solutions reporting unit, necessitated by factors such as a decrease in the Company's market capitalization, cautious service provider spending due to economic uncertainty and continued elevated customer inventory adjustments.

    (6) Non-cash goodwill impairment charge related to our Services and Support reporting unit. The impairment primarily resulted from a decrease in projected revenue growth rates and EBITDA margins.

    Supplemental Information

    Reconciliation of Preliminary Other Expense to Preliminary Non-GAAP Other Expense

    (Unaudited)

    (In thousands)

     

     

     

    Three Months Ended

     

     

    Twelve Months Ended

     

     

    December 31,

    2024

     

    September 30,

    2024

     

    December 31,

    2023

     

     

    December 31,

    2024

     

    December 31,

    2023

    Interest and dividend income

     

    $

    1,631

     

     

    $

    664

     

     

    $

    1,157

     

     

     

    $

    3,058

     

     

    $

    2,340

     

    Interest expense

     

     

    (4,870

    )

     

     

    (5,679

    )

     

     

    (4,441

    )

     

     

     

    (22,053

    )

     

     

    (16,299

    )

    Net investment (loss) gain

     

     

    (920

    )

     

     

    1,382

     

     

     

    1,683

     

     

     

     

    3,587

     

     

     

    2,754

     

    Other income (expense), net

     

     

    687

     

     

     

    (850

    )

     

     

    (3,448

    )

     

     

     

    246

     

     

     

    1,266

     

    Total Other Expense

     

    $

    (3,472

    )

     

    $

    (4,483

    )

     

    $

    (5,049

    )

     

     

    $

    (15,162

    )

     

    $

    (9,939

    )

    Deferred compensation adjustments (1)

     

     

    1,090

     

     

     

    (1,294

    )

     

     

    (1,590

    )

     

     

     

    (3,539

    )

     

     

    (2,977

    )

    Pension expense (2)

     

     

    7

     

     

     

    7

     

     

     

    6

     

     

     

     

    28

     

     

     

    26

     

    Non-GAAP Other Expense

     

    $

    (2,375

    )

     

    $

    (5,770

    )

     

    $

    (6,633

    )

     

     

    $

    (18,673

    )

     

    $

    (12,890

    )

    (1) Includes non-cash change in fair value of equity investments held in the ADTRAN Holdings, Inc. Deferred Compensation Program for Employees.

    (2) Includes amortization of actuarial losses related to the Company's pension plan for employees in certain foreign countries.

    Supplemental Information

     

    Reconciliation of Preliminary Net Loss inclusive of Non-Controlling Interest to

    Preliminary Non-GAAP Net Income (Loss) inclusive of Non-Controlling Interest

    (Unaudited)

    and

    Reconciliation of Preliminary Net Income attributable to Non-Controlling Interest to

    Preliminary Non-GAAP Net Income attributable to Non-Controlling Interest

    (Unaudited)

    and

    Reconciliation of Preliminary Net Loss attributable to ADTRAN Holdings, Inc. and

    Preliminary Loss per Common Share attributable to ADTRAN Holdings, Inc. – Basic and Diluted to

    Preliminary Non-GAAP Net Income (Loss) attributable to ADTRAN Holdings, Inc. and

    Preliminary Non-GAAP Earnings (Loss) per Common Share attributable to ADTRAN Holdings, Inc. – Basic and Diluted

    (Unaudited)

    (In thousands, except per share amounts)

     

     

     

    Three Months Ended

     

     

    Twelve Months Ended

     

     

     

    December 31,

    2024

     

    September 30,

    2024

     

    December 31,

    2023

     

     

    December 31,

    2024

     

    December 31,

    2023

     

    Net Loss attributable to ADTRAN Holdings, Inc. common stockholders

     

    $

    (45,911

    )

     

    $

    (28,263

    )

     

    $

    (109,592

    )

     

     

    $

    (447,886

    )

     

    $

    (266,289

    )

     

    Effect of redemption of RNCI(1)

     

     

    (5

    )

     

     

    (2,976

    )

     

     

    —

     

     

     

     

    (2,986

    )

     

     

    —

     

     

    Net Loss attributable to ADTRAN Holdings, Inc.

     

    $

    (45,916

    )

     

    $

    (31,239

    )

     

    $

    (109,592

    )

     

     

    $

    (450,872

    )

     

    $

    (266,289

    )

     

    Net Income attributable to non-controlling interest(2)

     

     

    2,407

     

     

     

    2,382

     

     

     

    2,566

     

     

     

     

    9,824

     

     

     

    6,946

     

     

    Net Loss inclusive of non-controlling interest

     

    $

    (43,509

    )

     

    $

    (28,857

    )

     

    $

    (107,026

    )

     

     

    $

    (441,048

    )

     

    $

    (259,343

    )

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Acquisition related expenses, amortization and adjustments (3)

     

     

    15,274

     

     

     

    15,330

     

     

     

    14,198

     

     

     

     

    62,959

     

     

     

    107,267

     

     

    Stock-based compensation expense

     

     

    3,668

     

     

     

    3,396

     

     

     

    3,621

     

     

     

     

    14,387

     

     

     

    15,158

     

     

    Deferred compensation adjustments(4)

     

     

    639

     

     

     

    177

     

     

     

    (267

    )

     

     

     

    269

     

     

     

    (3,368

    )

     

    Pension adjustments(5)

     

     

    7

     

     

     

    7

     

     

     

    6

     

     

     

     

    28

     

     

     

    26

     

     

    Restructuring expenses(6)

     

     

    4,105

     

     

     

    5,936

     

     

     

    13,376

     

     

     

     

    44,681

     

     

     

    46,554

     

     

    Integration expenses(7)

     

     

    464

     

     

     

    367

     

     

     

    1,890

     

     

     

     

    1,911

     

     

     

    4,941

     

     

    Goodwill impairment

     

     

    —

     

     

     

    —

     

     

     

    —

     

     

     

     

    292,583

     

     

     

    37,874

     

     

    Tax effect of adjustments to net loss(8)

     

     

    21,804

     

     

     

    (712

    )

     

     

    62,221

     

     

     

    2,782

     

     

     

    12,076

     

    Non-GAAP Net Income (Loss) inclusive of non-controlling interest

     

    $

    2,451

     

     

    $

    (4,356

    )

     

    $

    (11,981

    )

     

     

    $

    (21,448

    )

     

    $

    (38,815

    )

     

    Net Income attributable to non-controlling interest(2)

     

     

    2,407

     

     

     

    2,382

     

     

     

    2,566

     

     

     

     

    9,824

     

     

     

    8,475

     

     

    Non-GAAP Net Income (Loss) attributable to ADTRAN Holdings, Inc.

     

    $

    45

     

     

    $

    (6,738

    )

     

    $

    (14,547

    )

     

     

    $

    (31,272

    )

     

    $

    (47,290

    )

     

    Effect of redemption of RNCI (1)

     

     

    5

     

     

     

    2,976

     

     

     

    —

     

     

     

     

    2,986

     

     

     

    —

     

     

    Non-GAAP Net Income (Loss) attributable to ADTRAN Holdings, Inc. common stockholders

     

    $

    50

     

     

    $

    (3,762

    )

     

    $

    (14,547

    )

     

     

    $

    (28,286

    )

     

    $

    (47,290

    )

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    GAAP Net Income attributable to non-controlling interest (2)

     

    $

    2,407

     

     

    $

    2,382

     

     

    $

    2,566

     

     

     

    $

    9,824

     

     

    $

    6,946

     

     

    Acquisition related expenses, amortizations and adjustments(3)

     

     

    —

     

     

     

    —

     

     

     

    —

     

     

     

     

    —

     

     

     

    1,457

     

     

    Restructuring expenses(6)

     

     

    —

     

     

     

    —

     

     

     

    —

     

     

     

     

    —

     

     

     

    29

     

     

    Integration expenses(7)

     

     

    —

     

     

     

    —

     

     

     

    —

     

     

     

     

    —

     

     

     

    6

     

     

    Stock-based compensation expense

     

     

    —

     

     

     

    —

     

     

     

    —

     

     

     

     

    —

     

     

     

    37

     

     

    Pension adjustments(5)

     

     

    —

     

     

     

    —

     

     

     

    —

     

     

     

     

    —

     

     

     

    —

     

     

    Non-GAAP Net Income attributable to non-controlling interest (2)

     

    $

    2,407

     

     

    $

    2,382

     

     

    $

    2,566

     

     

     

    $

    9,824

     

     

    $

    8,475

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Weighted average shares outstanding – basic

     

     

    79,091

     

     

     

    78,952

     

     

     

    78,530

     

     

     

     

    78,928

     

     

     

    78,416

     

     

    Weighted average shares outstanding – diluted

     

     

    79,091

     

     

     

    78,952

     

     

     

    78,530

     

     

     

     

    78,928

     

     

     

    78,416

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Loss per common share attributable to ADTRAN Holdings, Inc. - basic

     

    $

    (0.58

    )

     

    $

    (0.36

    )

     

    $

    (1.40

    )

     

     

    $

    (5.67

    )

     

    $

    (3.39

    )

     

    Loss per common share attributable to ADTRAN Holdings, Inc. - diluted

     

    $

    (0.58

    )

     

    $

    (0.36

    )

     

    $

    (1.40

    )

     

     

    $

    (5.67

    )

     

    $

    (3.39

    )

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Non-GAAP Earnings (Loss) per common share attributable to ADTRAN Holdings, Inc. - basic

     

    $

    0.00

     

     

    $

    (0.05

    )

     

    $

    (0.19

    )

     

     

    $

    (0.36

    )

     

    $

    (0.60

    )

     

    Non-GAAP Earnings (Loss) per common share attributable to ADTRAN Holdings, Inc. - diluted

     

    $

    0.00

     

     

    $

    (0.05

    )

     

    $

    (0.19

    )

     

     

    $

    (0.36

    )

     

    $

    (0.60

    )

     

    (1) Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $5 thousand and $3.0 million effect of redemption for the three months ended December 31, 2024 and September 30, 2024 respectively and $3.0 million effect of redemption of RNCI for the year ended December 31, 2024.

    (2) Represents the non-controlling interest portion of the Company's ownership of Adtran Networks pre-DPLTA and the annual recurring compensation earned by redeemable non-controlling interests and accrued by the Company post-DPLTA.

    (3) We incur charges relating to the amortization of intangible assets and exclude these charges for purposes of calculating our non-GAAP measures. Such charges are significantly impacted by the timing and magnitude of our acquisitions. We exclude these charges for the purpose of calculating our non-GAAP measures, primarily because they are noncash expenses and our internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding intangible asset amortization. Although this does not directly affect our cash position, the loss in value of intangible assets over time can have a material impact on the equivalent GAAP earnings measure. 

    (4) Includes non-cash change in fair value of equity investments held in deferred compensation plans offered to certain employees.

    (5) Includes amortization of actuarial losses related to the Company's pension plan for employees in certain foreign countries.

    (6) Includes expenses for restructuring program designed to optimize the assets and business processes following the business combination with Adtran Networks SE. The restructuring program commenced upon the closing of the business combination with Adtran Networks SE and was substantially completed in late 2024. Additionally, as part of the Business Efficiency Program, management determined to close a facility in Greifswald, Germany which occurred in December 2024.

    (7) Includes expenses related to the Company's one-time integration bonus program in connection with synergy targets as a result of the business combination with Adtran Networks SE.

    (8) Represents the tax effect of non-GAAP adjustments. Beginning in the period ended September 30, 2024, the Company changed its method of calculating non-GAAP income taxes by applying blended statutory tax rates to non-GAAP losses before income taxes in order to include current and deferred income tax expenses that are commensurate with the non-GAAP measure of profitability. The blended statutory tax rate is calculated using 0%, resulting in no tax benefits net of impact of valuation allowance, for the loss jurisdiction's non-GAAP losses before income taxes and 30% for all remaining jurisdictions' non-GAAP income before income taxes. Prior periods have been adjusted to reflect the application of blended statutory tax rates, net of impact of valuation allowance, to non-GAAP losses before income taxes as opposed to the previous application of blended statutory and effective tax rates to separate non-GAAP adjustments. We previously reported the tax effect of the adjustment to non-GAAP net loss under the prior method of $8.7 million and $57.8 million for the three and twelve months ended December 31, 2023.

    Supplemental Information

    Reconciliation of Preliminary Net Cash Provided By (Used In) Operating Activities to Preliminary Free Cash Flow

    (Unaudited)

    (In thousands)

     

     

     

    Three Months Ended

     

     

    Twelve Months Ended

     

     

    December 31,

     

    September 30,

     

    December 31,

     

     

    December 31,

     

    December 31,

     

     

    2024

     

    2024

     

    2023

     

     

    2024

     

    2023

    Net Cash provided by (used in) operating activities

     

    $

    4,544

     

     

    $

    42,030

     

     

    $

    (16,290

    )

     

     

    $

    103,070

     

     

    $

    (45,604

    )

    Purchases of property, plant and equipment and developed technologies(1)

     

     

    (14,942

    )

     

     

    (18,814

    )

     

     

    (9,447

    )

     

     

     

    (63,125

    )

     

     

    (43,121

    )

    Free cash flow

     

    $

    (10,398

    )

     

    $

    23,216

     

     

    $

    (25,737

    )

     

     

    $

    39,945

     

     

    $

    (88,725

    )

    (1) Purchases related to capital expenditures and developed technologies.

    View source version on businesswire.com: https://www.businesswire.com/news/home/20250226015068/en/

    For media

    Gareth Spence

    +44 1904 699 358

    [email protected]

    For investors

    Peter Schuman, IRC

    +1 256 963 6305

    [email protected]

    Get the next $ADTN alert in real time by email

    Chat with this insight

    Save time and jump to the most important pieces.

    Recent Analyst Ratings for
    $ADTN

    DatePrice TargetRatingAnalyst
    1/8/2025$15.00Buy
    Craig Hallum
    11/8/2024$6.00 → $10.00Neutral → Buy
    Rosenblatt
    5/8/2024$7.50Market Perform → Outperform
    Northland Capital
    11/20/2023Buy → Hold
    Argus
    11/7/2023$11.00 → $7.00Buy → Neutral
    Rosenblatt
    4/12/2023$13.00Outperform → Market Perform
    Northland Capital
    9/26/2022$21.00 → $26.00Hold → Buy
    Loop Capital
    7/14/2022$28.00Buy
    Needham
    More analyst ratings

    $ADTN
    Large Ownership Changes

    This live feed shows all institutional transactions in real time.

    See more
    • Amendment: SEC Form SC 13G/A filed by ADTRAN Holdings Inc.

      SC 13G/A - ADTRAN Holdings, Inc. (0000926282) (Subject)

      11/14/24 11:03:24 AM ET
      $ADTN
      Telecommunications Equipment
      Utilities
    • Amendment: SEC Form SC 13G/A filed by ADTRAN Holdings Inc.

      SC 13G/A - ADTRAN Holdings, Inc. (0000926282) (Subject)

      11/12/24 1:21:45 PM ET
      $ADTN
      Telecommunications Equipment
      Utilities
    • SEC Form SC 13G filed by ADTRAN Holdings Inc.

      SC 13G - ADTRAN Holdings, Inc. (0000926282) (Subject)

      11/12/24 12:02:15 PM ET
      $ADTN
      Telecommunications Equipment
      Utilities

    $ADTN
    SEC Filings

    See more
    • ADTRAN Holdings Inc. filed SEC Form 8-K: Results of Operations and Financial Condition, Regulation FD Disclosure, Financial Statements and Exhibits

      8-K - ADTRAN Holdings, Inc. (0000926282) (Filer)

      5/8/25 6:30:41 AM ET
      $ADTN
      Telecommunications Equipment
      Utilities
    • ADTRAN Holdings Inc. filed SEC Form 8-K: Regulation FD Disclosure

      8-K - ADTRAN Holdings, Inc. (0000926282) (Filer)

      4/15/25 9:13:49 PM ET
      $ADTN
      Telecommunications Equipment
      Utilities
    • SEC Form DEFA14A filed by ADTRAN Holdings Inc.

      DEFA14A - ADTRAN Holdings, Inc. (0000926282) (Filer)

      3/31/25 4:13:07 PM ET
      $ADTN
      Telecommunications Equipment
      Utilities

    $ADTN
    Press Releases

    Fastest customizable press release news feed in the world

    See more
    • eCommunity™ Fiber drives smart city infrastructure with Adtran's open fiber access solution

      News summary: eCommunity™ Fiber needed a scalable, open broadband network to support municipal services and businesses in the City of Morrow Smart city initiative is powered by Adtran's fiber access technology for GPON connectivity with future XGS-PON expansion Network improves public services, enhances safety infrastructure and provides businesses and residents with choice in connectivity options Adtran today announced that eCommunity™ Fiber is leveraging its fiber access platform to power the City of Morrow's smart city initiative. This open-access deployment provides high-speed connectivity to municipal services, businesses and residents, enabling advanced public safety applicati

      5/8/25 8:24:00 AM ET
      $ADTN
      Telecommunications Equipment
      Utilities
    • ADTRAN Holdings, Inc. reports preliminary first quarter 2025 financial results

      ADTRAN Holdings, Inc. (NASDAQ:ADTN) ("ADTRAN Holdings" or the "Company") today announced its preliminary unaudited financial results for the first quarter ended March 31, 2025. Revenue: $247.7 million, higher by 10% year-over-year, and above the mid-point of outlook. Gross margin: GAAP gross margin: 38.5%; non-GAAP gross margin: 42.6%. Operating margin: at the high end of outlook. GAAP diluted loss per share of $0.13; non-GAAP diluted earnings per share $0.03. Net cash provided by operating activities of $41.6 million. Cash and cash equivalents of $101.3 million, an increase of $23.8 million sequentially. Adtran Holdings' Chairman and Chief Executive Officer Tom Stanton stated

      5/7/25 11:00:00 PM ET
      $ADTN
      Telecommunications Equipment
      Utilities
    • ADTRAN Holdings, Inc. to release first quarter 2025 financial results on May 7, 2025

      ADTRAN Holdings, Inc. (NASDAQ:ADTN) ("ADTRAN Holdings" or the "Company") announced today that the Company will release its financial results for the first quarter 2025 after the market close on Wednesday, May 7, 2025, at https://investors.adtran.com/. The Company will conduct a conference call on Thursday, May 8, 2025, to discuss the results for the quarter. What: ADTRAN Holdings, Inc. Earnings Call When: 9:30 a.m. Central Time on Thursday, May 8, 2025 The Company will webcast this conference call, or you may dial in to participate. To listen, visit the events and presentations section of ADTRAN Holdings, Inc. Investor Relations site at https://events.q4inc.com/attendee/184900731 approxi

      4/23/25 4:01:00 PM ET
      $ADTN
      Telecommunications Equipment
      Utilities

    $ADTN
    Insider Trading

    Insider transactions reveal critical sentiment about the company from key stakeholders. See them live in this feed.

    See more
    • Chairman & CEO Stanton Thomas R covered exercise/tax liability with 5,408 shares, decreasing direct ownership by 0.57% to 950,186 units (SEC Form 4)

      4 - ADTRAN Holdings, Inc. (0000926282) (Issuer)

      4/15/25 5:35:53 PM ET
      $ADTN
      Telecommunications Equipment
      Utilities
    • SVP of Finance; CFO Santo Timothy P was granted 20,444 shares (SEC Form 4)

      4 - ADTRAN Holdings, Inc. (0000926282) (Issuer)

      3/20/25 4:10:04 PM ET
      $ADTN
      Telecommunications Equipment
      Utilities
    • SEC Form 3 filed by new insider Santo Timothy P

      3 - ADTRAN Holdings, Inc. (0000926282) (Issuer)

      3/20/25 4:00:04 PM ET
      $ADTN
      Telecommunications Equipment
      Utilities

    $ADTN
    Analyst Ratings

    Analyst ratings in real time. Analyst ratings have a very high impact on the underlying stock. See them live in this feed.

    See more
    • Craig Hallum initiated coverage on ADTRAN with a new price target

      Craig Hallum initiated coverage of ADTRAN with a rating of Buy and set a new price target of $15.00

      1/8/25 8:49:25 AM ET
      $ADTN
      Telecommunications Equipment
      Utilities
    • ADTRAN upgraded by Rosenblatt with a new price target

      Rosenblatt upgraded ADTRAN from Neutral to Buy and set a new price target of $10.00 from $6.00 previously

      11/8/24 7:33:12 AM ET
      $ADTN
      Telecommunications Equipment
      Utilities
    • ADTRAN upgraded by Northland Capital with a new price target

      Northland Capital upgraded ADTRAN from Market Perform to Outperform and set a new price target of $7.50

      5/8/24 7:49:47 AM ET
      $ADTN
      Telecommunications Equipment
      Utilities

    $ADTN
    Financials

    Live finance-specific insights

    See more
    • ADTRAN Holdings, Inc. reports preliminary first quarter 2025 financial results

      ADTRAN Holdings, Inc. (NASDAQ:ADTN) ("ADTRAN Holdings" or the "Company") today announced its preliminary unaudited financial results for the first quarter ended March 31, 2025. Revenue: $247.7 million, higher by 10% year-over-year, and above the mid-point of outlook. Gross margin: GAAP gross margin: 38.5%; non-GAAP gross margin: 42.6%. Operating margin: at the high end of outlook. GAAP diluted loss per share of $0.13; non-GAAP diluted earnings per share $0.03. Net cash provided by operating activities of $41.6 million. Cash and cash equivalents of $101.3 million, an increase of $23.8 million sequentially. Adtran Holdings' Chairman and Chief Executive Officer Tom Stanton stated

      5/7/25 11:00:00 PM ET
      $ADTN
      Telecommunications Equipment
      Utilities
    • ADTRAN Holdings, Inc. to release first quarter 2025 financial results on May 7, 2025

      ADTRAN Holdings, Inc. (NASDAQ:ADTN) ("ADTRAN Holdings" or the "Company") announced today that the Company will release its financial results for the first quarter 2025 after the market close on Wednesday, May 7, 2025, at https://investors.adtran.com/. The Company will conduct a conference call on Thursday, May 8, 2025, to discuss the results for the quarter. What: ADTRAN Holdings, Inc. Earnings Call When: 9:30 a.m. Central Time on Thursday, May 8, 2025 The Company will webcast this conference call, or you may dial in to participate. To listen, visit the events and presentations section of ADTRAN Holdings, Inc. Investor Relations site at https://events.q4inc.com/attendee/184900731 approxi

      4/23/25 4:01:00 PM ET
      $ADTN
      Telecommunications Equipment
      Utilities
    • ADTRAN Holdings, Inc. reports preliminary fourth quarter and full-year 2024 financial results

      ADTRAN Holdings, Inc. (NASDAQ:ADTN) ("ADTRAN Holdings" or the "Company") today announced its preliminary unaudited financial results for the fourth quarter and full-year ended December 31, 2024. Revenue: $242.9 million, up 7% sequentially and above the mid-point of outlook. Gross margin: GAAP gross margin: 37.6%; non-GAAP gross margin: 42.0%. Operating margin: improved sequentially on a GAAP and non-GAAP basis, above the mid-point of outlook. GAAP diluted loss per share of $0.58; non-GAAP diluted earnings per share $0.00. Adtran Holdings' Chairman and Chief Executive Officer Tom Stanton stated, "Market conditions continued to improve during the fourth quarter driven by higher

      2/26/25 11:00:00 PM ET
      $ADTN
      Telecommunications Equipment
      Utilities

    $ADTN
    Leadership Updates

    Live Leadership Updates

    See more
    • ADTRAN Holdings, Inc. announces CFO transition

      Timothy Santo, CPA, accomplished finance and accounting executive with extensive public company experience, named CFO; Uli Dopfer to transition to new role ADTRAN Holdings, Inc. (NASDAQ:ADTN) ("ADTRAN Holdings" or the "Company") today announced a Chief Financial Officer transition. Timothy Santo, CPA, has been named CFO, succeeding Uli Dopfer, who will transition into a new role, effective March 10, 2025. Mr. Santo is an accomplished and experienced finance executive with a proven track record as a strategic leader, recognized for establishing effective financial strategies that align with both short and long-term operational objectives at Adtran. Mr. Santo brings more than 25 years of co

      3/6/25 8:45:00 PM ET
      $ADTN
      Telecommunications Equipment
      Utilities
    • KKR, CrowdStrike Holdings and GoDaddy Set to Join S&P 500; Others to Join S&P MidCap 400 and S&P SmallCap 600

      NEW YORK, June 7, 2024 /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI") will make the following changes to the S&P 500, S&P MidCap 400, and S&P SmallCap 600 indices effective prior to the open of trading on Monday, June 24, to coincide with the quarterly rebalance. The changes ensure each index is more representative of its market capitalization range. All companies being added to the S&P 500 are more representative of the large-cap market space, all companies being added to the S&P MidCap 400 are more representative of the mid-cap market space, and all companies being added to the S&P SmallCap 600 are more representative of the small-cap market space. The companies being removed from the S

      6/7/24 6:09:00 PM ET
      $ADTN
      $ALTR
      $ATNI
      $BMRN
      Telecommunications Equipment
      Utilities
      Computer Software: Prepackaged Software
      Technology
    • ADTRAN Holdings Announces Retirement of CFO and Appointment of New CFO

      ADTRAN Holdings, Inc. (NASDAQ:ADTN) ("ADTRAN Holdings" or the "Company"), announced today that after 39 years in the telecommunications industry, ADTRAN Holdings' CFO, Mike Foliano, will retire from the Company effective on June 28, 2023. The Company also announced the appointment of Uli Dopfer as the Company's new Chief Financial Officer, effective May 1, 2023. During his 17 years of service to the Company, Mr. Foliano has made significant contributions to Adtran and has been an integral part of the Company's success and growth during his tenure, and his leadership and expertise will be missed. "I would like to express my deep gratitude for the dedication and commitment Mike has shown to

      3/29/23 8:00:00 PM ET
      $ADTN
      Telecommunications Equipment
      Utilities