ADTRAN Reports Strong Q3 2025 Financials with Revenue Growth

ADTRAN Holdings, Inc. released its Q3 2025 financial results, showing a notable 23% increase in revenue year-over-year, reaching $279.4 million. This figure surpassed the company's midpoint expectations, reflecting solid industry demand. The GAAP gross margin stood at 38.3%, while the non-GAAP gross margin was higher at 42.1%. Operating margins were more mixed, with a GAAP operating margin of (1.0)% and a non-GAAP figure of 5.4%. During this quarter, ADTRAN reported a net cash inflow from operating activities amounting to $12.2 million.

The company faced a GAAP diluted loss per share of $0.12 against a non-GAAP diluted earnings per share of $0.05. Despite this, ADTRAN's cash reserves, including restricted cash, totaled $101.2 million. Looking forward, the company anticipates strong performance in Q4, projecting revenues between $275.0 million and $285.0 million, with a non-GAAP operating margin ranging from 3.5% to 7.5%.