Image source: © 2025 Krish Capital Pty.Ltd

Highlights

  • ADTRAN Holdings reported revenue of USD 265.1 million in Q2 FY25, increasing 17% from the prior year.
  • GAAP gross margin was 37.3% and non-GAAP operating margin stood at 3.0% for the quarter.
  • The company ended Q2 FY25 with USD 106.3 million in cash, up USD 5.0 million sequentially.

ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) released its unaudited financial results for the second quarter ended June 30, 2025. The company posted revenue of USD 265.1 million, marking a 17 percent increase compared to the same quarter last year. According to the company, this growth spanned all major revenue categories.

Gross margin for the quarter was reported at 37.3 percent on a GAAP basis and 41.4 percent on a non-GAAP basis. Operating performance showed a GAAP operating margin of negative 5.0 percent, while the non-GAAP operating margin was 3.0 percent. Net cash provided by operating activities came in at USD 32.2 million.

ADTRAN also improved its liquidity position, ending the quarter with USD 106.3 million in cash and cash equivalents. This represents a sequential increase of USD 5.0 million from the prior quarter.

In a statement accompanying the results, Chairman and CEO Tom Stanton noted that revenue exceeded internal expectations and pointed to increasing demand and market share gains across key areas. He also highlighted ongoing balance sheet improvements and the role of product investments in supporting the company’s financial performance.

Looking ahead, the company expects third quarter 2025 revenue to fall within the range of USD 270.0 million to USD 280.0 million. Non-GAAP operating margin guidance has been set between 3.0 percent and 7.0 percent. The company did not provide comparable GAAP guidance due to variability in one-time items such as acquisition-related costs and stock-based compensation.

ADTRAN Holdings is the parent company of Adtran, Inc., which offers disaggregated networking and communications solutions globally. Its customer base includes service providers, private enterprises, and government organizations. The company is also the majority shareholder of Adtran Networks SE.