ADTRAN Holdings, Inc. Previews Fourth Quarter and Full Year 2025 Financials

## ADTRAN Holdings Surges Past Revenue Estimates, Signaling a Strong Finish to 2025

**Huntsville, AL – January 21, 2026** – ADTRAN Holdings, Inc. (NASDAQ: ADTN; FSE: QH9) is projecting a robust fourth quarter and full fiscal year 2025, with preliminary unaudited revenue significantly exceeding prior guidance. This positive outlook, particularly the outperformance in fourth-quarter revenue, has triggered ad hoc disclosure requirements under German regulations. While these figures are preliminary and subject to final financial close procedures, they paint a picture of strong market demand and effective operational execution.

For the fourth quarter ending December 31, 2025, ADTRAN Holdings anticipates revenue to land between $290.0 million and $293.0 million. This comfortably surpasses the company’s earlier forecast of $275.0 million to $285.0 million, indicating a significant uptick in customer orders and a successful ramp-up in deployments. Looking at the full year, preliminary U.S. GAAP revenue is projected to be in the range of $1,082.2 million to $1,085.2 million.

The company also provided insights into its profitability. Preliminary GAAP operating margin for the fourth quarter is expected to be between 1.4% and 1.7%. More significantly, the preliminary non-GAAP operating margin is forecast to be between 6.0% and 6.9%, aligning with the higher end of its previously guided range of 3.5% to 7.5%. This suggests improved operational efficiencies and a favorable product mix. For the full year, preliminary GAAP operating margin is projected to be between -1.5% and -1.4%, a slight improvement that points towards a stabilization of profitability. The non-GAAP operating margin for the full year is expected to be between 4.6% and 4.9%.

Furthermore, ADTRAN Holdings expects its fourth-quarter non-GAAP earnings per share to surpass current analyst consensus estimates, though the exact variance is yet to be confirmed. A more detailed breakdown of EPS will be provided when the company releases its audited financial results.

Tom Stanton, Chairman and Chief Executive Officer of ADTRAN Holdings, expressed optimism about the preliminary results. “Our preliminary fourth quarter results reflect higher demand and strong execution, outperforming our expectations amid typical year-end seasonality,” Stanton stated. “We look forward to providing additional detail on our fourth quarter results when we report audited results in late February.”

The company plans to officially release its full fourth-quarter and full-year 2025 financial results after market close on Wednesday, February 25, 2026. A conference call for investors is scheduled for Thursday, February 26, 2026, at 7:30 a.m. Central Time.

**Analyzing the Upswing: Drivers of Growth and Profitability**

This revenue beat is particularly noteworthy given the current macroeconomic climate and the dynamic nature of the telecommunications infrastructure market. Several factors likely contributed to ADTRAN’s strong performance:

* **Increased Demand for Broadband Infrastructure:** The ongoing global push for faster and more reliable internet connectivity, driven by remote work, streaming services, and the expansion of 5G, continues to fuel demand for ADTRAN’s networking solutions. Investment in fiber-to-the-home (FTTH) and upgrades to existing network infrastructure are key growth engines.
* **Product Portfolio Strength:** ADTRAN’s focus on open, disaggregated networking solutions likely resonates with service providers looking for flexibility and cost-efficiency. Their portfolio, spanning from the cloud edge to the subscriber edge, positions them to capitalize on various network deployment strategies. The company’s ability to integrate and scale new technologies is crucial in this rapidly evolving landscape.
* **Operational Execution and Cost Management:** The improved operating margins, especially on a non-GAAP basis, suggest effective cost management and a favorable shift in product mix towards higher-margin offerings. The ability to translate revenue growth into profitability is a key indicator of operational health.
* **Strategic Partnerships and Customer Wins:** While not explicitly detailed in this preliminary release, strong relationships with major telecommunications operators and potential new customer acquisitions are vital. The company’s success in securing new projects or expanding existing ones would directly impact revenue figures.

**Navigating the Competitive Landscape**

ADTRAN operates in a highly competitive environment, facing established players and emerging technology providers. The company’s ability to innovate and adapt to technological shifts, such as the increasing adoption of cloud-native network functions and advancements in optical networking, will be critical for sustained growth. The recent significant investments in research and development, coupled with strategic acquisitions, are aimed at maintaining a competitive edge.

The company’s emphasis on non-GAAP financial measures, while common practice, highlights the impact of certain non-cash expenses such as amortization of acquired intangibles and stock-based compensation. Investors often scrutinize these adjustments to understand the underlying operational performance. The provided reconciliation table details these adjustments, offering transparency into how non-GAAP figures are derived. These adjustments are crucial for understanding the true operational leverage of the business, especially in a capital-intensive industry.

The preliminary results and forthcoming earnings report will be closely watched by investors and industry analysts for further confirmation of ADTRAN’s strategic direction and its ability to capitalize on the ongoing digital transformation across the globe. The company’s outlook for the upcoming year, particularly its guidance on revenue and profitability, will be key indicators of its continued trajectory.