HUNTSVILLE, Ala.--(BUSINESS WIRE)--May 04, 2026--
ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) ("ADTRAN Holdings" "ADTRAN" or the "Company") today announced its unaudited financial results for the first quarter ended March 31, 2026.
-- Revenue: $286.1 million, up 15.5% year-over-year.
-- GAAP gross margin of 39.5%; Non-GAAP gross margin of 43.0%; up 108 and
55 basis points year-over-year, respectively.
-- Operating margin: GAAP operating margin of 2.2 %; non-GAAP operating
margin of 6.9%.
-- Net cash provided by operating activities of $12.7 million.
-- GAAP diluted loss per share of $0.01; non-GAAP diluted earnings per
share of $0.14.
-- Cash and cash equivalents of $88.3 million.
ADTRAN Holdings Chairman and Chief Executive Officer Tom Stanton stated, "We delivered solid first quarter results, with revenue increasing 15.5% year-over-year, and GAAP and non-GAAP operating margin rising 380 and 300 basis points from a year ago, respectively. These results reflect the continued strength of our core markets and the operating leverage we have been building."
Mr. Stanton added, "We believe that the demand drivers underpinning our business continue to build. In the US, broadband momentum continues with BEAD deployment funds now beginning to reach operators in a growing number of states. In Europe, high-risk vendor displacement continues to progress, reinforced by the European Commission's advancing legislation such as Cybersecurity Act 2.0. Also during the quarter, we introduced LiteWave800$(TM)$, our first product purpose-built for intra-data center AI infrastructure, setting a new benchmark for power efficiency at 800G."
Business outlook(1)
For the second quarter of 2026, the Company expects revenue to be within a range of $283.0 million to $303.0 million. Non-GAAP operating margin is expected to be within a range of 5.0% to 9.0%.
(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 guidance for its second quarter 2026 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, such as acquisition related expenses, amortization and adjustments, stock-based compensation expense, deferred compensation adjustments, professional fees and other expenses, amortization of pension actuarial losses, the tax effect of these adjustments to net loss and purchases of property, plant and equipment, and developed technologies, 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 first quarter 2026 results on Tuesday , May 5, 2026, at 7:30 a.m. Central Time (2:30 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/656998876 approximately 10 minutes before 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 investor.relations@adtran.com.
Upcoming conference schedule
May 20, 2026: B. Riley Institutional Investor Conference - Marina Del Rey, CA
About Adtran
ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) 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 ("Adtran Networks"). Find more at Adtran.com, LinkedIn and X.
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 market trends, future demand driver growth (including with respect to future fiber expansion, service provider fiber networking demand, future high-risk vendor displacement, data center expansion, and future customer opportunities), the impact of AI on customer network operations, future AI uses, and ADTRAN Holdings' strategy, 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," "look forward," 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 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 our ability to remain in compliance with the covenants set forth in and satisfy the payment obligations under our credit agreement and convertible notes, 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; (ii) 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; (iii) risks and uncertainties related to our inventory practices and ability to match customer demand; (iv) risks and uncertainties relating to our level of indebtedness and our ability to generate cash; (v) risks and uncertainties relating to ongoing material weaknesses in our internal control over financial reporting; (vi) risks posed by changes in general economic conditions and monetary, fiscal and trade policies, including tariffs; (vii) risks and uncertainties relating to our international operations, including potential exposure to ongoing military conflicts (including the conflicts in Iran, Ukraine, and Israel and the surrounding areas); (viii) risks posed by potential breaches of information systems and cyber-attacks (ix) the risk that we may not be able to effectively compete, including through product improvements and development; and (x) the other risks set forth in our public filings made with the Securities and Exchange Commission (the "SEC"), including our most recent Annual Report on Form 10-K for the year ended December 31, 2025 and our Form 10-Q for the quarterly period ended March 31, 2026 to be filed with the SEC.
Explanation of use of non-GAAP financial measures
Set forth in the tables below under the heading "Supplemental Information" are reconciliations of cost of revenue, gross profit, gross margin, operating expenses, operating income (loss), operating margin, other expense, net income (loss) inclusive of 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 operating activities, in each case as reported based on generally accepted accounting principles in the United States ("GAAP"), to non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP other expense, non-GAAP net income inclusive of the non-controlling interest, non-GAAP net income attributable to the Company, non-GAAP net earnings per share - basic and diluted, attributable to the Company, and free cash flow, respectively. Such non-GAAP measures exclude acquisition-related expenses, amortizations and adjustments (consisting of intangible amortization of backlog, developed technology, customer relationships, and trade names acquired in connection with business combinations), stock-based compensation expense, deferred compensation adjustments, professional fees and other expenses, amortization of pension actuarial losses, the tax effect of these adjustments to net loss and purchases of property, plant and equipment, and
developed technologies. 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. Furthermore, 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
(Unaudited)
(In thousands)
March 31, December 31,
2026 2025
---------- --------------
Assets
Current Assets
Cash and cash equivalents $ 88,270 $ 95,696
Accounts receivable, net 215,473 210,687
Other receivables 10,292 7,046
Inventory, net 209,003 215,736
Income tax receivable 2,971 3,667
Prepaid expenses and other current
assets 62,492 55,317
Short-term investments - deferred
compensation 33,813 35,174
Assets held for sale 11,901 11,901
--------- ----------
Total Current Assets 634,215 635,224
Property, plant and equipment, net 123,849 124,384
Goodwill 59,003 59,983
Intangible assets, net 281,280 294,047
Deferred tax assets 16,223 16,481
Other non-current assets 69,560 73,352
Long-term investments 937 1,022
--------- ----------
Total Assets $1,185,067 $ 1,204,493
========= ==========
Liabilities, Redeemable Non-Controlling
Interest and Equity
Current Liabilities
Accounts payable $ 170,605 $ 167,337
Unearned revenue 90,752 87,541
Accrued expenses and other liabilities 31,736 33,690
Accrued wages and benefits 23,449 32,203
Deferred compensation liability 37,051 37,447
Income tax payable 5,613 3,642
--------- ----------
Total Current Liabilities 359,206 361,860
Non-current revolving credit agreement 25,000 25,000
Non-current convertible senior notes,
net of debt issuance costs 193,425 193,038
Deferred tax liabilities 26,776 27,453
Non-current unearned revenue 26,227 27,143
Non-current pension liability 6,305 6,277
Non-current lease obligations 24,940 27,000
Other non-current liabilities 16,646 17,564
--------- ----------
Total Liabilities 678,525 685,335
Redeemable Non-Controlling Interest 369,017 373,328
Equity
Common stock 808 802
Additional paid-in capital 803,031 801,269
Accumulated other comprehensive income 70,046 78,877
Retained deficit (731,345) (730,010)
Treasury stock (5,015) (5,108)
--------- ----------
Total Equity 137,525 145,830
--------- ----------
Total Liabilities, Redeemable
Non-Controlling Interest and Equity $1,185,067 $ 1,204,493
========= ==========
Condensed Consolidated Statements of Loss
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
March 31,
2026 2025
----------- --------
Revenue
Network Solutions $ 237,941 $202,217
Services & Support 48,145 45,527
------- -------
Total Revenue 286,086 247,744
Cost of Revenue
Network Solutions 154,648 134,241
Services & Support 18,450 18,327
------- -------
Total Cost of Revenue 173,098 152,568
Gross Profit 112,988 95,176
Selling, general and administrative
expenses 55,836 50,285
Research and development expenses 50,777 48,859
------- -------
Operating Income (Loss) 6,375 (3,968)
Interest and dividend income 300 126
Interest expense (4,241) (4,761)
Net investment loss (850) (1,686)
Other income, net 1,263 944
------- -------
Income (Loss) Before Income Taxes 2,847 (9,345)
Income tax (expense) benefit (1,917) 397
------- -------
Net Income (Loss) $ 930 $ (8,948)
Less: Net Income attributable to
non-controlling interest (1) 2,251 2,319
------- -------
Net Loss attributable to ADTRAN
Holdings, Inc. $ (1,321) $(11,267)
======= =======
Weighted average shares outstanding --
basic 80,321 79,534
Weighted average shares outstanding --
diluted 80,321 79,534
Loss per common share attributable to
ADTRAN Holdings, Inc. -- basic (2) $ (0.01) $ (0.14)
Loss per common share attributable to
ADTRAN Holdings, Inc. -- diluted (2) $ (0.01) $ (0.14)
(1) For the three months ended March 31, 2026 and 2025 we accrued $2.2 million
and $2.4 million, respectively, of net income attributable to non-controlling
interest, representing the recurring cash compensation earned by
non-controlling interest shareholders post-DPLTA.
(2) Loss per common share attributable to ADTRAN Holdings, Inc. - basic and
diluted - reflects a $0.3 million and a $(3) thousand effect of redemption of
RNCI for the three months ended March 31, 2026 and 2025.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Three Months Ended
March 31,
2026 2025
----------- --------
Cash flows from operating activities:
Net income (loss) $ 930 $ (8,948)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation and amortization 24,916 21,596
Amortization of debt issuance cost 374 320
Amortization of convertible notes
issuance costs 386 --
Loss on investments, net 822 1,631
Net loss on disposal of property,
plant and equipment 60 13
Stock-based compensation expense 1,819 3,210
Deferred income taxes (244) (157)
Inventory reserves 143 3,339
Changes in operating assets and
liabilities:
Accounts receivable, net (6,192) 16,011
Other receivables (3,312) (1,141)
Income taxes receivable 896 (690)
Inventory 4,671 10,345
Prepaid expenses, other current
assets and other assets (5,558) 1,504
Accounts payable 366 (4,222)
Accrued expenses and other
liabilities (9,197) 352
Income taxes payable 1,790 18
------- -------
Net cash provided by operating activities 12,670 43,181
------- -------
Cash flows from investing activities:
Purchases of property, plant and
equipment (7,505) (7,399)
Purchases of intangibles -
developed technology (8,435) (11,296)
Proceeds from sales and maturities
of available-for-sale investments 736 660
Purchases of available-for-sale
investments (75) (170)
Payments for beneficial interests
in securitized accounts
receivable (574) (133)
------- -------
Net cash used in investing activities (15,853) (18,338)
------- -------
Cash flows from financing activities:
Tax withholdings related to
stock-based compensation
settlements (1,645) (420)
Proceeds from stock option
exercises 1,369 756
Payments on financing agreement (1,400) --
Redemption of redeemable
non-controlling interest (8) (12)
------- -------
Net cash (used in) provided by financing
activities (1,684) 324
------- -------
Net (decrease) increase in cash and
cash equivalents (4,867) 25,167
Effect of exchange rate changes (2,559) 133
Cash and cash equivalents, beginning of
period 95,696 76,021
------- -------
Cash and cash equivalents, end of period $ 88,270 $101,321
======= =======
Supplemental disclosure of cash financing
activities:
Cash paid for interest expense $ 4,451 $ 4,129
Cash (refund) paid for income
taxes, net $ (814) $ 2,367
Cash used in operating activities
related to operating leases $ 2,425 $ 2,696
Supplemental disclosure of non-cash
investing and financing activities:
Redemption of redeemable
non-controlling interest $ 301 $ (3)
Right-of-use assets obtained in
exchange for lease obligations $ 183 $ 1,893
Purchases of property, plant and
equipment included in accounts
payable $ 1,296 $ 1,162
Supplemental Information Reconciliation of Cost of Revenue Gross
Profit and Gross Margin to Non-GAAP Cost of Revenue, Non-GAAP Gross
Profit and Non-GAAP Gross Margin (Unaudited) (In thousands)
Three Months Ended
-------------------------------------------
March
31, December 31, March 31,
2026 2025 2025
-------- ------------ -----------
Total Revenue $286,086 $ 291,560 $ 247,744
Cost of Revenue $173,098 $ 177,831 $ 152,568
Acquisition-related
expenses,
amortizations and
adjustments (1) (10,021) (9,964) (9,831)
Stock-based
compensation
expense (140) (232) (267)
------- -------- -------
Non-GAAP Cost of
Revenue $162,937 $ 167,635 $ 142,470
======= ======== =======
Gross Profit $112,988 $ 113,729 $ 95,176
Non-GAAP Gross Profit $123,149 $ 123,925 $ 105,274
Gross Margin 39.5% 39.0% 38.4%
Non-GAAP Gross Margin 43.0% 42.5% 42.5%
(1) Includes intangible amortization of backlog, 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.
Supplemental Information
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
(Unaudited)
(In thousands)
Three Months Ended
----------------------------------------
March December March
31, 31, 31,
2026 2025 2025
-------- --------- -------
Operating Expenses $106,613 $ 109,251 $99,144
Acquisition-related
expenses,
amortizations and
adjustments (1) (1,641) (2) (1,805) (6) (2,249) (9)
Stock-based
compensation
expense (1,679) (3) (1,092) (7) (2,943) (10)
Deferred compensation
adjustments (4) 11 781 1,547
Professional fees and
other expenses (30) (5) (1,988) (8) --
------- -------- ------
Non-GAAP Operating
Expenses $103,274 $ 105,147 $95,499
======= ======== ======
(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 intangible amortization of developed technology, customer
relationships, and trade names acquired in connection with business
combinations, of which $1.4 million is included in selling, general and
administrative expenses and $0.2 million is included in research and
development expenses on the condensed consolidated statements of loss.
(3) $1.2 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.
(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) Included in selling, general and administrative expenses on the condensed
consolidated statements of loss. Includes one-time professional fees and
business expenses.
(6) Includes intangible amortization of developed technology, customer
relationships, and trade names acquired in connection with business
combinations, of which $1.4 million is included in selling, general and
administrative expenses and $0.4 million is included in research and
development expenses on the condensed consolidated statements of loss.
(7) $0.4 million is included in selling, general and administrative expenses
and $0.7 million is included in research and development expenses on the
condensed consolidated statements of loss.
(8) $2.0 million is included in selling, general and administrative expenses
on the condensed consolidated statements of loss. Includes professional fees
related to an internal investigation and a related SEC inquiry, a provision in
connection with a potential 401(k) plan corrective action, and fees relating
to other one-time professional fees and business expenses.
(9) Includes $2.2 million of intangible amortization of developed technology,
customer relationships, and trade names acquired in connection with business
combinations.
(10) $2.0 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.
Supplemental Information Reconciliation of Operating Income (Loss) and
Operating Margin to Non-GAAP Operating Income and Non-GAAP Operating
Margin (Unaudited) (In thousands)
Three Months Ended
------------------------------------------------
March 31, December 31, March 31,
2026 2025 2025
----------- -------------- -----------
Total Revenue $ 286,086 $ 291,560 $ 247,744
Operating Income
(Loss) $ 6,375 $ 4,478 $ (3,968)
Acquisition
related expenses,
amortizations and
adjustments (1) 11,662 11,769 12,080
Stock-based
compensation
expense 1,819 1,324 3,210
Deferred
compensation
adjustments (2) (11) (781) (1,547)
Professional fees
and other
expenses (3) 30 1,988 --
------- ---------- -------
Non-GAAP Operating
Income $ 19,875 $ 18,778 $ 9,775
======= ========== =======
Operating Margin 2.2% 1.5% -1.6%
Non-GAAP Operating
Margin 6.9% 6.4% 3.9%
(1) Includes intangible amortization of backlog, 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 non-cash change in fair value of equity investments held in the
ADTRAN Holdings, Inc. Deferred Compensation Program for certain employees, all
of which is included in selling, general and administrative expenses on the
condensed consolidated statement of loss.
(3) Includes professional fees related to an internal investigation and a
related SEC inquiry, a provision in connection with a potential 401(k) plan
corrective action, employee exit costs and fees relating to other one-time
professional fees and business expenses.
Supplemental Information
Reconciliation of Other Expense to Non-GAAP Other Expense
(Unaudited)
(In thousands)
Three Months Ended
------------------------------------------
March 31, December 31, March 31,
2026 2025 2025
----------- -------------- -----------
Interest and dividend
income $ 300 $ 1,703 $ 126
Interest expense (4,241) (4,520) (4,761)
Net investment loss (850) (574) (1,686)
Other income, net 1,263 805 944
------- ---------- -------
Total Other Expense $ (3,528) $ (2,586) $ (5,377)
Deferred compensation
adjustments (1) 1,012 601 1,649
Pension expense (2) (20) 12 11
------- ---------- -------
Non-GAAP Other
Expense $ (2,536) $ (1,973) $ (3,717)
======= ========== =======
(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 Net Income (Loss)
inclusive of Non-Controlling Interest to Non-GAAP Net Income
inclusive of Non-Controlling Interest (Unaudited) and Reconciliation
of Net Loss attributable to ADTRAN Holdings, Inc. and Loss per
Common Share attributable to ADTRAN Holdings, Inc. -- Basic and
Diluted to Non-GAAP Net Income attributable to ADTRAN Holdings, Inc.
and Non-GAAP Earnings per Common Share attributable to ADTRAN
Holdings, Inc. -- Basic and Diluted (Unaudited) (In thousands,
except per share amounts)
Three Months Ended
------------------------------------------
March 31, December 31, March 31,
2026 2025 2025
----------- -------------- -----------
Net Loss attributable
to ADTRAN Holdings,
Inc. common
stockholders $ (1,020) $ (1,521) $ (11,270)
Effect of redemption
of RNCI (1) (301) (2,075) 3
------- ---------- -------
Net Loss attributable
to ADTRAN Holdings,
Inc. $ (1,321) $ (3,596) $ (11,267)
Net Income
attributable to
non-controlling
interest (2) 2,251 2,316 2,319
------- ---------- -------
Net Income (Loss)
inclusive of
non-controlling
interest $ 930 $ (1,280) $ (8,948)
Acquisition related
expenses,
amortizations and
adjustments (3) 11,662 11,769 12,080
Stock-based
compensation
expense 1,819 1,324 3,210
Deferred compensation
adjustments (4) 1,001 (180) 102
Pension adjustments
(5) (20) 12 11
Professional fees and
other expenses (6) 30 1,988 --
Tax effect of
adjustments to net
loss (2,509) (628) (1,980)
------- ---------- -------
Non-GAAP Net Income
inclusive of
non-controlling
interest $ 12,913 $ 13,005 $ 4,475
Net Income
attributable to
non-controlling
interest (2) 2,251 2,316 2,319
------- ---------- -------
Non-GAAP Net Income
attributable to
ADTRAN Holdings,
Inc. $ 10,662 $ 10,689 $ 2,156
------- ---------- -------
Effect of redemption
of RNCI (1) 301 2,075 (3)
------- ---------- -------
Non-GAAP Net Income
attributable to
ADTRAN Holdings,
Inc. common
stockholders $ 10,963 $ 12,764 $ 2,153
======= ========== =======
Weighted average
shares outstanding
-- basic 80,321 79,877 79,534
Weighted average
shares outstanding
-- diluted 80,321 79,877 79,534
Loss per common share
attributable to
ADTRAN Holdings,
Inc. -- basic $ (0.01) $ (0.02) $ (0.14)
Loss per common share
attributable to
ADTRAN Holdings,
Inc. -- diluted $ (0.01) $ (0.02) $ (0.14)
Non-GAAP Earnings per
common share
attributable to
ADTRAN -- basic $ 0.14 $ 0.16 $ 0.03
Non-GAAP Earnings per
common share
attributable to
ADTRAN -- diluted $ 0.14 $ 0.16 $ 0.03
(1) Loss per common share attributable to ADTRAN Holdings, Inc. - basic and
diluted - reflects a $0.3 million and a $(3) thousand effect of redemption of
RNCI for the three months ended March 31, 2026 and 2025.
(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 professional fees related to an internal investigation and a
related SEC inquiry, a provision in connection with a potential 401(k) plan
corrective action and fees relating to other one-time professional fees and
business expenses.
Supplemental Information Reconciliation of Net Cash Provided By
Operating Activities to Free Cash Flow (Unaudited) (In thousands)
Three Months Ended
------------------------------------------
March 31, December 31, March 31,
2026 2025 2025
----------- -------------- -----------
Net cash provided by
operating
activities $ 12,670 $ 42,238 $ 43,181
Purchases of
property, plant and
equipment and
developed
technologies (1) (15,940) (19,708) (18,695)
------- ---------- -------
Free cash flow
(Non-GAAP) $ (3,270) $ 22,530 $ 24,486
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(1) Purchases related to capital expenditures and developed technologies.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260504551223/en/
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Gareth Spence
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Rob Fink
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(END) Dow Jones Newswires
May 04, 2026 23:00 ET (03:00 GMT)