Adtran Holdings, Inc. has reported strong financial results for the second quarter ended June 30, 2025, with a revenue of $265.1 million, marking a 17% increase compared to the same period last year. The company's gross margin stood at 37.3% on a GAAP basis and 41.4% on a non-GAAP basis. Its operating margin was reported at (5.0)% on a GAAP basis and 3.0% on a non-GAAP basis.
The net cash provided by operating activities was $32.2 million, and the company's cash and cash equivalents increased by $5.0 million sequentially to reach $106.3 million.
Adtran Holdings' Chairman and CEO, Tom Stanton, attributed the strong results to revenue growth that exceeded expectations, solid execution across the business, and increasing demand. The company experienced growth across all major revenue categories and gained market share in key areas.
Looking ahead, for the third quarter of 2025, Adtran Holdings expects revenue to be within a range of $270.0 million to $280.0 million, and non-GAAP operating margin to be within a range of 3.0% to 7.0%.
These results underscore the impact of the company's strategic product investments and the trust customers are placing in Adtran to help them evolve and scale their networks to meet the demands of cloud, AI, and edge computing.
Adtran Holdings remains confident in continued gains in profitability and cash flow, with a clear strategy, global reach, and investment in next-generation network architectures. The market has reacted to these announcements by moving the company's shares 8.11% to a price of $9.47. For the full picture, make sure to review ADTRAN's 8-K report.
