ADTRAN Inc
NASDAQ:ADTN
ADTRAN Inc
ADTRAN, Inc. engages in the provision of networking and communications platforms and services focused on the broadband access market. The company is headquartered in Huntsville, Alabama and currently employs 1,335 full-time employees. The firm operates through two segments: Network Solutions and Services & Support. The Network Solutions segment includes hardware and software products. The Services & Support segment includes a portfolio of maintenance, network installation and solution integration services, which include hosted cloud services and subscription services. The two segments span across Access & Aggregation, Subscriber Solutions & Experience and Traditional & Other Products. Its Access & Aggregation is focused on solutions that are used by service providers to connect their network infrastructure to subscribers. Subscriber Solutions & Experience is concentrated on subscriber solutions that terminate broadband access in the home and/or business. Traditional & Other Products encompasses prior-generation technologies, products and services and certain other offerings.
ADTRAN, Inc. engages in the provision of networking and communications platforms and services focused on the broadband access market. The company is headquartered in Huntsville, Alabama and currently employs 1,335 full-time employees. The firm operates through two segments: Network Solutions and Services & Support. The Network Solutions segment includes hardware and software products. The Services & Support segment includes a portfolio of maintenance, network installation and solution integration services, which include hosted cloud services and subscription services. The two segments span across Access & Aggregation, Subscriber Solutions & Experience and Traditional & Other Products. Its Access & Aggregation is focused on solutions that are used by service providers to connect their network infrastructure to subscribers. Subscriber Solutions & Experience is concentrated on subscriber solutions that terminate broadband access in the home and/or business. Traditional & Other Products encompasses prior-generation technologies, products and services and certain other offerings.
Revenue Growth: Revenue reached $279.4 million, up 23% year-over-year and 5% sequentially, finishing at the high end of guidance.
Margin Expansion: Gross margin improved to 42.1%, with management reiterating a long-term target of 42%–43% and expressing confidence in further progress.
Optical Networking Outperformance: Optical Networking revenue grew 47% year-over-year, helped by a major new European Tier 1 customer and strong market momentum.
Operating Profit: Operating profit increased to $15.1 million, or 5.4% of revenue, exceeding the midpoint of guidance.
Capital Structure: Completed a $201 million financing transaction, reducing borrowing costs and increasing financial flexibility.
2025 Q4 Outlook: Management guided Q4 revenue between $275 million and $285 million, with operating margin expected between 3.5% and 7.5%.
Market Share Gains: Management highlighted significant market share wins in Europe, citing displacement of the largest European competitor.
AI & Product Innovation: Launched Mosaic One Clarity, an AI-powered tool that showed a 75% reduction in trouble tickets in pilot tests.
