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: ADTRAN reported Q4 revenue of $291.6 million, up 20% year-over-year and above the high end of original guidance.
Profitability: Non-GAAP EPS for Q4 was $0.16, up from $0.05 in Q3 and a loss of $0.02 a year ago, benefiting partly from share buybacks.
Growth Drivers: All three business categories—Optical Networking, Access & Aggregation, and Subscriber Solutions—grew both year-over-year and sequentially.
Margin Expansion: Non-GAAP gross margin improved to 42.5%, up sequentially and year-over-year; non-GAAP operating margin rose to 6.4% of revenue.
Cash Flow: Free cash flow was $22.5 million for the quarter and $60.5 million for 2025, up 58% over the prior year.
Outlook: Q1 2026 revenue is expected between $275 million and $295 million, with a non-GAAP operating margin of 4% to 8%.
Strategic Position: Management highlighted strong demand in both U.S. and Europe, continued progress on Huawei replacement in Europe, and positive trends in broadband funding.
