ADTRAN Holdings, Inc. SEC 10-Q Report

ADTRAN Holdings, Inc., a leading provider of networking and communications equipment, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant improvements in financial performance and outlines key operational strategies aimed at sustaining growth and efficiency in a competitive market.

Financial Highlights

ADTRAN Holdings, Inc. reported robust financial performance for the second quarter of 2025, showcasing notable improvements across several key metrics:

• Total Revenue: $265.1 million, reflecting an increase from $226.0 million in the prior year period, driven by higher sales in Network Solutions.
• Gross Profit: $98.9 million, up from $81.3 million, indicating improved cost management and increased sales volume.
• Operating Loss: $(13.3) million, a significant improvement from $(38.5) million, due to reduced research and development expenses.
• Net Loss: $(18.3) million, compared to $(47.2) million in the previous year, reflecting better operational efficiency.
• Loss per common share attributable to ADTRAN Holdings, Inc. – basic: $(0.24), improved from $(0.63) in the prior year period.

Business Highlights

The company's business performance for the second quarter of 2025 highlights strong operational metrics and strategic initiatives:

• Revenue Segments: The Network Solutions segment, which includes hardware and software products, generated $219.5 million in revenue for the three months ended June 30, 2025, with a gross profit of $72.2 million. The Services & Support segment, offering network design, implementation, maintenance, and cloud-hosted services, reported $45.6 million in revenue with a gross profit of $26.7 million.
• Geographical Performance: The United States remains a significant market, contributing $120.3 million to the total revenue for the three months ended June 30, 2025. The United Kingdom and Germany also showed strong performance, with revenues of $56.2 million and $31.2 million, respectively, indicating robust demand in these regions.
• Future Outlook: Management anticipates continued growth in orders and billings throughout the remainder of 2025, driven by increasing customer demand and inventory replenishment. The company is focused on maintaining compliance with debt covenants and preserving cash liquidity amidst uncertain macroeconomic conditions.
• Operational Strategy: The company is implementing a Business Efficiency Program aimed at reducing ongoing operating expenses and enhancing capital efficiency. This includes a strategy shift that led to the discontinuation of certain product lines, resulting in an inventory write-down.
• Product and Service Offerings: The company's portfolio includes Subscriber Solutions, Access & Aggregation Solutions, and Optical Networking Solutions, which are used by service providers to deliver high-speed connectivity and manage network performance efficiently.

SEC Filing: ADTRAN Holdings, Inc. [ ADTN ] - 10-Q - Aug. 05, 2025