Omers' Eric Haley Retires In Latest Change Within Private Equity
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The head of buyouts at Ontario's pension fund for local government workers, Eric Haley, will leave the firm at the end of the year in the latest change to the plan's private equity business.
Haley will continue to lead the North American buyout team until the end of 2025, Don Peat, spokesperson for the Ontario Municipal Employees Retirement System, said in an email. 'We are deeply grateful to Eric for his commitment to delivering on the Omers pension promise and his significant contributions to our private equity business and team culture.'
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Huhtamaki Oyj (HOYFF) Q2 2025 Earnings Call Highlights: Strong Fiber Packaging Growth and ...
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Business Wire
4 hours ago
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FIBRA Macquarie México Reports Second Quarter 2025 Results
MEXICO CITY--(BUSINESS WIRE)--FIBRA Macquarie México (FIBRAMQ) (BMV: FIBRAMQ) announced its financial and operating results for the second quarter ended June 30, 2025. SECOND QUARTER 2025 HIGHLIGHTS Total Industrial portfolio leasing activity comprised 1.3 million square feet of GLA, including early renewals of 424 thousand square feet Solid tenant retention rates of approximately 80% across Industrial and Retail portfolios Consolidated 2Q25 NOI up 18.1% YoY in Peso terms Consolidated 2Q25 AFFO up 23.3% YoY in Peso terms 'We are proud to report another quarter of strong performance, highlighted by record results across multiple metrics, including AFFO per certificate that was up 8.6% in underlying US dollar terms, to US$30.3 million,' said Simon Hanna, FIBRA Macquarie's chief executive officer. 'Our industrial portfolio continues to demonstrate remarkable strength, achieving record leasing renewal spreads of 27.7%, and the continued demand for space in our markets is reflected in our solid retention and rental rate growth across both our industrial and retail portfolios. On the growth capex front, we are particularly excited about our expanded development program in Tijuana, which represents an attractive opportunity with plans for four Class A buildings totaling approximately 750 thousand square feet. This strategic investment aligns with our long-term vision for sustainable growth in key markets.' Mr. Hanna continued, 'Through our prudent financial management, we have maintained our strong balance sheet position, with ample liquidity and prudent leverage. While we remain mindful of broader economic uncertainties, Mexico maintains a key strategic position within North American supply chains. We continue to successfully navigate the current market conditions, while pursuing selective growth opportunities and maintaining our commitment to disciplined capital allocation. With our reaffirmed full-year US dollar AFFO and distribution per CBFI guidance, we are confident in our ability to deliver sustained value for our certificate holders.' CAPITAL ALLOCATION FIBRAMQ continues to pursue a strategy of investing in and developing Class A industrial assets in core markets that demonstrate strong performance and a positive economic outlook. Industrial Portfolio Growth Capex Program FIBRAMQ has approximately 600 thousand square feet of GLA in stabilization. No new building construction starts were commenced during the quarter. The forecast 2025 cash investment for the industrial development program continues to be in a range of US$50.0 million to US$100.0 million. FIBRAMQ remains disciplined in its capital deployment as it stabilizes recent deliveries and maintains an attractive future growth pipeline. FIBRAMQ continues to target a NOI development yield on cost between 9.0% and 11.0%, which incorporates the highest sustainability standards and is designed to generate embedded operational efficiencies for its customers. Projects in process are summarized below. For further details regarding recently delivered projects, please refer to the Supplementary Information materials located at BMV Filings ( Industrial Development Projects in Process Guadalajara, Jalisco FIBRAMQ continues to make progress in pre-development works including obtaining initial permits, licenses and commencement of initial infrastructure works for the first building comprising 330 thousand square feet of GLA FIBRAMQ anticipates developing two Class A buildings in this park over time, with a total GLA of approximately 460 thousand square feet Apodaca, Nuevo León FIBRAMQ is marketing for lease a 200 thousand square foot property that was delivered during 3Q24 Tijuana, Baja California FIBRAMQ is marketing for lease a 385 thousand square foot property that was delivered during 2Q25 FIBRAMQ has entered into a 50-50 joint venture to develop an industrial park in the prime Pacifico/Libramiento submarket of Tijuana. The project will feature up to four Class A industrial buildings, totaling approximately 750 thousand square feet of GLA with pre-development works, including obtaining initial permits and licenses, and commencement of initial infrastructure works underway FINANCIAL AND OPERATING RESULTS Consolidated Portfolio FIBRAMQ's consolidated 2Q25 results were as follows: Industrial Portfolio The following table summarizes 2Q25 results for FIBRAMQ's industrial portfolio: FIBRAMQ's industrial portfolio performance remains robust, with growing average rental rates and sustained retention. For the quarter ended June 30, 2025, FIBRAMQ's industrial portfolio delivered NOI of US$51.1 million, a 6.0% increase YoY. Total leasing activity comprised 1.3 million square feet, including 120 thousand square feet of new leases. Renewal leases comprised 14 contracts across 1.1 million square feet, driving a retention rate of 93.2% for the quarter and 80.1% over the last 12 months. 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During the prior 12-month period, FIBRAMQ achieved a weighted average lease spread of 22.0% in respect of commercially negotiated lease renewals generating US$33.2 million of annualized base rent. For further details about FIBRA Macquarie's Second Quarter 2025 results, please refer to the Supplementary Information materials located at BMV Filings ( Replacement of Trustee As previously announced, FIBRAMQ replaced CIBanco, S.A., Institución de Banca Múltiple ('CIBanco') with HSBC México, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC, as FIBRA trustee effective July 18, 2025. BALANCE SHEET At June 30, 2025, FIBRAMQ had US$1,230.2 million of debt outstanding and total liquidity of US$420.9 million comprising US$228.8 million available on its undrawn committed revolving credit facilities as well as US$192.1 million of unrestricted cash on hand. FIBRAMQ's indebtedness is 85.0% fixed rate, with 3.0 years of weighted average tenor remaining. As of June 30, 2025, FIBRAMQ's CNBV regulatory debt to total asset ratio was 33.7% and debt service coverage ratio was 6.3x. CERTIFICATE REPURCHASE PROGRAM FIBRAMQ has a Ps. 1,000 million CBFI repurchase-for-cancellation program available through to June 25, 2026. No certificates were repurchased during the quarter. SUSTAINABILITY At June 30, 2025, FIBRA Macquarie's green building certification coverage represented 41.8% of consolidated GLA, representing an increase of 481bps YoY. The sustainability and green financing linked portion of drawn debt stands at 68.3% DISTRIBUTION FIBRAMQ declared a cash distribution of Ps. 0.6125 per certificate for the quarter ended June 30, 2025. The distribution is expected to be paid on or about September 26, 2025, to holders of record on September 25, 2025. FIBRAMQ's certificates are expected to commence trading ex-distribution on September 25, 2025. FY25 GUIDANCE AFFO FIBRA Macquarie is reaffirming its FY25 AFFO guidance in underlying US dollar terms to a range of US$115.0 million to US$119.0 million, representing an annual increase of between 1.0% and 5.0%. FIBRAMQ maintains a cautious outlook on operational performance for 2025, and this guidance assumes no material deterioration of the geopolitical landscape or Mexico's key trading relationships. This guidance assumes: an average exchange rate of Ps. 18.50 per US dollar for the remainder of 2025; no new acquisitions or divestments; no issuances or repurchases of certificates; no deterioration in broader economic and market conditions, including the potential implementation of tariffs or deterioration in the trade relationship with key trading partners Following the recent appreciation of the Peso relative to the US dollar, FIBRAMQ is updating its FY25 AFFO per certificate guidance to a range of Ps. 2.80 to Ps. 2.85. Cash Distribution FIBRAMQ is reaffirming guidance for cash distributions in FY25 of Ps. 2.45 per certificate, paid in equal quarterly instalments of Ps. 0.6125 per certificate. The FY25 per certificate cash distribution guidance equates to an annual increase of 16.7% in Peso terms, with an expected FY25 AFFO payout ratio of approximately 87.0%, based on the AFFO guidance midpoint. In underlying USD terms, the FY25 cash distribution guidance equates to approximately US$101 million, representing an annual increase of 10.8%. The payment of distributions is subject to the approval of the Manager, stable market conditions and prudent management of FIBRAMQ's capital position. Outstanding certificates FIBRA Macquarie had 797,311,397 outstanding certificates as of June 30, 2025. WEBCAST AND CONFERENCE CALL FIBRAMQ will host an earnings conference call and webcast presentation on Friday, July 25, 2025, at 11:00 a.m. CT / 13:00 p.m. ET. The conference call, which will also be webcast, can be accessed online at or by dialing toll free +1-877-407-2988. Callers from Mexico may dial 01-800-522-0034 and other callers from outside the United States may dial +1-201-389-0923. Please ask for the FIBRA Macquarie Second Quarter 2025 Earnings Call. An audio replay will be available by dialing +1-877-660-6853 or +1-201-612-7415 for callers from outside the United States. A webcast archive of the conference call and FIBRA Macquarie's financial information for the second quarter 2025 will also be available on FIBRAMQ's website, About FIBRA Macquarie FIBRA Macquarie México (FIBRA Macquarie) (BMV:FIBRAMQ) is a real estate investment trust (fideicomiso de inversión en bienes raíces), or FIBRA, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores) targeting industrial, retail and office real estate opportunities in Mexico, with a primary focus on stabilized income-producing properties. FIBRA Macquarie's portfolio consists of 243 industrial properties and 17 retail properties, located in 20 cities across 16 Mexican states as of June 30, 2025. Nine of the retail properties are held through a 50/50 joint venture. For additional information about FIBRA Macquarie, please visit Cautionary Note Regarding Forward-looking Statements This release may contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ significantly from these forward-looking statements and we undertake no obligation to update any forward-looking statements. Other than Macquarie Bank Limited ABN 46 008 583 542 ('Macquarie Bank'), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment. THIS RELEASE IS NOT AN OFFER FOR SALE OF SECURITIES IN THE UNITED STATES, AND SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED.
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Ribbon Communications Inc. Reports Second Quarter 2025 Financial Results
Record Second Quarter Revenue Up 15% Year Over Year Profitability at High End of Guidance Robust Growth in Service Provider and Enterprise Markets PLANO, Texas, July 23, 2025 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a leading supplier of real-time communications technology and IP optical networking solutions, today announced its financial results for the second quarter of 2025. Ribbon Communications is dedicated to assisting the world's largest service providers, enterprises, and critical infrastructure operators in modernizing and safeguarding their networks and services. Second Quarter 2025 Highlights Financial Highlights¹: Revenue was $221 million, compared to $193 million for the second quarter of 2024 GAAP Operating Income was $4 million, compared to a loss of $2 million for the second quarter of 2024 Non-GAAP Adjusted EBITDA was $32 million, compared to $22 million for the second quarter of 2024 GAAP Gross Margin was 49.6%, compared to 50.8% for the second quarter of 2024 Non-GAAP Gross Margin was 52.1%, compared to 54.4% for the second quarter of 2024 "I am very pleased with our strong financial performance in the second quarter with both revenue and earnings exceeding our growth projections, resulting in a successful first half of the year. Demand in the North American market was strong across both Service Provider and Enterprise market verticals as we continue to win the largest industry voice transformation opportunities. And we had good momentum in our IP Optical business in India and North America this quarter supporting fiber and mobile network expansion," stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. "Looking ahead, the demand picture remains robust with good visibility, and we continue to anticipate a seasonally stronger second half of the year." John Townsend, Chief Financial Officer, added, "It was great to see our business momentum reflected in our second quarter results. Revenue increased 15% year over year to $221 million, exceeding guidance, and Adjusted EBITDA increased 47% year over year to $32 million, at the top end of our guidance. In the quarter, we announced a new stock repurchase program and expect to use a portion of our free cash flow over the next several years to repurchase up to $50 million of our common stock. Our cash position remained solid, closing the quarter at $62 million including $2.3 million of stock repurchases. In addition, the new U.S. spending bill recently approved by Congress includes corporate tax changes that are expected to result in lower cash tax payments in the second half, which should further improve our cash flow this year." Three months endedSix months ended June 30,June 30, In millions, except per share amounts2025202420252024 GAAP Revenue$ 221$ 193$ 402$ 372 GAAP Net income (loss)$ (11)$ (17)$ (37)$ (47) Non-GAAP Net income (loss)$ 10$ 9$ 5$ 7 Non-GAAP Adjusted EBITDA$ 32$ 22$ 38$ 33 GAAP diluted earnings (loss) per share $ (0.06)$ (0.10)$ (0.21)$ (0.27) Non-GAAP diluted earnings (loss) per share$ 0.05$ 0.05$ 0.03$ 0.04 Weighted average shares outstanding basic177174176173 Weighted average shares outstanding diluted1801761801761 Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about non-GAAP measures in the section entitled "Discussion of Non-GAAP Financial Measures" in the attached schedules. Business Highlights: Ribbon Announces $50 Million Share Repurchase Program Ribbon Showcases AI-Enabled Optical Innovation at OFC NPT 2714 Router and Apollo ADM 400/800 Optical Transport recognized by Lightwave Kerala State Leverages Ribbon for its Kerala Fiber Optic Network (KFON) Deployment | Ribbon Communications Government of Kerala delivers high speed internet to rural India Business Outlook2 For the third quarter of 2025, the Company projects revenue of $213 million to $227 million. Non-GAAP gross margin is projected in a range of 53.5% to 54.0%. Adjusted EBITDA is projected in a range of $28 million to $34 million. Full Year 2025 projections remain unchanged. The Company's outlook is based on current indications for its business, which are subject to change. 2 GAAP earnings guidance is not provided. Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about the non-GAAP measures in the section entitled "Discussion of Non-GAAP Financial Measures" in the attached schedules. Upcoming Conference Schedule August 26-27, 2025: Jefferies Semis, IT Hardware & Comm Tech Summit September 4, 2025: TD Securities Technology Growth Cap Summit Conference Call and Webcast InformationRibbon Communications will host a conference call to discuss the Company's financial results at 4:30 p.m. ET on Wednesday, July 23, 2025. Dial-in Information: US/Canada: 877-407-2991International: 201-389-0925Instant Telephone Access: Call me™ A live (listen-only) webcast and replay will be available on the Company's Investor Relations website at Investor Contact+1 (978) 614-8050ir@ Media ContactCatherine Berthier+1 (646) 741-1974cberthier@ About Ribbon Ribbon Communications (Nasdaq: RBBN) delivers communications software, IP and optical networking solutions to service providers, enterprises and critical infrastructure sectors globally. We engage deeply with our customers, helping them modernize their networks for improved competitive positioning and business outcomes in today's smart, always-on and data-hungry world. Our innovative, end-to-end solutions portfolio delivers unparalleled scale, performance, and agility, including core to edge software-centric solutions, cloud-native offers, leading-edge security and analytics tools, along with IP and optical networking solutions for 5G and broadband internet. We maintain a keen focus on our commitments to Environmental, Social and Governance (ESG) matters, offering an annual Sustainability Report to our stakeholders. To learn more about Ribbon visit Important Information Regarding Forward-Looking Statements This release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to a number of risks and uncertainties. All statements other than statements of historical facts contained in this release, including without limitation, statements regarding the Company's projected financial results for the third quarter of 2025 and beyond; beliefs about the Company's business strategy and market share growth, are forward-looking statements. Without limiting the foregoing, the words "anticipates", "believes", "could", "estimates", "expects", "expectations", "intends", "may", "plans", "projects" and other similar language, whether in the negative or affirmative, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are unknown and/or difficult to predict and that may cause the Company's actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, unpredictable fluctuations in quarterly revenue and operating results; the impact of restructuring and cost-containment activities; increases in tariffs, trade restrictions or taxes on the Company's products; supply chain disruptions resulting from component availability and/or geopolitical instabilities and disputes (including those related to the wars in Israel and Ukraine); the impact of military call-ups of employees in Israel; material litigation; the impact of fluctuations in interest rates; material cybersecurity and data intrusion incidents, including any security breaches resulting in the theft, transfer, or unauthorized disclosure of customer, employee, or Company information; the Company's ability to comply with applicable domestic and foreign information security and privacy laws, regulations and technology platform rules or other obligations related to data privacy and security; failure to compete successfully against telecommunications equipment and networking companies; failure to grow the Company's customer base or generate recurring business from existing customers; credit risks; the timing of customer purchasing decisions and the Company's recognition of revenues; macroeconomic conditions, including inflation; the Company's ability to adapt to rapid technological and market changes; the Company's ability to generate positive returns on its research and development; the Company's ability to protect its intellectual property rights and obtain necessary licenses; the Company's ability to maintain partner, reseller, distribution and vendor support and supply relationships; the potential for defects in the Company's products; risks related to the terms of the Company's credit agreement; higher risks in international operations and markets; currency fluctuations; unanticipated adverse changes in legal, regulatory or tax laws; future accounting pronouncements or changes in the Company's accounting policies and/or failure or circumvention of the Company's controls and procedures. We therefore caution you against relying on any of these forward-looking statements. These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect the Company's business and results from operations. Additional information regarding these and other factors can be found in the Company's reports filed with the Securities and Exchange Commission, including, without limitation, its Form 10-K for the year ended December 31, 2024. Any forward-looking statement made by the Company in this release speaks only as of the date on which this release was first issued. The Company undertakes no obligation to update any forward-looking statement publicly or otherwise, whether as a result of new information, future developments or otherwise, except as required by law. Discussion of Non-GAAP Financial MeasuresThe Company's management uses several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of its business, making operating decisions, planning and forecasting future periods, and determining payments under compensation programs. The Company considers the use of non-GAAP financial measures helpful in assessing the core performance of its continuing operations and when planning and forecasting future periods. The Company's annual financial plan is prepared on a non-GAAP basis and is approved by its board of directors. In addition, budgeting and forecasting for revenue and expenses are conducted on a non-GAAP basis, and actual results on a non-GAAP basis are assessed against the annual financial plan. The Company defines continuing operations as the ongoing results of its business adjusted for certain expenses and credits, as described below. The Company believes that providing non-GAAP information to investors allows them to view the Company's financial results in the way its management views them and helps investors to better understand the Company's core financial and operating performance and evaluate the efficacy of the methodology and information used by its management to evaluate and measure such performance. While the Company's management uses non-GAAP financial measures as tools to enhance its understanding of certain aspects of the Company's financial performance, management does not consider these measures to be a substitute for, or superior to, GAAP measures. In addition, the Company's presentations of these measures may not be comparable to similarly titled measures used by other companies. These non-GAAP financial measures should not be considered alternatives for, or in isolation from, the financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures. In particular, many of the adjustments to the Company's financial measures reflect the exclusion of items that are recurring and will be reflected in its financial results for the foreseeable future. Stock-Based CompensationThe expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. The Company believes that presenting non-GAAP operating results that exclude stock-based compensation provides investors with visibility and insight into its management's method of analysis and its core operating performance. Amortization of Acquired Technology (including software licenses); Amortization of Acquired Intangible AssetsAmortization amounts are inconsistent in frequency and amount and are significantly impacted by the timing and size of acquisitions. Amortization of acquired technology is reported separately within Cost of revenue and Amortization of acquired intangible assets is reported separately within Operating expenses. These items are reported collectively as Amortization of acquired intangible assets in the accompanying reconciliations of non-GAAP and GAAP financial measures. The Company believes that excluding non-cash amortization of these intangible assets facilitates the comparison of its financial results to its historical operating results and to other companies in its industry as if the acquired intangible assets had been developed internally rather than acquired. Litigation CostsIn connection with certain ongoing litigation where Ribbon is the defendant (as described in the Company's Commitments and Contingencies footnotes in its Form 10-Qs and Form 10-Ks filed with the SEC, the Company has incurred litigation costs beginning in 2023. These costs are included as a component of general and administrative expense. The Company believes that such costs are not part of its core business or ongoing operations, are unplanned, and generally are not within its control. Accordingly, the Company believes that excluding litigation costs related to these specific legal matters facilitates the comparison of the Company's financial results to its historical operating results and to other companies in its industry. Acquisition-, Disposal- and Integration-RelatedThe Company considers certain acquisition-, disposal- and integration-related costs to be unrelated to the organic continuing operations of the Company and its acquired businesses. Such costs are generally not relevant to assessing or estimating the long-term performance of the acquired assets. In the second quarter of 2025, the Company recorded $3.9 million of expense for legal and professional fees associated with contemplated corporate development activities. The Company excludes such acquisition-, disposal- and integration-related costs to allow more accurate comparisons of its financial results to its historical operations and the financial results of less acquisitive peer companies and allows management and investors to consider the ongoing operations of the business both with and without such expenses. Restructuring and RelatedThe Company has recorded restructuring and related expense to streamline operations and reduce operating costs by closing and consolidating certain facilities and reducing its worldwide workforce. The Company believes that excluding restructuring and related expense facilitates the comparison of its financial results to its historical operating results and to other companies in its industry, as there are no future revenue streams or other benefits associated with these costs. Preferred Stock and Warrant Liability Mark-to-Market AdjustmentThe Company recorded adjustments to the fair value of its Series A Preferred Stock and Warrants to purchase shares of the Company's common stock in Other (expense) income, net. Both of these instruments were issued in March 2023 in connection with the Company's private placement and have been classified as liabilities and marked to market each reporting period until the Series A Preferred Stock was fully redeemed on June 25, 2024. The Warrant liability remains outstanding and will continue to be marked to market each reporting period. The Company excluded these gains and losses from the change in the fair value of these liabilities because it believes that such gains or losses were not part of its core business or ongoing operations. Tax Effect of Non-GAAP AdjustmentsThe Non-GAAP income tax provision is presented based on an estimated tax rate applied against forecasted annual non-GAAP income. The Non-GAAP income tax provision assumes no available net operating losses or valuation allowances for the U.S. because of reporting significant cumulative non-GAAP income over the past several years. The Company is reporting its non-GAAP quarterly income taxes by computing an annual rate for the Company and applying that single rate (rather than multiple rates by jurisdiction) to its consolidated quarterly results. The Company expects that this methodology will provide a consistent rate throughout the year and allow investors to better understand the impact of income taxes on its results. Due to the methodology applied to its estimated annual tax rate, the Company's estimated tax rate on non-GAAP income will differ from its GAAP tax rate and from its actual tax liabilities. Adjusted EBITDAThe Company uses Adjusted EBITDA as a supplemental measure to review and assess its performance. The Company calculates Adjusted EBITDA by excluding from income (loss) from operations: depreciation; stock-based compensation; amortization of acquired intangible assets; certain litigation costs; acquisition-, disposal- and integration-related expense; and restructuring and related expense. In general, the Company excludes the expenses that it considers to be non-cash and/or not a part of its ongoing operations. The Company may exclude other items in the future that have those characteristics. Adjusted EBITDA is a non-GAAP financial measure that is used by the investing community for comparative and valuation purposes. The Company discloses this metric to support and facilitate dialogue with research analysts and investors. Other companies may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure. RIBBON COMMUNICATIONS INC. Consolidated Statements of Operations (in thousands, except percentages and per share amounts) (unaudited) Three months ended June 30,March 31,June 30, 202520252024 Revenue:Product $ 115,057$ 81,991$ 99,133Service 105,52699,28893,487 Total revenue 220,583181,279192,620Cost of revenue: Product 66,74657,89354,845Service 39,25335,62833,376Amortization of acquired technology 5,2775,3886,532 Total cost of revenue 111,27698,90994,753Gross profit 109,30782,37097,867Gross margin 49.6 %45.4 %50.8 %Operating expenses: Research and development 44,69643,56843,489Sales and marketing 32,53631,78832,984General and administrative 16,63015,12814,901Amortization of acquired intangible assets 5,9756,1556,508Acquisition-, disposal- and integration-related 3,898--Restructuring and related 1,3465,3411,920 Total operating expenses 105,081101,98099,802Income (loss) from operations 4,226(19,610)(1,935) Interest expense, net (10,977)(10,500)(3,879) Other (expense) income, net (2,159)3,129(9,503)Income (loss) before income taxes (8,910)(26,981)(15,317) Income tax benefit (provision) (2,183)754(1,499)Net income (loss) $ (11,093)$ (26,227)$ (16,816)Earnings (loss) per share: Basic$ (0.06)$ (0.15)$ (0.10)Diluted $ (0.06)$ (0.15)$ (0.10)Weighted average shares used to compute earnings (loss) per share: Basic176,749175,719173,793Diluted 176,749175,719173,793 RIBBON COMMUNICATIONS INC. Consolidated Statements of Operations (in thousands, except percentages and per share amounts) (unaudited) Six months ended June 30,June 30, 20252024 Revenue:Product $ 197,048$ 186,743Service 204,814185,541 Total revenue 401,862372,284Cost of revenue: Product 124,639100,639Service 74,88168,740Amortization of acquired technology 10,66513,083 Total cost of revenue 210,185182,462Gross profit 191,677189,822Gross margin 47.7 %51.0 %Operating expenses: Research and development 88,26489,252Sales and marketing 64,32467,700General and administrative 31,75830,092Amortization of acquired intangible assets 12,13013,214Acquisition-, disposal- and integration-related 3,898-Restructuring and related 6,6874,985 Total operating expenses 207,061205,243Income (loss) from operations (15,384)(15,421) Interest expense, net (21,477)(9,866) Other (expense) income, net 970(17,016)Income (loss) before income taxes (35,891)(42,303) Income tax benefit (provision) (1,429)(4,874)Net loss$ (37,320)$ (47,177)Earnings (loss) per share: Basic$ (0.21)$ (0.27)Diluted $ (0.21)$ (0.27)Weighted average shares used to compute earnings (loss) per share: Basic176,237173,110Diluted 176,237173,110 RIBBON COMMUNICATIONS INC. Consolidated Balance Sheets (in thousands) (unaudited) June 30,December 31, 20252024 AssetsCurrent assets: Cash and cash equivalents $ 60,450$ 87,770Restricted cash 1,8242,709Accounts receivable, net 249,360254,718Inventory 80,29979,179Other current assets 42,00739,286 Total current assets 433,940463,662Property and equipment, net 66,65960,364 Intangible assets, net 164,742187,537 Goodwill300,892300,892 Deferred income taxes 99,31488,982 Operating lease right-of-use assets 47,38334,544 Other assets 29,24226,573 $ 1,142,172$ 1,162,554Liabilities and Stockholders' EquityCurrent liabilities: Current portion of term debt $ 8,750$ 6,125Accounts payable 88,69787,759Accrued expenses and other 90,144106,251Operating lease liabilities 10,8169,443Deferred revenue 115,212119,295 Total current liabilities 313,619328,873Long-term debt, net of current 327,625330,726 Warrant liability 6,2738,064 Operating lease liabilities, net of current 62,06337,376 Deferred revenue, net of current 31,74920,991 Deferred income taxes 5,9415,941 Other long-term liabilities 24,46725,962Total liabilities 771,737757,933Commitments and contingencies Stockholders' equity: Common stock 1818Additional paid-in capital 1,973,9901,970,708Accumulated deficit (1,611,505)(1,574,185)Accumulated other comprehensive income 7,9328,080Total stockholders' equity 370,435404,621 $ 1,142,172$ 1,162,554 RIBBON COMMUNICATIONS INC. Consolidated Statements of Cash Flows (in thousands) (unaudited)Six months ended June 30, June 30, 20252024 Cash flows from operating activities: Net loss$ (37,320)$ (47,177)Adjustments to reconcile net loss to cash flows (used in) provided by operating activities:Depreciation and amortization of property and equipment 7,7576,770 Amortization of intangible assets 22,79526,297 Amortization of debt issuance costs and original issue discount 1,4013,445 Amortization of accumulated other comprehensive gain related to interest rate swap -(8,196) Stock-based compensation 8,7758,016 Deferred income taxes (8,984)(8,104) Change in fair value of warrant liability (1,641)875 Change in fair value of preferred stock liability -8,091 Dividends accrued on preferred stock liability -2,743 Payment of dividends accrued on preferred stock liability -(6,686) Foreign currency exchange (gains) losses 5872,023 Changes in operating assets and liabilities: Accounts receivable 4,57856,146Inventory (2,820)(4,405)Other operating assets ...(186)8,854Accounts payable 5,083(20,541)Accrued expenses and other long-term liabilities (11,030)(8,407)Deferred revenue 6,675(16,422) Net cash (used in) provided by operating activities (4,330)3,322 Cash flows from investing activities: Purchases of property and equipment (17,831)(5,613)Purchases of software licenses -(263) Net cash used in investing activities (17,831)(5,876) Cash flows from financing activities: Borrowings under revolving line of credit -44,106Principal payments on revolving line of credit -(44,106)Proceeds from issuance of term debt -342,300Principal payments of term debt (1,750)(235,395)Payment of debt issuance costs -(3,978)Payment of preferred stock liability -(56,850)Proceeds from the exercise of stock options 617Payment of tax obligations related to vested stock awards and units (3,396)(2,638)Repurchase of common stock (2,253)- Net cash used in financing activities (7,393)43,456 Effect of exchange rate changes on cash and cash equivalents 1,349(124) Net (decrease) increase in cash and cash equivalents (28,205)40,778 Cash, cash equivalents and restricted cash, beginning of year 90,47926,630 Cash, cash equivalents and restricted cash, end of period $ 62,274$ 67,408 RIBBON COMMUNICATIONS INC. Supplemental Information (in thousands) (unaudited) The following tables provide the details of stock-based compensation included as components of other line items in the Company's Consolidated Statements of Operations and the line items in which these amounts are reported. Three months ended Six months ended June 30,March 31,June 30,June 30,June 30, 20252025202420252024 Stock-based compensationCost of revenue - product $ 33$ 66$ 64$ 99$ 170 Cost of revenue - service 198286274484746Cost of revenue 231352338583916Research and development 4557256161,1801,684 Sales and marketing 1,0661,1739542,2392,111 General and administrative 2,7252,0481,5864,7733,305Operating expense 4,2463,9463,1568,1927,100Total stock-based compensation $ 4,477$ 4,298$ 3,494$ 8,775$ 8,016 RIBBON COMMUNICATIONS INC. Reconciliation of Non-GAAP and GAAP Financial Measures (in thousands, except per share amounts) (unaudited) Three months ended June 30,March 31,June 30,202520252024 GAAP Gross margin 49.6 %45.4 %50.8 % Stock-based compensation 0.1 %0.2 %0.2 % Amortization of acquired technology 2.4 %3.0 %3.4 % Non-GAAP Gross margin 52.1 %48.6 %54.4 % GAAP Net income (loss) $ (11,093)$ (26,227)$ (16,816) Stock-based compensation 4,4774,2983,494 Amortization of intangible assets 11,25211,54313,040 Litigation costs 2,3148001,768 Acquisition-, disposal- and integration-related 3,898-- Restructuring and related 1,3465,3411,920 Preferred stock and warrant liability mark-to-market adjustment 94(1,735)8,210 Tax effect of non-GAAP adjustments (2,679)1,401(3,095) Non-GAAP Net income (loss) $ 9,609$ (4,579)$ 8,521 GAAP Diluted earnings (loss) per share $ (0.06)$ (0.15)$ (0.10) Stock-based compensation 0.020.020.02 Amortization of intangible assets 0.060.070.08 Litigation costs 0.01 * 0.01 Acquisition-, disposal- and integration-related 0.02-- Restructuring and related 0.010.030.01 Preferred stock and warrant liability mark-to-market adjustment * (0.01)0.05 Tax effect of non-GAAP adjustments (0.01)0.01(0.02) Non-GAAP Diluted earnings (loss) per share $ 0.05$ (0.03)$ 0.05 Weighted average shares used to compute diluted earnings (loss) per share Shares used to compute GAAP diluted earnings (loss) per share 176,749175,719173,793 Shares used to compute Non-GAAP diluted earnings (loss) per share 179,884175,719176,246 GAAP Income (loss) from operations $ 4,226$ (19,610)$ (1,935) Depreciation 4,2883,4693,376 Stock-based compensation 4,4774,2983,494 Amortization of intangible assets 11,25211,54313,040 Litigation costs 2,3148001,768 Acquisition-, disposal- and integration-related 3,898-- Restructuring and related 1,3465,3411,920 Non-GAAP Adjusted EBITDA $ 31,801$ 5,841$ 21,663 * Less than $0.01 impact on earnings (loss) per share. RIBBON COMMUNICATIONS INC. Reconciliation of Non-GAAP and GAAP Financial Measures (in thousands, except per share amounts) (unaudited)Six months endedJune 30,June 30,20252024 GAAP Gross Margin 47.7 %51.0 % Stock-based compensation 0.1 %0.2 % Amortization of acquired technology 2.7 %3.5 % Non-GAAP Gross Margin 50.5 %54.7 % GAAP Net income (loss) $ (37,320)$ (47,177) Stock-based compensation 8,7758,016 Amortization of intangible assets 22,79526,297 Litigation costs 3,1142,719 Acquisition-, disposal- and integration-related 3,898- Restructuring and related 6,6874,985 Preferred stock and warrant liability mark-to-market adjustment (1,641)11,709 Tax effect of non-GAAP adjustments (1,278)876 Non-GAAP Net income (loss) $ 5,030$ 7,425 GAAP Diluted earnings (loss) per share $ (0.21)$ (0.27) Stock-based compensation 0.050.05 Amortization of intangible assets 0.130.14 Litigation costs 0.020.02 Acquisition-, disposal- and integration-related 0.02- Restructuring and related 0.040.03 Preferred stock and warrant liability mark-to-market adjustment (0.01)0.07 Tax effect of non-GAAP adjustments (0.01) * Non-GAAP Diluted earnings (loss) per share $ 0.03$ 0.04 Weighted average shares used to compute diluted earnings (loss) per share Shares used to compute GAAP diluted earnings (loss) per share 176,237173,110 Shares used to compute Non-GAAP diluted earnings (loss) per share 180,231175,784 GAAP Income (loss) from operations $ (15,384)$ (15,421) Depreciation 7,7576,770 Stock-based compensation 8,7758,016 Amortization of intangible assets 22,79526,297 Litigation costs 3,1142,719 Acquisition-, disposal- and integration-related 3,898- Restructuring and related 6,6874,985 Non-GAAP Adjusted EBITDA $ 37,642$ 33,366 * Less than $0.01 impact on earnings (loss) per share. RIBBON COMMUNICATIONS INC. Reconciliation of Non-GAAP and GAAP Financial Measures (in thousands) (unaudited)Trailing Twelve MonthsJune 30,March 31,June 30,202520252024 GAAP Income (loss) from operations $ 16,909$ 10,748$ 2,105 Depreciation 14,52613,61413,816 Stock-based compensation 16,84515,86217,858 Amortization of intangible assets 47,36049,14853,836 Litigation costs 11,59311,0473,735 Acquisition-, disposal- and integration-related 3,898-2,336 Restructuring and related 11,86212,4369,950 Non-GAAP Adjusted EBITDA $ 122,993$ 112,855$ 103,636 RIBBON COMMUNICATIONS INC. Reconciliation of Non-GAAP and GAAP Financial Measures - Outlook (unaudited) Three months ending Year ending September 30, 2025December 31, 2025Midpoint (1) RangeMidpoint (1)RangeRevenue ($ millions) $ 220 +/- $7M$ 880+/- $10MGross margin:GAAP outlook 51.25 % 52.0 %Stock-based compensation 0.20 % 0.2 %Amortization of acquired technology 2.30 % 2.3 % Non-GAAP outlook 53.75 % +/- 0.25%54.5 %+/- 0.5%Adjusted EBITDA ($ millions):GAAP income (loss) from operations $ 10.8 $ 42.3Depreciation 3.9 15.8Stock-based compensation 4.0 16.2Amortization of intangible assets 10.8 44.1Litigation costs 0.3 3.7Acquisition-, disposal- and integration-related - 3.9Restructuring and related 1.2 9.0 Non-GAAP outlook $ 31.0 +/- $3M$ 135.0+/- $5M(1) Q3 2025 and FY 2025 outlook represents the midpoint of the expected ranges View original content to download multimedia: SOURCE Ribbon Communications Inc. 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