ADTRAN (ADTN) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $291.6M, up 20.1% year-over-year and 4% sequentially, exceeding guidance and marking the sixth consecutive quarter of sequential growth.

• All business categories—optical networking, access and aggregation, and subscriber solutions—achieved sequential and year-over-year growth, supported by strong demand for fiber networking and cloud/enterprise customers.

• Non-GAAP gross margin improved to 42.5%, up 122 bps year-over-year, with non-GAAP operating margin at 6.4% and non-GAAP EPS at $0.16, a turnaround from a loss a year ago.

• U.S. revenue grew 31% year-over-year and 14% sequentially; non-U.S. revenue grew 12% year-over-year but declined 3% sequentially.

• Management highlighted strong execution, sustained fiber investment, and momentum with cloud and enterprise customers.

Financial highlights

• Q4 2025 revenue: $291.6M, up 20.1% year-over-year and 4% sequentially.

• Non-GAAP gross margin: 42.5% in Q4, up 44 bps sequentially and 122 bps year-over-year.

• Non-GAAP operating profit: $18.8M (6.4% margin), up 103 bps sequentially and 406 bps year-over-year.

• Non-GAAP EPS: $0.16 in Q4, up from $0.05 in Q3 and a loss of $0.02 a year ago.

• Full-year 2025 revenue reached $1.084B, up 17.5% year-over-year, with free cash flow of $60.5M, up 58% from 2024.

Outlook and guidance

• Q1 2026 revenue expected between $275M and $295M; non-GAAP operating margin guidance of 4%-8%.

• Management remains focused on margin expansion, cash generation, and leveraging customer momentum.