Ribbon Raises Third-Quarter Revenue Outlook After Sequential Rebound

The Tip Desk · July 28, 2026 · 3 min read

Second-quarter revenue was $192 million, and the company now projects third-quarter sales of $215 million to $230 million.

Ribbon Communications Inc. (RBBN) reported second-quarter revenue of $192 million, an 18% sequential increase from $163 million in the first quarter, and said key financial metrics landed above the midpoint of its guidance.

The communications-technology company also lifted its third-quarter outlook to $215 million to $230 million, from the $185 million to $195 million range it had issued for the second quarter. Non-GAAP gross margin guidance for the third quarter moved to 51% to 52% from 49% to 50%, and Adjusted EBITDA guidance rose to $26 million to $31 million from $9 million to $14 million.

President and Chief Executive Officer Bruce McClelland said the company had meaningful sequential improvement in revenue and profitability in both operating segments and cited record IP Optical quarterly bookings led by North America. He said demand continued to strengthen in IP Optical Networks and that the company had one of its best quarters in the U.S. market.

GAAP operating results swung to a $12 million loss from a $32 million loss in the first quarter. Non-GAAP Adjusted EBITDA was $12 million, reversing an $8 million loss in the prior quarter. GAAP gross margin expanded to 47.0% from 42.9% in the first quarter. Non-GAAP gross margin rose to 49.3% from 45.8%.

Product revenue was $95.6 million and service revenue $96.8 million, with product up from $68.1 million in the first quarter. Restructuring and related expense was $4.4 million, up from $2.0 million.

McClelland said the Enterprise market was a highlight, including a major Microsoft Teams Voice deployment with a top-tier financial institution and a partnership with Salesforce for its Agentforce Contact Center launch. Business highlights also included Planters Broadband selecting Ribbon for a 400G/800G-ready optical route, cloud-native technology partnering with Agentforce Contact Center in the public cloud, rapid-deployment networking for mobile data centers and defense agencies, and expanded partnerships with Comporium and MGW.

For the balance of 2026, McClelland said the company continues to expect sequential revenue growth and improved earnings. He said it sees several larger opportunities in IP Optical that could provide additional upside, balanced by a more moderated view of voice modernization deployment acceleration with U.S. Tier One service providers. Chief Financial Officer Rick Marmurek said second-half revenue growth is expected from several regions, including telecom operators and critical-infrastructure providers in EMEA and Southeast Asia, U.S. government federal agencies, and U.S. regional service providers investing in multi-purpose optical networks that support data-center interconnect, broadband internet access, and mobile backhaul.

The company has adjusted full-year 2026 targets and now expects revenue of $810 million to $840 million, non-GAAP gross margin of 51% to 52%, and Adjusted EBITDA of $78 million to $88 million. Marmurek said financial priorities remain unchanged: execute efficiently, expand margins over time, and generate stronger cash flow as higher-value growth opportunities become a larger part of the business.