ADTRAN Holdings (NASDAQ:ADTN) reported a strong finish to the 2025 fiscal year, characterized by a double-digit revenue recovery and a notable expansion in its profitability margins.
The networking and communications specialist posted fourth-quarter revenue of $291.6 million, representing a 20.1% increase compared to the same period in 2024.
The company's focus on operational efficiency and a more favorable product mix drove significant margin improvements.
ADTRAN’s non-GAAP gross margin climbed to 42.5%, up 122 basis points year-over-year, while its GAAP gross margin reached 39%.
On an operating basis, the company achieved a non-GAAP operating margin of 6.4%, reflecting a stabilization of its cost structure following recent restructuring efforts.
On the bottom line, ADTRAN narrowed its GAAP diluted loss per share to $0.02.
On a non-GAAP basis, which excludes certain one-time items and acquisition-related expenses, the company earned $0.16 per diluted share.
This performance was supported by strong cash generation, with net cash provided by operating activities totaling $42.2 million for the quarter.