ADTRAN二季度正式财报基本确认7月22日预告，未形成新的可交易预期差

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ADTRAN Holdings, Inc. reports second quarter 2026 financial results
August 3, 2026
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HUNTSVILLE, Ala.--(BUSINESS WIRE)--
ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) (“ADTRAN Holdings” “ADTRAN” or the “Company”) today announced its unaudited financial results for the second quarter ended June 30, 2026.
Revenue: $281.1 million, up 6.1 % year-over-year.
GAAP gross margin of 37.0%; non-GAAP gross margin of 40.7%.
GAAP operating margin of -3.6 %; non-GAAP operating margin of 3.8%.
Net cash provided by operating activities of $25.9 million.
GAAP diluted loss per share of $0.13; non-GAAP diluted earnings per share of $0.04.
Cash and cash equivalents of $79.2 million.
ADTRAN Holdings Chairman and Chief Executive Officer Tom Stanton stated, “Demand across our end markets remained strong during the quarter led by the results of our Optical Networking Solutions business. While our second quarter results were affected by a specific set of near-term factors, it does not change the underlying strength or trajectory of our business.”
Mr. Stanton added, “Our strategic priorities remain on track. We continue to gain momentum in optical networking while increasing diversity across cloud providers/hyperscalers, enterprise, and government customers, with revenue from these customers growing 47% year-over-year. We remain committed to our long-term operating model and remain confident that our strategy will deliver long-term shareholder value.”
Business outlook
1
For the third quarter of 2026, the Company expects revenue to be within a range of $275.0 million to $295.0 million. Non-GAAP operating margin is expected to be within a range of 1.5% to 5.5%.
Non-GAAP operating margin (which is calculated as non-GAAP operating income (loss) divided by revenue) is a non-GAAP financial measure. The Company has provided guidance for its third quarter 2026 non-GAAP operating margin. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below. The Company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify without unreasonable effort all of the adjustments that may occur during the period due to the difficulty of predicting the timing and amounts of various items within a reasonable range. In particular, non-GAAP operating margin excludes certain items, such as acquisition related expenses, amortization and adjustments, stock-based compensation expense, deferred compensation adjustments, professional fees and other expenses, amortization of pension actuarial losses, the tax effect of these adjustments to net loss and purchases of property, plant and equipment, and developed technologies, that the Company is unable to quantitatively predict. Depending on the materiality of these items, they could have a significant impact on the Company's GAAP financial results.
Conference call
The Company will hold a conference call to discuss its second quarter 2026 results on Tuesday, August 4, 2026, at 7:30 a.m. Central Time (2:30 p.m. Central European Time). The Company will webcast this conference call at the events and presentations section of ADTRAN Holdings, Inc. Investor Relations website at
https://events.q4inc.com/attendee/977314034
approximately 10 minutes before the start of the call, or you may dial 1-888-330-2391 (Toll-Free US) or 1-240-789-2702, and use Conference ID 8936454.
An online replay of the Company’s conference call, as well as the transcript of the call, will be available on the Investor Relations site
https://investors.adtran.com/
shortly following the call and will remain available for at least 12 months. For more information, visit investors.adtran.com or email
investor.relations@adtran.com
.
Upcoming conference schedule
August 17, 2026: Rosenblatt Virtual Technology Summit - Virtual
September 10, 2026: B. Riley TMT Conference – New York
About Adtran
ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) is the parent company of Adtran, Inc., a leading global provider of open, disaggregated networking and communications solutions that enable voice, data, video and internet communications across any network infrastructure. From the cloud edge to the subscriber edge, Adtran empowers communications service providers around the world to manage and scale services that connect people, places and things. Adtran solutions are used by service providers, private enterprises, government organizations and millions of individual users worldwide. ADTRAN Holdings, Inc. is also the majority shareholder of Adtran Networks SE, formerly ADVA Optical Networking SE (“Adtran Networks”). Find more at
Adtran.com
,
LinkedIn
and
X
Cautionary note regarding forward-looking statements
Statements and graphics contained in this press release and the accompanying earnings call which are not historical facts, such as those relating to market trends, future demand across end markets, future demand driver growth (including with respect to expected hyperscale demand for data center interconnect and next-generation connectivity) and ADTRAN Holdings’ strategy, outlook and financial guidance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can also generally be identified by the use of words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “will,” “may,” “could,” “look forward,” and similar expressions. In addition, ADTRAN Holdings, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such projections and other forward-looking information speak only as of the date hereof, and ADTRAN Holdings undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise, except to the extent as may be required by law. All such forward-looking statements are estimates and reflect management’s best judgment based upon current information. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which have caused and may in the future cause actual events or results to differ materially from those estimated by ADTRAN Holdings include, but are not limited to: (i) risks and uncertainties relating to our ability to remain in compliance with the covenants set forth in and satisfy the payment obligations under our credit agreement and convertible notes, to satisfy our payment obligations to Adtran Networks’ minority shareholders under the Domination and Profit and Loss Transfer Agreement between us and Adtran Networks (the “DPLTA”), and to make payments to Adtran Networks in order to absorb its annual net loss pursuant to the DPLTA; (ii) the risk of fluctuations in revenue due to lengthy sales and approval processes required by major and other service providers for new products, as well as shifting customer spending patterns; (iii) risks and uncertainties related to our inventory practices and ability to match customer demand; (iv) risks and uncertainties relating to our level of indebtedness and our ability to generate cash; (v) risks and uncertainties relating to ongoing material weaknesses in our internal control over financial reporting; (vi) risks posed by changes in general economic conditions and monetary, fiscal and trade policies, including tariffs; (vii) risks and uncertainties relating to our international operations, including potential exposure to ongoing military conflicts (including the conflicts in Iran, Ukraine, and Israel and the surrounding areas); (viii) risks posed by potential breaches of information systems and cyber-attacks (ix) the risk that we may not be able to effectively compete, including through product improvements and development; and (x) the other risks set forth in our public filings made with the Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K for the year ended December 31, 2025, our Form 10-Q for the quarterly period ended March 31, 2026, and our Form 10-Q for the quarterly period ended June 30, 2026 to be filed with the SEC.
Explanation of use of non-GAAP financial measures
Set forth in the tables below under the heading “Supplemental Information” are reconciliations of cost of revenue, gross profit, gross margin, operating expenses, operating (loss) income, operating margin, other income (expense), net (loss) income inclusive of the non-controlling interest, net loss attributable to the Company, and loss per share - basic and diluted, attributable to the Company, and net cash provided by operating activities, in each case as reported based on generally accepted accounting principles in the United States (“GAAP”), to non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP other expense, non-GAAP net income inclusive of the non-controlling interest, non-GAAP net income (loss) attributable to the Company, non-GAAP net earnings (loss) per share - basic and diluted, attributable to the Company, and free cash flow, respectively. Such non-GAAP measures exclude acquisition-related expenses, amortizations and adjustments (consisting of intangible amortization of backlog, developed technology, customer relationships, and trade names acquired in connection with business combinations), stock-based compensation expense, professional fees and other expenses, restructuring expenses, deferred compensation adjustments, amortization of pension actuarial losses, the tax effect of these adjustments to net loss and purchases of property, plant and equipment, and developed technologies. These measures are used by management in our ongoing planning and annual budgeting processes. Additionally, we believe the presentation of these non-GAAP measures, when combined with the presentation of the most directly comparable GAAP financial measure, is beneficial to the overall understanding of ongoing operating performance of the Company. These non-GAAP financial measures are not prepared in accordance with, or an alternative for, GAAP and therefore should not be considered in isolation or as a substitution for analysis of our results as reported under GAAP. Furthermore, our calculation of non-GAAP measures may not be comparable to similar measures calculated by other companies.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
June 30,
December 31,
2026
2025
Assets
Current Assets
Cash and cash equivalents
$
79,236
95,696
Accounts receivable, net
205,761
210,687
Other receivables
9,066
7,046
Inventory, net
208,778
215,736
Income tax receivable
3,537
3,667
Prepaid expenses and other current assets
60,432
55,317
Short-term investments - deferred compensation
39,075
35,174
Assets held for sale
11,901
Total Current Assets
617,786
635,224
Property, plant and equipment, net
123,002
124,384
Goodwill
58,336
59,983
Intangible assets, net
269,488
294,047
Deferred tax assets
16,223
16,481
Other non-current assets
64,110
73,352
Long-term investments
1,016
1,022
Total Assets
1,149,961
1,204,493
Liabilities, Redeemable Non-Controlling Interest and Equity
Current Liabilities
Accounts payable
169,322
167,337
Unearned revenue
78,711
87,541
Accrued expenses and other liabilities
24,702
33,690
Accrued wages and benefits
25,613
32,203
Deferred compensation liability
42,653
37,447
Income tax payable
3,804
3,642
Total Current Liabilities
344,805
361,860
Non-current revolving credit agreement
25,000
Non-current convertible senior notes, net of debt issuance costs
193,822
193,038
Deferred tax liabilities
26,491
27,453
Non-current unearned revenue
24,959
27,143
Non-current pension liability
6,357
6,277
Non-current lease obligations
23,842
27,000
Other non-current liabilities
16,028
17,564
Total Liabilities
661,304
685,335
Redeemable Non-Controlling Interest
359,160
373,328
Equity
Common stock
815
802
Additional paid-in capital
805,882
801,269
Accumulated other comprehensive income
64,194
78,877
Retained deficit
(736,379
)
(730,010
Treasury stock
(5,015
(5,108
Total Equity
129,497
145,830
Total Liabilities, Redeemable Non-Controlling Interest and Equity
Condensed Consolidated Statements of Loss
(In thousands, except per share amounts)
Three Months Ended
Six Months Ended
Revenue
Network Solutions
232,898
219,498
470,839
421,715
Services & Support
48,248
45,570
96,393
91,097
Total Revenue
281,146
265,068
567,232
512,812
Cost of Revenue
157,585
147,321
312,233
281,562
19,610
18,823
38,060
37,150
Total Cost of Revenue
177,195
166,144
350,293
318,712
Gross Profit
103,951
98,924
216,939
194,100
Selling, general and administrative expenses
60,243
60,347
116,079
110,632
Research and development expenses
53,779
51,895
104,556
100,754
Operating Loss
(10,071
(13,318
(3,696
(17,286
Interest and dividend income
397
201
697
327
Interest expense
(4,234
(4,564
(8,475
(9,325
Net investment loss
5,274
3,075
4,424
1,389
Other income (expense), net
718
(2,636
1,981
(1,692
Loss Before Income Taxes
(7,916
(17,242
(5,069
(26,587
Income tax expense
(788
(1,016
(2,705
(619
Net Loss
(8,704
(18,258
(7,774
(27,206
Less: Net Income attributable to non-controlling interest
(1)
2,201
2,273
4,452
4,592
Net Loss attributable to ADTRAN Holdings, Inc.
(10,905
(20,531
(12,226
(31,798
Weighted average shares outstanding – basic
80,948
79,748
80,639
79,642
Weighted average shares outstanding – diluted
Loss per common share attributable to ADTRAN Holdings, Inc. – basic
(2)
(0.13
(0.24
(0.14
(0.38
Loss per common share attributable to ADTRAN Holdings, Inc. – diluted
(1) For the three and six months ended June 30, 2026 we accrued $2.1 million and $4.3 million, respectively, of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA. For the three and six months ended June 30, 2025 we accrued $2.4 million and $4.8 million, respectively, of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA.
(2) Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $0.6 million and $0.9 million effect of redemption of RNCI for the three and six months ended June 30, 2026. Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $1.5 million effect of redemption of RNCI for the three and six months ended June 30, 2025.
Condensed Consolidated Statements of Cash Flows
Cash flows from operating activities:
Net loss
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
50,478
44,990
Amortization of debt issuance cost
746
639
Amortization of convertible notes issuance costs
784
—
Gain on investments, net
(4,530
(1,506
Net loss on disposal of property, plant and equipment
82
24
Stock-based compensation expense
4,670
5,888
Deferred income taxes
(413
1,189
Inventory reserves
277
9,176
Changes in operating assets and liabilities:
1,758
25,754
(2,872
1,416
Income taxes receivable, net
2,733
(2,349
Inventory
3,422
29,594
Prepaid expenses, other current assets and other assets
426
6,095
10,941
(6,242
(20,468
(11,305
Income taxes payable
(1,675
(816
Net cash provided by operating activities
38,585
75,341
Cash flows from investing activities:
Purchases of property, plant and equipment
(16,440
(12,084
Intangibles - internally developed technology
(16,737
(20,444
Proceeds from sales and maturities of available-for-sale investments
812
727
Purchases of available-for-sale investments
(141
(243
Payments for beneficial interests in securitized accounts receivable
(478
(49
Net cash used in investing activities
(32,984
(32,093
Cash flows from financing activities:
Tax withholdings related to stock-based compensation settlements
(1,604
(1,223
Proceeds from stock option exercises
6,612
1,163
Payments on financing agreement
(1,400
Redemption of redeemable non-controlling interest
(13,766
(19,363
Payment of annual recurring compensation to non-controlling interest
(8,881
Proceeds from draw on revolving credit agreements
24,000
Repayment of revolving credit agreements
(24,000
Payment of debt issuance cost
(64
Net cash used in financing activities
(19,039
(19,487
Net (decrease) increase in cash and cash equivalents
(13,438
23,761
Effect of exchange rate changes
(3,022
6,489
Cash and cash equivalents, beginning of period
76,021
Cash and cash equivalents, end of period
106,271
Supplemental disclosure of cash financing activities:
Cash paid for interest expense
5,016
8,049
Cash paid for income taxes, net
2,573
4,155
Cash used in operating activities related to operating leases
4,819
5,236
Supplemental disclosure of non-cash investing and financing activities:
885
1,491
Right-of-use assets obtained in exchange for lease obligations
1,094
3,538
Purchases of property, plant and equipment included in accounts payable
436
1,450
Supplemental Information
Reconciliation of Cost of Revenue Gross Profit and Gross Margin to
Non-GAAP Cost of Revenue, Non-GAAP Gross Profit and Non-GAAP Gross Margin
March 31,
286,086
173,098
Acquisition-related expenses, amortizations and adjustments
(9,949
(10,021
(10,599
(19,970
(20,430
(181
(140
(222
(321
(489
Professional fees and other expenses
(438
Non-GAAP Cost of Revenue
166,627
162,937
155,323
329,564
297,793
112,988
Non-GAAP Gross Profit
114,519
123,149
109,745
237,668
215,019
Gross Margin
37.0
%
39.5
37.3
38.2
37.9
Non-GAAP Gross Margin
40.7
43.0
41.4
41.9
(1) Includes intangible amortization of backlog, developed technology, customer relationships, and trade names acquired in connection with business combinations. We incur charges relating to the amortization of intangible assets and exclude these charges for purposes of calculating our non-GAAP measures. Such charges are significantly impacted by the timing and magnitude of our acquisitions. We exclude these charges for the purpose of calculating our non-GAAP measures, primarily because they are noncash expenses and our internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding intangible asset amortization. Although this does not directly affect our cash position, the loss in value of intangible assets over time can have a material impact on the equivalent GAAP earnings measure.
(2) Included in cost of revenue on the condensed consolidated statements of loss. Includes $0.4 million in related employee exit costs.
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
Operating Expenses
114,022
106,613
112,242
220,635
211,386
(1,630
(1,641
(6)
(2,175
(9)
(3,271
(13)
(4,424
(16)
(2,675
(3)
(1,679
(7)
(2,451
(10)
(4,354
(14)
(5,394
(17)
Restructuring expenses
284
(11)
Deferred compensation adjustments
(4)
(5,494
11
(3,034
(5,483
(1,487
(307
(5)
(30
(8)
(3,153
(12)
(337
(15)
(18)
Non-GAAP Operating Expenses
103,916
103,274
101,713
207,190
197,212
(1) We incur charges relating to the amortization of intangible assets and exclude these charges for purposes of calculating our non-GAAP measures. Such charges are significantly impacted by the timing and magnitude of our acquisitions. We exclude these charges for the purpose of calculating our non-GAAP measures, primarily because they are noncash expenses and our internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding intangible asset amortization. Although this does not directly affect our cash position, the loss in value of intangible assets over time can have a material impact on the equivalent GAAP earnings measure.
(2) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, of which $1.4 million is included in selling, general and administrative expenses and $0.2 million is included in research and development expenses on the condensed consolidated statements of loss.
(3) $2.0 million is included in selling, general and administrative expenses and $0.7 million is included in research and development expenses on the condensed consolidated statements of loss.
(4) Includes non-cash change in fair value of equity investments held in the ADTRAN Holdings, Inc. Deferred Compensation Program for Employees, all of which is included in selling, general and administrative expenses on the condensed consolidated statement of loss.
(5) Included in selling, general and administrative and research and development expenses on the condensed consolidated statements of loss. Includes $0.1 million in one-time professional fees and business expenses, $1.6 million in related employee exit costs and offset by a $1.4 million reversal of a provision in connection with a 401(k) plan corrective action which the Company received a compliance statement from the IRS approving a retroactive amendment to correct the matter.
(6) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, of which $1.4 million is included in selling, general and administrative expenses and $0.2 million is included in research and development expenses on the condensed consolidated statements of loss.
(7) $1.2 million is included in selling, general and administrative expenses and $0.5 million is included in research and development expenses on the condensed consolidated statements of loss.
(8) Included in selling, general and administrative expenses on the condensed consolidated statements of loss. Includes one-time professional fees and business expenses.
(9) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, of which $1.7 million is included in selling, general and administrative expenses and $0.5 million is included in research and development expenses on the condensed consolidated statements of loss acquired in connection with business combinations.
(10) $1.8 million is included in selling, general and administrative expenses and $0.7 million is included in research and development expenses on the condensed consolidated statements of loss.
(11) Includes true-up of expenses for a Business Efficiency Program designed to optimize the assets and business processes following the business combination with Adtran Networks. Other than the Company's aim of selling buildings of its headquarters, the Business Efficiency Program was completed as of December 31, 2024.
(12) $3.2 million is included in selling, general and administrative expenses on the condensed consolidated statements of loss. Includes professional fees related to an internal investigation and related employee exit costs, fees relating to other one-time professional fees and business expenses.
(13) $2.9 million is included in selling, general and administrative expenses and $0.4 million is included in research and development expenses on the condensed consolidated statements of loss.
(14) $3.2 million is included in selling, general and administrative expenses and $1.2 million is included in research and development expenses on the condensed consolidated statements of loss.
(15) Included in selling, general and administrative and research and development expenses on the condensed consolidated statements of loss. Includes $0.1 million in one-time professional fees and business expenses, $1.6 million in related employee exit costs and offset by a $1.4 million reversal of a provision in connection with a 401(k) plan corrective action which the Company received a compliance statement from the IRS approving a retroactive amendment to correct the matter.
(16) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, of which $3.5 million is included in selling, general and administrative expenses and $0.9 million is included in research and development expenses on the condensed consolidated statements of loss.
(17) $3.8 million is included in selling, general and administrative expenses and $1.6 million is included in research and development expenses on the condensed consolidated statements of loss.
(18) $3.2 million is included in selling, general and administrative expenses on the condensed consolidated statements of loss. Includes professional fees related to an internal investigation and related employee exit costs, fees relating to other one-time professional fees and business expenses.
Reconciliation of Operating (Loss) Income and Operating Margin to Non-GAAP Operating Income
and Non-GAAP Operating Margin
Operating (Loss) Income
6,375
Acquisition related expenses, amortizations and adjustments
11,579
11,662
12,774
23,241
24,854
2,856
1,819
2,673
4,675
5,883
(284
5,494
(11
3,034
5,483
1,487
745
30
3,153
775
Non-GAAP Operating Income
10,603
19,875
8,032
30,478
17,807
Operating Margin
-3.6
2.2
-5.0
-0.7
-3.4
Non-GAAP Operating Margin
3.8
6.9
3.0
5.4
3.5
(2) Includes non-cash change in fair value of equity investments held in the ADTRAN Holdings, Inc. Deferred Compensation Program for certain employees, all of which is included in selling, general and administrative expenses on the condensed consolidated statement of loss.
(3) Included in cost of revenue, selling, general and administrative and research and development expenses on the condensed consolidated statements of loss. Includes $0.1 million in one-time professional fees and business expenses, $2.0 million in related employee exit costs and offset by a $1.4 million reversal of a provision in connection with a 401(k) plan corrective action which the Company received a compliance statement from the IRS approving a retroactive amendment to correct the matter.
(4) Included in selling, general and administrative expenses on the condensed consolidated statements of loss. Includes one-time professional fees and business expenses.
(5) Included in selling, general and administrative expenses on the condensed consolidated statements of loss. Includes professional fees related to an internal investigation and related employee exit costs, fees relating to other one-time professional fees and business expenses.
Reconciliation of Other Income (Expense) to Non-GAAP Other Expense
300
(4,241
Net investment gain (loss)
(850
1,263
Total Other Income (Expense)
2,155
(3,528
(3,924
(1,373
(9,301
(5,154
1,012
(2,968
(4,142
(1,319
Pension expense
(20
(40
22
Non-GAAP Other Expense
(3,019
(2,536
(6,881
(5,555
(10,598
(1) Includes non-cash change in fair value of equity investments held in the ADTRAN Holdings, Inc. Deferred Compensation Program for Employees.
(2) Includes amortization of actuarial losses related to the Company's pension plan for employees in certain foreign countries.
Reconciliation of Net (Loss) Income inclusive of Non-Controlling Interest to
Non-GAAP Net Income inclusive of Non-Controlling Interest
Reconciliation of Net Loss attributable to ADTRAN Holdings, Inc. and
Loss per Common Share attributable to ADTRAN Holdings, Inc. – Basic and Diluted to
Non-GAAP Net Income (Loss) attributable to ADTRAN Holdings, Inc. and
Non-GAAP Earnings (Loss) per Common Share attributable to ADTRAN Holdings, Inc. – Basic and Diluted
Net Loss attributable to ADTRAN Holdings, Inc. common stockholders
(10,321
(1,020
(19,037
(11,341
(30,307
Effect of redemption of RNCI
(584
(301
(1,494
(885
(1,491
(1,321
Net Income attributable to non-controlling interest
2,251
Net (Loss) Income inclusive of non-controlling interest
930
340
1,001
66
1,341
168
Pension adjustments
Tax effect of adjustments to net loss
(1,765
(2,509
388
(4,274
(1,592
Non-GAAP Net Income inclusive of non-controlling interest
5,031
12,913
523
17,944
4,998
Non-GAAP Net Income (Loss) attributable to ADTRAN Holdings, Inc.
2,830
10,662
(1,750
13,492
406
584
301
1,494
Non-GAAP Net Income (Loss) attributable to ADTRAN Holdings, Inc. common stockholders
3,414
10,963
(256
14,377
1,897
80,321
(0.01
Non-GAAP Earnings (Loss) per common share attributable to ADTRAN – basic
0.04
0.14
(0.00
0.18
0.02
Non-GAAP Earnings (Loss) per common share attributable to ADTRAN – diluted
(1) Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $0.6 million and $0.9 million effect of redemption of RNCI for the three and six months ended June 30, 2026. Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $1.5 million effect of redemption of RNCI for the three and six months ended June 30, 2025. Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $0.3 million effect of redemption of RNCI for the three months ended March 31, 2026.
(2) Represents the non-controlling interest portion of the Company's ownership of Adtran Networks pre-DPLTA and the annual recurring compensation earned by redeemable non-controlling interests and accrued by the Company post-DPLTA.
(3) We incur charges relating to the amortization of intangible assets and exclude these charges for purposes of calculating our non-GAAP measures. Such charges are significantly impacted by the timing and magnitude of our acquisitions. We exclude these charges for the purpose of calculating our non-GAAP measures, primarily because they are noncash expenses and our internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding intangible asset amortization. Although this does not directly affect our cash position, the loss in value of intangible assets over time can have a material impact on the equivalent GAAP earnings measure.
(4) Includes non-cash change in fair value of equity investments held in deferred compensation plans offered to certain employees.
(5) Includes amortization of actuarial losses related to the Company's pension plan for employees in certain foreign countries.
(6) Includes reduced previously accrued cost for the Company's Business Efficiency Program, which was designed to optimize the assets and business processes following the business combination with Adtran Networks. The Business Efficiency Program was completed as of December 31, 2024.
(7) Included in cost of revenue, selling, general and administrative and research and development expenses on the condensed consolidated statements of loss. Includes $0.1 million in one-time professional fees and business expenses, $2.0 million in related employee exit costs and offset by a $1.4 million reversal of a provision in connection with a 401(k) plan corrective action which the Company received a compliance statement from the IRS approving a retroactive amendment to correct the matter.
(9) $3.2 million is included in selling, general and administrative expenses on the condensed consolidated statements of loss. Includes professional fees related to an internal investigation and related employee exit costs, fees relating to other one-time professional fees and business expenses.
Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow
25,915
12,670
32,160
Purchases of property, plant and equipment and developed technologies
(17,237
(15,940
(13,833
(33,177
(32,528
Free cash flow (Non-GAAP)
8,678
(3,270
18,327
5,408
42,813
(1) Purchases related to capital expenditures and developed technologies.
Published by
ADTRAN Holdings, Inc.
www.adtran.com
Media contact
Gareth Spence
+44 1904 699 358
public.relations@adtran.com
Investor contact
Rob Fink
Source: ADTRAN Holdings, Inc.