ADTRAN Holdings Inc

adtran.com

What Do They Do?

Sells networking equipment, software and services to communications service providers, businesses and government agencies.

How Do They Make Money?

Customers buy network hardware and software; bills are generally sent when products ship or software licenses are delivered, with U.S. payment terms generally 30 days and typically longer elsewhere. Maintenance is paid at the start of its service period, and implementation work is billed when complete.

FY2025 revenue by product or service revenue

Segment	Share	Revenue
Subscriber Solutions	34% FY2022: 38%
Access & Aggregation Solutions	31% FY2022: 36%
Optical Networking Solutions	35% FY2022: 25%

Who Are Their Customers?

Major service-provider accounts are handled by direct sales; smaller and independent telecom companies use direct sales and distributors. Business end-user products are sold directly or through distributors and channel partners, while services can be bought directly or through partners.

Customers above 10% of revenue, FY2025

of revenue from one customer

FY2023: 10% from one customer

Do Revenues Turn Into Profits?

Not on paper. It lost $45.7M in FY2025, but brought in more cash than it spent: $98M of free cash flow.

Operating income, FY2025

−1% of revenue

▼ −96% (Loss) vs FY2024 (−$427.6M, −46%)

Net income, FY2025

−4% of revenue

▼ −90% (Loss) vs FY2024 (−$459.9M, −50%)

Free cash flow, FY2025

9% of revenue

▲ +42% vs FY2024 ($69.1M, 7%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +6%; vs $265.1M in Q2 FY2025
Net income: ▼ −47% (Loss); vs −$20.5M in Q2 FY2025

Optical Networking Solutions share of revenue vs 34.0% in Q2 FY2025

Aug 4, 2026 Issued third-quarter revenue and margin forecasts
Jul 22, 2026 Cut second-quarter revenue and operating-margin forecasts Preliminary revenue was expected at $280.0 million to $282.0 million, below the prior range of $283.0 million to $303.0 million.

Growing. Revenue grew 93% in 4 years, from $563M in FY2021 to $1.1B in FY2025, about 18% a year.

Additional customer groups The older overview names service providers, cable companies and businesses; the latest also names cloud and data center companies and government agencies among its customer base.

Revenue over time

Subscriber Solutions Access & Aggregation Solutions Optical Networking Solutions

$2B$1B$0

FY2021 FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with Calix, Ciena, Nokia, eero, RAD, Vecima, Harmonic, Microchip, Cisco, Ekinops, Smartoptics, Ribbon Communications, Huawei, and ZTE

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