Plano, Texas – October 29, 2026 -- Ribbon Communications (Nasdaq: RBBN) reported third-quarter 2026 revenue of $219 million, up 14% sequentially, and guided to $233 million to $247 million for the fourth quarter. Net income improved by $18 million.
Adjusted EBITDA more than doubled to $27 million from $12 million in the second quarter. Non-GAAP operating expenses held flat at $88 million.
Ribbon's year-over-year profitability and margins diverge
Revenue was $219 million against $215 million in the third quarter of 2025. GAAP operating income rose to $6 million from $3 million.
Non-GAAP Adjusted EBITDA slipped to $27 million from $29 million a year earlier. GAAP gross margin fell to 48.2% from 50.1%, and non-GAAP gross margin fell to 50.3% from 52.6%.
IP Optical Networks revenue climbs 17% on North American wins
The segment posted record third-quarter sales, up 5% year over year, including two new U.S. Tier 2 Internet Service Provider customers. CEO Bruce McClelland attributed the result to strong bookings in the first half of the year.
Cloud and Edge revenue rises 11% on U.S. Tier 1 modernization
Service Provider revenue in the segment grew 15% sequentially, supported by a 50% increase in sales to Ribbon's largest customer. Enterprise and Government segments also grew.
Ribbon said its pipeline of data center and AI-related opportunities is growing. Looking to 2027, McClelland cited voice-enabled Enterprise AI applications, new solutions against AI-generated voice-phishing attacks, and broader demand for data center fiber infrastructure.
Ribbon guides Q4 EBITDA to $40 million-$47 million
The company projects non-GAAP gross margin of 53.5% to 54.5% for the fourth quarter. The midpoint of the Adjusted EBITDA range implies a sharp step-up from the $27 million reported for the third quarter. CFO Rick Marmurek said Ribbon remains focused on margin expansion, cost discipline and strengthening its balance sheet.
Ribbon noted customer wins during the period. HubOne selected its PSX platform to unify voice traffic across its applications. PT Jala Lintas Media is using Ribbon optical and DCI solutions for subsea and metro capacity between Indonesia and Singapore.
Ribbon will present at Ribbon Insights in the U.S. on November 10-12, the Needham Virtual Technology Conference on November 19, and the UBS Global Technology & AI Conference on December 1.