ADTN · ADTRAN Holdings, Inc.

ADTRAN Holdings delivered Q1 2026 results with revenue of $286.1 million, a 15.5% increase year-over-year, driven primarily by Network Solutions at $237.9 million versus $202.2 million last year, while Services & Support grew modestly to $48.1 million. Gross profit reached $113.0 million, yielding GAAP gross margin expansion to 39.5% (up 108 basis points YoY) and Non-GAAP to 43.0% (up 55 basis points), attributed to improved product and customer mix as noted in the investor presentation. Operating income flipped positive to $6.4 million GAAP (2.2% margin) from a prior-year loss, with Non-GAAP operating margin at 6.9%, up from 3.0% YoY and 6.4% prior quarter, showcasing operating leverage. Net loss attributable to the Company narrowed to $1.3 million, or ($0.01) diluted EPS, versus $11.3 million last year, while Non-GAAP diluted EPS was $0.14. CEO Tom Stanton highlighted core market strength, US broadband momentum via BEAD funds, European high-risk vendor displacement, and the launch of LiteWave800™, a power-efficient 800G product for intra-data center AI. Balance sheet showed cash at $88.3 million, down slightly from $95.7 million at year-end, with operating cash flow of $12.7 million. Q2 guidance projects revenue $283-303 million and Non-GAAP operating margin 5-9%, signaling continued stability amid demand drivers in fiber, secure networks, and AI infrastructure.