Why Ribbon Communications (RBBN) Is Down 7.0% After Raising Full-Year Revenue and Earnings Guidance

• Ribbon Communications reported its third quarter 2025 results earlier this week, posting revenues of US$215.37 million and a narrower net loss compared to the prior year, alongside issuing earnings guidance of US$230 million to US$250 million in revenue for the fourth quarter and a full-year revenue midpoint of US$857 million.
• This combination of quarterly results and updated guidance reflects ongoing revenue growth and improving net loss metrics as the company executes its longer-term business transformation strategy.
• With the company projecting further revenue gains and narrowing losses, we’ll explore how this updated guidance impacts Ribbon Communications’ investment narrative.

These 15 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

Ribbon Communications Investment Narrative Recap

To be a shareholder in Ribbon Communications, you need to believe that ongoing global telecom modernization and increased demand for cloud-native and secure communications will drive the company’s recovery and market relevance, despite its current losses and reliance on large clients. The recent Q3 results and improved guidance suggest positive momentum, but they do not materially lessen the most pressing short-term risk: revenue concentration with major customers like Verizon and the potential volatility this brings.

The most relevant recent announcement is the company's Q4 and full-year 2025 earnings guidance, which projects continued growth and a narrower operating loss. This is important for assessing whether Ribbon can maintain visibility on revenue despite persisting risks such as pricing pressure or contract attrition with key clients, which remain central to its narrative and can influence future investor sentiment.

By contrast, investors should also be aware of just how quickly Ribbon’s fortunes could shift if the company were to lose a major contract with a top-tier customer…

Read the full narrative on Ribbon Communications (it's free!)

Ribbon Communications' outlook anticipates $988.4 million in revenue and $78.5 million in earnings by 2028. This is based on a 4.6% annual revenue growth rate and reflects a $122.9 million increase in earnings from the current level of -$44.4 million.

Uncover how Ribbon Communications' forecasts yield a $6.08 fair value, a 72% upside to its current price.

Exploring Other Perspectives

Fair value estimates from five Simply Wall St Community members span US$3.76 to over US$32.90 per share, with most clustered at the lower end. With ongoing reliance on a few large customers remaining a principal risk, these diverse perspectives highlight how widely opinions differ on Ribbon’s outlook and whether market challenges have been fully priced in.

Explore 5 other fair value estimates on Ribbon Communications - why the stock might be worth just $3.76!

Build Your Own Ribbon Communications Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Ribbon Communications research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Ribbon Communications research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ribbon Communications' overall financial health at a glance.

No Opportunity In Ribbon Communications?

Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped:

• Find companies with promising cash flow potential yet trading below their fair value.
• We've found 17 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com