Adtran

ADTN · Nasdaq · Information Technology · Financials, fiscal 2016 to 2025

ADTN · Last close · November 6, 2026

$4.04

Adtran's revenue rose 17.5% to $1.1 billion in fiscal 2025. Its operating margin was −1.4%, up from −46.3% a year earlier. Free cash flow was $98 million, up 41.9%. The diluted share count rose 1.0%.

ADTRAN Holdings, Inc. Latest fiscal year ended December 31, 2025 10-K filed February 26, 2026 · 0001193125-26-073878 Updated November 7, 2026

Revenue

$1.1B

17.5%

Operating margin

−1.4%

44.9 pts

Net income

−$46M

Free cash flow

$98M

41.9%

Return on equity

−33.5%

92.2 pts

Market cap

$328M

Nov 6 close

P/E

—

Loss: no P/E

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

What Adtran does

Adtran makes networking equipment, software and services that move data over fiber-optic and other broadband networks. Its customers are telephone and broadband providers, plus utilities, cities and other organizations that build fiber networks, cable companies, large enterprises, data center and content companies, and government agencies. It sells through its own sales staff and through distributors.

Adtran reports two segments. Network Solutions covers hardware and software products. Services & Support covers network design and installation, support, and cloud-based software for running networks. Across both, it groups sales into three categories: Subscriber Solutions (equipment at the customer's home or business), Access & Aggregation Solutions, and Optical Networking Solutions. It competes in markets it describes as increasingly competitive.

Adtran owns ADTRAN, Inc. and holds a majority of Adtran Networks, a German-based business. At the end of 2025 it had 3,338 employees worldwide.

Its biggest risks, as it describes them

Large debt and loan covenants that limit what it can do and could speed up repayment if broken.
Depending heavily on a few customers, so losing one or a major project would cut revenue.
Revenue that swings from period to period, partly because service providers take long to approve new products.
Relying on a few suppliers for key parts, with shortages delaying deliveries.
Costs and obligations tied to its agreement with the shareholders of Adtran Networks.

From Adtran's annual report on Form 10-K, filed February 26, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2016 to 2020, earnings per share fell 48.7% a year and net income 48.9% a year, while buybacks cut the share count by 1%. Adtran then lost money in fiscal 2021, 2022, 2023, 2024 and 2025.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	57	109	87	76	96
Debt incl. finance leases	—	—	—	—	193
Net debt (negative means net cash)	—	—	—	—	97
Net debt to EBITDA	—	—	—	—	1.3x
Debt to equity	—	—	—	—	1.3x
Interest coverage	−432.4x	−21.2x	−13.7x	−19.4x	−0.8x
Current ratio	2.4x	2.1x	2.6x	2.0x	1.8x
Quick ratio	1.5x	1.1x	1.3x	1.1x	1.2x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project Adtran's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open Adtran's projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, 3 insiders bought $499,754 of Adtran shares on the open market, and 3 insiders sold $2.5 million, $2.2 million of it under trading plans set up in advance.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Aug 6, 2026	Timothy P SantoSVP of Finance; CFO	Bought	6,579	$7.60	$50,000	Form 4
May 20, 2026	James Denson Wilson JrChief Revenue Officer	Sold	9,332	$14.72	$137,367	Form 4
May 8, 2026	Christoph GlingenerChief Technology Officer	Sold plan	22,277	$15.00	$334,155	Form 4
May 7, 2026	Christoph GlingenerChief Technology Officer	Sold plan	126,115	$14.95	$1.9 million	Form 4
Mar 4, 2026	Hourigan Rice JacquelineDirector	Sold	14,406	$10.29	$148,238	Form 4
Nov 28, 2025	Timothy P SantoSVP of Finance; CFO	Bought	6,150	$8.02	$49,323	Form 4
Nov 26, 2025	Nikos TheodosopoulosDirector	Bought	12,859	$7.81	$100,429	Form 4
Nov 24, 2025	Thomas R StantonChairman & CEO, Director	Bought	40,928	$7.33	$300,002	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	—	—	—
Rule of 40	5.1%	−12.2%	26.5%
Altman Z''	1.40	−2.44	−0.35
Accruals ratio	−12.5%	−39.6%	−14.8%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Fail	Fail	Fail
Cash from operations is positive	Fail	Pass	Pass
Return on assets rose	Fail	Fail	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	—	—	—
Current ratio rose	Pass	Fail	Fail
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	Fail	Pass	Pass
Revenue rose relative to assets	Fail	Fail	Pass
F-score	—	—	—

Companies that report no gross profit are scored on the other eight.

Compare

Put Adtran side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Adtran	FY25	17.5%	−1.4%	9.0%	—	1.3x	—
Extreme Networks	FY26	12.6%	4.9%	7.4%	—	−0.6x	7	Compare
NETSCOUT Systems	FY26	4.5%	12.8%	33.2%	8.6%	−4.0x	7	Compare
InterDigital	FY25	−4.0%	55.3%	63.4%	113.5%	−1.4x	6	Compare
Viavi Solutions	FY26	40.0%	6.9%	5.5%	4.3%	−0.1x	6	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	637	667	529	530	506	563	1,026	1,149	923	1,084
Revenue growth	6.1%	4.7%	−20.6%	0.1%	−4.4%	11.2%	82.2%	12.1%	−19.7%	17.5%
Gross profit	291	304	204	219	218	218	327	331	324	415
Research and development	125	131	124	126	113	109	174	258	222	204
Operating income	35	37	−45	−40	−10	−15	−73	−224	−428	−16
Net income	35	24	−19	−53	2	−9	−2	−269	−460	−46
Diluted EPS (US$)	0.72	0.49	−0.40	−1.11	0.05	−0.18	−0.03	−3.43	−5.79	−0.52
Diluted shares (millions)	49	49	48	48	48	49	62	78	79	80
Cash flow
Cash from operations	42	−42	56	−2	−16	3	−44	−43	104	130
Capital expenditure	21	15	8	10	6	6	17	36	34	32
Free cash flow	21	−57	47	−12	−23	−3	−61	−79	69	98
Dividends paid	18	17	17	17	17	18	23	21	0	0
Share buybacks	26	17	16	0	0	0	0	0	0	0
Acquisitions	1	0	22	0	0	0	0	0	0	0
Stock-based compensation	7	7	7	7	7	8	28	16	16	10
Balance sheet at fiscal year end
Cash and short-term investments	123	103	109	107	63	57	109	87	76	96
Debt incl. finance leases	28	27	26	25	—	—	—	—	—	193
Total assets	667	669	628	545	526	569	1,944	1,677	1,171	1,204
Total liabilities	188	171	182	165	153	212	640	629	622	685
Shareholders' equity	480	498	446	380	373	357	1,304	605	127	146
Margins and ratios
Gross margin	45.8%	45.5%	38.5%	41.4%	43.0%	38.8%	31.9%	28.8%	35.1%	38.3%
Operating margin	5.4%	5.6%	−8.6%	−7.5%	−1.9%	−2.6%	−7.1%	−19.5%	−46.3%	−1.4%
Net margin	5.5%	3.6%	−3.6%	−10.0%	0.5%	−1.5%	−0.2%	−23.4%	−49.8%	−4.2%
Free cash flow margin	3.2%	−8.6%	8.9%	−2.3%	−4.5%	−0.5%	−6.0%	−6.9%	7.5%	9.0%
Rule of 40 (growth + FCF margin)	9.3%	−3.8%	−11.7%	−2.1%	−9.0%	10.7%	76.2%	5.1%	−12.2%	26.5%
Return on capital	6.7%	5.0%	−9.1%	−9.6%	—	—	—	—	—	—
Return on equity	7.3%	4.9%	−4.1%	−12.8%	0.6%	−2.4%	−0.2%	−28.2%	−125.6%	−33.5%
Return on assets	5.4%	3.6%	−3.0%	−9.0%	0.4%	−1.6%	−0.2%	−14.8%	−32.3%	−3.8%
Net debt to EBITDA	−1.9x	−1.4x	—	—	—	—	—	—	—	1.3x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Adtran's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Adtran.