Ribbon Communications Inc. (RBBN): Business Model Canvas [Dec-2025 Updated]

You're looking for the real story behind Ribbon Communications Inc.'s strategy, and honestly, what I see in their late-2025 Business Model Canvas is a company firmly planted in two worlds: the reliable, heavy-lifting of IP Optical hardware and the high-growth potential of cloud-native software. To be clear, they are projecting revenues between $870 million and $890 million for 2025, supported by recurring maintenance and services making up approx. 67% of that high-margin software/services bucket, targeting an Adjusted EBITDA between $130 million and $140 million. It's a complex mix of selling fiber transport gear alongside AI-driven network automation, so let's break down exactly how they connect their key resources to those critical Tier 1 telecom customers below.

Ribbon Communications Inc. (RBBN) - Canvas Business Model: Key Partnerships

You're looking at how Ribbon Communications Inc. monetizes its technology through strategic alliances, which is crucial for scaling its software-centric and IP optical offerings. These partnerships aren't just marketing agreements; they are deeply integrated technical collaborations that drive specific revenue segments.

IBM's Watson AI platform for new solutions

Ribbon Communications secured a notable win in Q3 2025 where IBM is embedding Ribbon's virtual Session Border Controller (SBC) solutions directly within its Watson AI platform. This integration is designed to enable the platform to support multiple interaction formats, including voice, signaling a clear move into the convergence of AI and real-time voice communications. This type of deep embedding validates Ribbon's strategy for agentic AI integrations.

Amazon Web Services (AWS) for cloud deployment of solutions

The reliance on public cloud infrastructure partners like Amazon Web Services is a major theme. In December 2025, Aircall announced it is deploying a suite of Ribbon solutions-including SBC SWe, PSX, Analytics, RAMP, and Ribbon Call Trust® STIR/SHAKEN as a service-directly on the AWS cloud. This deployment aims to accelerate Aircall's time-to-market and consolidate its international footprint while meeting French regulatory mandates for caller ID. Separately, a major SaaS company is using Ribbon's cloud-native SBCs and WebRTC APIs deployed in AWS to enhance its customer service agentic AI operations, showing the platform's utility in cloud-native enterprise applications.

Global channel partners and system integrators

Ribbon Communications emphasizes cross-selling its broad portfolio across its global deployed base of service provider and enterprise customers, a strategy heavily reliant on channel partners and system integrators. The company's overall customer base breakdown shows that 62% of its business comes from Service Providers, while 38% is from Enterprise customers, as of the 2025 overview. The focus remains on leveraging this base to increase share of total spend in the IP and Optical networking market.

Submarine cable consortiums like Seren Juno for optical projects

The IP Optical segment saw significant validation through a high-profile collaboration with the Seren Juno consortium. In November 2025, Ribbon Communications successfully completed a 20Tbps optical transmission field trial over the 10,000 km JUNO trans-Pacific submarine cable. The JUNO system, which is set to deliver more than 350Tbps of total capacity across 20 fiber pairs, utilized Ribbon's Apollo 9408 transponder and the Apollo 9608 platform. This trial confirmed the feasibility of transmitting 20 terabits per second per fiber pair over long haul, setting a new benchmark for global connectivity solutions.

Tier 1 service providers for co-development and large deployments

Deepening relationships with the largest service providers globally is a core strategic pillar for Ribbon Communications. The momentum with these key accounts is evident in regional performance; for instance, sales to EMEA grew by 26% year-over-year in Q3 2025, and sales to India grew by 13% year-over-year in the same quarter, driven by IP Optical and service provider momentum. Furthermore, management noted that U.S. Tier 1 service provider sales had doubled year-over-year as of early 2025 projections, underscoring the success of leveraging the combined portfolio with these major carriers.

Here's a quick look at the quantitative impact of these key relationships:

Ribbon Communications is actively using these partnerships to drive its software-centric, cloud-native offers. The company's Q3 2025 revenue was $215 million, with a non-GAAP gross margin of 52.6%, showing that these strategic moves are underpinning the current financial performance, even with near-term headwinds like the U.S. federal government shutdown impacting Q3 and Q4 projections.

You'll want Finance to track the revenue contribution from the new AWS-deployed solutions in Q4 2025, as that will be a leading indicator for the Cloud & Edge segment's 10% product and professional services revenue growth target for the full year 2025.

Ribbon Communications Inc. (RBBN) - Canvas Business Model: Key Activities

You're looking at the core engine driving Ribbon Communications Inc.'s results as of late 2025. The numbers show a clear pivot toward higher-margin software and advanced networking, even as the legacy voice modernization work continues to pay off.

Research and development of AI-driven networking platforms (Acumen™)

This activity is centered on innovation, most recently highlighted by the launch of the Acumen AIOps and automation platform on September 16, 2025. This platform is designed to help service providers and enterprises move toward autonomous networks. Optimum was announced as one of the first providers to integrate the Acumen platform into their operations. The platform includes out-of-the-box applications for troubleshooting and Key Performance Indicator (KPI) dashboards, and features Acumen Builder, which allows for custom application creation using a low-code/no-code workflow builder that integrates AI agents into business processes. This R&D focus is strategic, positioning Ribbon Communications in the high-growth AIOps market.

Global sales and deployment of IP Optical transport systems

The IP Optical segment is definitely showing strong momentum. For the third quarter of 2025, sales in the IP Optical Networks segment grew 11% year over year, with notable strength in EMEA and India. This growth is supported by a healthy pipeline; as of the first quarter of 2025, the backlog for this segment had increased 35% year-over-year, driven by demand for high-capacity, AI-enabled transport infrastructure. A concrete example of this activity in action was the delivery of a 20 Tbps cross-border link between Jakarta and Singapore for Moratelindo, powered by Ribbon Communications' Apollo optical platform. Here's the quick math on segment contribution based on the prior full fiscal year:

Modernizing legacy TDM voice networks to IP-based systems

This is where Ribbon Communications continues to win significant transformation opportunities, particularly in North America across Service Provider and Enterprise verticals. In the first quarter of 2025, sales to Service Providers increased more than 10% year over year, directly attributed to Network Modernization efforts. While a recent U.S. Federal Government shutdown caused a minor timing issue on new Cloud & Edge purchases in Q3 2025, the related voice modernization projects are still progressing. This activity is a core driver for the Cloud & Edge segment, which saw year-to-date sales increase more than 8% with continued growth from Global Service Providers.

Securing real-time communications via Session Border Controllers (SBCs)

Securing real-time communications remains a foundational activity, with Session Border Controllers being a core product offering. Ribbon Communications offers a wide range of SBC models, with the SBC SWe (software) and the SBC 5400 (hardware) being quite popular choices. The company has strongly embraced virtualization and cloud deployments through its SBC Software Edition (SBC SWe) and its SBC Cloud Native Edition (SBC CNe). These SBCs are built for high availability and robust performance, even under heavy loads or attacks. Management of these deployments is centralized via Ribbon's Application Management Platform (RAMP), which helps manage multiple Ribbon SBCs.

• SBC SWe and SBC CNe strongly embrace virtualization and cloud deployments.
• SBC 5400 is a popular hardware appliance model.
• RAMP provides centralized management for multiple SBCs.
• SBCs are certified for Microsoft Teams Direct Routing.

Providing high-touch professional services and maintenance support

The financial structure reflects the importance of services, with service-based revenue accounting for 46% of the total revenue in Fiscal Year 2024. This support function is critical for maintaining customer satisfaction and recurring revenue streams. The company demonstrated strong cost discipline in the first quarter of 2025, with operating expenses lower year over year in Q3 2025 despite foreign exchange headwinds of approximately $3 million. The overall financial health supports continued investment in this area, as evidenced by the Q3 2025 cash flow from operations of $26 million and a closing cash balance of $77 million. Ribbon Communications also announced a new stock repurchase program in Q2 2025, intending to use a portion of free cash flow to repurchase up to $50 million of common stock over the next several years. Here's how the recent quarterly performance looked:

The company is projecting a strong finish to the year, with Q4 2025 revenue projected between $230 million and $250 million, and Non-GAAP Gross Margin projected between 55% and 56%. That's a solid ramp into year-end.

Ribbon Communications Inc. (RBBN) - Canvas Business Model: Key Resources

You're looking at the core assets Ribbon Communications Inc. relies on to execute its strategy as of late 2025. These are the things they own, the people they employ, and the financial backing they have right now.

• Cloud-native software intellectual property (IP) for Session Border Controllers: This IP centers around the Session Border Controller Cloud Native Edition (SBC CNe), which is architected using microservices deployed in containers orchestrated by Kubernetes for lifecycle management. The SBC CNe is designed to secure VoIP, VoLTE (4G), and VoNR (5G) services and dynamically scales up or down based on demand to reduce cloud computing costs.
• Specialized engineering talent in IP Optical and Cloud & Edge: Ribbon Communications maintains a focus on engineering expertise, evidenced by recent workshops in September 2025 emphasizing the future direction of IP & optical transmission, specifically focusing on automation and openness. The company encourages employees to challenge technological boundaries to solve complex customer issues.
• Global network of sales and support offices: Ribbon Communications Inc. operates globally, with a Japanese subsidiary, Ribbon Communications K.K., mentioned in October 2025, supporting its worldwide service provider, enterprise, and critical infrastructure customer base. Specific counts for global offices are not detailed here.
• Cash balance of $77 million as of Q3 2025: The closing cash balance for Ribbon Communications Inc. at the end of the third quarter of 2025 was $77 million, which was an increase of $14 million from the second quarter of 2025.
• DISA JITC-certified solutions for U.S. Department of Defense contracts: Ribbon Communications has an expanding portfolio of solutions on the Defense Information Systems Agency (DISA) Approved Products List (APL), which signifies compliance with DoD standards for quality, security, interoperability, and reliability. The company noted that most U.S. government-related sales were removed from the fourth quarter projection due to a near-term timing issue related to a government shutdown.

The JITC certifications represent validated trust for mission-critical deployments. Here's a look at some of the key certified and core software assets as of late 2025:

The financial discipline supporting these resources included generating $26 million from operations in Q3 2025, resulting in a net debt leverage ratio of 2.2 times at quarter end. Furthermore, the company executed $3.5 million in share buybacks during Q3 2025.

The IP Optical Networks segment showed strength, with sales growing 11% year-over-year in the third quarter, reaching $91 million in revenue for that segment, while the Cloud & Edge segment sales were $124 million year-to-date, showing an increase of more than 8%.

The core IP and optical assets are being driven by specific product investments:

• Apollo series investments in optical wavelengths.
• Neptune product line for latest IP routing platforms.
• MUSE multi-layered automation platform for operational automation.

Finance: draft 13-week cash view by Friday.

Ribbon Communications Inc. (RBBN) - Canvas Business Model: Value Propositions

You're looking at the core promises Ribbon Communications Inc. is making to its customers as of late 2025, based on their latest reported performance and product launches. Honestly, the numbers show a clear pivot toward high-capacity transport and AI-driven operations.

AI-driven network automation and operational efficiency (Acumen™)

Ribbon Communications launched Acumen, their AIOps and automation platform, on September 16, 2025. This platform is designed to ingest data across all network layers, giving operators end-to-end observability. Optimum was among the first to deploy the platform. The value here is in reducing operational complexity and accelerating the move to autonomous networks. It features a low-code/no-code workflow builder, Acumen Builder, for creating custom applications and integrating Artificial Intelligence agents. Furthermore, strategic AI initiatives include agentic AI integrations, such as with IBM embedding virtual SBC solutions within Watson.

Secure, reliable real-time voice and data communications

The commitment to secure voice is evident in Ribbon Communications Inc.'s deep involvement with the U.S. Department of Defense's Soft Switch Backbone (SSBB) initiative, which replaces legacy systems with secure, software-defined voice networks. This focus is backed by an expanded portfolio of Joint Interoperability Test Command (JITC) certified solutions in 2025. The market for secured communication systems where Ribbon holds this niche is projected to grow at an 8.56% CAGR through 2030. The company's Session Border Controllers (SBCs) are integral to enabling these secure, global voice networks across military branches.

High-capacity IP Optical transport for 5G and fiber broadband expansion

This segment is clearly a growth engine. Ribbon Communications reported that its IP Optical Networks sales grew 11% year-over-year in the third quarter of 2025. This momentum was supported by a 35% year-over-year increase in the IP Optical backlog as of Q1 2025. You can see the scale of this value proposition in real deployments, such as the 20 Tbps cross-border optical link delivered for Moratelindo between Jakarta and Singapore. The technology driving this includes the new Apollo ADM 400/800 optical transport system and the NPT 2714 router, both showcased at OFC 2025.

Modernization of legacy voice networks for competitive advantage

The push to modernize older voice infrastructure remains a core value. In the first quarter of 2025, sales to Service Providers increased more than 10% year-over-year, directly tied to a broad-based focus on Network Modernization. The company's Cloud & Edge segment, which supports migration of network services and voice modernization investments, saw year-to-date sales increase more than 8% as of Q3 2025. The recent U.S. Federal Government shutdown created a near-term timing issue on new purchases, but related voice modernization projects are continuing to progress. This modernization effort helps customers consolidate and update legacy fixed voice communications networks.

End-to-end cloud-native solutions with unparalleled scale and agility

Ribbon Communications Inc. is focused on supporting the migration of network services to public or private Telco Cloud environments. The Cloud & Edge segment is becoming increasingly strategic, especially for customers developing voice-enabled Agentic AI offerings. For instance, growth with Verizon in this area was approximately 20% year-over-year in Q3 2025. Looking at the overall mix, 67% of the FY 2024 revenue was derived from high-margin Software & Services, which speaks to the agility and recurring nature of these cloud-native offerings. The company projects Q4 2025 revenue between $230 million and $250 million, with a non-GAAP gross margin target of 55% to 56%, showing confidence in the high-margin software mix.

Here's a quick look at the segment performance driving these value propositions:

The company ended Q3 2025 with $77 million in cash, up $14 million from the previous quarter. Finance: draft 13-week cash view by Friday.

Ribbon Communications Inc. (RBBN) - Canvas Business Model: Customer Relationships

You're looking at how Ribbon Communications Inc. (RBBN) locks in its revenue through deep, established customer ties. It's defintely not a transactional business; it's about long-term network evolution.

Dedicated, long-term relationships with Tier 1 Global Service Providers

Ribbon Communications Inc. focuses heavily on its largest telecom partners. Business with US Tier One Service Providers doubled in 2024, underpinned by a multi-year contract with Verizon for telecom voice infrastructure modernization. This relationship focus continues into 2025, as sales to service providers increased by 18% year-over-year in the second quarter of 2025. Year-to-date through Q3 2025, sales to Global Service Providers within the Cloud & Edge segment showed continued growth, increasing more than 8%.

High-touch, consultative sales for complex network modernization projects

The sales cycle here is consultative, focusing on large, complex network transformation programs. The company secured new contracts and expanded engagements with major carriers like Verizon and Bharti Airtel across multiple regions, all centered on network modernization. A key part of this consultative approach is the introduction of the Acumen AIOps platform, aimed at helping service providers and enterprises transition to autonomous networks. This is about selling the future state of the network, not just current hardware.

Contractual maintenance and support

The recurring revenue stream from contractual maintenance and support is a vital component of the relationship structure. In the second quarter of 2025, service revenue reached $105.5 million. This revenue stream is critical for stability, even as the company works through hardware shipment mixes. For instance, in Q2 2025, the non-GAAP gross margin was slightly affected by a higher mix of hardware shipments and professional services.

Here's a quick look at how the key customer-facing segments performed in recent quarters:

Direct sales team focused on U.S. Federal Government and critical infrastructure

Ribbon Communications Inc. maintains a direct sales focus on high-security and high-reliability sectors. The Cloud & Edge business saw strong demand from U.S. federal agencies in Q2 2025, with that business growing 24% year-over-year. However, this segment faced headwinds in Q3 2025; the recent U.S. Federal Government shutdown caused a minor impact on Q3 results and created a near-term timing issue on new purchases. The company also highlights involvement in critical infrastructure deployments, such as the Kerala Fiber Optic Network in India.

Finance: draft 13-week cash view by Friday.

Ribbon Communications Inc. (RBBN) - Canvas Business Model: Channels

You're looking at how Ribbon Communications Inc. gets its solutions-the software and IP optical gear-into the hands of its customers as of late 2025. The channel strategy balances direct engagement for the biggest deals with a broad partner ecosystem.

Direct sales force for large service providers and federal agencies

The direct sales force targets the largest accounts, which is evident in the segment performance. Sales to Global Service Providers are a key driver, with Cloud & Edge sales year to date (through Q3 2025) increasing more than 8%. Furthermore, the IP Optical Networks segment saw its sales grow 11% year over year in the third quarter of 2025. The U.S. Federal Government segment is also a direct target, though a recent shutdown created a near-term timing issue on new purchases in Q3 2025. The company's closing cash balance was $77 million as of the end of Q3 2025, supporting these large, complex sales cycles.

Global network of value-added resellers (VARs) and distributors

Ribbon Communications Inc. relies on its Partner Program, which supports solution resale, managed, or cloud services through Value Add Resellers (VARs). This indirect channel is significant for product revenue. For the full year 2024, revenue from indirect sales through channel partners accounted for 38% of product revenue, up from 35% in 2023. This growth in channel sales in 2024 reflected stronger IP Optical Networks deployments through systems integrators and service provider channel partners. The company maintains a global network of these partners to extend its reach.

Cloud marketplaces for software-centric solutions (e.g., AWS)

The shift toward software-centric, cloud-native offerings means marketplace presence is increasingly important. Ribbon Communications Inc. is actively deploying solutions on public clouds. For instance, Aircall is deploying a suite of Ribbon solutions, including SBC SWe and PSX, in the AWS cloud to enhance its global communications infrastructure. This deployment helps customers like Aircall reduce data-center CAPEX/OPEX and accelerate time-to-market. The company's overall revenue for the trailing twelve months ending Q3 2025 was $868.59 million.

Strategic OEM agreements for product integration

Strategic agreements facilitate product integration and market access. The company engages deeply with customers, helping them modernize networks, which often involves deep integration or OEM-style relationships. A recent example of a strategic engagement is the partnership announced in April 2025 where Moratelindo selected Ribbon Communications Inc. to fulfill requirements for high capacity connectivity and automated infrastructure management. The company's net debt leverage ratio stood at 2.2 times at the end of Q3 2025.

Here's a quick look at the channel mix data points we have for product revenue:

The focus on service provider sales is a channel priority, as evidenced by the fact that sales to Service Providers increased more than 10% year over year in Q1 2025.

• Direct sales target: Global Service Providers and U.S. Federal agencies.
• Indirect channel focus: Value Add Resellers and systems integrators.
• Cloud deployment example: Aircall utilizing AWS for SBC SWe and PSX deployment.
• Partnership example: Moratelindo selection for submarine network capabilities.

Finance: review Q4 2025 revenue projection of $230 million to $250 million against channel performance by end of week.

Ribbon Communications Inc. (RBBN) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Ribbon Communications Inc. as of late 2025. Honestly, the company's strategy is clearly focused on three major, complex sectors that require high-reliability, secure communications and networking infrastructure. They are selling to the world's largest players in telecom, large corporations needing secure cloud setups, and government entities protecting critical assets.

Global Tier 1 Telecom Service Providers (e.g., Verizon, Bharti)

This group forms a bedrock of Ribbon Communications Inc.'s business, particularly within the IP Optical Networks segment. The focus here is on Network Modernization and increasing share of total spend, especially with the largest service providers globally. You see this reflected in the growth figures throughout 2025.

For instance, in the first quarter of 2025, sales to Service Providers increased more than 10% year over year. Momentum continued, as Q2 2025 saw service provider sales jump by 18% year-over-year. By the third quarter of 2025, sales to Global Service Providers continued to grow, supporting the 11% year-over-year sales increase in the IP Optical Networks segment for that quarter.

Ribbon Communications Inc. is actively engaged with major names in this space. Key North American customers mentioned include Verizon. Internationally, strong performance in India was noted, with sales there up over 40% versus the prior year, citing traditional customers like Bartiierel (Bharti) and Vodafone, alongside a new win expanding broadband into rural India.

Here's a quick look at the segment performance trends we saw through the first three quarters of 2025:

The company is also leveraging its IP Routing portfolio to increase its share of total spend with these providers.

Large Enterprises requiring secure cloud communications

The Enterprise segment, often served through the Cloud & Edge portfolio, is focused on secure Voice Over IP (VoIP) solutions and cloud collaboration communications applications. This segment is vital for Ribbon Communications Inc.'s strategy around cloud-native architectures and Agentic AI capabilities.

Enterprise sales showed solid performance in mid-2025, with sales increasing 7% year-over-year in the second quarter. The year-to-date growth for Cloud & Edge sales was reported at more than 8% as of Q3 2025. Cloud & Edge sales specifically grew by approximately 6% year-over-year in Q1 2025, with product and services sales increasing by 17%.

Ribbon Communications Inc. secured notable deals in Q3 2025 that highlight this focus:

• A major SaaS company began using Ribbon's cloud-native Session Border Controllers (SBCs).
• A partnership was announced with IBM's Watson AI platform.
• The launch of the Acumen AIOps platform, designed to help enterprises transition to autonomous networks, was announced with initial deployment at a leading U.S. service provider.

If onboarding for enterprise clients takes 14+ days, churn risk rises, so speed to deployment on these secure cloud solutions is defintely key.

Critical Infrastructure Operators (e.g., utility companies)

Critical infrastructure operators are explicitly named as a core customer base for Ribbon Communications Inc., alongside service providers and enterprises. The value proposition here centers on modernizing and safeguarding their networks and services.

While specific revenue attribution for this segment isn't broken out separately in the high-level financial summaries, the overall IP Optical Networks segment growth of 11% in Q3 2025 and the general focus on Network Transformation programs indicate this sector is actively investing. This customer group is also included in the broader category showing strong demand for solutions that support 5G Wireless and Fiber-To-The-Home broadband deployments.

U.S. Federal Government and Department of Defense (DoD)

The U.S. Federal Government and DoD represent a significant, though sometimes volatile, customer segment. Ribbon Communications Inc. is dedicated to providing solutions for voice modernization projects within this sector.

The business experienced near-term timing issues due to government activity in 2025:

• The recent U.S. Federal Government shutdown had a minor impact on Cloud & Edge third-quarter results and created a near-term timing issue on new purchases.
• Non-GAAP gross margin in Q3 2025 was slightly down due to lower software sales to U.S. government customers.
• Management anticipated the government shutdown would impact Q4 2025 results, assuming no new purchases from U.S. federal agencies that quarter.

Despite the timing volatility, progress is being made on existing commitments. Ribbon Communications Inc. expanded its portfolio of DISA JITC-Certified Solutions to support U.S. Department of Defense network deployments. Furthermore, sales in Q1 2025 were lower than expected due to the timing of two key Federal and Enterprise deals, which were already being fulfilled and recognized in the second quarter.

Ribbon Communications Inc. (RBBN) - Canvas Business Model: Cost Structure

You're looking at the core expenses that power Ribbon Communications Inc.'s operations as of late 2025. Honestly, these numbers show where the company is placing its bets, especially on future tech like AI and 5G.

Significant Research and Development (R&D) investment in AI and 5G technology is a major cost driver. For the three months ended in Q3 2025, Research and Development expenses were reported at approximately $134.16 million. This spending directly supports the innovation pipeline, evidenced by the recent launch and initial deployment of the Acumen AIOps platform, which is designed to help service providers move toward autonomous networks. This R&D spend is critical for maintaining relevance in the evolving landscape that includes 5G and AI integration.

The Cost of Goods Sold (COGS) for IP Optical hardware and components is embedded within the total Cost of Revenue. Based on the reported Q3 2025 GAAP Gross Margin of 50.1% on $215 million in revenue, the total Cost of Revenue for the quarter was roughly $107.29 million. While a specific breakdown for just IP Optical hardware isn't public, this cost base is being managed while the IP Optical Networks segment itself grew sales by 11% year-over-year in the quarter, driven by strong demand in EMEA and India.

Global sales and marketing expenses to drive new logo wins represent another significant outlay. For the same three-month period in Q3 2025, Sales and Marketing expenses totaled about $97.39 million. This spending fuels the effort to expand market share, particularly with global service providers and enterprise customers, as the company pushes its entire portfolio.

Operating expenses management is a key focus area for the leadership team. The CFO noted strong discipline, even while absorbing external pressures. Specifically, Q3 2025 operating expenses included foreign exchange headwinds of approximately $3 million. Total operating expenses for the three months ended in Q3 2025, combining R&D, Sales & Marketing, and General & Administrative (which was $48.13 million), totaled around $279.67 million.

Personnel costs for specialized software and network engineers are a core component of both R&D and service delivery. Ribbon Communications has publicly stated it believes it has a unique employee talent pool in this area, knowledge that spans multiple generations of voice and data networking, which is considered an important differentiator. The company also planned to invest more in its Professional Services capabilities, which rely heavily on this specialized staff.

Here's a quick look at the major expense categories for the three months ended in Q3 2025, using the explicitly detailed figures:

The cost structure also includes other key elements that impact the bottom line:

• Amortization of acquired technology for the period was $15.72 million.
• General and Administrative expenses were approximately $48.13 million for the quarter.
• Interest expense, including debt issuance cost amortization, was $12 million in the quarter.

Finance: draft 13-week cash view by Friday.

Ribbon Communications Inc. (RBBN) - Canvas Business Model: Revenue Streams

You're looking at how Ribbon Communications Inc. actually brings in the money, which is key to understanding their valuation. The revenue model is clearly shifting toward more predictable, higher-margin sources, even as the core IP Optical Networks segment continues to contribute. This mix is what management is betting on for margin expansion.

The full-year financial targets for 2025 show a clear focus on profitability improvement alongside top-line growth. Ribbon Communications projects total 2025 revenue to land between $870 million and $890 million. That growth is expected to flow through to the bottom line, with Adjusted EBITDA for 2025 projected to be between $130 million and $140 million.

The revenue streams are fundamentally split across two main areas: the established IP Optical Networks and the growing Cloud & Edge business. The company is actively pushing for a higher proportion of recurring and software-based revenue, which typically carries better margins than pure hardware sales.

Here's a look at the key financial expectations and recent performance indicators that shape these revenue streams:

• Total 2025 revenue projected to be in the $870 million to $890 million range.
• Adjusted EBITDA for 2025 projected between $130 million and $140 million.
• The company targets recurring maintenance and professional services revenue contributing to an approximate 67% high-margin software/services component.
• IP Optical Networks sales saw year-over-year growth of 11% in the third quarter of 2025.
• Cloud & Edge sales year to date have increased more than 8% as of the third quarter of 2025.

The revenue mix is critical here. While the IP Optical Networks segment still involves significant product sales from hardware-think high-performance optical communication systems for data transport-the growth engine is the Cloud & Edge segment, which is heavily weighted toward software and services. For context, based on Fiscal Year 2024 figures, the mix was approximately 46% service-based revenue versus 54% product revenue, but the 2025 strategy is clearly aimed at flipping that ratio.

You can see the recent momentum in the third quarter of 2025 results, which gives us a snapshot of the current revenue flow:

Product sales from the IP Optical Networks segment are a foundational revenue stream, providing the necessary cash flow to support ongoing development. This segment's revenue comes from selling hardware like highly scalable routing and switching platforms and optical communication systems. However, the real margin upside is tied to the high-margin software licenses and subscriptions coming from the Cloud & Edge segment. This includes the recurring revenue from software-centric, cloud-native offerings and associated professional services.

The recurring maintenance and professional services revenue stream is the glue that binds the hardware and software sales, providing stability. This revenue supports deployment, maintenance, and ongoing support for the installed base of Session Border Controllers and other network transformation solutions. The company's stated goal of achieving an approximate 67% mix of high-margin software and services revenue underscores the strategic importance of these recurring streams over one-time hardware transactions.

Finance: draft 13-week cash view by Friday.