A month has gone by since the last earnings report for ADTRAN Holdings (ADTN Quick QuoteADTN - Free Report) . Shares have added about 16.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is ADTRAN Holdings due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for ADTRAN Holdings, Inc. before we dive into how investors and analysts have reacted as of late.

ADTRAN Misses Q2 Earnings Estimates Despite Higher Revenues
 
ADTRAN reported mixed second-quarter 2025 results, with the top line surpassing the Zacks Consensus Estimate but the bottom line missing the same.

The company recorded a top-line expansion year over year, driven by solid demand trends in both segments. Management’s focus on cost optimization and enhancing its operating model to ensure higher long-term shareholder returns is positive. However, macroeconomic headwinds are worrisome. 

Net Income

On a GAAP basis, net loss in the June quarter was $20.5 million or a loss of 24 cents per share compared with a net loss of $49.7 million or a loss of 63 cents per share in the prior-year quarter. The narrower loss was attributable to top-line growth.

Non-GAAP net loss was $0.3 million or a loss of 0.3 cents compared with a net loss of $9.9 million or a loss of 13 cents per share a year ago. The bottom line missed the Zacks Consensus Estimate of earnings of 1 cent.

Revenues

Quarterly total revenues improved to $265.1 million from $226 million in the prior-year quarter, driven by diligent execution of operational plans and increasing demand for state-of-the-art solutions for cloud, AI and edge computing. ADTRAN witnessed growth across all major revenue categories and gained market share in key areas. The top line beat the consensus estimate of $257 million.

Network Solutions contributed $219.5 million in revenues compared with $179.2 million in the prior-year quarter. Services and Support revenues were $45.6 million, marginally down from $46.8 million in the year-earlier quarter.

Other Details

Non-GAAP gross margin in the reported quarter was 41.4% compared with 41.8% in the prior-year quarter. Non-GAAP operating income was $8 million compared with $1.4 million in the year-ago quarter.

Cash Flow & Liquidity

In the first six months of 2025, ADTRAN generated $75.3 million of cash from operating activities compared with $57.8 million in the prior-year period. As of June 30, 2025, the company had $106.3 million in cash and cash equivalents compared with $27.8 million of non-current lease obligations.

Outlook

For the third quarter of 2025, ADTRAN expects revenues in the range of $270-$280 million. Non-GAAP operating margin is expected to be in the band of 3% to 7%.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

Currently, ADTRAN Holdings has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

ADTRAN Holdings has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.