ADTN Nasdaq Earnings call
ADTRAN Holdings, Inc. (ADTN) · Q2 2026 results and valuation
Share price: $4.69 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 4 Aug 2026 and 5 May 2026
Net loss widened on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
Loss widened
Net income vs Q1 2026
Net income -10.9M vs -1.3M
Revenue −1.7%
Net income -10.9M vs -20.5M in Q2 2025 and -1.3M last quarter.
2 · How management spoke
Typical
Less upbeat than 57% of company calls
Answers to analysts: cautious, in line with the script.
Similar to last call.
3 · What stood out
Key theme
Subscriber Solutions revenue was $84.5 million or 30% of total revenue, which was down 14% sequentially from the previous quarter.
Valuation
Is ADTRAN Holdings, Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 1.9% growth a year (3-year revenue growth), the model's fair value is $16.05 a share — the stock trades 71% below it. Today's price assumes −17.5% growth a year.
Current price
$4.69
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-17.5% for 10 yrs
Fair value / share
$16.05
Buy below
$12.04
Price vs fair value
Undervalued 71%
Price vs buy-below price
Undervalued 61%
Read between the lines
-
Figure
Revenue from enterprise, government, and cloud customers grew 19% sequentially and 47% year-over-year, accounting for 25% of total revenue.
Source quote
“Revenue from enterprise, government and cloud customers grew a strong 47% year-over-year and 19% sequentially, accounting for 25% of total...”
-
Last period
Optical networking solutions revenue reached $97.3 million, representing 34% of total revenue and an increase of 24% year-over-year.
Source quote
“Optical networking solutions revenue was $97.3 million or 34% of total revenue, up 24% year-over-year. Subscriber solutions revenue was $98.2 million or 34% of total revenue, up 22% year-over-year. Turning to gross margin.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“We continue to gain momentum in optical networking, further diversifying our customer base and see a clear path forward towards improving profitability.”
“Within our Service Provider segment, we continue to unlock opportunities driven by vendor replacement programs, network modernization initiatives, broadband expansion efforts and increasing security requirements.”
“But we're continuing to hold out for the best deal and the best opportunity for the company.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 281.1M | 286.1M | −1.7% | 265.1M | +6.1% |
| Gross profit | 104.0M | 113.0M | −8.0% | 98.9M | +5.1% |
| Operating income | -10.1M | 6.4M | Turned loss | -13.3M | Loss narrowed |
| Net income | -10.9M | -1.3M | Loss widened | -20.5M | Loss narrowed |
| EPS | -0.13 | -0.01 | Loss widened | -0.24 | Loss narrowed |
| P/E | 12-mo loss | 12-mo loss | — | 12-mo loss | — |
Topics
Most discussed now
- New Some of the higher gross margin products were also just limited in supply.
- New Adtran had envisioned on its basically historical profile of getting into that double digits right around the low-300s, say, somewhere...
- Gross margin reflected the factors Tom discussed earlier, primarily the combination of product mix, customer mix and higher product costs.
- As Adtran continues to actively manage operating expenses related costs against inflationary pressures.
- Adtran has had over 2 years, almost 3 years now of raising gross margins pretty much every quarter over any significant...
Faded since Q1 2026
- Dropped I would expect that to be sometime about a year from now before Adtran really kind of hit production level...
- Fading Adtran had operating margin expansion to a new level despite a seasonal reduction in revenues that remained above the midpoint...
- Fading Adtran delivered solid results for Q1 2026 led by continued and consistent execution.
- Fading I probably I'm going to shy a little bit away from pricing on the product, although there is a lot...
Latest announcements
Official filings, newest first.
- Director or officer change · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Material agreement; Agreement terminated; New financial obligation · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change; Other events · SEC 8-K
- Articles or bylaws amended; Shareholder vote results · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K