Ribbon Communications (RBBN) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Ribbon Communications

NasdaqGS•Technology•Software - Application

$1.83-0.18(-0.09%)Pre-market

Market Cap

$304.87M

P/E

19.5x

P/S

0.4x

P/B

0.8x

Ribbon Communications Inc. provides communications technology in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It operates through two segments, Cloud and Edge, and IP Optical Networks. The Cloud and Edge segment provides software and hardware products, solutions, and services for voice over internet protocol communications, voice over long-term evolution, and voice over 5G communications, and unified communications and collaboration. It also offers session border controllers; and network transformation products, such as call controllers, media gateways, and application servers. This segment serves private, public, hybrid cloud infrastructures, as well as data centers, enterprise premises, and service provider networks. The IP Optical Networks segment provides hardware and software products and solutions for IP networking, switching, routing, and optical transport for technologies comprising 5G, distributed cloud computing, and corresponding applications. It also offers multiple solutions, including 5G-native solutions for mobile-backhaul, metro and edge aggregation, core networking, data center interconnect, multi-service access, and transport solutions for wholesale carriers. This segment serves utilities, government, defense, finance, transportation, and education and research industries, as well as service providers and enterprises. The company was formerly known as Sonus Networks, Inc. and changed its name to Ribbon Communications Inc. in November 2017. Ribbon Communications Inc. was founded in 1997 and is headquartered in Plano, Texas.

How this company scores

AverageMetricSide Score: 48/100

Strongest: Growth (14/25); weakest: Cash & Earnings Quality (9/25).

Profitability11/25

Growth14/25

Balance Sheet & Red Flags14/25

Cash & Earnings Quality9/25

Strengths

Rising earningsProfit converts from growthImproving margins

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 19.5x5y range 11.6x – 20.6x

Currently near its 4-quarter median.

P/S · 0.4x5y range 0.4x – 1.1x

Currently below its 20-quarter median.

P/B · 0.8x5y range 0.8x – 1.9x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 628.5% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Red Flag

Free cash flow has been negative in 5 of the last 8 quarters — earnings are not translating to cash.

Price & Volume

Market Cap $304.87M

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $797.64M
Q. Revenue: $192.34M
TTM EBITDA: $27.71M
TTM Op. Income: $-31.85M
Q. Op. Income: $-12.22M
TTM Net Income: $15.60M
Q. Net Income: $-26.87M
EPS: $-0.15
Shares Out.: $177.25M

$797.64M in TTM revenue declined 7.6% YoY, reaching $192.34M last quarter. TTM EBITDA of $27.71M and TTM operating income of $-31.85M show growth is flowing through to the bottom line. TTM net income of $15.60M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has fallen for 3 consecutive quarters — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 47.0%
EBITDA Margin: 1.2%
Op. Margin: -6.4%
Net Margin: -14.0%

Op. margin of -6.4% is down 8.3% YoY — costs are rising relative to revenue. Net margin at -14.0% and gross margin of 47.0% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 432% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 19.5x
P/S Ratio: 0.4x
P/B Ratio: 0.8x

At 19.5x P/E, the stock trades within typical market levels. P/S of 0.4x and P/B of 0.8x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is up 0% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $1.14B
Cash: $43.51M
Long-Term Debt: $320.61M
Book Value: $392.57M
D/E Ratio: 0.8
Debt/EBITDA: 139.3

With $1.14B in assets and $320.61M in long-term debt, D/E is 0.8and book value is $392.57M — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has risen for 2 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $-11.50M
TTM Free Cash Flow: $7.35M
FCF Margin: 0.9%
FCF / Net Income: 0.5

TTM FCF of $7.35M on $-11.50M in operating cash flow. The FCF / Net Income ratio of 0.5x means cash covers only part of net income — earnings quality needs attention. Across the last 8 quarters, free cash flow has fallen for 3 consecutive quarters — a weakening trend.