Ciena Reports Fiscal Fourth Quarter 2025 and Year-End Financial Results

Key Terms

EBITDA financial

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

Adjusted EBITDA financial

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-GAAP financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

Summary

• Fiscal fourth quarter 2025 revenue was $1.35 billion, up 20% year-over-year
• Fiscal year 2025 revenue was $4.77 billion, up 19% year-over-year
• Providing guidance for revenue in the range of $1.35 billion to $1.43 billion for the first fiscal quarter of 2026 and $5.7 billion to $6.1 billion for fiscal year 2026

HANOVER, Md.--(BUSINESS WIRE)-- Ciena^® Corporation (NYSE: CIEN) today announced financial results for its fiscal fourth quarter and year ended November 1, 2025.

"Our record fiscal fourth quarter and full-year performance reinforces our position as the global leader in high-speed connectivity with an expanding role in the AI ecosystem," said Gary Smith, president and CEO, Ciena. "Looking ahead, we are confident in our growth trajectory over the coming years, driven by durable demand from our cloud and service provider customers and a growing set of opportunities inside and around the data center."

Performance Summary for Fiscal Fourth Quarter and Year Ended November 1, 2025

Revenue:

• $1.35 billion in the fiscal fourth quarter 2025, compared to $1.12 billion in the fiscal fourth quarter 2024
• $4.77 billion in fiscal year 2025, compared to $4.01 billion in the fiscal year 2024

Net Income per diluted share:

• $0.13 GAAP and $0.91 adjusted (non-GAAP) for the fiscal fourth quarter 2025, compared to $0.25 and $0.54 for fiscal fourth quarter 2024, respectively
• $0.85 GAAP and $2.64 adjusted (non-GAAP) for fiscal year 2025, compared to $0.58 and $1.82 for fiscal year 2024, respectively

The tables below (in millions, except percentage data) provide comparisons of certain quarterly and annual results. Appendices A and B set forth reconciliations between the GAAP and adjusted (non-GAAP) measures contained in this release.

		GAAP Results (unaudited)											Non-GAAP Results (unaudited)
		Quarter Ended								Period			Quarter Ended								Period
		November 1,				November 2,				Change			November 1,				November 2,				Change
		2025				2024				Y-T-Y*			2025				2024				Y-T-Y*
Revenue		$	1,352.0			$	1,124.1			20.3	%		$	1,352.0			$	1,124.1			20.3	%
Gross margin			42.7	%			40.9	%		1.8	%			43.4	%			41.6	%		1.8	%
Operating expense		$	566.7			$	400.8			41.4	%		$	408.7			$	354.9			15.2	%
Operating margin			0.8	%			5.3	%		(4.5	)%			13.2	%			10.0	%		3.2	%
EBITDA		$	47.8			$	93.0			(48.6	)%		$	205.5			$	136.7			50.3	%

		GAAP Results (unaudited)											Non-GAAP Results (unaudited)
		Year Ended								Period			Year Ended								Period
		November 1,				November 2,				Change			November 1,				November 2,				Change
		2025				2024				Y-T-Y*			2025				2024				Y-T-Y*
Revenue		$	4,769.5			$	4,014.9			18.8	%		$	4,769.5			$	4,014.9			18.8	%
Gross margin			42.0	%			42.8	%		(0.8	)%			42.7	%			43.6	%		(0.9	)%
Operating expense		$	1,807.4			$	1,553.0			16.4	%		$	1,505.8			$	1,361.7			10.6	%
Operating margin			4.1	%			4.1	%		—	%			11.2	%			9.7	%		1.5	%
EBITDA		$	337.9			$	300.1			12.6	%		$	636.7			$	481.0			32.4	%

* Denotes % change, or in the case of margin, absolute change

Business Outlook

"Our results reflect Ciena’s market momentum within a strong demand environment and our commitment to financial discipline, delivering strong top and bottom line performance that exceeded our guidance for the fourth quarter,” said Marc Graff, CFO of Ciena. “With our growing operating leverage and strong cash generation and balance sheet, we are well-positioned to deliver value for our customers and shareholders in 2026."

Ciena expects fiscal year 2026 to include:

• Revenue in the range of $5.7 billion to $6.1 billion
• Adjusted (non-GAAP) gross margin of 43% plus or minus 1%
• Adjusted (non-GAAP) operating expense of approximately $1.52 billion
• Adjusted (non-GAAP) operating margin of 17% plus or minus 1%

Ciena expects fiscal first quarter 2026 to include:

• Revenue in the range of $1.35 billion to $1.43 billion
• Adjusted (non-GAAP) gross margin between 43% to 44%
• Adjusted (non-GAAP) operating expense of approximately $380 million
• Adjusted (non-GAAP) operating margin between 15.5% and 16.5%

Statements relating to business outlook are forward-looking in nature and actual results may differ materially. These statements should be read in the context of the “Economic considerations and assumptions” in our accompanying Earnings Presentation and each of the "Forward-Looking Statements" and "Reconciliation of Adjusted (Non- GAAP) Measurements" found in the Notes to Investors below.

Financial Highlights

• Three customers represented 10%-plus of revenue for a total of 43.6% of revenue for the fiscal fourth quarter 2025.
• Two customers represented 10%-plus of revenue for a total of 28.4% of revenue for the fiscal year 2025.
• Average days' sales outstanding (DSOs) were 77 and 88 for the fiscal fourth quarter and the fiscal year 2025, respectively.
• Product inventory turns were 3.1 and 2.7 for the fiscal fourth quarter and the fiscal year 2025, respectively.
• Repurchased approximately 0.7 million and 4.0 million shares of common stock for an aggregate price of $84.5 million and $329.7 million during fiscal fourth quarter and fiscal year 2025, respectively.

Financial Performance by Segment

		Revenue by Segment (unaudited)
		Quarter Ended
		November 1, 2025					November 2, 2024
		Revenue			%**		Revenue			%**
Networking Platforms
Optical Networking		$	929.2		68.7		$	779.6		69.4
Routing and Switching			118.4		8.8			79.4		7.0
Total Networking Platforms			1,047.6		77.5			859.0		76.4
Platform Software and Services			93.3		6.9			99.6		8.9
Blue Planet Automation Software and Services			33.8		2.5			23.5		2.1
Global Services 1
Maintenance, Support, and Learning			82.5		6.1			77.2		6.9
Implementation			74.3		5.5			51.4		4.5
Advisory and Enablement			20.5		1.5			13.4		1.2
Total Global Services			177.3		13.1			142.0		12.6
Total		$	1,352.0		100.0		$	1,124.1		100.0

		Revenue by Segment (unaudited)
		Year Ended
		November 1, 2025					November 2, 2024
		Revenue			%**		Revenue			%**
Networking Platforms
Optical Networking		$	3,246.3		68.1		$	2,642.6		65.8
Routing and Switching			430.1		9.0			399.5		10.0
Total Networking Platforms			3,676.4		77.1			3,042.1		75.8
Platform Software and Services			363.8		7.6			358.0		8.9
Blue Planet Automation Software and Services			115.5		2.4			77.6		2.0
Global Services 1
Maintenance, Support, and Learning			317.2		6.7			303.1		7.5
Implementation			246.1		5.2			184.3		4.6
Advisory and Enablement			50.5		1.0			49.8		1.2
Total Global Services			613.8		12.9			537.2		13.3
Total		$	4,769.5		100.0		$	4,014.9		100.0

** Denotes % of total revenue

1 Effective as of the fourth quarter of fiscal 2025, Ciena renamed (i) its "Maintenance Support and Training" product line to "Maintenance, Support, and Learning", (ii) its "Installation and Deployment" product line to "Implementation", and (iii) its "Consulting and Network Design" product line to "Advisory and Enablement". These changes, affecting only the presentation of such information, were made on a prospective basis and do not impact comparability of previous financial results. However, the references to the prior reported product lines have been changed herein to the new names above.

Supplemental Materials and Live Web Broadcast of Unaudited Fiscal Fourth Quarter 2025 Results

Today, Thursday, December 11, 2025, in conjunction with this announcement, Ciena has posted to the Quarterly Results page of the Investor Relations section of its website certain related supporting materials for its unaudited fiscal fourth quarter 2025 results.

Ciena's management will also host a discussion today with investors and financial analysts that will include the Company's outlook. The live audio web broadcast beginning at 8:30 a.m. Eastern will be accessible via www.ciena.com. An archived replay of the live broadcast will be available shortly following its conclusion on the Investor Relations page of Ciena's website.

Notes to Investors

Forward-Looking Statements. You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission ("SEC") filings, recent news, financial results, supplemental financial information, and other announcements. From time to time we exclusively post material information to this website along with other disclosure channels that we use. This press release contains certain forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, forecasts, assumptions and other information available to the Company as of the date hereof. Forward-looking statements include statements regarding Ciena's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. Forward-looking statements in this release include the statements in the "Summary" and "Business Outlook" sections of this press release and "Our record fiscal fourth quarter and full-year performance underscores our focused execution and solidifies our position as a global leader in high-speed connectivity with an expanding role in the evolving AI ecosystem. Looking ahead, we are increasingly confident in our growth trajectory over the coming years, driven by accelerating, durable demand from our cloud and service provider customers and a growing set of opportunities inside and around the data center." and “With our growing operating leverage, and strong cash generation and balance sheet, we are well-positioned to deliver value for our customers and shareholders in 2026."

Ciena's actual results, performance or events may differ materially from these forward-looking statements made or implied due to a number of risks and uncertainties relating to Ciena's business, including: the effect of broader economic and market conditions on our business and that of our customers, including their spending; the development and use of artificial intelligence and its impact on overall networking technology spending; our ability to execute our business and growth strategies; supply chain constraints or disruptions including increased costs and lead times; the introduction of new technologies by us or our competitors; the timing and size of customer orders, their delivery dates and our ability to recognize revenue relating to such sales; the level of competitive pressure we encounter; the product, customer and geographic mix of sales within the period; changes in foreign currency exchange rates; factors beyond our control such as natural disasters, climate change, acts of war or terrorism, geopolitical tensions or events, and public health emergencies, epidemics, or pandemics; changes in tax or trade regulations, including the imposition of tariffs, duties or efforts to withdraw from or materially modify international trade agreements; cyberattacks, data breaches or other security incidents involving our enterprise network environment or our products; regulatory changes, litigation involving our intellectual property or government investigations; and the other risk factors disclosed in Ciena’s periodic reports filed with the Securities and Exchange Commission (SEC) including Ciena's Quarterly Report on Form 10-Q filed with the SEC on September 4, 2025 and its Annual Report on Form 10-K to be filed with the SEC. Ciena assumes no obligation to update any forward-looking information included in this press release.

Non-GAAP Presentation of Quarterly and Annual Results. This release includes non-GAAP measures of Ciena's gross profit, operating expense, income from operations, earnings before interest, tax, depreciation and amortization (EBITDA), Adjusted EBITDA, and measures of net income and net income per share. In evaluating the operating performance of Ciena's business, management excludes certain charges and credits that are required by GAAP. These items share one or more of the following characteristics: they are unusual and Ciena does not expect them to recur in the ordinary course of its business; they do not involve the expenditure of cash; they are unrelated to the ongoing operation of the business in the ordinary course; or their magnitude and timing is largely outside of Ciena's control. Management believes that the non-GAAP measures below provide management and investors useful information and meaningful insight to the operating performance of the business. The presentation of these non-GAAP financial measures should be considered in addition to Ciena's GAAP results and these measures are not intended to be a substitute for the financial information prepared and presented in accordance with GAAP. Ciena's non-GAAP measures and the related adjustments may differ from non-GAAP measures used by other companies and should only be used to evaluate Ciena's results of operations in conjunction with our corresponding GAAP results. To the extent not previously disclosed in a prior Ciena financial results press release, Appendices A and B to this press release set forth a complete GAAP to non-GAAP reconciliation of the non-GAAP measures contained in this release.

With respect to Ciena’s expectations under “Business Outlook" above, Ciena is not able to provide a quantitative reconciliation of the adjusted (non-GAAP) gross margin and adjusted (non-GAAP) operating expense guidance measures to the corresponding gross profit and gross profit percentage, and operating expense GAAP measures without unreasonable efforts. Ciena cannot provide meaningful estimates of the non-recurring charges and credits excluded from these non-GAAP measures due to the forward-looking nature of these estimates and their inherent variability and uncertainty. For the same reasons, Ciena is unable to address the probable significance of the unavailable information.

About Ciena. Ciena (NYSE: CIEN) is the global leader in high-speed connectivity. We build the world’s most adaptive networks to support exponential growth in bandwidth demand. By harnessing the power of our networking systems, interconnects, automation software, and services, Ciena revolutionizes data transmission and network management. With unparalleled expertise and innovation, we empower our customers, partners, and communities to thrive in the AI era. For updates on Ciena, follow us on LinkedIn, X, the Ciena Insights blog, or visit www.ciena.com.

CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
	Quarter Ended								Year Ended
	November 1,				November 2,				November 1,				November 2,
	2025				2024				2025				2024
Revenue:
Products	$	1,092,451			$	892,425			$	3,822,618			$	3,159,021
Services		259,533				231,687				946,889				855,934
Total revenue		1,351,984				1,124,112				4,769,507				4,014,955
Cost of goods sold:
Products		630,150				545,580				2,250,966				1,861,317
Services		144,655				118,510				513,624				434,048
Total cost of goods sold		774,805				664,090				2,764,590				2,295,365
Gross profit		577,179				460,022				2,004,917				1,719,590
Operating expenses:
Research and development		228,900				195,960				848,329				767,497
Selling and marketing		156,420				136,919				581,331				510,668
General and administrative		67,257				58,143				238,707				220,647
Significant asset impairments and restructuring costs		106,851				2,605				112,113				24,592
Amortization of intangible assets		6,112				7,185				25,758				29,569
Acquisition and integration costs		1,148				—				1,148				—
Total operating expenses		566,688				400,812				1,807,386				1,552,973
Income from operations		10,491				59,210				197,531				166,617
Interest and other income, net		14,349				13,801				48,888				50,261
Interest expense		(21,982	)			(24,990	)			(89,403	)			(97,028	)
Loss on extinguishment and modification of debt		—				—				(729	)			—
Income before income taxes		2,858				48,021				156,287				119,850
Provision (benefit) for income taxes		(16,631	)			10,993				32,949				35,894
Net income	$	19,489			$	37,028			$	123,338			$	83,956
Net Income per Common Share
Basic net income per common share	$	0.14			$	0.26			$	0.87			$	0.58
Diluted net income per potential common share	$	0.13			$	0.25			$	0.85			$	0.58
Weighted average basic common shares outstanding		141,527				144,240				142,221				144,715
Weighted average dilutive potential common shares outstanding1		145,470				146,487				145,248				145,964

1 Weighted average dilutive potential common shares outstanding used in calculating GAAP diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 3.9 million and 3.0 million for the fourth quarter and year ended fiscal 2025, respectively; and (ii) 2.2 million and 1.2 million for the fourth quarter and year ended fiscal 2024, respectively.

CIENA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
		November 1, 2025				November 2, 2024
ASSETS
Current assets:
Cash and cash equivalents		$	1,091,952			$	934,863
Short-term investments			216,148				316,343
Accounts receivable, net			975,856				908,597
Inventories, net			826,235				820,430
Prepaid expenses and other			455,316				564,183
Total current assets			3,565,507				3,544,416
Long-term investments			57,142				80,920
Equipment, building, furniture and fixtures, net			386,779				337,722
Operating lease right-of-use assets			38,613				27,417
Goodwill			521,204				444,707
Other intangible assets, net			224,210				165,020
Deferred tax asset, net			884,889				886,441
Other long-term assets			186,323				154,694
Total assets		$	5,864,667			$	5,641,337
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	542,841			$	423,401
Accrued liabilities and other short-term obligations			531,081				393,905
Deferred revenue			208,936				156,379
Operating lease liabilities			13,956				14,455
Current portion of long-term debt			11,580				11,700
Total current liabilities			1,308,394				999,840
Long-term deferred revenue			94,850				81,240
Other long-term obligations			175,426				185,938
Long-term operating lease liabilities			32,516				25,107
Long-term debt, net			1,524,158				1,533,074
Total liabilities			3,135,344				2,825,199
Stockholders’ equity:
Preferred stock – par value $0.01; 20,000,000 shares authorized; zero shares issued and outstanding			—				—
Common stock – par value $0.01; 290,000,000 shares authorized; 141,016,300 and 142,656,116 shares issued and outstanding			1,410				1,427
Additional paid-in capital			5,953,057				6,154,869
Accumulated other comprehensive loss			(55,035	)			(46,711	)
Accumulated deficit			(3,170,109	)			(3,293,447	)
Total stockholders’ equity			2,729,323				2,816,138
Total liabilities and stockholders’ equity		$	5,864,667			$	5,641,337

CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
		Year Ended
		November 1,				November 2,
		2025				2024
Cash flows provided by operating activities:
Net income		$	123,338			$	83,956
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements			104,133				92,846
Abandonment of acquired in-process research and development			89,100				—
Share-based compensation expense			184,525				156,404
Amortization of intangible assets			36,205				40,624
Deferred taxes			(23,173	)			(76,810	)
Provision for inventory excess and obsolescence			48,424				77,341
Provision for warranty			24,442				25,643
Other			(736	)			11,768
Changes in assets and liabilities:
Accounts receivable			(98,743	)			80,313
Inventories			(53,602	)			153,021
Prepaid expenses and other			86,204				(198,910	)
Operating lease right-of-use assets			11,613				11,837
Accounts payable, accruals and other obligations			226,486				64,255
Deferred revenue			63,760				9,884
Short and long-term operating lease liabilities			(15,883	)			(17,640	)
Net cash provided by operating activities			806,093				514,532
Cash flows used in investing activities:
Payments for equipment, furniture, and fixtures			(140,801	)			(136,641	)
Purchases of investments			(214,162	)			(287,536	)
Proceeds from sales and maturities of investments			348,579				140,836
Settlement of foreign currency forward contracts, net			(4,015	)			(1,454	)
Purchase of equity investments			—				(21,682	)
Acquisition of business, net of cash acquired			(231,100	)			—
Net cash used in investing activities			(241,499	)			(306,477	)
Cash flows used in financing activities:
Proceeds for modification of debt, net			19,175				—
Cash paid for extinguishment of debt			(19,175	)			—
Payment of long term debt			(11,580	)			(11,700	)
Payment of debt issuance costs			(12	)			(2,554	)
Payment of finance lease obligations			(4,380	)			(4,029	)
Shares repurchased for tax withholdings on vesting of stock unit awards			(91,315	)			(46,567	)
Repurchases of common stock - repurchase program, net			(334,507	)			(254,502	)
Proceeds from issuance of common stock			35,876				34,291
Net cash used in financing activities			(405,918	)			(285,061	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(1,505	)			1,246
Net increase (decrease) in cash, cash equivalents and restricted cash			157,171				(75,760	)
Cash, cash equivalents and restricted cash at beginning of period			935,026				1,010,786
Cash, cash equivalents and restricted cash at end of period		$	1,092,197			$	935,026
Supplemental disclosure of cash flow information
Cash paid during the period for interest, net		$	85,217			$	92,515
Cash paid during the period for income taxes, net		$	113,608			$	54,956
Operating lease payments		$	17,840			$	19,452
Non-cash investing and financing activities
Purchase of equipment in accounts payable		$	17,449			$	14,682
Repurchase of common stock in accrued liabilities from repurchase program, net		$	2,579			$	6,172
Operating right-of-use assets subject to lease liability		$	23,586			$	6,912

APPENDIX A - Reconciliation of Adjusted (Non- GAAP) Measurements
(in thousands, except per share data) (unaudited)
		Quarter Ended								Year Ended
		November 1,				November 2,				November 1,				November 2,
		2025				2024				2025				2024
Gross Profit Reconciliation (GAAP/non-GAAP)
GAAP gross profit		$	577,179			$	460,022			$	2,004,917			$	1,719,590
Share-based compensation-products			1,964				1,736				7,774				6,474
Share-based compensation-services			3,857				3,257				15,184				12,743
Amortization of intangible assets			3,750				2,764				10,447				11,055
Total adjustments related to gross profit			9,571				7,757				33,405				30,272
Adjusted (non-GAAP) gross profit		$	586,750			$	467,779			$	2,038,322			$	1,749,862
Adjusted (non-GAAP) gross profit percentage			43.4	%			41.6	%			42.7	%			43.6	%
Operating Expense Reconciliation (GAAP/non-GAAP)
GAAP operating expense		$	566,688			$	400,812			$	1,807,386			$	1,552,973
Share-based compensation-research and development			16,274				14,065				64,281				54,129
Share-based compensation-sales and marketing			13,543				11,168				52,066				42,954
Share-based compensation-general and administrative			13,248				10,842				45,424				40,053
Significant asset impairments and restructuring costs			106,851				2,605				112,113				24,592
Amortization of intangible assets			6,112				7,185				25,758				29,569
Acquisition and integration costs			1,148				—				1,148				—
Holdback arrangement			802				—				802				—
Total adjustments related to operating expense			157,978				45,865				301,592				191,297
Adjusted (non-GAAP) operating expense		$	408,710			$	354,947			$	1,505,794			$	1,361,676
Income from Operations Reconciliation (GAAP/non-GAAP)
GAAP income from operations		$	10,491			$	59,210			$	197,531			$	166,617
Total adjustments related to gross profit			9,571				7,757				33,405				30,272
Total adjustments related to operating expense			157,978				45,865				301,592				191,297
Total adjustments related to income from operations			167,549				53,622				334,997				221,569
Adjusted (non-GAAP) income from operations		$	178,040			$	112,832			$	532,528			$	388,186
Adjusted (non-GAAP) operating margin percentage			13.2	%			10.0	%			11.2	%			9.7	%
Net Income Reconciliation (GAAP/non-GAAP)
GAAP net income		$	19,489			$	37,028			$	123,338			$	83,956
Exclude GAAP provision (benefit) for income taxes			(16,631	)			10,993				32,949				35,894
Income before income taxes			2,858				48,021				156,287				119,850
Total adjustments related to income from operations			167,549				53,622				334,997				221,569
Loss on extinguishment and modification of debt			—				—				729				—
Adjusted income before income taxes			170,407				101,643				492,013				341,419
Non-GAAP tax provision on adjusted income before income taxes			37,490				22,361				108,243				75,112
Adjusted (non-GAAP) net income		$	132,917			$	79,282			$	383,770			$	266,307
Weighted average basic common shares outstanding			141,527				144,240				142,221				144,715
Weighted average dilutive potential common shares outstanding 1			145,470				146,487				145,248				145,964
Net Income per Common Share
GAAP diluted net income per potential common share		$	0.13			$	0.25			$	0.85			$	0.58
Adjusted (non-GAAP) diluted net income per potential common share		$	0.91			$	0.54			$	2.64			$	1.82

1 Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 3.9 million and 3.0 million for the fourth quarter and year ended fiscal 2025; and (ii) 2.2 million and 1.2 million for the fourth quarter and year ended fiscal 2024.

APPENDIX B - Calculation of EBITDA and Adjusted EBITDA
(in thousands) (unaudited)
		Quarter Ended							Year Ended
		November 1,				November 2,			November 1,			November 2,
		2025				2024			2025			2024
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
Net income (GAAP)		$	19,489			$	37,028		$	123,338		$	83,956
Add: Interest expense			21,982				24,990			89,403			97,028
Less: Interest and other income, net			14,349				13,801			48,888			50,261
Add: Loss on extinguishment and modification of debt			—				—			729			—
Add: Provision (benefit) for income taxes			(16,631	)			10,993			32,949			35,894
Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements			27,496				23,849			104,133			92,846
Add: Amortization of intangible assets			9,862				9,949			36,205			40,624
EBITDA		$	47,849			$	93,008		$	337,869		$	300,087
Add: Share-based compensation expense			48,886				41,068			184,729			156,353
Add: Significant asset impairments and restructuring costs			106,851				2,605			112,113			24,592
Add: Acquisition and integration costs			1,148				—			1,148			—
Add: Holdback arrangement			802				—			802			—
Adjusted EBITDA		$	205,536			$	136,681		$	636,661		$	481,032

* * *

The adjusted (non-GAAP) measures above and their reconciliation to Ciena's GAAP results for the periods presented reflect adjustments relating to the following items:

• Share-based compensation - a non-cash expense incurred in accordance with share-based compensation accounting guidance.
• Significant asset impairments and restructuring costs - non-recurring costs primarily reflecting expenses associated with significant impairment or abandonment of assets and actions Ciena has taken to restructure our business, including reductions in force, facility optimization, and the redesign of business processes. For the fiscal fourth quarter and fiscal year of 2025, this also includes a charge of $89.1 million related to the abandonment of an in-process R&D intangible asset.
• Amortization of intangible assets - a non-cash expense arising from the acquisition of intangible assets, principally developed technologies and customer-related intangibles, that Ciena is required to amortize over an expected useful life.
• Acquisition and integration costs - consists of financial, legal, and accounting advisors and employee-related costs related to our acquisition of Nubis Communications, Inc. during the fourth quarter of fiscal 2025.
• Holdback arrangement - reflects a one-time holdback of a portion of the merger consideration otherwise payable at closing to certain key employee shareholders of Nubis Communications, Inc. who became employees of Ciena, which is treated as contingent compensation for GAAP reporting purposes. These transaction-related amounts are not part of Ciena's standard compensation and benefits.
• Loss on extinguishment and modification of debt - reflects extinguishment and debt modification expenses related to refinancing our term loan during the first quarter of fiscal 2025.
• Non-GAAP tax provision - consists of current and deferred income tax expense commensurate with the level of adjusted income before income taxes and utilizes a current, blended U.S. and foreign statutory annual tax rate of 22.0% for all fiscal periods of fiscal 2025 and fiscal 2024. This rate may be subject to change in the future, including as a result of changes in tax policy or tax strategy. The Non-GAAP tax provision excludes the impact of a $21.6 million tax benefit in the fourth quarter of fiscal 2025 related to the expiration of the statute of limitations on previously uncertain tax positions.

 

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Press Contact: Jamie Moody

Ciena Corporation

+1 (214) 995-8035

pr@ciena.com



Investor Contact: Gregg Lampf

Ciena Corporation

+1 (410) 694-5700

ir@ciena.com

Source: Ciena Corporation