Ribbon Announces $50 Million Share Repurchase Program

Rhea-AI Summary

Ribbon Communications (RBBN) has announced a $50 million share repurchase program, effective from June 5, 2025 through December 31, 2027. The company reported strong performance in 2024, with earnings increasing by 30% and business with US Tier One Service Providers doubling, supported by a multi-year contract with Verizon. The buyback program reflects management's confidence in their strategic plan and will be funded through cash on hand or operational cash flow. The company maintains flexibility in executing purchases through open market, private transactions, or investment banking institutions. CEO Bruce McClelland highlighted significant growth in Enterprise and U.S. Federal agency business, positive book-to-bill ratio, and growing backlog as indicators of improved business visibility.

Positive

• $50 million share repurchase program demonstrates confidence in company's future
• Earnings increased by 30% in 2024, reaching high end of guidance
• Business with US Tier One Service Providers doubled in 2024
• Secured multi-year contract with Verizon for telecom infrastructure modernization
• Growing backlog and positive book-to-bill ratio indicate strong business momentum
• Significant growth in Enterprise and U.S. Federal agency business

Negative

• None.

Insights

Financial Analyst

Ribbon's $50M buyback signals management confidence backed by strong performance metrics and improving cash flow generation.

Ribbon's newly announced $50 million share repurchase program represents a strategic capital allocation decision that signals management's confidence in the company's intrinsic value and future prospects. The program, extending through December 2027, provides the company with significant flexibility in timing and execution.

The announcement comes on the heels of impressive operational momentum. Business with U.S. Tier One Service Providers doubled in 2024, anchored by a multi-year Verizon contract. This expansion in high-quality, recurring revenue streams from major telecom carriers provides improved revenue visibility and stability. Additionally, the company's growing penetration in both Enterprise and U.S. Federal sectors diversifies its revenue base, reducing customer concentration risk.

Financially, Ribbon delivered earnings growth of 30% in 2024, reaching the high end of their guidance. The positive book-to-bill ratio and expanding backlog are particularly encouraging forward indicators, suggesting revenue recognition will continue improving in upcoming quarters.

From a liquidity perspective, the buyback announcement indicates healthy cash flow generation. Management's commitment to fund the program through existing cash reserves and operational cash flow, rather than debt, reflects financial discipline. The extended timeframe through 2027 allows Ribbon to opportunistically repurchase shares during market volatility while maintaining financial flexibility.

This capital return initiative complements Ribbon's growth strategy in the real-time communications and IP optical networking solutions market, where strong partnerships with tier-one carriers provide a foundation for sustainable growth.

PLANO, Texas, June 3, 2025 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a leading supplier of real-time communications technology and IP optical networking solutions, announced that its Board of Directors has authorized a program to repurchase up to $50 million of the Company's common stock, commencing June 5, 2025 and continuing through December 31, 2027.

"Today's announcement of our new share repurchase program reflects the Board of Director's confidence in our strategic plan and the significant improvement in our performance, highlighted by the record financial results in the fourth quarter 2024. Business with US Tier One Service Providers doubled in 2024 underpinned by a multi-year contract with Verizon to support modernizing their telecom voice infrastructure along with projects with other carriers. At the same time, business with Enterprise customers and U.S. Federal agencies has grown significantly. Overall, earnings increased by 30% in 2024 and were at the high end of our original guidance for the year," said Bruce McClelland, President and CEO of Ribbon Communications.  "The visibility in our business has improved significantly with positive book-to-bill and growing backlog, and we are focused on driving profitable growth and strong cash flow generation. This share repurchase program exemplifies our commitment to deliver value to our stockholders."

Ribbon Communications may purchase shares at management's discretion in the open market, in privately negotiated transactions, in transactions structured through investment banking institutions, or a combination of the foregoing. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. The amount and timing of repurchases are subject to a variety of factors including liquidity, cash flow, stock price, compliance with the Company's credit facility and general business and market conditions. The program may be modified, increased, suspended, or discontinued at any time. The share repurchase program will be funded with cash on hand or cash generated from operations.

About Ribbon
Ribbon Communications (Nasdaq: RBBN) delivers secure cloud communications and IP and optical networking solutions to service providers, enterprises and critical infrastructure sectors globally. We engage deeply with our customers, helping them modernize their networks for improved competitive positioning and business outcomes in today's smart, always-on and data-hungry world. Our end-to-end portfolio of communications software and IP Optical networking solutions delivers superior value and innovation by leveraging cloud-native architectures, automation and analytics tools, and leading-edge security.  We maintain a keen focus on our commitments to Environmental, Social, and Governance (ESG) matters, offering an annual Sustainability Report to our stakeholders. To learn more about Ribbon, please visit rbbn.com

Important Information Regarding Forward-Looking Statements 
The information in this release contains forward-looking statements regarding future events, including potential share repurchases, that involve risks and uncertainties. All statements other than statements of historical facts contained in this release, including those regarding the expected share repurchases and the timing and benefits of the same, are forward-looking statements. The actual results of Ribbon Communications may differ materially from those contemplated by the forward-looking statements. For further information regarding risks and uncertainties associated with Ribbon Communications' business, please refer to the "Risk Factors" section of Ribbon Communications' most recent annual or quarterly report filed with the SEC. Any forward-looking statements represent Ribbon Communications' views only as of the date on which such statement is made and should not be relied upon as representing Ribbon Communications' views as of any subsequent date. While Ribbon Communications may elect to update forward-looking statements at some point, Ribbon Communications specifically disclaims any obligation to do so.

Investor Contact
+1 (978) 614-8050
ir@rbbn.com       

Media Contact
Catherine Berthier
+1 (646) 741-1974
cberthier@rbbn.com 

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SOURCE Ribbon Communications Inc.

FAQ

What is the size and duration of RBBN's share repurchase program?

Ribbon Communications announced a $50 million share repurchase program running from June 5, 2025 through December 31, 2027.

How will Ribbon Communications (RBBN) fund the share buyback program?

The share repurchase program will be funded with cash on hand or cash generated from operations.

What was Ribbon Communications' (RBBN) earnings growth in 2024?

Ribbon Communications reported a 30% increase in earnings for 2024, reaching the high end of their original guidance.

What major contract did RBBN secure with Verizon?

RBBN secured a multi-year contract with Verizon to support modernizing their telecom voice infrastructure.

How did RBBN's business with US Tier One Service Providers perform in 2024?

Business with US Tier One Service Providers doubled in 2024, supported by contracts with Verizon and other carriers.