revenue $162.6M, net income -$34.5M. Ribbon revenue falls 10%, operating loss widens as company secures covenant waiver

Filed May 6, 2026 · Period ending March 31, 2026 · Compared to 10-Q Apr 30, 2025 · ~2 min read

Key Changes

• high

  Q1 2026 revenue declined 10% YoY to $162.6M with gross margin compressing 250bp to 42.9%; operating loss widened to $31.7M from $19.6M prior year, driven by lower demand across both IP Optical Networks and Cloud and Edge segments.

  MD&A: Financial Results verify on EDGAR →
• high

  Company obtained covenant waiver for Q2 2026 and relaxed leverage ratio limits through Q3 2026, accepting higher interest margins (7.00%) when leverage exceeds 3.75x, signaling near-term covenant pressure.

  MD&A: Credit Facility Amendment verify on EDGAR →
• high

  Launched $50M share repurchase program in June 2025 running through December 2027; repurchased 400K shares for $0.8M in Q1 2026, though credit facility caps aggregate buybacks at $15M despite board authorization.

  Controls: Share Repurchase Program verify on EDGAR →