Key Highlights

  • Shares closed down 14.97% at USD 5.34 on November 3, 2026, from USD 6.28 on November 2.
  • Third quarter 2026 Revenue was USD 281.2 million, up 0.6% from USD 279.4 million.
  • Non-GAAP Diluted Earnings per Share were USD 0.09, against USD 0.05 a year earlier.
  • Fourth quarter revenue guidance is USD 272.0 million to USD 292.0 million.
  • Operating cash flow was negative USD 24.5 million in the quarter.

What Moved ADTRAN Shares Today (down USD 0.9401, 14.97%)

ADTRAN (NASDAQ:ADTN) was down 14.97% to USD 5.34 in regular trading on November 3, 2026, versus USD 6.28 on Monday, November 2 (calculated from the screen move). Volume was about 1.27M shares and Market Capitalisation was roughly USD 435.11 million per the screen.

The move follows the third quarter report issued on November 2, 2026. Profit and Margin figures beat expectations, but revenue was slightly below the guidance midpoint, the fourth quarter outlook was close to flat, and cash flow turned sharply negative.

The Third Quarter in Detail

According to a company press release dated November 2, 2026, revenue was USD 281.2 million, up 0.6% from USD 279.4 million a year earlier. The chief executive said revenue came in slightly below the midpoint of the guidance range. Non-GAAP gross margin was 42.1%, which included roughly 200 basis points from tariff-related refunds, and GAAP gross margin was 38.5% against about 38.3% a year earlier.

Non-GAAP Operating Income was USD 14.1 million, a 5.0% margin, versus USD 15.1 million and 5.4% in the prior-year quarter. Non-GAAP diluted earnings per share were USD 0.09. On a GAAP basis the net loss was USD 7.1 million, compared with USD 7.8 million a year earlier, and GAAP diluted loss per share was USD 0.10 against USD 0.12.

Business Mix and Outlook

ADTRAN describes itself as a leading global provider of open, disaggregated networking and communications solutions. On the earnings call, management reported Optical Networking revenue of USD 114.5 million, up 11% year over year. Access and Aggregation revenue was USD 78.5 million, up 5%, while Subscriber Solutions revenue was USD 88.1 million, down 13%.

By region, U.S. revenue was USD 128.0 million, up 6%, and non-U.S. revenue was USD 153.2 million, down 4%. For the fourth quarter, the company guided revenue of USD 272.0 million to USD 292.0 million and a non-GAAP Operating Margin of 1.0% to 5.0%. Management also said Supply availability could constrain shipments into 2027.

Balance Sheet and Risks

Cash and cash equivalents were USD 64.6 million at September 30, 2026, with USD 7.1 million of restricted cash, for a total of USD 71.7 million, down from USD 79.2 million at June 30, 2026. Debt included a revolving Credit agreement of USD 83.0 million and convertible senior notes of USD 194.2 million net of issuance costs, or about USD 277.2 million combined (calculated).

Operating cash flow was negative USD 24.5 million and free cash flow was negative USD 39.4 million, as inventory reached USD 227.4 million and Days Sales Outstanding rose to 77. Risks include continued GAAP losses, supply constraints, the weak Subscriber Solutions line and Working Capital pressure.

What to Watch Next

Investors will follow whether fourth quarter revenue lands within the USD 272 million to USD 292 million range, whether cash flow recovers as inventory and receivables normalise, and how supply conditions develop into 2027. Margin trends once Tariff refunds fade are another point to track.