Ribbon Communications Inc. (RBBN) Stock

Ribbon Communications Inc. (RBBN) is a Technology stock trading at $2.00 (as of 2026-08-20), with a market capitalization of $356.75M and a trailing P/E of 22.9. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Ribbon Communications Inc. provides communications technology through two segments: Cloud and Edge, which delivers software and hardware, along with solutions and services for voice over IP and related voice and unified communications deployments, and session border controller/network transformation offerings; and IP Optical Networks, which provides networking, switching, routing, and optical transport hardware and software for technologies such as 5G and distributed cloud. It serves service provider, enterprise, and cloud infrastructure environments across multiple global regions.

Understand Ribbon Communications Inc.: how it makes money

Ribbon Communications provides communications technology, it sells Cloud and Edge software and hardware plus solutions and services for voice over IP, voice over LTE, and voice over 5G, and it also provides IP Optical Networks, it makes money through product revenue and services and support revenue.

The profit engine is the ability to turn ongoing order intake into revenue across Cloud and Edge services and products (including maintenance and support), while keeping costs low enough to move from a negative operating margin.

Revenue by segment (latest quarter)
Cloud and Edge$0.1B
IP Optical$0.1B

Business quality (Weak): Good visibility into order intake via book-to-bill metrics and a clear two-segment structure, but the provided segment revenue figures do not fully reconcile to the stated total revenue for the latest quarter.

Valuation: At 13× earnings, RBBN trades 59% below the Tech Hardware average (32×). Note: one-time items can distort reported P/E.

Bull case

  • Order momentum: The Overall Book-to-Bill Ratio is 1.1, and the Cloud and Edge Book-to-Bill Ratio is 1.4, which suggests new bookings are exceeding revenue.
  • Services and support contribution: Services and Support Revenue is 0.09B, and Maintenance Revenue is 0.07B, indicating a recurring component alongside product revenue.

Bear case

  • Profitability pressure: Operating margin is -19.5% in the latest quarter, so the current cost structure has not been translating gross profit into operating profit.
  • Execution risk from order variability: Book-to-bill metrics can be cyclical, and if book-to-bill were to fall, it could reduce the flow of future revenue and make it harder to improve margins.
Valuation — source: SEC EDGAR (first-party)
Price$2.00
Market Cap$356.75M
P/E Ratio22.9
Price / Book0.91
Price / Sales0.45
FCF Yield2.1%
DCF Value (model)$1.65
DCF Upside vs Price-17.3%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$844.56M
Net Margin4.7%
Revenue Growth (YoY)-12.8%
EPS Growth (YoY)150.0%
FCF Growth (YoY)143.9%
Financial Health — source: SEC EDGAR
Altman Z-Score-0.67 (distress)
Piotroski F-Score7/9 (strong)
Valuation vs Sector & Industry
Stock P/E22.9
Sector P/E (Technology)33.9
Industry P/E (Computers)32.1
vs Sector-32.6%
vs Industry-28.7%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderJPMORGAN CHASE & CO ($107.99M)
Institutional Holders Tracked10
Company
SectorTechnology
IndustryComputers
CEOBruce W. McClelland
Employees3,052
CountryUS
IPO Date2000-05-25

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RBBN earnings history · RBBN institutional & insider holders · RBBN KPIs & operating metrics · RBBN financials · RBBN investor presentations & press releases · RBBN SEC filings · RBBN peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.