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ADTRAN Holdings, Inc.
$666M
Market Cap
295.4
P/E
PEG
-1.6%
ROCE
-26.6%
ROE
1.68
D/E
-1.4%
OPM
+56.6%
% from 52W High
28
α RS
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About

ADTRAN Holdings, Inc. provides networking and communications platforms, software, systems, and services in the United States, Germany, the United Kingdom, and internationally.

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📈 Growth Pattern
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⭐ Superinvestors Holding ADTN
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 564.8K $7.1M 0.01% Mar 2026
Jim Simons Renaissance Technologies LLC 202.9K $2.6M 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED ADTRAN Q1 2026 revenue $286M (+15.5% YoY), operating margin 6.9%
Revenue & Profitability
First quarter 2026 revenue was $286.1 million, up 15.5% year-over-year. Non-GAAP net income was $11 million or $0.14 per diluted share (vs. $0.03 in Q1 2025). Non-GAAP operating income was $19.9 million, a margin of 6.9% (up from 3.9% in Q1 2025). Non-GAAP gross margin was 43%. Operating cash flow was $12.7 million, and free cash flow was negative $3.3 million.
Outlook
Management sees continued strength in core markets. Broadband expansion in the U.S. is gaining traction with BEAD funds beginning to reach operators. European high-risk vendor displacement is reinforced by legislation such as the Cybersecurity Act 2.0. Memory costs remain elevated and freight costs are higher due to Middle East disruptions. For Q2 2026, ADTRAN expects revenue of $283-$303 million and non-GAAP operating margin of 5%-9%.
Growth Drivers
Key growth levers include: BEAD deployment funding in the U.S., high-risk vendor replacement in Europe, expansion of managed optical fiber networks (MOFN) for cloud wholesale, and subscriber upgrades to multi-gig Wi-Fi 7 and fiber-to-the-home. New products like the LiteWave800 target AI infrastructure connectivity, and quantum-safe solutions address enterprise demand. Optical Networking Solutions revenue grew 24% year-over-year in Q1 2026.
Balance Sheet & CapEx
Not discussed in this earnings call.
Margins
Non-GAAP gross margin was 43% in Q1 2026, the highest since 2020 and up 55 basis points year-over-year. Non-GAAP operating margin expanded to 6.9% from 3.9% a year ago. Q2 2026 operating margin guidance is 5%-9%. Margin improvement is driven by disciplined cost management, pricing adjustments, and a favorable product mix with less reliance on lower-margin consumer CPE where memory cost pressure is most acute.
Key Risks
Management highlighted several risks: elevated memory costs industry-wide, increased freight costs due to Middle East disruptions, and foreign currency fluctuations on the European cost base. The Middle East conflict caused less than 5% revenue impact and higher freight costs. Memory pressure is most acute in consumer CPE but less impactful overall due to diverse product portfolio. Tariff and trade policy risks are also noted in forward-looking statements.
Generated by AI · Q1 2026 results · Not investment advice
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

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Information Sources:
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