ADTRAN HOLDINGS, INC., 10-K/A filed on 5/20/2025
Amended Annual Report
v3.25.1
Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2024
Feb. 28, 2025
Jun. 30, 2024
Cover [Abstract]      
Document Type 10-K/A    
Amendment Flag true    
Document Period End Date Dec. 31, 2024    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Trading Symbol ADTN    
Entity Registrant Name ADTRAN Holdings, Inc.    
Entity Central Index Key 0000926282    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer No    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Filer Category Accelerated Filer    
Entity Shell Company false    
Entity Emerging Growth Company false    
Entity Small Business false    
Document Financial Statement Error Correction [Flag] true    
Document Financial Statement Restatement Recovery Analysis [Flag] true    
ICFR Auditor Attestation Flag true    
Entity Common Stock, Shares Outstanding   79,860,033  
Entity Public Float     $ 410,464,716
Entity Interactive Data Current Yes    
Entity File Number 000-41446    
Entity Tax Identification Number 87-2164282    
Entity Address, Address Line One 901 Explorer Boulevard    
Entity Address, City or Town Huntsville    
Entity Address, State or Province AL    
Entity Address, Postal Zip Code 35806-2807    
City Area Code 256    
Local Phone Number 963-8000    
Entity Incorporation, State or Country Code DE    
Document Annual Report true    
Document Transition Report false    
Title of 12(b) Security Common Stock, Par Value $0.01    
Security Exchange Name NASDAQ    
Documents Incorporated by Reference

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the definitive Proxy Statement on Schedule 14A for the registrant's 2025 Annual Meeting of Stockholders filed with the Securities and Exchange Commission on March 31, 2025 are incorporated herein by reference into Part III of this report to the extent described in Part III.

   
Auditor Opinion [Text Block]

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of ADTRAN Holdings, Inc. and its subsidiaries (the “Company”) as of December 31, 2024 and 2023, and the related consolidated statements of loss, of comprehensive (loss) income, of changes in equity and of cash flows for each of the three years in the period ended December 31, 2024, including the related notes and financial statement schedule listed in the accompanying index (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company did not maintain, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO because material weaknesses in internal control over financial reporting existed as of that date related to the Company not (i) designing and maintaining effective controls in response to the risks of material misstatement; (ii) designing and maintaining effective controls over financial statement preparation, presentation and disclosure commensurate with its financial reporting requirements; and (iii) designing and maintaining effective controls to address the initial application of complex accounting standards and accounting of non-routine, unusual or complex events and transactions.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis. The material weaknesses referred to above are described in Management's Report on Internal Control over Financial Reporting appearing under Item 9A. We considered these material weaknesses in determining the nature, timing, and extent of audit tests applied in our audit of the 2024 consolidated financial statements, and our opinion regarding the effectiveness of the Company’s internal control over financial reporting does not affect our opinion on those consolidated financial statements.

Restatement of Previously Issued Financial Statements and Management’s Conclusion Regarding Internal Control over Financial Reporting

As discussed in Note 1 to the consolidated financial statements, the Company has restated its 2024 and 2023 financial statements and financial statement schedule to correct errors.

Management and we previously concluded that the Company did not maintain effective internal control over financial reporting as of December 31, 2024 because of the material weaknesses related to the Company not (i) designing and maintaining effective controls in response to the risks of material misstatement; (ii) designing and maintaining effective controls over financial statement preparation, presentation and disclosure commensurate with its financial reporting requirements; and (iii) designing and maintaining effective controls to address the initial application of complex accounting standards and accounting of non-routine, unusual or complex events and transactions. However, management has subsequently determined that material weaknesses in internal control over financial reporting existed as of December 31, 2024 related to the Company not (i) designing and maintaining effective controls relating to communicating accurate information internally and with those charged with governance and (ii) designing and maintaining effective controls over an inventory suspense account. Accordingly, management’s report and our opinion on the effectiveness of internal control over financial reporting have been restated to include these additional material weaknesses.

   
Auditor Name PricewaterhouseCoopers LLP    
Auditor Firm ID 238    
Auditor Location Birmingham, Alabama    
Amendment Description ADTRAN Holdings, Inc. (“ADTRAN,” the “Company,” “we,” “us” or “our”) is filing this Amendment No. 1 on Form 10-K/A (this “Amendment No. 1” or "Form 10-K/A") to amend and restate certain portions of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 3, 2025 (the “Original Filing”). Financial information of Fiscal 2023 and the 2024 Interim Periods (each as defined below) is also restated within this Amendment No. 1. As previously disclosed in the Company’s Current Report on Form 8-K furnished to the SEC on April 16, 2025 (the “Form 8-K”), the Company’s majority-owned subsidiary, Adtran Networks SE (“Networks”), published an ad hoc notification in Germany on April 15, 2025 (the “Ad Hoc Notification”), disclosing that, in the course of finalizing Networks’ statutory financial statements for its fiscal year ended December 31, 2024, Networks identified an adjustment to inventory resulting in an increase to costs of goods sold, which resulted in a €5.7 million increase in the amount of Networks’ 2024 loss from that which was previously published in Networks’ preliminary financial results on February 27, 2025. The Form 8-K disclosed that the Company was in the process of assessing the impact of the adjustment to Networks’ 2024 financial results (the “Adjustment”) on the Company’s historical consolidated financial statements. Subsequently, as disclosed in the Company’s preliminary earnings release dated May 7, 2025 (the “Preliminary Earnings Release”), the Company determined that the Adjustment to Networks’ 2024 financial results caused the Company’s financial statements for the year ended December 31, 2024 and the interim fiscal periods therein, and the year ended December 31, 2023, to be adjusted, as described in the Preliminary Earnings Release, which was attached as an exhibit to a Current Report on Form 8-K furnished by the Company to the SEC on May 8, 2025. On May 13, 2025, the Audit Committee of the Board of Directors (the “Audit Committee”) of the Company concluded, after considering the recommendations of management, that the Company’s (i) audited consolidated financial statements as of and for the years ended December 31, 2024 (“Fiscal 2024”) and December 31, 2023 (“Fiscal 2023”) included in the Original Filing and (ii) unaudited condensed consolidated financial statements as of and for the interim periods ended March 31, 2024, June 30, 2024 and September 30, 2024 (the “2024 Interim Periods”) included in the Company’s Quarterly Reports filed with the SEC on May 10, 2024, August 9, 2024, and November 12, 2024, respectively (such 2024 Interim Periods, collectively with Fiscal 2024 and the 2024 Interim Periods, the “Affected Periods”), as well as the relevant portions of any communications which describe or are based on such financial statements, should no longer be relied upon. In addition to the corrections to reflect the impact of the Adjustment on its financial statements, the Company has also corrected other immaterial errors in connection with the restatement of the financial statements with respect to each of the Affected Periods. A summary description of the significant errors in the Company's Consolidated Financial Statements for the Affected Periods are as follows:•Pursuant to the terms of the DPLTA, each Adtran Networks shareholder (other than the Company) is entitled to receive from us an Annual Recurring Compensation payment of €0.52 per share. The Company erroneously accrued this liability every quarter at €0.59 per share, overstating the associated accrual, the net income attributable to non-controlling interest and the net loss attributable to ADTRAN Holdings, Inc. for fiscal periods beginning with the quarter ended March 31, 2023 through the quarter ended June 30, 2024. •For the periods beginning with the quarter ended March 31, 2023 through the quarter ended June 30, 2024 the Company remeasured the redeemable non-controlling interest each quarter-end at the current exchange rate of euros to U.S. Dollar. The Company treated the redeemable non-controlling interest as a monetary mezzanine equity instrument but should have treated it as a non-monetary mezzanine equity instrument not subject to remeasurement. •For the year ended December 31, 2023 through the year ended December 31, 2024, the Company understated cost of revenue and overstated inventory in the Company's Adtran Networks subsidiary due to a system error. In addition, there were adjustments in the Company's U.S and Australian subsidiaries related to inventory reserves that were understated.•For the year ended December 31, 2023 through the year ended December 31, 2024, the Company understated goodwill and overstated income tax receivable. The understatement was attributable to corrections to goodwill and deferred income tax associated with goodwill for an internal divestiture of a wholly owned subsidiary required by statutory laws in Europe.In addition to the misstatements identified above, the Company has corrected other immaterial errors. These other errors are quantitatively and qualitatively immaterial, individually and in the aggregate. However, the Company has corrected these other errors as part of the correction for the significant errors described above.For additional information on the restated consolidated financial statements for Fiscal 2024 and Fiscal 2023, see Note 1, Summary Of Significant Accounting Policies, of the Notes to Consolidated Financial Statements in this Amendment No. 1. For additional information on the unaudited restated quarterly financial information for the 2024 Interim Periods, see Note 22, Restatement of Quarterly Financial Information (Unaudited), of the Notes to Consolidated Financial Statements in this Amendment No. 1.Furthermore, in connection with the identification of the Adjustment, the Audit Committee has overseen an internal investigation into the circumstances surrounding the Adjustment and its impact on the Company’s historical financial statements. Based on the findings of the internal investigation, which is substantially complete, it has been determined that the underlying error giving rise to the Adjustment were not properly addressed in the Company’s previously filed financial statements as of and for Fiscal 2024 and Fiscal 2023 and was not communicated to the Audit Committee or the independent auditors prior to the filing of the initial 2024 Annual Report on Form 10-K. As described in Item 9A of this Amendment No. 1, the Company is taking remedial actions to address the material weaknesses in its internal controls associated with these findings.As a result of the above described errors and the identification of additional material weaknesses (described further in Part II, Item 9A), the Company is filing this Amendment No. 1 to (i) restate the disclosure on the effectiveness of the Company’s disclosure controls and procedures and restate management’s report on internal control over financial reporting in Part II, Item 9A of the Original Filing to reflect the additional material weaknesses, (ii) restate the Company’s consolidated financial statements to reflect the correction of the errors described above, including with respect to each of the Affected Periods, and to correct certain disclosure related to the appraisal proceedings in connection with the Domination and Profit and Loss Transfer Agreement ("DPLTA"), (iii) update seven risk factors related to the Company’s credit facility, material weaknesses, restatements, inventory levels, indebtedness, impairment charges, and the DPLTA, (iv) restate Part II, Item 7, MD&A, of the Original Filing solely to reflect the restated financial statements for Fiscal 2024 and Fiscal 2023 and to correct certain disclosure related to the DPLTA appraisal proceedings, (v) reissue the Report of the Independent Registered Public Accounting Firm, which appears in Part II, Item 8 of the Original Filing, and (vi) amend Part IV – Item 15 Exhibits and Financial Statement Schedules of the Original Filing to include currently dated certifications from the Company’s Chief Executive Officer and Chief Financial Officer as required by Section 302 and 906 of the Sarbanes-Oxley Act of 2002, as well as a corrected version of Exhibit 10.1(z), the Form of Restricted Stock Unit Agreement under the ADTRAN Holdings, Inc. 2024 Employee Stock Incentive Plan, and to fix certain immaterial errors.This Amendment No. 1 sets forth the Original Filing, as amended, in its entirety; however, there were no changes to any parts of the Original Filing other than the sections referenced in the immediately preceding paragraph. Moreover, pursuant to Rule 12b-15 promulgated by the SEC under the Securities Exchange Act of 1934, as amended, the Company has included the entire text of Part I, Item 1A, as well as Part II, Items 7, 8 and 9A and Part IV, Item 15, of the Original Filing in this Amendment No. 1. There have been no changes to the text of Part I, Item 1A or Part II, Items 7, 8 and 9A other than the changes stated in the immediately preceding paragraph. Other than as described above and through the inclusion with this Amendment No. 1 of new certifications by management, a new consent of PricewaterhouseCoopers LLP, an updated Exhibit 10.1(z), and a new signature page, this Amendment No. 1 speaks only as of the date of the Original Filing and does not amend, supplement, or update any information contained in the Original Filing to give effect to any subsequent events (including with respect to the cover page of the Original Filing, which has been updated only to present this filing as Amendment No. 1 and to update the reference to documents incorporated by reference into the Original Filing). Accordingly, this Amendment No. 1 should be read in conjunction with the Original Filing and the Company's reports (including any amendments thereto) filed with the SEC subsequent to the Original Filing.    
v3.25.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current Assets        
Cash and cash equivalents $ 76,021 $ 87,167    
Accounts receivable, less allowance for credit losses of $1,300 and $400 as of December 31, 2024 and 2023, respectively 178,030 209,737    
Other receivables 9,775 17,450    
Income tax receivable 5,461 3,198    
Inventory, net 261,557 360,424    
Assets held for sale 11,901      
Prepaid expenses and other current assets 56,395 40,991    
Total Current Assets 599,140 718,967    
Property, plant and equipment, net 106,454 118,157    
Deferred tax assets, net 17,826 29,294    
Goodwill 52,918 358,150 $ 386,459  
Intangibles, net 284,893 337,423    
Other non-current assets 78,128 87,706    
Long-term investments 32,060 27,743    
Total Assets 1,171,419 1,677,440    
Current Liabilities        
Accounts payable 171,825 162,922    
Unearned revenue 52,701 42,500    
Accrued expenses and other liabilities 34,158 36,204    
Accrued wages and benefits 32,853 27,152    
Income tax payable 1,936 5,221    
Total Current Liabilities 293,473 273,999    
Non-current revolving credit agreement outstanding 189,576 195,000    
Deferred tax liabilities 30,372 35,566    
Non-current unearned revenue 22,065 22,632    
Non-current pension liability 8,983 12,543    
Deferred compensation liability 33,203 29,039    
Non-current lease obligations 25,925 31,420    
Other non-current liabilities 17,928 28,657    
Total Liabilities 621,525 628,856    
Commitments and contingencies (see Note 18)    
Redeemable Non-Controlling Interest 422,943 443,327    
Equity        
Common stock, par value $0.01 per share; 200,000 shares authorized; 79,483 shares issued and 79,218 outstanding as of December 31, 2024 and 78,970 shares issued and 78,674 shares outstanding as of December 31, 2023 795 790    
Additional paid-in capital 808,913 794,468    
Accumulated other comprehensive income 11,254 47,530    
Retained deficit (688,813) (231,706)    
Less treasury stock at cost: 266 and 297 shares as of December 31, 2024 and 2023, respectively (5,198) (5,825)    
Total Equity 126,951 605,257 $ 1,303,613 $ 357,102
Total Liabilities and Equity $ 1,171,419 $ 1,677,440    
v3.25.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Accounts receivable, allowance for credit losses $ 1,300 $ 400
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued 79,483,000 78,970,000
Common stock, shares outstanding 79,218,000 78,674,000
Treasury stock, shares 266,000 297,000
v3.25.1
Consolidated Statements of Loss - USD ($)
shares in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Oct. 01, 2024
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue                          
Total Revenue   $ 242,852,000 $ 227,704,000 $ 225,991,000 $ 226,173,000       $ 452,164,000 $ 679,868,000 $ 922,720,000 $ 1,149,100,000 $ 1,025,536,000
Cost of Revenue                          
Total Cost of Revenue   153,296,000 144,670,000 144,732,000 155,858,000       300,590,000 445,260,000 598,556,000 817,973,000 698,284,000
Gross Profit   89,556,000 83,034,000 81,259,000 70,315,000       151,574,000 234,608,000 324,164,000 331,127,000 327,252,000
Selling, general and administrative expenses   57,013,000 57,550,000 59,364,000 58,991,000       118,355,000 175,905,000 232,918,000 258,610,000 208,889,000
Research and development expenses   49,314,000 51,577,000 60,352,000 60,215,000       120,567,000 172,144,000 221,458,000 258,311,000 173,757,000
Asset impairment                     0 0 17,433,000
Goodwill impairment $ 0 0 0 0 297,353,000       297,353,000 297,353,000 297,353,000 37,874,000 0
Operating Loss   (16,771,000) (26,093,000) (38,457,000) (346,244,000)       (384,701,000) (410,794,000) (427,565,000) (223,668,000) (72,827,000)
Interest and dividend income   1,631,000 664,000 366,000 397,000       763,000 1,427,000 3,058,000 2,340,000 2,123,000
Interest expense   (4,870,000) (5,679,000) (6,906,000) (4,598,000)       (11,504,000) (17,183,000) (22,053,000) (16,299,000) (3,437,000)
Net investment gain (loss)   (920,000) 1,382,000 872,000 2,253,000       3,125,000 4,507,000 3,587,000 2,754,000 (11,339,000)
Other income, net   687,000 (850,000) (901,000) 1,310,000       409,000 (441,000) 246,000 1,266,000 14,517,000
Loss Before Income Taxes   (20,243,000) (30,576,000) (45,026,000) (346,882,000)       (391,908,000) (422,484,000) (442,727,000) (233,607,000) (70,963,000)
Income tax (expense) benefit   (23,461,000) (390,000) (2,136,000) 18,647,000       16,511,000 16,121,000 (7,340,000) (28,299,000) 62,075,000
Net Loss   (43,704,000) (30,966,000) (47,162,000) (328,235,000) $ (800,000) $ (100,000) $ (0) (375,397,000) (406,363,000) (450,067,000) (261,906,000) (8,888,000)
Net Income (Loss) attributable to non-controlling interest   2,407,000 2,382,000 2,505,000 2,530,000       5,035,000 7,417,000 9,824,000 [1],[2] 6,946,000 [1],[3] (6,851,000) [1]
Net Loss attributable to ADTRAN Holdings, Inc.   $ (46,111,000) $ (33,348,000) $ (49,667,000) $ (330,765,000)       $ (380,432,000) $ (413,780,000) $ (459,891,000) $ (268,852,000) $ (2,037,000)
Weighted average shares outstanding – basic   79,091 78,952 78,852 78,814       78,803 78,873 78,928 78,416 62,346
Weighted average shares outstanding – diluted   79,091 78,952 78,852 78,814       78,803 78,873 78,928 78,416 62,346
Loss per common share attributable to ADTRAN Holdings, Inc. - basic   $ (0.58) $ (0.38) $ (0.63) $ (4.2)       $ (4.83) $ (5.21) $ (5.79) [4] $ (3.43) $ (0.03)
Loss per common share attributable to ADTRAN Holdings, Inc. - diluted   $ (0.58) $ (0.38) $ (0.63) $ (4.2)       $ (4.83) $ (5.21) $ (5.79) [4] $ (3.43) $ (0.03)
Network Solutions [Member]                          
Revenue                          
Total Revenue   $ 197,009,000 $ 181,488,000 $ 179,194,000 $ 181,273,000       $ 360,467,000 $ 541,955,000 $ 738,964,000 $ 974,389,000 $ 916,793,000
Cost of Revenue                          
Total Cost of Revenue   135,861,000 128,320,000 124,773,000 128,266,000       253,039,000 381,359,000 517,220,000 724,518,000 647,105,000
Gross Profit                     213,147,000 225,558,000 269,688,000
Goodwill impairment         297,400,000                
Network Solutions - Inventory Write-Down and Other Changes [Member]                          
Cost of Revenue                          
Total Cost of Revenue         8,782,000           8,597,000 24,313,000 0
Services & Support [Member]                          
Revenue                          
Total Revenue   45,843,000 46,216,000 46,797,000 44,900,000       91,697,000 137,913,000 183,756,000 174,711,000 108,743,000
Cost of Revenue                          
Total Cost of Revenue   $ 17,435,000 $ 16,678,000 $ 19,816,000 18,810,000       $ 38,626,000 $ 55,304,000 72,739,000 69,142,000 51,179,000
Gross Profit                     $ 111,017,000 105,569,000 $ 57,564,000
Goodwill impairment         $ 0             $ 37,900,000  
[1] For the year ended December 31, 2024 we accrued $9.8 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA. For the year ended December 31, 2023, we accrued $10.1 million, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA, partially offset by a $3.2 million net loss attributable to non-controlling interests pre-DPLTA.12-24
[2] For the year ended December 31, 2024 we accrued $9.8 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA
[3] For the year ended December 31, 2023, we have recognized $10.1 million, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA partially offset by a $3.2 million net loss attributable to non-controlling interests pre-DPLTA for the year ended December 31, 2023.
[4] Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $3.0 million effect of redemption of RNCI for the year ended December 31, 2024. See Note 19 for additional information.
v3.25.1
Consolidated Statements of Loss (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
[1]
Net gain (loss) attributable to redeemable non-controlling interest $ 2,407 $ 2,382 $ 2,505 $ 2,530 $ 5,035 $ 7,417 $ 9,824 [1],[2] $ 6,946 [1],[3] $ (6,851)
Gain on redemption of redeemable non-controlling interest             2,981    
Pre-DPLTA [Member]                  
Net gain (loss) attributable to redeemable non-controlling interest               3,200  
Post-DPLTA [Member]                  
Recurring cash compensation earned             $ 9,800 $ 10,100  
Net gain (loss) attributable to redeemable non-controlling interest $ 2,400 $ 3,100 $ 2,500 $ 2,500 $ 5,000 $ 7,400      
[1] For the year ended December 31, 2024 we accrued $9.8 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA. For the year ended December 31, 2023, we accrued $10.1 million, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA, partially offset by a $3.2 million net loss attributable to non-controlling interests pre-DPLTA.12-24
[2] For the year ended December 31, 2024 we accrued $9.8 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA
[3] For the year ended December 31, 2023, we have recognized $10.1 million, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA partially offset by a $3.2 million net loss attributable to non-controlling interests pre-DPLTA for the year ended December 31, 2023.
v3.25.1
Consolidated Statements of Comprehensive (Loss) Income - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]                        
Net Loss $ (43,704) $ (30,966) $ (47,162) $ (328,235) $ (800) $ (100) $ (0) $ (375,397) $ (406,363) $ (450,067) $ (261,906) $ (8,888)
Other Comprehensive (Loss) Income, net of tax                        
Net unrealized gain (loss) on available-for-sale securities       0             454 (284)
Defined benefit plan adjustments 1,437 109 (7) (60)       (67) 42 1,479 (1,490) 4,597
Foreign currency translation (loss) gain (37,344) 18,802 (1,442) (17,773)       (19,215) (411) (37,755) 22,822 53,396
Other Comprehensive (Loss) Income, net of tax (35,907) 18,911 (1,449) (17,833)       (19,282) (369) (36,276) 21,786 57,709
Comprehensive Loss, net of tax (79,611) (12,055) (48,611) (346,068)       (394,679) (406,732) (486,343) (240,120) 48,821
Less: Comprehensive Income attributable to non-controlling interest 2,407 2,382 2,504 2,531       5,035 7,417 9,824 7,328 12,818
Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax $ (82,018) $ (14,437) $ (51,115) $ (348,599)       $ (399,714) $ (414,149) $ (496,167) $ (247,448) $ 36,003
v3.25.1
Consolidated Statements of Changes in Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Adtran Networks SE [Member]
Common Stock [Member]
Common Stock [Member]
Adtran Networks SE [Member]
Additional Paid-in Capital [Member]
Additional Paid-in Capital [Member]
Adtran Networks SE [Member]
Retained Earnings (Deficit) [Member]
Treasury Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Non-controlling Interest [Member]
Non-controlling Interest [Member]
Adtran Networks SE [Member]
Beginning Balance at Dec. 31, 2021 $ 357,102   $ 797   $ 288,946   $ 740,820 $ (661,547) $ (11,914)    
Beginning Balance, Shares at Dec. 31, 2021     79,652                
Net loss (8,888)           (2,037)     $ (6,851)  
Acquisition of Adtran Networks   $ 894,675   $ 280   $ 577,980         $ 316,415
Acquisition of Adtran Networks, Shares       27,995              
Retirement of treasury stock     $ (303)       (655,761) 656,064      
Retirement of treasury stock, Shares     (30,330)                
Other comprehensive income (loss), net of tax 57,709               38,040 19,669  
Dividend payments ($0.09 per share) (22,885)           (22,885)        
Dividends accrued on unvested restricted stock units 353           353        
Deferred compensation adjustments, net of tax (71)             (71)      
ADTRAN Stock options exercised 6,131 726 $ 3     472 5,330 798     254
ADTRAN Stock options exercised, Shares     399                
ADTRAN RSUs and restricted stock vested (9,847)   $ 4       (10,482) 631      
ADTRAN RSUs and restricted stock vested, Shares     372                
Reclassification of Adtran Networks stock options 286       187         99  
ADTRAN Stock-based compensation expense 26,141 2,181     26,141 2,108         73
Ending Balance at Dec. 31, 2022 1,303,613   $ 781   895,834   55,338 (4,125) 26,126 329,659  
Ending Balance, Shares at Dec. 31, 2022     78,088                
Net loss (261,906)           (258,727)     (3,179)  
Reclassification and remeasurement from equity to mezzanine equity for non-controlling interests in Adtran Networks (443,757)         (116,895)         $ (326,862)
Mezzanine equity for non-controlling interest in adtran networks for adtran networks stock options exercised (1,175)       (1,175)            
Acquisition of Adtran Networks 3,762           3,762        
Other comprehensive income (loss), net of tax 21,786               21,404 $ 382  
Dividend payments ($0.09 per share) (21,237)           (21,237)        
Dividends accrued on unvested restricted stock units 8           8        
Deferred compensation adjustments, net of tax (1,845)           (145) (1,700)      
ADTRAN Stock options exercised   323       323          
ADTRAN Stock options exercised 164         323 164        
ADTRAN Stock options exercised, Shares     23                
Modification of stock options 339       339            
ADTRAN RSUs and restricted stock vested (1,106)   $ 9       (1,115)        
ADTRAN RSUs and restricted stock vested, Shares     859                
Redemption of redeemable non-controlling interest 371           371        
Annual recurring compensation earned (10,125)           (10,125)        
ADTRAN Stock-based compensation expense 16,016 26     16,016 26          
Ending Balance at Dec. 31, 2023 $ 605,257   $ 790   794,468   (231,706) (5,825) 47,530    
Ending Balance, Shares at Dec. 31, 2023 78,970   78,970                
Net loss $ (450,067)           (450,067)        
Other comprehensive income (loss), net of tax (36,276)               (36,276)    
Deferred compensation adjustments, net of tax 259       (368)     627      
ADTRAN Stock options exercised $ 825   $ 1       824        
ADTRAN Stock options exercised, Shares 139   139                
Modification of stock options $ (190)       (190)            
ADTRAN RSUs and restricted stock vested (1,022)   $ 4       (1,026)        
ADTRAN RSUs and restricted stock vested, Shares     374                
Redemption of redeemable non-controlling interest 2,986           2,986        
Annual recurring compensation earned (9,824)           (9,824)        
Remeasurement of redeemable non-controlling interest (1,175)       (1,175)            
ADTRAN Stock-based compensation expense 14,825 $ 1,353     14,825 $ 1,353          
Ending Balance at Dec. 31, 2024 $ 126,951   $ 795   $ 808,913   $ (688,813) $ (5,198) $ 11,254    
Ending Balance, Shares at Dec. 31, 2024 79,483   79,483                
v3.25.1
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]    
Dividends payments $ 0.09 $ 0.09
v3.25.1
Consolidated Statements of Cash Flows
12 Months Ended
Dec. 31, 2022
USD ($)
Cash flows from operating activities:  
Net Loss $ (8,888,000)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:  
Depreciation and amortization 67,553,000
Asset impairment 17,433,000
Goodwill impairment 0
Amortization of debt issuance cost 288,000
(Accretion) amortization on available-for-sale investments, net 19,000
(Gain) loss on investments 9,826,000
Net loss on disposal of property, plant and equipment 152,000
Stock-based compensation expense 28,322,000
Deferred income taxes (62,388,000)
Inventory reserves (2,363,000)
Change in operating assets and liabilities:  
Accounts receivable, net 788,000
Other receivables (20,088,000)
Inventory (73,237,000)
Prepaid expenses, other current assets and other assets (7,116,000)
Accounts payable 28,105,000
Accrued expenses and other liabilities (20,483,000)
Income taxes payable (2,151,000)
Net cash provided by (used in) operating activities (44,228,000)
Cash flows from investing activities:  
Purchases of property, plant and equipment (17,072,000)
Proceeds from sales and maturities of available-for-sale investments 51,661,000
Purchases of available-for-sale investments (23,899,000)
(Payments) for and proceeds from beneficial interests in securitized accounts receivable 1,126,000
Proceeds from disposals of property, plant and equipment 12,000
Acquisition of business, net of cash acquired 44,003,000
Net cash (used in) provided by investing activities 55,831,000
Cash flows from financing activities:  
Tax withholdings related to stock-based compensation settlements (4,253,000)
Proceeds from stock option exercises 6,904,000
Dividend payments (22,885,000)
Proceeds from draw on revolving credit agreements 141,887,000
Repayment of revolving credit agreements (48,000,000)
Payment of debt issuance cost (3,015,000)
Repayment of notes payable (17,702,000)
Net cash (used in) provided by financing activities 52,936,000
Net (decrease) increase in cash and cash equivalents 64,539,000
Effect of exchange rate changes (12,713,000)
Cash, cash equivalents and restricted cash, beginning of year 56,818,000
Cash, cash equivalents and restricted cash, end of year 108,644,000
Supplemental disclosure of cash flow information:  
Cash paid for interest 1,728,000
Cash paid for income taxes, net of refunds 3,832,000
Cash used in operating activities related to operating leases 5,229,000
Supplemental disclosure of non-cash investing activities  
Right-of-use assets obtained in exchange for lease obligations 3,410,000
Purchases of property, plant and equipment included in accounts payable 1,165,000
Adtran Networks common shares exchanged in acquisition 565,491,000
Adtran Networks options assumed in acquisition 12,769,000
Non-controlling interest related to Adtran Networks $ 316,415,000
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure                  
Net Income (Loss) $ (46,111) $ (33,348) $ (49,667) $ (330,765) $ (380,432) $ (413,780) $ (459,891) $ (268,852) $ (2,037)
v3.25.1
Recovery of Erroneously Awarded Compensation - Restatement Determination Date:: 2025-05-13
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Erroneously Awarded Compensation Recovery    
Restatement Determination Date May 13, 2025 May 13, 2025
Erroneous Compensation Analysis The Company’s Compensation Committee is undertaking an analysis to determine the aggregate dollar amount of erroneously awarded compensation as a result of the correction to the Company’s financial statements for Fiscal 2024 and expects to disclose the information required in Item 402(w) of Regulation S-K in its next filing that is required to include such disclosure.  
Aggregate Erroneous Compensation Not Yet Determined The aggregate dollar amount of erroneously awarded compensation has not yet been determined due to timing constraints caused by the proximity of the conclusion that the Company’s financial statements for Fiscal 2023, Fiscal 2024, and the Interim 2024 Periods needed to be restated and the finalizing of this Amendment No. 1.  
Restatement does not require Recovery   The Company did not award any VICC program bonuses to its officers in 2023 since the performance thresholds were not achieved during 2023. Consequently, the Company has determined that the Restatements did not result in the recoupment of any 2023 incentive compensation under the Clawback Policy.
v3.25.1
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.1
Insider Trading Policies and Procedures
3 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.1
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

GENERAL

ADTRAN Holdings, Inc. (“Adtran” or the “Company”) is a leading global provider of networking and communications platforms, software, systems and services focused on the broadband access market, serving a diverse domestic and international customer base in multiple countries that includes large, medium and small Service Providers, alternative Service Providers, such as utilities, municipalities and fiber overbuilders, cable/MSOs, SMBs and distributed enterprises, including Fortune 500 companies with sophisticated business continuity applications; and federal, state and local government agencies. Our innovative solutions and services enable voice, data, video and internet-communications across a variety of network infrastructures and are currently in use by millions worldwide. We support our customers through our direct global sales organization and our distribution networks. Our success depends upon our ability to increase unit volume and market share through the introduction of new products and succeeding generations of products having optimal selling prices and increased functionality as compared to both the prior generation of a product and to the products of competitors in order to gain market share. To service our customers and grow revenue, we are continually conducting research and developing new products addressing customer needs and testing those products for the specific requirements of the particular customers. We offer a broad portfolio of flexible software and hardware network solutions and services that enable Service Providers to meet today’s service demands, while enabling them to transition to the fully converged, scalable, highly-automated, cloud-controlled voice, data, internet and video network of the future. In addition to our global headquarters in Huntsville, Alabama, and our European headquarters in Munich, Germany, we have sales and research and development facilities in strategic global locations.

The Company solely owns ADTRAN, Inc. and is the majority shareholder of Adtran Networks SE (“Adtran Networks”). ADTRAN, Inc. is a leading global provider of open, disaggregated networking and communications solutions. Adtran Networks is a global provider of network solutions for data, storage, voice and video services. We believe that the combined technology portfolio can best address current and future customer needs for high-speed connectivity from the network core to the end consumer, especially upon the convergence of solutions at the network edge.

Liquidity, Domination and Profit and Loss Transfer Agreement and Credit Facility

The DPLTA between the Company, as the controlling company, and Adtran Networks SE ("Adtran Networks"), as the controlled company, as executed on December 1, 2022, became effective on January 16, 2023, as a result of its registration with the commercial register (Handelsregister) of the local court (Amtsgericht) at the registered seat of Adtran Networks (Jena).

Under the DPLTA, subject to certain limitations pursuant to applicable law and the specific terms of the DPLTA, (i) the Company is entitled to issue binding instructions to the management board of Adtran Networks, (ii) Adtran Networks will transfer its annual profit to the Company, subject to, among other things, the creation or dissolution of certain reserves, and (iii) the Company will generally absorb the annual net loss incurred by Adtran Networks. The Company’s payment obligation in satisfaction of the requirement that it absorb Adtran Networks’ annual net loss applied for the first time to the net loss generated in 2023.

Pursuant to the terms of the DPLTA, each Adtran Networks shareholder (other than the Company) has received an offer to elect either (1) to remain an Adtran Networks shareholder and receive from us an Annual Recurring Compensation payment, or (2) to receive Exit Compensation plus guaranteed interest. The guaranteed interest under the Exit Compensation is calculated from the effective date of the DPLTA to the date the shares are tendered, less any Annual Recurring Compensation paid. The guaranteed interest rate is 5.0% plus a variable component (according to the German Civil Code) that was 3.37% as of December 31, 2024. Assuming all the minority holders of currently outstanding Adtran Networks shares were to elect the second option, we would be obligated to make aggregate Exit Compensation payments, including guaranteed interest, of approximately €333.2 million or approximately $344.9 million, based on an exchange rate as of December 31, 2024 and reflecting interest accrued through December 31, 2024 during the pendency of the appraisal proceedings discussed below. Shareholders electing the first option of Annual Recurring Compensation may later elect the second option. The opportunity for outside Adtran Networks shareholders to tender Adtran Networks shares in exchange for Exit Compensation had been scheduled to expire on March 16, 2023. However, due to the appraisal proceedings that were initiated in 2023 in accordance with applicable German law, this time period for tendering shares has been extended pursuant to the German Stock Corporation Act (Aktiengesetz) and will end two months after the date on which a final decision in such appraisal proceedings has been published in the Federal Gazette (Bundesanzeiger). The Company expects to receive a ruling on a procedural matter in the DPLTA appraisal proceedings during the latter half of 2025 or 2026, which ruling, depending on outcome, will likely be appealed and may take 6-12 months to be decided on appeal. The Company does not expect that a trial on the merits of the DPLTA appraisal proceedings will commence until the procedural matter has been resolved. The proceeding for the trial on the merits of the DPLTA will likely take a minimum of 12 months for a ruling and such ruling will likely be appealed, which would be expected to take an additional 12-24 months to be

resolved. Accordingly, the Company does not expect a final decision on the DPLTA appraisal proceedings to be rendered and published prior to 2027, and most likely not until 2028 or beyond.

Additionally, our obligation to pay Annual Recurring Compensation under the DPLTA is a continuing payment obligation, which will amount to approximately8.9 million (or $9.3 million based on the current exchange rate) per year assuming none of the minority Adtran Networks shareholders as of December 31, 2024 were to elect Exit Compensation. The foregoing amounts do not reflect any potential increase in payment obligations that we may have depending on the outcome of ongoing appraisal proceedings in Germany. The Annual Recurring Compensation is due on the third banking day following the ordinary general shareholders’ meeting of Adtran Networks for the respective preceding fiscal year (but in any event within eight months following expiration of the fiscal year). With respect to the 2023 fiscal year, Adtran Networks’ ordinary general shareholders’ meeting occurred on June 28, 2024 and, therefore, the Annual Recurring Compensation was paid on July 3, 2024. With respect to the 2024 fiscal year, Adtran Networks’ ordinary general shareholder meeting is scheduled for June 27, 2025 and, therefore, the Annual Recurring Compensation will be due on July 2, 2025. During the year ended December 31, 2024 and 2023, we accrued $9.8 million and $10.1 million, respectively, in Annual Recurring Compensation. The Annual Recurring Compensation is reflected as an increase to retained deficit in the Consolidated Balance Sheets.

On October 18, 2022, the Company's Board of Directors authorized the Company to purchase additional shares of Adtran Networks through open market purchases not to exceed 15,346,544 shares. For the year ended December 31, 2024, approximately 831 thousand shares of Adtran Networks stock were tendered to the Company. This resulted in total Exit Compensation payments of approximately €15.7 million, or approximately $17.4 million, based on exchange rates at the time of the transactions, being paid to Adtran Networks shareholders. For the year ended December 31, 2023, a total of 67 thousand shares of Adtran Networks stock was tendered to the Company and Exit Compensation payments of approximately €1.2 million or approximately $1.3 million based on an exchange rate as of December 31, 2023, were paid to Adtran Networks shareholders.

On July 18, 2022, ADTRAN, Inc., as the borrower, and ADTRAN Holdings, Inc. entered into a credit agreement with a syndicate of banks, including Wells Fargo Bank, National Association, as administrative agent (“Administrative Agent”), and the other lenders named therein (“Credit Agreement”), which has since been amended four times. The Company had access to $180.8 million on its Credit Facility for future borrowings; however, as of December 31 2024, the Company was limited to additional borrowings of $36.1 million based on debt covenant compliance metrics. The financial covenants under the Credit Agreement, as amended, require the Company to maintain a Consolidated Total Net Leverage Ratio of 5.00x, a Consolidated Senior Secured Net Leverage Ratio of 3.25x (4.0x to 3.5x during a Springing Covenant Period) and a Consolidated Fixed Charge Coverage Ratio of 1.25x. See Note 11, Credit Agreements for additional information regarding the terms of the Wells Fargo Credit Agreement and its amendments.

As of December 31, 2024, and as of the date of issuance of these financial statements, the Company does not have sufficient liquidity to meet payment obligations under the DPLTA pertaining to Exit Compensation. While the Company did experience $17.4 million of redemptions during 2024, we believe the probability that more than a small minority of Adtran Networks shareholders elect to receive Exit Compensation in the next twelve months is remote based on the following factors: (i) the shareholders can exercise their right to receive the Exit Compensation until two months after publication of the final decision in the appraisal proceedings and we do not expect the final decision to be published within the next 12 months; (ii) the diverse base of shareholders that must make this election on an individual shareholder basis; (iii) the fact that the Company expects to receive a procedural decision during 2025 or 2026 that will likely be appealed and, while the date of a decision by the court on the merits of the case is uncertain, it will likely take a minimum of 12 months for a ruling and, thereafter, an expected appeal process will take a further 12-24 months to resolve; (iv) the current guaranteed Annual Recurring Compensation payment; and (v) the current trading value of Adtran Networks shares.

The Company experienced revenue declines in 2024. The Company is implementing plans to preserve cash liquidity to maintain compliance with the Company’s covenants in case of further impacts related to customer inventory reduction initiatives and uncertain macroeconomic conditions. Additionally, the Company suspended dividend payments and effectuated a Business Efficiency Program. The Business Efficiency Program was substantially completed as of December 31, 2024, other than the Company's aim of selling its headquarters. The Company has determined that it is probable that the sale of our headquarters in Huntsville will occur within the next twelve months after December 31, 2024. We may need to further reduce capital expenditure and/or take other steps to preserve working capital in order to ensure that we can meet our needs and obligations and maintain compliance with our debt covenants.

In summary, the Company believes that its cash and cash equivalents, investments, working capital management initiatives and availability to access cash under the Wells Fargo credit facility will be adequate to meet our business operating requirements, our capital expenditures and our expected obligations under the DPLTA, including anticipated levels of Exit Compensation and to support our ability to continue to comply with our debt covenants under the Credit Facility, for at least the next twelve months, from the issuance of

these financial statements. See Note 11, Credit Agreements, for additional information regarding the terms of the Amendments of the Wells Fargo Credit agreement.

Note 1 - Summary Of Significant Accounting Policies

Basis of Presentation

The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and include the financial position, results of operations, comprehensive (loss) income, changes in equity and cash flows of Adtran and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Restatement of Previously Issued Consolidated Financial Statements

On May 13, 2025, the Audit Committee of the Board of Directors (the “Audit Committee”) of the Company concluded, after considering the recommendations of management, that the Company’s (i) audited consolidated financial statements as of and for the years ended December 31, 2024 (“Fiscal 2024”) and December 31, 2023 (“Fiscal 2023”) included in the Company’s Annual Report on Form 10-K filed with the SEC on March 3, 2025 (the “2024 Form 10-K”), and (ii) unaudited condensed consolidated financial statements as of and for the interim periods ended March 31, 2024, June 30, 2024 and September 30, 2024 (the “2024 Interim Periods”) included in the Company’s Quarterly Reports filed with the SEC on May 10, 2024, August 9, 2024, and November 12, 2024, respectively (such 2024 Interim Periods, collectively with Fiscal 2024 and Fiscal 2023, the “Non-Reliance Periods”), as well as the relevant portions of any communication which describe or are based on such financial statements, should no longer be relied upon.

In addition, on May 13, 2025, the Company announced that it needed additional time to complete its quarterly reporting process as a result of the restatements to the annual periods ended December 31, 2023 and 2024 and for the interim periods ended March 31, 2024, June 30, 2024 and September 30, 2024, as well as to complete its evaluation of internal control over financial reporting as of December 31, 2024 as a result of errors related to the historical accounting for certain inventory and cost of goods sold transactions in its Adtran Networks SE subsidiary (the “Adjustment”). As a result, the Company filed a Form 12b-25 with the SEC and delayed its filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

In connection with the identification of the Adjustment, the Audit Committee has overseen an internal investigation into the circumstances surrounding the Adjustment and its impact on the Company’s historical financial statements. Based on the findings of the internal investigation, which is substantially complete, it has been determined that the underlying errors giving rise to the Adjustment were not properly addressed in the Company’s previously filed financial statements as of and for the years ended December 31, 2024 and 2023 and were not communicated to the Audit Committee or the independent auditors prior to the filing of the initial 2024 and 2023 Annual Reports on Form 10-K. As described in Item 9A of this Amendment No. 1, the Company is taking certain remedial actions to address the material weaknesses in its internal controls associated with these findings.

The impact of the correction of the misstatements and errors on the Condensed Consolidated Financial Statements for the quarterly periods ended March 31, 2024, June 30, 2024 and September 30, 2024 are summarized in Note 22, Restatement of Quarterly Financial Information (Unaudited).

The impact of the correction of the misstatements and errors has been reflected within Schedule II – Valuation and Qualifying Accounts for the year ended December 31, 2024.

We assessed the materiality of the errors on prior period consolidated financial statements in accordance with SEC Staff Accounting Bulletin No. 99, “Materiality,” codified in ASC Topic 250, Accounting Changes and Error Corrections. Based on this assessment, we concluded that the errors, in the aggregate, are material to Fiscal 2024 and Fiscal 2023 and therefore, we are restating those financial statements herein. Furthermore, we made adjustments to correct for other previously identified immaterial errors. The impact of the correction of the misstatements and errors on the Consolidated Financial Statements for the years ended December 31, 2024 and 2023, as well as previously identified immaterial errors which have now been corrected, is summarized below. The Company has also restated impacted amounts within the accompanying footnotes to the Consolidated Financial Statements.

The impact of the correction of the misstatements and errors on the Consolidated Statements of Cash Flows were driven by changes in the related Consolidated Balance Sheet and Consolidated Statement of Loss and Comprehensive Income (Loss) line items. Below is a summary description of the significant errors:

ADJ 1: Pursuant to the terms of the DPLTA, each Adtran Networks shareholder (other than the Company) is entitled to receive from us an Annual Recurring Compensation payment of 0.52 per share. The Company erroneously accrued this liability every quarter at 0.59 per share, overstating the associated accrual, the net income attributable to non-controlling interest and the net loss attributable to ADTRAN Holdings, Inc. for fiscal periods beginning with the quarter ended March 31, 2023 through the quarter ended June 30, 2024.

ADJ 2: For the periods beginning with the quarter ended March 31, 2023 through the quarter ended June 30, 2024 the Company remeasured the redeemable non-controlling interest each quarter-end at the current exchange rate of euros to U.S. Dollar. The Company treated the redeemable non-controlling interest as a monetary mezzanine equity instrument but should have treated it as a non-monetary mezzanine equity instrument not subject to remeasurement.

ADJ 3: For the year ended December 31, 2023 through the year ended December 31, 2024, the Company understated cost of revenue and overstated inventory in the Company's Adtran Networks subsidiary due to a system error. In addition, there were adjustments in the Company's U.S and Australian subsidiaries related to inventory reserves that were understated.

ADJ 4: For the year ended December 31, 2023 through the year ended December 31, 2024, the Company understated goodwill and overstated income tax receivable. The understatement was attributable to corrections to goodwill and deferred income tax associated with goodwill for an internal divestiture of a wholly owned subsidiary required by statutory laws in Europe.

In addition to the misstatements identified above, the Company has corrected other immaterial errors. These other errors are quantitatively and qualitatively immaterial, individually and in the aggregate. However, the Company has corrected these other errors as part of the correction for the significant errors described above.

 

The following tables reflect the impact of the restatements to the specific line items presented in the Company’s previously reported Consolidated Balance Sheets as of December 31, 2024 and 2023.

 

 

 

As of December 31, 2024

 

ASSETS

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Current Assets

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

77,567

 

 

$

(1,546

)

 

$

76,021

 

Accounts receivable, less allowance for credit losses of $1,300 as of December 31, 2024

 

 

 

178,030

 

 

 

 

 

 

178,030

 

Other receivables

 

 

 

9,775

 

 

 

 

 

 

9,775

 

Income tax receivable

 

 

 

5,461

 

 

 

 

 

 

5,461

 

Inventory, net

ADJ 3

 

 

269,337

 

 

 

(7,780

)

 

 

261,557

 

Assets held for sale

 

 

 

11,901

 

 

 

 

 

 

11,901

 

Prepaid expenses and other current assets

 

 

 

58,534

 

 

 

(2,139

)

 

 

56,395

 

Total Current Assets

 

 

 

610,605

 

 

 

(11,465

)

 

 

599,140

 

Property, plant and equipment, net

 

 

 

102,942

 

 

 

3,512

 

 

 

106,454

 

Deferred tax assets, net

 

 

 

17,826

 

 

 

 

 

 

17,826

 

Goodwill

 

 

 

52,918

 

 

 

 

 

 

52,918

 

Intangibles, net

 

 

 

284,893

 

 

 

 

 

 

284,893

 

Other non-current assets

 

 

 

78,128

 

 

 

 

 

 

78,128

 

Long-term investments

 

 

 

32,060

 

 

 

 

 

 

32,060

 

Total Assets

 

 

$

1,179,372

 

 

$

(7,953

)

 

$

1,171,419

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

$

170,451

 

 

$

1,374

 

 

$

171,825

 

Unearned revenue

 

 

 

52,701

 

 

 

 

 

 

52,701

 

Accrued expenses and other liabilities

 

 

 

35,704

 

 

 

(1,546

)

 

 

34,158

 

Accrued wages and benefits

 

 

 

32,853

 

 

 

 

 

 

32,853

 

Income tax payable

 

 

 

1,936

 

 

 

 

 

 

1,936

 

Total Current Liabilities

 

 

 

293,645

 

 

 

(172

)

 

 

293,473

 

     Non-current revolving credit agreement outstanding

 

 

 

189,576

 

 

 

-

 

 

 

189,576

 

Deferred tax liabilities

 

 

 

30,690

 

 

 

(318

)

 

 

30,372

 

Non-current unearned revenue

 

 

 

22,065

 

 

 

 

 

 

22,065

 

Non-current pension liability

 

 

 

8,983

 

 

 

 

 

 

8,983

 

Deferred compensation liability

 

 

 

33,203

 

 

 

 

 

 

33,203

 

Non-current lease obligations

 

 

 

25,925

 

 

 

 

 

 

25,925

 

Other non-current liabilities

 

 

 

17,928

 

 

 

 

 

 

17,928

 

Total Liabilities

 

 

 

622,015

 

 

 

(490

)

 

 

621,525

 

Commitments and contingencies (see Note 18)

 

 

 

 

 

 

 

 

 

 

Redeemable Non-Controlling Interest

 

 

 

422,943

 

 

 

 

 

 

422,943

 

Equity

 

 

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share; 200,000 shares authorized;
   
79,483 shares issued and 79,218 outstanding as of December 31, 2024

 

 

 

795

 

 

 

 

 

 

795

 

Additional paid-in capital

 

 

 

808,913

 

 

 

 

 

 

808,913

 

Accumulated other comprehensive income

ADJ 3, 4

 

 

10,897

 

 

 

357

 

 

 

11,254

 

Retained deficit

ADJ 3, 4

 

 

(680,993

)

 

 

(7,820

)

 

 

(688,813

)

Less treasury stock at cost: 266 shares as of December 31, 2024

 

 

 

(5,198

)

 

 

 

 

 

(5,198

)

Total Equity

 

 

 

134,414

 

 

 

(7,463

)

 

 

126,951

 

Total Liabilities and Equity

 

 

$

1,179,372

 

 

$

(7,953

)

 

$

1,171,419

 

 

 

 

 

As of December 31, 2023

 

ASSETS

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Current Assets

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

87,167

 

 

$

 

 

$

87,167

 

Accounts receivable, less allowance for credit losses of $400 as of December 31, 2023

 

 

 

216,445

 

 

 

(6,708

)

 

 

209,737

 

Other receivables

 

 

 

17,450

 

 

 

 

 

 

17,450

 

Income tax receivable

 

 

 

7,933

 

 

 

(4,735

)

 

 

3,198

 

Inventory, net

ADJ 3

 

 

362,295

 

 

 

(1,871

)

 

 

360,424

 

Prepaid expenses and other current assets

 

 

 

45,566

 

 

 

(4,575

)

 

 

40,991

 

Total Current Assets

 

 

 

736,856

 

 

 

(17,889

)

 

 

718,967

 

Property, plant and equipment, net

 

 

 

113,582

 

 

 

4,575

 

 

 

118,157

 

Deferred tax assets, net

ADJ 4

 

 

25,787

 

 

 

3,507

 

 

 

29,294

 

Goodwill

ADJ 4

 

 

353,415

 

 

 

4,735

 

 

 

358,150

 

Intangibles, net

 

 

 

337,423

 

 

 

 

 

 

337,423

 

Other non-current assets

 

 

 

87,706

 

 

 

 

 

 

87,706

 

Long-term investments

 

 

 

27,743

 

 

 

 

 

 

27,743

 

Total Assets

 

 

$

1,682,512

 

 

$

(5,072

)

 

$

1,677,440

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

$

162,922

 

 

$

 

 

$

162,922

 

Unearned revenue

 

 

 

46,731

 

 

 

(4,231

)

 

 

42,500

 

Accrued expenses and other liabilities

ADJ 1

 

 

37,607

 

 

 

(1,403

)

 

 

36,204

 

Accrued wages and benefits

 

 

 

27,030

 

 

 

122

 

 

 

27,152

 

Income tax payable

ADJ 4

 

 

5,221

 

 

 

 

 

 

5,221

 

Total Current Liabilities

 

 

 

279,511

 

 

 

(5,512

)

 

 

273,999

 

     Non-current revolving credit agreement outstanding

 

 

 

195,000

 

 

 

 

 

 

195,000

 

Deferred tax liabilities

ADJ 4

 

 

35,655

 

 

 

(89

)

 

 

35,566

 

Non-current unearned revenue

 

 

 

25,109

 

 

 

(2,477

)

 

 

22,632

 

Non-current pension liability

 

 

 

12,543

 

 

 

 

 

 

12,543

 

Deferred compensation liability

 

 

 

29,039

 

 

 

 

 

 

29,039

 

Non-current lease obligations

 

 

 

31,420

 

 

 

 

 

 

31,420

 

Other non-current liabilities

 

 

 

28,657

 

 

 

 

 

 

28,657

 

Total Liabilities

 

 

 

636,934

 

 

 

(8,078

)

 

 

628,856

 

Commitments and contingencies (see Note 20)

 

 

 

 

 

 

 

 

 

 

Redeemable Non-Controlling Interest

ADJ 2

 

 

451,756

 

 

 

(8,429

)

 

 

443,327

 

Equity

 

 

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share; 200,000 shares authorized;
   
78,970 shares issued and 78,674 outstanding as of December 31, 2023

 

 

 

790

 

 

 

 

 

 

790

 

Additional paid-in capital

 

 

 

795,304

 

 

 

(836

)

 

 

794,468

 

Accumulated other comprehensive income

ADJ 1

 

 

47,461

 

 

 

69

 

 

 

47,530

 

Retained deficit

ADJ 1, 2, 4

 

 

(243,908

)

 

 

12,202

 

 

 

(231,706

)

Less treasury stock at cost: 297 shares as of December 31, 2023

 

 

 

(5,825

)

 

 

 

 

 

(5,825

)

Total Equity

 

 

 

593,822

 

 

 

11,435

 

 

 

605,257

 

Total Liabilities and Equity

 

 

$

1,682,512

 

 

$

(5,072

)

 

$

1,677,440

 

 

The following tables reflect the impact of the restatements to the specific line items presented in the Company’s previously reported Consolidated Statement of Loss and the Consolidated Statement of Comprehensive Loss for the years ended December 31, 2024 and 2023.

 

 

 

Year Ended December 31, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

 

$

738,964

 

 

$

 

 

$

738,964

 

Services & Support

 

 

 

183,756

 

 

 

 

 

 

183,756

 

Total Revenue

 

 

 

922,720

 

 

 

 

 

 

922,720

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

ADJ 3

 

 

511,070

 

 

 

6,150

 

 

 

517,220

 

Network Solutions - inventory write-down and other charges

 

 

 

8,597

 

 

 

 

 

 

8,597

 

Services & Support

 

 

 

72,739

 

 

 

 

 

 

72,739

 

Total Cost of Revenue

 

 

 

592,406

 

 

 

6,150

 

 

 

598,556

 

Gross Profit

 

 

 

330,314

 

 

 

(6,150

)

 

 

324,164

 

Selling, general and administrative expenses

 

 

 

233,369

 

 

 

(451

)

 

 

232,918

 

Research and development expenses

 

 

 

221,463

 

 

 

(5

)

 

 

221,458

 

Goodwill impairment

ADJ 4

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Operating Loss

 

 

 

(417,101

)

 

 

(10,464

)

 

 

(427,565

)

Interest and dividend income

 

 

 

3,058

 

 

 

 

 

 

3,058

 

Interest expense

 

 

 

(22,053

)

 

 

 

 

 

(22,053

)

Net investment gain

 

 

 

3,587

 

 

 

 

 

 

3,587

 

Other income, net

 

 

 

246

 

 

 

 

 

 

246

 

Loss Before Income Taxes

 

 

 

(432,263

)

 

 

(10,464

)

 

 

(442,727

)

Income tax expense

ADJ 4

 

 

(8,785

)

 

 

1,445

 

 

 

(7,340

)

Net Loss

 

 

$

(441,048

)

 

$

(9,019

)

 

$

(450,067

)

Less: Net Income attributable to non-controlling interest(1)

 

 

 

9,824

 

 

 

 

 

 

9,824

 

Net Loss attributable to ADTRAN Holdings, Inc.

 

 

$

(450,872

)

 

$

(9,019

)

 

$

(459,891

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

 

78,928

 

 

 

78,928

 

 

 

78,928

 

Weighted average shares outstanding – diluted

 

 

 

78,928

 

 

 

78,928

 

 

 

78,928

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share attributable to ADTRAN Holdings, Inc. – basic

 

 

$

(5.67

)

 

$

(0.12

)

 

$

(5.79

)

Loss per common share attributable to ADTRAN Holdings, Inc. – diluted

 

 

$

(5.67

)

 

$

(0.12

)

 

$

(5.79

)

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(441,048

)

 

$

(9,019

)

 

$

(450,067

)

Other Comprehensive Loss, net of tax

 

 

 

 

 

 

 

 

 

 

Defined benefit plan adjustments

 

 

 

1,479

 

 

 

 

 

 

1,479

 

Foreign currency translation loss

ADJ 3, 4

 

 

(38,047

)

 

 

292

 

 

 

(37,755

)

Other Comprehensive Loss, net of tax

 

 

 

(36,568

)

 

 

292

 

 

 

(36,276

)

Comprehensive Loss, net of tax

 

 

 

(477,616

)

 

 

(8,727

)

 

 

(486,343

)

Less: Comprehensive Income attributable to non-controlling interest, net of tax

 

 

 

9,824

 

 

 

 

 

 

9,824

 

Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax

 

 

$

(487,440

)

 

$

(8,727

)

 

$

(496,167

)

(1) For the year ended December 31, 2024 we accrued $9.8 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA

 

 

 

Year Ended December 31, 2023

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

 

$

974,389

 

 

$

 

 

$

974,389

 

Services & Support

 

 

 

174,711

 

 

 

 

 

 

174,711

 

Total Revenue

 

 

 

1,149,100

 

 

 

 

 

 

1,149,100

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

ADJ 3

 

 

722,582

 

 

 

1,936

 

 

 

724,518

 

Network Solutions - Inventory Write Down

 

 

 

24,313

 

 

 

 

 

 

24,313

 

Services & Support

 

 

 

69,142

 

 

 

 

 

 

69,142

 

Total Cost of Revenue

 

 

 

816,037

 

 

 

1,936

 

 

 

817,973

 

Gross Profit

 

 

 

333,063

 

 

 

(1,936

)

 

 

331,127

 

Selling, general and administrative expenses

 

 

 

258,149

 

 

 

461

 

 

 

258,610

 

Research and development expenses

 

 

 

258,311

 

 

 

 

 

 

258,311

 

Goodwill impairment

 

 

 

37,874

 

 

 

 

 

 

37,874

 

Operating Loss

 

 

 

(221,271

)

 

 

(2,397

)

 

 

(223,668

)

Interest and dividend income

 

 

 

2,340

 

 

 

 

 

 

2,340

 

Interest expense

 

 

 

(16,299

)

 

 

 

 

 

(16,299

)

Net investment gain

 

 

 

2,754

 

 

 

 

 

 

2,754

 

Other income (expense), net

 

 

 

1,266

 

 

 

 

 

 

1,266

 

Loss Before Income Taxes

 

 

 

(231,210

)

 

 

(2,397

)

 

 

(233,607

)

Income tax expense

ADJ 4

 

 

(28,133

)

 

 

(166

)

 

 

(28,299

)

Net Loss

 

 

$

(259,343

)

 

$

(2,563

)

 

$

(261,906

)

Net Income attributable to non-controlling interest (1)

ADJ 1

 

 

8,345

 

 

 

(1,399

)

 

 

6,946

 

Net Loss attributable to ADTRAN Holdings, Inc.

 

 

$

(267,688

)

 

$

(1,164

)

 

$

(268,852

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

 

78,416

 

 

 

78,416

 

 

 

78,416

 

Weighted average shares outstanding – diluted

 

 

 

78,416

 

 

 

78,416

 

 

 

78,416

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share attributable to ADTRAN Holdings, Inc. – basic

 

 

$

(3.41

)

 

$

(0.01

)

 

$

(3.43

)

Loss per common share attributable to ADTRAN Holdings, Inc. – diluted

 

 

$

(3.41

)

 

$

(0.01

)

 

$

(3.43

)

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(259,343

)

 

$

(2,563

)

 

$

(261,906

)

Other Comprehensive Loss, net of tax

 

 

 

 

 

 

 

 

 

 

Net unrealized gain (loss) on available-for-sale securities

 

 

 

454

 

 

 

 

 

 

454

 

Defined benefit plan adjustments

 

 

 

(1,490

)

 

 

 

 

 

(1,490

)

Foreign currency translation gain

ADJ 1

 

 

22,753

 

 

 

69

 

 

 

22,822

 

Other Comprehensive Loss, net of tax

 

 

 

21,717

 

 

 

69

 

 

 

21,786

 

Comprehensive (Loss), net of tax

 

 

 

(237,626

)

 

 

(2,494

)

 

 

(240,120

)

Less: Comprehensive Income attributable to non-controlling interest

ADJ 1

 

 

8,727

 

 

 

(1,399

)

 

 

7,328

 

Comprehensive (Loss) attributable to ADTRAN Holdings, Inc., net of tax

 

 

$

(246,353

)

 

$

(1,095

)

 

$

(247,448

)

(1) For the year ended December 31, 2023, we have recognized $10.1 million, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA partially offset by a $3.2 million net loss attributable to non-controlling interests pre-DPLTA for the year ended December 31, 2023.

The following tables reflect the impact of the restatement to the specific line items presented in the Company's previously reported Consolidated Statement of Changes in Stockholders Equity for the periods ended December 31, 2024 and 2023:

 

 

Retained Deficit

 

 

Accumulated Other Comprehensive Income

 

 

Additional paid-in capital

 

(In thousands)

 

As Reported

 

 

Adjustment

 

 

As Restated

 

 

As Reported

 

 

Adjustment

 

 

As Restated

 

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Balance as of December 31, 2023

 

$

(243,908

)

 

$

12,202

 

 

$

(231,706

)

 

$

47,461

 

 

$

69

 

 

$

47,530

 

 

$

795,304

 

 

$

(836

)

 

$

794,468

 

Net loss

 

 

(441,048

)

 

 

(9,019

)

 

 

(450,067

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annual recurring compensation earned

 

 

(9,824

)

 

 

 

 

 

(9,824

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurement of redeemable non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,175

)

 

 

 

 

 

(1,175

)

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

(36,568

)

 

 

292

 

 

 

(36,276

)

 

 

 

 

 

 

 

 

 

Deferred compensation adjustments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(368

)

 

 

 

 

 

(368

)

ADTRAN RSUs and restricted stock vested

 

 

(1,026

)

 

 

 

 

 

(1,026

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADTRAN stock options exercised

 

 

824

 

 

 

 

 

 

824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Modification of Stock Options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(190

)

 

 

 

 

 

(190

)

Redemption of redeemable non-controlling interest

 

 

2,986

 

 

 

 

 

 

2,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADTRAN stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,825

 

 

 

 

 

 

14,825

 

Adtran Networks stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

517

 

 

 

836

 

 

 

1,353

 

Balance as of December 31, 2024

 

$

(691,996

)

 

$

3,183

 

 

$

(688,813

)

 

$

10,893

 

 

$

361

 

 

$

11,254

 

 

$

808,913

 

 

$

-

 

 

$

808,913

 

 

 

 

Retained Deficit

 

 

Accumulated Other Comprehensive Income

 

 

Additional paid-in capital

 

(In thousands)

 

As Reported

 

 

Adjustment

 

 

As Restated

 

 

As Reported

 

 

Adjustment

 

 

As Restated

 

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Balance as of December 31, 2022

 

$

55,338

 

 

$

 

 

$

55,338

 

 

$

26,126

 

 

$

 

 

$

26,126

 

 

$

895,834

 

 

$

 

 

$

895,834

 

Net loss

 

 

(256,164

)

 

 

(2,563

)

 

 

(258,727

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annual recurring compensation earned

 

 

(11,524

)

 

 

1,399

 

 

 

(10,125

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of Adtran Networks

 

 

 

 

 

3,762

 

 

 

3,762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification and remeasurement from equity to mezzanine equity for non-controlling interests in Adtran Networks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(116,895

)

 

 

 

 

 

(116,895

)

Mezzanine equity for non-controlling interest in Adtran Networks for Adtran Networks stock options exercised

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,175

)

 

 

(1,175

)

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

21,335

 

 

 

69

 

 

 

21,404

 

 

 

 

 

 

 

 

 

 

Dividend payments ($0.09 per share)

 

 

(21,237

)

 

 

 

 

 

(21,237

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends accrued on unvested restricted stock units

 

 

8

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred compensation adjustments, net of tax

 

 

(145

)

 

 

 

 

 

(145

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADTRAN RSUs and restricted stock vested

 

 

(1,115

)

 

 

 

 

 

(1,115

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADTRAN stock options exercised

 

 

164

 

 

 

 

 

 

164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redemption of redeemable non-controlling interest

 

 

371

 

 

 

 

 

 

371

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency remeasurement of redeemable non-controlling interest

 

 

(9,604

)

 

 

9,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adtran Networks stock options exercised

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

323

 

 

 

 

 

 

323

 

Modification of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

339

 

 

 

339

 

ADTRAN stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,016

 

 

 

 

 

 

16,016

 

Adtran Networks stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26

 

 

 

 

 

 

26

 

Balance as of December 31, 2023

 

$

(243,908

)

 

$

12,202

 

 

$

(231,706

)

 

$

47,461

 

 

$

69

 

 

$

47,530

 

 

$

795,304

 

 

$

(836

)

 

$

794,468

 

 

The following tables reflect the impact of the restatement to the specific line items presented in the Company's previously reported Consolidated Statements of Cash Flows for the years ended December 31, 2024 and 2023:

 

 

 

Year Ended December 31, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(441,048

)

 

$

(9,019

)

 

$

(450,067

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

90,985

 

 

 

(456

)

 

 

90,529

 

Goodwill impairment

ADJ 4

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Amortization of debt issuance cost

 

 

 

3,950

 

 

 

 

 

 

3,950

 

Gain on investments

 

 

 

(5,030

)

 

 

 

 

 

(5,030

)

Net loss on disposal of property, plant and equipment

 

 

 

1,371

 

 

 

 

 

 

1,371

 

Stock-based compensation expense

 

 

 

15,342

 

 

 

646

 

 

 

15,988

 

Deferred income taxes

 

 

 

2,247

 

 

 

3,329

 

 

 

5,576

 

Inventory write down - business efficiency program

 

 

 

4,135

 

 

 

 

 

 

4,135

 

Inventory reserves

ADJ 3

 

 

3,980

 

 

 

1,336

 

 

 

5,316

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

 

46,108

 

 

 

 

 

 

46,108

 

Other receivables

 

 

 

10,713

 

 

 

 

 

 

10,713

 

Income taxes receivable

ADJ 4

 

 

648

 

 

 

 

 

 

648

 

Inventory

ADJ 3

 

 

75,171

 

 

 

4,814

 

 

 

79,985

 

Prepaid expenses, other current assets and other assets

 

 

 

(10,718

)

 

 

(2,727

)

 

 

(13,445

)

Accounts payable

 

 

 

11,784

 

 

 

(1,546

)

 

 

10,238

 

Accrued expenses and other liabilities

 

 

 

5,519

 

 

 

(646

)

 

 

4,873

 

Income taxes payable

 

 

 

(4,670

)

 

 

 

 

 

(4,670

)

Net cash provided by operating activities

 

 

 

103,070

 

 

 

501

 

 

 

103,571

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

 

(32,454

)

 

 

(2,047

)

 

 

(34,501

)

Purchases of intangibles - developed technology

 

 

 

(30,671

)

 

 

 

 

 

(30,671

)

Proceeds from sales and maturities of available-for-sale investments

 

 

 

1,240

 

 

 

 

 

 

1,240

 

Purchases of available-for-sale investments

 

 

 

(268

)

 

 

 

 

 

(268

)

Payments for beneficial interests in securitized accounts receivable

 

 

 

(55

)

 

 

 

 

 

(55

)

Net cash used in investing activities

 

 

 

(62,208

)

 

 

(2,047

)

 

 

(64,255

)

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Tax withholdings related to stock-based compensation settlements

 

 

 

(1,143

)

 

 

 

 

 

(1,143

)

Proceeds from stock option exercises

 

 

 

824

 

 

 

 

 

 

824

 

Proceeds from receivables purchase agreement

 

 

 

68,556

 

 

 

 

 

 

68,556

 

Repayments on receivables purchase agreement

 

 

 

(83,772

)

 

 

 

 

 

(83,772

)

Proceeds from draw on revolving credit agreements

 

 

 

26,000

 

 

 

 

 

 

26,000

 

Repayment of revolving credit agreements

 

 

 

(31,000

)

 

 

 

 

 

(31,000

)

Redemption of redeemable non-controlling interest

 

 

 

(17,398

)

 

 

 

 

 

(17,398

)

Payment of annual recurring compensation to non-controlling interest

 

 

 

(10,084

)

 

 

 

 

 

(10,084

)

Payment of debt issuance cost

 

 

 

(1,994

)

 

 

 

 

 

(1,994

)

Net cash used in financing activities

 

 

 

(50,011

)

 

 

 

 

 

(50,011

)

 

 

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

 

 

(9,149

)

 

 

(1,546

)

 

 

(10,695

)

Effect of exchange rate changes

 

 

 

(451

)

 

 

 

 

 

(451

)

Cash and cash equivalents, beginning of period

 

 

 

87,167

 

 

 

 

 

 

87,167

 

Cash and cash equivalents, end of period

 

 

$

77,567

 

 

$

(1,546

)

 

$

76,021

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

 

$

20,884

 

 

$

 

 

$

20,884

 

Cash paid for income taxes, net of refunds

 

 

$

6,691

 

 

$

 

 

$

6,691

 

Cash used in operating activities related to operating leases

 

 

$

9,274

 

 

$

 

 

$

9,274

 

Supplemental disclosure of non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations

 

 

$

5,317

 

 

$

 

 

$

5,317

 

Purchases of property, plant and equipment included in accounts payable

 

 

$

2,635

 

 

$

 

 

$

2,635

 

Redemption of redeemable non-controlling interest

 

 

$

2,986

 

 

$

 

 

$

2,986

 

 

 

 

 

Year Ended December 31, 2023

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(259,343

)

 

$

(2,563

)

 

$

(261,906

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

112,949

 

 

 

 

 

 

112,949

 

Goodwill impairment

 

 

 

37,874

 

 

 

 

 

 

37,874

 

Amortization of debt issuance cost

 

 

 

862

 

 

 

 

 

 

862

 

Accretion on available-for-sale investments, net

 

 

 

(22

)

 

 

 

 

 

(22

)

Gain on investments

 

 

 

(2,900

)

 

 

 

 

 

(2,900

)

Net loss on disposal of property, plant and equipment

 

 

 

458

 

 

 

 

 

 

458

 

Stock-based compensation expense

 

 

 

16,016

 

 

 

365

 

 

 

16,381

 

Deferred income taxes

ADJ 4

 

 

15,558

 

 

 

166

 

 

 

15,724

 

Inventory write down

 

 

 

24,313

 

 

 

 

 

 

24,313

 

Inventory reserves

 

 

 

25,546

 

 

 

 

 

 

25,546

 

Other, net

 

 

 

(2,942

)

 

 

 

 

 

(2,942

)

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

 

65,612

 

 

 

6,708

 

 

 

72,320

 

Other receivables

 

 

 

10,315

 

 

 

 

 

 

10,315

 

Income taxes receivable

 

 

 

(2,637

)

 

 

4,735

 

 

 

2,098

 

Inventory

ADJ 3

 

 

20,537

 

 

 

1,871

 

 

 

22,408

 

Prepaid expenses, other current assets and other assets

 

 

 

(29,883

)

 

 

(2,081

)

 

 

(31,964

)

Accounts payable

 

 

 

(91,907

)

 

 

 

 

 

(91,907

)

Accrued expenses and other liabilities

 

 

 

17,929

 

 

 

(6,612

)

 

 

11,317

 

Income taxes payable

 

 

 

(3,939

)

 

 

 

 

 

(3,939

)

Net cash (used in) provided by operating activities

 

 

 

(45,604

)

 

 

2,589

 

 

 

(43,015

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

 

(33,683

)

 

 

(2,654

)

 

 

(36,337

)

Purchases of intangibles - developed technology

 

 

 

(9,438

)

 

 

 

 

 

(9,438

)

Proceeds from sales and maturities of available-for-sale investments

 

 

 

10,567

 

 

 

 

 

 

10,567

 

Purchases of available-for-sale investments

 

 

 

(868

)

 

 

 

 

 

(868

)

Proceeds from beneficial interests in securitized accounts receivable

 

 

 

1,218

 

 

 

 

 

 

1,218

 

Net cash used in investing activities

 

 

 

(32,204

)

 

 

(2,654

)

 

 

(34,858

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Tax withholdings related to stock-based compensation settlements

 

 

 

(6,458

)

 

 

 

 

 

(6,458

)

Proceeds from stock option exercises

 

 

 

540

 

 

 

 

 

 

540

 

Dividend payments

 

 

 

(21,237

)

 

 

 

 

 

(21,237

)

Proceeds from receivables purchase agreement

 

 

 

14,099

 

 

 

 

 

 

14,099

 

Proceeds from draw on revolving credit agreements

 

 

 

163,733

 

 

 

 

 

 

163,733

 

Repayment of revolving credit agreements

 

 

 

(64,987

)

 

 

 

 

 

(64,987

)

Redemption of redeemable non-controlling interest

 

 

 

(1,224

)

 

 

 

 

 

(1,224

)

Payment of debt issuance cost

 

 

 

(708

)

 

 

 

 

 

(708

)

Repayment of notes payable

 

 

 

(24,891

)

 

 

 

 

 

(24,891

)

Net cash provided by financing activities

 

 

 

58,867

 

 

 

 

 

 

58,867

 

Net decrease in cash and cash equivalents

 

 

 

(18,941

)

 

 

(65

)

 

 

(19,006

)

Effect of exchange rate changes

 

 

 

(2,536

)

 

 

65

 

 

 

(2,471

)

Cash, cash equivalents and restricted cash, beginning of year

 

 

 

108,644

 

 

 

 

 

 

108,644

 

Cash, cash equivalents and restricted cash, end of year

 

 

$

87,167

 

 

$

 

 

$

87,167

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash financing activities

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

 

$

12,596

 

 

$

 

 

$

12,596

 

Cash paid for income taxes, net of refunds

 

 

$

18,552

 

 

$

 

 

$

18,552

 

Cash used in operating activities related to operating leases

 

 

$

9,682

 

 

$

 

 

$

9,682

 

Supplemental disclosure of non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations

 

 

$

17,865

 

 

$

 

 

$

17,865

 

Purchases of property, plant and equipment included in accounts payable

 

 

$

1,298

 

 

$

 

 

$

1,298

 

Redemption of redeemable non-controlling interest

 

 

$

371

 

 

$

 

 

$

371

 

 

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Significant estimates include allowance for credit losses on accounts receivable and contract assets, excess and obsolete inventory reserves, warranty reserves, customer rebates, determination and accrual of the deferred revenue related to performance obligations under contracts with customers, estimated costs to complete obligations associated with deferred and accrued revenue and network installations, estimated income tax provision and income tax contingencies, fair value of stock-based compensation, assessment of goodwill and other intangibles for impairment, estimated lives of intangible assets, estimates of intangible assets upon measurement, estimated pension liability and fair value of investments and estimated contingent liabilities. Actual amounts could differ significantly from these estimates.

We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of ongoing inflationary pressures, continued elevated interest rates, instability in the financial services industry, currency fluctuations and political tensions as of December 31, 2024, and through the date of this report. These conditions could result in further impacts to the Company's consolidated financial statements in future reporting periods. The accounting matters assessed included, but were not limited to, the allowance for credit losses, stock-based compensation, carrying value of goodwill, intangibles and other long-lived assets, financial assets, valuation allowances for tax assets, revenue recognition and costs of revenue.

Summary of Significant Accounting Policies

Cash and Cash Equivalents

Cash and cash equivalents represent demand deposits, money market funds and short-term investments classified as available-for-sale with original maturities of three months or less. We maintain depository investments with certain financial institutions. As of December 31, 2024 $72.4 million of our cash and cash equivalents, primarily certain domestic money market funds and foreign depository accounts, were in excess of government provided insured depository limits. Although these depository investments may exceed government insured depository limits, we have evaluated the credit worthiness of these applicable financial institutions and determined the risk of material financial loss due to the exposure of such credit risk to be minimal.

Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values.

The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments.

The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivatives are included in Note 10.

Investments with contractual maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Despite the long-term nature of their stated contractual maturities, we routinely buy and sell these securities and we believe we have the ability to quickly sell them to the remarketing agent, tender agent or issuer at par value plus accrued interest in the event we decide to liquidate our investment in a particular variable rate demand note. All income generated from these investments is recorded as interest income. We have not recorded any losses relating to variable rate demand notes.

Long-term investments is comprised of our deferred compensation plan assets, marketable equity securities and other equity investments. Marketable equity securities are reported at fair value as determined by the most recently traded price of the securities at the balance sheet date, although the securities may not be readily marketable due to the size of the available market. Any changes in fair value are recognized in net investment gain (loss). Realized gains and losses on sales of debt securities are computed under the specific identification method and are included in other income, net. See Note 4 for additional information.

Accounts Receivable

The Company records accounts receivable at amortized cost. Prior to establishing payment terms for a new customer, we evaluate the credit risk of the customer. Credit limits and payment terms established for new customers are re-evaluated periodically based on customer collection experience and other financial factors. As of December 31, 2024, no customer comprised more than 10% of our

total accounts receivable balance. As of December 31, 2023, a single customer comprised more than 10% of our total accounts receivable balance, which accounted for 12.2% of our total accounts receivable.

The Company regularly reviews the need for an allowance for credit losses related to our outstanding accounts receivable balances using the historical loss-rate method, as well as assessing asset-specific risks. The assessment of asset-specific risks included the evaluation of relevant available information, from internal and external sources, relating to current conditions that may affect a customer’s ability to pay, such as the customer’s current financial condition or credit rating by geographic location, as provided by a third party and/or by customer, if needed, and overall macro-economic conditions in which the customer operates. Based on this assessment, an allowance for credit losses would be recorded if the Company determined that, based on our historical write-offs, which have been immaterial, and such asset specific risks, there was risk in collectability of the full amount of any accounts receivable.

Accounts Receivable Factoring

Receivables Purchase Agreement

On July 1, 2024, the Company entered into a receivables purchase agreement (the “Factoring Agreement”) with a third-party financial institution (the “Factor”), which accelerates receivable collection and helps to better manage cash flow. These transactions are accounted for in accordance with ASC Topic 860 and result in a reduction in accounts receivable because the Factoring Agreement transfers effective control over, and risk related to the receivables to the buyers. Trade accounts receivables balances sold are removed from the Consolidated Balance Sheets and cash received is reflected as cash flows provided by (used in) operating activities in the Consolidated Statements of Cash Flow. Factoring related interest expense is recorded to interest expense on the Consolidated Statements of Loss. On each sale date, the Factor retains from the sale price a default reserve, up to a required balance, which is held by the Factor in a reserve account and pledged to the Company. The Factor is entitled to withdraw from the reserve account the sale price of a defaulted receivable. The balance in the reserve account is included in other assets on the Consolidated Balance Sheets.

Previous Receivables Purchase Agreement

On December 19, 2023, the Company entered into a factoring agreement with a third-party financial institution to sell, on a revolving basis, undivided interests in the Company’s accounts receivable. The factoring agreement qualified for treatment as a secured borrowing with a pledge of collateral under Accounting Standards Codification ("ASC") Topic 810, Consolidations, as the Company was considered the primary beneficiary in a variable interest entity created to hold the factored receivables and the Company retained a residual claim on reserves related to the factored receivables. The receivables factored were carried in accounts receivable, less allowance for credit losses on the Consolidated Balance Sheets, the secured borrowings were carried on the Company’s Consolidated Balance Sheets as a current liability, in accounts payable, proceeds and repayments of the secured borrowings are reflected as cash flows (used in) provided by financing activities in the Consolidated Statements of Cash Flows and program fees are recorded in interest expense in the Company’s Consolidated Statements of Loss. The short-term liability classification of the secured borrowings was based on the estimated timing of the collection of the accounts receivable which were expected to be received within 12 months. The receivables purchase agreement was terminated on July 1, 2024 and there were no secured borrowings under this agreement as of December 31, 2024. See Note 2 for additional information.

Inventory

Inventory is carried at the lower of cost and estimated net realizable value, with cost being determined using the first-in, first-out method. Standard costs for material, labor and manufacturing overhead are used to value inventory and are updated at least quarterly. We establish reserves for estimated excess and obsolete inventory equal to the difference between the cost of the inventory and the estimated net realizable value of the inventory based on estimated reserve percentages, which consider historical usage, known trends, inventory age and market conditions. When we dispose of excess and obsolete inventories, the related disposals are charged against the inventory reserve. See Note 5 for additional information.

Property, Plant and Equipment

Property, plant and equipment, which is stated at cost, is depreciated using the straight-line method over the estimated useful lives of the assets. We depreciate building and land improvements from 5 to 39 years, office machinery and equipment from three to seven years, engineering machinery and equipment from three to seven years, and computer software from three to five years. Expenditures for repairs and maintenance are charged to expense as incurred. Major improvements that materially prolong the lives of the assets are capitalized. Gains and losses on the disposal of property, plant and equipment are recorded in operating loss. See Note 6 for additional information.

Assets Held for Sale

An asset is considered to be held for sale when all the following criteria are met: (i) management commits to a plan to sell the asset; (ii) the asset is available for immediate sale in its present condition; (iii) actions required to complete the sale of the asset have been initiated; (iv) sale of the asset is probable and the completed sale is expected to occur within one year; (v) it is unlikely that the disposal plan will

be significantly modified; and (vi) the asset is actively being marketed for sale at a price that is reasonable given its current market value.

The Company records assets held for sale at the lower of their carrying value or fair value. The total carrying value of assets held for sale was $11.9 million as of December 31, 2024 and is separately recorded on the balance sheet.

Intangible Assets

Purchased intangible assets with finite lives are carried at cost less accumulated amortization. Amortization is recorded over the estimated useful lives of the respective assets. See Note 9 for additional information.

Impairment of Long-Lived Assets and Intangibles

Long-lived assets, such as property, plant and equipment, right of use lease assets and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset or asset group.

During the first quarter of 2024, factors triggered a quantitative impairment assessment for the Network Solutions asset group. The long-lived assets associated with the Network Solutions asset group was approximately $361.5 million as of December 31, 2024

There were no impairment losses for long-lived assets and intangible assets during the years ended December 31, 2024, 2023 and 2022. See Note 9 for additional information.

Goodwill

Goodwill represents the excess purchase price over the fair value of net assets acquired. The Company’s annual impairment assessment is done at the reporting unit level, which we determined are generally the same as our operating segments, which are identified in Note 16 to the Consolidated Financial Statements. We review goodwill for impairment annually during the fourth quarter and also test for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of our reporting units below their carrying amount. Such events and circumstances may include among others: a significant adverse change in legal factors or in the general business climate; significant decline in our stock price and market capitalization; unanticipated competition; the testing for recoverability of a significant asset within the reporting unit; and an adverse action or assessment by a regulator. Any adverse change in these factors could have a significant impact on the recoverability of goodwill and could have a material impact on our consolidated financial statements.

The Company’s annual impairment test date is October 1, 2024. Based on our analysis, management concluded that there was no impairment of goodwill as of that date. Between the annual impairment date of October 1, 2024 and year-end December 31, 2024, there were no additional triggering events.

The Company recognized impairments of $297.4 million and $37.9 million during the years ended December 31, 2024 and 2023, respectively. No goodwill impairment charge was recorded during the year ended December 31, 2022. See Note 8 for additional information.

Other Non-Current Assets

Implementation costs incurred for hosting arrangements that are related to service contracts are capitalized and amortized over the term of the arrangement. Capitalized implementation costs totaled $0.1 million and $0.3 million as of December 31, 2024 and 2023, respectively, and are included in other non-current assets on the Consolidated Balance Sheets. In connection with the planned integration of information technology following the Business Combination, we determined that certain projects no longer fit our needs. The Company recognized impairment charges of $16.9 million during the year ended December 31, 2022 primarily related to capitalized implementation costs for a cloud computing arrangement. The impairment charges were determined based on actual costs incurred. During the year ended December 31, 2024 and 2023, no impairment charges were recognized. We depreciate capitalized implementation costs over various lives. Amortization expense was $0.1 million, $5.9 million and $3.9 million for the years ended December 31, 2024, 2023 and 2022, respectively, which is recorded almost entirely in selling, general and administrative expenses in the Consolidated Statements of Loss.

Pension Benefit Plan Obligations

The Company maintains a defined benefit pension plans covering employees in certain foreign countries. Pension benefit plan obligations are based on various assumptions used by our actuaries in calculating these amounts. These assumptions include discount rates, compensation rate increases, expected return on plan assets, retirement rates and mortality rates. Actual results that differ from the assumptions and changes in assumptions could affect future expenses and obligations. See Note 13 for additional information.

Lease Obligations

The Company has operating leases for office space, automobiles and various other equipment in the U.S. and in certain international locations. Other contracts, such as manufacturing agreements and service agreements, are reviewed to determine if they contain potential embedded leases. These other contracts are specifically reviewed to determine whether we have the right to substantially all of the economic benefit from the use of any specified assets or the right to direct the use of any specified assets, either of which would indicate the existence of a lease. Some of our leases include options to renew. For those leases that are reasonably assured to be renewed, we have included the option to extend as part of our right of use asset and lease liability. The exercise of lease renewal options is at our sole discretion. The depreciable life of leased assets and leasehold improvements are limited by the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet and lease expense for these leases is recognized on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, we elected to not separate lease and non-lease components. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Stock-Based Compensation

The Company has two stock incentive plans from which stock options, performance stock units (“PSUs”), restricted stock units (“RSUs”) and restricted stock are available for grant to employees and directors. Costs related to these awards are recognized over their vesting periods.

Stock-based compensation expense recognized for the years ended December 31, 2024, 2023 and 2022 was approximately $16.0 million, $16.4 million and $28.3 million, respectively. See Note 3 for additional information.

Research and Development Costs

Research and development costs include compensation for engineers and support personnel, contracted services, depreciation and material costs associated with new product development, enhancement of current products and product cost reductions. We continually evaluate new product opportunities and engage in intensive research for product and software development efforts. Research and development costs totaled $221.5 million, $258.3 million and $173.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Adtran Networks has arrangements with governmental entities for the purposes of obtaining funding for research and development activities. The Company classifies government grants received under these arrangements as a reduction to research and development expense incurred. For the years ended December 31, 2024, 2023 and 2022, the Company recognized $9.2 million, $5.2 million and $1.1 million, respectively, as a reduction of research and development expense.

Income Taxes

The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the difference between financial and tax basis of our assets and liabilities and are adjusted for changes in tax rates and tax laws when such changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized.

In determining whether an uncertain tax position exists, the Company determines, based solely on its technical merits, whether the tax position is more likely than not to be sustained upon examination, and if so, a tax benefit is measured on a cumulative probability basis that is more likely than not to be realized upon the ultimate settlement. The Company recognizes interest and penalties related to unrecognized tax benefits through interest expense and income tax expense, respectively.

Foreign Currency

Transactions with customers that are denominated in foreign currencies are recorded using the appropriate exchange rates from throughout the year. Assets and liabilities denominated in foreign currencies are remeasured at the balance sheet dates using the closing rates of exchange between those foreign currencies and the functional currency with any transaction gains or losses reported in other income, net. Our primary exposures to foreign currency exchange rate movements are with our German and United Kingdom subsidiaries, whose functional currencies are the euro and the British pound sterling. Adjustments resulting from translating financial statements of international subsidiaries are recorded as a component of accumulated other comprehensive income.

Revenue

Revenue is measured based on the consideration expected to be received in exchange for transferring goods or providing services to a customer and as performance obligations under the terms of the contract are satisfied. Generally, this occurs with the transfer of control of a product to the customer. For transactions where there are multiple performance obligations, individual products and services are accounted for separately if they are distinct (if a product or service is separately identifiable from other items and if a customer can

benefit from it on its own or with other resources that are readily available to the customer). The consideration, including any discounts, is allocated between separate products and services based on their stand-alone selling prices. Stand-alone selling prices are determined based on the prices at which the separate products and services are sold and are allocated based on each item’s relative value to the total value of the products and services in the arrangement. For items that are not sold separately, we estimate stand-alone selling prices primarily using the “expected cost plus a margin” approach. Payment terms are generally 30 days in the U.S. and typically longer in many geographic markets outside the U.S. Shipping fees collected are recorded as revenue and the related cost is included in cost of revenue. Revenue, value-added and other taxes collected concurrently with revenue-producing activities are excluded from revenue. Incremental costs of obtaining a contract, that are recoverable, are capitalized and amortized over the period that the related revenue is recognized if greater than one year. We have elected to account for shipping fees paid as a cost of fulfilling the related contract. We have also elected to apply the practical expedient related to the incremental costs of obtaining contracts and recognize those costs as an expense when incurred if the amortization period of the assets is one year or less. These costs are included in selling, general and administrative expenses. Capitalized costs with an amortization period greater than one year were immaterial.

Revenue is generated by two reportable segments: Network Solutions and Services & Support.

Network Solutions Segment - Includes hardware products and software defined next-generation virtualized solutions used in Service Provider or business networks, as well as prior generation products. The majority of the revenue from this segment is from hardware revenue.

Hardware and Software Revenue

Revenue from hardware sales is recognized when control is transferred to the customer, which is generally when the products are shipped. Shipping terms are generally FOB shipping point. Revenue from software license sales is recognized at delivery and transfer of control to the customer. Revenue is recognized net of estimated discounts and rebates using historical trends. Customers are typically invoiced when control is transferred and revenue is recognized. Our products generally include assurance-based warranties of 90 days to five years for product defects, which are accrued at the time products are delivered.

Services & Support Segment - Includes a complete portfolio of maintenance, network implementation and solutions integration and managed services, which include hosted cloud services and subscription services to complement our Network Solutions segment.

Maintenance Revenue

Our maintenance service periods range from one month to five years. Customers are typically invoiced and pay for maintenance services at the beginning of the maintenance period. We recognize revenue for maintenance services on a straight-line basis over the maintenance period as our customers benefit evenly throughout the contract term and deferred revenue, when applicable, are recorded in current and non-current unearned revenue.

Network Implementation Revenue

The Company recognizes revenue for network implementation, which primarily consists of engineering, execution and enablement services at a point in time when each performance obligation is complete. If we have recognized revenue but have not billed the customer, the right to consideration is recognized as a contract asset that is included in other receivables on the Consolidated Balance Sheet. The contract asset is transferred to accounts receivable when the completed performance obligation is invoiced to the customer.

See Notes 2 and 16 for additional information on reportable segments.

Unearned Revenue

Unearned revenue primarily represents customer billings on maintenance service programs and unearned revenue related to multiple element contracts where we still have contractual obligations to our customers. We currently offer maintenance contracts ranging from one month to five years. Revenue attributable to maintenance contracts is recognized on a straight-line basis over the related contract term. In addition, we provide software maintenance and a variety of hardware maintenance services to customers under contracts with terms up to ten years. When we defer revenue related to multiple performance obligations where we still have contractual obligations, we also defer the related costs. Current deferred costs are included in prepaid expenses and other current assets on the accompanying Consolidated Balance Sheets and totaled $2.2 million and $2.1 million as of December 31, 2024 and 2023, respectively. Non-current deferred costs included in other non-current assets on the accompanying Consolidated Balance Sheets were less than $0.1 million as of December 31, 2024 and December 31, 2023.

Redeemable Non-Controlling Interest

As of December 31, 2024 and 2023, the non-controlling Adtran Networks stockholders’ equity ownership percentage in Adtran Networks was approximately 33.0% and 34.7%, respectively.

As a result of the effectiveness of the DPLTA on January 16, 2023, the Adtran Networks shares, representing the equity interest in Adtran Networks held by holders other than the Company, can be tendered at any time and are, therefore, redeemable and must be

classified outside stockholders’ equity. Therefore, the permanent equity noncontrolling interest balance was reclassified to redeemable non-controlling interest (RNCI) on January 16, 2023 and was remeasured to fair value based on the trading market price of the Adtran Networks shares.

Subsequently, the carrying value of the RNCI is adjusted to its maximum redemption value at each reporting date when the maximum redemption value is greater than the initial carrying amount of the RNCI. For the period of time that the DPLTA is in effect, the RNCI will continue to be presented as RNCI outside of stockholders’ equity in the Consolidated Balance Sheets. See Note 15 for additional information on RNCI.

Loss per Share

Loss per common share and loss per common share assuming dilution are based on the weighted average number of common shares and, when dilutive, common equivalent shares outstanding during the year. See Note 19 for additional information.

Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $3.0 million effect of redemption of RNCI for the year ended December 31, 2024. See Note 19 for additional information.

Recent Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, as amended by ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which applies to all public business entities and is intended to enhance disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The amendments are effective prospectively in the first annual period beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption and retrospective application are permitted. The Company is currently evaluating the effect that adoption of ASU 2024-03 will have on our disclosures.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", which is intended to enhance the transparency, decision usefulness and effectiveness of income tax disclosures. The amendments in this ASU require a public entity to disclose a tabular tax rate reconciliation, using both percentages and currency, with specific categories. A public entity is also required to provide a qualitative description of the states and local jurisdictions that make up the majority of the effect of the state and local income tax category and the net amount of income taxes paid, disaggregated by federal, state and foreign taxes and also disaggregated by individual jurisdictions. The amendments also remove certain disclosures that are no longer considered cost beneficial. The amendments are effective prospectively for annual periods beginning after December 15, 2024, and early adoption and retrospective application are permitted. The Company is currently evaluating the effect that adoption of ASU 2023-09 will have on our disclosures.

Recently Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-7, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures", which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment's profit or loss to assess potential future cash flows for each reportable segment and the entity as a whole. The amendments expand a public entity's segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), clarifying when an entity may report one or more additional measures to assess segment performance, requiring enhanced interim disclosures, providing new disclosure requirements for entities with a single reportable segment, and requiring other new disclosures. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

The Company adopted the new standard on January 1, 2024. The adoption of this standard resulted in additional footnote disclosures. The adoption of this standard did not have a material impact on our Consolidated Balance Sheet, Consolidated Statement of Income or Consolidated Statement of Cash Flows. See Note 16 for additional information.

There have been no other recently adopted accounting pronouncements that are expected to have a material effect on the Consolidated Financial Statements.

Reclassification of Prior Year Presentation

Certain prior year amounts have been reclassified for consistency with current year presentation. These reclassifications had no effect on reported results of operations. An adjustment has been made to the Consolidated Balance Sheet and Consolidated Statement of Cash Flows for the fiscal year ended December 31, 2023, to reclassify between Property, Plant and Equipment and Intangible Assets.

v3.25.1
Cybersecurity Risk Management, Strategy and Governance
12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Abstract]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Risk Management and Strategy

We recognize the importance of establishing governance and oversight over cybersecurity risks, and we have implemented mechanisms, controls, technologies, and processes designed to help us assess, identify, and manage these risks.

The landscape of cyber threats is constantly evolving, making it increasingly challenging to effectively defend against them or implement sufficient preventative measures. We have observed a rise in the volume, frequency, and sophistication of cyber-attacks. There can be no assurance that our controls and procedures in place to monitor and mitigate the risks of cyber threats, including the remediation of critical information security and software vulnerabilities, will be sufficient and/or timely and that we will not suffer material losses or consequences in the future. Additionally, while we have in place insurance coverage designed to address certain aspects of cyber risks, such insurance coverage may be insufficient to cover all insured losses or all types of claims that may arise. For more information regarding the cybersecurity risks that we face, see “Risks Related to Our Control Environment – Breaches of our information systems and cyberattacks could compromise our intellectual property and cause significant damage to our business and reputation” included as part of our risk factor disclosures in Part I, Item 1A of this report.

We have adopted and continue to maintain a cybersecurity risk management program that implements various controls, technology, and procedures for the evaluation, identification, and handling of significant cybersecurity risks that could impact the confidentiality, integrity, or availability of our information systems.

Our practices include providing ongoing security awareness training for our global workforce, conducting ransomware and phishing simulations, deploying advanced tools for detecting and analyzing anomalous network activities, and implementing robust containment and incident response procedures. We leverage threat intelligence from our security vendors, as well as from trusted sources such as CISA and the FBI, to enhance our defenses and stay ahead of emerging threats. Additionally, we are committed to staying aligned with the latest industry standards and actively participating in industry forums to exchange insights and proactively address evolving cybersecurity challenges.

A critical component of our cybersecurity strategy is the integration of a third-party Security Operations Center support, which monitors our global network environment on a 24/7/365 basis, and is designed to rapidly identify and respond to threats. This program monitors both internally detected and externally reported vulnerabilities that could impact our products, which are then evaluated for their cybersecurity implications according to Company protocols. We also utilize third-party service providers as part of our cybersecurity risk management program and maintain a framework for managing cybersecurity risks presented by our third-party Service Providers. This framework governs the third party’s security management system and mandates that the program (i) adhere to certain information handling and asset management protocols and (ii) promptly notify us of any cybersecurity incidents that impact its systems.

Our enterprise risk management ("ERM") framework is designed to systematically integrate the assessment, identification, and handling of cybersecurity-related risks into our broader risk management strategy. This process involves an annual evaluation of the spectrum of risks facing the enterprise, including those related to cybersecurity. When elevated cybersecurity risks are detected, designated risk owners are tasked with formulating and overseeing the execution of targeted mitigation strategies.

We did not experience any material losses relating to cybersecurity threats or incidents for the year ended December 31, 2024. We are not aware of any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected us or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition.

Governance

Adtran maintains a cybersecurity governance structure led by its Information Security Management "ISM" team, which oversees the Company's cybersecurity risk management efforts. The ISM team ensures that appropriate controls are in place to protect Adtran’s corporate assets, ensuring their availability, confidentiality, and integrity. This risk management approach informs strategic decision-making, resource allocation, and oversight mechanisms. The governance of Adtran’s cybersecurity program is ultimately the responsibility of the Board of Directors, with the Audit Committee providing critical oversight through regular reviews and periodic updates at least quarterly, or more frequently as needed.

The Company’s cybersecurity leadership includes the Chief Information Officer "CIO"/Chief Information Security Officer "CISO", who is responsible for governing and protecting Adtran’s information assets, leading the cybersecurity strategy, and reporting directly to the Chief Executive Officer. The CIO/CISO ensures compliance with ISO 27001, oversees annual external audits, and leads the monthly Information Technology Cybersecurity meetings and the Data Privacy Committee. Since joining Adtran in November 2018, the CIO/CISO has leveraged extensive leadership experience to enhance the company’s security posture. Additionally, the Chief Technology Officer ("CTO"), who joined the company in January 2023 following the Business Combination, plays a key role in product

security oversight, drawing on prior experience as Adtran Networks' CTO leading their product management and advanced technology teams. Our CTO helps oversee our product security programs.

Adtran employs a comprehensive cybersecurity program that integrates proactive risk management strategies to identify, assess, and mitigate cybersecurity threats. Key elements of this program include an Incident Response Plan to manage and resolve security incidents, regular vulnerability scanning to identify and address potential risks, and a structured patch management process to ensure timely remediation of security vulnerabilities. Additionally, the Company has established a dedicated Product Security Incident Response Team (PSIRT) to assess and respond to product security vulnerabilities. To strengthen its security culture, Adtran implements a Cybersecurity Testing and Awareness Program, requiring all employees to participate in quarterly cybersecurity assessments and complete mandatory annual training. This initiative ensures that employees remain well-informed about emerging cybersecurity threats and best practices, reinforcing a proactive security mindset across the organization.

Cybersecurity risk management is integrated into Adtran’s Enterprise Risk Management "ERM" program, in order to provide for continuous oversight and executive engagement. The ERM program undergoes quarterly executive reviews and annual assessments by the Board of Directors, and the Board receives regular briefings on cybersecurity risks, regulatory compliance, and security program updates from management. Key policies include the Information Security Program, which establishes governance principles across facilities, employees, business partners, and customers; the Cybersecurity Framework, which ensures compliance with ISO 27001 and industry standards; employee handbooks outlining security best practices; and the Incident Response Plan, which includes a material impact assessment workflow to support timely regulatory disclosures.

For additional discussion of risks associated with cybersecurity, see “Risk Factors – Breaches of our information systems and cyberattacks could compromise our intellectual property and cause significant damage to our business and reputation.

Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] Our enterprise risk management ("ERM") framework is designed to systematically integrate the assessment, identification, and handling of cybersecurity-related risks into our broader risk management strategy.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

Adtran maintains a cybersecurity governance structure led by its Information Security Management "ISM" team, which oversees the Company's cybersecurity risk management efforts. The ISM team ensures that appropriate controls are in place to protect Adtran’s corporate assets, ensuring their availability, confidentiality, and integrity. This risk management approach informs strategic decision-making, resource allocation, and oversight mechanisms. The governance of Adtran’s cybersecurity program is ultimately the responsibility of the Board of Directors, with the Audit Committee providing critical oversight through regular reviews and periodic updates at least quarterly, or more frequently as needed.

The Company’s cybersecurity leadership includes the Chief Information Officer "CIO"/Chief Information Security Officer "CISO", who is responsible for governing and protecting Adtran’s information assets, leading the cybersecurity strategy, and reporting directly to the Chief Executive Officer. The CIO/CISO ensures compliance with ISO 27001, oversees annual external audits, and leads the monthly Information Technology Cybersecurity meetings and the Data Privacy Committee. Since joining Adtran in November 2018, the CIO/CISO has leveraged extensive leadership experience to enhance the company’s security posture. Additionally, the Chief Technology Officer ("CTO"), who joined the company in January 2023 following the Business Combination, plays a key role in product

security oversight, drawing on prior experience as Adtran Networks' CTO leading their product management and advanced technology teams. Our CTO helps oversee our product security programs.

Adtran employs a comprehensive cybersecurity program that integrates proactive risk management strategies to identify, assess, and mitigate cybersecurity threats. Key elements of this program include an Incident Response Plan to manage and resolve security incidents, regular vulnerability scanning to identify and address potential risks, and a structured patch management process to ensure timely remediation of security vulnerabilities. Additionally, the Company has established a dedicated Product Security Incident Response Team (PSIRT) to assess and respond to product security vulnerabilities. To strengthen its security culture, Adtran implements a Cybersecurity Testing and Awareness Program, requiring all employees to participate in quarterly cybersecurity assessments and complete mandatory annual training. This initiative ensures that employees remain well-informed about emerging cybersecurity threats and best practices, reinforcing a proactive security mindset across the organization.

Cybersecurity risk management is integrated into Adtran’s Enterprise Risk Management "ERM" program, in order to provide for continuous oversight and executive engagement. The ERM program undergoes quarterly executive reviews and annual assessments by the Board of Directors, and the Board receives regular briefings on cybersecurity risks, regulatory compliance, and security program updates from management. Key policies include the Information Security Program, which establishes governance principles across facilities, employees, business partners, and customers; the Cybersecurity Framework, which ensures compliance with ISO 27001 and industry standards; employee handbooks outlining security best practices; and the Incident Response Plan, which includes a material impact assessment workflow to support timely regulatory disclosures.

For additional discussion of risks associated with cybersecurity, see “Risk Factors – Breaches of our information systems and cyberattacks could compromise our intellectual property and cause significant damage to our business and reputation.

Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The governance of Adtran’s cybersecurity program is ultimately the responsibility of the Board of Directors, with the Audit Committee providing critical oversight through regular reviews and periodic updates at least quarterly, or more frequently as needed.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Since joining Adtran in November 2018, the CIO/CISO has leveraged extensive leadership experience to enhance the company’s security posture. Additionally, the Chief Technology Officer ("CTO"), who joined the company in January 2023 following the Business Combination, plays a key role in product

security oversight, drawing on prior experience as Adtran Networks' CTO leading their product management and advanced technology teams. Our CTO helps oversee our product security programs.

Cybersecurity Risk Role of Management [Text Block]

The Company’s cybersecurity leadership includes the Chief Information Officer "CIO"/Chief Information Security Officer "CISO", who is responsible for governing and protecting Adtran’s information assets, leading the cybersecurity strategy, and reporting directly to the Chief Executive Officer. The CIO/CISO ensures compliance with ISO 27001, oversees annual external audits, and leads the monthly Information Technology Cybersecurity meetings and the Data Privacy Committee. Since joining Adtran in November 2018, the CIO/CISO has leveraged extensive leadership experience to enhance the company’s security posture. Additionally, the Chief Technology Officer ("CTO"), who joined the company in January 2023 following the Business Combination, plays a key role in product

security oversight, drawing on prior experience as Adtran Networks' CTO leading their product management and advanced technology teams. Our CTO helps oversee our product security programs.

Adtran employs a comprehensive cybersecurity program that integrates proactive risk management strategies to identify, assess, and mitigate cybersecurity threats. Key elements of this program include an Incident Response Plan to manage and resolve security incidents, regular vulnerability scanning to identify and address potential risks, and a structured patch management process to ensure timely remediation of security vulnerabilities. Additionally, the Company has established a dedicated Product Security Incident Response Team (PSIRT) to assess and respond to product security vulnerabilities. To strengthen its security culture, Adtran implements a Cybersecurity Testing and Awareness Program, requiring all employees to participate in quarterly cybersecurity assessments and complete mandatory annual training. This initiative ensures that employees remain well-informed about emerging cybersecurity threats and best practices, reinforcing a proactive security mindset across the organization.

Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our enterprise risk management ("ERM") framework is designed to systematically integrate the assessment, identification, and handling of cybersecurity-related risks into our broader risk management strategy. This process involves an annual evaluation of the spectrum of risks facing the enterprise, including those related to cybersecurity. When elevated cybersecurity risks are detected, designated risk owners are tasked with formulating and overseeing the execution of targeted mitigation strategies.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] The CIO/CISO ensures compliance with ISO 27001, oversees annual external audits, and leads the monthly Information Technology Cybersecurity meetings and the Data Privacy Committee.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The Company’s cybersecurity leadership includes the Chief Information Officer "CIO"/Chief Information Security Officer "CISO", who is responsible for governing and protecting Adtran’s information assets, leading the cybersecurity strategy, and reporting directly to the Chief Executive Officer. The CIO/CISO ensures compliance with ISO 27001, oversees annual external audits, and leads the monthly Information Technology Cybersecurity meetings and the Data Privacy Committee. Since joining Adtran in November 2018, the CIO/CISO has leveraged extensive leadership experience to enhance the company’s security posture.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.1
Revenue
12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue

Note 2 - Revenue

The following is a description of the principal activities from which revenue is generated by reportable segment:

Network Solutions Segment - Includes hardware and software products that enable a digital future which support the Company's Subscriber, Access and Aggregation, and Optical Networking Solutions.

Services & Support Segment - Includes network design, implementation, maintenance and cloud-hosted services supporting the Company's Subscriber, Access and Aggregation, and Optical Networking Solutions.

Revenue by Category

In addition to operating under two reportable segments, the Company also reports revenue across three categories – Subscriber Solutions, Access & Aggregation Solutions and Optical Networking Solutions.

Our Subscriber Solutions portfolio is used by Service Providers to terminate their access services infrastructure at the customer premises while providing an immersive and interactive experience for residential, business and wholesale subscribers. This revenue category includes hardware- and software-based products and services. These solutions include fiber termination solutions for residential, business and wholesale subscribers, Wi-Fi access solutions for residential and business subscribers, Ethernet switching and network edge virtualization solutions for business subscribers, and cloud software solutions covering a mix of subscriber types.

Our Access & Aggregation Solutions are solutions that are used by communications Service Providers to connect residential subscribers, business subscribers and mobile radio networks to the Service Providers’ metro network, primarily through fiber-based connectivity. This revenue category includes hardware- and software-based products and services. Our solutions within this category are a mix of fiber access and aggregation platforms, precision network synchronization and timing solutions, and access orchestration solutions that ensure highly reliable and efficient network performance.

Our Optical Networking Solutions are used by communications Service Providers, internet content providers and large-scale enterprises to securely interconnect metro and regional networks over fiber. This revenue category includes hardware- and software-based products and services. Our solutions within this category include open optical terminals, open line systems, optical subsystems and modules, network infrastructure assurance systems, and automation platforms that are used to build high-scale, secure and assured optical networks.

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2024:

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

295,541

 

 

$

35,237

 

 

$

330,778

 

Access & Aggregation Solutions

 

 

232,934

 

 

 

58,072

 

 

 

291,006

 

Optical Networking Solutions

 

 

210,489

 

 

 

90,447

 

 

 

300,936

 

Total

 

$

738,964

 

 

$

183,756

 

 

$

922,720

 

 

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2023:

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

263,192

 

 

$

34,516

 

 

$

297,708

 

Access & Aggregation Solutions

 

 

304,074

 

 

 

54,344

 

 

 

358,418

 

Optical Networking Solutions

 

 

407,123

 

 

 

85,851

 

 

 

492,974

 

Total

 

$

974,389

 

 

$

174,711

 

 

$

1,149,100

 

 

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2022:

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

364,238

 

 

$

26,216

 

 

$

390,454

 

Access & Aggregation Solutions

 

 

326,934

 

 

 

47,068

 

 

 

374,002

 

Optical Networking Solutions

 

 

225,621

 

 

 

35,459

 

 

 

261,080

 

Total

 

$

916,793

 

 

$

108,743

 

 

$

1,025,536

 

 

The aggregate amount of transaction price allocated to remaining performance obligations that have not been satisfied as of December 31, 2024 and December 31, 2023 related to contractual maintenance agreements, contractual SaaS and subscription services, and hardware contracts that exceed one year in duration amounted to $325.7 million and 314.8 million, respectively. As of December 31, 2024, approximately 73.0% is expected to be recognized over the next 12 months, and the remainder recognized thereafter. The majority of the Company's remaining performance obligations as of December 31, 2024, are related to contracts or orders that have an original expected duration of one year or less and are excluded from the transaction price related to these future obligations. The Company will generally satisfy the remaining performance obligations as we transfer control of the products ordered or services to our customers, excluding maintenance services, which are satisfied over time.

The following table provides information about accounts receivable, contract assets and unearned revenue from contracts with customers:

 

(In thousands)

 

December 31, 2024
(Restated)

 

 

December 31, 2023
(Restated)

 

Accounts receivable

 

$

178,030

 

 

$

209,737

 

Contract assets(1)

 

$

631

 

 

$

691

 

Unearned revenue

 

$

52,701

 

 

$

42,500

 

Non-current unearned revenue

 

$

22,065

 

 

$

22,632

 

(1) Included in other receivables on the Consolidated Balance Sheets.

Accounts Receivable

The allowance for credit losses were $1.3 million and, $0.4 million as of December 31, 2024, and December 31, 2023, respectively, related to accounts receivable.

Receivables Purchase Agreement

On July 1, 2024, the Company entered into a receivables purchase agreement (the “Factoring Agreement”) with a third-party financial institution (the “Factor”), which accelerates receivable collection and helps to better manage cash flow. Total accounts receivables factored as of the end of December 31 2024, totaled $18.3 million of which $3.7 million was retained pursuant to the Factoring Agreement in the reserve account. The Factoring Agreement provides for up to $40.0 million in factoring capacity, subject to eligible receivables and reserve requirements, secured by the receivables. The balance in the reserve account is included in other assets on the Consolidated Balance Sheets. The cost of the Factoring Agreement is included in interest expense in the Consolidated Statements of Loss and totaled $0.6 million for the year ended December 31, 2024. Costs of a previous receivables purchase agreement which are included in interest expense in the Consolidated Statements of Loss totaled $0.9 million for the year ended December 31, 2023.

Previous Receivable Purchase Agreement

On December 19, 2023, the Company entered into a receivables purchase agreement (the “Prior Factoring Agreement”) with a third-party financial institution (the "Prior Factoring Agreement") to replace a prior accounts receivable purchase agreement and to sell, on a revolving basis, undivided interests in the Company’s accounts receivable. The prior factoring agreement provided for up to $40.0 million in borrowing capacity, subject to eligible receivables and reserve requirements, secured by the receivables. The prior factoring agreement qualified for treatment as a secured borrowing with a pledge of collateral under Accounting Standards Codification ("ASC") Topic 810, Consolidations. The receivables purchase agreement was terminated on July 1, 2024 and there were no secured borrowings under this agreement as of December 31, 2024. Total secured borrowings under the agreement were $14.3 million as of December 31, 2023, which left $25.4 million available for future borrowings as of December 31, 2023. Accounts receivable pledged as collateral related to the secured borrowings were $16.8 million as of December 31, 2023. For the year ended December 31, 2024, the Company incurred program fee expenses of $0.6 million.

Contract Assets

No allowance for credit losses was recorded for the years ended December 31, 2024 and 2023, respectively, related to contract assets.

Unearned Revenue

Of the outstanding unearned revenue balances as of December 31, 2023, $50.5 million were recognized as revenue during the year ended December 31, 2024. Of the outstanding unearned revenue balances as of December 31, 2022, $36.2 million were recognized as revenue during the year ended December 31, 2023.

v3.25.1
Stock-Based Compensation
12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

Note 3 – Stock-Based Compensation

2024 Stock Incentive Plans

At the annual meeting of stockholders held on May 8, 2024, the Company’s stockholders approved, upon recommendation of the Board of Directors, the adoption of the ADTRAN Holdings, Inc. 2024 Employee Stock Incentive Plan (“2024 Employee Plan”) and the ADTRAN Holdings, Inc. 2024 Directors Stock Plan (“2024 Directors Plan”). No additional awards will be granted under the Company’s previous stock incentive plans, including the 2020 Employee Stock Incentive Plan, the 2020 Directors Stock Plan, or the 2015 Employee Stock Incentive Plan. Outstanding awards granted under the Company's prior equity incentive plans will remain subject to the terms of such applicable plans, and shares under such plans that are cancelled or forfeited will be available for issuance under the 2024 Employee Plan or the 2024 Directors Plan, as applicable.

Under the 2024 Employee Plan, the Company is authorized to issue 4.5 million shares of common stock to certain employees, key service providers and advisors through incentive stock options and non-qualified stock options, stock appreciation rights, RSUs and restricted stock, any of which may be subject to performance-based conditions. RSUs and restricted stock granted under the 2024 Employee Plan will typically vest pursuant to a four-year vesting schedule beginning on the first anniversary of the grant date. Stock options granted under the 2024 Employee Plan will typically become exercisable beginning after one year of continued employment, normally pursuant to a four-year vesting schedule beginning on the first anniversary of the grant date and have a ten-year contractual term. Stock options, RSUs and restricted stock granted under the 2024 Employee Plan reduce the shares authorized for issuance under the 2024 Employee Plan by one share of common stock for each share underlying the award. Forfeitures, cancellations and expirations of awards granted under the prior employee stock incentive plans increase the shares authorized for issuance under the 2024 Employee Plan by one share of common stock for each share underlying the award.

Under the 2024 Directors Plan, the Company is authorized to issue 0.6 million shares of common stock through stock options, restricted stock and RSUs to non-employee directors. Stock awards issued under the 2024 Directors Plan typically will become vested in full on the first anniversary of the grant date. Stock options issued under the 2024 Directors Plan will have a ten-year contractual term. Stock options, restricted stock and RSUs granted under the 2024 Directors Plan reduce the shares authorized for issuance under the 2024 Directors Plan by one share of common stock for each share underlying the award. Forfeitures, cancellations and expirations of awards granted under the prior directors stock plan increase the shares authorized for issuance under the 2024 Directors Plan by one share of common stock for each share underlying the award.

As of December 31, 2024, 5.1 million shares were available for issuance pursuant to awards that may be made in the future under stockholder-approved equity plans.

For the years ended December 31, 2024, 2023 and 2022, stock-based compensation expense was $16.0 million, $16.4 million and $28.3 million respectively.

PSUs, RSUs and Restricted Stock - ADTRAN Holdings, Inc.

The following table summarizes stock-based compensation expense related to stock options, PSUs, RSUs and restricted stock for the years ended December 31, 2024, 2023 and 2022:

 

(In thousands)

 

2024
(Restated)

 

 

2023
(Restated)

 

 

2022

 

Stock-based compensation expense included in cost of revenue

 

$

1,142

 

 

$

1,293

 

 

$

2,876

 

Selling, general and administrative expenses

 

 

11,058

 

 

 

11,066

 

 

 

20,844

 

Research and development expenses

 

 

3,788

 

 

 

4,022

 

 

 

4,602

 

Stock-based compensation expense included in operating expenses

 

 

14,846

 

 

 

15,088

 

 

 

25,446

 

Total stock-based compensation expense

 

 

15,988

 

 

 

16,381

 

 

 

28,322

 

Tax benefit for expense associated with non-qualified stock options, PSUs, RSUs and restricted stock

 

 

(1,976

)

 

 

(3,837

)

 

 

(5,152

)

Total stock-based compensation expense, net of tax

 

$

14,012

 

 

$

12,544

 

 

$

23,170

 

 

PSUs, RSUs and restricted stock - ADTRAN Holdings, Inc.

The following table is a summary of our PSUs, RSUs and restricted stock outstanding as of December 31, 2023 and 2024 and the changes that occurred during 2024:

 

 

 

Number of
shares (In thousands)

 

 

Weighted
Average Grant
Date Fair Value
(Per Share)

 

Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2023

 

 

1,942

 

 

$

17.46

 

PSUs, RSUs and restricted stock granted

 

 

1,097

 

 

$

7.85

 

PSUs, RSUs and restricted stock vested

 

 

(575

)

 

$

18.76

 

PSUs, RSUs and restricted stock forfeited

 

 

(129

)

 

$

14.20

 

Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2024

 

 

2,335

 

 

$

13.22

 

The fair value of PSUs with performance conditions, RSUs and restricted stock is equal to the closing price of the Company's stock on the date of grant. The fair value of PSUs with market conditions is calculated using a Monte Carlo simulation valuation method.

The following table details the significant assumptions that impact the fair value estimate of the market-based PSUs:

 

 

 

2024

 

 

2023

 

 

2022

 

Estimated fair value per share

 

$

8.29

 

 

$

19.26

 

 

$

24.01

 

Expected volatility

 

 

51.34

%

 

 

51.52

%

 

 

45.77

%

Risk-free interest rate

 

 

4.12

%

 

 

3.93

%

 

 

4.28

%

Expected dividend yield

 

 

 

 

 

2.55

%

 

 

1.76

%

For market-based PSUs, the number of shares of common stock earned by a recipient is subject to a market condition based on Adtran’s relative total stockholder return against all companies in the NASDAQ Telecommunications Index at the end of a three-year performance period. Depending on the relative total stockholder return over the performance period, the recipient may earn from 0% to 150% of the shares underlying the PSUs, with the shares earned distributed upon the vesting. The fair value of the award is based on the market price of our common stock on the date of grant, adjusted for the expected outcome of the impact of market conditions using a Monte Carlo Simulation valuation method. A portion of the granted PSUs vests and the underlying shares become deliverable upon the death or disability of the recipient or upon a change of control of Adtran, as defined by the 2020 Employee Plan. The recipients of the PSUs receive dividend credits based on the shares of common stock underlying the PSUs. The dividend credits vest and are earned in the same manner as the PSUs and are paid in cash upon the issuance of common stock for the PSUs.

During the year ended December 31, 2024, and 2023, the Company granted 0.1 and 0.9 million performance-based PSUs to its executive officers and certain employees, respectively. The grant-date fair value of these performance-based awards was based on the closing price of the Company’s stock on the date of grant. These awards vest over either a two or three-year period, subject to the grantee’s continued employment, with the ability to earn shares in a range of 0% to either 100% or 150% of the awarded number of PSUs based on the achievement of defined performance targets. Equity-based compensation expense and liabilities with respect to these awards may be adjusted over the vesting period to reflect the probability of achievement of performance targets defined in the award agreements.

During each of the years ended December 2023 and 2022, the Company granted 0.9 and 0.3 million performance-based PSUs to its executive officers and certain employees. The grant-date fair value of these performance-based awards was based on the closing price of the Company’s stock on the date of grant. These awards vested over one-year and two-year periods, respectively, subject to the grantee’s continued employment, with the ability to earn shares in a range of 0% to 142.8% of the awarded number of PSUs based on the achievement of defined performance targets. Equity-based compensation expense with respect to these awards may be adjusted over the vesting period to reflect the probability of achievement of performance targets defined in the award agreements. Pursuant to the Business Combination, the unearned performance-based PSUs converted to time-based RSUs which were treated as an award modification during the third quarter of 2022. This resulted in incremental compensation expense totaling $17.8 million being recognized during the twelve months ended December 31, 2022. These awards were fully vested as of December 31, 2022.

Pursuant to the Business Combination, 0.3 million shares of market-based PSU awards converted to time-based RSU awards which were treated as an award modification during the third quarter of 2022. Given that the fair value of these awards after the modification was less than the fair value of the awards immediately before the modification, no incremental compensation expense was recognized. The Company continued to recognize compensation expense based on the award's original grant date fair value.

The fair value of RSUs and restricted stock is equal to the closing price of our stock on the grant date. RSUs and restricted stock vest ratably over four-year and one-year periods, respectively.

We will continue to assess the assumptions and methodologies used to calculate the estimated fair value of stock-based compensation. If circumstances change, and additional data becomes available over time, we may change our assumptions and methodologies, which may materially impact our fair value determination.

As of December 31, 2024, total unrecognized compensation expense related to the non-vested portion of market-based PSUs, RSUs and restricted stock was approximately $10.7 million, which is expected to be recognized over an average remaining recognition period of 2.1 years. There was $10.9 million of unrecognized compensation expense related to unvested 2024 performance-based PSUs, which will be recognized over the remaining requisite service period of 1 years if achievement of the performance obligation becomes probable. Unrecognized compensation expense will be adjusted for actual forfeitures as they occur.

Stock Options - ADTRAN Holdings, Inc.

The following table is a summary of stock options outstanding as of December 31, 2024 and 2023 and the changes that occurred during 2024:

 

 

Number of
Options
(In thousands)

 

 

Weighted
Average
Exercise Price
(Per share)

 

 

Weighted Average
Remaining
Contractual Life
in Years

 

 

Aggregate
Intrinsic
Value
(In thousands)

 

Stock options outstanding, December 31, 2023

 

 

3,894

 

 

$

10.32

 

 

 

5.25

 

 

$

3,087

 

Stock options exercised

 

 

(139

)

 

$

5.93

 

 

 

 

 

 

 

Stock options forfeited

 

 

(202

)

 

$

6.78

 

 

 

 

 

 

 

Stock options expired

 

 

(609

)

 

$

14.69

 

 

 

 

 

 

 

Stock options outstanding, December 31, 2024

 

 

2,944

 

 

$

9.86

 

 

 

4.98

 

 

$

3,762

 

Stock options exercisable, December 31, 2024

 

 

1,465

 

 

$

8.73

 

 

 

4.18

 

 

$

1,960

 

As of December 31, 2024, there was $3.2 million of unrecognized compensation expense related to stock options which will be recognized over the remaining weighted-average period of 0.9 years. No stock options were granted during 2024.

The determination of the fair value of stock options assumed or granted by Adtran was estimated using the Monte Carlo method and is affected by its stock price, as well as assumptions regarding a number of complex and subjective variables that may have a significant impact on the fair value estimate. The stock option pricing model requires the use of several assumptions that impact the fair value estimate. These variables include, but are not limited to, the volatility of the Company's stock price and employee exercise behaviors.

All of the options were previously issued at exercise prices that approximated fair market value at the date of grant.

The aggregate intrinsic value of stock options represents the total pre-tax intrinsic value (the difference between the Company's closing stock price on the last trading day of the quarter and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2024. The amount of aggregate intrinsic value was $3.8 million as of December 31, 2024, which will change based on the fair market value of the Company's stock. The total pre-tax intrinsic value of options exercised during the years ended December 31, 2024 and 2023 was $0.3 million and $0.1 million, respectively.

The following table further describes our stock options outstanding as of December 31, 2024:

 

 

Options Outstanding

 

 

Options Exercisable

 

Range of
Exercise Prices (Per Share)

 

Options
Outstanding at
December 31, 2024
(In thousands)

 

 

Weighted Average
Remaining
Contractual Life
in Years

 

 

Weighted
Average
Exercise Price
(Per Share)

 

 

Options
Exercisable at
December 31, 2024
(In thousands)

 

 

Weighted
Average
Exercise
Price

 

$5.23 – $5.23

 

 

1,131

 

 

 

8.87

 

 

$

5.23

 

 

 

550

 

 

$

5.23

 

$5.24 – $8.58

 

 

431

 

 

 

1.85

 

 

$

7.86

 

 

 

431

 

 

$

7.86

 

$8.59 – $12.17

 

 

696

 

 

 

2.81

 

 

$

11.57

 

 

 

155

 

 

$

9.49

 

$12.18 – $15.33

 

 

378

 

 

 

1.23

 

 

$

15.33

 

 

 

329

 

 

$

15.33

 

$15.34 – $19.08

 

 

308

 

 

 

4.37

 

 

$

19.08

 

 

 

 

 

$

 

 

 

 

2,944

 

 

 

 

 

 

 

 

 

1,465

 

 

 

 

The Black-Scholes option pricing model (the “Black-Scholes Model”) is used to determine the estimated fair value of stock option awards on the date of grant. The Black-Scholes Model requires the input of certain assumptions that involve judgment. Because our stock options have characteristics significantly different from those of traded options, and because changes in the input assumptions can materially affect the fair value estimate, existing models may not provide reliable measures of fair value of our stock options. The stock

option pricing model requires the use of several assumptions that impact the fair value estimate. These variables include, but are not limited to, the volatility of our stock price and employee exercise behaviors.

The stock option pricing model requires the use of several assumptions that impact the fair value estimate. These variables include, but are not limited to, the volatility of our stock price and employee exercise behaviors.

The weighted-average estimated fair value of stock options granted to employees during the years ended December 31, 2023 was $2.99 per share with the following weighted-average assumptions:

 

 

2023

 

Expected volatility

$

 

51.78

%

Risk-free interest rate

 

 

4.13

%

Expected dividend yield

 

 

 

Expected life (in years)

 

 

5.8

%

 

 

 

 

v3.25.1
Investments
12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Investments

Note 4 – Investments

Debt Securities and Other Investments

The Company did not have any debt securities and other investments as of December 31, 2024.

Realized gains and losses on sales of securities are computed under the specific identification method. The following table presents gross realized gains and losses related to our debt securities for the years ended December 31, 2024, 2023 and 2022:

 

 

For the year ended December 31,

 

(In thousands)

 

2024

 

 

2023

 

 

2022

 

Gross realized gains on debt securities

 

$

 

 

$

9

 

 

$

17

 

Gross realized losses on debt securities

 

 

 

 

 

(355

)

 

 

(1,211

)

Total (loss) gain recognized, net

 

$

 

 

$

(346

)

 

$

(1,194

)

The Company’s investment policy provides limitations for issuer concentration, which limits, at the time of purchase, the concentration in any one issuer to 5% of the market value of the total investment portfolio. The Company did not purchase any available-for-sale debt with credit deterioration during the years ended December 31, 2024, 2023 and 2022.

Marketable Equity Securities

Marketable equity securities consist of publicly traded stock, funds and certain other investments measured at fair value or cost, where appropriate.

Realized and unrealized gains and losses for our marketable equity securities for the year ended December 31, 2024, 2023 and 2022 were as follows:

 

 

 

For the year ended December 31,

 

(In thousands)

 

2024

 

 

2023

 

 

2022

 

Realized gains (losses) on equity securities sold

 

$

277

 

 

$

17

 

 

$

(1,675

)

Unrealized gains (losses) on equity securities held

 

 

3,310

 

 

 

3,083

 

 

 

(8,470

)

Total gain (loss) recognized, net

 

$

3,587

 

 

$

3,100

 

 

$

(10,145

)

 

As of December 31, 2024, gross unrealized losses related to individual investments in a continuous loss position for twelve months or longer were not material.

U.S. GAAP establishes a three-level valuation hierarchy based upon observable and unobservable inputs for fair value measurement of financial instruments:

Level 1 – Observable outputs; values based on unadjusted quoted prices for identical assets or liabilities in an active market;
Level 2 – Significant inputs that are observable; values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly;
Level 3 – Significant unobservable inputs; values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement; inputs could include information supplied by investees.

The Company’s cash equivalents and investments held at fair value are categorized into this hierarchy as follows:

 

 

 

Fair Value Measurements as of December 31, 2024 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices
in Active
Market for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant Unobservable Inputs
(Level 3)

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

5,538

 

 

$

5,538

 

 

$

 

 

$

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities - various industries

 

 

1,068

 

 

 

1,068

 

 

 

 

 

 

 

Deferred compensation plan assets

 

 

30,991

 

 

 

30,991

 

 

 

 

 

 

 

Total

 

$

37,597

 

 

$

37,597

 

 

$

 

 

$

 

 

 

 

Fair Value Measurements as of December 31, 2023 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices
in Active
Market for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant Unobservable Inputs
(Level 3)

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

5,302

 

 

$

5,302

 

 

$

 

 

$

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities - various industries

 

 

905

 

 

 

905

 

 

 

 

 

 

 

Deferred compensation plan assets

 

 

26,838

 

 

 

26,838

 

 

 

 

 

 

 

Total

 

$

33,045

 

 

$

33,045

 

 

$

 

 

$

 

Market prices are obtained from a variety of industry standard data providers, large financial institutions and other third-party sources. These multiple market prices are used as inputs into a distribution-curve-based algorithm to determine the daily market value of each security.

v3.25.1
Inventory
12 Months Ended
Dec. 31, 2024
Inventory Disclosure [Abstract]  
Inventory

Note 5 – Inventory

As of December 31, 2024 and 2023, inventory, net was comprised of the following:

 

(In thousands)

 

2024
(Restated)

 

 

2023
(Restated)

 

Raw materials

 

$

106,384

 

 

$

152,140

 

Work in process

 

 

9,724

 

 

 

17,239

 

Finished goods

 

 

145,449

 

 

 

191,045

 

Total Inventory, net

 

$

261,557

 

 

$

360,424

 

 

Inventory reserves are established for estimated excess and obsolete inventory equal to the difference between the cost of the inventory and the estimated net realizable value of the inventory based on estimated reserve percentages, which consider historical usage, known trends, inventory age and market conditions.

During the twelve months ended December 31, 2024, the Company recorded an inventory write-down of $8.6 million, as a result of a strategy shift which included discontinuance of certain product lines in connection with the Business Efficiency Program of which $4.1 million relates to inventory write-downs and $4.5 million relates to other charges all of which are included in cost of revenue in the Consolidated Statements of Loss. In connection with the Company’s restructuring efforts, during the twelve months ended December 31, 2023, management determined that there would be a discontinuation of product lines in the Network solutions segment and, as a result, wrote-down related inventories of $24.3 million, which is included in cost of revenue in the Consolidated Statements of Loss.

v3.25.1
Property, Plant and Equipment
12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment

Note 6 – Property, Plant and Equipment

As of December 31, 2024 and 2023, property, plant and equipment, net was comprised of the following:

(In thousands)

 

2024
(Restated)

 

 

2023
(Restated)

 

Engineering and other equipment

 

$

184,694

 

 

$

183,336

 

Building

 

 

50,871

 

 

 

79,215

 

Computer hardware and software

 

 

113,241

 

 

 

96,327

 

Building and land improvements

 

 

39,979

 

 

 

58,238

 

Furniture and fixtures

 

 

20,994

 

 

 

21,368

 

Land

 

 

2,989

 

 

 

5,242

 

Total Property, Plant and Equipment

 

 

412,768

 

 

 

443,726

 

Less: accumulated depreciation

 

 

(306,314

)

 

 

(325,569

)

Total Property, Plant and Equipment, net

 

$

106,454

 

 

$

118,157

 

Long-lived assets used in operations are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and the undiscounted cash flows estimated to be generated by the asset are less than the asset’s carrying value. In connection with the planned integration of information technology following the Business Combination, we determined that certain projects no longer fit our needs or strategic plan. As a result, the Company recognized impairment charges of $0.5 million during the year ended December 31, 2022 related to software and web site development. The impairment charges were determined based on actual costs incurred. During the years ended December 31, 2024 and 2023, no impairment charges were recognized.

Depreciation expense was $27.7 million, $30.2 million and $20.9 million for the years ended December 31, 2024, 2023 and 2022, respectively, which is recorded in cost of revenue, selling, general and administrative expenses and research and development expenses in the Consolidated Statements of Loss.

Assets Held For Sale

On December 31, 2024, the Company determined it met the held for sale criteria pursuant to ASC 360, "Impairment and Disposal of Long-Live Assets" on the Company's property located at the North and South Towers in its Huntsville, Alabama campus and ceased recording depreciation on the assets. The Company expects to dispose of the property within the next twelve months.

The Company records assets held for sale at the lower of their carrying value or fair value. The total carrying value of assets held for sale was $11.9 million as of December 31, 2024 and is separately recorded on the balance sheet.

v3.25.1
Leases
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases

Note 7 – Leases

We have operating leases for office space, automobiles and various other equipment in the U.S. and in certain international locations. As of December 31, 2024, our operating leases had remaining lease terms of 1 month to 167 months, some of which included options to extend the leases for up to one year, and some of which included options to terminate the leases within three months. Supplemental balance sheet information related to operating leases is as follows:

 

 

 

 

 

December 31,

 

 

December 31,

 

(In thousands)

 

Classification

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

 

 

Operating lease assets

 

Other non-current assets

 

$

30,342

 

 

$

37,474

 

Total lease asset

 

 

 

$

30,342

 

 

$

37,474

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Current operating lease liability

 

Accrued expenses and other liabilities

 

$

7,154

 

 

$

7,720

 

Non-current lease obligations

 

Non-current lease obligations

 

 

25,925

 

 

 

31,420

 

Total lease liability

 

 

 

$

33,079

 

 

$

39,140

 

Lease expense related to short-term leases was less than $0.2 million for the twelve months ended December 31, 2024 and $0.1 million for the twelve months ended December 31, 2023 and 2022, and is included in cost of revenue, selling, general and administrative expenses and research and development expenses in the Consolidated Statements of Loss. Lease expense related to variable lease payments that do not depend on an index or rate, such as real estate taxes and insurance reimbursements, was $0.3 million, $0.7 million and $0.6 million for the twelve months ended December 31, 2024, 2023 and 2022, respectively.

The components of lease expense included in the Consolidated Statements of Loss were as follows:

 

 

 

For the Year Ended December 31,

 

(In thousands)

 

2024

 

 

2023

 

 

2022

 

Cost of revenue

 

$

150

 

 

$

163

 

 

$

110

 

Research and development expenses

 

 

412

 

 

 

990

 

 

 

942

 

Selling, general and administrative expenses

 

 

9,213

 

 

 

9,708

 

 

 

3,961

 

Total operating lease expense

 

$

9,775

 

 

$

10,861

 

 

$

5,013

 

As of December 31, 2024, operating lease liabilities included on the Consolidated Balance Sheet by future maturity were as follows:

 

(In thousands)

 

Amount

 

2025

 

 

8,829

 

2026

 

 

7,550

 

2027

 

 

6,498

 

2028

 

 

4,980

 

2029

 

 

2,925

 

Thereafter

 

 

10,281

 

Total lease payments

 

 

41,063

 

Less: Interest

 

 

(7,984

)

Present value of lease liabilities

 

$

33,079

 

Future operating lease payments include $5.3 million related to options to extend lease terms that are reasonably certain of being exercised. There are no legally binding leases that have not yet commenced.

An incremental borrowing rate is used based on information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is determined on a portfolio basis by grouping leases with similar terms, as well as grouping leases based on a U.S. dollar or euro functional currency. The following table provides information about our weighted average lease terms and weighted average discount rates:

 

 

 

As of December 31,

 

Weighted average remaining lease term (years)

 

2024

 

 

2023

 

     Operating leases with USD functional currency

 

 

7.3

 

 

 

8.1

 

     Operating leases with EUR functional currency

 

 

5.9

 

 

 

5.8

 

Weighted average discount rate

 

 

 

 

 

 

     Operating leases with USD functional currency

 

 

3.64

%

 

 

3.70

%

     Operating leases with EUR functional currency

 

 

4.50

%

 

 

3.92

%

v3.25.1
Goodwill
12 Months Ended
Dec. 31, 2024
Goodwill Disclosure [Abstract]  
Goodwill

Note 8 – Goodwill

The changes in the carrying amount of goodwill for the year ended December 31, 2024 and December 31, 2023 are as follows:

 

(In thousands)

 

Network Solutions
(Restated)

 

 

Services & Support

 

 

Total
(Restated)

 

As of December 31, 2022 (as previously reported)

 

$

298,280

 

 

$

83,444

 

 

$

381,724

 

Correction of goodwill from business combination with Adtran Networks

 

 

4,735

 

 

 

 

 

 

4,735

 

As of December 31, 2022 (restated)

 

$

303,015

 

 

$

83,444

 

 

$

386,459

 

Goodwill impairment

 

 

 

 

 

(37,500

)

 

 

(37,500

)

Correction of a purchase allocation adjustment

 

 

(9,662

)

 

 

9,662

 

 

 

 

Foreign currency translation adjustments

 

 

8,413

 

 

 

778

 

 

 

9,191

 

As of December 31, 2023 (restated)

 

$

301,766

 

 

$

56,384

 

 

$

358,150

 

Goodwill impairment

 

 

(295,298

)

 

 

 

 

 

(295,298

)

Foreign currency translation adjustments

 

 

(6,468

)

 

 

(3,466

)

 

 

(9,934

)

As of December 31, 2024 (restated)

 

$

 

 

$

52,918

 

 

$

52,918

 

The Company’s annual impairment test date is October 1, 2024. Based on our analysis, management concluded that there was no impairment of goodwill as of that date. Between the annual impairment date of October 1, 2024 and year-end December 31, 2024, there were no additional triggering events.

During the first quarter of 2024, qualitative factors such as a decrease in the Company’s market capitalization, lower service provider spending and delayed holding patterns of inventory with respect to customers caused us to reduce our forecasts, triggering a quantitative impairment assessment for our reporting units. The Company determined the fair value of each reporting unit using a combination of an income approach and a market approach. The significant inputs and assumptions used in the determination of the fair value of our reporting units, based on future cash flows for the reporting units, requires significant judgment and the use of estimates and assumptions related to revenue growth rates, earnings before interest, taxes, depreciation and amortization ("EBITDA") margins, discount rate, peer group determination, revenue and EBITDA market multiple. The Company determined upon its quantitative impairment assessment to recognize a $297.4 million non-cash goodwill impairment charge for the Network Solutions reporting unit. The quantitative impairment analysis indicated there was no impairment of the Services & Support goodwill during the first quarter of 2024.

During 2023, the Company experienced decreased market capitalization and long-term projections. Therefore, an interim impairment test over goodwill was performed as of September 30, 2023. The Company determined the fair value of each reporting unit using a combination of an income approach and a market approach. Management’s determination of the fair value of our reporting units, based on future cash flows for the reporting units, requires significant judgment and the use of estimates and assumptions related to cash flow projections, discount rate, peer group determination and market multiple selection. It was determined that the decreases in projected future cash flows, discount rates, overall macroeconomic conditions, as well as the decrease in our market capitalization applied in the valuation, were required to align with market-based assumptions and company-specific risk, which resulted in lower fair values of the Services & Support reporting unit. As a result of the interim assessment, the Company recorded a goodwill impairment charge of $37.9 million as its estimated fair value was less than its book value on that date. No other goodwill impairment charges were recorded during 2023.

As of December 31, 2024, accumulated goodwill impairment losses in total were $335.3 million.

v3.25.1
Intangible Assets
12 Months Ended
Dec. 31, 2024
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets

Note 9 – Intangible Assets

Intangible assets as of December 31, 2024 and 2023, consisted of the following:

 

 

 

 

2024

 

 

2023

 

(In thousands)

Weighted Average Useful Life
(in years)

 

 

Gross Value

 

 

Accumulated
Amortization

 

 

Net Value

 

 

Gross Value

 

 

Accumulated
Amortization

 

 

Net Value

 

Customer relationships

 

11.0

 

 

$

51,165

 

 

$

(18,778

)

 

$

32,387

 

 

$

54,856

 

 

$

(15,943

)

 

$

38,913

 

Backlog

 

1.7

 

 

 

53,839

 

 

 

(52,258

)

 

 

1,581

 

 

 

57,391

 

 

 

(52,022

)

 

 

5,369

 

Developed technology

 

7.9

 

 

 

346,923

 

 

 

(99,588

)

 

 

247,335

 

 

 

339,189

 

 

 

(61,653

)

 

 

277,536

 

Licensed technology

 

9.0

 

 

 

5,900

 

 

 

(4,452

)

 

 

1,448

 

 

 

5,900

 

 

 

(3,797

)

 

 

2,103

 

Licensing agreements

 

8.5

 

 

 

560

 

 

 

(407

)

 

 

153

 

 

 

560

 

 

 

(368

)

 

 

192

 

Patents

 

7.3

 

 

 

 

 

 

 

 

 

 

 

 

500

 

 

 

(500

)

 

 

 

Trade names

 

3.0

 

 

 

27,851

 

 

 

(25,862

)

 

 

1,989

 

 

 

29,689

 

 

 

(16,379

)

 

 

13,310

 

Total

 

 

 

$

486,238

 

 

$

(201,345

)

 

$

284,893

 

 

$

488,085

 

 

$

(150,662

)

 

$

337,423

 

 

Intangible assets are reviewed for impairment whenever events and circumstances indicate impairment may have occurred. During the first quarter of 2024, qualitative factors such as a decrease in the Company’s market capitalization, cautious service provider spending due to economic uncertainty and continued customer inventory adjustments triggered a quantitative reassessment of our estimated future undiscounted cash flows for the Network Solutions asset group. The significant inputs and assumptions used in the determination of the cash flows expected to be generated by the asset group, requires significant judgment and the use of estimates and assumptions related to revenue growth rates, EBITDA margins, peer group determination, and disposition exit multiple. The Company determined that our estimated future undiscounted cash flows exceeded the carrying value of our asset groups. No impairment losses of intangible assets were recorded during the years ended December 31, 2024, 2023 and 2022.

Amortization expense was $63.0 million, $82.8 million and $47.3 million for the years ended December 31, 2024, 2023 and 2022, respectively, and was included in cost of revenue, selling, general and administrative expenses and research and development expenses in the Consolidated Statements of Loss.

As of December 31, 2024, estimated future amortization expense of intangible assets was as follows:

 

 

 

As of

 

(In thousands)

 

December 31, 2024

 

2025

 

$

56,268

 

2026

 

 

53,231

 

2027

 

 

47,585

 

2028

 

 

40,374

 

2029

 

 

40,028

 

Thereafter

 

 

47,407

 

     Total

 

$

284,893

 

v3.25.1
Hedging
12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Hedging

Note 10 - Hedging

The Company has certain forward rate agreements to hedge foreign currency exposure of expected future cash flows in foreign currency. The Company does not hold or issue derivative instruments for trading or other speculative purposes. Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. All changes in the fair value of derivative instruments are recognized as other income, net in the Consolidated Statements of Loss. The derivative instruments are not subject to master netting agreements and are not offset in the Consolidated Balance Sheets. We are exposed to risk from credit-related losses resulting from nonperformance by counterparties to our financial instruments. We perform credit evaluations of our counterparties under forward exchange contracts and expect all counterparties to meet their obligations. We have not experienced credit losses from our counterparties. As of December 31, 2024, the Company had 39 forward rate contracts outstanding.

Foreign Currency Hedging Agreement

On November 3, 2022, the Company entered into a euro/U.S. dollar forward contract arrangement (the "Initial Forward") with Wells Fargo Bank, N.A. (the “Hedge Counterparty”). The Initial Forward, which was governed by the provisions of an ISDA Master Agreement (including schedules thereto and transaction confirmations that supplement such agreement) entered into between the Company and the Hedge Counterparty, enabling the Company to convert a portion of its euro denominated payment obligations under the proposed DPLTA into U.S. Dollars. Under the Initial Forward, the Company agreed to exchange an aggregate notional amount of €160.0 million for U.S. dollars at a daily fixed forward rate ranging from EUR/USD 0.98286 to 1.03290. The aggregate amount of €160.0 million was divided into eight quarterly tranches of €20.0 million, which commenced in the fourth quarter of 2022. During the twelve months ended December 31, 2024, the Company settled four €20.0 million forward contract tranches.

On March 21, 2023, the Company entered into a euro/U.S. dollar forward contract arrangement (the “Forward”) with the Hedge Counterparty. Under the Forward, which was governed by the provisions of an ISDA Master Agreement (including schedules thereto and transaction confirmations that supplement such agreement) entered into between the Company and the Hedge Counterparty, the Company exchanged an aggregate notional amount of €160.0 million for U.S. dollars at an average rate of EUR/USD 1.085. During the twelve months ended December 31, 2024, the Company settled four $20.0 million forward contract tranches. As of December 31, 2024, both the Initial Forward and Forward have fully matured and are no longer outstanding.

The fair values of the Company's derivative instruments recorded in the Consolidated Balance Sheet as of December 31, 2024 were as follows:

 

(In thousands)

 

Balance Sheet Location

 

December 31, 2024

 

 

December 31, 2023

 

Derivatives Not Designated as Hedging Instruments (Level 2):

 

 

 

 

 

 

 

 

Foreign exchange contracts – derivative assets

 

Other receivables

 

$

565

 

 

$

7,125

 

Foreign exchange contracts – derivative liabilities

 

Accounts payable

 

$

 

 

$

(2,277

)

Total derivatives

 

 

 

$

565

 

 

$

4,848

 

The change in the fair values of the Company's derivative instruments recorded in the Consolidated Statements of Loss during the years ended December 31, 2024, 2023 and 2022 were as follows:
 

(In thousands)

 

Income Statement
Location

 

2024

 

 

2023

 

 

2022

 

Derivatives Not Designated as Hedging Instruments:

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange contracts

 

Other income, net

 

$

2,197

 

 

$

758

 

 

$

10,793

 

v3.25.1
Credit Agreements
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Credit Agreements

Note 11 – Credit Agreements

The carrying amounts of the Company's revolving credit agreements in its Consolidated Balance Sheets were as follows:

 

 

 

As of December 31,

 

(In thousands)

 

2024

 

 

2023

 

Wells Fargo credit agreement

 

$

189,576

 

 

$

195,000

 

Total non-current revolving credit facility

 

$

189,576

 

 

$

195,000

 

As of December 31, 2024 and 2023, the estimated fair value of our revolving credit agreements, approximates the carrying value. As of December 31, 2024 and 2023, the weighted average interest rate on our revolving credit agreements was 8.64% and 7.45%, respectively.

Wells Fargo Credit Agreement

On July 18, 2022, ADTRAN, Inc., as the borrower ("U.S. Borrower"), and the Company entered into a credit agreement with a syndicate of banks, including Wells Fargo Bank, National Association, as administrative agent (“Administrative Agent”), and the other lenders named therein (as amended from time to time, the “Credit Agreement”). Initially, the Credit Agreement allowed for revolving credit borrowings of up to $400.0 million in aggregate principal amount ($100.0 million of which is, subject to the covenants described below, available to Adtran Networks as borrower pursuant to the Subline (as defined and further described below). As of December 31, 2024, the aggregate principal amount was reduced to $374.0 million ($74.0 million of which is available to Adtran Networks as borrower pursuant to the Subline) due to a $26.0 million reduction on the Subline.

On August 9, 2023, ("First Amendment Effective Date") the Company and ADTRAN, Inc. entered into a First Amendment to Credit Agreement (“First Amendment”).

The First Amendment, among other things, increased the available funding from $100.0 million to $400.0 million. In addition, a new $50.0 million delayed draw term loan facility (“DDTL”) was introduced, which (subject to certain conditions) was available for borrowing in the event that at least sixty percent (60.0%) of the outstanding shares of Adtran Networks that were not owned by the Company and its subsidiaries as of the First Amendment Effective Date was tendered (such event, a “Springing Covenant Event”). Upon the occurrence of a Springing Covenant Event, the Company will enter a “Springing Covenant Period”, defined as the fiscal quarter in which a Springing Covenant Event occurs and the three (3) consecutive fiscal quarters thereafter. During the Springing Covenant Period, the Company’s leverage ratios are increased. Although the ability to borrow under the DDTL expired on August 9, 2024, the Springing Covenant Event and Springing Covenant Period remain in effect.

The First Amendment further added additional financial flexibility by permitting, subject to certain requirements, the incurrence of convertible indebtedness by the Company in an aggregate principal amount of up to $172.5 million. Any such convertible indebtedness must, among other things, be incurred in pro forma compliance with the financial covenants in the Credit Agreement, be unsecured, and otherwise rank junior to borrowings under the Credit Agreement, and have a stated maturity date of at least 91 days after the latest scheduled maturity date of loans and commitments under the Credit Agreement. Net cash proceeds from any incurrence of convertible indebtedness must be used to repurchase minority shares of Adtran Networks or repay revolver borrowings under the Credit Agreement.

On January 16, 2024 ("Second Amendment Effective Date"), the Company and ADTRAN, Inc. entered into a Second Amendment to Credit Agreement and First Amendment to Collateral Agreement ("Second Amendment"). The Second Amendment, among other things, introduced the Covenant Relief Period, which provided the Company with additional covenant headroom while imposing a minimum liquidity financial covenant from the end of the fourth quarter of 2023 to the end of the third quarter of 2024. The Covenant Relief Period ended on November 7, 2024.

On March 12, 2024, the Company and ADTRAN, Inc. entered into a Third Amendment to Credit Agreement ("Third Amendment"). The Third Amendment, among other things, amended the definition of “Consolidated Funded Indebtedness” (which is used in the calculation of the Consolidated Total Net Leverage Ratio and the Consolidated Senior Secured Net Leverage Ratio) to exclude obligations of the Company and its subsidiaries under certain factoring arrangements when calculated for the fiscal quarters ending March 31, 2024, and June 30, 2024.

On June 4, 2024, the Company, ADTRAN, Inc., and Adtran Networks entered into a Fourth Amendment to Credit Agreement ("Fourth Amendment"). The Fourth Amendment, among other things, created a new sublimit under the existing $400.0 million revolving commitments, in an aggregate amount of $100.0 million (“Subline”), which Subline is available for borrowings by Adtran Networks. Prepayments of outstanding loans under the Subline that result in the remaining outstanding loans under the Subline being less than the German Commitment Reduction Threshold will result in a permanent partial reduction of the commitments in respect of the Subline. The German Commitment Reduction Threshold is initially $75.0 million and may be lowered from time to time pursuant to the terms of the Fourth Amendment. The existing swing line sublimit and letter of credit sublimit under the Credit Agreement remained available to the US Borrower (and not to Adtran Networks) after giving effect to the Fourth Amendment. Otherwise, the loans under the Subline are subject to substantially the same terms and conditions under the Credit Agreement (including with respect to the interest rate and maturity date) as the other existing revolving commitments.

As of December 31, 2024, Adtran's borrowings under the revolving line of credit were $189.6 million, of which approximately $141.0 million were borrowed by ADTRAN, Inc. and $48.6 million were borrowed under the Subline by Adtran Networks. The credit facilities provided under the Credit Agreement mature in July 2027, but the U.S. Borrower may request extensions subject to customary conditions. In addition, the U.S. Borrower may utilize up to $50.0 million of the $374.0 million total revolving facility for the issuance of letters of credit. As of December 31, 2024, we had a total of 3.6 million in letters of credit under ADTRAN, Inc. outstanding under the Credit Agreement, leaving a net amount (after giving effect to the $189.6 million of outstanding borrowings described above) of $180.8 million available for future borrowings; however, as of December 31, 2024, the Company was limited to additional borrowings of $36.1 million based on debt covenant compliance metrics. Any future credit extensions under the Credit Agreement are subject to customary conditions precedent. The proceeds of any loans are expected to be used for general corporate purposes and to pay a portion of the Exchange Offer consideration. As of December 31, 2024, the Company was in compliance with all covenants.

Revolving Line of Credit Interest Rate

All U.S. dollar borrowings under the revolving line of credit (other than swingline loans, which bear interest at the Base Rate (as defined below plus the applicable margin) bear interest, at the Company’s option, at a rate per annum equal to either (A) the Base Rate plus an applicable margin ranging from 0.65% to 1.65% per annum based on the Company’s Consolidated Total Net Leverage Ratio (or, during the Covenant Relief Period, an applicable margin of 2.15% per annum), or (B) Adjusted Term SOFR (as defined below) plus an applicable margin ranging from 1.65% to 2.65% per annum based on the Company’s Consolidated Total Net Leverage Ratio (or, during the Covenant Relief Period, an applicable margin of 3.15% per annum).

“Base Rate” means the highest of (a) the federal funds rate (i.e., for any day, the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the Federal Reserve Bank of New York on the business day next succeeding such day) plus ½ of 1.0%, (b) the prime commercial lending rate of the Administrative Agent, as established from time to time at its principal U.S. office (which such rate is an index or base rate and will not necessarily be its lowest or best rate charged to its customers or other banks), and (c) the daily Adjusted Term SOFR (as defined in the Credit Agreement) for a one-month tenor plus 1.0%. The Base Rate is subject to a floor of 1.00% per annum.

“Adjusted Term SOFR” means Term SOFR for the applicable interest period plus 0.10% per annum. Adjusted Term SOFR is subject to a floor of 0.00% per annum.

All euro borrowings under the revolving line of credit bear interest at a rate per annum equal to EURIBOR (as defined in the Credit Agreement and subject to a 0.00% per annum floor) plus an applicable margin ranging from 1.75% to 2.75% per annum based on the Company’s Consolidated Total Net Leverage Ratio (or, during the Applicable Margin Increase Period, an applicable margin of 3.25% per annum).

In addition, if on or prior to December 31, 2024 we have not reduced the aggregate revolving credit commitment to $340.0 million or less, the applicable margin for all loans shall be increased by 1.00% per annum, and if on or prior to June 30, 2025 we have not reduced the aggregate revolving credit commitment to $300.0 million or less, the applicable margin for all loans shall be increased by 1.00% per annum.

In addition to paying interest on outstanding principal under the Credit Agreement, the Company is required to pay a quarterly commitment fee to the lenders under the Credit Agreement in respect of unutilized revolving loan commitments on the average daily unused portion of the revolving credit commitment of each lender, which commitment fee ranges from 0.20% to 0.25% per annum based on the Company’s Consolidated Total Net Leverage Ratio (or, during the Covenant Relief Period, is equal to 0.25% per annum). The Company is also required to pay a participation fee to the Administrative Agent for the account of each lender with respect to the Company’s participation in letters of credit at the then applicable rate for Adjusted Term SOFR Loans or EURIBOR Loans, and other customary fronting, issuance and administration fees with respect to letters of credit.

The “Applicable Margin Increase Period” means the period commencing on the Second Amendment Effective Date and ending on the first date when each of the following conditions have been met: (a) the Covenant Relief Period has ended, (b) since the Second Amendment Effective Date, the borrowers have repaid the revolving credit outstanding borrowings by a principal amount of at least $75.0 million, (c) the borrowers have reduced the aggregate revolving credit commitment to an amount no greater than $300.0 million, and (d) the borrowers are in compliance with all financial covenants based on the financial statements for the most recently completed reference period.

Default interest is 2.0% per annum in excess of the rate otherwise applicable.

Covenants Under the Credit Agreement

The financial covenants under the Credit Agreement, as amended, include the following (capitalized terms used in this subsection and not otherwise defined herein have the meanings assigned to them in the Credit Agreement or its amendments, as applicable):

As of the last day of any fiscal quarter, commencing with the fiscal quarter ended December 31, 2023, the Consolidated Total Net Leverage Ratio may not exceed 5.00x.
As of the last day of any fiscal quarter, commencing with the fiscal quarter ended December 31, 2023, the Consolidated Senior Secured Net Leverage Ratio may not exceed:
In the fiscal quarter in which a Springing Covenant Event occurs and the three consecutive quarterly test periods thereafter, (“Springing Covenant Period”), the following covenant levels:
First fiscal quarter ending after a Springing Covenant Event: 4.00x
Second fiscal quarter ending after a Springing Covenant Event: 3.75x
Third and fourth fiscal quarters ending after a Springing Covenant Event: 3.50x
If the Company or any of its subsidiaries incurs certain unsecured indebtedness in excess of $50.0 million in connection with a transaction that is a Springing Covenant Event or during a Springing Covenant Period, the Consolidated Senor Secured Net Leverage Ratio covenant will step down to 3.50x at the time of such incurrence.
If a Springing Covenant Period is not in effect, the Consolidated Senior Secured Net Leverage Ratio may not exceed 3.25x.
As of the last day of any fiscal quarter, commencing with the fiscal quarter ended December 31, 2023, the Consolidated Fixed Charge Coverage Ratio may not be less than 1.25x.
During a Springing Covenant Period, as of the last day of any fiscal quarter (i) cash and cash equivalents of the Credit Parties must be at least $50.0 million and (ii) cash and cash equivalents of the Company and its subsidiaries must be at least $70.0 million.

All obligations under the Credit Agreement (including under the Subline) are guaranteed by ADTRAN, Inc., and certain subsidiaries of ADTRAN, Inc. (“Full Facility Guarantors”). To secure such guarantees, ADTRAN, Inc. and the Full Facility Guarantors have granted security interests in favor of the Administrative Agent over substantially all of their tangible and intangible assets, and ADTRAN, Inc. has granted mortgages in favor of the Administrative Agent over certain owned real estate assets. Certain of Adtran Networks' subsidiaries ("Subline Guarantors") have provided a guarantee solely of the obligations in respect of the Subline. Furthermore, to secure such guarantees, the Subline Guarantors have granted security interests in favor of the Administrative Agent over substantially all of their tangible and intangible assets. Adtran Networks has also granted security interests in favor of the Administrative Agent over substantially all of its tangible and intangible assets, to secure solely its obligations under the Subline. Upon repayment in full and termination of the Subline, the guarantees by the Subline Guarantors and the liens granted by Adtran Networks and the Subline Guarantors to secure obligations under the Subline will be released.

The Credit Agreement, as amended, contains customary affirmative and negative covenants, including incurrence covenants and certain other limitations on the ability of the Company and the Company’s subsidiaries to incur additional debt, guarantee other obligations, grant liens on assets, make investments, dispose of assets, make restricted payments, engage in mergers or consolidations, engage in transactions with affiliates, modify its organizational documents, and enter into certain restrictive agreements. The negative covenants are subject to various exceptions and carveouts. It also contains customary events of default, such as misrepresentation and a default in the performance or observance of any covenant (subject to customary cure periods and materiality thresholds). Upon the occurrence and during the continuance of an event of default, the Administrative Agent is entitled to take various actions, including the acceleration of all amounts due under the Credit Agreement.

v3.25.1
Income Taxes
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

Note 12 – Income Taxes

The components of income tax expense (benefit) for the years ended December 31, 2024, 2023 and 2022 are as follows:

(In thousands)

 

2024
(Restated)

 

 

2023
(Restated)

 

 

2022

 

Current

 

 

 

 

 

 

 

 

 

Federal

 

$

(1,456

)

 

$

2,545

 

 

$

4,572

 

State

 

 

575

 

 

 

26

 

 

 

88

 

International

 

 

2,645

 

 

 

10,004

 

 

 

(4,347

)

Total Current

 

 

1,764

 

 

 

12,575

 

 

 

313

 

 

 

 

 

 

 

 

 

 

 

Deferred

 

 

 

 

 

 

 

 

 

Federal

 

 

357

 

 

 

46,672

 

 

 

(47,429

)

State

 

 

(405

)

 

 

6,607

 

 

 

(6,776

)

International

 

 

5,624

 

 

 

(37,555

)

 

 

(8,183

)

Total Deferred

 

 

5,576

 

 

 

15,724

 

 

 

(62,388

)

Total Income Tax Expense (Benefit)

 

$

7,340

 

 

$

28,299

 

 

$

(62,075

)

 

The effective income tax rate differs from the federal statutory rate due to the following:

 

 

2024
(Restated)

 

 

2023
(Restated)

 

 

2022

 

Tax provision computed at the federal statutory rate

 

 

21.00

%

 

 

21.00

%

 

 

21.00

%

State income tax provision, net of federal benefit

 

 

0.06

 

 

 

1.33

 

 

 

2.60

 

Federal research credits

 

 

0.66

 

 

 

3.23

 

 

 

6.74

 

Foreign taxes

 

 

(0.02

)

 

 

3.20

 

 

 

6.29

 

Tax-exempt income

 

 

0.04

 

 

 

0.06

 

 

 

0.21

 

Change in valuation allowance

 

 

(6.48

)

 

 

(34.83

)

 

 

63.92

 

Non-deductible transaction costs

 

 

 

 

 

 

 

 

(2.74

)

Foreign tax credits

 

 

0.84

 

 

 

2.42

 

 

 

(0.40

)

Stock-based compensation

 

 

(0.39

)

 

 

(0.56

)

 

 

(2.09

)

Withholding taxes

 

 

(0.08

)

 

 

0.01

 

 

 

0.03

 

Adtran Networks tax exempt income

 

 

 

 

 

1.41

 

 

 

 

Return to accrual

 

 

0.59

 

 

 

0.61

 

 

 

0.24

 

Global intangible low-taxed income ("GILTI")

 

 

(3.07

)

 

 

(5.81

)

 

 

(8.08

)

Adtran Networks Goodwill Impairment

 

 

(13.84

)

 

 

(4.57

)

 

 

 

Other, net

 

 

(0.97

)

 

 

0.40

 

 

 

(0.24

)

Effective Tax Rate

 

 

(1.66

)%

 

 

(12.10

)%

 

 

87.48

%

 

Loss before expense (benefit) for income taxes for the years ended December 31, 2024, 2023 and 2022 is as follows:

(In thousands)

 

2024
(Restated)

 

 

2023
(Restated)

 

 

2022

 

U.S. entities

 

$

(71,684

)

 

$

(113,951

)

 

$

(33,720

)

International entities

 

 

(371,043

)

 

 

(119,656

)

 

 

(37,243

)

Total

 

$

(442,727

)

 

$

(233,607

)

 

$

(70,963

)

Loss before expense (benefit) for income taxes for international entities reflects loss based on statutory transfer pricing agreements. This amount does not correlate to consolidated international revenue, which occurs from our U.S. entity.

Deferred income taxes on the Consolidated Balance Sheets result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The significant components of current and non-current deferred taxes as of December 31, 2024 and 2023 consist of the following:

(In thousands)

 

2024
(Restated)

 

 

2023
(Restated)

 

Deferred tax assets:

 

 

 

 

 

 

Inventory

 

$

14,121

 

 

$

19,623

 

Accrued expenses

 

 

845

 

 

 

3,533

 

Deferred compensation

 

 

7,093

 

 

 

6,284

 

Stock-based compensation

 

 

1,770

 

 

 

2,023

 

Uncertain tax positions related to state taxes and related interest

 

 

105

 

 

 

105

 

Goodwill

 

 

3,001

 

 

 

3,496

 

Pensions

 

 

5,121

 

 

 

8,607

 

Foreign losses

 

 

73,162

 

 

 

3,225

 

State losses and credit carry-forwards

 

 

4,901

 

 

 

4,259

 

Federal loss and research carry-forwards

 

 

20,874

 

 

 

78,450

 

Lease liabilities

 

 

6,153

 

 

 

7,701

 

Capitalized research and development expenditures

 

 

43,574

 

 

 

48,192

 

Interest expense limitation

 

 

6,815

 

 

 

 

Valuation allowance

 

 

(115,694

)

 

 

(86,567

)

Total Deferred Tax Assets

 

 

71,841

 

 

 

98,931

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

Property, plant and equipment

 

 

(8,368

)

 

 

(9,093

)

Intellectual property

 

 

(67,923

)

 

 

(86,572

)

Right of use lease assets

 

 

(6,175

)

 

 

(8,424

)

Investments

 

 

(1,921

)

 

 

(1,114

)

Total Deferred Tax Liabilities

 

 

(84,387

)

 

 

(105,203

)

Net Deferred Tax Liabilities

 

$

(12,546

)

 

$

(6,272

)

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. Subsequently, the Internal Revenue Service (“IRS”) released its final GILTI regulations on July 9, 2020. The passage of the CARES Act and subsequent issuance of the GILTI final regulations together resulted in the Company’s recognition of a tax benefit in the amount of $10.8 million during 2020, $7.9 million of which related to the utilization of deferred tax assets which had previously been offset with a valuation allowance and $2.9 million primarily related to the tax rate differential on carrying back losses from 2018 and 2019 tax years to prior years in which the U.S. Corporate tax rate was 35% versus the current 21% federal tax rate.

On December 20, 2021, the Organization for Economic Co-operation and Development (“OECD”) published Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15%. The OECD has since issued administrative guidance providing transition and safe harbor rules around the implementation of the Pillar Two global minimum tax. Many non-U.S. tax jurisdictions have either recently enacted legislation to adopt certain components of the Pillar Two Model Rules beginning in 2024 (including the European Union Member States) with the adoption of additional components in later years or announced their plans to enact legislation in future years. The Pillar Two Model Rules did not have a material impact on the Company’s financial statements for the 2024 tax year. We are still closely monitoring developments and evaluating the potential impact on future periods.

On August 16, 2022, the Inflation Reduction Act of 2022 (“Inflation Reduction Act”) was signed into law, with tax provisions primarily focused on implementing a 15% minimum tax on global adjusted financial statement income (“AFSI”) for corporations with average AFSI exceeding $1 billion over a three-year period, a 1% excise tax on share repurchases and various climate and clean energy tax incentives. The Inflation Reduction Act did not have a material impact on the Company’s financial statements for the 2024 tax year.

As of December 31, 2024 and 2023, non-current deferred taxes reflected deferred taxes on net unrealized gains and losses on available-for-sale investments and deferred taxes on unrealized losses in our pension plan. The net change in non-current deferred taxes associated with these items, which resulted in a deferred tax benefit of $0.2 million and $0.3 million in 2024 and 2023, respectively, was recorded as an adjustment to other comprehensive (loss) income, presented in the Consolidated Statements of Comprehensive (Loss) Income.

The Company continually reviews the adequacy of our valuation allowance and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be realized in accordance with ASC 740, Income Taxes. Due to the decrease in revenue and profitability for 2023 and 2024 and all other positive and negative objective evidence considered as part of our analysis, our ability to consider other subjective evidence such as projections for future growth continues to be limited when evaluating whether our deferred tax assets will be realized. As such, the Company maintains its conclusion from 2023 that it is not more likely than not that our domestic deferred tax assets will be realized and a valuation allowance against certain domestic deferred tax assets remains through 2024. Additional valuation allowance was recorded against certain deferred tax assets on our foreign entities as not more likely than not realizable in the fourth quarter of 2024. The amount of the deferred tax assets considered realizable, however, could be adjusted in future periods in the event sufficient evidence is present to support a conclusion that it is more likely than not that all or a portion of our deferred tax assets will be realized.

As of December 31, 2024 and 2023, the Company had gross deferred tax assets totaling $103.1 million offset by a valuation allowance totaling $115.7 million and gross deferred tax assets totaling $80.3 million offset by a valuation allowance of $86.6 million, respectively. Of the current valuation allowance, $87.0 million was established against our domestic deferred tax assets and the remaining $28.7 million is related to foreign tax assets where we lacked sufficient future source of taxable income to realize those deferred tax assets. The change in our valuation allowance for the year ending December 31, 2024 was an increase of $29.1 million. The change in the valuation allowance was primarily related to the decrease in deferred tax liabilities remaining from the step up in book basis from purchase accounting and the increase in deferred tax assets associated with net operating losses and interest expense limitation during the year.

Supplemental balance sheet information related to deferred tax assets (liabilities) as of December 31, 2024 and 2023 were as follows:

 

 

 

December 31, 2024
(Restated)

 

(In thousands)

 

Deferred Tax Assets (Liabilities)

 

 

Valuation Allowance

 

 

Deferred Tax Assets (Liabilities), net

 

Domestic

 

$

102,002

 

 

$

(87,030

)

 

$

14,972

 

International

 

 

1,146

 

 

 

(28,664

)

 

 

(27,518

)

Total

 

$

103,148

 

 

$

(115,694

)

 

$

(12,546

)

 

 

 

December 31, 2023
(Restated)

 

(In thousands)

 

Deferred Tax Assets (Liabilities)

 

 

Valuation Allowance

 

 

Deferred Tax Assets (Liabilities), net

 

Domestic

 

$

100,700

 

 

$

(84,767

)

 

$

15,933

 

International

 

 

(20,405

)

 

 

(1,800

)

 

 

(22,205

)

Total

 

$

80,295

 

 

$

(86,567

)

 

$

(6,272

)

 

As of December 31, 2024 and 2023, the deferred tax assets for foreign and domestic loss carry-forwards, research and development tax credits, unamortized research and development costs and state credit carry-forwards totaled $142.5 million and $135.6 million, respectively. As of December 31, 2024, $27.7 million of these deferred tax assets will expire at various times between 2025 and 2045. The remaining deferred tax assets will either amortize through 2040 or carryforward indefinitely.

As of December 31, 2024 and 2023, respectively, our cash and cash equivalents were $76.0 million and $87.2 million. Of these amounts, our foreign subsidiaries held cash of $52.6 million and $73.0 million, respectively, representing approximately 78% and 88% of available short-term liquidity, which is used to fund ongoing liquidity needs of these subsidiaries. As part of our restructuring plan, the Company’s assertion on being indefinitely reinvested changed in a particular jurisdiction in a previous year. The Company has a withholding tax liability of $0.4 million as of December 31, 2024 and 2023. The Company maintains its assertion in all other jurisdictions that it is indefinitely reinvesting its funds held in foreign jurisdictions outside of the U.S., except to the extent any of these funds can be repatriated without withholding tax. However, if all of these funds were repatriated to the U.S., or used for U.S. operations, certain amounts could be subject to tax. Due to the timing and circumstances of repatriation of such earnings, if any, it is not practicable to determine the amount of funds subject to unrecognized deferred tax liability.

During 2024, 2023 and 2022, no income tax benefit or expense was recorded for stock options exercised as an adjustment to equity.

The change in the unrecognized income tax benefits for the years ended December 31, 2024, 2023 and 2022 were as follows:

(In thousands)

 

2024

 

 

2023

 

 

2022

 

Balance at beginning of period

 

$

989

 

 

$

17,885

 

 

$

17,836

 

Increases for tax position related to:

 

 

 

 

 

 

 

 

 

Prior years

 

 

 

 

 

 

 

 

 

Current year

 

 

 

 

 

129

 

 

 

123

 

Decreases for tax positions related to:

 

 

 

 

 

 

 

 

 

Prior years

 

 

(121

)

 

 

(17,025

)

 

 

(13

)

Expiration of applicable statute of limitations

 

 

(616

)

 

 

 

 

 

(61

)

Balance at end of period

 

$

252

 

 

$

989

 

 

$

17,885

 

As of December 31, 2024, 2023 and 2022, our total liability for unrecognized tax benefits was $0.3 million, $1.0 million and $17.9 million, respectively, of which $0.3 million, $1.0 million and $17.9 million, respectively, would reduce our effective tax rate if we were successful in upholding all of the uncertain positions and recognized the amounts recorded. We classify interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. As of December 31, 2023 and 2022, the balances of accrued interest and penalties $0.1 million and $0.1 million, respectively. There was no accrued interest and penalties as of December 31, 2024.

We do not anticipate a single tax position generating a significant increase or decrease in our liability for unrecognized tax benefits within 12 months of this reporting date. We file income tax returns in the U.S. for federal and various state jurisdictions and several foreign jurisdictions. We are not currently under audit by the Internal Revenue Service. Generally, we are not subject to changes in income taxes by any taxing jurisdiction for the years prior to 2019.

v3.25.1
Employee Benefit Plans
12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plans

Note 13 – Employee Benefit Plans

Pension Benefit Plan

We maintain a defined benefit pension plans covering employees in certain foreign countries. Pension benefit plan obligations are based on various assumptions used by our actuaries in calculating these amounts. These assumptions include discount rates, compensation rate increases, expected return on plan assets, retirement rates and mortality rates. Actual results that differ from the assumptions and changes in assumptions could affect future expenses and obligations. Details regarding the pension plans are set forth below.

In Germany, there are two defined benefit pension plans and two defined contribution plans. These plans provide benefits in the event of retirement, death or disability. The plan's benefits are based on age, years of service and salary. The defined benefit plans are financed by contributions paid by the Company and the defined contribution plans are financed by contributions paid by the participants.
In Switzerland, there are two defined benefit pension plans. Both plans provide benefits in the event of retirement, death or disability. The plan's benefits are based on age, years of service, salary and on a participant's old age account. The plans are financed by contributions paid by the participants and by the Company.
In Italy, the post-employment benefit plan is required due to statutory provisions. The plan is financed directly by the Company on a pay as you go basis. Employees receive their pension payments as a function of salary, inflation and a notional account.
In Israel, there is a defined benefit pension plan that provides benefits in the event of a participant being dismissed involuntarily, retirement or death. The plan's benefits are based on the higher of the severance benefit required by law or the cash surrender value of the severance benefit component of any qualifying insurance policy or long-term employee benefit fund that is registered in the participants name. The plan is financed by contributions paid by the Company.
In India, the post-employment benefit plan is required due to statutory provisions. The plan is financed directly by the Company on a pay as you go basis.

The pension benefit plan obligations and funded status as of December 31, 2024 and 2023, were as follows:

(In thousands)

 

2024

 

 

2023

 

 

Change in projected benefit obligation:

 

 

 

 

 

 

 

Projected benefit obligation at beginning of period

 

$

67,897

 

 

$

59,344

 

 

Service cost

 

 

1,664

 

 

 

1,579

 

 

Interest cost

 

 

1,902

 

 

 

1,851

 

 

Actuarial (gain) loss - experience

 

 

(238

)

 

 

1,181

 

 

Actuarial loss - assumptions

 

 

860

 

 

 

1,791

 

 

Benefit payments

 

 

(4,108

)

 

 

(1,966

)

 

Plan amendments

 

 

(874

)

 

 

966

 

 

Participant contributions

 

 

429

 

 

 

 

 

Effects of foreign currency exchange rate changes

 

 

(4,273

)

 

 

3,151

 

 

Projected benefit obligation at end of period

 

 

63,259

 

 

 

67,897

 

 

Change in plan assets:

 

 

 

 

 

 

 

Fair value of plan assets at beginning of period

 

 

55,218

 

 

 

48,720

 

 

Actual gain on plan assets

 

 

3,966

 

 

 

3,125

 

 

Contributions

 

 

1,288

 

 

 

1,215

 

 

Benefit payments

 

 

(2,244

)

 

 

(231

)

 

Effects of foreign currency exchange rate changes

 

 

(3,738

)

 

 

2,389

 

 

Fair value of plan assets at end of period

 

 

54,490

 

 

 

55,218

 

 

Unfunded status at end of period

 

$

(8,769

)

 

$

(12,679

)

 

The accumulated benefit obligation was $62.8 million and $67.1 million as of December 31, 2024 and 2023, respectively. The decrease in the accumulated benefit obligation, projected benefit obligation and the actuarial loss was primarily attributable to benefit payments to retirees and the effect of exchange rates during the year.

The net amounts recognized in the Consolidated Balance Sheets for the unfunded pension liability as of December 31, 2024 and 2023 were as follows:

(In thousands)

 

Balance Sheet Location

 

2024

 

 

2023

 

Non-current pension asset

 

Other non-current assets

 

$

517

 

 

$

 

Current pension liability

 

Accrued wages and benefits

 

 

(303

)

 

 

(136

)

Non-current pension liability

 

Non-current pension liability

 

 

(8,983

)

 

 

(12,543

)

Total

 

 

 

$

(8,769

)

 

$

(12,679

)

 

The components of net periodic pension cost, other than the service cost component, are included in other income, net in the Consolidated Statements of Loss. The components of net periodic pension cost and amounts recognized in other comprehensive (loss) income for the years ended December 31, 2024, 2023 and 2022 were as follows:

(In thousands)

 

2024

 

 

2023

 

 

2022

 

Net periodic benefit cost:

 

 

 

 

 

 

 

 

 

Service cost

 

$

1,664

 

 

$

1,579

 

 

$

1,426

 

Interest cost

 

 

1,902

 

 

 

1,851

 

 

 

1,168

 

Expected return on plan assets

 

 

(2,529

)

 

 

(1,750

)

 

 

(2,129

)

Amortization of actuarial losses

 

 

28

 

 

 

26

 

 

 

355

 

Net periodic benefit cost

 

 

1,065

 

 

 

1,706

 

 

 

820

 

Other changes in plan assets and benefit obligations
   recognized in other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

Net actuarial (gain) loss

 

 

(1,640

)

 

 

2,304

 

 

 

(6,549

)

Amortization of actuarial gains (losses)

 

 

233

 

 

 

(145

)

 

 

(113

)

Amount recognized in other comprehensive (income) loss

 

 

(1,407

)

 

 

2,159

 

 

 

(6,662

)

Total recognized in net periodic benefit cost and other
   comprehensive (income) loss

 

$

(342

)

 

$

3,865

 

 

$

(5,842

)

 

The amounts recognized in accumulated other comprehensive loss as of December 31, 2024 and 2023 were as follows:

(In thousands)

 

2024

 

 

2023

 

Net actuarial loss

 

$

(1,824

)

 

$

(3,231

)

 

The defined benefit pension plans are accounted for on an actuarial basis, which requires the use of various assumptions, including an expected rate of return on plan assets and a discount rate. The expected return on our plan's assets is utilized in determining the benefit obligation and net periodic benefit cost is derived from periodic studies, which include a review of asset allocation strategies, anticipated future long-term performance of individual asset classes, risks using standard deviations and correlations of returns among the asset classes that comprise the plans' asset mix. While the studies give appropriate consideration to recent plan performance and historical returns, the assumptions are primarily long-term, prospective rates of return. The discount rate has been derived from the returns of high-quality, corporate bonds denominated in euro currency with durations close to the duration of our pension obligations.

The weighted-average assumptions that were used to determine the net periodic benefit cost for the years ended December 31, 2024, 2023 and 2022 were as follows:

 

 

2024

 

 

2023

 

 

2022

 

Discount rate

 

 

2.84

%

 

 

3.17

%

 

 

3.24

%

Rate of compensation increase

 

 

1.54

%

 

 

2.22

%

 

 

2.17

%

Expected long-term rates of return

 

 

4.85

%

 

 

4.83

%

 

 

4.65

%

 

The weighted-average assumptions that were used to determine the benefit obligation as of December 31, 2024 and 2023:

 

 

2024

 

 

2023

 

 

Discount rate

 

 

2.73

%

 

 

2.84

%

 

Rate of compensation increase

 

 

1.54

%

 

 

2.22

%

 

 

Actuarial gains and losses are recorded in accumulated other comprehensive income. To the extent unamortized gains and losses exceed 10% of the higher of the market-related value of assets or the projected benefit obligation, the excess is amortized as a component of net periodic pension cost over the remaining service period of active participants.

The Company anticipates making approximately $2.0 million in contributions to the pension plans in 2025.

The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid to participants:

 

(In thousands)

 

 

 

2025

 

$

3,032

 

2026

 

 

3,214

 

2027

 

 

3,906

 

2028

 

 

3,346

 

2029

 

 

4,352

 

2030 - 2034

 

 

18,834

 

Total

 

$

36,684

 

 

U.S. GAAP establishes a three-level valuation hierarchy based upon observable and unobservable inputs for fair value measurement of financial instruments:

Level 1 – Observable outputs; values based on unadjusted quoted prices for identical assets or liabilities in an active market;
Level 2 – Significant inputs that are observable; values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly;
Level 3 – Significant unobservable inputs; values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs could include information supplied by investees.

We have categorized our cash equivalents and our investments held at fair value into this hierarchy as follows:

 

 

Fair Value Measurements at December 31, 2024 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Cash and cash equivalents

 

$

753

 

 

$

753

 

 

$

 

 

$

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

Bond funds

 

 

18,058

 

 

 

16,867

 

 

 

1,191

 

 

 

 

Equity funds

 

 

21,376

 

 

 

21,183

 

 

 

193

 

 

 

 

Other funds

 

 

7,406

 

 

 

6,089

 

 

 

1,317

 

 

 

 

Real estate funds

 

 

6,897

 

 

 

1,737

 

 

 

2,106

 

 

 

3,054

 

Available-for-sale securities

 

 

53,737

 

 

 

45,876

 

 

 

4,807

 

 

 

3,054

 

Total

 

$

54,490

 

 

$

46,629

 

 

$

4,807

 

 

$

3,054

 

 

 

 

Fair Value Measurements at December 31, 2023 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Cash and cash equivalents

 

$

987

 

 

$

987

 

 

$

 

 

$

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

Bond funds

 

 

20,155

 

 

 

18,840

 

 

 

1,315

 

 

 

-

 

Equity funds

 

 

21,525

 

 

 

21,288

 

 

 

237

 

 

 

 

Other funds

 

 

6,054

 

 

 

5,343

 

 

 

711

 

 

 

 

Insurance contracts

 

 

353

 

 

 

 

 

 

353

 

 

 

 

Real estate funds

 

 

6,144

 

 

 

546

 

 

 

2,326

 

 

 

3,272

 

Available-for-sale securities

 

 

54,231

 

 

 

46,017

 

 

 

4,942

 

 

 

3,272

 

Total

 

$

55,218

 

 

$

47,004

 

 

$

4,942

 

 

$

3,272

 

 

Our investment policy includes various guidelines and procedures designed to ensure assets are invested in a manner necessary to meet expected future benefits earned by participants and consider a broad range of economic conditions. The objectives of the target allocations are to maintain investment portfolios that diversify risk through prudent asset allocation parameters, achieve asset returns that meet or exceed the plans’ actuarial assumptions and achieve asset returns that are competitive with like institutions employing similar investment strategies.

The investment policy is periodically reviewed by the Company and a designated third-party fiduciary for investment matters. The policy is established and administered in a manner that is compliant at all times with applicable government regulations.

401(k) Savings Plans

We maintain the ADTRAN, Inc. 401(k) Retirement Plan and the Adtran Networks SE 401(k) Retirement Plan (the “Savings Plans”) for the benefit of eligible employees. The Savings Plans are intended to qualify under Sections 401(a) and 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), and is intended to be a “safe harbor” 401(k) plan under Code Section 401(k)(12). The Savings Plans allows employees to save for retirement by contributing part of their compensation to the plan on a tax-deferred basis. The Savings Plans also requires us to contribute a “safe harbor” amount each year. In our legacy ADTRAN, Inc. plan, we match up to 4% of employee contributions (100% of an employee’s first 3% of contributions and 50% of their next 2% of contributions), beginning on the employee’s one-year anniversary date. All matching contributions under the legacy ADTRAN, Inc. Savings Plan vest immediately. In our legacy Adtran Networks, plan, we match up to 1.5% of employee contributions (25% of an employee's first 6% of contributions). All matching contributions under the legacy Adtran Networks Savings Plan vest ratably over five years beginning on the employee's one-year anniversary date. In addition, under the legacy Adtran Networks plan, an annual matching employer contribution is made which is based on the Company's achievement against a yearly relative Pro-forma EBIT target which can range from no additional match up to an additional 50% match. In calculating our matching contributions, compensation up to the statutory maximum under the Code is used ($345,000 for 2024). Employer contribution expense and plan administration costs for both Savings Plan amounted to approximately $3.5 million, $4.2 million and $4.1 million in 2024, 2023 and 2022, respectively.

Deferred Compensation Plans

We maintain two deferred compensation programs for certain executive management employees.

The ADTRAN, Inc. Deferred Compensation Program for Employees is offered as a supplement to our tax-qualified 401(k) plan and is available to certain executive management employees who have been designated by our Board of Directors. This deferred compensation plan allows participants to defer all or a portion of certain specified bonuses and up to 25% of remaining cash compensation and permits us to make matching contributions on a discretionary basis without the limitations that apply to the 401(k) plan. To date, we have not made any matching contributions under this plan. We also maintain the ADTRAN, Inc. Equity Deferral Program for Employees. Under this plan, participants may elect to defer all or a portion of their vested PSUs and RSUs to the plan. Such deferrals shall continue to be held and deemed to be invested in shares of Adtran stock unless and until the amounts are distributed or such deferrals are moved to another deemed investment pursuant to an election made by the participant.

We have set aside the plan assets for all plans in a rabbi trust (the “Trust”) and all contributions are credited to bookkeeping accounts for the participants. The Trust assets are subject to the claims of our creditors in the event of bankruptcy or insolvency. The assets of the Trust are deemed to be invested in pre-approved mutual funds as directed by each participant and the participant’s bookkeeping account is credited with the earnings and losses attributable to those investments. Benefits are scheduled to be distributed six months after termination of employment in a single lump sum payment or annual installments paid over a three or ten-year term based on the participant’s election. Distributions will be made on a pro-rata basis from each of the hypothetical investments of the participant’s account in cash. Any whole shares of ADTRAN, Inc. common stock that are distributed will be distributed in-kind.

Assets of the Trust are deemed invested in mutual funds that cover an investment spectrum ranging from equities to money market instruments. These mutual funds are publicly quoted and reported at fair value. The fair value of the assets held by the Trust and the amounts payable to the plan participants as of December 31, 2024 and 2023 were as follows:

(In thousands)

 

2024

 

 

2023

 

Fair Value of Plan Assets

 

 

 

 

 

 

Long-term investments

 

$

30,991

 

 

$

26,838

 

Total Fair Value of Plan Assets

 

$

30,991

 

 

$

26,838

 

Amounts Payable to Plan Participants

 

 

 

 

 

 

Deferred compensation liability

 

$

33,203

 

 

$

29,039

 

Total Amounts Payable to Plan Participants

 

$

33,203

 

 

$

29,039

 

 

The Trust held $2.2 million of common stock in the Company as of December 31, 2024 and 2023. Shares of the Company held by the Trust are recorded at cost and classified as treasury stock on the Consolidated Balance Sheet.

Interest and dividend income of the Trust are included in interest and dividend income in the accompanying 2024, 2023 and 2022 Consolidated Statements of Loss. Changes in the fair value of the plan assets held by the Trust have been included in other income, net in the accompanying 2024, 2023 and 2022 Consolidated Statements of Loss. Changes in the fair value of the deferred compensation liability are included as selling, general and administrative expense in the accompanying 2024, 2023 and 2022 Consolidated Statements of Loss. Based on the changes in the total fair value of the Trust’s assets, the Company recorded deferred compensation income in 2024, 2023 and 2022 of $3.4 million, $3.0 million and $6.3 million, respectively.

v3.25.1
Equity
12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Equity

Note 14 – Equity

The following table presents changes in accumulated other comprehensive income (loss), net of tax, by components of accumulated other comprehensive income (loss) for the years ended December 31, 2024, 2023 and 2022:

 

(In thousands)

 

Unrealized
Gains (Losses)
on Available-
for-Sale
Securities

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency
Adjustments

 

 

ASU 2018-02 Adoption (1)

 

 

Total

 

Balance as of December 31, 2022

 

 

(836

)

 

 

(1,016

)

 

 

27,593

 

 

 

385

 

 

 

26,126

 

Other comprehensive (loss) income before reclassifications

 

 

734

 

 

 

(1,590

)

 

 

22,822

 

 

 

 

 

 

21,966

 

Amounts reclassified from accumulated other comprehensive (loss) income

 

 

(280

)

 

 

100

 

 

 

 

 

 

 

 

 

(180

)

Net current period other comprehensive income (loss)

 

 

454

 

 

 

(1,490

)

 

 

22,822

 

 

 

 

 

 

21,786

 

Less: Other comprehensive income attributable to non-controlling interest, net of tax

 

 

 

 

 

 

 

 

382

 

 

 

 

 

 

382

 

Balance as of December 31, 2023 (Restated)

 

 

(382

)

 

 

(2,506

)

 

 

50,033

 

 

 

385

 

 

 

47,530

 

Other comprehensive (loss) income before reclassifications

 

 

(160

)

 

 

1,640

 

 

 

(37,755

)

 

 

 

 

 

(36,275

)

Amounts reclassified from accumulated other comprehensive income (loss)

 

 

160

 

 

 

(161

)

 

 

 

 

 

 

 

 

(1

)

Net current period other comprehensive income (loss)

 

 

 

 

 

1,479

 

 

 

(37,755

)

 

 

 

 

 

(36,276

)

Balance as of December 31, 2024 (Restated)

 

$

(382

)

 

$

(1,027

)

 

$

12,278

 

 

$

385

 

 

$

11,254

 

(1)
With the adoption of ASU 2018-02 on January 1, 2019, stranded tax effects related to the Tax Cuts and Jobs Act of 2017 were reclassified to retained earnings.

 

The following tables present the details of reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2024, 2023 and 2022:

 

(In thousands)

 

For the year ended December 31,

 

 

 

Details about Accumulated Other Comprehensive (Loss)
Income Components

 

2024

 

 

2023

 

 

2022

 

 

Affected Line Item in the
Statement Where Net Loss Is Presented

Unrealized gains (loss) on available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on sales of securities

 

$

216

 

 

$

(378

)

 

$

(328

)

 

Net investment gain

Defined benefit plan adjustments – actuarial (loss) gain

 

 

(233

)

 

 

145

 

 

 

113

 

 

(1)

Total reclassifications for the period, before tax

 

 

(17

)

 

 

(233

)

 

 

(215

)

 

 

Tax expense

 

 

16

 

 

 

53

 

 

 

50

 

 

 

Total reclassifications for the period, net of tax

 

$

(1

)

 

$

(180

)

 

$

(165

)

 

 

 

(1)
Included in the computation of net periodic pension cost. See Note 13 for additional information.

The following tables present the tax effects related to the change in each component of other comprehensive income (loss) for the years ended December 31, 2024, 2023 and 2022:

 

 

 

2024
(Restated)

 

(In thousands)

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

Unrealized (losses) gains on available-for-sale securities

 

$

(216

)

 

$

56

 

 

$

(160

)

Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss)

 

 

216

 

 

 

(56

)

 

 

160

 

Defined benefit plan adjustments

 

 

1,640

 

 

 

 

 

 

1,640

 

Reclassification adjustment for amounts related to defined benefit plan adjustments included in net (loss) income

 

 

(233

)

 

 

72

 

 

 

(161

)

Foreign currency translation adjustment

 

 

(37,755

)

 

 

 

 

 

(37,755

)

Total Other Comprehensive Loss

 

$

(36,348

)

 

$

72

 

 

$

(36,276

)

 

 

 

2023
(Restated)

 

(In thousands)

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

Unrealized gains (losses) on available-for-sale securities

 

$

992

 

 

$

(258

)

 

$

734

 

Reclassification adjustment for amounts related to available-for-sale investments included in net (loss) income

 

 

(378

)

 

 

98

 

 

 

(280

)

Defined benefit plan adjustments

 

 

(2,304

)

 

 

714

 

 

 

(1,590

)

Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss)

 

 

145

 

 

 

(45

)

 

 

100

 

Foreign currency translation adjustment

 

 

22,822

 

 

 

 

 

 

22,822

 

Total Other Comprehensive Income

 

$

21,277

 

 

$

509

 

 

$

21,786

 

 

 

 

2022

 

(In thousands)

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

Unrealized (losses) gains on available-for-sale securities

 

$

(55

)

 

$

14

 

 

$

(41

)

Reclassification adjustment for amounts related to available-for-sale investments included in net (loss) income

 

 

(328

)

 

 

85

 

 

 

(243

)

Defined benefit plan adjustments

 

 

6,549

 

 

 

(2,030

)

 

 

4,519

 

Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss)

 

 

113

 

 

 

(35

)

 

 

78

 

Foreign currency translation adjustment

 

 

53,396

 

 

 

 

 

 

53,396

 

Total Other Comprehensive Income (Loss)

 

$

59,675

 

 

$

(1,966

)

 

$

57,709

 

 

v3.25.1
Redeemable Non-controlling Interest
12 Months Ended
Dec. 31, 2024
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract]  
Redeemable Non-controlling Interest

Note 15 – Redeemable Non-Controlling Interest

As of December 31, 2024 and 2023, the non-controlling Adtran Networks stockholders’ equity ownership percentage in Adtran Networks was approximately 33.0% and 34.7%, respectively.

The following table summarizes the redeemable non-controlling interest activity for the year ended December 31, 2024 and 2023:

 

 

 

For the year ended December 31,

 

 

(In thousands)

 

2024

 

 

2023
(Restated)

 

 

Balance at beginning of period

 

$

443,327

 

 

$

 

 

Reclassification of non-controlling interests

 

 

 

 

 

443,757

 

 

Non-controlling interests in Adtran Holdings related to stock options exercised

 

 

 

 

 

1,175

 

 

Redemption of redeemable non-controlling interests

 

 

(20,384

)

 

 

(1,657

)

 

Net income attributable to redeemable non-controlling interests

 

 

9,824

 

 

 

10,092

 

 (1)

Annual recurring compensation earned

 

 

(9,824

)

 

 

(10,092

)

 (1)

Adtran Networks stock option exercises

 

 

 

 

 

52

 

 

Balance at end of period

 

$

422,943

 

 

$

443,327

 

 (1)

(1) During the third quarter of 2024, the Company identified errors primarily impacting the carrying values of the redeemable non-controlling interest, retained deficit, the net income attributable to the non-controlling interest and the net loss attributable to the Company and, as a consequence, of the loss per common share attributable to the Company. We have restated issued Consolidated Financial Statements for the year ended December 31, 2023. See Note 1 for additional information.

Annual Recurring Compensation payable on untendered outstanding shares under the DPLTA must be recognized as it is accrued. For the years ended December 31, 2024 and 2023, we accrued $9.8 million and $10.1 million, respectively, representing the portion of the annual recurring cash compensation cash to the non-controlling shareholders during such periods. The 2024 Annual Recurring Compensation accrual will be paid after the ordinary general shareholders' meeting of Adtran Networks in 2025. For the year ended December 31, 2023, we paid $10.1 million representing the portion of the annual recurring cash compensation to the non-controlling shareholders during such period. See Note 1 for additional information on RNCI and the Annual Recurring Compensation.

v3.25.1
Segment Information and Major Customers
12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information and Major Customers

Note 16 – Segment Information and Major Customers

The chief operating decision maker is the Company's Chief Executive Officer who regularly reviews the Company’s financial performance based on two reportable segments: (1) Network Solutions and (2) Services & Support.

The Network Solutions segment includes hardware and software products that enable a digital future which support the Company's Subscriber, Access and Aggregation, and Optical Networking Solutions. The Company's cloud-managed Wi-Fi gateways, virtualization software, and switches provide a mix of wired and wireless connectivity at the customer premises. In addition, its Carrier Ethernet products support a variety of applications at the network edge ranging from mobile backhaul to connecting enterprise customers (“Subscriber Solutions"). The Company's portfolio includes products for multi-gigabit service delivery over fiber or alternative media to homes and businesses.

The Services & Support segment offers a comprehensive portfolio of network design, implementation, maintenance and cloud-hosted services supporting its Subscriber, Access and Aggregation, and Optical Networking Solutions. These services assist operators in the deployment of multi-vendor networks while reducing their cost to maintain these networks. The cloud-hosted services include a suite of SaaS applications under the Company's Mosaic One platform that manages end-to-end network and service optimization for both fiber access infrastructure and mesh Wi-Fi connectivity. The Company backs these services with a global support organization that offers on-site and off-site support services with varying SLAs.

The performance of these segments is evaluated based on revenue, gross profit and gross margin; therefore, selling, general and administrative expenses, research and development expenses, interest and dividend income, interest expense, net investment gain (loss), other income, net and income tax (expense) benefit are reported on a Company-wide basis only. There is no inter-segment revenue. Asset information by reportable segment is not produced and, therefore, is not reported.

Revenue and Gross Profit

The following table presents information about revenue and gross profit of our reportable segments for each of the years ended December 31, 2024, 2023 and 2022:

 

 

 

2024

 

 

2023

 

 

2022

 

(In thousands)

 

Revenue

 

 

Cost of Revenue
(Restated)

 

 

Gross Profit
(Restated)

 

 

Revenue

 

 

Cost of Revenue
(Restated)

 

 

Gross Profit
(Restated)

 

 

Revenue

 

 

Cost of Revenue

 

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

$

738,964

 

 

$

525,817

 

 

$

213,147

 

 

$

974,389

 

 

$

748,831

 

 

$

225,558

 

 

$

916,793

 

 

$

647,105

 

 

$

269,688

 

Services & Support

 

 

183,756

 

 

 

72,739

 

 

 

111,017

 

 

 

174,711

 

 

 

69,142

 

 

 

105,569

 

 

 

108,743

 

 

 

51,179

 

 

 

57,564

 

Total

 

$

922,720

 

 

$

598,556

 

 

$

324,164

 

 

$

1,149,100

 

 

$

817,973

 

 

$

331,127

 

 

$

1,025,536

 

 

$

698,284

 

 

$

327,252

 

For the years ended December 31, 2024, 2023 and 2022, $6.1 million, $6.5 million and $3.2 million, respectively, of depreciation expense was included in gross profit for our Network Solutions segment. For the years ended December 31, 2024, 2023 and 2022, $0.1 million, $20 thousand and $10 thousand, respectively, of depreciation expense was included in gross profit for our Services & Support segment.

Revenue by Category

In addition to operating under two reportable segments, the Company also reports revenue across three categories – Subscriber Solutions, Access & Aggregation Solutions and Optical Networking Solutions.

Prior to the Business Combination with Adtran Networks on July 15, 2022, ADTRAN, Inc. reported revenue across the following three categories: (1) Access & Aggregation, (2) Subscriber Solutions & Experience and (3) Traditional & Other Products. Following the Business Combination with Adtran Networks, the Company has recast these revenues such that ADTRAN, Inc’s former Access & Aggregation revenue is combined with a portion of the applicable Adtran Networks solutions to create Access & Aggregation Solutions, Adtran’s former Subscriber Solutions & Experience revenue is combined with a portion of the applicable Adtran Networks solutions to create Subscriber Solutions, and the revenue from Traditional & Other products is now included in the applicable Access & Aggregation Solutions or Subscriber Solutions category. Optical Networking Solutions was added as a new revenue category to represent a meaningful portion of Adtran Networks' portfolio.

Our Subscriber Solutions portfolio is used by Service Providers to terminate their access services infrastructure at customers' premises while providing an immersive and interactive experience for residential, business and wholesale subscribers. This revenue category includes hardware- and software-based products and services. These solutions include fiber termination solutions for residential, business and wholesale subscribers, Wi-Fi access solutions for residential and business subscribers, Ethernet switching and network edge virtualization solutions for business subscribers, and cloud software solutions covering a mix of subscriber types.

Our Access & Aggregation Solutions are solutions that are used by communications Service Providers to connect residential subscribers, business subscribers and mobile radio networks to the Service Providers’ metro network, primarily through fiber-based connectivity. This revenue category includes hardware- and software-based products and services. Our solutions within this category are a mix of fiber access and aggregation platforms, precision network synchronization and timing solutions, and access orchestration solutions that ensure highly reliable and efficient network performance.

Our Optical Networking Solutions are used by communications Service Providers, internet content providers and large-scale enterprises to securely interconnect metro and regional networks over fiber. This revenue category includes hardware- and software-based products and services. Our solutions within this category include open optical terminals, open line systems, optical subsystems and modules, network infrastructure assurance systems, and automation platforms that are used to build high-scale, secure and assured optical networks.

The following tables disaggregate our revenue by category for the years ended December 31, 2024, 2023 and 2022:

 

 

2024

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Subscriber Solutions

 

$

295,541

 

 

$

35,237

 

 

$

330,778

 

Access & Aggregation Solutions

 

 

232,934

 

 

 

58,072

 

 

 

291,006

 

Optical Networking Solutions

 

 

210,489

 

 

 

90,447

 

 

 

300,936

 

Total

 

$

738,964

 

 

$

183,756

 

 

$

922,720

 

 

 

 

2023

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

263,192

 

 

$

34,516

 

 

$

297,708

 

Access & Aggregation Solutions

 

 

304,074

 

 

 

54,344

 

 

 

358,418

 

Optical Networking Solutions

 

 

407,123

 

 

 

85,851

 

 

 

492,974

 

Total

 

$

974,389

 

 

$

174,711

 

 

$

1,149,100

 

 

 

 

2022

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

364,238

 

 

$

26,216

 

 

$

390,454

 

Access & Aggregation Solutions

 

 

326,934

 

 

 

47,068

 

 

 

374,002

 

Optical Networking Solutions

 

 

225,621

 

 

 

35,459

 

 

 

261,080

 

Total

 

$

916,793

 

 

$

108,743

 

 

$

1,025,536

 

Additional Information

The following table presents revenue information by geographic area for the years ended December 31, 2024, 2023 and 2022:

(In thousands)

 

2024

 

 

2023

 

 

2022

 

United States

 

$

398,170

 

 

$

460,985

 

 

$

517,433

 

United Kingdom

 

 

196,064

 

 

 

214,655

 

 

 

189,685

 

Germany

 

 

119,976

 

 

 

230,922

 

 

 

146,797

 

Other international

 

 

208,510

 

 

 

242,538

 

 

 

171,621

 

Total

 

$

922,720

 

 

$

1,149,100

 

 

$

1,025,536

 

 

Customers comprising more than 10% of revenue can change from year to year. The Company had one customer comprising more than 10% of revenue in 2024 at 12.1% and was included in both our Network Solutions and Services & Support segments. This customer accounted for $111.8 million, $126.0 million and $106.3 million in revenues for the years ended December 31, 2024, 2023 and 2022, respectively. Single customers comprising more than 10% of revenue in 2023 included one customer at 10.4% and was included in both our Network Solutions and Services & Support segments. Single customers comprising more than 10% of revenue in 2022 included one customer at 18% and was included in both our Network Solutions and Services & Support segments. Other than those with more than 10% of revenue disclosed above, our next five largest customers can change, and have historically changed, from year-to-year. The next five largest customers combined represented 22%, 28% and 33% of total revenue in 2024, 2023 and 2022, respectively.

As of December 31, 2024, property, plant and equipment, net totaled $106.5 million, which included $46.3 million held in the U.S. and $60.2 million held outside the U.S. As of December 31, 2023, property, plant and equipment, net totaled $118.2 million, which included

$55.1 million held in the U.S. and $63.1 million held outside the U.S. Property, plant and equipment, net is reported on a Company-wide, functional basis only.

v3.25.1
Liability for Warranty Returns
12 Months Ended
Dec. 31, 2024
Product Warranties Disclosures [Abstract]  
Liability for Warranty Returns

Note 17 – Liability for Warranty Returns

The liability for warranty obligations totaled $4.5 million and $6.4 million as of December 31, 2024 and 2023, respectively. These liabilities are included in accrued expenses and other liabilities and other non-current liabilities in the accompanying Consolidated Balance Sheets.

A summary of warranty expense and write-off activity for the years ended December 31, 2024, 2023 and 2022 is as follows:

 

 

 

Year Ended December 31,

 

(In thousands)

 

2024

 

 

2023

 

 

2022

 

Balance at beginning of period

 

$

6,445

 

 

$

7,196

 

 

$

5,403

 

Plus: Adtran Networks acquisition

 

 

 

 

 

 

 

 

3,756

 

Plus: Amounts charged to cost and expenses

 

 

1,772

 

 

 

2,952

 

 

 

3,104

 

Plus: Foreign currency translation adjustments

 

 

(119

)

 

 

82

 

 

 

334

 

Less: Deductions

 

 

(3,586

)

 

 

(3,784

)

 

 

(5,401

)

Balance at end of period

 

$

4,512

 

 

$

6,445

 

 

$

7,196

 

v3.25.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 18 – Commitments and Contingencies

Legal Matters

From time to time, the Company is subject to or otherwise involved in various lawsuits, claims, investigations and legal proceedings that arise out of or are incidental to the conduct of our business (collectively, “Legal Matters”), including those relating to employment matters, patent rights, regulatory compliance matters, stockholder claims, and contractual and other commercial disputes. Such Legal Matters, even if not meritorious, could result in the expenditure of significant financial and managerial resources. Additionally, an unfavorable outcome in a legal matter, including in a patent dispute, could require the Company to pay damages, entitle claimants to other relief, such as royalties, or could prevent the Company from selling some of its products in certain jurisdictions. The Company records an accrual for any Legal Matters that arise whenever it considers that it is probable that it is exposed to a loss contingency and the amount of the loss contingency can be reasonably estimated. Although the ultimate disposition of asserted claims cannot be predicted with certainty, it is our belief that the outcome of any such claims, either individually or on a combined basis, will not have a material adverse effect on our consolidated financial position.

DPLTA Appraisal Proceedings

In addition to such Legal Matters, the Company is a party to appraisal proceedings relating to the DPLTA. The DPLTA provides that Adtran Networks shareholders (other than the Company) be offered, at their election, (i) to put their Adtran Networks shares to the Company in exchange for compensation in cash of €17.21 per share, plus guaranteed interest or (ii) to remain Adtran Networks shareholders and receive recurring cash compensation of €0.52 per share for each full fiscal year of Adtran Networks. The appraisal proceedings, which were initiated by certain minority shareholders of Adtran Networks, challenge the adequacy of both forms of compensation. While the Company believes that the compensation offered in connection with the DPLTA is fair, it notes that German courts often adjudicate increases of the cash compensation to plaintiffs in varying amounts in connection with German appraisal proceedings. Therefore, the Company cannot rule out that the first instance court or an appellate court may increase the cash compensation owed to the minority Adtran Networks shareholders. Given the stage of the appraisal proceedings, the Company is currently unable to predict the likely outcome or estimate the potential financial impact, if any, of the appraisal proceedings. If a ruling were to occur and be upheld upon appeal that required the Company to pay significant additional cash compensation to the Adtran Networks minority shareholders, there exists the possibility of a material adverse effect on our financial position and results of operations for the period in which the ruling occurs or future periods.

DPLTA Exit and Recurring Compensation Costs and the Absorption of Adtran Network's Annual Net Loss

Pursuant to the terms of the DPLTA, each Adtran Networks shareholder (other than the Company) has received an offer to elect either (1) to remain an Adtran Networks shareholder and receive from us an Annual Recurring Compensation payment, or (2) to receive Exit Compensation plus guaranteed interest. The guaranteed interest under the Exit Compensation is calculated from the effective date of the DPLTA to the date the shares are tendered, less any Annual Recurring Compensation paid. The guaranteed interest rate is 5.0% plus a variable component (according to the German Civil Code) that was 3.37% as of December 31, 2024. Assuming all the minority holders of currently outstanding Adtran Networks shares were to elect the second option, we would be obligated to make aggregate Exit Compensation payments, including guaranteed interest, of approximately 333.2 million or approximately $344.9 million, based on an exchange rate as of December 31, 2024 and reflecting interest accrued through December 31, 2024 during the pendency of the appraisal proceedings discussed below. Shareholders electing the first option of Annual Recurring Compensation may later elect the second

option. The opportunity for outside Adtran Networks shareholders to tender Adtran Networks shares in exchange for Exit Compensation had been scheduled to expire on March 16, 2023. However, due to the appraisal proceedings that were initiated in 2023 in accordance with applicable German law, this time period for tendering shares has been extended pursuant to the German Stock Corporation Act (Aktiengesetz) and will end two months after the date on which a final decision in such appraisal proceedings has been published in the Federal Gazette (Bundesanzeiger). The Company expects to receive a ruling on a procedural matter in the DPLTA appraisal proceedings during the latter half of 2025 or 2026, which ruling, depending on outcome, will likely be appealed and may take 6-12 months to be decided on appeal. The Company does not expect that a trial on the merits of the DPLTA appraisal proceedings will commence until the procedural matter has been resolved. The proceeding for the trial on the merits of the DPLTA will likely take a minimum of 12 months for a ruling and such ruling may likewise be appealed, which would be expected to take an additional 12-24 months to be resolved. Accordingly, the Company does not expect a final decision on the DPLTA appraisal proceedings to be rendered and published prior to 2027, and most likely not until 2028 or beyond.

Our obligation to pay Annual Recurring Compensation under the DPLTA is a continuing payment obligation, which will amount to approximately €8.9 million (or $9.3 million based on the current exchange rate) per year assuming none of the minority Adtran Networks shareholders were to elect Exit Compensation. The foregoing amounts do not reflect any potential increase in payment obligations that we may have depending on the outcome of ongoing appraisal proceedings in Germany. The Annual Recurring Compensation is due on the third banking day following the ordinary general shareholders’ meeting of Adtran Networks for the respective preceding fiscal year (but in any event within eight months following expiration of the fiscal year). With respect to the 2023 fiscal year, Adtran Networks’ ordinary general shareholders’ meeting occurred on June 28, 2024 and, therefore, the Annual Recurring Compensation was paid on July 3, 2024.With respect to the 2024 fiscal year, Adtran Networks’ ordinary general shareholders meeting is scheduled for June 27, 2025 and, therefore, the Annual Recurring Compensation will be due on July 2, 2025. During the year ended December 31, 2024 and 2023, we accrued $9.8 million and $10.1 million, respectively, in Annual Recurring Compensation, which was reflected as an increase to retained deficit.

For the year ended December 31, 2024, approximately 831 thousand shares, of Adtran Networks stock were tendered to the Company. This resulted in total Exit Compensation payments of approximately €15.7 million, or approximately $17.4 million, based on exchange rates at the time of the transactions, being paid to Adtran Networks shareholders. For the year ended December 31, 2023, 67 thousand shares, respectively, of Adtran Networks shares were tendered to the Company. This resulted in Exit Compensation payments of approximately €1.2 million, respectively, or approximately $1.3 million, based on an exchange rate as of December 31, 2023, being paid to Adtran Networks shareholders.

In addition, under the DPLTA, subject to certain limitations pursuant to applicable law and the specific terms of the DPLTA, (i) the Company is entitled to issue binding instructions to the management board of Adtran Networks, (ii) Adtran Networks will transfer its annual profit to the Company, subject to, among other things, the creation or dissolution of certain reserves, and (iii) the Company will generally absorb the annual net loss incurred by Adtran Networks. The Company’s payment obligation in satisfaction of the requirement that it absorb Adtran Networks’ annual net loss applied for the first time to the net loss generated in 2023.

Performance Bonds

Certain contracts, customers and jurisdictions in which the Company do business require us to provide various guarantees of performance such as bid bonds, performance bonds and customs bonds. As of December 31, 2024 and December 31, 2023, the Company had commitments related to these bonds totaling $15.7 million and $10.8 million, respectively, which expire at various dates through April 2029. In general the Company would only be liable for the amount of these guarantees in the event of default under each contract, the probability of which the Company believes is remote.

Purchase Obligations

The Company purchases components from a variety of suppliers and use contract manufacturers to provide manufacturing services for our products. Our inventory purchase obligations are for short-term product manufacturing requirements, as well as for obligations to suppliers to secure manufacturing capacity. Certain of our inventory purchase obligations with contract manufacturers and suppliers relate to arrangements to secure supply and pricing for certain product components for multi-year periods. As of December 31, 2024, purchase obligations totaled $202.5 million.

v3.25.1
Loss per Share
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Loss per Share

Note 19 – Loss per Share

The calculations of basic and diluted loss per share for the years ended December 31, 2024, 2023 and 2022 are as follows:

(In thousands, except for per share amounts)

 

2024
(Restated)

 

 

2023
(Restated)

 

 

2022

 

Numerator

 

 

 

 

 

 

 

 

 

Net loss attributable to ADTRAN Holdings, Inc.

 

$

(459,891

)

 

$

(268,852

)

 

$

(2,037

)

Effect of redemption of RNCI

 

 

2,981

 

 

 

 

 

 

 

Net loss attributable to ADTRAN Holdings, Inc. common stockholders

 

$

(456,910

)

 

$

(268,852

)

 

$

(2,037

)

Denominator

 

 

 

 

 

 

 

 

 

Weighted average number of shares – basic

 

 

78,928

 

 

 

78,416

 

 

 

62,346

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Stock options

 

 

 

 

 

 

 

 

 

PSUs, RSUs and restricted stock

 

 

 

 

 

 

 

 

 

Weighted average number of shares – diluted

 

 

78,928

 

 

 

78,416

 

 

 

62,346

 

Loss per share attributable to ADTRAN Holdings, Inc. – basic

 

$

(5.79

)

 

$

(3.43

)

 

$

(0.03

)

Loss per share attributable to ADTRAN Holdings, Inc. – diluted

 

$

(5.79

)

 

$

(3.43

)

 

$

(0.03

)

 

For each of the years ended December 31, 2024, 2023 and 2022, less than 0.8 million, 0.5 million and 0.1 million shares of unvested or unearned, as applicable, PSUs, RSUs and restricted stock were excluded from the calculation of diluted loss per share due to their anti-dilutive effect.

For the years ended December 31, 2024, 2023 and 2022, 3.4 million, 1.8 million and 0.2 million stock options, respectively, were outstanding but were not included in the computation of diluted loss per share due to their exercise prices being greater than the average market price of the common shares during the quarter, making them anti-dilutive under the treasury stock method.

v3.25.1
Restructuring
12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring

Note 20 – Restructuring

During the fourth quarter of 2022, the Company initiated a restructuring program designed to optimize the assets, business processes, and information technology systems of the Company in relation to the Business Combination with Adtran Networks. The restructuring program included expenses specifically associated with achieving run-rate synergies as well as Business Efficiency Program expenses described below.

On November 6, 2023, due to the uncertainty around the current macroeconomic environment and its impact on customer spending levels, the Company’s management decided to implement a business efficiency program (“Business Efficiency Program”) targeting the reduction of ongoing operating expenses and focusing on capital efficiency inclusive of certain salary reductions, an early retirement program, a site consolidation plan to include lease impairments and the sale of owned real estate (including the sale of our headquarters), inventory write downs from product discontinuances, and the suspension of the quarterly dividend. The Business Efficiency Program expanded upon other recently implemented restructuring efforts and synergy costs following the Business Combination. For instance, on August 17, 2023, the Company’s management determined to discontinue its copper-based Digital Subscriber Line broadband access technology products and its fixed wireless access products in its Network Solutions segment. Furthermore, on September 29, 2023, the Company’s management decided to exit the "IoT" gateway market (indoor and outdoor), a subset of the broader IoT market (together with the other product discontinuations, the “Discontinuations”). On October 25, 2023, all employees were informed of certain personnel measures, which included the reduction of salary for select management, a reduction of approximately 5% of the workforce, an early retirement program and a hiring freeze. Additionally, on April 11, 2024, Management determined to close a facility in Greifswald, Germany which occurred in November 2024. As of December 31, 2024, the Company classified the Company's property, specifically the North and South Towers located on our Huntsville, Alabama campus, as assets held for sale, see Note 1 and Note 6 of this report for additional information. The Business Efficiency Program was substantially complete as of December 31, 2024.

During the years ended December 31, 2024 and 2023, we recognized $44.7 million and $25.1 of costs related to the Business Efficiency Program. The costs recognized during the year ended December 31, 2024, included total other renegotiated charges and inventory write-down of $8.6 million as a result of a strategy shift which included discontinuance of certain items in connection with the Business

Efficiency Program, of which, $4.1 million relates to inventory write-downs and $4.5 million relates to other charges, and are included in cost of revenue in the Consolidated Statements of Loss.

For the years ended December 31, 2023 and 2022, we recognized $21.5 million and $1.6 million of restructuring costs relating to the Business Combination under the multi-year integration program and synergy realization, respectively, that are included in cost of revenue, selling, general and administrative expenses and research and development expenses in the Consolidated Statement of Loss.

A reconciliation of the beginning and ending restructuring liability, which is included in accrued wages and benefits and accrued expenses and other liabilities in the Consolidated Balance Sheets as of December 31, 2024 and 2023, is as follows:

 

(In thousands)

 

2024

 

 

2023

 

Balance at beginning of period

 

$

8,309

 

 

$

159

 

Plus: Amounts charged to cost and expense

 

 

40,545

 

 

 

22,241

 

Less: Amounts paid

 

 

(38,518

)

 

 

(14,091

)

Balance at end of period

 

$

10,336

 

 

$

8,309

 

 

Restructuring expenses include d in the Consolidated Statements of Loss are for the years ended December 31, 2024, 2023 and 2022:

 

(In thousands)

 

2024

 

 

2023

 

 

2022

 

     Network solutions - cost of revenue

 

$

3,693

 

 

$

2,910

 

 

$

8

 

     Network solutions - inventory write-down

 

 

8,597

 

 

 

24,313

 

 

 

 

     Services & support - cost of revenue

 

 

2,289

 

 

 

 

 

 

 

Cost of revenue

 

$

14,579

 

 

$

27,223

 

 

$

8

 

Selling, general and administrative expenses

 

 

9,128

 

 

 

11,603

 

 

 

117

 

Research and development expenses

 

 

20,973

 

 

 

7,728

 

 

 

1,504

 

Total restructuring expenses

 

$

44,680

 

 

$

46,554

 

 

$

1,629

 

 

The following table represents the components of restructuring expense by geographic area for the years ended December 31, 2024, 2023 and 2022:

 

(In thousands)

 

2024

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

18,422

 

 

$

34,629

 

 

$

2

 

International

 

 

26,258

 

 

 

11,925

 

 

 

1,627

 

Total restructuring expenses

 

$

44,680

 

 

$

46,554

 

 

$

1,629

 

v3.25.1
Current Expected Credit Losses
12 Months Ended
Dec. 31, 2024
Credit Loss [Abstract]  
Current Expected Credit Losses

Note 21 – Current Expected Credit Losses

Under ASC 326 – Financial Instruments – Credit Losses, the Company estimates credit losses for the contractual life of assets that are measured at amortized cost and are within the scope of this guidance, which includes accounts receivable, net investment in sales-type leases, contract assets under the revenue recognition model and outstanding notes receivable. Where appropriate, the Company pools assets if similar risk characteristics exist. Additionally, the Company analyzes its available-for-sale debt securities for impairment and records a credit loss allowance as needed.

Assets Measured at Amortized Cost

Accounts Receivable

The Company records accounts receivable in the normal course of business as products are shipped or services are performed and invoiced, but payment has not yet been remitted by the customer. Accounts receivable balances are considered past due when payment has not been received by the date indicated on the relevant invoice or based on agreed upon terms between the customer and the Company. As of December 31, 2024 and 2023, the Company’s net outstanding accounts receivable balance was $178.0 million and $209.7 million, respectively. The Company assessed the need for an allowance for credit losses related to its outstanding accounts receivable using the historical loss-rate method as well as assessing asset-specific risks. The Company’s historical losses related to accounts receivable have been immaterial as evidenced by its historical allowance and write-offs due to collectability. The assessment of asset-specific risks included the evaluation of relevant available information, from internal and external sources, relating to current conditions that may affect a customer’s ability to pay, such as the customer’s current financial condition, credit rating by geographic location, as provided by a third party and/or by customer, if needed, and the overall macro-economic conditions in which the customer operates. The Company pooled assets by geographic location to determine if an allowance should be applied to its accounts receivable balance, assessing the specific country risk rating and overall economics of that particular country. If elevated risk existed, or customer

specific risk indicated the accounts receivable balance was at risk, the Company further analyzed the need for an allowance related to specific accounts receivable balances. Additionally, the Company determined that significant changes to customer country risk rating from period-to-period and from the end of the prior year to the end of the current quarter would require further review and analysis by the Company.

Credit losses totaling $1.3 million and $0.4 million were recorded for the years ended December 31, 2024 and 2023, respectively, related to accounts receivable.

Contract Assets

The Company records contract assets when it has recognized revenue but has not yet billed the customer. As of December 31, 2024 and 2023, the Company’s outstanding contract asset balance was $0.6 million and $0.7 million, respectively, which is included in other receivables on the Consolidated Balance Sheets. The Company assessed the need for an allowance for credit losses related to its outstanding contract assets using the historical loss-rate method as well as asset-specific risks. The Company’s historical losses related to contract assets receivable have been immaterial as evidenced by historical write-offs due to collectability. Asset-specific risk included the evaluation of relevant available information, from internal and external sources, relating to current conditions that may affect a customer’s ability to pay once invoiced, such as the customer’s financial condition, credit rating by geographic location as provided by a third party and/or by customer, if needed, and the overall macro-economic conditions in which the customer operates. The Company pooled assets by geographic location to determine if an allowance should be applied to its contract asset balance, assessing the specific country risk rating and the overall economics of that particular country. If elevated risk existed, or customer specific risk indicated the contract balance was at risk, the Company further analyzed the need for an allowance related to specific customer balances. Additionally, the Company determined that significant changes to customer country risk rating from period-to-period and from the end of the prior year to the end of the current quarter would be subject to further review and analysis by the Company.

No allowance for credit losses was recorded for the years ended December 31, 2024 and 2023 related to contract assets.

Off-Balance Sheet Arrangements

We have exposure to credit losses from off-balance sheet exposures, to provide various guarantees of performance such as bid bonds, performance bonds and customs bonds, where we believe the risk of loss is immaterial to our financial statements as of December 31, 2024 and 2023, respectively. Otherwise, we do not have off-balance sheet financing arrangements and have not engaged in any related party transactions or arrangements with unconsolidated entities or other persons that are reasonably likely to materially affect liquidity or the availability of or requirements for capital resources. See Note 18 of the Notes to Consolidated Financial Statements, included in Part II, Item 8 of this report for additional information.

Available-for-Sale Debt Securities

As of December 31, 2024 and 2023 the Company had sold all available-for-sale debt securities.

v3.25.1
Restatement of Quarterly Financial Information (Unaudited)
12 Months Ended
Dec. 31, 2024
Quarterly Financial Information Disclosure [Abstract]  
Restatement of Quarterly Financial Information (Unaudited)

Note 22 – Restatement of Quarterly Financial Information (Unaudited)

The following tables reflect the impact of the restatements to the specific line items presented in the Company’s previously reported Condensed Consolidated Statement of Loss and the Condensed Consolidated Statement of Comprehensive Loss for the three months ended March 31, 2024, the three and six months ended June 30, 2024, the three and nine months ended September 30, 2024 and the three months ended December 31, 2024. The Company will restate its previously reported 2024 quarterly financial information based on the summary tables presented below in its future filings with the SEC, as applicable. As discussed in the 2024 Form 10-K, we had revised and planned to revise certain of our previously issued consolidated financial statements. As the condensed consolidated financial statements effectuating the revision for the March 31, 2024 and June 30, 2024 quarterly periods have not yet been reissued as of the date of filing this Form 10-K/A, the revision errors impacting these periods have been subsumed into the restatement of those condensed consolidated financial statements noted below. The impacts of the restatements on 2023 quarters to net loss were $0.5 million, $0.0 million, $0.1 million and $1.8 million for the first, second, third and fourth quarters, respectively.

 

 

 

Three Months Ended March 31, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

 

$

181,273

 

 

$

 

 

$

181,273

 

Services & Support

 

 

 

44,900

 

 

 

 

 

 

44,900

 

Total Revenue

 

 

 

226,173

 

 

 

 

 

 

226,173

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

ADJ 3

 

 

126,326

 

 

 

1,940

 

 

 

128,266

 

Network Solutions - inventory write-down and other charges

 

 

 

8,782

 

 

 

 

 

 

8,782

 

Services & Support

 

 

 

18,810

 

 

 

 

 

 

18,810

 

Total Cost of Revenue

 

 

 

153,918

 

 

 

1,940

 

 

 

155,858

 

Gross Profit

 

 

 

72,255

 

 

 

(1,940

)

 

 

70,315

 

Selling, general and administrative expenses

 

 

 

59,100

 

 

 

(109

)

 

 

58,991

 

Research and development expenses

 

 

 

60,251

 

 

 

(36

)

 

 

60,215

 

Goodwill impairment

ADJ 4

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Operating Loss

 

 

 

(339,679

)

 

 

(6,565

)

 

 

(346,244

)

Interest and dividend income

 

 

 

397

 

 

 

 

 

 

397

 

Interest expense

 

 

 

(4,598

)

 

 

 

 

 

(4,598

)

Net investment gain

 

 

 

2,253

 

 

 

 

 

 

2,253

 

Other income (expense), net

 

 

 

1,310

 

 

 

 

 

 

1,310

 

Loss Before Income Taxes

 

 

 

(340,317

)

 

 

(6,565

)

 

 

(346,882

)

Income tax benefit

 

 

 

18,647

 

 

 

 

 

 

18,647

 

Net Loss

 

 

$

(321,670

)

 

$

(6,565

)

 

$

(328,235

)

Less: Net Income (Loss) attributable to non-controlling interest(1)

ADJ 1

 

 

2,880

 

 

 

(350

)

 

 

2,530

 

Net Loss attributable to ADTRAN Holdings, Inc.

 

 

$

(324,550

)

 

$

(6,215

)

 

$

(330,765

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

 

78,814

 

 

 

78,814

 

 

 

78,814

 

Weighted average shares outstanding – diluted

 

 

 

78,814

 

 

 

78,814

 

 

 

78,814

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share attributable to ADTRAN Holdings, Inc. – basic

 

 

$

(4.12

)

 

$

(0.08

)

 

$

(4.20

)

Loss per common share attributable to ADTRAN Holdings, Inc. – diluted

 

 

$

(4.12

)

 

$

(0.08

)

 

$

(4.20

)

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(321,670

)

 

$

(6,565

)

 

$

(328,235

)

Other Comprehensive (Loss) Income, net of tax

 

 

 

 

 

 

 

 

 

 

Net unrealized gain on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

Defined benefit plan adjustments

 

 

 

(60

)

 

 

 

 

 

(60

)

Foreign currency translation (loss) gain

ADJ 1, 3

 

 

(17,745

)

 

 

(28

)

 

 

(17,773

)

Other Comprehensive (Loss) Income, net of tax

 

 

 

(17,805

)

 

 

(28

)

 

 

(17,833

)

Comprehensive Loss, net of tax

 

 

 

(339,475

)

 

 

(6,593

)

 

 

(346,068

)

Less: Comprehensive Income attributable to non-controlling interest, net of tax

ADJ 1

 

 

2,880

 

 

 

(349

)

 

 

2,531

 

Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax

 

 

$

(342,355

)

 

$

(6,244

)

 

$

(348,599

)

(1) For the three months ended March 31, 2024, we recognized $2.5 million of net gain attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA.

 

 

 

 

 

 

Three Months Ended June 30, 2024

 

 

Six Months Ended June 30, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

 

$

179,194

 

 

$

 

 

$

179,194

 

 

$

360,467

 

 

$

 

 

$

360,467

 

Services & Support

 

 

 

46,797

 

 

 

 

 

 

46,797

 

 

 

91,697

 

 

 

 

 

 

91,697

 

Total Revenue

 

 

 

225,991

 

 

 

 

 

 

225,991

 

 

 

452,164

 

 

 

 

 

 

452,164

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Network Solutions

ADJ 3

 

 

124,457

 

 

 

316

 

 

 

124,773

 

 

 

250,783

 

 

 

2,256

 

 

 

253,039

 

Network Solutions - Inventory Write Down

 

 

 

143

 

 

 

 

 

 

143

 

 

 

8,925

 

 

 

 

 

 

8,925

 

Services & Support

 

 

 

19,816

 

 

 

 

 

 

19,816

 

 

 

38,626

 

 

 

 

 

 

38,626

 

Total Cost of Revenue

 

 

 

144,416

 

 

 

316

 

 

 

144,732

 

 

 

298,334

 

 

 

2,256

 

 

 

300,590

 

Gross Profit

 

 

 

81,575

 

 

 

(316

)

 

 

81,259

 

 

 

153,830

 

 

 

(2,256

)

 

 

151,574

 

Selling, general and administrative expenses

 

 

 

59,493

 

 

 

(129

)

 

 

59,364

 

 

 

118,593

 

 

 

(238

)

 

 

118,355

 

Research and development expenses

 

 

 

60,388

 

 

 

(36

)

 

 

60,352

 

 

 

120,639

 

 

 

(72

)

 

 

120,567

 

Goodwill impairment

 

 

 

 

 

 

 

 

 

 

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Operating Loss

 

 

 

(38,306

)

 

 

(151

)

 

 

(38,457

)

 

 

(377,985

)

 

 

(6,716

)

 

 

(384,701

)

Interest and dividend income

 

 

 

366

 

 

 

 

 

 

366

 

 

 

763

 

 

 

 

 

 

763

 

Interest expense

 

 

 

(6,906

)

 

 

 

 

 

(6,906

)

 

 

(11,504

)

 

 

 

 

 

(11,504

)

Net investment gain (loss)

 

 

 

872

 

 

 

 

 

 

872

 

 

 

3,125

 

 

 

 

 

 

3,125

 

Other income (expense), net

 

 

 

(901

)

 

 

 

 

 

(901

)

 

 

409

 

 

 

 

 

 

409

 

Loss Before Income Taxes

 

 

 

(44,875

)

 

 

(151

)

 

 

(45,026

)

 

 

(385,192

)

 

 

(6,716

)

 

 

(391,908

)

Income tax (expense) benefit

 

 

 

(2,136

)

 

 

 

 

 

(2,136

)

 

 

16,511

 

 

 

 

 

 

16,511

 

Net Loss

 

 

$

(47,011

)

 

$

(151

)

 

$

(47,162

)

 

$

(368,681

)

 

$

(6,716

)

 

$

(375,397

)

Net Income (Loss) attributable to non-controlling interest (1)

ADJ 1

 

 

2,854

 

 

 

(349

)

 

 

2,505

 

 

 

5,734

 

 

 

(699

)

 

 

5,035

 

Net Loss attributable to ADTRAN Holdings, Inc.

 

 

$

(49,865

)

 

$

198

 

 

$

(49,667

)

 

$

(374,415

)

 

$

(6,017

)

 

$

(380,432

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

 

78,852

 

 

 

78,852

 

 

 

78,852

 

 

 

78,803

 

 

 

78,803

 

 

 

78,803

 

Weighted average shares outstanding – diluted

 

 

 

78,852

 

 

 

78,852

 

 

 

78,852

 

 

 

78,803

 

 

 

78,803

 

 

 

78,803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share attributable to ADTRAN Holdings, Inc. – basic

 

 

$

(0.63

)

 

$

0.00

 

 

$

(0.63

)

 

$

(4.75

)

 

$

(0.08

)

 

$

(4.83

)

Loss per common share attributable to ADTRAN Holdings, Inc. – diluted

 

 

$

(0.63

)

 

$

0.00

 

 

$

(0.63

)

 

$

(4.75

)

 

$

(0.08

)

 

$

(4.83

)

 

 

 

 

 

 

 

 

 

 

 

 

$

 

 

$

 

 

$

 

Net Loss

 

 

$

(47,011

)

 

$

(151

)

 

$

(47,162

)

 

$

(368,681

)

 

$

(6,716

)

 

$

(375,397

)

Other Comprehensive Loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Defined benefit plan adjustments

 

 

 

(7

)

 

 

 

 

 

(7

)

 

 

(67

)

 

 

 

 

 

(67

)

Foreign currency translation gain (loss)

ADJ 1, 3, 4

 

 

(1,375

)

 

 

(67

)

 

 

(1,442

)

 

 

(19,120

)

 

 

(95

)

 

 

(19,215

)

Other Comprehensive Loss, net of tax

 

 

 

(1,382

)

 

 

(67

)

 

 

(1,449

)

 

 

(19,187

)

 

 

(95

)

 

 

(19,282

)

Comprehensive Loss, net of tax

 

 

 

(48,393

)

 

 

(218

)

 

 

(48,611

)

 

 

(387,868

)

 

 

(6,811

)

 

 

(394,679

)

Less: Comprehensive Income attributable to non-controlling interest

ADJ 1

 

 

2,854

 

 

 

(350

)

 

 

2,504

 

 

 

5,734

 

 

 

(699

)

 

 

5,035

 

Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax

 

 

$

(51,247

)

 

$

132

 

 

$

(51,115

)

 

$

(393,602

)

 

$

(6,112

)

 

$

(399,714

)

(1) For the three and six months ended June 30, 2024, we recognized $2.5 million and $5.0 million, respectively, net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA.

 

 

 

Three Months Ended September 30, 2024

 

 

Nine Months Ended September 30, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

 

$

181,488

 

 

$

 

 

$

181,488

 

 

$

541,955

 

 

$

 

 

$

541,955

 

Services & Support

 

 

 

46,216

 

 

 

 

 

 

46,216

 

 

 

137,913

 

 

 

 

 

 

137,913

 

Total Revenue

 

 

 

227,704

 

 

 

 

 

 

227,704

 

 

 

679,868

 

 

 

 

 

 

679,868

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Network Solutions

ADJ 3

 

 

126,103

 

 

 

2,217

 

 

 

128,320

 

 

 

376,886

 

 

 

4,473

 

 

 

381,359

 

Network Solutions - Inventory Write Down

 

 

 

(328

)

 

 

 

 

 

(328

)

 

 

8,597

 

 

 

 

 

 

8,597

 

Services & Support

 

 

 

16,678

 

 

 

 

 

 

16,678

 

 

 

55,304

 

 

 

 

 

 

55,304

 

Total Cost of Revenue

 

 

 

142,453

 

 

 

2,217

 

 

 

144,670

 

 

 

440,787

 

 

 

4,473

 

 

 

445,260

 

Gross Profit

 

 

 

85,251

 

 

 

(2,217

)

 

 

83,034

 

 

 

239,081

 

 

 

(4,473

)

 

 

234,608

 

Selling, general and administrative expenses

 

 

 

57,621

 

 

 

(71

)

 

 

57,550

 

 

 

176,214

 

 

 

(309

)

 

 

175,905

 

Research and development expenses

 

 

 

51,614

 

 

 

(37

)

 

 

51,577

 

 

 

172,253

 

 

 

(109

)

 

 

172,144

 

Goodwill impairment

ADJ 4

 

 

 

 

 

 

 

 

 

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Operating Loss

 

 

 

(23,984

)

 

 

(2,109

)

 

 

(26,093

)

 

 

(401,969

)

 

 

(8,825

)

 

 

(410,794

)

Interest and dividend income

 

 

 

664

 

 

 

 

 

 

664

 

 

 

1,427

 

 

 

 

 

 

1,427

 

Interest expense

 

 

 

(5,679

)

 

 

 

 

 

(5,679

)

 

 

(17,183

)

 

 

 

 

 

(17,183

)

Net investment gain (loss)

 

 

 

1,382

 

 

 

 

 

 

1,382

 

 

 

4,507

 

 

 

 

 

 

4,507

 

Other income (expense), net

 

 

 

(850

)

 

 

 

 

 

(850

)

 

 

(441

)

 

 

 

 

 

(441

)

Loss Before Income Taxes

 

 

 

(28,467

)

 

 

(2,109

)

 

 

(30,576

)

 

 

(413,659

)

 

 

(8,825

)

 

 

(422,484

)

Income tax (expense) benefit

 

 

 

(390

)

 

 

 

 

 

(390

)

 

 

16,121

 

 

 

 

 

 

16,121

 

Net Loss

 

 

$

(28,857

)

 

$

(2,109

)

 

$

(30,966

)

 

$

(397,538

)

 

$

(8,825

)

 

$

(406,363

)

Net Income attributable to non-controlling interest (1)

 

 

 

2,382

 

 

 

 

 

 

2,382

 

 

 

7,417

 

 

 

 

 

 

7,417

 

Net Loss attributable to ADTRAN Holdings, Inc.

 

 

$

(31,239

)

 

$

(2,109

)

 

$

(33,348

)

 

$

(404,955

)

 

$

(8,825

)

 

$

(413,780

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

 

78,952

 

 

 

78,952

 

 

 

78,952

 

 

 

78,873

 

 

 

78,873

 

 

 

78,873

 

Weighted average shares outstanding – diluted

 

 

 

78,952

 

 

 

78,952

 

 

 

78,952

 

 

 

78,873

 

 

 

78,873

 

 

 

78,873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share attributable to ADTRAN Holdings, Inc. – basic

 

 

$

(0.36

)

 

$

(0.02

)

 

$

(0.38

)

 

$

(5.10

)

 

$

(0.11

)

 

$

(5.21

)

Loss per common share attributable to ADTRAN Holdings, Inc. – diluted

 

 

$

(0.36

)

 

$

(0.02

)

 

$

(0.38

)

 

$

(5.10

)

 

$

(0.11

)

 

$

(5.21

)

 

 

 

 

 

 

 

 

 

 

 

 

$

 

 

 

 

 

$

 

Net Loss

 

 

$

(28,857

)

 

$

(2,109

)

 

$

(30,966

)

 

$

(397,538

)

 

$

(8,825

)

 

$

(406,363

)

Other Comprehensive Income (Loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Defined benefit plan adjustments

 

 

 

109

 

 

 

 

 

 

109

 

 

 

42

 

 

 

 

 

 

42

 

Foreign currency translation gain (loss)

 

 

 

18,988

 

 

 

(186

)

 

 

18,802

 

 

 

(130

)

 

 

(281

)

 

 

(411

)

Other Comprehensive Income (Loss), net of tax

 

 

 

19,097

 

 

 

(186

)

 

 

18,911

 

 

 

(88

)

 

 

(281

)

 

 

(369

)

Comprehensive Loss, net of tax

 

 

 

(9,760

)

 

 

(2,295

)

 

 

(12,055

)

 

 

(397,626

)

 

 

(9,106

)

 

 

(406,732

)

Less: Comprehensive Income attributable to non-controlling interest

 

 

 

2,382

 

 

 

 

 

 

2,382

 

 

 

7,417

 

 

 

 

 

 

7,417

 

Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax

 

 

$

(12,142

)

 

$

(2,295

)

 

$

(14,437

)

 

$

(405,043

)

 

$

(9,106

)

 

$

(414,149

)

(1) For the three and nine months ended September 30, 2024, we accrued $3.1 million and $7.4 million, respectively, net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA.

 

 

 

 

 

Three Months Ended December 31, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

 

$

197,009

 

 

$

 

 

$

197,009

 

Services & Support

 

 

 

45,843

 

 

 

 

 

 

45,843

 

Total Revenue

 

 

 

242,852

 

 

 

 

 

 

242,852

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

ADJ 3

 

 

134,184

 

 

 

1,677

 

 

 

135,861

 

Network Solutions - Inventory Write Down

 

 

 

 

 

 

 

 

 

 

Services & Support

 

 

 

17,435

 

 

 

 

 

 

17,435

 

Total Cost of Revenue

 

 

 

151,619

 

 

 

1,677

 

 

 

153,296

 

Gross Profit

 

 

 

91,233

 

 

 

(1,677

)

 

 

89,556

 

Selling, general and administrative expenses

 

 

 

57,155

 

 

 

(142

)

 

 

57,013

 

Research and development expenses

 

 

 

49,210

 

 

 

104

 

 

 

49,314

 

Goodwill impairment

 

 

 

 

 

 

 

 

 

 

Operating Loss

 

 

 

(15,132

)

 

 

(1,639

)

 

 

(16,771

)

Interest and dividend income

 

 

 

1,631

 

 

 

 

 

 

1,631

 

Interest expense

 

 

 

(4,870

)

 

 

 

 

 

(4,870

)

Net investment gain (loss)

 

 

 

(920

)

 

 

 

 

 

(920

)

Other income (expense), net

 

 

 

687

 

 

 

 

 

 

687

 

Loss Before Income Taxes

 

 

 

(18,604

)

 

 

(1,639

)

 

 

(20,243

)

Income tax (expense) benefit

ADJ 4

 

 

(24,906

)

 

 

1,445

 

 

 

(23,461

)

Net Loss

 

 

$

(43,510

)

 

$

(194

)

 

$

(43,704

)

Net Income attributable to non-controlling interest (1)

 

 

 

2,407

 

 

 

 

 

 

2,407

 

Net Loss attributable to ADTRAN Holdings, Inc.

 

 

$

(45,917

)

 

$

(194

)

 

$

(46,111

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

 

79,091

 

 

 

79,091

 

 

 

79,091

 

Weighted average shares outstanding – diluted

 

 

 

79,091

 

 

 

79,091

 

 

 

79,091

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share attributable to ADTRAN Holdings, Inc. – basic

 

 

$

(0.58

)

 

$

(0.00

)

 

$

(0.58

)

Loss per common share attributable to ADTRAN Holdings, Inc. – diluted

 

 

$

(0.58

)

 

$

(0.00

)

 

$

(0.58

)

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(43,510

)

 

$

(194

)

 

$

(43,704

)

Other Comprehensive Income (Loss), net of tax

 

 

 

 

 

 

 

 

 

 

Defined benefit plan adjustments

 

 

 

1,437

 

 

 

 

 

 

1,437

 

Foreign currency translation gain (loss)

ADJ 3, 4

 

 

(37,917

)

 

 

573

 

 

 

(37,344

)

Other Comprehensive Income (Loss), net of tax

 

 

 

(36,480

)

 

 

573

 

 

 

(35,907

)

Comprehensive Loss, net of tax

 

 

 

(79,990

)

 

 

379

 

 

 

(79,611

)

Less: Comprehensive Income attributable to non-controlling interest

 

 

 

2,407

 

 

 

 

 

 

2,407

 

Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax

 

 

$

(82,397

)

 

$

379

 

 

$

(82,018

)

(1) For the three months ended December 31, 2024 we accrued $2.4 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA.

 

The following tables reflect the impact of the restatements to the specific line items presented in the Company’s previously reported Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024, the six months ended June 30, 2024 and the nine months ended September 30, 2024.

 

 

 

Three Months Ended March 31, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

$

(321,670

)

 

$

(6,565

)

 

$

(328,235

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

22,528

 

 

 

(138

)

 

 

22,390

 

Goodwill Impairment

ADJ 4

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Amortization of debt issuance cost

 

 

 

1,013

 

 

 

 

 

 

1,013

 

Gain on investments, net

 

 

 

(2,621

)

 

 

 

 

 

(2,621

)

Net loss on disposal of property, plant and equipment

 

 

 

150

 

 

 

 

 

 

150

 

Stock-based compensation expense

 

 

 

3,957

 

 

 

(3

)

 

 

3,954

 

Deferred income taxes

 

 

 

(19,738

)

 

 

 

 

 

(19,738

)

Other, net

 

 

 

545

 

 

 

 

 

 

545

 

Inventory write down

 

 

 

3,992

 

 

 

 

 

 

3,992

 

Inventory reserves

 

 

 

1,837

 

 

 

 

 

 

1,837

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

 

26,002

 

 

 

(3,498

)

 

 

22,504

 

Other receivables

 

 

 

5,605

 

 

 

 

 

 

5,605

 

Income taxes receivable, net

ADJ 4

 

 

(1,296

)

 

 

4,735

 

 

 

3,439

 

Inventory

 

 

 

30,426

 

 

 

1,940

 

 

 

32,366

 

Prepaid expenses, other current assets and other assets

 

 

 

(15,882

)

 

 

(3,408

)

 

 

(19,290

)

Accounts payable

 

 

 

553

 

 

 

 

 

 

553

 

Accrued expenses and other liabilities

 

 

 

7,459

 

 

 

3,494

 

 

 

10,953

 

Income taxes payable, net

 

 

 

1,155

 

 

 

 

 

 

1,155

 

Net cash provided by (used in) operating activities

 

 

 

36,598

 

 

 

1,327

 

 

 

37,925

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

 

(12,183

)

 

 

(1,327

)

 

 

(13,510

)

Purchases of intangibles - developed technology

 

 

 

(1,191

)

 

 

 

 

 

(1,191

)

Proceeds from sales and maturities of available-for-sale investments

 

 

 

873

 

 

 

 

 

 

873

 

Purchases of available-for-sale investments

 

 

 

(44

)

 

 

 

 

 

(44

)

Net cash provided by (used in) investing activities

 

 

 

(12,545

)

 

 

(1,327

)

 

 

(13,872

)

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Tax withholdings related to stock-based compensation settlements

 

 

 

(176

)

 

 

 

 

 

(176

)

Proceeds from stock option exercises

 

 

 

219

 

 

 

 

 

 

219

 

Dividend payments

 

 

 

 

 

 

 

 

 

 

Proceeds from receivables purchase agreement

 

 

 

30,231

 

 

 

 

 

 

30,231

 

Repayments on receivables purchase agreement

 

 

 

(32,437

)

 

 

 

 

 

(32,437

)

Proceeds from draw on revolving credit agreements

 

 

 

 

 

 

 

 

 

 

Repayment of revolving credit agreements

 

 

 

 

 

 

 

 

 

 

Payment for redemption of redeemable non-controlling interest

 

 

 

(5

)

 

 

 

 

 

(5

)

Payment of debt issuance cost

 

 

 

(1,994

)

 

 

 

 

 

(1,994

)

Repayment of notes payable

 

 

 

 

 

 

 

 

 

 

Net cash (used in) provided by financing activities

 

 

 

(4,162

)

 

 

 

 

 

(4,162

)

 

 

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

 

19,891

 

 

 

 

 

 

19,891

 

Effect of exchange rate changes

 

 

 

(301

)

 

 

 

 

 

(301

)

Cash and cash equivalents, beginning of period

 

 

 

87,167

 

 

 

 

 

 

87,167

 

Cash and cash equivalents, end of period

 

 

$

106,757

 

 

$

 

 

$

106,757

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash financing activities:

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

 

$

5,243

 

 

$

 

 

$

5,243

 

Cash paid for income taxes

 

 

$

2,315

 

 

$

 

 

$

2,315

 

Cash used in operating activities related to operating leases

 

 

$

2,384

 

 

$

 

 

$

2,384

 

Supplemental disclosure of non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations

 

 

$

842

 

 

$

 

 

$

842

 

Purchases of property, plant and equipment included in accounts payable

 

 

$

1,689

 

 

$

 

 

$

1,689

 

 

 

 

 

 

Six Months Ended June 30, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(368,681

)

 

$

(6,716

)

 

$

(375,397

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

45,156

 

 

 

(313

)

 

 

44,843

 

Goodwill Impairment

ADJ 4

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Amortization of debt issuance cost

 

 

 

1,013

 

 

 

 

 

 

1,013

 

Gain on investments, net

 

 

 

(2,867

)

 

 

 

 

 

(2,867

)

Net loss on disposal of property, plant and equipment

 

 

 

185

 

 

 

 

 

 

185

 

Stock-based compensation expense

 

 

 

7,793

 

 

 

(6

)

 

 

7,787

 

Deferred income taxes

 

 

 

(13,684

)

 

 

 

 

 

(13,684

)

Other, net

 

 

 

(126

)

 

 

 

 

 

(126

)

Inventory write down - business efficiency program

 

 

 

4,135

 

 

 

 

 

 

4,135

 

Inventory reserves

 

 

 

3,722

 

 

 

 

 

 

3,722

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

 

26,913

 

 

 

(3,498

)

 

 

23,415

 

Other receivables

 

 

 

6,279

 

 

 

 

 

 

6,279

 

Income taxes receivable, net

 

 

 

(5,653

)

 

 

4,735

 

 

 

(918

)

Inventory

ADJ 3

 

 

62,151

 

 

 

2,256

 

 

 

64,407

 

Prepaid expenses, other current assets and other assets

 

 

 

(14,731

)

 

 

(3,408

)

 

 

(18,139

)

Accounts payable

 

 

 

(3,966

)

 

 

 

 

 

(3,966

)

Accrued expenses and other liabilities

 

 

 

19,152

 

 

 

3,493

 

 

 

22,645

 

Income taxes payable, net

 

 

 

(2,878

)

 

 

 

 

 

(2,878

)

Net cash provided by operating activities

 

 

 

56,496

 

 

 

1,313

 

 

 

57,809

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

 

(23,644

)

 

 

(1,327

)

 

 

(24,971

)

Purchases of intangibles - developed technology

 

 

 

(5,725

)

 

 

 

 

 

(5,725

)

Proceeds from sales and maturities of available-for-sale investments

 

 

 

956

 

 

 

 

 

 

956

 

Purchases of available-for-sale investments

 

 

 

(121

)

 

 

 

 

 

(121

)

Net cash used in investing activities

 

 

 

(28,534

)

 

 

(1,327

)

 

 

(29,861

)

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Tax withholdings related to stock-based compensation settlements

 

 

 

(189

)

 

 

 

 

 

(189

)

Proceeds from stock option exercises

 

 

 

219

 

 

 

 

 

 

219

 

Dividend payments

 

 

 

 

 

 

 

 

 

 

Proceeds from receivables purchase agreement

 

 

 

68,556

 

 

 

 

 

 

68,556

 

Repayments on receivables purchase agreement

 

 

 

(66,399

)

 

 

 

 

 

(66,399

)

Proceeds from draw on revolving credit agreements

 

 

 

 

 

 

 

 

 

 

Repayment of revolving credit agreements

 

 

 

(5,000

)

 

 

 

 

 

(5,000

)

Payment for redemption of redeemable non-controlling interest

 

 

 

(25

)

 

 

 

 

 

(25

)

Payment of debt issuance cost

 

 

 

(1,994

)

 

 

 

 

 

(1,994

)

Repayment of notes payable

 

 

 

 

 

 

 

 

 

 

Net cash used in financing activities

 

 

 

(4,832

)

 

 

 

 

 

(4,832

)

 

 

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

 

23,130

 

 

 

(14

)

 

 

23,116

 

Effect of exchange rate changes

 

 

 

888

 

 

 

14

 

 

 

902

 

Cash and cash equivalents, beginning of period

 

 

 

87,167

 

 

 

 

 

 

87,167

 

Cash and cash equivalents, end of period

 

 

$

111,185

 

 

$

 

 

$

111,185

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash financing activities:

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

 

$

6,554

 

 

$

 

 

$

6,554

 

Cash paid for income taxes

 

 

$

7,433

 

 

$

 

 

$

7,433

 

Cash used in operating activities related to operating leases

 

 

$

4,780

 

 

$

 

 

$

4,780

 

Supplemental disclosure of non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations

 

 

$

1,999

 

 

$

 

 

$

1,999

 

Purchases of property, plant and equipment included in accounts payable

 

 

$

1,059

 

 

$

 

 

$

1,059

 

 

 

 

 

 

Nine Months Ended September 30, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(397,538

)

 

$

(8,825

)

 

$

(406,363

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

68,421

 

 

 

(527

)

 

 

67,894

 

Asset impairment

 

 

 

 

 

 

 

 

 

 

Goodwill impairment

ADJ 4

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Amortization of debt issuance cost

 

 

 

1,013

 

 

 

 

 

 

1,013

 

(Accretion) amortization on available-for-sale investments, net

 

 

 

 

 

 

 

 

 

 

(Gain) loss on investments

 

 

 

(4,238

)

 

 

 

 

 

(4,238

)

Net loss on disposal of property, plant and equipment

 

 

 

203

 

 

 

 

 

 

203

 

Stock-based compensation expense

 

 

 

11,417

 

 

 

65

 

 

 

11,482

 

Deferred income taxes

 

 

 

(13,399

)

 

 

 

 

 

(13,399

)

Inventory write down

 

 

 

4,135

 

 

 

 

 

 

4,135

 

Inventory reserves

 

 

 

6,667

 

 

 

 

 

 

6,667

 

Other, net

 

 

 

(267

)

 

 

 

 

 

(267

)

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

 

59,446

 

 

 

 

 

 

59,446

 

Other receivables

 

 

 

4,875

 

 

 

 

 

 

4,875

 

Income taxes receivable

 

 

 

(5,682

)

 

 

4,735

 

 

 

(947

)

Inventory

ADJ 3

 

 

69,412

 

 

 

4,475

 

 

 

73,887

 

Prepaid expenses, other current assets and other assets

 

 

 

(20,083

)

 

 

(2,081

)

 

 

(22,164

)

Accounts payable

 

 

 

9,697

 

 

 

 

 

 

9,697

 

Accrued expenses and other liabilities

 

 

 

15,039

 

 

 

(5

)

 

 

15,034

 

Income taxes payable

 

 

 

(3,175

)

 

 

 

 

 

(3,175

)

Net cash provided by operating activities

 

 

 

98,526

 

 

 

2,607

 

 

 

101,133

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

 

(28,514

)

 

 

(2,654

)

 

 

(31,168

)

Purchases of intangibles - developed technology

 

 

 

(19,669

)

 

 

 

 

 

(19,669

)

Proceeds from sales and maturities of available-for-sale investments

 

 

 

1,195

 

 

 

 

 

 

1,195

 

Purchases of available-for-sale investments

 

 

 

(195

)

 

 

 

 

 

(195

)

Proceeds from beneficial interests in securitized accounts receivable

 

 

 

282

 

 

 

 

 

 

282

 

Net cash used in investing activities

 

 

 

(46,901

)

 

 

(2,654

)

 

 

(49,555

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Tax withholdings related to stock-based compensation settlements

 

 

 

(189

)

 

 

 

 

 

(189

)

Proceeds from stock option exercises

 

 

 

219

 

 

 

 

 

 

219

 

Dividend payments

 

 

 

 

 

 

 

 

 

 

Proceeds from receivables purchase agreement

 

 

 

68,556

 

 

 

 

 

 

68,556

 

Repayments on receivables purchase agreement

 

 

 

(83,772

)

 

 

 

 

 

(83,772

)

Proceeds from draw on revolving credit agreements

 

 

 

 

 

 

 

 

 

 

Repayment of revolving credit agreements

 

 

 

(5,000

)

 

 

 

 

 

(5,000

)

Payment for redemption of redeemable non-controlling interest

 

 

 

(17,395

)

 

 

 

 

 

(17,395

)

Payment of annual recurring compensation to non-controlling interest

 

 

 

(10,084

)

 

 

 

 

 

(10,084

)

Payment of debt issuance cost

 

 

 

(1,994

)

 

 

 

 

 

(1,994

)

Repayment of notes payable

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

 

 

(49,659

)

 

 

 

 

 

(49,659

)

Net (decrease) increase in cash and cash equivalents

 

 

 

1,966

 

 

 

(47

)

 

 

1,919

 

Effect of exchange rate changes

 

 

 

(677

)

 

 

47

 

 

 

(630

)

Cash, cash equivalents and restricted cash, beginning of year

 

 

 

87,167

 

 

 

 

 

 

87,167

 

Cash, cash equivalents and restricted cash, end of year

 

 

$

88,456

 

 

$

 

 

$

88,456

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash financing activities

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

 

$

18,225

 

 

$

 

 

$

18,225

 

Cash paid for income taxes, net of refunds

 

 

$

9,122

 

 

$

 

 

$

9,122

 

Cash used in operating activities related to operating leases

 

 

$

7,380

 

 

$

 

 

$

7,380

 

Supplemental disclosure of non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations

 

 

$

2,122

 

 

$

 

 

$

2,122

 

Purchases of property, plant and equipment included in accounts payable

 

 

$

952

 

 

$

 

 

$

952

 

Redemption of redeemable non-controlling interest

 

 

$

2,976

 

 

$

 

 

$

2,976

 

 

As it relates to the impact of the restatements to the specific line items presented in the Company’s previously reported Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 2024 and June 30, 2024 Annual Recurring Compensation Earned changed by $0.4 million and Foreign Currency Remeasurement of Redeemable Non-Controlling Interest changed by $10.1 million and $1.9 million for the three months ended March 31, 2024 and June 30, 2024, respectively. Net income also changed for each quarterly period to reflect the cumulative impacts of the restatements.

v3.25.1
Subsequent Events
12 Months Ended
Dec. 31, 2024
Subsequent Events [Abstract]  
Subsequent Events

Note 23 – Subsequent Events (Unaudited)

Exit Compensation Payments

On April 14, 2025, 0.4 million shares of Adtran Networks stock were tendered to the Company and Exit Compensation payments of approximately €7.0 million or approximately $7.5 million, based on the applicable exchange rate at the time of the transaction, was paid to Adtran Networks shareholders.

Fifth Amendment to Wells Fargo Credit Agreement

On May 6, 2025, the Company, ADTRAN, Inc., and Adtran Networks entered into a fifth amendment to the Credit Agreement ("Amendment No. 5"). Amendment No. 5, together with a substantially concurrent prepayment by the German Borrower of outstanding revolving loans under the German Borrower Sublimit (as defined in the Amended Credit Agreement, which term includes Amendment No. 5 for the purposes of this note) in the amount of $24.0 million, among other things, resulted in (i) a permanent partial reduction in the total commitments under the Amended Credit Agreement from $374.0 million to $350.0 million, (ii) a reduction of the German Borrower Sublimit from $74.0 million to $50.0 million, and (iii) a reduction of the German Commitment Reduction Threshold (as defined in the Amended Credit Agreement) to $25.0 million. The lenders also waived certain events of default related to among others, inaccuracies in the financial statements that were previously delivered to the lenders by the Company with respect to the fiscal quarters ended June 30, 2024 and September 30, 2024, and breaches of the Consolidated Fixed Charge Coverage Ratio (as defined in the Amended Credit Agreement) financial covenant for the fiscal quarters ended June 30, 2024 and September 30, 2024.

v3.25.1
Schedule II - Valuation and Qualifying Accounts
12 Months Ended
Dec. 31, 2024
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts

SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS

(In thousands)

 

Balance at
Beginning
of Period

 

 

Charged to
Costs &
Expenses

 

 

Deductions

 

 

Balance at
End of
Period

 

Year ended December 31, 2024 (Restated)

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses

 

$

400

 

 

 

900

 

 

 

 

 

$

1,300

 

Deferred Tax Asset Valuation Allowance

 

$

86,567

 

 

 

29,217

 

 

 

90

 

 

$

115,694

 

Year ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses

 

$

49

 

 

 

351

 

 

 

 

 

$

400

 

Deferred Tax Asset Valuation Allowance

 

$

5,201

 

 

 

81,590

 

 

 

224

 

 

$

86,567

 

Year ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses

 

$

 

 

 

49

 

 

 

 

 

$

49

 

Deferred Tax Asset Valuation Allowance

 

$

50,564

 

 

 

 

 

 

45,363

 

 

$

5,201

 

v3.25.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and include the financial position, results of operations, comprehensive (loss) income, changes in equity and cash flows of Adtran and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Restatement of Previously Issued Consolidated Financial Statements

Restatement of Previously Issued Consolidated Financial Statements

On May 13, 2025, the Audit Committee of the Board of Directors (the “Audit Committee”) of the Company concluded, after considering the recommendations of management, that the Company’s (i) audited consolidated financial statements as of and for the years ended December 31, 2024 (“Fiscal 2024”) and December 31, 2023 (“Fiscal 2023”) included in the Company’s Annual Report on Form 10-K filed with the SEC on March 3, 2025 (the “2024 Form 10-K”), and (ii) unaudited condensed consolidated financial statements as of and for the interim periods ended March 31, 2024, June 30, 2024 and September 30, 2024 (the “2024 Interim Periods”) included in the Company’s Quarterly Reports filed with the SEC on May 10, 2024, August 9, 2024, and November 12, 2024, respectively (such 2024 Interim Periods, collectively with Fiscal 2024 and Fiscal 2023, the “Non-Reliance Periods”), as well as the relevant portions of any communication which describe or are based on such financial statements, should no longer be relied upon.

In addition, on May 13, 2025, the Company announced that it needed additional time to complete its quarterly reporting process as a result of the restatements to the annual periods ended December 31, 2023 and 2024 and for the interim periods ended March 31, 2024, June 30, 2024 and September 30, 2024, as well as to complete its evaluation of internal control over financial reporting as of December 31, 2024 as a result of errors related to the historical accounting for certain inventory and cost of goods sold transactions in its Adtran Networks SE subsidiary (the “Adjustment”). As a result, the Company filed a Form 12b-25 with the SEC and delayed its filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

In connection with the identification of the Adjustment, the Audit Committee has overseen an internal investigation into the circumstances surrounding the Adjustment and its impact on the Company’s historical financial statements. Based on the findings of the internal investigation, which is substantially complete, it has been determined that the underlying errors giving rise to the Adjustment were not properly addressed in the Company’s previously filed financial statements as of and for the years ended December 31, 2024 and 2023 and were not communicated to the Audit Committee or the independent auditors prior to the filing of the initial 2024 and 2023 Annual Reports on Form 10-K. As described in Item 9A of this Amendment No. 1, the Company is taking certain remedial actions to address the material weaknesses in its internal controls associated with these findings.

The impact of the correction of the misstatements and errors on the Condensed Consolidated Financial Statements for the quarterly periods ended March 31, 2024, June 30, 2024 and September 30, 2024 are summarized in Note 22, Restatement of Quarterly Financial Information (Unaudited).

The impact of the correction of the misstatements and errors has been reflected within Schedule II – Valuation and Qualifying Accounts for the year ended December 31, 2024.

We assessed the materiality of the errors on prior period consolidated financial statements in accordance with SEC Staff Accounting Bulletin No. 99, “Materiality,” codified in ASC Topic 250, Accounting Changes and Error Corrections. Based on this assessment, we concluded that the errors, in the aggregate, are material to Fiscal 2024 and Fiscal 2023 and therefore, we are restating those financial statements herein. Furthermore, we made adjustments to correct for other previously identified immaterial errors. The impact of the correction of the misstatements and errors on the Consolidated Financial Statements for the years ended December 31, 2024 and 2023, as well as previously identified immaterial errors which have now been corrected, is summarized below. The Company has also restated impacted amounts within the accompanying footnotes to the Consolidated Financial Statements.

The impact of the correction of the misstatements and errors on the Consolidated Statements of Cash Flows were driven by changes in the related Consolidated Balance Sheet and Consolidated Statement of Loss and Comprehensive Income (Loss) line items. Below is a summary description of the significant errors:

ADJ 1: Pursuant to the terms of the DPLTA, each Adtran Networks shareholder (other than the Company) is entitled to receive from us an Annual Recurring Compensation payment of 0.52 per share. The Company erroneously accrued this liability every quarter at 0.59 per share, overstating the associated accrual, the net income attributable to non-controlling interest and the net loss attributable to ADTRAN Holdings, Inc. for fiscal periods beginning with the quarter ended March 31, 2023 through the quarter ended June 30, 2024.

ADJ 2: For the periods beginning with the quarter ended March 31, 2023 through the quarter ended June 30, 2024 the Company remeasured the redeemable non-controlling interest each quarter-end at the current exchange rate of euros to U.S. Dollar. The Company treated the redeemable non-controlling interest as a monetary mezzanine equity instrument but should have treated it as a non-monetary mezzanine equity instrument not subject to remeasurement.

ADJ 3: For the year ended December 31, 2023 through the year ended December 31, 2024, the Company understated cost of revenue and overstated inventory in the Company's Adtran Networks subsidiary due to a system error. In addition, there were adjustments in the Company's U.S and Australian subsidiaries related to inventory reserves that were understated.

ADJ 4: For the year ended December 31, 2023 through the year ended December 31, 2024, the Company understated goodwill and overstated income tax receivable. The understatement was attributable to corrections to goodwill and deferred income tax associated with goodwill for an internal divestiture of a wholly owned subsidiary required by statutory laws in Europe.

In addition to the misstatements identified above, the Company has corrected other immaterial errors. These other errors are quantitatively and qualitatively immaterial, individually and in the aggregate. However, the Company has corrected these other errors as part of the correction for the significant errors described above.

 

The following tables reflect the impact of the restatements to the specific line items presented in the Company’s previously reported Consolidated Balance Sheets as of December 31, 2024 and 2023.

 

 

 

As of December 31, 2024

 

ASSETS

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Current Assets

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

77,567

 

 

$

(1,546

)

 

$

76,021

 

Accounts receivable, less allowance for credit losses of $1,300 as of December 31, 2024

 

 

 

178,030

 

 

 

 

 

 

178,030

 

Other receivables

 

 

 

9,775

 

 

 

 

 

 

9,775

 

Income tax receivable

 

 

 

5,461

 

 

 

 

 

 

5,461

 

Inventory, net

ADJ 3

 

 

269,337

 

 

 

(7,780

)

 

 

261,557

 

Assets held for sale

 

 

 

11,901

 

 

 

 

 

 

11,901

 

Prepaid expenses and other current assets

 

 

 

58,534

 

 

 

(2,139

)

 

 

56,395

 

Total Current Assets

 

 

 

610,605

 

 

 

(11,465

)

 

 

599,140

 

Property, plant and equipment, net

 

 

 

102,942

 

 

 

3,512

 

 

 

106,454

 

Deferred tax assets, net

 

 

 

17,826

 

 

 

 

 

 

17,826

 

Goodwill

 

 

 

52,918

 

 

 

 

 

 

52,918

 

Intangibles, net

 

 

 

284,893

 

 

 

 

 

 

284,893

 

Other non-current assets

 

 

 

78,128

 

 

 

 

 

 

78,128

 

Long-term investments

 

 

 

32,060

 

 

 

 

 

 

32,060

 

Total Assets

 

 

$

1,179,372

 

 

$

(7,953

)

 

$

1,171,419

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

$

170,451

 

 

$

1,374

 

 

$

171,825

 

Unearned revenue

 

 

 

52,701

 

 

 

 

 

 

52,701

 

Accrued expenses and other liabilities

 

 

 

35,704

 

 

 

(1,546

)

 

 

34,158

 

Accrued wages and benefits

 

 

 

32,853

 

 

 

 

 

 

32,853

 

Income tax payable

 

 

 

1,936

 

 

 

 

 

 

1,936

 

Total Current Liabilities

 

 

 

293,645

 

 

 

(172

)

 

 

293,473

 

     Non-current revolving credit agreement outstanding

 

 

 

189,576

 

 

 

-

 

 

 

189,576

 

Deferred tax liabilities

 

 

 

30,690

 

 

 

(318

)

 

 

30,372

 

Non-current unearned revenue

 

 

 

22,065

 

 

 

 

 

 

22,065

 

Non-current pension liability

 

 

 

8,983

 

 

 

 

 

 

8,983

 

Deferred compensation liability

 

 

 

33,203

 

 

 

 

 

 

33,203

 

Non-current lease obligations

 

 

 

25,925

 

 

 

 

 

 

25,925

 

Other non-current liabilities

 

 

 

17,928

 

 

 

 

 

 

17,928

 

Total Liabilities

 

 

 

622,015

 

 

 

(490

)

 

 

621,525

 

Commitments and contingencies (see Note 18)

 

 

 

 

 

 

 

 

 

 

Redeemable Non-Controlling Interest

 

 

 

422,943

 

 

 

 

 

 

422,943

 

Equity

 

 

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share; 200,000 shares authorized;
   
79,483 shares issued and 79,218 outstanding as of December 31, 2024

 

 

 

795

 

 

 

 

 

 

795

 

Additional paid-in capital

 

 

 

808,913

 

 

 

 

 

 

808,913

 

Accumulated other comprehensive income

ADJ 3, 4

 

 

10,897

 

 

 

357

 

 

 

11,254

 

Retained deficit

ADJ 3, 4

 

 

(680,993

)

 

 

(7,820

)

 

 

(688,813

)

Less treasury stock at cost: 266 shares as of December 31, 2024

 

 

 

(5,198

)

 

 

 

 

 

(5,198

)

Total Equity

 

 

 

134,414

 

 

 

(7,463

)

 

 

126,951

 

Total Liabilities and Equity

 

 

$

1,179,372

 

 

$

(7,953

)

 

$

1,171,419

 

 

 

 

 

As of December 31, 2023

 

ASSETS

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Current Assets

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

87,167

 

 

$

 

 

$

87,167

 

Accounts receivable, less allowance for credit losses of $400 as of December 31, 2023

 

 

 

216,445

 

 

 

(6,708

)

 

 

209,737

 

Other receivables

 

 

 

17,450

 

 

 

 

 

 

17,450

 

Income tax receivable

 

 

 

7,933

 

 

 

(4,735

)

 

 

3,198

 

Inventory, net

ADJ 3

 

 

362,295

 

 

 

(1,871

)

 

 

360,424

 

Prepaid expenses and other current assets

 

 

 

45,566

 

 

 

(4,575

)

 

 

40,991

 

Total Current Assets

 

 

 

736,856

 

 

 

(17,889

)

 

 

718,967

 

Property, plant and equipment, net

 

 

 

113,582

 

 

 

4,575

 

 

 

118,157

 

Deferred tax assets, net

ADJ 4

 

 

25,787

 

 

 

3,507

 

 

 

29,294

 

Goodwill

ADJ 4

 

 

353,415

 

 

 

4,735

 

 

 

358,150

 

Intangibles, net

 

 

 

337,423

 

 

 

 

 

 

337,423

 

Other non-current assets

 

 

 

87,706

 

 

 

 

 

 

87,706

 

Long-term investments

 

 

 

27,743

 

 

 

 

 

 

27,743

 

Total Assets

 

 

$

1,682,512

 

 

$

(5,072

)

 

$

1,677,440

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

$

162,922

 

 

$

 

 

$

162,922

 

Unearned revenue

 

 

 

46,731

 

 

 

(4,231

)

 

 

42,500

 

Accrued expenses and other liabilities

ADJ 1

 

 

37,607

 

 

 

(1,403

)

 

 

36,204

 

Accrued wages and benefits

 

 

 

27,030

 

 

 

122

 

 

 

27,152

 

Income tax payable

ADJ 4

 

 

5,221

 

 

 

 

 

 

5,221

 

Total Current Liabilities

 

 

 

279,511

 

 

 

(5,512

)

 

 

273,999

 

     Non-current revolving credit agreement outstanding

 

 

 

195,000

 

 

 

 

 

 

195,000

 

Deferred tax liabilities

ADJ 4

 

 

35,655

 

 

 

(89

)

 

 

35,566

 

Non-current unearned revenue

 

 

 

25,109

 

 

 

(2,477

)

 

 

22,632

 

Non-current pension liability

 

 

 

12,543

 

 

 

 

 

 

12,543

 

Deferred compensation liability

 

 

 

29,039

 

 

 

 

 

 

29,039

 

Non-current lease obligations

 

 

 

31,420

 

 

 

 

 

 

31,420

 

Other non-current liabilities

 

 

 

28,657

 

 

 

 

 

 

28,657

 

Total Liabilities

 

 

 

636,934

 

 

 

(8,078

)

 

 

628,856

 

Commitments and contingencies (see Note 20)

 

 

 

 

 

 

 

 

 

 

Redeemable Non-Controlling Interest

ADJ 2

 

 

451,756

 

 

 

(8,429

)

 

 

443,327

 

Equity

 

 

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share; 200,000 shares authorized;
   
78,970 shares issued and 78,674 outstanding as of December 31, 2023

 

 

 

790

 

 

 

 

 

 

790

 

Additional paid-in capital

 

 

 

795,304

 

 

 

(836

)

 

 

794,468

 

Accumulated other comprehensive income

ADJ 1

 

 

47,461

 

 

 

69

 

 

 

47,530

 

Retained deficit

ADJ 1, 2, 4

 

 

(243,908

)

 

 

12,202

 

 

 

(231,706

)

Less treasury stock at cost: 297 shares as of December 31, 2023

 

 

 

(5,825

)

 

 

 

 

 

(5,825

)

Total Equity

 

 

 

593,822

 

 

 

11,435

 

 

 

605,257

 

Total Liabilities and Equity

 

 

$

1,682,512

 

 

$

(5,072

)

 

$

1,677,440

 

 

The following tables reflect the impact of the restatements to the specific line items presented in the Company’s previously reported Consolidated Statement of Loss and the Consolidated Statement of Comprehensive Loss for the years ended December 31, 2024 and 2023.

 

 

 

Year Ended December 31, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

 

$

738,964

 

 

$

 

 

$

738,964

 

Services & Support

 

 

 

183,756

 

 

 

 

 

 

183,756

 

Total Revenue

 

 

 

922,720

 

 

 

 

 

 

922,720

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

ADJ 3

 

 

511,070

 

 

 

6,150

 

 

 

517,220

 

Network Solutions - inventory write-down and other charges

 

 

 

8,597

 

 

 

 

 

 

8,597

 

Services & Support

 

 

 

72,739

 

 

 

 

 

 

72,739

 

Total Cost of Revenue

 

 

 

592,406

 

 

 

6,150

 

 

 

598,556

 

Gross Profit

 

 

 

330,314

 

 

 

(6,150

)

 

 

324,164

 

Selling, general and administrative expenses

 

 

 

233,369

 

 

 

(451

)

 

 

232,918

 

Research and development expenses

 

 

 

221,463

 

 

 

(5

)

 

 

221,458

 

Goodwill impairment

ADJ 4

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Operating Loss

 

 

 

(417,101

)

 

 

(10,464

)

 

 

(427,565

)

Interest and dividend income

 

 

 

3,058

 

 

 

 

 

 

3,058

 

Interest expense

 

 

 

(22,053

)

 

 

 

 

 

(22,053

)

Net investment gain

 

 

 

3,587

 

 

 

 

 

 

3,587

 

Other income, net

 

 

 

246

 

 

 

 

 

 

246

 

Loss Before Income Taxes

 

 

 

(432,263

)

 

 

(10,464

)

 

 

(442,727

)

Income tax expense

ADJ 4

 

 

(8,785

)

 

 

1,445

 

 

 

(7,340

)

Net Loss

 

 

$

(441,048

)

 

$

(9,019

)

 

$

(450,067

)

Less: Net Income attributable to non-controlling interest(1)

 

 

 

9,824

 

 

 

 

 

 

9,824

 

Net Loss attributable to ADTRAN Holdings, Inc.

 

 

$

(450,872

)

 

$

(9,019

)

 

$

(459,891

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

 

78,928

 

 

 

78,928

 

 

 

78,928

 

Weighted average shares outstanding – diluted

 

 

 

78,928

 

 

 

78,928

 

 

 

78,928

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share attributable to ADTRAN Holdings, Inc. – basic

 

 

$

(5.67

)

 

$

(0.12

)

 

$

(5.79

)

Loss per common share attributable to ADTRAN Holdings, Inc. – diluted

 

 

$

(5.67

)

 

$

(0.12

)

 

$

(5.79

)

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(441,048

)

 

$

(9,019

)

 

$

(450,067

)

Other Comprehensive Loss, net of tax

 

 

 

 

 

 

 

 

 

 

Defined benefit plan adjustments

 

 

 

1,479

 

 

 

 

 

 

1,479

 

Foreign currency translation loss

ADJ 3, 4

 

 

(38,047

)

 

 

292

 

 

 

(37,755

)

Other Comprehensive Loss, net of tax

 

 

 

(36,568

)

 

 

292

 

 

 

(36,276

)

Comprehensive Loss, net of tax

 

 

 

(477,616

)

 

 

(8,727

)

 

 

(486,343

)

Less: Comprehensive Income attributable to non-controlling interest, net of tax

 

 

 

9,824

 

 

 

 

 

 

9,824

 

Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax

 

 

$

(487,440

)

 

$

(8,727

)

 

$

(496,167

)

(1) For the year ended December 31, 2024 we accrued $9.8 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA

 

 

 

Year Ended December 31, 2023

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

 

$

974,389

 

 

$

 

 

$

974,389

 

Services & Support

 

 

 

174,711

 

 

 

 

 

 

174,711

 

Total Revenue

 

 

 

1,149,100

 

 

 

 

 

 

1,149,100

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

ADJ 3

 

 

722,582

 

 

 

1,936

 

 

 

724,518

 

Network Solutions - Inventory Write Down

 

 

 

24,313

 

 

 

 

 

 

24,313

 

Services & Support

 

 

 

69,142

 

 

 

 

 

 

69,142

 

Total Cost of Revenue

 

 

 

816,037

 

 

 

1,936

 

 

 

817,973

 

Gross Profit

 

 

 

333,063

 

 

 

(1,936

)

 

 

331,127

 

Selling, general and administrative expenses

 

 

 

258,149

 

 

 

461

 

 

 

258,610

 

Research and development expenses

 

 

 

258,311

 

 

 

 

 

 

258,311

 

Goodwill impairment

 

 

 

37,874

 

 

 

 

 

 

37,874

 

Operating Loss

 

 

 

(221,271

)

 

 

(2,397

)

 

 

(223,668

)

Interest and dividend income

 

 

 

2,340

 

 

 

 

 

 

2,340

 

Interest expense

 

 

 

(16,299

)

 

 

 

 

 

(16,299

)

Net investment gain

 

 

 

2,754

 

 

 

 

 

 

2,754

 

Other income (expense), net

 

 

 

1,266

 

 

 

 

 

 

1,266

 

Loss Before Income Taxes

 

 

 

(231,210

)

 

 

(2,397

)

 

 

(233,607

)

Income tax expense

ADJ 4

 

 

(28,133

)

 

 

(166

)

 

 

(28,299

)

Net Loss

 

 

$

(259,343

)

 

$

(2,563

)

 

$

(261,906

)

Net Income attributable to non-controlling interest (1)

ADJ 1

 

 

8,345

 

 

 

(1,399

)

 

 

6,946

 

Net Loss attributable to ADTRAN Holdings, Inc.

 

 

$

(267,688

)

 

$

(1,164

)

 

$

(268,852

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

 

78,416

 

 

 

78,416

 

 

 

78,416

 

Weighted average shares outstanding – diluted

 

 

 

78,416

 

 

 

78,416

 

 

 

78,416

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share attributable to ADTRAN Holdings, Inc. – basic

 

 

$

(3.41

)

 

$

(0.01

)

 

$

(3.43

)

Loss per common share attributable to ADTRAN Holdings, Inc. – diluted

 

 

$

(3.41

)

 

$

(0.01

)

 

$

(3.43

)

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(259,343

)

 

$

(2,563

)

 

$

(261,906

)

Other Comprehensive Loss, net of tax

 

 

 

 

 

 

 

 

 

 

Net unrealized gain (loss) on available-for-sale securities

 

 

 

454

 

 

 

 

 

 

454

 

Defined benefit plan adjustments

 

 

 

(1,490

)

 

 

 

 

 

(1,490

)

Foreign currency translation gain

ADJ 1

 

 

22,753

 

 

 

69

 

 

 

22,822

 

Other Comprehensive Loss, net of tax

 

 

 

21,717

 

 

 

69

 

 

 

21,786

 

Comprehensive (Loss), net of tax

 

 

 

(237,626

)

 

 

(2,494

)

 

 

(240,120

)

Less: Comprehensive Income attributable to non-controlling interest

ADJ 1

 

 

8,727

 

 

 

(1,399

)

 

 

7,328

 

Comprehensive (Loss) attributable to ADTRAN Holdings, Inc., net of tax

 

 

$

(246,353

)

 

$

(1,095

)

 

$

(247,448

)

(1) For the year ended December 31, 2023, we have recognized $10.1 million, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA partially offset by a $3.2 million net loss attributable to non-controlling interests pre-DPLTA for the year ended December 31, 2023.

The following tables reflect the impact of the restatement to the specific line items presented in the Company's previously reported Consolidated Statement of Changes in Stockholders Equity for the periods ended December 31, 2024 and 2023:

 

 

Retained Deficit

 

 

Accumulated Other Comprehensive Income

 

 

Additional paid-in capital

 

(In thousands)

 

As Reported

 

 

Adjustment

 

 

As Restated

 

 

As Reported

 

 

Adjustment

 

 

As Restated

 

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Balance as of December 31, 2023

 

$

(243,908

)

 

$

12,202

 

 

$

(231,706

)

 

$

47,461

 

 

$

69

 

 

$

47,530

 

 

$

795,304

 

 

$

(836

)

 

$

794,468

 

Net loss

 

 

(441,048

)

 

 

(9,019

)

 

 

(450,067

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annual recurring compensation earned

 

 

(9,824

)

 

 

 

 

 

(9,824

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurement of redeemable non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,175

)

 

 

 

 

 

(1,175

)

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

(36,568

)

 

 

292

 

 

 

(36,276

)

 

 

 

 

 

 

 

 

 

Deferred compensation adjustments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(368

)

 

 

 

 

 

(368

)

ADTRAN RSUs and restricted stock vested

 

 

(1,026

)

 

 

 

 

 

(1,026

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADTRAN stock options exercised

 

 

824

 

 

 

 

 

 

824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Modification of Stock Options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(190

)

 

 

 

 

 

(190

)

Redemption of redeemable non-controlling interest

 

 

2,986

 

 

 

 

 

 

2,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADTRAN stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,825

 

 

 

 

 

 

14,825

 

Adtran Networks stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

517

 

 

 

836

 

 

 

1,353

 

Balance as of December 31, 2024

 

$

(691,996

)

 

$

3,183

 

 

$

(688,813

)

 

$

10,893

 

 

$

361

 

 

$

11,254

 

 

$

808,913

 

 

$

-

 

 

$

808,913

 

 

 

 

Retained Deficit

 

 

Accumulated Other Comprehensive Income

 

 

Additional paid-in capital

 

(In thousands)

 

As Reported

 

 

Adjustment

 

 

As Restated

 

 

As Reported

 

 

Adjustment

 

 

As Restated

 

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Balance as of December 31, 2022

 

$

55,338

 

 

$

 

 

$

55,338

 

 

$

26,126

 

 

$

 

 

$

26,126

 

 

$

895,834

 

 

$

 

 

$

895,834

 

Net loss

 

 

(256,164

)

 

 

(2,563

)

 

 

(258,727

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annual recurring compensation earned

 

 

(11,524

)

 

 

1,399

 

 

 

(10,125

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of Adtran Networks

 

 

 

 

 

3,762

 

 

 

3,762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification and remeasurement from equity to mezzanine equity for non-controlling interests in Adtran Networks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(116,895

)

 

 

 

 

 

(116,895

)

Mezzanine equity for non-controlling interest in Adtran Networks for Adtran Networks stock options exercised

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,175

)

 

 

(1,175

)

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

21,335

 

 

 

69

 

 

 

21,404

 

 

 

 

 

 

 

 

 

 

Dividend payments ($0.09 per share)

 

 

(21,237

)

 

 

 

 

 

(21,237

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends accrued on unvested restricted stock units

 

 

8

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred compensation adjustments, net of tax

 

 

(145

)

 

 

 

 

 

(145

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADTRAN RSUs and restricted stock vested

 

 

(1,115

)

 

 

 

 

 

(1,115

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADTRAN stock options exercised

 

 

164

 

 

 

 

 

 

164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redemption of redeemable non-controlling interest

 

 

371

 

 

 

 

 

 

371

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency remeasurement of redeemable non-controlling interest

 

 

(9,604

)

 

 

9,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adtran Networks stock options exercised

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

323

 

 

 

 

 

 

323

 

Modification of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

339

 

 

 

339

 

ADTRAN stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,016

 

 

 

 

 

 

16,016

 

Adtran Networks stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26

 

 

 

 

 

 

26

 

Balance as of December 31, 2023

 

$

(243,908

)

 

$

12,202

 

 

$

(231,706

)

 

$

47,461

 

 

$

69

 

 

$

47,530

 

 

$

795,304

 

 

$

(836

)

 

$

794,468

 

 

The following tables reflect the impact of the restatement to the specific line items presented in the Company's previously reported Consolidated Statements of Cash Flows for the years ended December 31, 2024 and 2023:

 

 

 

Year Ended December 31, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(441,048

)

 

$

(9,019

)

 

$

(450,067

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

90,985

 

 

 

(456

)

 

 

90,529

 

Goodwill impairment

ADJ 4

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Amortization of debt issuance cost

 

 

 

3,950

 

 

 

 

 

 

3,950

 

Gain on investments

 

 

 

(5,030

)

 

 

 

 

 

(5,030

)

Net loss on disposal of property, plant and equipment

 

 

 

1,371

 

 

 

 

 

 

1,371

 

Stock-based compensation expense

 

 

 

15,342

 

 

 

646

 

 

 

15,988

 

Deferred income taxes

 

 

 

2,247

 

 

 

3,329

 

 

 

5,576

 

Inventory write down - business efficiency program

 

 

 

4,135

 

 

 

 

 

 

4,135

 

Inventory reserves

ADJ 3

 

 

3,980

 

 

 

1,336

 

 

 

5,316

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

 

46,108

 

 

 

 

 

 

46,108

 

Other receivables

 

 

 

10,713

 

 

 

 

 

 

10,713

 

Income taxes receivable

ADJ 4

 

 

648

 

 

 

 

 

 

648

 

Inventory

ADJ 3

 

 

75,171

 

 

 

4,814

 

 

 

79,985

 

Prepaid expenses, other current assets and other assets

 

 

 

(10,718

)

 

 

(2,727

)

 

 

(13,445

)

Accounts payable

 

 

 

11,784

 

 

 

(1,546

)

 

 

10,238

 

Accrued expenses and other liabilities

 

 

 

5,519

 

 

 

(646

)

 

 

4,873

 

Income taxes payable

 

 

 

(4,670

)

 

 

 

 

 

(4,670

)

Net cash provided by operating activities

 

 

 

103,070

 

 

 

501

 

 

 

103,571

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

 

(32,454

)

 

 

(2,047

)

 

 

(34,501

)

Purchases of intangibles - developed technology

 

 

 

(30,671

)

 

 

 

 

 

(30,671

)

Proceeds from sales and maturities of available-for-sale investments

 

 

 

1,240

 

 

 

 

 

 

1,240

 

Purchases of available-for-sale investments

 

 

 

(268

)

 

 

 

 

 

(268

)

Payments for beneficial interests in securitized accounts receivable

 

 

 

(55

)

 

 

 

 

 

(55

)

Net cash used in investing activities

 

 

 

(62,208

)

 

 

(2,047

)

 

 

(64,255

)

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Tax withholdings related to stock-based compensation settlements

 

 

 

(1,143

)

 

 

 

 

 

(1,143

)

Proceeds from stock option exercises

 

 

 

824

 

 

 

 

 

 

824

 

Proceeds from receivables purchase agreement

 

 

 

68,556

 

 

 

 

 

 

68,556

 

Repayments on receivables purchase agreement

 

 

 

(83,772

)

 

 

 

 

 

(83,772

)

Proceeds from draw on revolving credit agreements

 

 

 

26,000

 

 

 

 

 

 

26,000

 

Repayment of revolving credit agreements

 

 

 

(31,000

)

 

 

 

 

 

(31,000

)

Redemption of redeemable non-controlling interest

 

 

 

(17,398

)

 

 

 

 

 

(17,398

)

Payment of annual recurring compensation to non-controlling interest

 

 

 

(10,084

)

 

 

 

 

 

(10,084

)

Payment of debt issuance cost

 

 

 

(1,994

)

 

 

 

 

 

(1,994

)

Net cash used in financing activities

 

 

 

(50,011

)

 

 

 

 

 

(50,011

)

 

 

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

 

 

(9,149

)

 

 

(1,546

)

 

 

(10,695

)

Effect of exchange rate changes

 

 

 

(451

)

 

 

 

 

 

(451

)

Cash and cash equivalents, beginning of period

 

 

 

87,167

 

 

 

 

 

 

87,167

 

Cash and cash equivalents, end of period

 

 

$

77,567

 

 

$

(1,546

)

 

$

76,021

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

 

$

20,884

 

 

$

 

 

$

20,884

 

Cash paid for income taxes, net of refunds

 

 

$

6,691

 

 

$

 

 

$

6,691

 

Cash used in operating activities related to operating leases

 

 

$

9,274

 

 

$

 

 

$

9,274

 

Supplemental disclosure of non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations

 

 

$

5,317

 

 

$

 

 

$

5,317

 

Purchases of property, plant and equipment included in accounts payable

 

 

$

2,635

 

 

$

 

 

$

2,635

 

Redemption of redeemable non-controlling interest

 

 

$

2,986

 

 

$

 

 

$

2,986

 

 

 

 

 

Year Ended December 31, 2023

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(259,343

)

 

$

(2,563

)

 

$

(261,906

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

112,949

 

 

 

 

 

 

112,949

 

Goodwill impairment

 

 

 

37,874

 

 

 

 

 

 

37,874

 

Amortization of debt issuance cost

 

 

 

862

 

 

 

 

 

 

862

 

Accretion on available-for-sale investments, net

 

 

 

(22

)

 

 

 

 

 

(22

)

Gain on investments

 

 

 

(2,900

)

 

 

 

 

 

(2,900

)

Net loss on disposal of property, plant and equipment

 

 

 

458

 

 

 

 

 

 

458

 

Stock-based compensation expense

 

 

 

16,016

 

 

 

365

 

 

 

16,381

 

Deferred income taxes

ADJ 4

 

 

15,558

 

 

 

166

 

 

 

15,724

 

Inventory write down

 

 

 

24,313

 

 

 

 

 

 

24,313

 

Inventory reserves

 

 

 

25,546

 

 

 

 

 

 

25,546

 

Other, net

 

 

 

(2,942

)

 

 

 

 

 

(2,942

)

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

 

65,612

 

 

 

6,708

 

 

 

72,320

 

Other receivables

 

 

 

10,315

 

 

 

 

 

 

10,315

 

Income taxes receivable

 

 

 

(2,637

)

 

 

4,735

 

 

 

2,098

 

Inventory

ADJ 3

 

 

20,537

 

 

 

1,871

 

 

 

22,408

 

Prepaid expenses, other current assets and other assets

 

 

 

(29,883

)

 

 

(2,081

)

 

 

(31,964

)

Accounts payable

 

 

 

(91,907

)

 

 

 

 

 

(91,907

)

Accrued expenses and other liabilities

 

 

 

17,929

 

 

 

(6,612

)

 

 

11,317

 

Income taxes payable

 

 

 

(3,939

)

 

 

 

 

 

(3,939

)

Net cash (used in) provided by operating activities

 

 

 

(45,604

)

 

 

2,589

 

 

 

(43,015

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

 

(33,683

)

 

 

(2,654

)

 

 

(36,337

)

Purchases of intangibles - developed technology

 

 

 

(9,438

)

 

 

 

 

 

(9,438

)

Proceeds from sales and maturities of available-for-sale investments

 

 

 

10,567

 

 

 

 

 

 

10,567

 

Purchases of available-for-sale investments

 

 

 

(868

)

 

 

 

 

 

(868

)

Proceeds from beneficial interests in securitized accounts receivable

 

 

 

1,218

 

 

 

 

 

 

1,218

 

Net cash used in investing activities

 

 

 

(32,204

)

 

 

(2,654

)

 

 

(34,858

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Tax withholdings related to stock-based compensation settlements

 

 

 

(6,458

)

 

 

 

 

 

(6,458

)

Proceeds from stock option exercises

 

 

 

540

 

 

 

 

 

 

540

 

Dividend payments

 

 

 

(21,237

)

 

 

 

 

 

(21,237

)

Proceeds from receivables purchase agreement

 

 

 

14,099

 

 

 

 

 

 

14,099

 

Proceeds from draw on revolving credit agreements

 

 

 

163,733

 

 

 

 

 

 

163,733

 

Repayment of revolving credit agreements

 

 

 

(64,987

)

 

 

 

 

 

(64,987

)

Redemption of redeemable non-controlling interest

 

 

 

(1,224

)

 

 

 

 

 

(1,224

)

Payment of debt issuance cost

 

 

 

(708

)

 

 

 

 

 

(708

)

Repayment of notes payable

 

 

 

(24,891

)

 

 

 

 

 

(24,891

)

Net cash provided by financing activities

 

 

 

58,867

 

 

 

 

 

 

58,867

 

Net decrease in cash and cash equivalents

 

 

 

(18,941

)

 

 

(65

)

 

 

(19,006

)

Effect of exchange rate changes

 

 

 

(2,536

)

 

 

65

 

 

 

(2,471

)

Cash, cash equivalents and restricted cash, beginning of year

 

 

 

108,644

 

 

 

 

 

 

108,644

 

Cash, cash equivalents and restricted cash, end of year

 

 

$

87,167

 

 

$

 

 

$

87,167

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash financing activities

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

 

$

12,596

 

 

$

 

 

$

12,596

 

Cash paid for income taxes, net of refunds

 

 

$

18,552

 

 

$

 

 

$

18,552

 

Cash used in operating activities related to operating leases

 

 

$

9,682

 

 

$

 

 

$

9,682

 

Supplemental disclosure of non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations

 

 

$

17,865

 

 

$

 

 

$

17,865

 

Purchases of property, plant and equipment included in accounts payable

 

 

$

1,298

 

 

$

 

 

$

1,298

 

Redemption of redeemable non-controlling interest

 

 

$

371

 

 

$

 

 

$

371

 

 

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Significant estimates include allowance for credit losses on accounts receivable and contract assets, excess and obsolete inventory reserves, warranty reserves, customer rebates, determination and accrual of the deferred revenue related to performance obligations under contracts with customers, estimated costs to complete obligations associated with deferred and accrued revenue and network installations, estimated income tax provision and income tax contingencies, fair value of stock-based compensation, assessment of goodwill and other intangibles for impairment, estimated lives of intangible assets, estimates of intangible assets upon measurement, estimated pension liability and fair value of investments and estimated contingent liabilities. Actual amounts could differ significantly from these estimates.

We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of ongoing inflationary pressures, continued elevated interest rates, instability in the financial services industry, currency fluctuations and political tensions as of December 31, 2024, and through the date of this report. These conditions could result in further impacts to the Company's consolidated financial statements in future reporting periods. The accounting matters assessed included, but were not limited to, the allowance for credit losses, stock-based compensation, carrying value of goodwill, intangibles and other long-lived assets, financial assets, valuation allowances for tax assets, revenue recognition and costs of revenue.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents represent demand deposits, money market funds and short-term investments classified as available-for-sale with original maturities of three months or less. We maintain depository investments with certain financial institutions. As of December 31, 2024 $72.4 million of our cash and cash equivalents, primarily certain domestic money market funds and foreign depository accounts, were in excess of government provided insured depository limits. Although these depository investments may exceed government insured depository limits, we have evaluated the credit worthiness of these applicable financial institutions and determined the risk of material financial loss due to the exposure of such credit risk to be minimal.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values.

The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments.

The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivatives are included in Note 10.

Investments with contractual maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Despite the long-term nature of their stated contractual maturities, we routinely buy and sell these securities and we believe we have the ability to quickly sell them to the remarketing agent, tender agent or issuer at par value plus accrued interest in the event we decide to liquidate our investment in a particular variable rate demand note. All income generated from these investments is recorded as interest income. We have not recorded any losses relating to variable rate demand notes.

Long-term investments is comprised of our deferred compensation plan assets, marketable equity securities and other equity investments. Marketable equity securities are reported at fair value as determined by the most recently traded price of the securities at the balance sheet date, although the securities may not be readily marketable due to the size of the available market. Any changes in fair value are recognized in net investment gain (loss). Realized gains and losses on sales of debt securities are computed under the specific identification method and are included in other income, net. See Note 4 for additional information.

Accounts Receivable

Accounts Receivable

The Company records accounts receivable at amortized cost. Prior to establishing payment terms for a new customer, we evaluate the credit risk of the customer. Credit limits and payment terms established for new customers are re-evaluated periodically based on customer collection experience and other financial factors. As of December 31, 2024, no customer comprised more than 10% of our

total accounts receivable balance. As of December 31, 2023, a single customer comprised more than 10% of our total accounts receivable balance, which accounted for 12.2% of our total accounts receivable.

The Company regularly reviews the need for an allowance for credit losses related to our outstanding accounts receivable balances using the historical loss-rate method, as well as assessing asset-specific risks. The assessment of asset-specific risks included the evaluation of relevant available information, from internal and external sources, relating to current conditions that may affect a customer’s ability to pay, such as the customer’s current financial condition or credit rating by geographic location, as provided by a third party and/or by customer, if needed, and overall macro-economic conditions in which the customer operates. Based on this assessment, an allowance for credit losses would be recorded if the Company determined that, based on our historical write-offs, which have been immaterial, and such asset specific risks, there was risk in collectability of the full amount of any accounts receivable.

Accounts Receivable Factoring

Accounts Receivable Factoring

Receivables Purchase Agreement

On July 1, 2024, the Company entered into a receivables purchase agreement (the “Factoring Agreement”) with a third-party financial institution (the “Factor”), which accelerates receivable collection and helps to better manage cash flow. These transactions are accounted for in accordance with ASC Topic 860 and result in a reduction in accounts receivable because the Factoring Agreement transfers effective control over, and risk related to the receivables to the buyers. Trade accounts receivables balances sold are removed from the Consolidated Balance Sheets and cash received is reflected as cash flows provided by (used in) operating activities in the Consolidated Statements of Cash Flow. Factoring related interest expense is recorded to interest expense on the Consolidated Statements of Loss. On each sale date, the Factor retains from the sale price a default reserve, up to a required balance, which is held by the Factor in a reserve account and pledged to the Company. The Factor is entitled to withdraw from the reserve account the sale price of a defaulted receivable. The balance in the reserve account is included in other assets on the Consolidated Balance Sheets.

Previous Receivables Purchase Agreement

On December 19, 2023, the Company entered into a factoring agreement with a third-party financial institution to sell, on a revolving basis, undivided interests in the Company’s accounts receivable. The factoring agreement qualified for treatment as a secured borrowing with a pledge of collateral under Accounting Standards Codification ("ASC") Topic 810, Consolidations, as the Company was considered the primary beneficiary in a variable interest entity created to hold the factored receivables and the Company retained a residual claim on reserves related to the factored receivables. The receivables factored were carried in accounts receivable, less allowance for credit losses on the Consolidated Balance Sheets, the secured borrowings were carried on the Company’s Consolidated Balance Sheets as a current liability, in accounts payable, proceeds and repayments of the secured borrowings are reflected as cash flows (used in) provided by financing activities in the Consolidated Statements of Cash Flows and program fees are recorded in interest expense in the Company’s Consolidated Statements of Loss. The short-term liability classification of the secured borrowings was based on the estimated timing of the collection of the accounts receivable which were expected to be received within 12 months. The receivables purchase agreement was terminated on July 1, 2024 and there were no secured borrowings under this agreement as of December 31, 2024. See Note 2 for additional information.

Inventory

Inventory

Inventory is carried at the lower of cost and estimated net realizable value, with cost being determined using the first-in, first-out method. Standard costs for material, labor and manufacturing overhead are used to value inventory and are updated at least quarterly. We establish reserves for estimated excess and obsolete inventory equal to the difference between the cost of the inventory and the estimated net realizable value of the inventory based on estimated reserve percentages, which consider historical usage, known trends, inventory age and market conditions. When we dispose of excess and obsolete inventories, the related disposals are charged against the inventory reserve. See Note 5 for additional information.

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment, which is stated at cost, is depreciated using the straight-line method over the estimated useful lives of the assets. We depreciate building and land improvements from 5 to 39 years, office machinery and equipment from three to seven years, engineering machinery and equipment from three to seven years, and computer software from three to five years. Expenditures for repairs and maintenance are charged to expense as incurred. Major improvements that materially prolong the lives of the assets are capitalized. Gains and losses on the disposal of property, plant and equipment are recorded in operating loss. See Note 6 for additional information.

Assets Held for Sale

Assets Held for Sale

An asset is considered to be held for sale when all the following criteria are met: (i) management commits to a plan to sell the asset; (ii) the asset is available for immediate sale in its present condition; (iii) actions required to complete the sale of the asset have been initiated; (iv) sale of the asset is probable and the completed sale is expected to occur within one year; (v) it is unlikely that the disposal plan will

be significantly modified; and (vi) the asset is actively being marketed for sale at a price that is reasonable given its current market value.

The Company records assets held for sale at the lower of their carrying value or fair value. The total carrying value of assets held for sale was $11.9 million as of December 31, 2024 and is separately recorded on the balance sheet.

Intangible Assets

Intangible Assets

Purchased intangible assets with finite lives are carried at cost less accumulated amortization. Amortization is recorded over the estimated useful lives of the respective assets. See Note 9 for additional information.

Impairment of Long-Lived Assets and Intangibles

Long-lived assets, such as property, plant and equipment, right of use lease assets and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset or asset group.

During the first quarter of 2024, factors triggered a quantitative impairment assessment for the Network Solutions asset group. The long-lived assets associated with the Network Solutions asset group was approximately $361.5 million as of December 31, 2024

There were no impairment losses for long-lived assets and intangible assets during the years ended December 31, 2024, 2023 and 2022. See Note 9 for additional information.

Goodwill

Goodwill

Goodwill represents the excess purchase price over the fair value of net assets acquired. The Company’s annual impairment assessment is done at the reporting unit level, which we determined are generally the same as our operating segments, which are identified in Note 16 to the Consolidated Financial Statements. We review goodwill for impairment annually during the fourth quarter and also test for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of our reporting units below their carrying amount. Such events and circumstances may include among others: a significant adverse change in legal factors or in the general business climate; significant decline in our stock price and market capitalization; unanticipated competition; the testing for recoverability of a significant asset within the reporting unit; and an adverse action or assessment by a regulator. Any adverse change in these factors could have a significant impact on the recoverability of goodwill and could have a material impact on our consolidated financial statements.

The Company’s annual impairment test date is October 1, 2024. Based on our analysis, management concluded that there was no impairment of goodwill as of that date. Between the annual impairment date of October 1, 2024 and year-end December 31, 2024, there were no additional triggering events.

The Company recognized impairments of $297.4 million and $37.9 million during the years ended December 31, 2024 and 2023, respectively. No goodwill impairment charge was recorded during the year ended December 31, 2022. See Note 8 for additional information.

Other Non-Current Assets

Other Non-Current Assets

Implementation costs incurred for hosting arrangements that are related to service contracts are capitalized and amortized over the term of the arrangement. Capitalized implementation costs totaled $0.1 million and $0.3 million as of December 31, 2024 and 2023, respectively, and are included in other non-current assets on the Consolidated Balance Sheets. In connection with the planned integration of information technology following the Business Combination, we determined that certain projects no longer fit our needs. The Company recognized impairment charges of $16.9 million during the year ended December 31, 2022 primarily related to capitalized implementation costs for a cloud computing arrangement. The impairment charges were determined based on actual costs incurred. During the year ended December 31, 2024 and 2023, no impairment charges were recognized. We depreciate capitalized implementation costs over various lives. Amortization expense was $0.1 million, $5.9 million and $3.9 million for the years ended December 31, 2024, 2023 and 2022, respectively, which is recorded almost entirely in selling, general and administrative expenses in the Consolidated Statements of Loss.

Pension Benefit Plan Obligations

Pension Benefit Plan Obligations

The Company maintains a defined benefit pension plans covering employees in certain foreign countries. Pension benefit plan obligations are based on various assumptions used by our actuaries in calculating these amounts. These assumptions include discount rates, compensation rate increases, expected return on plan assets, retirement rates and mortality rates. Actual results that differ from the assumptions and changes in assumptions could affect future expenses and obligations. See Note 13 for additional information.

Lease Obligations

Lease Obligations

The Company has operating leases for office space, automobiles and various other equipment in the U.S. and in certain international locations. Other contracts, such as manufacturing agreements and service agreements, are reviewed to determine if they contain potential embedded leases. These other contracts are specifically reviewed to determine whether we have the right to substantially all of the economic benefit from the use of any specified assets or the right to direct the use of any specified assets, either of which would indicate the existence of a lease. Some of our leases include options to renew. For those leases that are reasonably assured to be renewed, we have included the option to extend as part of our right of use asset and lease liability. The exercise of lease renewal options is at our sole discretion. The depreciable life of leased assets and leasehold improvements are limited by the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet and lease expense for these leases is recognized on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, we elected to not separate lease and non-lease components. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Stock-Based Compensation

Stock-Based Compensation

The Company has two stock incentive plans from which stock options, performance stock units (“PSUs”), restricted stock units (“RSUs”) and restricted stock are available for grant to employees and directors. Costs related to these awards are recognized over their vesting periods.

Stock-based compensation expense recognized for the years ended December 31, 2024, 2023 and 2022 was approximately $16.0 million, $16.4 million and $28.3 million, respectively. See Note 3 for additional information.

Research and Development Costs

Research and Development Costs

Research and development costs include compensation for engineers and support personnel, contracted services, depreciation and material costs associated with new product development, enhancement of current products and product cost reductions. We continually evaluate new product opportunities and engage in intensive research for product and software development efforts. Research and development costs totaled $221.5 million, $258.3 million and $173.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Adtran Networks has arrangements with governmental entities for the purposes of obtaining funding for research and development activities. The Company classifies government grants received under these arrangements as a reduction to research and development expense incurred. For the years ended December 31, 2024, 2023 and 2022, the Company recognized $9.2 million, $5.2 million and $1.1 million, respectively, as a reduction of research and development expense.

Income Taxes

Income Taxes

The provision for income taxes has been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from the difference between financial and tax basis of our assets and liabilities and are adjusted for changes in tax rates and tax laws when such changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized.

In determining whether an uncertain tax position exists, the Company determines, based solely on its technical merits, whether the tax position is more likely than not to be sustained upon examination, and if so, a tax benefit is measured on a cumulative probability basis that is more likely than not to be realized upon the ultimate settlement. The Company recognizes interest and penalties related to unrecognized tax benefits through interest expense and income tax expense, respectively.

Foreign Currency

Foreign Currency

Transactions with customers that are denominated in foreign currencies are recorded using the appropriate exchange rates from throughout the year. Assets and liabilities denominated in foreign currencies are remeasured at the balance sheet dates using the closing rates of exchange between those foreign currencies and the functional currency with any transaction gains or losses reported in other income, net. Our primary exposures to foreign currency exchange rate movements are with our German and United Kingdom subsidiaries, whose functional currencies are the euro and the British pound sterling. Adjustments resulting from translating financial statements of international subsidiaries are recorded as a component of accumulated other comprehensive income.

Revenue

Revenue

Revenue is measured based on the consideration expected to be received in exchange for transferring goods or providing services to a customer and as performance obligations under the terms of the contract are satisfied. Generally, this occurs with the transfer of control of a product to the customer. For transactions where there are multiple performance obligations, individual products and services are accounted for separately if they are distinct (if a product or service is separately identifiable from other items and if a customer can

benefit from it on its own or with other resources that are readily available to the customer). The consideration, including any discounts, is allocated between separate products and services based on their stand-alone selling prices. Stand-alone selling prices are determined based on the prices at which the separate products and services are sold and are allocated based on each item’s relative value to the total value of the products and services in the arrangement. For items that are not sold separately, we estimate stand-alone selling prices primarily using the “expected cost plus a margin” approach. Payment terms are generally 30 days in the U.S. and typically longer in many geographic markets outside the U.S. Shipping fees collected are recorded as revenue and the related cost is included in cost of revenue. Revenue, value-added and other taxes collected concurrently with revenue-producing activities are excluded from revenue. Incremental costs of obtaining a contract, that are recoverable, are capitalized and amortized over the period that the related revenue is recognized if greater than one year. We have elected to account for shipping fees paid as a cost of fulfilling the related contract. We have also elected to apply the practical expedient related to the incremental costs of obtaining contracts and recognize those costs as an expense when incurred if the amortization period of the assets is one year or less. These costs are included in selling, general and administrative expenses. Capitalized costs with an amortization period greater than one year were immaterial.

Revenue is generated by two reportable segments: Network Solutions and Services & Support.

Network Solutions Segment - Includes hardware products and software defined next-generation virtualized solutions used in Service Provider or business networks, as well as prior generation products. The majority of the revenue from this segment is from hardware revenue.

Hardware and Software Revenue

Revenue from hardware sales is recognized when control is transferred to the customer, which is generally when the products are shipped. Shipping terms are generally FOB shipping point. Revenue from software license sales is recognized at delivery and transfer of control to the customer. Revenue is recognized net of estimated discounts and rebates using historical trends. Customers are typically invoiced when control is transferred and revenue is recognized. Our products generally include assurance-based warranties of 90 days to five years for product defects, which are accrued at the time products are delivered.

Services & Support Segment - Includes a complete portfolio of maintenance, network implementation and solutions integration and managed services, which include hosted cloud services and subscription services to complement our Network Solutions segment.

Maintenance Revenue

Our maintenance service periods range from one month to five years. Customers are typically invoiced and pay for maintenance services at the beginning of the maintenance period. We recognize revenue for maintenance services on a straight-line basis over the maintenance period as our customers benefit evenly throughout the contract term and deferred revenue, when applicable, are recorded in current and non-current unearned revenue.

Network Implementation Revenue

The Company recognizes revenue for network implementation, which primarily consists of engineering, execution and enablement services at a point in time when each performance obligation is complete. If we have recognized revenue but have not billed the customer, the right to consideration is recognized as a contract asset that is included in other receivables on the Consolidated Balance Sheet. The contract asset is transferred to accounts receivable when the completed performance obligation is invoiced to the customer.

See Notes 2 and 16 for additional information on reportable segments.

Unearned Revenue

Unearned Revenue

Unearned revenue primarily represents customer billings on maintenance service programs and unearned revenue related to multiple element contracts where we still have contractual obligations to our customers. We currently offer maintenance contracts ranging from one month to five years. Revenue attributable to maintenance contracts is recognized on a straight-line basis over the related contract term. In addition, we provide software maintenance and a variety of hardware maintenance services to customers under contracts with terms up to ten years. When we defer revenue related to multiple performance obligations where we still have contractual obligations, we also defer the related costs. Current deferred costs are included in prepaid expenses and other current assets on the accompanying Consolidated Balance Sheets and totaled $2.2 million and $2.1 million as of December 31, 2024 and 2023, respectively. Non-current deferred costs included in other non-current assets on the accompanying Consolidated Balance Sheets were less than $0.1 million as of December 31, 2024 and December 31, 2023.

Redeemable Non-Controlling Interest

Redeemable Non-Controlling Interest

As of December 31, 2024 and 2023, the non-controlling Adtran Networks stockholders’ equity ownership percentage in Adtran Networks was approximately 33.0% and 34.7%, respectively.

As a result of the effectiveness of the DPLTA on January 16, 2023, the Adtran Networks shares, representing the equity interest in Adtran Networks held by holders other than the Company, can be tendered at any time and are, therefore, redeemable and must be

classified outside stockholders’ equity. Therefore, the permanent equity noncontrolling interest balance was reclassified to redeemable non-controlling interest (RNCI) on January 16, 2023 and was remeasured to fair value based on the trading market price of the Adtran Networks shares.

Subsequently, the carrying value of the RNCI is adjusted to its maximum redemption value at each reporting date when the maximum redemption value is greater than the initial carrying amount of the RNCI. For the period of time that the DPLTA is in effect, the RNCI will continue to be presented as RNCI outside of stockholders’ equity in the Consolidated Balance Sheets. See Note 15 for additional information on RNCI.

Loss per Share

Loss per Share

Loss per common share and loss per common share assuming dilution are based on the weighted average number of common shares and, when dilutive, common equivalent shares outstanding during the year. See Note 19 for additional information.

Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $3.0 million effect of redemption of RNCI for the year ended December 31, 2024. See Note 19 for additional information.

Recent Accounting Pronouncements Not Yet Adopted

Recent Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, as amended by ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which applies to all public business entities and is intended to enhance disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The amendments are effective prospectively in the first annual period beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption and retrospective application are permitted. The Company is currently evaluating the effect that adoption of ASU 2024-03 will have on our disclosures.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", which is intended to enhance the transparency, decision usefulness and effectiveness of income tax disclosures. The amendments in this ASU require a public entity to disclose a tabular tax rate reconciliation, using both percentages and currency, with specific categories. A public entity is also required to provide a qualitative description of the states and local jurisdictions that make up the majority of the effect of the state and local income tax category and the net amount of income taxes paid, disaggregated by federal, state and foreign taxes and also disaggregated by individual jurisdictions. The amendments also remove certain disclosures that are no longer considered cost beneficial. The amendments are effective prospectively for annual periods beginning after December 15, 2024, and early adoption and retrospective application are permitted. The Company is currently evaluating the effect that adoption of ASU 2023-09 will have on our disclosures.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-7, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures", which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment's profit or loss to assess potential future cash flows for each reportable segment and the entity as a whole. The amendments expand a public entity's segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), clarifying when an entity may report one or more additional measures to assess segment performance, requiring enhanced interim disclosures, providing new disclosure requirements for entities with a single reportable segment, and requiring other new disclosures. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

The Company adopted the new standard on January 1, 2024. The adoption of this standard resulted in additional footnote disclosures. The adoption of this standard did not have a material impact on our Consolidated Balance Sheet, Consolidated Statement of Income or Consolidated Statement of Cash Flows. See Note 16 for additional information.

There have been no other recently adopted accounting pronouncements that are expected to have a material effect on the Consolidated Financial Statements.

Reclassification of Prior Year Presentation

Reclassification of Prior Year Presentation

Certain prior year amounts have been reclassified for consistency with current year presentation. These reclassifications had no effect on reported results of operations. An adjustment has been made to the Consolidated Balance Sheet and Consolidated Statement of Cash Flows for the fiscal year ended December 31, 2023, to reclassify between Property, Plant and Equipment and Intangible Assets.

v3.25.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Impact of Restatements to Specific Line Items Previously Reported in Consolidated Financial Statements

The following tables reflect the impact of the restatements to the specific line items presented in the Company’s previously reported Consolidated Balance Sheets as of December 31, 2024 and 2023.

 

 

 

As of December 31, 2024

 

ASSETS

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Current Assets

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

77,567

 

 

$

(1,546

)

 

$

76,021

 

Accounts receivable, less allowance for credit losses of $1,300 as of December 31, 2024

 

 

 

178,030

 

 

 

 

 

 

178,030

 

Other receivables

 

 

 

9,775

 

 

 

 

 

 

9,775

 

Income tax receivable

 

 

 

5,461

 

 

 

 

 

 

5,461

 

Inventory, net

ADJ 3

 

 

269,337

 

 

 

(7,780

)

 

 

261,557

 

Assets held for sale

 

 

 

11,901

 

 

 

 

 

 

11,901

 

Prepaid expenses and other current assets

 

 

 

58,534

 

 

 

(2,139

)

 

 

56,395

 

Total Current Assets

 

 

 

610,605

 

 

 

(11,465

)

 

 

599,140

 

Property, plant and equipment, net

 

 

 

102,942

 

 

 

3,512

 

 

 

106,454

 

Deferred tax assets, net

 

 

 

17,826

 

 

 

 

 

 

17,826

 

Goodwill

 

 

 

52,918

 

 

 

 

 

 

52,918

 

Intangibles, net

 

 

 

284,893

 

 

 

 

 

 

284,893

 

Other non-current assets

 

 

 

78,128

 

 

 

 

 

 

78,128

 

Long-term investments

 

 

 

32,060

 

 

 

 

 

 

32,060

 

Total Assets

 

 

$

1,179,372

 

 

$

(7,953

)

 

$

1,171,419

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

$

170,451

 

 

$

1,374

 

 

$

171,825

 

Unearned revenue

 

 

 

52,701

 

 

 

 

 

 

52,701

 

Accrued expenses and other liabilities

 

 

 

35,704

 

 

 

(1,546

)

 

 

34,158

 

Accrued wages and benefits

 

 

 

32,853

 

 

 

 

 

 

32,853

 

Income tax payable

 

 

 

1,936

 

 

 

 

 

 

1,936

 

Total Current Liabilities

 

 

 

293,645

 

 

 

(172

)

 

 

293,473

 

     Non-current revolving credit agreement outstanding

 

 

 

189,576

 

 

 

-

 

 

 

189,576

 

Deferred tax liabilities

 

 

 

30,690

 

 

 

(318

)

 

 

30,372

 

Non-current unearned revenue

 

 

 

22,065

 

 

 

 

 

 

22,065

 

Non-current pension liability

 

 

 

8,983

 

 

 

 

 

 

8,983

 

Deferred compensation liability

 

 

 

33,203

 

 

 

 

 

 

33,203

 

Non-current lease obligations

 

 

 

25,925

 

 

 

 

 

 

25,925

 

Other non-current liabilities

 

 

 

17,928

 

 

 

 

 

 

17,928

 

Total Liabilities

 

 

 

622,015

 

 

 

(490

)

 

 

621,525

 

Commitments and contingencies (see Note 18)

 

 

 

 

 

 

 

 

 

 

Redeemable Non-Controlling Interest

 

 

 

422,943

 

 

 

 

 

 

422,943

 

Equity

 

 

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share; 200,000 shares authorized;
   
79,483 shares issued and 79,218 outstanding as of December 31, 2024

 

 

 

795

 

 

 

 

 

 

795

 

Additional paid-in capital

 

 

 

808,913

 

 

 

 

 

 

808,913

 

Accumulated other comprehensive income

ADJ 3, 4

 

 

10,897

 

 

 

357

 

 

 

11,254

 

Retained deficit

ADJ 3, 4

 

 

(680,993

)

 

 

(7,820

)

 

 

(688,813

)

Less treasury stock at cost: 266 shares as of December 31, 2024

 

 

 

(5,198

)

 

 

 

 

 

(5,198

)

Total Equity

 

 

 

134,414

 

 

 

(7,463

)

 

 

126,951

 

Total Liabilities and Equity

 

 

$

1,179,372

 

 

$

(7,953

)

 

$

1,171,419

 

 

 

 

 

As of December 31, 2023

 

ASSETS

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Current Assets

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

87,167

 

 

$

 

 

$

87,167

 

Accounts receivable, less allowance for credit losses of $400 as of December 31, 2023

 

 

 

216,445

 

 

 

(6,708

)

 

 

209,737

 

Other receivables

 

 

 

17,450

 

 

 

 

 

 

17,450

 

Income tax receivable

 

 

 

7,933

 

 

 

(4,735

)

 

 

3,198

 

Inventory, net

ADJ 3

 

 

362,295

 

 

 

(1,871

)

 

 

360,424

 

Prepaid expenses and other current assets

 

 

 

45,566

 

 

 

(4,575

)

 

 

40,991

 

Total Current Assets

 

 

 

736,856

 

 

 

(17,889

)

 

 

718,967

 

Property, plant and equipment, net

 

 

 

113,582

 

 

 

4,575

 

 

 

118,157

 

Deferred tax assets, net

ADJ 4

 

 

25,787

 

 

 

3,507

 

 

 

29,294

 

Goodwill

ADJ 4

 

 

353,415

 

 

 

4,735

 

 

 

358,150

 

Intangibles, net

 

 

 

337,423

 

 

 

 

 

 

337,423

 

Other non-current assets

 

 

 

87,706

 

 

 

 

 

 

87,706

 

Long-term investments

 

 

 

27,743

 

 

 

 

 

 

27,743

 

Total Assets

 

 

$

1,682,512

 

 

$

(5,072

)

 

$

1,677,440

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

$

162,922

 

 

$

 

 

$

162,922

 

Unearned revenue

 

 

 

46,731

 

 

 

(4,231

)

 

 

42,500

 

Accrued expenses and other liabilities

ADJ 1

 

 

37,607

 

 

 

(1,403

)

 

 

36,204

 

Accrued wages and benefits

 

 

 

27,030

 

 

 

122

 

 

 

27,152

 

Income tax payable

ADJ 4

 

 

5,221

 

 

 

 

 

 

5,221

 

Total Current Liabilities

 

 

 

279,511

 

 

 

(5,512

)

 

 

273,999

 

     Non-current revolving credit agreement outstanding

 

 

 

195,000

 

 

 

 

 

 

195,000

 

Deferred tax liabilities

ADJ 4

 

 

35,655

 

 

 

(89

)

 

 

35,566

 

Non-current unearned revenue

 

 

 

25,109

 

 

 

(2,477

)

 

 

22,632

 

Non-current pension liability

 

 

 

12,543

 

 

 

 

 

 

12,543

 

Deferred compensation liability

 

 

 

29,039

 

 

 

 

 

 

29,039

 

Non-current lease obligations

 

 

 

31,420

 

 

 

 

 

 

31,420

 

Other non-current liabilities

 

 

 

28,657

 

 

 

 

 

 

28,657

 

Total Liabilities

 

 

 

636,934

 

 

 

(8,078

)

 

 

628,856

 

Commitments and contingencies (see Note 20)

 

 

 

 

 

 

 

 

 

 

Redeemable Non-Controlling Interest

ADJ 2

 

 

451,756

 

 

 

(8,429

)

 

 

443,327

 

Equity

 

 

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share; 200,000 shares authorized;
   
78,970 shares issued and 78,674 outstanding as of December 31, 2023

 

 

 

790

 

 

 

 

 

 

790

 

Additional paid-in capital

 

 

 

795,304

 

 

 

(836

)

 

 

794,468

 

Accumulated other comprehensive income

ADJ 1

 

 

47,461

 

 

 

69

 

 

 

47,530

 

Retained deficit

ADJ 1, 2, 4

 

 

(243,908

)

 

 

12,202

 

 

 

(231,706

)

Less treasury stock at cost: 297 shares as of December 31, 2023

 

 

 

(5,825

)

 

 

 

 

 

(5,825

)

Total Equity

 

 

 

593,822

 

 

 

11,435

 

 

 

605,257

 

Total Liabilities and Equity

 

 

$

1,682,512

 

 

$

(5,072

)

 

$

1,677,440

 

 

The following tables reflect the impact of the restatements to the specific line items presented in the Company’s previously reported Consolidated Statement of Loss and the Consolidated Statement of Comprehensive Loss for the years ended December 31, 2024 and 2023.

 

 

 

Year Ended December 31, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

 

$

738,964

 

 

$

 

 

$

738,964

 

Services & Support

 

 

 

183,756

 

 

 

 

 

 

183,756

 

Total Revenue

 

 

 

922,720

 

 

 

 

 

 

922,720

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

ADJ 3

 

 

511,070

 

 

 

6,150

 

 

 

517,220

 

Network Solutions - inventory write-down and other charges

 

 

 

8,597

 

 

 

 

 

 

8,597

 

Services & Support

 

 

 

72,739

 

 

 

 

 

 

72,739

 

Total Cost of Revenue

 

 

 

592,406

 

 

 

6,150

 

 

 

598,556

 

Gross Profit

 

 

 

330,314

 

 

 

(6,150

)

 

 

324,164

 

Selling, general and administrative expenses

 

 

 

233,369

 

 

 

(451

)

 

 

232,918

 

Research and development expenses

 

 

 

221,463

 

 

 

(5

)

 

 

221,458

 

Goodwill impairment

ADJ 4

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Operating Loss

 

 

 

(417,101

)

 

 

(10,464

)

 

 

(427,565

)

Interest and dividend income

 

 

 

3,058

 

 

 

 

 

 

3,058

 

Interest expense

 

 

 

(22,053

)

 

 

 

 

 

(22,053

)

Net investment gain

 

 

 

3,587

 

 

 

 

 

 

3,587

 

Other income, net

 

 

 

246

 

 

 

 

 

 

246

 

Loss Before Income Taxes

 

 

 

(432,263

)

 

 

(10,464

)

 

 

(442,727

)

Income tax expense

ADJ 4

 

 

(8,785

)

 

 

1,445

 

 

 

(7,340

)

Net Loss

 

 

$

(441,048

)

 

$

(9,019

)

 

$

(450,067

)

Less: Net Income attributable to non-controlling interest(1)

 

 

 

9,824

 

 

 

 

 

 

9,824

 

Net Loss attributable to ADTRAN Holdings, Inc.

 

 

$

(450,872

)

 

$

(9,019

)

 

$

(459,891

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

 

78,928

 

 

 

78,928

 

 

 

78,928

 

Weighted average shares outstanding – diluted

 

 

 

78,928

 

 

 

78,928

 

 

 

78,928

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share attributable to ADTRAN Holdings, Inc. – basic

 

 

$

(5.67

)

 

$

(0.12

)

 

$

(5.79

)

Loss per common share attributable to ADTRAN Holdings, Inc. – diluted

 

 

$

(5.67

)

 

$

(0.12

)

 

$

(5.79

)

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(441,048

)

 

$

(9,019

)

 

$

(450,067

)

Other Comprehensive Loss, net of tax

 

 

 

 

 

 

 

 

 

 

Defined benefit plan adjustments

 

 

 

1,479

 

 

 

 

 

 

1,479

 

Foreign currency translation loss

ADJ 3, 4

 

 

(38,047

)

 

 

292

 

 

 

(37,755

)

Other Comprehensive Loss, net of tax

 

 

 

(36,568

)

 

 

292

 

 

 

(36,276

)

Comprehensive Loss, net of tax

 

 

 

(477,616

)

 

 

(8,727

)

 

 

(486,343

)

Less: Comprehensive Income attributable to non-controlling interest, net of tax

 

 

 

9,824

 

 

 

 

 

 

9,824

 

Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax

 

 

$

(487,440

)

 

$

(8,727

)

 

$

(496,167

)

(1) For the year ended December 31, 2024 we accrued $9.8 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA

 

 

 

Year Ended December 31, 2023

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

 

$

974,389

 

 

$

 

 

$

974,389

 

Services & Support

 

 

 

174,711

 

 

 

 

 

 

174,711

 

Total Revenue

 

 

 

1,149,100

 

 

 

 

 

 

1,149,100

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

ADJ 3

 

 

722,582

 

 

 

1,936

 

 

 

724,518

 

Network Solutions - Inventory Write Down

 

 

 

24,313

 

 

 

 

 

 

24,313

 

Services & Support

 

 

 

69,142

 

 

 

 

 

 

69,142

 

Total Cost of Revenue

 

 

 

816,037

 

 

 

1,936

 

 

 

817,973

 

Gross Profit

 

 

 

333,063

 

 

 

(1,936

)

 

 

331,127

 

Selling, general and administrative expenses

 

 

 

258,149

 

 

 

461

 

 

 

258,610

 

Research and development expenses

 

 

 

258,311

 

 

 

 

 

 

258,311

 

Goodwill impairment

 

 

 

37,874

 

 

 

 

 

 

37,874

 

Operating Loss

 

 

 

(221,271

)

 

 

(2,397

)

 

 

(223,668

)

Interest and dividend income

 

 

 

2,340

 

 

 

 

 

 

2,340

 

Interest expense

 

 

 

(16,299

)

 

 

 

 

 

(16,299

)

Net investment gain

 

 

 

2,754

 

 

 

 

 

 

2,754

 

Other income (expense), net

 

 

 

1,266

 

 

 

 

 

 

1,266

 

Loss Before Income Taxes

 

 

 

(231,210

)

 

 

(2,397

)

 

 

(233,607

)

Income tax expense

ADJ 4

 

 

(28,133

)

 

 

(166

)

 

 

(28,299

)

Net Loss

 

 

$

(259,343

)

 

$

(2,563

)

 

$

(261,906

)

Net Income attributable to non-controlling interest (1)

ADJ 1

 

 

8,345

 

 

 

(1,399

)

 

 

6,946

 

Net Loss attributable to ADTRAN Holdings, Inc.

 

 

$

(267,688

)

 

$

(1,164

)

 

$

(268,852

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

 

78,416

 

 

 

78,416

 

 

 

78,416

 

Weighted average shares outstanding – diluted

 

 

 

78,416

 

 

 

78,416

 

 

 

78,416

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share attributable to ADTRAN Holdings, Inc. – basic

 

 

$

(3.41

)

 

$

(0.01

)

 

$

(3.43

)

Loss per common share attributable to ADTRAN Holdings, Inc. – diluted

 

 

$

(3.41

)

 

$

(0.01

)

 

$

(3.43

)

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(259,343

)

 

$

(2,563

)

 

$

(261,906

)

Other Comprehensive Loss, net of tax

 

 

 

 

 

 

 

 

 

 

Net unrealized gain (loss) on available-for-sale securities

 

 

 

454

 

 

 

 

 

 

454

 

Defined benefit plan adjustments

 

 

 

(1,490

)

 

 

 

 

 

(1,490

)

Foreign currency translation gain

ADJ 1

 

 

22,753

 

 

 

69

 

 

 

22,822

 

Other Comprehensive Loss, net of tax

 

 

 

21,717

 

 

 

69

 

 

 

21,786

 

Comprehensive (Loss), net of tax

 

 

 

(237,626

)

 

 

(2,494

)

 

 

(240,120

)

Less: Comprehensive Income attributable to non-controlling interest

ADJ 1

 

 

8,727

 

 

 

(1,399

)

 

 

7,328

 

Comprehensive (Loss) attributable to ADTRAN Holdings, Inc., net of tax

 

 

$

(246,353

)

 

$

(1,095

)

 

$

(247,448

)

(1) For the year ended December 31, 2023, we have recognized $10.1 million, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA partially offset by a $3.2 million net loss attributable to non-controlling interests pre-DPLTA for the year ended December 31, 2023.

The following tables reflect the impact of the restatement to the specific line items presented in the Company's previously reported Consolidated Statement of Changes in Stockholders Equity for the periods ended December 31, 2024 and 2023:

 

 

Retained Deficit

 

 

Accumulated Other Comprehensive Income

 

 

Additional paid-in capital

 

(In thousands)

 

As Reported

 

 

Adjustment

 

 

As Restated

 

 

As Reported

 

 

Adjustment

 

 

As Restated

 

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Balance as of December 31, 2023

 

$

(243,908

)

 

$

12,202

 

 

$

(231,706

)

 

$

47,461

 

 

$

69

 

 

$

47,530

 

 

$

795,304

 

 

$

(836

)

 

$

794,468

 

Net loss

 

 

(441,048

)

 

 

(9,019

)

 

 

(450,067

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annual recurring compensation earned

 

 

(9,824

)

 

 

 

 

 

(9,824

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurement of redeemable non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,175

)

 

 

 

 

 

(1,175

)

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

(36,568

)

 

 

292

 

 

 

(36,276

)

 

 

 

 

 

 

 

 

 

Deferred compensation adjustments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(368

)

 

 

 

 

 

(368

)

ADTRAN RSUs and restricted stock vested

 

 

(1,026

)

 

 

 

 

 

(1,026

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADTRAN stock options exercised

 

 

824

 

 

 

 

 

 

824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Modification of Stock Options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(190

)

 

 

 

 

 

(190

)

Redemption of redeemable non-controlling interest

 

 

2,986

 

 

 

 

 

 

2,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADTRAN stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,825

 

 

 

 

 

 

14,825

 

Adtran Networks stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

517

 

 

 

836

 

 

 

1,353

 

Balance as of December 31, 2024

 

$

(691,996

)

 

$

3,183

 

 

$

(688,813

)

 

$

10,893

 

 

$

361

 

 

$

11,254

 

 

$

808,913

 

 

$

-

 

 

$

808,913

 

 

 

 

Retained Deficit

 

 

Accumulated Other Comprehensive Income

 

 

Additional paid-in capital

 

(In thousands)

 

As Reported

 

 

Adjustment

 

 

As Restated

 

 

As Reported

 

 

Adjustment

 

 

As Restated

 

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Balance as of December 31, 2022

 

$

55,338

 

 

$

 

 

$

55,338

 

 

$

26,126

 

 

$

 

 

$

26,126

 

 

$

895,834

 

 

$

 

 

$

895,834

 

Net loss

 

 

(256,164

)

 

 

(2,563

)

 

 

(258,727

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annual recurring compensation earned

 

 

(11,524

)

 

 

1,399

 

 

 

(10,125

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of Adtran Networks

 

 

 

 

 

3,762

 

 

 

3,762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification and remeasurement from equity to mezzanine equity for non-controlling interests in Adtran Networks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(116,895

)

 

 

 

 

 

(116,895

)

Mezzanine equity for non-controlling interest in Adtran Networks for Adtran Networks stock options exercised

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,175

)

 

 

(1,175

)

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

21,335

 

 

 

69

 

 

 

21,404

 

 

 

 

 

 

 

 

 

 

Dividend payments ($0.09 per share)

 

 

(21,237

)

 

 

 

 

 

(21,237

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends accrued on unvested restricted stock units

 

 

8

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred compensation adjustments, net of tax

 

 

(145

)

 

 

 

 

 

(145

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADTRAN RSUs and restricted stock vested

 

 

(1,115

)

 

 

 

 

 

(1,115

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADTRAN stock options exercised

 

 

164

 

 

 

 

 

 

164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redemption of redeemable non-controlling interest

 

 

371

 

 

 

 

 

 

371

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency remeasurement of redeemable non-controlling interest

 

 

(9,604

)

 

 

9,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adtran Networks stock options exercised

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

323

 

 

 

 

 

 

323

 

Modification of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

339

 

 

 

339

 

ADTRAN stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,016

 

 

 

 

 

 

16,016

 

Adtran Networks stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26

 

 

 

 

 

 

26

 

Balance as of December 31, 2023

 

$

(243,908

)

 

$

12,202

 

 

$

(231,706

)

 

$

47,461

 

 

$

69

 

 

$

47,530

 

 

$

795,304

 

 

$

(836

)

 

$

794,468

 

 

The following tables reflect the impact of the restatement to the specific line items presented in the Company's previously reported Consolidated Statements of Cash Flows for the years ended December 31, 2024 and 2023:

 

 

 

Year Ended December 31, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(441,048

)

 

$

(9,019

)

 

$

(450,067

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

90,985

 

 

 

(456

)

 

 

90,529

 

Goodwill impairment

ADJ 4

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Amortization of debt issuance cost

 

 

 

3,950

 

 

 

 

 

 

3,950

 

Gain on investments

 

 

 

(5,030

)

 

 

 

 

 

(5,030

)

Net loss on disposal of property, plant and equipment

 

 

 

1,371

 

 

 

 

 

 

1,371

 

Stock-based compensation expense

 

 

 

15,342

 

 

 

646

 

 

 

15,988

 

Deferred income taxes

 

 

 

2,247

 

 

 

3,329

 

 

 

5,576

 

Inventory write down - business efficiency program

 

 

 

4,135

 

 

 

 

 

 

4,135

 

Inventory reserves

ADJ 3

 

 

3,980

 

 

 

1,336

 

 

 

5,316

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

 

46,108

 

 

 

 

 

 

46,108

 

Other receivables

 

 

 

10,713

 

 

 

 

 

 

10,713

 

Income taxes receivable

ADJ 4

 

 

648

 

 

 

 

 

 

648

 

Inventory

ADJ 3

 

 

75,171

 

 

 

4,814

 

 

 

79,985

 

Prepaid expenses, other current assets and other assets

 

 

 

(10,718

)

 

 

(2,727

)

 

 

(13,445

)

Accounts payable

 

 

 

11,784

 

 

 

(1,546

)

 

 

10,238

 

Accrued expenses and other liabilities

 

 

 

5,519

 

 

 

(646

)

 

 

4,873

 

Income taxes payable

 

 

 

(4,670

)

 

 

 

 

 

(4,670

)

Net cash provided by operating activities

 

 

 

103,070

 

 

 

501

 

 

 

103,571

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

 

(32,454

)

 

 

(2,047

)

 

 

(34,501

)

Purchases of intangibles - developed technology

 

 

 

(30,671

)

 

 

 

 

 

(30,671

)

Proceeds from sales and maturities of available-for-sale investments

 

 

 

1,240

 

 

 

 

 

 

1,240

 

Purchases of available-for-sale investments

 

 

 

(268

)

 

 

 

 

 

(268

)

Payments for beneficial interests in securitized accounts receivable

 

 

 

(55

)

 

 

 

 

 

(55

)

Net cash used in investing activities

 

 

 

(62,208

)

 

 

(2,047

)

 

 

(64,255

)

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Tax withholdings related to stock-based compensation settlements

 

 

 

(1,143

)

 

 

 

 

 

(1,143

)

Proceeds from stock option exercises

 

 

 

824

 

 

 

 

 

 

824

 

Proceeds from receivables purchase agreement

 

 

 

68,556

 

 

 

 

 

 

68,556

 

Repayments on receivables purchase agreement

 

 

 

(83,772

)

 

 

 

 

 

(83,772

)

Proceeds from draw on revolving credit agreements

 

 

 

26,000

 

 

 

 

 

 

26,000

 

Repayment of revolving credit agreements

 

 

 

(31,000

)

 

 

 

 

 

(31,000

)

Redemption of redeemable non-controlling interest

 

 

 

(17,398

)

 

 

 

 

 

(17,398

)

Payment of annual recurring compensation to non-controlling interest

 

 

 

(10,084

)

 

 

 

 

 

(10,084

)

Payment of debt issuance cost

 

 

 

(1,994

)

 

 

 

 

 

(1,994

)

Net cash used in financing activities

 

 

 

(50,011

)

 

 

 

 

 

(50,011

)

 

 

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

 

 

(9,149

)

 

 

(1,546

)

 

 

(10,695

)

Effect of exchange rate changes

 

 

 

(451

)

 

 

 

 

 

(451

)

Cash and cash equivalents, beginning of period

 

 

 

87,167

 

 

 

 

 

 

87,167

 

Cash and cash equivalents, end of period

 

 

$

77,567

 

 

$

(1,546

)

 

$

76,021

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

 

$

20,884

 

 

$

 

 

$

20,884

 

Cash paid for income taxes, net of refunds

 

 

$

6,691

 

 

$

 

 

$

6,691

 

Cash used in operating activities related to operating leases

 

 

$

9,274

 

 

$

 

 

$

9,274

 

Supplemental disclosure of non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations

 

 

$

5,317

 

 

$

 

 

$

5,317

 

Purchases of property, plant and equipment included in accounts payable

 

 

$

2,635

 

 

$

 

 

$

2,635

 

Redemption of redeemable non-controlling interest

 

 

$

2,986

 

 

$

 

 

$

2,986

 

 

 

 

 

Year Ended December 31, 2023

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(259,343

)

 

$

(2,563

)

 

$

(261,906

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

112,949

 

 

 

 

 

 

112,949

 

Goodwill impairment

 

 

 

37,874

 

 

 

 

 

 

37,874

 

Amortization of debt issuance cost

 

 

 

862

 

 

 

 

 

 

862

 

Accretion on available-for-sale investments, net

 

 

 

(22

)

 

 

 

 

 

(22

)

Gain on investments

 

 

 

(2,900

)

 

 

 

 

 

(2,900

)

Net loss on disposal of property, plant and equipment

 

 

 

458

 

 

 

 

 

 

458

 

Stock-based compensation expense

 

 

 

16,016

 

 

 

365

 

 

 

16,381

 

Deferred income taxes

ADJ 4

 

 

15,558

 

 

 

166

 

 

 

15,724

 

Inventory write down

 

 

 

24,313

 

 

 

 

 

 

24,313

 

Inventory reserves

 

 

 

25,546

 

 

 

 

 

 

25,546

 

Other, net

 

 

 

(2,942

)

 

 

 

 

 

(2,942

)

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

 

65,612

 

 

 

6,708

 

 

 

72,320

 

Other receivables

 

 

 

10,315

 

 

 

 

 

 

10,315

 

Income taxes receivable

 

 

 

(2,637

)

 

 

4,735

 

 

 

2,098

 

Inventory

ADJ 3

 

 

20,537

 

 

 

1,871

 

 

 

22,408

 

Prepaid expenses, other current assets and other assets

 

 

 

(29,883

)

 

 

(2,081

)

 

 

(31,964

)

Accounts payable

 

 

 

(91,907

)

 

 

 

 

 

(91,907

)

Accrued expenses and other liabilities

 

 

 

17,929

 

 

 

(6,612

)

 

 

11,317

 

Income taxes payable

 

 

 

(3,939

)

 

 

 

 

 

(3,939

)

Net cash (used in) provided by operating activities

 

 

 

(45,604

)

 

 

2,589

 

 

 

(43,015

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

 

(33,683

)

 

 

(2,654

)

 

 

(36,337

)

Purchases of intangibles - developed technology

 

 

 

(9,438

)

 

 

 

 

 

(9,438

)

Proceeds from sales and maturities of available-for-sale investments

 

 

 

10,567

 

 

 

 

 

 

10,567

 

Purchases of available-for-sale investments

 

 

 

(868

)

 

 

 

 

 

(868

)

Proceeds from beneficial interests in securitized accounts receivable

 

 

 

1,218

 

 

 

 

 

 

1,218

 

Net cash used in investing activities

 

 

 

(32,204

)

 

 

(2,654

)

 

 

(34,858

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Tax withholdings related to stock-based compensation settlements

 

 

 

(6,458

)

 

 

 

 

 

(6,458

)

Proceeds from stock option exercises

 

 

 

540

 

 

 

 

 

 

540

 

Dividend payments

 

 

 

(21,237

)

 

 

 

 

 

(21,237

)

Proceeds from receivables purchase agreement

 

 

 

14,099

 

 

 

 

 

 

14,099

 

Proceeds from draw on revolving credit agreements

 

 

 

163,733

 

 

 

 

 

 

163,733

 

Repayment of revolving credit agreements

 

 

 

(64,987

)

 

 

 

 

 

(64,987

)

Redemption of redeemable non-controlling interest

 

 

 

(1,224

)

 

 

 

 

 

(1,224

)

Payment of debt issuance cost

 

 

 

(708

)

 

 

 

 

 

(708

)

Repayment of notes payable

 

 

 

(24,891

)

 

 

 

 

 

(24,891

)

Net cash provided by financing activities

 

 

 

58,867

 

 

 

 

 

 

58,867

 

Net decrease in cash and cash equivalents

 

 

 

(18,941

)

 

 

(65

)

 

 

(19,006

)

Effect of exchange rate changes

 

 

 

(2,536

)

 

 

65

 

 

 

(2,471

)

Cash, cash equivalents and restricted cash, beginning of year

 

 

 

108,644

 

 

 

 

 

 

108,644

 

Cash, cash equivalents and restricted cash, end of year

 

 

$

87,167

 

 

$

 

 

$

87,167

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash financing activities

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

 

$

12,596

 

 

$

 

 

$

12,596

 

Cash paid for income taxes, net of refunds

 

 

$

18,552

 

 

$

 

 

$

18,552

 

Cash used in operating activities related to operating leases

 

 

$

9,682

 

 

$

 

 

$

9,682

 

Supplemental disclosure of non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations

 

 

$

17,865

 

 

$

 

 

$

17,865

 

Purchases of property, plant and equipment included in accounts payable

 

 

$

1,298

 

 

$

 

 

$

1,298

 

Redemption of redeemable non-controlling interest

 

 

$

371

 

 

$

 

 

$

371

 

 

v3.25.1
Revenue (Tables)
12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Disaggregate of Revenue by Reportable Segment and Revenue Category

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2024:

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

295,541

 

 

$

35,237

 

 

$

330,778

 

Access & Aggregation Solutions

 

 

232,934

 

 

 

58,072

 

 

 

291,006

 

Optical Networking Solutions

 

 

210,489

 

 

 

90,447

 

 

 

300,936

 

Total

 

$

738,964

 

 

$

183,756

 

 

$

922,720

 

 

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2023:

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

263,192

 

 

$

34,516

 

 

$

297,708

 

Access & Aggregation Solutions

 

 

304,074

 

 

 

54,344

 

 

 

358,418

 

Optical Networking Solutions

 

 

407,123

 

 

 

85,851

 

 

 

492,974

 

Total

 

$

974,389

 

 

$

174,711

 

 

$

1,149,100

 

 

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2022:

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

364,238

 

 

$

26,216

 

 

$

390,454

 

Access & Aggregation Solutions

 

 

326,934

 

 

 

47,068

 

 

 

374,002

 

Optical Networking Solutions

 

 

225,621

 

 

 

35,459

 

 

 

261,080

 

Total

 

$

916,793

 

 

$

108,743

 

 

$

1,025,536

 

 

Information about Receivable, Contract Assets, and Unearned Revenue from Contracts with Customers

The following table provides information about accounts receivable, contract assets and unearned revenue from contracts with customers:

 

(In thousands)

 

December 31, 2024
(Restated)

 

 

December 31, 2023
(Restated)

 

Accounts receivable

 

$

178,030

 

 

$

209,737

 

Contract assets(1)

 

$

631

 

 

$

691

 

Unearned revenue

 

$

52,701

 

 

$

42,500

 

Non-current unearned revenue

 

$

22,065

 

 

$

22,632

 

(1) Included in other receivables on the Consolidated Balance Sheets.

v3.25.1
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2024
Stock-Based Compensation Expense Related to Stock Options, PSUs, RSUs and Restricted Stock

The following table summarizes stock-based compensation expense related to stock options, PSUs, RSUs and restricted stock for the years ended December 31, 2024, 2023 and 2022:

 

(In thousands)

 

2024
(Restated)

 

 

2023
(Restated)

 

 

2022

 

Stock-based compensation expense included in cost of revenue

 

$

1,142

 

 

$

1,293

 

 

$

2,876

 

Selling, general and administrative expenses

 

 

11,058

 

 

 

11,066

 

 

 

20,844

 

Research and development expenses

 

 

3,788

 

 

 

4,022

 

 

 

4,602

 

Stock-based compensation expense included in operating expenses

 

 

14,846

 

 

 

15,088

 

 

 

25,446

 

Total stock-based compensation expense

 

 

15,988

 

 

 

16,381

 

 

 

28,322

 

Tax benefit for expense associated with non-qualified stock options, PSUs, RSUs and restricted stock

 

 

(1,976

)

 

 

(3,837

)

 

 

(5,152

)

Total stock-based compensation expense, net of tax

 

$

14,012

 

 

$

12,544

 

 

$

23,170

 

 

Summary of PSUs, RSUs and Restricted Stock Outstanding

The following table is a summary of our PSUs, RSUs and restricted stock outstanding as of December 31, 2023 and 2024 and the changes that occurred during 2024:

 

 

 

Number of
shares (In thousands)

 

 

Weighted
Average Grant
Date Fair Value
(Per Share)

 

Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2023

 

 

1,942

 

 

$

17.46

 

PSUs, RSUs and restricted stock granted

 

 

1,097

 

 

$

7.85

 

PSUs, RSUs and restricted stock vested

 

 

(575

)

 

$

18.76

 

PSUs, RSUs and restricted stock forfeited

 

 

(129

)

 

$

14.20

 

Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2024

 

 

2,335

 

 

$

13.22

 

Summary of Stock Options Outstanding

The following table is a summary of stock options outstanding as of December 31, 2024 and 2023 and the changes that occurred during 2024:

 

 

Number of
Options
(In thousands)

 

 

Weighted
Average
Exercise Price
(Per share)

 

 

Weighted Average
Remaining
Contractual Life
in Years

 

 

Aggregate
Intrinsic
Value
(In thousands)

 

Stock options outstanding, December 31, 2023

 

 

3,894

 

 

$

10.32

 

 

 

5.25

 

 

$

3,087

 

Stock options exercised

 

 

(139

)

 

$

5.93

 

 

 

 

 

 

 

Stock options forfeited

 

 

(202

)

 

$

6.78

 

 

 

 

 

 

 

Stock options expired

 

 

(609

)

 

$

14.69

 

 

 

 

 

 

 

Stock options outstanding, December 31, 2024

 

 

2,944

 

 

$

9.86

 

 

 

4.98

 

 

$

3,762

 

Stock options exercisable, December 31, 2024

 

 

1,465

 

 

$

8.73

 

 

 

4.18

 

 

$

1,960

 

Stock Options Outstanding

The following table further describes our stock options outstanding as of December 31, 2024:

 

 

Options Outstanding

 

 

Options Exercisable

 

Range of
Exercise Prices (Per Share)

 

Options
Outstanding at
December 31, 2024
(In thousands)

 

 

Weighted Average
Remaining
Contractual Life
in Years

 

 

Weighted
Average
Exercise Price
(Per Share)

 

 

Options
Exercisable at
December 31, 2024
(In thousands)

 

 

Weighted
Average
Exercise
Price

 

$5.23 – $5.23

 

 

1,131

 

 

 

8.87

 

 

$

5.23

 

 

 

550

 

 

$

5.23

 

$5.24 – $8.58

 

 

431

 

 

 

1.85

 

 

$

7.86

 

 

 

431

 

 

$

7.86

 

$8.59 – $12.17

 

 

696

 

 

 

2.81

 

 

$

11.57

 

 

 

155

 

 

$

9.49

 

$12.18 – $15.33

 

 

378

 

 

 

1.23

 

 

$

15.33

 

 

 

329

 

 

$

15.33

 

$15.34 – $19.08

 

 

308

 

 

 

4.37

 

 

$

19.08

 

 

 

 

 

$

 

 

 

 

2,944

 

 

 

 

 

 

 

 

 

1,465

 

 

 

 

Summary of Weighted-Average Assumptions and Value of Options Granted

The weighted-average estimated fair value of stock options granted to employees during the years ended December 31, 2023 was $2.99 per share with the following weighted-average assumptions:

 

 

2023

 

Expected volatility

$

 

51.78

%

Risk-free interest rate

 

 

4.13

%

Expected dividend yield

 

 

 

Expected life (in years)

 

 

5.8

%

 

 

 

 

Market-Based PSUs [Member]  
Summary of Weighted-Average Assumptions and Value of Options Granted

The following table details the significant assumptions that impact the fair value estimate of the market-based PSUs:

 

 

 

2024

 

 

2023

 

 

2022

 

Estimated fair value per share

 

$

8.29

 

 

$

19.26

 

 

$

24.01

 

Expected volatility

 

 

51.34

%

 

 

51.52

%

 

 

45.77

%

Risk-free interest rate

 

 

4.12

%

 

 

3.93

%

 

 

4.28

%

Expected dividend yield

 

 

 

 

 

2.55

%

 

 

1.76

%

v3.25.1
Investments (Tables)
12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Gross Realized Gains and Losses on Sale of Debt Securities The following table presents gross realized gains and losses related to our debt securities for the years ended December 31, 2024, 2023 and 2022:

 

 

For the year ended December 31,

 

(In thousands)

 

2024

 

 

2023

 

 

2022

 

Gross realized gains on debt securities

 

$

 

 

$

9

 

 

$

17

 

Gross realized losses on debt securities

 

 

 

 

 

(355

)

 

 

(1,211

)

Total (loss) gain recognized, net

 

$

 

 

$

(346

)

 

$

(1,194

)

Realized and Unrealized Gains and Losses for Marketable Equity Securities

Realized and unrealized gains and losses for our marketable equity securities for the year ended December 31, 2024, 2023 and 2022 were as follows:

 

 

 

For the year ended December 31,

 

(In thousands)

 

2024

 

 

2023

 

 

2022

 

Realized gains (losses) on equity securities sold

 

$

277

 

 

$

17

 

 

$

(1,675

)

Unrealized gains (losses) on equity securities held

 

 

3,310

 

 

 

3,083

 

 

 

(8,470

)

Total gain (loss) recognized, net

 

$

3,587

 

 

$

3,100

 

 

$

(10,145

)

Cash Equivalents and Investments held at Fair Value

The Company’s cash equivalents and investments held at fair value are categorized into this hierarchy as follows:

 

 

 

Fair Value Measurements as of December 31, 2024 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices
in Active
Market for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant Unobservable Inputs
(Level 3)

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

5,538

 

 

$

5,538

 

 

$

 

 

$

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities - various industries

 

 

1,068

 

 

 

1,068

 

 

 

 

 

 

 

Deferred compensation plan assets

 

 

30,991

 

 

 

30,991

 

 

 

 

 

 

 

Total

 

$

37,597

 

 

$

37,597

 

 

$

 

 

$

 

 

 

 

Fair Value Measurements as of December 31, 2023 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices
in Active
Market for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant Unobservable Inputs
(Level 3)

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

5,302

 

 

$

5,302

 

 

$

 

 

$

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities - various industries

 

 

905

 

 

 

905

 

 

 

 

 

 

 

Deferred compensation plan assets

 

 

26,838

 

 

 

26,838

 

 

 

 

 

 

 

Total

 

$

33,045

 

 

$

33,045

 

 

$

 

 

$

 

v3.25.1
Inventory (Tables)
12 Months Ended
Dec. 31, 2024
Inventory Disclosure [Abstract]  
Components of Inventory

As of December 31, 2024 and 2023, inventory, net was comprised of the following:

 

(In thousands)

 

2024
(Restated)

 

 

2023
(Restated)

 

Raw materials

 

$

106,384

 

 

$

152,140

 

Work in process

 

 

9,724

 

 

 

17,239

 

Finished goods

 

 

145,449

 

 

 

191,045

 

Total Inventory, net

 

$

261,557

 

 

$

360,424

 

v3.25.1
Property, Plant and Equipment (Tables)
12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, Net

As of December 31, 2024 and 2023, property, plant and equipment, net was comprised of the following:

(In thousands)

 

2024
(Restated)

 

 

2023
(Restated)

 

Engineering and other equipment

 

$

184,694

 

 

$

183,336

 

Building

 

 

50,871

 

 

 

79,215

 

Computer hardware and software

 

 

113,241

 

 

 

96,327

 

Building and land improvements

 

 

39,979

 

 

 

58,238

 

Furniture and fixtures

 

 

20,994

 

 

 

21,368

 

Land

 

 

2,989

 

 

 

5,242

 

Total Property, Plant and Equipment

 

 

412,768

 

 

 

443,726

 

Less: accumulated depreciation

 

 

(306,314

)

 

 

(325,569

)

Total Property, Plant and Equipment, net

 

$

106,454

 

 

$

118,157

 

v3.25.1
Leases (Tables)
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of Supplemental Balance Sheet Information Related to Operating Leases Supplemental balance sheet information related to operating leases is as follows:

 

 

 

 

 

December 31,

 

 

December 31,

 

(In thousands)

 

Classification

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

 

 

Operating lease assets

 

Other non-current assets

 

$

30,342

 

 

$

37,474

 

Total lease asset

 

 

 

$

30,342

 

 

$

37,474

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Current operating lease liability

 

Accrued expenses and other liabilities

 

$

7,154

 

 

$

7,720

 

Non-current lease obligations

 

Non-current lease obligations

 

 

25,925

 

 

 

31,420

 

Total lease liability

 

 

 

$

33,079

 

 

$

39,140

 

Components of Lease Expense included in Consolidated Statements of Loss

The components of lease expense included in the Consolidated Statements of Loss were as follows:

 

 

 

For the Year Ended December 31,

 

(In thousands)

 

2024

 

 

2023

 

 

2022

 

Cost of revenue

 

$

150

 

 

$

163

 

 

$

110

 

Research and development expenses

 

 

412

 

 

 

990

 

 

 

942

 

Selling, general and administrative expenses

 

 

9,213

 

 

 

9,708

 

 

 

3,961

 

Total operating lease expense

 

$

9,775

 

 

$

10,861

 

 

$

5,013

 

Schedule of Maturity of Operating Lease Liabilities

As of December 31, 2024, operating lease liabilities included on the Consolidated Balance Sheet by future maturity were as follows:

 

(In thousands)

 

Amount

 

2025

 

 

8,829

 

2026

 

 

7,550

 

2027

 

 

6,498

 

2028

 

 

4,980

 

2029

 

 

2,925

 

Thereafter

 

 

10,281

 

Total lease payments

 

 

41,063

 

Less: Interest

 

 

(7,984

)

Present value of lease liabilities

 

$

33,079

 

Schedule of Weighted Average Remaining Lease Terms and Weighted Average Discount Rates The following table provides information about our weighted average lease terms and weighted average discount rates:

 

 

 

As of December 31,

 

Weighted average remaining lease term (years)

 

2024

 

 

2023

 

     Operating leases with USD functional currency

 

 

7.3

 

 

 

8.1

 

     Operating leases with EUR functional currency

 

 

5.9

 

 

 

5.8

 

Weighted average discount rate

 

 

 

 

 

 

     Operating leases with USD functional currency

 

 

3.64

%

 

 

3.70

%

     Operating leases with EUR functional currency

 

 

4.50

%

 

 

3.92

%

v3.25.1
Goodwill (Tables)
12 Months Ended
Dec. 31, 2024
Goodwill Disclosure [Abstract]  
Summary of Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the year ended December 31, 2024 and December 31, 2023 are as follows:

 

(In thousands)

 

Network Solutions
(Restated)

 

 

Services & Support

 

 

Total
(Restated)

 

As of December 31, 2022 (as previously reported)

 

$

298,280

 

 

$

83,444

 

 

$

381,724

 

Correction of goodwill from business combination with Adtran Networks

 

 

4,735

 

 

 

 

 

 

4,735

 

As of December 31, 2022 (restated)

 

$

303,015

 

 

$

83,444

 

 

$

386,459

 

Goodwill impairment

 

 

 

 

 

(37,500

)

 

 

(37,500

)

Correction of a purchase allocation adjustment

 

 

(9,662

)

 

 

9,662

 

 

 

 

Foreign currency translation adjustments

 

 

8,413

 

 

 

778

 

 

 

9,191

 

As of December 31, 2023 (restated)

 

$

301,766

 

 

$

56,384

 

 

$

358,150

 

Goodwill impairment

 

 

(295,298

)

 

 

 

 

 

(295,298

)

Foreign currency translation adjustments

 

 

(6,468

)

 

 

(3,466

)

 

 

(9,934

)

As of December 31, 2024 (restated)

 

$

 

 

$

52,918

 

 

$

52,918

 

v3.25.1
Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2024
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Summary of Intangible Assets

Intangible assets as of December 31, 2024 and 2023, consisted of the following:

 

 

 

 

2024

 

 

2023

 

(In thousands)

Weighted Average Useful Life
(in years)

 

 

Gross Value

 

 

Accumulated
Amortization

 

 

Net Value

 

 

Gross Value

 

 

Accumulated
Amortization

 

 

Net Value

 

Customer relationships

 

11.0

 

 

$

51,165

 

 

$

(18,778

)

 

$

32,387

 

 

$

54,856

 

 

$

(15,943

)

 

$

38,913

 

Backlog

 

1.7

 

 

 

53,839

 

 

 

(52,258

)

 

 

1,581

 

 

 

57,391

 

 

 

(52,022

)

 

 

5,369

 

Developed technology

 

7.9

 

 

 

346,923

 

 

 

(99,588

)

 

 

247,335

 

 

 

339,189

 

 

 

(61,653

)

 

 

277,536

 

Licensed technology

 

9.0

 

 

 

5,900

 

 

 

(4,452

)

 

 

1,448

 

 

 

5,900

 

 

 

(3,797

)

 

 

2,103

 

Licensing agreements

 

8.5

 

 

 

560

 

 

 

(407

)

 

 

153

 

 

 

560

 

 

 

(368

)

 

 

192

 

Patents

 

7.3

 

 

 

 

 

 

 

 

 

 

 

 

500

 

 

 

(500

)

 

 

 

Trade names

 

3.0

 

 

 

27,851

 

 

 

(25,862

)

 

 

1,989

 

 

 

29,689

 

 

 

(16,379

)

 

 

13,310

 

Total

 

 

 

$

486,238

 

 

$

(201,345

)

 

$

284,893

 

 

$

488,085

 

 

$

(150,662

)

 

$

337,423

 

 

Estimated Future Amortization Expense Related to Intangible Assets

As of December 31, 2024, estimated future amortization expense of intangible assets was as follows:

 

 

 

As of

 

(In thousands)

 

December 31, 2024

 

2025

 

$

56,268

 

2026

 

 

53,231

 

2027

 

 

47,585

 

2028

 

 

40,374

 

2029

 

 

40,028

 

Thereafter

 

 

47,407

 

     Total

 

$

284,893

 

v3.25.1
Hedging (Tables)
12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Values of Derivative Instruments

The fair values of the Company's derivative instruments recorded in the Consolidated Balance Sheet as of December 31, 2024 were as follows:

 

(In thousands)

 

Balance Sheet Location

 

December 31, 2024

 

 

December 31, 2023

 

Derivatives Not Designated as Hedging Instruments (Level 2):

 

 

 

 

 

 

 

 

Foreign exchange contracts – derivative assets

 

Other receivables

 

$

565

 

 

$

7,125

 

Foreign exchange contracts – derivative liabilities

 

Accounts payable

 

$

 

 

$

(2,277

)

Total derivatives

 

 

 

$

565

 

 

$

4,848

 

The change in the fair values of the Company's derivative instruments recorded in the Consolidated Statements of Loss during the years ended December 31, 2024, 2023 and 2022 were as follows:
 

(In thousands)

 

Income Statement
Location

 

2024

 

 

2023

 

 

2022

 

Derivatives Not Designated as Hedging Instruments:

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange contracts

 

Other income, net

 

$

2,197

 

 

$

758

 

 

$

10,793

 

v3.25.1
Credit Agreements (Tables)
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Carrying Amount of Revolving Agreement

The carrying amounts of the Company's revolving credit agreements in its Consolidated Balance Sheets were as follows:

 

 

 

As of December 31,

 

(In thousands)

 

2024

 

 

2023

 

Wells Fargo credit agreement

 

$

189,576

 

 

$

195,000

 

Total non-current revolving credit facility

 

$

189,576

 

 

$

195,000

 

v3.25.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Summary of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) for the years ended December 31, 2024, 2023 and 2022 are as follows:

(In thousands)

 

2024
(Restated)

 

 

2023
(Restated)

 

 

2022

 

Current

 

 

 

 

 

 

 

 

 

Federal

 

$

(1,456

)

 

$

2,545

 

 

$

4,572

 

State

 

 

575

 

 

 

26

 

 

 

88

 

International

 

 

2,645

 

 

 

10,004

 

 

 

(4,347

)

Total Current

 

 

1,764

 

 

 

12,575

 

 

 

313

 

 

 

 

 

 

 

 

 

 

 

Deferred

 

 

 

 

 

 

 

 

 

Federal

 

 

357

 

 

 

46,672

 

 

 

(47,429

)

State

 

 

(405

)

 

 

6,607

 

 

 

(6,776

)

International

 

 

5,624

 

 

 

(37,555

)

 

 

(8,183

)

Total Deferred

 

 

5,576

 

 

 

15,724

 

 

 

(62,388

)

Total Income Tax Expense (Benefit)

 

$

7,340

 

 

$

28,299

 

 

$

(62,075

)

 

Effective Income Tax Rate Differs from Federal Statutory Rate

The effective income tax rate differs from the federal statutory rate due to the following:

 

 

2024
(Restated)

 

 

2023
(Restated)

 

 

2022

 

Tax provision computed at the federal statutory rate

 

 

21.00

%

 

 

21.00

%

 

 

21.00

%

State income tax provision, net of federal benefit

 

 

0.06

 

 

 

1.33

 

 

 

2.60

 

Federal research credits

 

 

0.66

 

 

 

3.23

 

 

 

6.74

 

Foreign taxes

 

 

(0.02

)

 

 

3.20

 

 

 

6.29

 

Tax-exempt income

 

 

0.04

 

 

 

0.06

 

 

 

0.21

 

Change in valuation allowance

 

 

(6.48

)

 

 

(34.83

)

 

 

63.92

 

Non-deductible transaction costs

 

 

 

 

 

 

 

 

(2.74

)

Foreign tax credits

 

 

0.84

 

 

 

2.42

 

 

 

(0.40

)

Stock-based compensation

 

 

(0.39

)

 

 

(0.56

)

 

 

(2.09

)

Withholding taxes

 

 

(0.08

)

 

 

0.01

 

 

 

0.03

 

Adtran Networks tax exempt income

 

 

 

 

 

1.41

 

 

 

 

Return to accrual

 

 

0.59

 

 

 

0.61

 

 

 

0.24

 

Global intangible low-taxed income ("GILTI")

 

 

(3.07

)

 

 

(5.81

)

 

 

(8.08

)

Adtran Networks Goodwill Impairment

 

 

(13.84

)

 

 

(4.57

)

 

 

 

Other, net

 

 

(0.97

)

 

 

0.40

 

 

 

(0.24

)

Effective Tax Rate

 

 

(1.66

)%

 

 

(12.10

)%

 

 

87.48

%

 

Loss Before Expense (Benefit) for Income Taxes

Loss before expense (benefit) for income taxes for the years ended December 31, 2024, 2023 and 2022 is as follows:

(In thousands)

 

2024
(Restated)

 

 

2023
(Restated)

 

 

2022

 

U.S. entities

 

$

(71,684

)

 

$

(113,951

)

 

$

(33,720

)

International entities

 

 

(371,043

)

 

 

(119,656

)

 

 

(37,243

)

Total

 

$

(442,727

)

 

$

(233,607

)

 

$

(70,963

)

Summary of Supplemental Balance Sheet Information Related to Deferred Tax Assets (Liabilities)

Deferred income taxes on the Consolidated Balance Sheets result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The significant components of current and non-current deferred taxes as of December 31, 2024 and 2023 consist of the following:

(In thousands)

 

2024
(Restated)

 

 

2023
(Restated)

 

Deferred tax assets:

 

 

 

 

 

 

Inventory

 

$

14,121

 

 

$

19,623

 

Accrued expenses

 

 

845

 

 

 

3,533

 

Deferred compensation

 

 

7,093

 

 

 

6,284

 

Stock-based compensation

 

 

1,770

 

 

 

2,023

 

Uncertain tax positions related to state taxes and related interest

 

 

105

 

 

 

105

 

Goodwill

 

 

3,001

 

 

 

3,496

 

Pensions

 

 

5,121

 

 

 

8,607

 

Foreign losses

 

 

73,162

 

 

 

3,225

 

State losses and credit carry-forwards

 

 

4,901

 

 

 

4,259

 

Federal loss and research carry-forwards

 

 

20,874

 

 

 

78,450

 

Lease liabilities

 

 

6,153

 

 

 

7,701

 

Capitalized research and development expenditures

 

 

43,574

 

 

 

48,192

 

Interest expense limitation

 

 

6,815

 

 

 

 

Valuation allowance

 

 

(115,694

)

 

 

(86,567

)

Total Deferred Tax Assets

 

 

71,841

 

 

 

98,931

 

 

 

 

 

 

 

 

Deferred tax liabilities:

 

 

 

 

 

 

Property, plant and equipment

 

 

(8,368

)

 

 

(9,093

)

Intellectual property

 

 

(67,923

)

 

 

(86,572

)

Right of use lease assets

 

 

(6,175

)

 

 

(8,424

)

Investments

 

 

(1,921

)

 

 

(1,114

)

Total Deferred Tax Liabilities

 

 

(84,387

)

 

 

(105,203

)

Net Deferred Tax Liabilities

 

$

(12,546

)

 

$

(6,272

)

Supplemental balance sheet information related to deferred tax assets (liabilities) as of December 31, 2024 and 2023 were as follows:

 

 

 

December 31, 2024
(Restated)

 

(In thousands)

 

Deferred Tax Assets (Liabilities)

 

 

Valuation Allowance

 

 

Deferred Tax Assets (Liabilities), net

 

Domestic

 

$

102,002

 

 

$

(87,030

)

 

$

14,972

 

International

 

 

1,146

 

 

 

(28,664

)

 

 

(27,518

)

Total

 

$

103,148

 

 

$

(115,694

)

 

$

(12,546

)

 

 

 

December 31, 2023
(Restated)

 

(In thousands)

 

Deferred Tax Assets (Liabilities)

 

 

Valuation Allowance

 

 

Deferred Tax Assets (Liabilities), net

 

Domestic

 

$

100,700

 

 

$

(84,767

)

 

$

15,933

 

International

 

 

(20,405

)

 

 

(1,800

)

 

 

(22,205

)

Total

 

$

80,295

 

 

$

(86,567

)

 

$

(6,272

)

Change in Unrecognized Income Tax Benefits

The change in the unrecognized income tax benefits for the years ended December 31, 2024, 2023 and 2022 were as follows:

(In thousands)

 

2024

 

 

2023

 

 

2022

 

Balance at beginning of period

 

$

989

 

 

$

17,885

 

 

$

17,836

 

Increases for tax position related to:

 

 

 

 

 

 

 

 

 

Prior years

 

 

 

 

 

 

 

 

 

Current year

 

 

 

 

 

129

 

 

 

123

 

Decreases for tax positions related to:

 

 

 

 

 

 

 

 

 

Prior years

 

 

(121

)

 

 

(17,025

)

 

 

(13

)

Expiration of applicable statute of limitations

 

 

(616

)

 

 

 

 

 

(61

)

Balance at end of period

 

$

252

 

 

$

989

 

 

$

17,885

 

v3.25.1
Employee Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Schedule of Pension Benefit Plan Obligations and Funded Status

The pension benefit plan obligations and funded status as of December 31, 2024 and 2023, were as follows:

(In thousands)

 

2024

 

 

2023

 

 

Change in projected benefit obligation:

 

 

 

 

 

 

 

Projected benefit obligation at beginning of period

 

$

67,897

 

 

$

59,344

 

 

Service cost

 

 

1,664

 

 

 

1,579

 

 

Interest cost

 

 

1,902

 

 

 

1,851

 

 

Actuarial (gain) loss - experience

 

 

(238

)

 

 

1,181

 

 

Actuarial loss - assumptions

 

 

860

 

 

 

1,791

 

 

Benefit payments

 

 

(4,108

)

 

 

(1,966

)

 

Plan amendments

 

 

(874

)

 

 

966

 

 

Participant contributions

 

 

429

 

 

 

 

 

Effects of foreign currency exchange rate changes

 

 

(4,273

)

 

 

3,151

 

 

Projected benefit obligation at end of period

 

 

63,259

 

 

 

67,897

 

 

Change in plan assets:

 

 

 

 

 

 

 

Fair value of plan assets at beginning of period

 

 

55,218

 

 

 

48,720

 

 

Actual gain on plan assets

 

 

3,966

 

 

 

3,125

 

 

Contributions

 

 

1,288

 

 

 

1,215

 

 

Benefit payments

 

 

(2,244

)

 

 

(231

)

 

Effects of foreign currency exchange rate changes

 

 

(3,738

)

 

 

2,389

 

 

Fair value of plan assets at end of period

 

 

54,490

 

 

 

55,218

 

 

Unfunded status at end of period

 

$

(8,769

)

 

$

(12,679

)

 

Summary of Net Amounts Recognized in Consolidated Balance Sheets for the Unfunded Pension Liability

The net amounts recognized in the Consolidated Balance Sheets for the unfunded pension liability as of December 31, 2024 and 2023 were as follows:

(In thousands)

 

Balance Sheet Location

 

2024

 

 

2023

 

Non-current pension asset

 

Other non-current assets

 

$

517

 

 

$

 

Current pension liability

 

Accrued wages and benefits

 

 

(303

)

 

 

(136

)

Non-current pension liability

 

Non-current pension liability

 

 

(8,983

)

 

 

(12,543

)

Total

 

 

 

$

(8,769

)

 

$

(12,679

)

Components of Net Periodic Pension Cost and Amounts Recognized Other Comprehensive (Loss) Income

The components of net periodic pension cost, other than the service cost component, are included in other income, net in the Consolidated Statements of Loss. The components of net periodic pension cost and amounts recognized in other comprehensive (loss) income for the years ended December 31, 2024, 2023 and 2022 were as follows:

(In thousands)

 

2024

 

 

2023

 

 

2022

 

Net periodic benefit cost:

 

 

 

 

 

 

 

 

 

Service cost

 

$

1,664

 

 

$

1,579

 

 

$

1,426

 

Interest cost

 

 

1,902

 

 

 

1,851

 

 

 

1,168

 

Expected return on plan assets

 

 

(2,529

)

 

 

(1,750

)

 

 

(2,129

)

Amortization of actuarial losses

 

 

28

 

 

 

26

 

 

 

355

 

Net periodic benefit cost

 

 

1,065

 

 

 

1,706

 

 

 

820

 

Other changes in plan assets and benefit obligations
   recognized in other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

Net actuarial (gain) loss

 

 

(1,640

)

 

 

2,304

 

 

 

(6,549

)

Amortization of actuarial gains (losses)

 

 

233

 

 

 

(145

)

 

 

(113

)

Amount recognized in other comprehensive (income) loss

 

 

(1,407

)

 

 

2,159

 

 

 

(6,662

)

Total recognized in net periodic benefit cost and other
   comprehensive (income) loss

 

$

(342

)

 

$

3,865

 

 

$

(5,842

)

 

Accumulated Other Comprehensive (Loss) Income

The amounts recognized in accumulated other comprehensive loss as of December 31, 2024 and 2023 were as follows:

(In thousands)

 

2024

 

 

2023

 

Net actuarial loss

 

$

(1,824

)

 

$

(3,231

)

Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost

The weighted-average assumptions that were used to determine the net periodic benefit cost for the years ended December 31, 2024, 2023 and 2022 were as follows:

 

 

2024

 

 

2023

 

 

2022

 

Discount rate

 

 

2.84

%

 

 

3.17

%

 

 

3.24

%

Rate of compensation increase

 

 

1.54

%

 

 

2.22

%

 

 

2.17

%

Expected long-term rates of return

 

 

4.85

%

 

 

4.83

%

 

 

4.65

%

Weighted-Average Assumptions Used to Determine Benefit Obligation

The weighted-average assumptions that were used to determine the benefit obligation as of December 31, 2024 and 2023:

 

 

2024

 

 

2023

 

 

Discount rate

 

 

2.73

%

 

 

2.84

%

 

Rate of compensation increase

 

 

1.54

%

 

 

2.22

%

 

Schedule of Pension Benefit Payments Expected Future Service

The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid to participants:

 

(In thousands)

 

 

 

2025

 

$

3,032

 

2026

 

 

3,214

 

2027

 

 

3,906

 

2028

 

 

3,346

 

2029

 

 

4,352

 

2030 - 2034

 

 

18,834

 

Total

 

$

36,684

 

Schedule of Cash Equivalents and Investments Held at Fair Value

We have categorized our cash equivalents and our investments held at fair value into this hierarchy as follows:

 

 

Fair Value Measurements at December 31, 2024 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Cash and cash equivalents

 

$

753

 

 

$

753

 

 

$

 

 

$

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

Bond funds

 

 

18,058

 

 

 

16,867

 

 

 

1,191

 

 

 

 

Equity funds

 

 

21,376

 

 

 

21,183

 

 

 

193

 

 

 

 

Other funds

 

 

7,406

 

 

 

6,089

 

 

 

1,317

 

 

 

 

Real estate funds

 

 

6,897

 

 

 

1,737

 

 

 

2,106

 

 

 

3,054

 

Available-for-sale securities

 

 

53,737

 

 

 

45,876

 

 

 

4,807

 

 

 

3,054

 

Total

 

$

54,490

 

 

$

46,629

 

 

$

4,807

 

 

$

3,054

 

 

 

 

Fair Value Measurements at December 31, 2023 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Cash and cash equivalents

 

$

987

 

 

$

987

 

 

$

 

 

$

 

Available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

Bond funds

 

 

20,155

 

 

 

18,840

 

 

 

1,315

 

 

 

-

 

Equity funds

 

 

21,525

 

 

 

21,288

 

 

 

237

 

 

 

 

Other funds

 

 

6,054

 

 

 

5,343

 

 

 

711

 

 

 

 

Insurance contracts

 

 

353

 

 

 

 

 

 

353

 

 

 

 

Real estate funds

 

 

6,144

 

 

 

546

 

 

 

2,326

 

 

 

3,272

 

Available-for-sale securities

 

 

54,231

 

 

 

46,017

 

 

 

4,942

 

 

 

3,272

 

Total

 

$

55,218

 

 

$

47,004

 

 

$

4,942

 

 

$

3,272

 

Fair Value of Assets Held by Trust and Amounts Payable to Plan Participants The fair value of the assets held by the Trust and the amounts payable to the plan participants as of December 31, 2024 and 2023 were as follows:

(In thousands)

 

2024

 

 

2023

 

Fair Value of Plan Assets

 

 

 

 

 

 

Long-term investments

 

$

30,991

 

 

$

26,838

 

Total Fair Value of Plan Assets

 

$

30,991

 

 

$

26,838

 

Amounts Payable to Plan Participants

 

 

 

 

 

 

Deferred compensation liability

 

$

33,203

 

 

$

29,039

 

Total Amounts Payable to Plan Participants

 

$

33,203

 

 

$

29,039

 

 

v3.25.1
Equity (Tables)
12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax by Components of Accumulated Other Comprehensive Income (Loss)

The following table presents changes in accumulated other comprehensive income (loss), net of tax, by components of accumulated other comprehensive income (loss) for the years ended December 31, 2024, 2023 and 2022:

 

(In thousands)

 

Unrealized
Gains (Losses)
on Available-
for-Sale
Securities

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency
Adjustments

 

 

ASU 2018-02 Adoption (1)

 

 

Total

 

Balance as of December 31, 2022

 

 

(836

)

 

 

(1,016

)

 

 

27,593

 

 

 

385

 

 

 

26,126

 

Other comprehensive (loss) income before reclassifications

 

 

734

 

 

 

(1,590

)

 

 

22,822

 

 

 

 

 

 

21,966

 

Amounts reclassified from accumulated other comprehensive (loss) income

 

 

(280

)

 

 

100

 

 

 

 

 

 

 

 

 

(180

)

Net current period other comprehensive income (loss)

 

 

454

 

 

 

(1,490

)

 

 

22,822

 

 

 

 

 

 

21,786

 

Less: Other comprehensive income attributable to non-controlling interest, net of tax

 

 

 

 

 

 

 

 

382

 

 

 

 

 

 

382

 

Balance as of December 31, 2023 (Restated)

 

 

(382

)

 

 

(2,506

)

 

 

50,033

 

 

 

385

 

 

 

47,530

 

Other comprehensive (loss) income before reclassifications

 

 

(160

)

 

 

1,640

 

 

 

(37,755

)

 

 

 

 

 

(36,275

)

Amounts reclassified from accumulated other comprehensive income (loss)

 

 

160

 

 

 

(161

)

 

 

 

 

 

 

 

 

(1

)

Net current period other comprehensive income (loss)

 

 

 

 

 

1,479

 

 

 

(37,755

)

 

 

 

 

 

(36,276

)

Balance as of December 31, 2024 (Restated)

 

$

(382

)

 

$

(1,027

)

 

$

12,278

 

 

$

385

 

 

$

11,254

 

(1)
With the adoption of ASU 2018-02 on January 1, 2019, stranded tax effects related to the Tax Cuts and Jobs Act of 2017 were reclassified to retained earnings.
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

The following tables present the details of reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2024, 2023 and 2022:

 

(In thousands)

 

For the year ended December 31,

 

 

 

Details about Accumulated Other Comprehensive (Loss)
Income Components

 

2024

 

 

2023

 

 

2022

 

 

Affected Line Item in the
Statement Where Net Loss Is Presented

Unrealized gains (loss) on available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on sales of securities

 

$

216

 

 

$

(378

)

 

$

(328

)

 

Net investment gain

Defined benefit plan adjustments – actuarial (loss) gain

 

 

(233

)

 

 

145

 

 

 

113

 

 

(1)

Total reclassifications for the period, before tax

 

 

(17

)

 

 

(233

)

 

 

(215

)

 

 

Tax expense

 

 

16

 

 

 

53

 

 

 

50

 

 

 

Total reclassifications for the period, net of tax

 

$

(1

)

 

$

(180

)

 

$

(165

)

 

 

 

(1)
Included in the computation of net periodic pension cost. See Note 13 for additional information.
Tax Effects Related to the Change in Each Component of Other Comprehensive Income (Loss)

The following tables present the tax effects related to the change in each component of other comprehensive income (loss) for the years ended December 31, 2024, 2023 and 2022:

 

 

 

2024
(Restated)

 

(In thousands)

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

Unrealized (losses) gains on available-for-sale securities

 

$

(216

)

 

$

56

 

 

$

(160

)

Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss)

 

 

216

 

 

 

(56

)

 

 

160

 

Defined benefit plan adjustments

 

 

1,640

 

 

 

 

 

 

1,640

 

Reclassification adjustment for amounts related to defined benefit plan adjustments included in net (loss) income

 

 

(233

)

 

 

72

 

 

 

(161

)

Foreign currency translation adjustment

 

 

(37,755

)

 

 

 

 

 

(37,755

)

Total Other Comprehensive Loss

 

$

(36,348

)

 

$

72

 

 

$

(36,276

)

 

 

 

2023
(Restated)

 

(In thousands)

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

Unrealized gains (losses) on available-for-sale securities

 

$

992

 

 

$

(258

)

 

$

734

 

Reclassification adjustment for amounts related to available-for-sale investments included in net (loss) income

 

 

(378

)

 

 

98

 

 

 

(280

)

Defined benefit plan adjustments

 

 

(2,304

)

 

 

714

 

 

 

(1,590

)

Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss)

 

 

145

 

 

 

(45

)

 

 

100

 

Foreign currency translation adjustment

 

 

22,822

 

 

 

 

 

 

22,822

 

Total Other Comprehensive Income

 

$

21,277

 

 

$

509

 

 

$

21,786

 

 

 

 

2022

 

(In thousands)

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

Unrealized (losses) gains on available-for-sale securities

 

$

(55

)

 

$

14

 

 

$

(41

)

Reclassification adjustment for amounts related to available-for-sale investments included in net (loss) income

 

 

(328

)

 

 

85

 

 

 

(243

)

Defined benefit plan adjustments

 

 

6,549

 

 

 

(2,030

)

 

 

4,519

 

Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss)

 

 

113

 

 

 

(35

)

 

 

78

 

Foreign currency translation adjustment

 

 

53,396

 

 

 

 

 

 

53,396

 

Total Other Comprehensive Income (Loss)

 

$

59,675

 

 

$

(1,966

)

 

$

57,709

 

 

v3.25.1
Redeemable Non-controlling Interest (Tables)
12 Months Ended
Dec. 31, 2024
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract]  
Summary of Redeemable Non-controlling Interest Activity

The following table summarizes the redeemable non-controlling interest activity for the year ended December 31, 2024 and 2023:

 

 

 

For the year ended December 31,

 

 

(In thousands)

 

2024

 

 

2023
(Restated)

 

 

Balance at beginning of period

 

$

443,327

 

 

$

 

 

Reclassification of non-controlling interests

 

 

 

 

 

443,757

 

 

Non-controlling interests in Adtran Holdings related to stock options exercised

 

 

 

 

 

1,175

 

 

Redemption of redeemable non-controlling interests

 

 

(20,384

)

 

 

(1,657

)

 

Net income attributable to redeemable non-controlling interests

 

 

9,824

 

 

 

10,092

 

 (1)

Annual recurring compensation earned

 

 

(9,824

)

 

 

(10,092

)

 (1)

Adtran Networks stock option exercises

 

 

 

 

 

52

 

 

Balance at end of period

 

$

422,943

 

 

$

443,327

 

 (1)

(1) During the third quarter of 2024, the Company identified errors primarily impacting the carrying values of the redeemable non-controlling interest, retained deficit, the net income attributable to the non-controlling interest and the net loss attributable to the Company and, as a consequence, of the loss per common share attributable to the Company. We have restated issued Consolidated Financial Statements for the year ended December 31, 2023. See Note 1 for additional information.

v3.25.1
Segment Information and Major Customers (Tables)
12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Revenue and Gross Profit of Reportable Segments

The following table presents information about revenue and gross profit of our reportable segments for each of the years ended December 31, 2024, 2023 and 2022:

 

 

 

2024

 

 

2023

 

 

2022

 

(In thousands)

 

Revenue

 

 

Cost of Revenue
(Restated)

 

 

Gross Profit
(Restated)

 

 

Revenue

 

 

Cost of Revenue
(Restated)

 

 

Gross Profit
(Restated)

 

 

Revenue

 

 

Cost of Revenue

 

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

$

738,964

 

 

$

525,817

 

 

$

213,147

 

 

$

974,389

 

 

$

748,831

 

 

$

225,558

 

 

$

916,793

 

 

$

647,105

 

 

$

269,688

 

Services & Support

 

 

183,756

 

 

 

72,739

 

 

 

111,017

 

 

 

174,711

 

 

 

69,142

 

 

 

105,569

 

 

 

108,743

 

 

 

51,179

 

 

 

57,564

 

Total

 

$

922,720

 

 

$

598,556

 

 

$

324,164

 

 

$

1,149,100

 

 

$

817,973

 

 

$

331,127

 

 

$

1,025,536

 

 

$

698,284

 

 

$

327,252

 

Disaggregate of Revenue by Reportable Segment and Revenue Category

The following tables disaggregate our revenue by category for the years ended December 31, 2024, 2023 and 2022:

 

 

2024

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Subscriber Solutions

 

$

295,541

 

 

$

35,237

 

 

$

330,778

 

Access & Aggregation Solutions

 

 

232,934

 

 

 

58,072

 

 

 

291,006

 

Optical Networking Solutions

 

 

210,489

 

 

 

90,447

 

 

 

300,936

 

Total

 

$

738,964

 

 

$

183,756

 

 

$

922,720

 

 

 

 

2023

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

263,192

 

 

$

34,516

 

 

$

297,708

 

Access & Aggregation Solutions

 

 

304,074

 

 

 

54,344

 

 

 

358,418

 

Optical Networking Solutions

 

 

407,123

 

 

 

85,851

 

 

 

492,974

 

Total

 

$

974,389

 

 

$

174,711

 

 

$

1,149,100

 

 

 

 

2022

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

364,238

 

 

$

26,216

 

 

$

390,454

 

Access & Aggregation Solutions

 

 

326,934

 

 

 

47,068

 

 

 

374,002

 

Optical Networking Solutions

 

 

225,621

 

 

 

35,459

 

 

 

261,080

 

Total

 

$

916,793

 

 

$

108,743

 

 

$

1,025,536

 

Revenue Information by Geographic Area

The following table presents revenue information by geographic area for the years ended December 31, 2024, 2023 and 2022:

(In thousands)

 

2024

 

 

2023

 

 

2022

 

United States

 

$

398,170

 

 

$

460,985

 

 

$

517,433

 

United Kingdom

 

 

196,064

 

 

 

214,655

 

 

 

189,685

 

Germany

 

 

119,976

 

 

 

230,922

 

 

 

146,797

 

Other international

 

 

208,510

 

 

 

242,538

 

 

 

171,621

 

Total

 

$

922,720

 

 

$

1,149,100

 

 

$

1,025,536

 

v3.25.1
Liability for Warranty Returns (Tables)
12 Months Ended
Dec. 31, 2024
Product Warranties Disclosures [Abstract]  
Summary of Warranty Expense and Write-Off Activity

A summary of warranty expense and write-off activity for the years ended December 31, 2024, 2023 and 2022 is as follows:

 

 

 

Year Ended December 31,

 

(In thousands)

 

2024

 

 

2023

 

 

2022

 

Balance at beginning of period

 

$

6,445

 

 

$

7,196

 

 

$

5,403

 

Plus: Adtran Networks acquisition

 

 

 

 

 

 

 

 

3,756

 

Plus: Amounts charged to cost and expenses

 

 

1,772

 

 

 

2,952

 

 

 

3,104

 

Plus: Foreign currency translation adjustments

 

 

(119

)

 

 

82

 

 

 

334

 

Less: Deductions

 

 

(3,586

)

 

 

(3,784

)

 

 

(5,401

)

Balance at end of period

 

$

4,512

 

 

$

6,445

 

 

$

7,196

 

v3.25.1
Loss per Share (Tables)
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Summary of Calculations of Basic and Diluted Loss Per Share

The calculations of basic and diluted loss per share for the years ended December 31, 2024, 2023 and 2022 are as follows:

(In thousands, except for per share amounts)

 

2024
(Restated)

 

 

2023
(Restated)

 

 

2022

 

Numerator

 

 

 

 

 

 

 

 

 

Net loss attributable to ADTRAN Holdings, Inc.

 

$

(459,891

)

 

$

(268,852

)

 

$

(2,037

)

Effect of redemption of RNCI

 

 

2,981

 

 

 

 

 

 

 

Net loss attributable to ADTRAN Holdings, Inc. common stockholders

 

$

(456,910

)

 

$

(268,852

)

 

$

(2,037

)

Denominator

 

 

 

 

 

 

 

 

 

Weighted average number of shares – basic

 

 

78,928

 

 

 

78,416

 

 

 

62,346

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Stock options

 

 

 

 

 

 

 

 

 

PSUs, RSUs and restricted stock

 

 

 

 

 

 

 

 

 

Weighted average number of shares – diluted

 

 

78,928

 

 

 

78,416

 

 

 

62,346

 

Loss per share attributable to ADTRAN Holdings, Inc. – basic

 

$

(5.79

)

 

$

(3.43

)

 

$

(0.03

)

Loss per share attributable to ADTRAN Holdings, Inc. – diluted

 

$

(5.79

)

 

$

(3.43

)

 

$

(0.03

)

 

v3.25.1
Restructuring (Tables)
12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Schedule of Reconciliation of Restructuring Liability

A reconciliation of the beginning and ending restructuring liability, which is included in accrued wages and benefits and accrued expenses and other liabilities in the Consolidated Balance Sheets as of December 31, 2024 and 2023, is as follows:

 

(In thousands)

 

2024

 

 

2023

 

Balance at beginning of period

 

$

8,309

 

 

$

159

 

Plus: Amounts charged to cost and expense

 

 

40,545

 

 

 

22,241

 

Less: Amounts paid

 

 

(38,518

)

 

 

(14,091

)

Balance at end of period

 

$

10,336

 

 

$

8,309

 

Schedule of Components of Restructuring Expenses

Restructuring expenses include d in the Consolidated Statements of Loss are for the years ended December 31, 2024, 2023 and 2022:

 

(In thousands)

 

2024

 

 

2023

 

 

2022

 

     Network solutions - cost of revenue

 

$

3,693

 

 

$

2,910

 

 

$

8

 

     Network solutions - inventory write-down

 

 

8,597

 

 

 

24,313

 

 

 

 

     Services & support - cost of revenue

 

 

2,289

 

 

 

 

 

 

 

Cost of revenue

 

$

14,579

 

 

$

27,223

 

 

$

8

 

Selling, general and administrative expenses

 

 

9,128

 

 

 

11,603

 

 

 

117

 

Research and development expenses

 

 

20,973

 

 

 

7,728

 

 

 

1,504

 

Total restructuring expenses

 

$

44,680

 

 

$

46,554

 

 

$

1,629

 

 

The following table represents the components of restructuring expense by geographic area for the years ended December 31, 2024, 2023 and 2022:

 

(In thousands)

 

2024

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

18,422

 

 

$

34,629

 

 

$

2

 

International

 

 

26,258

 

 

 

11,925

 

 

 

1,627

 

Total restructuring expenses

 

$

44,680

 

 

$

46,554

 

 

$

1,629

 

v3.25.1
Restatement of Quarterly Financial Information (Unaudited) (Tables)
12 Months Ended
Dec. 31, 2024
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Restatement of Quarterly Financial Information

The following tables reflect the impact of the restatements to the specific line items presented in the Company’s previously reported Condensed Consolidated Statement of Loss and the Condensed Consolidated Statement of Comprehensive Loss for the three months ended March 31, 2024, the three and six months ended June 30, 2024, the three and nine months ended September 30, 2024 and the three months ended December 31, 2024. The Company will restate its previously reported 2024 quarterly financial information based on the summary tables presented below in its future filings with the SEC, as applicable. As discussed in the 2024 Form 10-K, we had revised and planned to revise certain of our previously issued consolidated financial statements. As the condensed consolidated financial statements effectuating the revision for the March 31, 2024 and June 30, 2024 quarterly periods have not yet been reissued as of the date of filing this Form 10-K/A, the revision errors impacting these periods have been subsumed into the restatement of those condensed consolidated financial statements noted below. The impacts of the restatements on 2023 quarters to net loss were $0.5 million, $0.0 million, $0.1 million and $1.8 million for the first, second, third and fourth quarters, respectively.

 

 

 

Three Months Ended March 31, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

 

$

181,273

 

 

$

 

 

$

181,273

 

Services & Support

 

 

 

44,900

 

 

 

 

 

 

44,900

 

Total Revenue

 

 

 

226,173

 

 

 

 

 

 

226,173

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

ADJ 3

 

 

126,326

 

 

 

1,940

 

 

 

128,266

 

Network Solutions - inventory write-down and other charges

 

 

 

8,782

 

 

 

 

 

 

8,782

 

Services & Support

 

 

 

18,810

 

 

 

 

 

 

18,810

 

Total Cost of Revenue

 

 

 

153,918

 

 

 

1,940

 

 

 

155,858

 

Gross Profit

 

 

 

72,255

 

 

 

(1,940

)

 

 

70,315

 

Selling, general and administrative expenses

 

 

 

59,100

 

 

 

(109

)

 

 

58,991

 

Research and development expenses

 

 

 

60,251

 

 

 

(36

)

 

 

60,215

 

Goodwill impairment

ADJ 4

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Operating Loss

 

 

 

(339,679

)

 

 

(6,565

)

 

 

(346,244

)

Interest and dividend income

 

 

 

397

 

 

 

 

 

 

397

 

Interest expense

 

 

 

(4,598

)

 

 

 

 

 

(4,598

)

Net investment gain

 

 

 

2,253

 

 

 

 

 

 

2,253

 

Other income (expense), net

 

 

 

1,310

 

 

 

 

 

 

1,310

 

Loss Before Income Taxes

 

 

 

(340,317

)

 

 

(6,565

)

 

 

(346,882

)

Income tax benefit

 

 

 

18,647

 

 

 

 

 

 

18,647

 

Net Loss

 

 

$

(321,670

)

 

$

(6,565

)

 

$

(328,235

)

Less: Net Income (Loss) attributable to non-controlling interest(1)

ADJ 1

 

 

2,880

 

 

 

(350

)

 

 

2,530

 

Net Loss attributable to ADTRAN Holdings, Inc.

 

 

$

(324,550

)

 

$

(6,215

)

 

$

(330,765

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

 

78,814

 

 

 

78,814

 

 

 

78,814

 

Weighted average shares outstanding – diluted

 

 

 

78,814

 

 

 

78,814

 

 

 

78,814

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share attributable to ADTRAN Holdings, Inc. – basic

 

 

$

(4.12

)

 

$

(0.08

)

 

$

(4.20

)

Loss per common share attributable to ADTRAN Holdings, Inc. – diluted

 

 

$

(4.12

)

 

$

(0.08

)

 

$

(4.20

)

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(321,670

)

 

$

(6,565

)

 

$

(328,235

)

Other Comprehensive (Loss) Income, net of tax

 

 

 

 

 

 

 

 

 

 

Net unrealized gain on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

Defined benefit plan adjustments

 

 

 

(60

)

 

 

 

 

 

(60

)

Foreign currency translation (loss) gain

ADJ 1, 3

 

 

(17,745

)

 

 

(28

)

 

 

(17,773

)

Other Comprehensive (Loss) Income, net of tax

 

 

 

(17,805

)

 

 

(28

)

 

 

(17,833

)

Comprehensive Loss, net of tax

 

 

 

(339,475

)

 

 

(6,593

)

 

 

(346,068

)

Less: Comprehensive Income attributable to non-controlling interest, net of tax

ADJ 1

 

 

2,880

 

 

 

(349

)

 

 

2,531

 

Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax

 

 

$

(342,355

)

 

$

(6,244

)

 

$

(348,599

)

(1) For the three months ended March 31, 2024, we recognized $2.5 million of net gain attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA.

 

 

 

 

 

 

Three Months Ended June 30, 2024

 

 

Six Months Ended June 30, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

 

$

179,194

 

 

$

 

 

$

179,194

 

 

$

360,467

 

 

$

 

 

$

360,467

 

Services & Support

 

 

 

46,797

 

 

 

 

 

 

46,797

 

 

 

91,697

 

 

 

 

 

 

91,697

 

Total Revenue

 

 

 

225,991

 

 

 

 

 

 

225,991

 

 

 

452,164

 

 

 

 

 

 

452,164

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Network Solutions

ADJ 3

 

 

124,457

 

 

 

316

 

 

 

124,773

 

 

 

250,783

 

 

 

2,256

 

 

 

253,039

 

Network Solutions - Inventory Write Down

 

 

 

143

 

 

 

 

 

 

143

 

 

 

8,925

 

 

 

 

 

 

8,925

 

Services & Support

 

 

 

19,816

 

 

 

 

 

 

19,816

 

 

 

38,626

 

 

 

 

 

 

38,626

 

Total Cost of Revenue

 

 

 

144,416

 

 

 

316

 

 

 

144,732

 

 

 

298,334

 

 

 

2,256

 

 

 

300,590

 

Gross Profit

 

 

 

81,575

 

 

 

(316

)

 

 

81,259

 

 

 

153,830

 

 

 

(2,256

)

 

 

151,574

 

Selling, general and administrative expenses

 

 

 

59,493

 

 

 

(129

)

 

 

59,364

 

 

 

118,593

 

 

 

(238

)

 

 

118,355

 

Research and development expenses

 

 

 

60,388

 

 

 

(36

)

 

 

60,352

 

 

 

120,639

 

 

 

(72

)

 

 

120,567

 

Goodwill impairment

 

 

 

 

 

 

 

 

 

 

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Operating Loss

 

 

 

(38,306

)

 

 

(151

)

 

 

(38,457

)

 

 

(377,985

)

 

 

(6,716

)

 

 

(384,701

)

Interest and dividend income

 

 

 

366

 

 

 

 

 

 

366

 

 

 

763

 

 

 

 

 

 

763

 

Interest expense

 

 

 

(6,906

)

 

 

 

 

 

(6,906

)

 

 

(11,504

)

 

 

 

 

 

(11,504

)

Net investment gain (loss)

 

 

 

872

 

 

 

 

 

 

872

 

 

 

3,125

 

 

 

 

 

 

3,125

 

Other income (expense), net

 

 

 

(901

)

 

 

 

 

 

(901

)

 

 

409

 

 

 

 

 

 

409

 

Loss Before Income Taxes

 

 

 

(44,875

)

 

 

(151

)

 

 

(45,026

)

 

 

(385,192

)

 

 

(6,716

)

 

 

(391,908

)

Income tax (expense) benefit

 

 

 

(2,136

)

 

 

 

 

 

(2,136

)

 

 

16,511

 

 

 

 

 

 

16,511

 

Net Loss

 

 

$

(47,011

)

 

$

(151

)

 

$

(47,162

)

 

$

(368,681

)

 

$

(6,716

)

 

$

(375,397

)

Net Income (Loss) attributable to non-controlling interest (1)

ADJ 1

 

 

2,854

 

 

 

(349

)

 

 

2,505

 

 

 

5,734

 

 

 

(699

)

 

 

5,035

 

Net Loss attributable to ADTRAN Holdings, Inc.

 

 

$

(49,865

)

 

$

198

 

 

$

(49,667

)

 

$

(374,415

)

 

$

(6,017

)

 

$

(380,432

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

 

78,852

 

 

 

78,852

 

 

 

78,852

 

 

 

78,803

 

 

 

78,803

 

 

 

78,803

 

Weighted average shares outstanding – diluted

 

 

 

78,852

 

 

 

78,852

 

 

 

78,852

 

 

 

78,803

 

 

 

78,803

 

 

 

78,803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share attributable to ADTRAN Holdings, Inc. – basic

 

 

$

(0.63

)

 

$

0.00

 

 

$

(0.63

)

 

$

(4.75

)

 

$

(0.08

)

 

$

(4.83

)

Loss per common share attributable to ADTRAN Holdings, Inc. – diluted

 

 

$

(0.63

)

 

$

0.00

 

 

$

(0.63

)

 

$

(4.75

)

 

$

(0.08

)

 

$

(4.83

)

 

 

 

 

 

 

 

 

 

 

 

 

$

 

 

$

 

 

$

 

Net Loss

 

 

$

(47,011

)

 

$

(151

)

 

$

(47,162

)

 

$

(368,681

)

 

$

(6,716

)

 

$

(375,397

)

Other Comprehensive Loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Defined benefit plan adjustments

 

 

 

(7

)

 

 

 

 

 

(7

)

 

 

(67

)

 

 

 

 

 

(67

)

Foreign currency translation gain (loss)

ADJ 1, 3, 4

 

 

(1,375

)

 

 

(67

)

 

 

(1,442

)

 

 

(19,120

)

 

 

(95

)

 

 

(19,215

)

Other Comprehensive Loss, net of tax

 

 

 

(1,382

)

 

 

(67

)

 

 

(1,449

)

 

 

(19,187

)

 

 

(95

)

 

 

(19,282

)

Comprehensive Loss, net of tax

 

 

 

(48,393

)

 

 

(218

)

 

 

(48,611

)

 

 

(387,868

)

 

 

(6,811

)

 

 

(394,679

)

Less: Comprehensive Income attributable to non-controlling interest

ADJ 1

 

 

2,854

 

 

 

(350

)

 

 

2,504

 

 

 

5,734

 

 

 

(699

)

 

 

5,035

 

Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax

 

 

$

(51,247

)

 

$

132

 

 

$

(51,115

)

 

$

(393,602

)

 

$

(6,112

)

 

$

(399,714

)

(1) For the three and six months ended June 30, 2024, we recognized $2.5 million and $5.0 million, respectively, net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA.

 

 

 

Three Months Ended September 30, 2024

 

 

Nine Months Ended September 30, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

 

$

181,488

 

 

$

 

 

$

181,488

 

 

$

541,955

 

 

$

 

 

$

541,955

 

Services & Support

 

 

 

46,216

 

 

 

 

 

 

46,216

 

 

 

137,913

 

 

 

 

 

 

137,913

 

Total Revenue

 

 

 

227,704

 

 

 

 

 

 

227,704

 

 

 

679,868

 

 

 

 

 

 

679,868

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Network Solutions

ADJ 3

 

 

126,103

 

 

 

2,217

 

 

 

128,320

 

 

 

376,886

 

 

 

4,473

 

 

 

381,359

 

Network Solutions - Inventory Write Down

 

 

 

(328

)

 

 

 

 

 

(328

)

 

 

8,597

 

 

 

 

 

 

8,597

 

Services & Support

 

 

 

16,678

 

 

 

 

 

 

16,678

 

 

 

55,304

 

 

 

 

 

 

55,304

 

Total Cost of Revenue

 

 

 

142,453

 

 

 

2,217

 

 

 

144,670

 

 

 

440,787

 

 

 

4,473

 

 

 

445,260

 

Gross Profit

 

 

 

85,251

 

 

 

(2,217

)

 

 

83,034

 

 

 

239,081

 

 

 

(4,473

)

 

 

234,608

 

Selling, general and administrative expenses

 

 

 

57,621

 

 

 

(71

)

 

 

57,550

 

 

 

176,214

 

 

 

(309

)

 

 

175,905

 

Research and development expenses

 

 

 

51,614

 

 

 

(37

)

 

 

51,577

 

 

 

172,253

 

 

 

(109

)

 

 

172,144

 

Goodwill impairment

ADJ 4

 

 

 

 

 

 

 

 

 

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Operating Loss

 

 

 

(23,984

)

 

 

(2,109

)

 

 

(26,093

)

 

 

(401,969

)

 

 

(8,825

)

 

 

(410,794

)

Interest and dividend income

 

 

 

664

 

 

 

 

 

 

664

 

 

 

1,427

 

 

 

 

 

 

1,427

 

Interest expense

 

 

 

(5,679

)

 

 

 

 

 

(5,679

)

 

 

(17,183

)

 

 

 

 

 

(17,183

)

Net investment gain (loss)

 

 

 

1,382

 

 

 

 

 

 

1,382

 

 

 

4,507

 

 

 

 

 

 

4,507

 

Other income (expense), net

 

 

 

(850

)

 

 

 

 

 

(850

)

 

 

(441

)

 

 

 

 

 

(441

)

Loss Before Income Taxes

 

 

 

(28,467

)

 

 

(2,109

)

 

 

(30,576

)

 

 

(413,659

)

 

 

(8,825

)

 

 

(422,484

)

Income tax (expense) benefit

 

 

 

(390

)

 

 

 

 

 

(390

)

 

 

16,121

 

 

 

 

 

 

16,121

 

Net Loss

 

 

$

(28,857

)

 

$

(2,109

)

 

$

(30,966

)

 

$

(397,538

)

 

$

(8,825

)

 

$

(406,363

)

Net Income attributable to non-controlling interest (1)

 

 

 

2,382

 

 

 

 

 

 

2,382

 

 

 

7,417

 

 

 

 

 

 

7,417

 

Net Loss attributable to ADTRAN Holdings, Inc.

 

 

$

(31,239

)

 

$

(2,109

)

 

$

(33,348

)

 

$

(404,955

)

 

$

(8,825

)

 

$

(413,780

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

 

78,952

 

 

 

78,952

 

 

 

78,952

 

 

 

78,873

 

 

 

78,873

 

 

 

78,873

 

Weighted average shares outstanding – diluted

 

 

 

78,952

 

 

 

78,952

 

 

 

78,952

 

 

 

78,873

 

 

 

78,873

 

 

 

78,873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share attributable to ADTRAN Holdings, Inc. – basic

 

 

$

(0.36

)

 

$

(0.02

)

 

$

(0.38

)

 

$

(5.10

)

 

$

(0.11

)

 

$

(5.21

)

Loss per common share attributable to ADTRAN Holdings, Inc. – diluted

 

 

$

(0.36

)

 

$

(0.02

)

 

$

(0.38

)

 

$

(5.10

)

 

$

(0.11

)

 

$

(5.21

)

 

 

 

 

 

 

 

 

 

 

 

 

$

 

 

 

 

 

$

 

Net Loss

 

 

$

(28,857

)

 

$

(2,109

)

 

$

(30,966

)

 

$

(397,538

)

 

$

(8,825

)

 

$

(406,363

)

Other Comprehensive Income (Loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Defined benefit plan adjustments

 

 

 

109

 

 

 

 

 

 

109

 

 

 

42

 

 

 

 

 

 

42

 

Foreign currency translation gain (loss)

 

 

 

18,988

 

 

 

(186

)

 

 

18,802

 

 

 

(130

)

 

 

(281

)

 

 

(411

)

Other Comprehensive Income (Loss), net of tax

 

 

 

19,097

 

 

 

(186

)

 

 

18,911

 

 

 

(88

)

 

 

(281

)

 

 

(369

)

Comprehensive Loss, net of tax

 

 

 

(9,760

)

 

 

(2,295

)

 

 

(12,055

)

 

 

(397,626

)

 

 

(9,106

)

 

 

(406,732

)

Less: Comprehensive Income attributable to non-controlling interest

 

 

 

2,382

 

 

 

 

 

 

2,382

 

 

 

7,417

 

 

 

 

 

 

7,417

 

Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax

 

 

$

(12,142

)

 

$

(2,295

)

 

$

(14,437

)

 

$

(405,043

)

 

$

(9,106

)

 

$

(414,149

)

(1) For the three and nine months ended September 30, 2024, we accrued $3.1 million and $7.4 million, respectively, net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA.

 

 

 

 

 

Three Months Ended December 31, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

 

 

$

197,009

 

 

$

 

 

$

197,009

 

Services & Support

 

 

 

45,843

 

 

 

 

 

 

45,843

 

Total Revenue

 

 

 

242,852

 

 

 

 

 

 

242,852

 

Cost of Revenue

 

 

 

 

 

 

 

 

 

 

Network Solutions

ADJ 3

 

 

134,184

 

 

 

1,677

 

 

 

135,861

 

Network Solutions - Inventory Write Down

 

 

 

 

 

 

 

 

 

 

Services & Support

 

 

 

17,435

 

 

 

 

 

 

17,435

 

Total Cost of Revenue

 

 

 

151,619

 

 

 

1,677

 

 

 

153,296

 

Gross Profit

 

 

 

91,233

 

 

 

(1,677

)

 

 

89,556

 

Selling, general and administrative expenses

 

 

 

57,155

 

 

 

(142

)

 

 

57,013

 

Research and development expenses

 

 

 

49,210

 

 

 

104

 

 

 

49,314

 

Goodwill impairment

 

 

 

 

 

 

 

 

 

 

Operating Loss

 

 

 

(15,132

)

 

 

(1,639

)

 

 

(16,771

)

Interest and dividend income

 

 

 

1,631

 

 

 

 

 

 

1,631

 

Interest expense

 

 

 

(4,870

)

 

 

 

 

 

(4,870

)

Net investment gain (loss)

 

 

 

(920

)

 

 

 

 

 

(920

)

Other income (expense), net

 

 

 

687

 

 

 

 

 

 

687

 

Loss Before Income Taxes

 

 

 

(18,604

)

 

 

(1,639

)

 

 

(20,243

)

Income tax (expense) benefit

ADJ 4

 

 

(24,906

)

 

 

1,445

 

 

 

(23,461

)

Net Loss

 

 

$

(43,510

)

 

$

(194

)

 

$

(43,704

)

Net Income attributable to non-controlling interest (1)

 

 

 

2,407

 

 

 

 

 

 

2,407

 

Net Loss attributable to ADTRAN Holdings, Inc.

 

 

$

(45,917

)

 

$

(194

)

 

$

(46,111

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic

 

 

 

79,091

 

 

 

79,091

 

 

 

79,091

 

Weighted average shares outstanding – diluted

 

 

 

79,091

 

 

 

79,091

 

 

 

79,091

 

 

 

 

 

 

 

 

 

 

 

 

Loss per common share attributable to ADTRAN Holdings, Inc. – basic

 

 

$

(0.58

)

 

$

(0.00

)

 

$

(0.58

)

Loss per common share attributable to ADTRAN Holdings, Inc. – diluted

 

 

$

(0.58

)

 

$

(0.00

)

 

$

(0.58

)

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(43,510

)

 

$

(194

)

 

$

(43,704

)

Other Comprehensive Income (Loss), net of tax

 

 

 

 

 

 

 

 

 

 

Defined benefit plan adjustments

 

 

 

1,437

 

 

 

 

 

 

1,437

 

Foreign currency translation gain (loss)

ADJ 3, 4

 

 

(37,917

)

 

 

573

 

 

 

(37,344

)

Other Comprehensive Income (Loss), net of tax

 

 

 

(36,480

)

 

 

573

 

 

 

(35,907

)

Comprehensive Loss, net of tax

 

 

 

(79,990

)

 

 

379

 

 

 

(79,611

)

Less: Comprehensive Income attributable to non-controlling interest

 

 

 

2,407

 

 

 

 

 

 

2,407

 

Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax

 

 

$

(82,397

)

 

$

379

 

 

$

(82,018

)

(1) For the three months ended December 31, 2024 we accrued $2.4 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA.

 

The following tables reflect the impact of the restatements to the specific line items presented in the Company’s previously reported Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024, the six months ended June 30, 2024 and the nine months ended September 30, 2024.

 

 

 

Three Months Ended March 31, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

$

(321,670

)

 

$

(6,565

)

 

$

(328,235

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

22,528

 

 

 

(138

)

 

 

22,390

 

Goodwill Impairment

ADJ 4

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Amortization of debt issuance cost

 

 

 

1,013

 

 

 

 

 

 

1,013

 

Gain on investments, net

 

 

 

(2,621

)

 

 

 

 

 

(2,621

)

Net loss on disposal of property, plant and equipment

 

 

 

150

 

 

 

 

 

 

150

 

Stock-based compensation expense

 

 

 

3,957

 

 

 

(3

)

 

 

3,954

 

Deferred income taxes

 

 

 

(19,738

)

 

 

 

 

 

(19,738

)

Other, net

 

 

 

545

 

 

 

 

 

 

545

 

Inventory write down

 

 

 

3,992

 

 

 

 

 

 

3,992

 

Inventory reserves

 

 

 

1,837

 

 

 

 

 

 

1,837

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

 

26,002

 

 

 

(3,498

)

 

 

22,504

 

Other receivables

 

 

 

5,605

 

 

 

 

 

 

5,605

 

Income taxes receivable, net

ADJ 4

 

 

(1,296

)

 

 

4,735

 

 

 

3,439

 

Inventory

 

 

 

30,426

 

 

 

1,940

 

 

 

32,366

 

Prepaid expenses, other current assets and other assets

 

 

 

(15,882

)

 

 

(3,408

)

 

 

(19,290

)

Accounts payable

 

 

 

553

 

 

 

 

 

 

553

 

Accrued expenses and other liabilities

 

 

 

7,459

 

 

 

3,494

 

 

 

10,953

 

Income taxes payable, net

 

 

 

1,155

 

 

 

 

 

 

1,155

 

Net cash provided by (used in) operating activities

 

 

 

36,598

 

 

 

1,327

 

 

 

37,925

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

 

(12,183

)

 

 

(1,327

)

 

 

(13,510

)

Purchases of intangibles - developed technology

 

 

 

(1,191

)

 

 

 

 

 

(1,191

)

Proceeds from sales and maturities of available-for-sale investments

 

 

 

873

 

 

 

 

 

 

873

 

Purchases of available-for-sale investments

 

 

 

(44

)

 

 

 

 

 

(44

)

Net cash provided by (used in) investing activities

 

 

 

(12,545

)

 

 

(1,327

)

 

 

(13,872

)

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Tax withholdings related to stock-based compensation settlements

 

 

 

(176

)

 

 

 

 

 

(176

)

Proceeds from stock option exercises

 

 

 

219

 

 

 

 

 

 

219

 

Dividend payments

 

 

 

 

 

 

 

 

 

 

Proceeds from receivables purchase agreement

 

 

 

30,231

 

 

 

 

 

 

30,231

 

Repayments on receivables purchase agreement

 

 

 

(32,437

)

 

 

 

 

 

(32,437

)

Proceeds from draw on revolving credit agreements

 

 

 

 

 

 

 

 

 

 

Repayment of revolving credit agreements

 

 

 

 

 

 

 

 

 

 

Payment for redemption of redeemable non-controlling interest

 

 

 

(5

)

 

 

 

 

 

(5

)

Payment of debt issuance cost

 

 

 

(1,994

)

 

 

 

 

 

(1,994

)

Repayment of notes payable

 

 

 

 

 

 

 

 

 

 

Net cash (used in) provided by financing activities

 

 

 

(4,162

)

 

 

 

 

 

(4,162

)

 

 

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

 

19,891

 

 

 

 

 

 

19,891

 

Effect of exchange rate changes

 

 

 

(301

)

 

 

 

 

 

(301

)

Cash and cash equivalents, beginning of period

 

 

 

87,167

 

 

 

 

 

 

87,167

 

Cash and cash equivalents, end of period

 

 

$

106,757

 

 

$

 

 

$

106,757

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash financing activities:

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

 

$

5,243

 

 

$

 

 

$

5,243

 

Cash paid for income taxes

 

 

$

2,315

 

 

$

 

 

$

2,315

 

Cash used in operating activities related to operating leases

 

 

$

2,384

 

 

$

 

 

$

2,384

 

Supplemental disclosure of non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations

 

 

$

842

 

 

$

 

 

$

842

 

Purchases of property, plant and equipment included in accounts payable

 

 

$

1,689

 

 

$

 

 

$

1,689

 

 

 

 

 

 

Six Months Ended June 30, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(368,681

)

 

$

(6,716

)

 

$

(375,397

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

45,156

 

 

 

(313

)

 

 

44,843

 

Goodwill Impairment

ADJ 4

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Amortization of debt issuance cost

 

 

 

1,013

 

 

 

 

 

 

1,013

 

Gain on investments, net

 

 

 

(2,867

)

 

 

 

 

 

(2,867

)

Net loss on disposal of property, plant and equipment

 

 

 

185

 

 

 

 

 

 

185

 

Stock-based compensation expense

 

 

 

7,793

 

 

 

(6

)

 

 

7,787

 

Deferred income taxes

 

 

 

(13,684

)

 

 

 

 

 

(13,684

)

Other, net

 

 

 

(126

)

 

 

 

 

 

(126

)

Inventory write down - business efficiency program

 

 

 

4,135

 

 

 

 

 

 

4,135

 

Inventory reserves

 

 

 

3,722

 

 

 

 

 

 

3,722

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

 

26,913

 

 

 

(3,498

)

 

 

23,415

 

Other receivables

 

 

 

6,279

 

 

 

 

 

 

6,279

 

Income taxes receivable, net

 

 

 

(5,653

)

 

 

4,735

 

 

 

(918

)

Inventory

ADJ 3

 

 

62,151

 

 

 

2,256

 

 

 

64,407

 

Prepaid expenses, other current assets and other assets

 

 

 

(14,731

)

 

 

(3,408

)

 

 

(18,139

)

Accounts payable

 

 

 

(3,966

)

 

 

 

 

 

(3,966

)

Accrued expenses and other liabilities

 

 

 

19,152

 

 

 

3,493

 

 

 

22,645

 

Income taxes payable, net

 

 

 

(2,878

)

 

 

 

 

 

(2,878

)

Net cash provided by operating activities

 

 

 

56,496

 

 

 

1,313

 

 

 

57,809

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

 

(23,644

)

 

 

(1,327

)

 

 

(24,971

)

Purchases of intangibles - developed technology

 

 

 

(5,725

)

 

 

 

 

 

(5,725

)

Proceeds from sales and maturities of available-for-sale investments

 

 

 

956

 

 

 

 

 

 

956

 

Purchases of available-for-sale investments

 

 

 

(121

)

 

 

 

 

 

(121

)

Net cash used in investing activities

 

 

 

(28,534

)

 

 

(1,327

)

 

 

(29,861

)

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Tax withholdings related to stock-based compensation settlements

 

 

 

(189

)

 

 

 

 

 

(189

)

Proceeds from stock option exercises

 

 

 

219

 

 

 

 

 

 

219

 

Dividend payments

 

 

 

 

 

 

 

 

 

 

Proceeds from receivables purchase agreement

 

 

 

68,556

 

 

 

 

 

 

68,556

 

Repayments on receivables purchase agreement

 

 

 

(66,399

)

 

 

 

 

 

(66,399

)

Proceeds from draw on revolving credit agreements

 

 

 

 

 

 

 

 

 

 

Repayment of revolving credit agreements

 

 

 

(5,000

)

 

 

 

 

 

(5,000

)

Payment for redemption of redeemable non-controlling interest

 

 

 

(25

)

 

 

 

 

 

(25

)

Payment of debt issuance cost

 

 

 

(1,994

)

 

 

 

 

 

(1,994

)

Repayment of notes payable

 

 

 

 

 

 

 

 

 

 

Net cash used in financing activities

 

 

 

(4,832

)

 

 

 

 

 

(4,832

)

 

 

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

 

23,130

 

 

 

(14

)

 

 

23,116

 

Effect of exchange rate changes

 

 

 

888

 

 

 

14

 

 

 

902

 

Cash and cash equivalents, beginning of period

 

 

 

87,167

 

 

 

 

 

 

87,167

 

Cash and cash equivalents, end of period

 

 

$

111,185

 

 

$

 

 

$

111,185

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash financing activities:

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

 

$

6,554

 

 

$

 

 

$

6,554

 

Cash paid for income taxes

 

 

$

7,433

 

 

$

 

 

$

7,433

 

Cash used in operating activities related to operating leases

 

 

$

4,780

 

 

$

 

 

$

4,780

 

Supplemental disclosure of non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations

 

 

$

1,999

 

 

$

 

 

$

1,999

 

Purchases of property, plant and equipment included in accounts payable

 

 

$

1,059

 

 

$

 

 

$

1,059

 

 

 

 

 

 

Nine Months Ended September 30, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

$

(397,538

)

 

$

(8,825

)

 

$

(406,363

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

68,421

 

 

 

(527

)

 

 

67,894

 

Asset impairment

 

 

 

 

 

 

 

 

 

 

Goodwill impairment

ADJ 4

 

 

292,583

 

 

 

4,770

 

 

 

297,353

 

Amortization of debt issuance cost

 

 

 

1,013

 

 

 

 

 

 

1,013

 

(Accretion) amortization on available-for-sale investments, net

 

 

 

 

 

 

 

 

 

 

(Gain) loss on investments

 

 

 

(4,238

)

 

 

 

 

 

(4,238

)

Net loss on disposal of property, plant and equipment

 

 

 

203

 

 

 

 

 

 

203

 

Stock-based compensation expense

 

 

 

11,417

 

 

 

65

 

 

 

11,482

 

Deferred income taxes

 

 

 

(13,399

)

 

 

 

 

 

(13,399

)

Inventory write down

 

 

 

4,135

 

 

 

 

 

 

4,135

 

Inventory reserves

 

 

 

6,667

 

 

 

 

 

 

6,667

 

Other, net

 

 

 

(267

)

 

 

 

 

 

(267

)

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

 

59,446

 

 

 

 

 

 

59,446

 

Other receivables

 

 

 

4,875

 

 

 

 

 

 

4,875

 

Income taxes receivable

 

 

 

(5,682

)

 

 

4,735

 

 

 

(947

)

Inventory

ADJ 3

 

 

69,412

 

 

 

4,475

 

 

 

73,887

 

Prepaid expenses, other current assets and other assets

 

 

 

(20,083

)

 

 

(2,081

)

 

 

(22,164

)

Accounts payable

 

 

 

9,697

 

 

 

 

 

 

9,697

 

Accrued expenses and other liabilities

 

 

 

15,039

 

 

 

(5

)

 

 

15,034

 

Income taxes payable

 

 

 

(3,175

)

 

 

 

 

 

(3,175

)

Net cash provided by operating activities

 

 

 

98,526

 

 

 

2,607

 

 

 

101,133

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

 

(28,514

)

 

 

(2,654

)

 

 

(31,168

)

Purchases of intangibles - developed technology

 

 

 

(19,669

)

 

 

 

 

 

(19,669

)

Proceeds from sales and maturities of available-for-sale investments

 

 

 

1,195

 

 

 

 

 

 

1,195

 

Purchases of available-for-sale investments

 

 

 

(195

)

 

 

 

 

 

(195

)

Proceeds from beneficial interests in securitized accounts receivable

 

 

 

282

 

 

 

 

 

 

282

 

Net cash used in investing activities

 

 

 

(46,901

)

 

 

(2,654

)

 

 

(49,555

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

Tax withholdings related to stock-based compensation settlements

 

 

 

(189

)

 

 

 

 

 

(189

)

Proceeds from stock option exercises

 

 

 

219

 

 

 

 

 

 

219

 

Dividend payments

 

 

 

 

 

 

 

 

 

 

Proceeds from receivables purchase agreement

 

 

 

68,556

 

 

 

 

 

 

68,556

 

Repayments on receivables purchase agreement

 

 

 

(83,772

)

 

 

 

 

 

(83,772

)

Proceeds from draw on revolving credit agreements

 

 

 

 

 

 

 

 

 

 

Repayment of revolving credit agreements

 

 

 

(5,000

)

 

 

 

 

 

(5,000

)

Payment for redemption of redeemable non-controlling interest

 

 

 

(17,395

)

 

 

 

 

 

(17,395

)

Payment of annual recurring compensation to non-controlling interest

 

 

 

(10,084

)

 

 

 

 

 

(10,084

)

Payment of debt issuance cost

 

 

 

(1,994

)

 

 

 

 

 

(1,994

)

Repayment of notes payable

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

 

 

(49,659

)

 

 

 

 

 

(49,659

)

Net (decrease) increase in cash and cash equivalents

 

 

 

1,966

 

 

 

(47

)

 

 

1,919

 

Effect of exchange rate changes

 

 

 

(677

)

 

 

47

 

 

 

(630

)

Cash, cash equivalents and restricted cash, beginning of year

 

 

 

87,167

 

 

 

 

 

 

87,167

 

Cash, cash equivalents and restricted cash, end of year

 

 

$

88,456

 

 

$

 

 

$

88,456

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash financing activities

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

 

$

18,225

 

 

$

 

 

$

18,225

 

Cash paid for income taxes, net of refunds

 

 

$

9,122

 

 

$

 

 

$

9,122

 

Cash used in operating activities related to operating leases

 

 

$

7,380

 

 

$

 

 

$

7,380

 

Supplemental disclosure of non-cash investing activities:

 

 

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations

 

 

$

2,122

 

 

$

 

 

$

2,122

 

Purchases of property, plant and equipment included in accounts payable

 

 

$

952

 

 

$

 

 

$

952

 

Redemption of redeemable non-controlling interest

 

 

$

2,976

 

 

$

 

 

$

2,976

 

v3.25.1
Summary of Significant Accounting Policies - Additional Information (Detail)
€ / shares in Units, € in Millions
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Oct. 01, 2024
USD ($)
Dec. 31, 2024
USD ($)
IncentivePlan
Sep. 30, 2024
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2024
€ / shares
Mar. 31, 2024
USD ($)
Mar. 31, 2024
€ / shares
Dec. 31, 2023
USD ($)
€ / shares
Sep. 30, 2023
€ / shares
Jun. 30, 2023
€ / shares
Mar. 31, 2023
€ / shares
Jun. 30, 2024
USD ($)
Sep. 30, 2024
USD ($)
Dec. 31, 2024
USD ($)
IncentivePlan
shares
Dec. 31, 2024
EUR (€)
shares
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2023
EUR (€)
shares
Dec. 31, 2022
USD ($)
Dec. 31, 2024
EUR (€)
IncentivePlan
Oct. 18, 2022
shares
Dec. 31, 2021
USD ($)
Summary Of Significant Accounting Policy [Line Items]                                          
Cash, uninsured amount   $ 72,400,000                       $ 72,400,000              
Percentage of guaranteed interest rate   5.00%                       5.00%         5.00%    
Percentage of guaranteed interest rate plus a variable component   3.37%                       3.37%         3.37%    
Aggregate exit compensation payments obligation including guaranteed interest   $ 344,900,000                       $ 344,900,000         € 333.2    
Expire date of exit compensation                           Mar. 16, 2023 Mar. 16, 2023            
Annual recurring compensation obligation                           $ 9,300,000 € 8.9            
Accrued annual recurring compensation obligation                           $ 9,800,000   $ 10,100,000          
Number of shares tendered | shares                           831,000 831,000 67,000 67,000        
Exit compensation payments                           $ 17,400,000 € 15.7 $ 1,300,000 € 1.2        
Amount of redemptions   17,400,000                       17,400,000              
Total carrying value of assets held for sale   11,901,000                       11,901,000              
Impairment losses for long-lived assets and intangible assets                           0   0   $ 0      
Long-lived assets   284,893,000           $ 337,423,000           284,893,000   337,423,000          
Goodwill impairment $ 0 0 $ 0 $ 0   $ 297,353,000           $ 297,353,000 $ 297,353,000 297,353,000   37,874,000   0      
Goodwill impairment charges, other                               0          
Impairment charges related to capitalized implementation costs                           $ 0   0   16,900,000      
Period of assurance-based warranty for product defects                           90 days to five years 90 days to five years            
Liability for warranty obligations   $ 4,512,000           6,445,000           $ 4,512,000   6,445,000   7,196,000     $ 5,403,000
Number of stock incentive plans | IncentivePlan   2                       2         2    
Stock-based compensation expense                           $ 15,988,000   16,381,000   28,322,000      
Reduction of research and development expense recognized                           9,200,000   5,200,000   1,100,000      
Research and development costs   $ 49,314,000 $ 51,577,000 $ 60,352,000   60,215,000           $ 120,567,000 $ 172,144,000 221,458,000   258,311,000   173,757,000      
Network Solutions [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Long-lived assets   361,500,000                       361,500,000              
Goodwill impairment           297,400,000                              
Services & Support [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Goodwill impairment           $ 0                   37,900,000          
Purchase Agreement [Member] | Prior Factoring Agreement [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Credit agreement current borrowing capacity   $ 0           14,300,000           $ 0   14,300,000          
ASU 2023-07 [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]   true                       true         true    
Change in Accounting Principle, Accounting Standards Update, Adoption Date   Jan. 01, 2024                       Jan. 01, 2024         Jan. 01, 2024    
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]   true                       true         true    
Prepaid Expenses and Other Current Assets [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Current deferred costs related to prepaid and other assets   $ 2,200,000           2,100,000           $ 2,200,000   2,100,000          
Other Non-Current Assets [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Capitalized implementation costs   100,000           $ 300,000           100,000   300,000          
Selling, General and Administrative Expenses [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Amortization expense                           100,000   5,900,000   3,900,000      
Stock-based compensation expense                           $ 11,058,000   11,066,000   $ 20,844,000      
Wells Fargo Credit Agreement [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Net leverage ratio                           0.0325 0.0325            
Wells Fargo Credit Agreement [Member] | Third and Fourth Quarters Ending Springing Covenant Event [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Net leverage ratio                           0.035 0.035            
Wells Fargo Credit Agreement [Member] | First Quarter Ending Springing Covenant Period [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Net leverage ratio                           0.04 0.04            
Wells Fargo Credit Agreement [Member] | Acorn HoldCo, Inc., [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Available for future borrowings   180,800,000                       $ 180,800,000              
Credit agreement current borrowing capacity   $ 6,100,000                       $ 6,100,000              
Minimum [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Maintenance service periods                           1 month 1 month            
Maintenance contract period                           1 month 1 month            
Minimum [Member] | Building and Land Improvements [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Property, plant and equipment, estimated useful lives   5 years                       5 years         5 years    
Minimum [Member] | Office Machinery and Equipment [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Property, plant and equipment, estimated useful lives   3 years                       3 years         3 years    
Minimum [Member] | Engineering Machinery and Equipment [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Property, plant and equipment, estimated useful lives   3 years                       3 years         3 years    
Minimum [Member] | Computer Software [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Property, plant and equipment, estimated useful lives   3 years                       3 years         3 years    
Minimum [Member] | Wells Fargo Credit Agreement [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Net leverage ratio                           0.035 0.035            
Fixed charge coverage ratio               0.0125           0.0125 0.0125            
Minimum [Member] | Wells Fargo Credit Agreement [Member] | Third and Fourth Quarters Ending Springing Covenant Event [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Net leverage ratio                           0.035 0.035            
Maximum [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Maintenance service periods                           5 years 5 years            
Maintenance contract period                           5 years 5 years            
Software and hardware maintenance contract period                           10 years 10 years            
Maximum [Member] | Other Non-Current Assets [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Non-current deferred costs related to other non-current assets   $ 100,000           $ 100,000           $ 100,000   $ 100,000          
Maximum [Member] | Building and Land Improvements [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Property, plant and equipment, estimated useful lives   39 years                       39 years         39 years    
Maximum [Member] | Office Machinery and Equipment [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Property, plant and equipment, estimated useful lives   7 years                       7 years         7 years    
Maximum [Member] | Engineering Machinery and Equipment [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Property, plant and equipment, estimated useful lives   7 years                       7 years         7 years    
Maximum [Member] | Computer Software [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Property, plant and equipment, estimated useful lives   5 years                       5 years         5 years    
Maximum [Member] | Wells Fargo Credit Agreement [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Net leverage ratio               0.05           0.05 0.05            
Maximum [Member] | Wells Fargo Credit Agreement [Member] | First Quarter Ending Springing Covenant Period [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Net leverage ratio                           0.04 0.04            
Adtran Networks [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Number of shares tendered | shares                           831,000 831,000 67,000 67,000        
Exit compensation payments                           $ 17,400,000 € 15.7 $ 1,300,000 € 1.2        
Equity ownership percentage   33.00%           34.70%           33.00%   34.70%     33.00%    
Annual recurring compensation payment per share | € / shares         € 0.52   € 0.52 $ 0.52 € 0.52 € 0.52 € 0.52                    
Accrued liability per share | € / shares         € 0.59   € 0.59 $ 0.59 € 0.59 € 0.59 € 0.59                    
Adtran Networks [Member] | Maximum [Member]                                          
Summary Of Significant Accounting Policy [Line Items]                                          
Number of additional shares authorized to purchase | shares                                       15,346,544  
v3.25.1
Summary of Significant Accounting Policies - Accounts Receivable - Additional Information (Detail)
12 Months Ended
Dec. 31, 2023
Customer [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member]  
Summary Of Significant Accounting Policy [Line Items]  
Percentage of accounts receivable accounted by each customers 12.20%
v3.25.1
Summary of Significant Accounting Policies - Summary of Impact of Restatement to Specific Line Items in Consolidated Balance Sheets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current Assets        
Cash and cash equivalents $ 76,021 $ 87,167    
Accounts receivable, less allowance for credit losses of $1,300 and $400 as of December 31, 2024 and 2023, respectively 178,030 209,737    
Other receivables 9,775 17,450    
Income tax receivable 5,461 3,198    
Inventory, net 261,557 360,424    
Assets held for sale 11,901      
Prepaid expenses and other current assets 56,395 40,991    
Total Current Assets 599,140 718,967    
Property, plant and equipment, net 106,454 118,157    
Deferred tax assets, net 17,826 29,294    
Goodwill 52,918 358,150 $ 386,459  
Intangibles, net 284,893 337,423    
Other non-current assets 78,128 87,706    
Long-term investments 32,060 27,743    
Total Assets 1,171,419 1,677,440    
Current Liabilities        
Accounts Payable, Current 171,825 162,922    
Unearned revenue 52,701 42,500    
Accrued expenses and other liabilities 34,158 36,204    
Accrued wages and benefits 32,853 27,152    
Income tax payable 1,936 5,221    
Total Current Liabilities 293,473 273,999    
Non-current revolving credit agreement outstanding 189,576 195,000    
Deferred tax liabilities 30,372 35,566    
Non-current unearned revenue 22,065 22,632    
Non-current pension liability 8,983 12,543    
Deferred compensation liability 33,203 29,039    
Non-current lease obligations 25,925 31,420    
Other non-current liabilities 17,928 28,657    
Total Liabilities 621,525 628,856    
Commitments and Contingencies    
Redeemable Non-Controlling Interest 422,943 443,327    
Equity        
Common stock, par value $0.01 per share; 200,000 shares authorized; 79,483 shares issued and 79,218 outstanding as of December 31, 2024 and 78,970 shares issued and 78,674 shares outstanding as of December 31, 2023 795 790    
Additional paid-in capital 808,913 794,468    
Accumulated other comprehensive income 11,254 47,530    
Retained deficit (688,813) (231,706)    
Less treasury stock at cost: 266 and 297 shares as of December 31, 2024 and 2023, respectively (5,198) (5,825)    
Total Equity 126,951 605,257 1,303,613 $ 357,102
Total Liabilities and Equity 1,171,419 1,677,440    
As Reported [Member]        
Current Assets        
Cash and cash equivalents 77,567 87,167    
Accounts receivable, less allowance for credit losses of $1,300 and $400 as of December 31, 2024 and 2023, respectively 178,030 216,445    
Other receivables 9,775 17,450    
Income tax receivable 5,461 7,933    
Inventory, net 269,337 362,295    
Assets held for sale 11,901      
Prepaid expenses and other current assets 58,534 45,566    
Total Current Assets 610,605 736,856    
Property, plant and equipment, net 102,942 113,582    
Deferred tax assets, net 17,826 25,787    
Goodwill 52,918 353,415 $ 381,724  
Intangibles, net 284,893 337,423    
Other non-current assets 78,128 87,706    
Long-term investments 32,060 27,743    
Total Assets 1,179,372 1,682,512    
Current Liabilities        
Accounts Payable, Current 170,451 162,922    
Unearned revenue 52,701 46,731    
Accrued expenses and other liabilities 35,704 37,607    
Accrued wages and benefits 32,853 27,030    
Income tax payable 1,936 5,221    
Total Current Liabilities 293,645 279,511    
Non-current revolving credit agreement outstanding 189,576 195,000    
Deferred tax liabilities 30,690 35,655    
Non-current unearned revenue 22,065 25,109    
Non-current pension liability 8,983 12,543    
Deferred compensation liability 33,203 29,039    
Non-current lease obligations 25,925 31,420    
Other non-current liabilities 17,928 28,657    
Total Liabilities 622,015 636,934    
Redeemable Non-Controlling Interest 422,943 451,756    
Equity        
Common stock, par value $0.01 per share; 200,000 shares authorized; 79,483 shares issued and 79,218 outstanding as of December 31, 2024 and 78,970 shares issued and 78,674 shares outstanding as of December 31, 2023 795 790    
Additional paid-in capital 808,913 795,304    
Accumulated other comprehensive income 10,897 47,461    
Retained deficit (680,993) (243,908)    
Less treasury stock at cost: 266 and 297 shares as of December 31, 2024 and 2023, respectively (5,198) (5,825)    
Total Equity 134,414 593,822    
Total Liabilities and Equity 1,179,372 1,682,512    
Adjustment [Member]        
Current Assets        
Cash and cash equivalents (1,546)      
Accounts receivable, less allowance for credit losses of $1,300 and $400 as of December 31, 2024 and 2023, respectively 0 (6,708)    
Income tax receivable   (4,735)    
Inventory, net (7,780) (1,871)    
Prepaid expenses and other current assets (2,139) (4,575)    
Total Current Assets (11,465) (17,889)    
Property, plant and equipment, net 3,512 4,575    
Deferred tax assets, net   3,507    
Goodwill   4,735    
Total Assets (7,953) (5,072)    
Current Liabilities        
Accounts Payable, Current 1,374      
Unearned revenue   (4,231)    
Accrued expenses and other liabilities (1,546) (1,403)    
Accrued wages and benefits   122    
Total Current Liabilities (172) (5,512)    
Deferred tax liabilities (318) (89)    
Non-current unearned revenue   (2,477)    
Total Liabilities (490) (8,078)    
Redeemable Non-Controlling Interest   (8,429)    
Equity        
Additional paid-in capital   (836)    
Accumulated other comprehensive income 357 69    
Retained deficit (7,820) 12,202    
Total Equity (7,463) 11,435    
Total Liabilities and Equity $ (7,953) $ (5,072)    
v3.25.1
Summary of Significant Accounting Policies - Summary of Impact of Restatement to Specific Line Items in Consolidated Balance Sheets (Parenthetical) (Detail) - USD ($)
$ / shares in Units, $ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]    
Accounts receivable, allowance for credit losses $ 1,300 $ 400
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued 79,483,000 78,970,000
Common stock, shares outstanding 79,218,000 78,674,000
Treasury stock, shares 266,000 297,000
v3.25.1
Summary of Significant Accounting Policies - Summary of Impact of Restatement to Specific Line Items in Consolidated Statement of Loss and the Consolidated Statement of Comprehensive Loss (Detail) - USD ($)
$ / shares in Units, shares in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Oct. 01, 2024
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Net revenue   $ 242,852,000 $ 227,704,000 $ 225,991,000 $ 226,173,000       $ 452,164,000 $ 679,868,000 $ 922,720,000 $ 1,149,100,000 $ 1,025,536,000
Total Cost of Revenue   153,296,000 144,670,000 144,732,000 155,858,000       300,590,000 445,260,000 598,556,000 817,973,000 698,284,000
Gross Profit   89,556,000 83,034,000 81,259,000 70,315,000       151,574,000 234,608,000 324,164,000 331,127,000 327,252,000
Selling, general and administrative expenses   57,013,000 57,550,000 59,364,000 58,991,000       118,355,000 175,905,000 232,918,000 258,610,000 208,889,000
Research and development expenses   49,314,000 51,577,000 60,352,000 60,215,000       120,567,000 172,144,000 221,458,000 258,311,000 173,757,000
Goodwill impairment $ 0 0 0 0 297,353,000       297,353,000 297,353,000 297,353,000 37,874,000 0
Operating Loss   (16,771,000) (26,093,000) (38,457,000) (346,244,000)       (384,701,000) (410,794,000) (427,565,000) (223,668,000) (72,827,000)
Interest and dividend income   1,631,000 664,000 366,000 397,000       763,000 1,427,000 3,058,000 2,340,000 2,123,000
Interest expense   (4,870,000) (5,679,000) (6,906,000) (4,598,000)       (11,504,000) (17,183,000) (22,053,000) (16,299,000) (3,437,000)
Net investment gain   (920,000) 1,382,000 872,000 2,253,000       3,125,000 4,507,000 3,587,000 2,754,000 (11,339,000)
Other income (expense), net   687,000 (850,000) (901,000) 1,310,000       409,000 (441,000) 246,000 1,266,000 14,517,000
Loss Before Income Taxes   (20,243,000) (30,576,000) (45,026,000) (346,882,000)       (391,908,000) (422,484,000) (442,727,000) (233,607,000) (70,963,000)
Income tax (expense) benefit   (23,461,000) (390,000) (2,136,000) 18,647,000       16,511,000 16,121,000 (7,340,000) (28,299,000) 62,075,000
Net Loss   (43,704,000) (30,966,000) (47,162,000) (328,235,000) $ (800,000) $ (100,000) $ (0) (375,397,000) (406,363,000) (450,067,000) (261,906,000) (8,888,000)
Less: Net Income (Loss) attributable to non-controlling interest   2,407,000 2,382,000 2,505,000 2,530,000       5,035,000 7,417,000 9,824,000 [1],[2] 6,946,000 [1],[3] (6,851,000) [1]
Net Loss attributable to ADTRAN Holdings, Inc.   $ (46,111,000) $ (33,348,000) $ (49,667,000) $ (330,765,000)       $ (380,432,000) $ (413,780,000) $ (459,891,000) $ (268,852,000) $ (2,037,000)
Weighted average shares outstanding – basic   79,091 78,952 78,852 78,814       78,803 78,873 78,928 78,416 62,346
Weighted average shares outstanding – diluted   79,091 78,952 78,852 78,814       78,803 78,873 78,928 78,416 62,346
Loss per common share attributable to ADTRAN Holdings, Inc. - basic   $ (0.58) $ (0.38) $ (0.63) $ (4.2)       $ (4.83) $ (5.21) $ (5.79) [4] $ (3.43) $ (0.03)
Loss per common share attributable to ADTRAN Holdings, Inc. - diluted   $ (0.58) $ (0.38) $ (0.63) $ (4.2)       $ (4.83) $ (5.21) $ (5.79) [4] $ (3.43) $ (0.03)
Other Comprehensive Loss, net of tax                          
Net unrealized gain (loss) on available-for-sale securities         $ 0             $ 454,000 $ (284,000)
Defined benefit plan adjustments   $ 1,437,000 $ 109,000 $ (7,000) (60,000)       $ (67,000) $ 42,000 $ 1,479,000 (1,490,000) 4,597,000
Foreign currency translation loss   (37,344,000) 18,802,000 (1,442,000) (17,773,000)       (19,215,000) (411,000) (37,755,000) 22,822,000 53,396,000
Other Comprehensive (Loss) Income, net of tax   (35,907,000) 18,911,000 (1,449,000) (17,833,000)       (19,282,000) (369,000) (36,276,000) 21,786,000 57,709,000
Comprehensive Loss, net of tax   (79,611,000) (12,055,000) (48,611,000) (346,068,000)       (394,679,000) (406,732,000) (486,343,000) (240,120,000) 48,821,000
Less: Comprehensive Income attributable to non-controlling interest   2,407,000 2,382,000 2,504,000 2,531,000       5,035,000 7,417,000 9,824,000 7,328,000 12,818,000
Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax   (82,018,000) (14,437,000) (51,115,000) (348,599,000)       (399,714,000) (414,149,000) (496,167,000) (247,448,000) 36,003,000
Network Solutions [Member]                          
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Net revenue   197,009,000 181,488,000 179,194,000 181,273,000       360,467,000 541,955,000 738,964,000 974,389,000 916,793,000
Total Cost of Revenue   135,861,000 128,320,000 124,773,000 128,266,000       253,039,000 381,359,000 517,220,000 724,518,000 647,105,000
Gross Profit                     213,147,000 225,558,000 269,688,000
Goodwill impairment         297,400,000                
Services & Support [Member]                          
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Net revenue   45,843,000 46,216,000 46,797,000 44,900,000       91,697,000 137,913,000 183,756,000 174,711,000 108,743,000
Total Cost of Revenue   17,435,000 16,678,000 19,816,000 18,810,000       38,626,000 55,304,000 72,739,000 69,142,000 51,179,000
Gross Profit                     111,017,000 105,569,000 57,564,000
Goodwill impairment         0             37,900,000  
Network Solutions - Inventory Write-down and Other Charges [Member]                          
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Total Cost of Revenue                     8,597,000    
Network Solutions - Inventory Write Down [Member]                          
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Total Cost of Revenue   0 (328,000) 143,000         8,925,000 8,597,000   24,313,000  
Network Solutions - Inventory Write-Down and Other Changes [Member]                          
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Total Cost of Revenue         8,782,000           8,597,000 24,313,000 $ 0
As Reported [Member]                          
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Net revenue   242,852,000 227,704,000 225,991,000 226,173,000       452,164,000 679,868,000 922,720,000 1,149,100,000  
Total Cost of Revenue   151,619,000 142,453,000 144,416,000 153,918,000       298,334,000 440,787,000 592,406,000 816,037,000  
Gross Profit   91,233,000 85,251,000 81,575,000 72,255,000       153,830,000 239,081,000 330,314,000 333,063,000  
Selling, general and administrative expenses   57,155,000 57,621,000 59,493,000 59,100,000       118,593,000 176,214,000 233,369,000 258,149,000  
Research and development expenses   49,210,000 51,614,000 60,388,000 60,251,000       120,639,000 172,253,000 221,463,000 258,311,000  
Goodwill impairment   0 0 0 292,583,000       292,583,000 292,583,000 292,583,000 37,874,000  
Operating Loss   (15,132,000) (23,984,000) (38,306,000) (339,679,000)       (377,985,000) (401,969,000) (417,101,000) (221,271,000)  
Interest and dividend income   1,631,000 664,000 366,000 397,000       763,000 1,427,000 3,058,000 2,340,000  
Interest expense   (4,870,000) (5,679,000) (6,906,000) (4,598,000)       (11,504,000) (17,183,000) (22,053,000) (16,299,000)  
Net investment gain   (920,000) 1,382,000 872,000 2,253,000       3,125,000 4,507,000 3,587,000 2,754,000  
Other income (expense), net   687,000 (850,000) (901,000) 1,310,000       409,000 (441,000) 246,000 1,266,000  
Loss Before Income Taxes   (18,604,000) (28,467,000) (44,875,000) (340,317,000)       (385,192,000) (413,659,000) (432,263,000) (231,210,000)  
Income tax (expense) benefit   (24,906,000) (390,000) (2,136,000) 18,647,000       16,511,000 16,121,000 (8,785,000) (28,133,000)  
Net Loss   (43,510,000) (28,857,000) (47,011,000) (321,670,000)       (368,681,000) (397,538,000) (441,048,000) (259,343,000)  
Less: Net Income (Loss) attributable to non-controlling interest   2,407,000 2,382,000 2,854,000 2,880,000       5,734,000 7,417,000 9,824,000 [2] 8,345,000 [3]  
Net Loss attributable to ADTRAN Holdings, Inc.   $ (45,917,000) $ (31,239,000) $ (49,865,000) $ (324,550,000)       $ (374,415,000) $ (404,955,000) $ (450,872,000) $ (267,688,000)  
Weighted average shares outstanding – basic   79,091 78,952 78,852 78,814       78,803 78,873 78,928 78,416  
Weighted average shares outstanding – diluted   79,091 78,952 78,852 78,814       78,803 78,873 78,928 78,416  
Loss per common share attributable to ADTRAN Holdings, Inc. - basic   $ (0.58) $ (0.36) $ (0.63) $ (4.12)       $ (4.75) $ (5.1) $ (5.67) $ (3.41)  
Loss per common share attributable to ADTRAN Holdings, Inc. - diluted   $ (0.58) $ (0.36) $ (0.63) $ (4.12)       $ (4.75) $ (5.1) $ (5.67) $ (3.41)  
Other Comprehensive Loss, net of tax                          
Net unrealized gain (loss) on available-for-sale securities         $ 0             $ 454,000  
Defined benefit plan adjustments   $ 1,437,000 $ 109,000 $ (7,000) (60,000)       $ (67,000) $ 42,000 $ 1,479,000 (1,490,000)  
Foreign currency translation loss   (37,917,000) 18,988,000 (1,375,000) (17,745,000)       (19,120,000) (130,000) (38,047,000) 22,753,000  
Other Comprehensive (Loss) Income, net of tax   (36,480,000) 19,097,000 (1,382,000) (17,805,000)       (19,187,000) (88,000) (36,568,000) 21,717,000  
Comprehensive Loss, net of tax   (79,990,000) (9,760,000) (48,393,000) (339,475,000)       (387,868,000) (397,626,000) (477,616,000) (237,626,000)  
Less: Comprehensive Income attributable to non-controlling interest   2,407,000 2,382,000 2,854,000 2,880,000       5,734,000 7,417,000 9,824,000 8,727,000  
Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax   (82,397,000) (12,142,000) (51,247,000) (342,355,000)       (393,602,000) (405,043,000) (487,440,000) (246,353,000)  
As Reported [Member] | Network Solutions [Member]                          
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Net revenue   197,009,000 181,488,000 179,194,000 181,273,000       360,467,000 541,955,000 738,964,000 974,389,000  
Total Cost of Revenue   134,184,000 126,103,000 124,457,000 126,326,000       250,783,000 376,886,000 511,070,000 722,582,000  
As Reported [Member] | Services & Support [Member]                          
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Net revenue   45,843,000 46,216,000 46,797,000 44,900,000       91,697,000 137,913,000 183,756,000 174,711,000  
Total Cost of Revenue   17,435,000 16,678,000 19,816,000 18,810,000       38,626,000 55,304,000 72,739,000 69,142,000  
As Reported [Member] | Network Solutions - Inventory Write-down and Other Charges [Member]                          
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Total Cost of Revenue                     8,597,000    
As Reported [Member] | Network Solutions - Inventory Write Down [Member]                          
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Total Cost of Revenue   0 (328,000) 143,000         8,925,000 8,597,000   24,313,000  
As Reported [Member] | Network Solutions - Inventory Write-Down and Other Changes [Member]                          
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Total Cost of Revenue         8,782,000                
Adjustment [Member]                          
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Net revenue   0 0 0 0       0 0      
Total Cost of Revenue   1,677,000 2,217,000 316,000 1,940,000       2,256,000 4,473,000 6,150,000 1,936,000  
Gross Profit   (1,677,000) (2,217,000) (316,000) (1,940,000)       (2,256,000) (4,473,000) (6,150,000) (1,936,000)  
Selling, general and administrative expenses   (142,000) (71,000) (129,000) (109,000)       (238,000) (309,000) (451,000) 461,000  
Research and development expenses   104,000 (37,000) (36,000) (36,000)       (72,000) (109,000) (5,000)    
Goodwill impairment   0 0 0 4,770,000       4,770,000 4,770,000 4,770,000    
Operating Loss   (1,639,000) (2,109,000) (151,000) (6,565,000)       (6,716,000) (8,825,000) (10,464,000) (2,397,000)  
Interest and dividend income   0 0 0 0       0 0      
Interest expense   0 0 0 0       0 0      
Net investment gain   0 0 0 0       0 0      
Other income (expense), net   0 0 0 0       0 0      
Loss Before Income Taxes   (1,639,000) (2,109,000) (151,000) (6,565,000)       (6,716,000) (8,825,000) (10,464,000) (2,397,000)  
Income tax (expense) benefit   1,445,000     0           1,445,000 (166,000)  
Net Loss   (194,000) (2,109,000) (151,000) (6,565,000)       (6,716,000) (8,825,000) (9,019,000) (2,563,000)  
Less: Net Income (Loss) attributable to non-controlling interest   0 0 (349,000) (350,000)       (699,000)     (1,399,000) [3]  
Net Loss attributable to ADTRAN Holdings, Inc.   $ (194,000) $ (2,109,000) $ 198,000 $ (6,215,000)       $ (6,017,000) $ (8,825,000) $ (9,019,000) $ (1,164,000)  
Weighted average shares outstanding – basic   79,091 78,952 78,852 78,814       78,803 78,873 78,928 78,416  
Weighted average shares outstanding – diluted   79,091 78,952 78,852 78,814       78,803 78,873 78,928 78,416  
Loss per common share attributable to ADTRAN Holdings, Inc. - basic   $ (0) $ (0.02) $ 0 $ (0.08)       $ (0.08) $ (0.11) $ (0.12) $ (0.01)  
Loss per common share attributable to ADTRAN Holdings, Inc. - diluted   $ (0) $ (0.02) $ 0 $ (0.08)       $ (0.08) $ (0.11) $ (0.12) $ (0.01)  
Other Comprehensive Loss, net of tax                          
Net unrealized gain (loss) on available-for-sale securities         $ 0                
Defined benefit plan adjustments   $ 0     0                
Foreign currency translation loss   573,000 $ (186,000) $ (67,000) (28,000)       $ (95,000) $ (281,000) $ 292,000 $ 69,000  
Other Comprehensive (Loss) Income, net of tax   573,000 (186,000) (67,000) (28,000)       (95,000) (281,000) 292,000 69,000  
Comprehensive Loss, net of tax   379,000 (2,295,000) (218,000) (6,593,000)       (6,811,000) (9,106,000) (8,727,000) (2,494,000)  
Less: Comprehensive Income attributable to non-controlling interest   0 0 (350,000) (349,000)       (699,000)     (1,399,000)  
Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax   379,000 (2,295,000) 132,000 (6,244,000)       (6,112,000) (9,106,000) (8,727,000) (1,095,000)  
Adjustment [Member] | Network Solutions [Member]                          
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Net revenue   0 0 0 0       0 0      
Total Cost of Revenue   1,677,000 2,217,000 316,000 1,940,000       2,256,000 4,473,000 $ 6,150,000 $ 1,936,000  
Adjustment [Member] | Services & Support [Member]                          
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Net revenue   0 0 0 0       0 0      
Total Cost of Revenue   0 0 0 0       0 0      
Adjustment [Member] | Network Solutions - Inventory Write Down [Member]                          
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Total Cost of Revenue   $ 0 $ 0 $ 0         $ 0 $ 0      
Adjustment [Member] | Network Solutions - Inventory Write-Down and Other Changes [Member]                          
Error Corrections and Prior Period Adjustments Restatement [Line Items]                          
Total Cost of Revenue         $ 0                
[1] For the year ended December 31, 2024 we accrued $9.8 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA. For the year ended December 31, 2023, we accrued $10.1 million, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA, partially offset by a $3.2 million net loss attributable to non-controlling interests pre-DPLTA.12-24
[2] For the year ended December 31, 2024 we accrued $9.8 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA
[3] For the year ended December 31, 2023, we have recognized $10.1 million, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA partially offset by a $3.2 million net loss attributable to non-controlling interests pre-DPLTA for the year ended December 31, 2023.
[4] Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $3.0 million effect of redemption of RNCI for the year ended December 31, 2024. See Note 19 for additional information.
v3.25.1
Summary of Significant Accounting Policies - Summary of Impact of Restatement to Specific Line Items in Consolidated Statement of Loss and the Consolidated Statement of Comprehensive Loss (Parenthetical) (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
[1]
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Net gain (loss) attributable to redeemable non-controlling interest $ 2,407 $ 2,382 $ 2,505 $ 2,530 $ 5,035 $ 7,417 $ 9,824 [1],[2] $ 6,946 [1],[3] $ (6,851)
Post-DPLTA [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Recurring cash compensation earned             $ 9,800 10,100  
Net gain (loss) attributable to redeemable non-controlling interest $ 2,400 $ 3,100 $ 2,500 $ 2,500 $ 5,000 $ 7,400      
Pre-DPLTA [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Net gain (loss) attributable to redeemable non-controlling interest               $ 3,200  
[1] For the year ended December 31, 2024 we accrued $9.8 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA. For the year ended December 31, 2023, we accrued $10.1 million, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA, partially offset by a $3.2 million net loss attributable to non-controlling interests pre-DPLTA.12-24
[2] For the year ended December 31, 2024 we accrued $9.8 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA
[3] For the year ended December 31, 2023, we have recognized $10.1 million, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA partially offset by a $3.2 million net loss attributable to non-controlling interests pre-DPLTA for the year ended December 31, 2023.
v3.25.1
Summary of Significant Accounting Policies - Summary of Impact of Restatement to Specific Line Items in Consolidated Statement of Changes in Stockholders Equity (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Beginning Balance       $ 605,257 $ 605,257 $ 605,257 $ 605,257 $ 1,303,613 $ 357,102
Net loss             (450,067) (261,906) (8,888)
Annual recurring compensation earned             (9,824) (10,125)  
Acquisition of Adtran Networks               3,762  
Reclassification and remeasurement from equity to mezzanine equity for non-controlling interests in Adtran Networks               (443,757)  
Mezzanine equity for non-controlling interest in adtran networks for adtran networks stock options exercised               (1,175)  
Remeasurement of redeemable non-controlling interest             (1,175)    
Other comprehensive income (loss), net of tax $ (35,907) $ 18,911 $ (1,449) (17,833) (19,282) (369) (36,276) 21,786 57,709
Dividend payments ($0.09 per share)               (21,237) (22,885)
Dividends accrued on unvested restricted stock units               8 353
Deferred compensation adjustments, net of tax             259 (1,845) (71)
ADTRAN RSUs and restricted stock vested             (1,022) (1,106) (9,847)
ADTRAN Stock options exercised             825 164 6,131
Modification of stock options             (190) 339  
Redemption of redeemable non-controlling interest             2,986 371  
ADTRAN Stock-based compensation expense             14,825 16,016 26,141
Ending Balance 126,951           126,951 605,257 1,303,613
Adtran Networks SE [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Acquisition of Adtran Networks                 894,675
ADTRAN Stock options exercised                 726
ADTRAN Stock-based compensation expense             1,353 26 2,181
Retained Deficit [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Beginning Balance       (231,706) (231,706) (231,706) (231,706) 55,338 740,820
Net loss             (450,067) (258,727) (2,037)
Annual recurring compensation earned             (9,824) (10,125)  
Acquisition of Adtran Networks               3,762  
Dividend payments ($0.09 per share)               (21,237) (22,885)
Dividends accrued on unvested restricted stock units               8 353
Deferred compensation adjustments, net of tax               (145)  
ADTRAN RSUs and restricted stock vested             (1,026) (1,115) (10,482)
ADTRAN Stock options exercised             824 164 5,330
Redemption of redeemable non-controlling interest             2,986 371  
Ending Balance (688,813)           (688,813) (231,706) 55,338
Accumulated Other Comprehensive Income [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Beginning Balance       47,530 47,530 47,530 47,530 26,126 (11,914)
Other comprehensive income (loss), net of tax             (36,276) 21,404 38,040
Ending Balance 11,254           11,254 47,530 26,126
Additional Paid-In Capital [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Beginning Balance       794,468 794,468 794,468 794,468 895,834 288,946
Mezzanine equity for non-controlling interest in adtran networks for adtran networks stock options exercised               (1,175)  
Remeasurement of redeemable non-controlling interest             (1,175)    
Deferred compensation adjustments, net of tax             (368)    
Modification of stock options             (190) 339  
ADTRAN Stock-based compensation expense             14,825 16,016 26,141
Ending Balance 808,913           808,913 794,468 895,834
Additional Paid-In Capital [Member] | Adtran Networks SE [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Acquisition of Adtran Networks                 577,980
Reclassification and remeasurement from equity to mezzanine equity for non-controlling interests in Adtran Networks               (116,895)  
ADTRAN Stock options exercised               323 472
ADTRAN Stock-based compensation expense             1,353 26 2,108
As Reported [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Beginning Balance       593,822 593,822 593,822 593,822    
Annual recurring compensation earned     400 400          
Other comprehensive income (loss), net of tax (36,480) 19,097 (1,382) (17,805) (19,187) (88) (36,568) 21,717  
Ending Balance 134,414           134,414 593,822  
As Reported [Member] | Retained Deficit [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Beginning Balance       (243,908) (243,908) (243,908) (243,908) 55,338  
Net loss             (441,048) (256,164)  
Annual recurring compensation earned             (9,824) (11,524)  
Dividend payments ($0.09 per share)               (21,237)  
Dividends accrued on unvested restricted stock units               8  
Deferred compensation adjustments, net of tax               (145)  
ADTRAN RSUs and restricted stock vested             (1,026) (1,115)  
ADTRAN Stock options exercised             824 164  
Redemption of redeemable non-controlling interest             2,986 371  
Foreign currency remeasurement of redeemable non-controlling interest               (9,604)  
Ending Balance (691,996)           (691,996) (243,908) 55,338
As Reported [Member] | Accumulated Other Comprehensive Income [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Beginning Balance       47,461 47,461 47,461 47,461 26,126  
Other comprehensive income (loss), net of tax             (36,568) 21,335  
Ending Balance 10,893           10,893 47,461 26,126
As Reported [Member] | Additional Paid-In Capital [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Beginning Balance       795,304 795,304 795,304 795,304 895,834  
Remeasurement of redeemable non-controlling interest             (1,175)    
Deferred compensation adjustments, net of tax             (368)    
Modification of stock options             (190)    
ADTRAN Stock-based compensation expense             14,825 16,016  
Ending Balance 808,913           808,913 795,304 $ 895,834
As Reported [Member] | Additional Paid-In Capital [Member] | Adtran Networks SE [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Reclassification and remeasurement from equity to mezzanine equity for non-controlling interests in Adtran Networks               (116,895)  
ADTRAN Stock options exercised               323  
ADTRAN Stock-based compensation expense             517 26  
Adjustment [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Beginning Balance       11,435 11,435 11,435 11,435    
Other comprehensive income (loss), net of tax 573 $ (186) $ (67) (28) (95) (281) 292 69  
Ending Balance (7,463)           (7,463) 11,435  
Adjustment [Member] | Retained Deficit [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Beginning Balance       12,202 12,202 12,202 12,202    
Net loss             (9,019) (2,563)  
Annual recurring compensation earned               1,399  
Acquisition of Adtran Networks               3,762  
Foreign currency remeasurement of redeemable non-controlling interest               9,604  
Ending Balance 3,183           3,183 12,202  
Adjustment [Member] | Accumulated Other Comprehensive Income [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Beginning Balance       69 69 69 69    
Other comprehensive income (loss), net of tax             292 69  
Ending Balance $ 361           361 69  
Adjustment [Member] | Additional Paid-In Capital [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Beginning Balance       $ (836) $ (836) $ (836) (836)    
Mezzanine equity for non-controlling interest in adtran networks for adtran networks stock options exercised               (1,175)  
Modification of stock options               339  
Ending Balance               $ (836)  
Adjustment [Member] | Additional Paid-In Capital [Member] | Adtran Networks SE [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
ADTRAN Stock-based compensation expense             $ 836    
v3.25.1
Summary of Significant Accounting Policies - Summary of Impact of Restatement to Specific Line Items in Consolidated Statement of Changes in Stockholders Equity (Parenthetical) (Detail) - $ / shares
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Accounting Policies [Abstract]    
Dividends payments $ 0.09 $ 0.09
v3.25.1
Summary of Significant Accounting Policies - Summary of Impact of Restatement to Specific Line Items in Consolidated Statements of Cash Flows (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:                        
Net Loss $ (43,704) $ (30,966) $ (47,162) $ (328,235) $ (800) $ (100) $ (0) $ (375,397) $ (406,363) $ (450,067) $ (261,906) $ (8,888)
Adjustments to reconcile net loss to net cash provided by operating activities:                        
Depreciation and amortization       22,390       44,843 67,894 90,529 112,949 67,553
Goodwill impairment                   297,353 37,874  
Amortization of debt issuance cost       1,013       1,013 1,013 3,950 862 288
Accretion on available-for-sale investments, net                     (22) 19
Gain on investments       (2,621)       (2,867) (4,238) (5,030) (2,900) 9,826
Net loss on disposal of property, plant and equipment       150       185 203 1,371 458 152
Stock-based compensation expense       3,954       7,787 11,482 15,988 16,381 28,322
Deferred income taxes       (19,738)       (13,684) (13,399) 5,576 15,724 (62,388)
Inventory write down - business efficiency program       3,992       4,135 4,135 4,135 24,313  
Inventory reserves       1,837       3,722 6,667 5,316 25,546 (2,363)
Other, net       545       (126) (267)   (2,942)  
Change in operating assets and liabilities:                        
Accounts receivable, net       22,504       23,415 59,446 46,108 72,320 788
Other receivables       5,605       6,279 4,875 10,713 10,315 (20,088)
Income taxes receivable       (3,439)       (918) (947) 648 2,098  
Inventory       32,366       64,407 73,887 79,985 22,408 (73,237)
Prepaid expenses, other current assets and other assets       (19,290)       (18,139) (22,164) (13,445) (31,964) (7,116)
Accounts payable       553       (3,966) 9,697 10,238 (91,907) 28,105
Accrued expenses and other liabilities       10,953       22,645 15,034 4,873 11,317 (20,483)
Income taxes payable       1,155       (2,878) (3,175) (4,670) (3,939) (2,151)
Net cash provided by (used in) operating activities       37,925       57,809 101,133 103,571 (43,015) (44,228)
Cash flows from investing activities:                        
Purchases of property, plant and equipment       (13,510)       (24,971) (31,168) (34,501) (36,337) (17,072)
Purchases of intangibles - developed technology       (1,191)       (5,725) (19,669) (30,671) (9,438)  
Proceeds from sales and maturities of available-for-sale investments       873       956 1,195 1,240 10,567 51,661
Purchases of available-for-sale investments       (44)       (121) (195) (268) (868) (23,899)
(Payments) for and proceeds from beneficial interests in securitized accounts receivable                   (55) 1,218 1,126
Net cash (used in) provided by investing activities       (13,872)       (29,861) (49,555) (64,255) (34,858) 55,831
Cash flows from financing activities:                        
Tax withholdings related to stock-based compensation settlements       (176)       (189) (189) (1,143) (6,458) (4,253)
Proceeds from stock option exercises       219       219 219 824 540 6,904
Dividend payments                   0 (21,237) (22,885)
Proceeds from receivables purchase agreement       30,231       68,556 68,556 68,556 14,099  
Repayments on receivables purchase agreement       (32,437)       (66,399) (83,772) (83,772)    
Proceeds from draw on revolving credit agreements                   26,000 163,733 141,887
Repayment of revolving credit agreements               (5,000) (5,000) (31,000) (64,987) (48,000)
Redemption of redeemable non-controlling interest       (5)       (25) (17,395) (17,398) (1,224)  
Payment of annual recurring compensation to non-controlling interest                 (10,084) (10,084)    
Payment of debt issuance cost       (1,994)       (1,994) (1,994) (1,994) (708) (3,015)
Repayment of notes payable               0     (24,891) (17,702)
Net cash (used in) provided by financing activities       (4,162)       (4,832) (49,659) (50,011) 58,867 52,936
Net (decrease) increase in cash and cash equivalents       19,891       23,116 1,919 (10,695) (19,006) 64,539
Effect of exchange rate changes       (301)       902 (630) (451) (2,471) (12,713)
Cash, cash equivalents and restricted cash, beginning of year 88,456 111,185 106,757 87,167       87,167 87,167 87,167 108,644 56,818
Cash, cash equivalents and restricted cash, end of year 76,021 88,456 111,185 106,757 108,644     111,185 88,456 76,021 87,167 108,644
Supplemental Cash Flow Information [Abstract]                        
Cash paid for interest       5,243       6,554 18,225 20,884 12,596 1,728
Cash paid for income taxes, net of refunds       2,315       7,433 9,122 6,691 18,552 3,832
Cash used in operating activities related to operating leases       2,384       4,780 7,380 9,274 9,682 5,229
Supplemental disclosure of non-cash investing activities                        
Right-of-use assets obtained in exchange for lease obligations       842       1,999 2,122 5,317 17,865 3,410
Purchases of property, plant and equipment included in accounts payable       1,689       1,059 952 2,635 1,298 1,165
Redemption of redeemable non-controlling interest                 2,976 2,986 371  
As Reported [Member]                        
Cash flows from operating activities:                        
Net Loss (43,510) (28,857) (47,011) (321,670)       (368,681) (397,538) (441,048) (259,343)  
Adjustments to reconcile net loss to net cash provided by operating activities:                        
Depreciation and amortization       22,528       45,156 68,421 90,985 112,949  
Goodwill impairment                   292,583 37,874  
Amortization of debt issuance cost       1,013       1,013 1,013 3,950 862  
Accretion on available-for-sale investments, net                     (22)  
Gain on investments       (2,621)       (2,867) (4,238) (5,030) (2,900)  
Net loss on disposal of property, plant and equipment       150       185 203 1,371 458  
Stock-based compensation expense       3,957       7,793 11,417 15,342 16,016  
Deferred income taxes       (19,738)       (13,684) (13,399) 2,247 15,558  
Inventory write down - business efficiency program       3,992       4,135 4,135 4,135 24,313  
Inventory reserves       1,837       3,722 6,667 3,980 25,546  
Other, net       545       (126) (267)   (2,942)  
Change in operating assets and liabilities:                        
Accounts receivable, net       26,002       26,913 59,446 46,108 65,612  
Other receivables       5,605       6,279 4,875 10,713 10,315  
Income taxes receivable       (1,296)       (5,653) (5,682) 648 (2,637)  
Inventory       30,426       62,151 69,412 75,171 20,537  
Prepaid expenses, other current assets and other assets       (15,882)       (14,731) (20,083) (10,718) (29,883)  
Accounts payable       553       (3,966) 9,697 11,784 (91,907)  
Accrued expenses and other liabilities       7,459       19,152 15,039 5,519 17,929  
Income taxes payable       1,155       (2,878) (3,175) (4,670) (3,939)  
Net cash provided by (used in) operating activities       36,598       56,496 98,526 103,070 (45,604)  
Cash flows from investing activities:                        
Purchases of property, plant and equipment       (12,183)       (23,644) (28,514) (32,454) (33,683)  
Purchases of intangibles - developed technology       (1,191)       (5,725) (19,669) (30,671) (9,438)  
Proceeds from sales and maturities of available-for-sale investments       873       956 1,195 1,240 10,567  
Purchases of available-for-sale investments       (44)       (121) (195) (268) (868)  
(Payments) for and proceeds from beneficial interests in securitized accounts receivable                   (55) 1,218  
Net cash (used in) provided by investing activities       (12,545)       (28,534) (46,901) (62,208) (32,204)  
Cash flows from financing activities:                        
Tax withholdings related to stock-based compensation settlements       (176)       (189) (189) (1,143) (6,458)  
Proceeds from stock option exercises       219       219 219 824 540  
Dividend payments                     (21,237)  
Proceeds from receivables purchase agreement       30,231       68,556 68,556 68,556 14,099  
Repayments on receivables purchase agreement       (32,437)       (66,399) (83,772) (83,772)    
Proceeds from draw on revolving credit agreements                   26,000 163,733  
Repayment of revolving credit agreements               (5,000) (5,000) (31,000) (64,987)  
Redemption of redeemable non-controlling interest       (5)       (25) (17,395) (17,398) (1,224)  
Payment of annual recurring compensation to non-controlling interest                 (10,084) (10,084)    
Payment of debt issuance cost       (1,994)       (1,994) (1,994) (1,994) (708)  
Repayment of notes payable               0     (24,891)  
Net cash (used in) provided by financing activities       (4,162)       (4,832) (49,659) (50,011) 58,867  
Net (decrease) increase in cash and cash equivalents       19,891       23,130 1,966 (9,149) (18,941)  
Effect of exchange rate changes       (301)       888 (677) (451) (2,536)  
Cash, cash equivalents and restricted cash, beginning of year 88,456 111,185 106,757 87,167       87,167 87,167 87,167 108,644  
Cash, cash equivalents and restricted cash, end of year 77,567 88,456 111,185 106,757 $ 108,644     111,185 88,456 77,567 87,167 $ 108,644
Supplemental Cash Flow Information [Abstract]                        
Cash paid for interest       5,243       6,554 18,225 20,884 12,596  
Cash paid for income taxes, net of refunds       2,315       7,433 9,122 6,691 18,552  
Cash used in operating activities related to operating leases       2,384       4,780 7,380 9,274 9,682  
Supplemental disclosure of non-cash investing activities                        
Right-of-use assets obtained in exchange for lease obligations       842       1,999 2,122 5,317 17,865  
Purchases of property, plant and equipment included in accounts payable       1,689       1,059 952 2,635 1,298  
Redemption of redeemable non-controlling interest                 2,976 2,986 371  
Adjustment [Member]                        
Cash flows from operating activities:                        
Net Loss (194) $ (2,109) $ (151) (6,565)       (6,716) (8,825) (9,019) (2,563)  
Adjustments to reconcile net loss to net cash provided by operating activities:                        
Depreciation and amortization       (138)       (313) (527) (456)    
Goodwill impairment                   4,770    
Stock-based compensation expense       (3)       (6) 65 646 365  
Deferred income taxes                   3,329 166  
Inventory reserves                   1,336    
Change in operating assets and liabilities:                        
Accounts receivable, net       (3,498)       (3,498)     6,708  
Income taxes receivable       4,735       (4,735) 4,735   4,735  
Inventory       1,940       (2,256) 4,475 4,814 1,871  
Prepaid expenses, other current assets and other assets       3,408       3,408 2,081 (2,727) (2,081)  
Accounts payable               0   (1,546)    
Accrued expenses and other liabilities       3,494       3,493 (5) (646) (6,612)  
Net cash provided by (used in) operating activities       1,327       1,313 (2,607) 501 2,589  
Cash flows from investing activities:                        
Purchases of property, plant and equipment       (1,327)       1,327 2,654 2,047 (2,654)  
Purchases of intangibles - developed technology       0       0 0      
Net cash (used in) provided by investing activities       $ (1,327)       (1,327) (2,654) (2,047) (2,654)  
Cash flows from financing activities:                        
Net (decrease) increase in cash and cash equivalents               (14) (47) (1,546) (65)  
Effect of exchange rate changes               $ 14 $ 47   $ 65  
Cash, cash equivalents and restricted cash, end of year $ (1,546)                 $ (1,546)    
v3.25.1
Revenue - Additional Information (Detail)
12 Months Ended
Dec. 31, 2024
USD ($)
Category
Dec. 31, 2023
USD ($)
Jul. 01, 2024
USD ($)
Dec. 19, 2023
USD ($)
Revenue [Line Items]        
Number of categories | Category 3      
Accounts receivable, allowance for credit losses $ 1,300,000 $ 400,000    
Recognized revenue 50,500,000 36,200,000    
Allowance for credit losses related to contract assets 0 0    
Factor [Member] | Purchase Agreement [Member]        
Revenue [Line Items]        
Accounts receivable 18,300,000      
Cost of receivables 600,000 900,000    
Secured revolving credit facility amount     $ 40,000,000  
Factor [Member] | Purchase Agreement [Member] | Other Assets [Member]        
Revenue [Line Items]        
Accounts receivable gross 3,700,000      
Prior Factoring Agreement [Member] | Purchase Agreement [Member]        
Revenue [Line Items]        
Secured revolving credit facility amount       $ 40,000,000
Secured borrowings current borrowing capacity 0 14,300,000    
Secured borrowings, available for future borrowings   25,400,000    
Secured borrowings, account receivable pledged as collateral   16,800,000    
Secured borrowings, fee expense incurred 600,000      
Contractual Maintenance Agreements, Contractual SaaS and Subscription Services and Hardware Orders [Member]        
Revenue [Line Items]        
Remaining performance obligations $ 325,700,000 $ 314,800,000    
v3.25.1
Revenue - Disaggregate of Revenue by Reportable Segment and Revenue Category (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation Of Revenue [Line Items]                  
Revenue $ 242,852 $ 227,704 $ 225,991 $ 226,173 $ 452,164 $ 679,868 $ 922,720 $ 1,149,100 $ 1,025,536
Subscriber Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             330,778 297,708 390,454
Access & Aggregation Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             291,006 358,418 374,002
Optical Networking Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             300,936 492,974 261,080
Network Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue 197,009 181,488 179,194 181,273 360,467 541,955 738,964 974,389 916,793
Network Solutions [Member] | Subscriber Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             295,541 263,192 364,238
Network Solutions [Member] | Access & Aggregation Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             232,934 304,074 326,934
Network Solutions [Member] | Optical Networking Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             210,489 407,123 225,621
Services & Support [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue $ 45,843 $ 46,216 $ 46,797 $ 44,900 $ 91,697 $ 137,913 183,756 174,711 108,743
Services & Support [Member] | Subscriber Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             35,237 34,516 26,216
Services & Support [Member] | Access & Aggregation Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             58,072 54,344 47,068
Services & Support [Member] | Optical Networking Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             $ 90,447 $ 85,851 $ 35,459
v3.25.1
Revenue - Additional Information (Detail1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01
Dec. 31, 2024
Revenue [Line Items]  
Remaining performance obligations, percentage 73.00%
Remaining performance obligations, period 12 months
v3.25.1
Revenue - Information about Receivable, Contract Assets, and Unearned Revenue from Contracts with Customers (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]    
Accounts receivable $ 178,030 $ 209,737
Contract assets [1] 631 691
Unearned revenue 52,701 42,500
Non-current unearned revenue $ 22,065 $ 22,632
[1] Included in other receivables on the Consolidated Balance Sheets.
v3.25.1
Stock-Based Compensation (Stock Incentive Program Descriptions) - Additional Information (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Options available for issuance under shareholders-approved equity plan 5,100,000    
Stock-based compensation expense $ 15,988 $ 16,381 $ 28,322
PSUs, RSUs and Restricted Stock [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting period 4 years    
Performance Stock Units (PSUs) [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting period     3 years
Performance Stock Units (PSUs) [Member] | Minimum [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Percentage of performance stock units granted     0.00%
Performance Stock Units (PSUs) [Member] | Maximum [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Percentage of performance stock units granted     150.00%
Performance Stock Units (PSUs) [Member] | Executive Officers and Certain Employees [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting period   1 year 2 years
Performance Stock Units (PSUs) [Member] | Executive Officers and Certain Employees [Member] | Tranche One [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Percentage of performance stock units granted   100.00%  
Performance Stock Units (PSUs) [Member] | Executive Officers and Certain Employees [Member] | Minimum [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Percentage of performance stock units granted   0.00% 0.00%
Performance Stock Units (PSUs) [Member] | Executive Officers and Certain Employees [Member] | Minimum [Member] | Tranche One [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting period   2 years  
Performance Stock Units (PSUs) [Member] | Executive Officers and Certain Employees [Member] | Maximum [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Percentage of performance stock units granted   142.80% 142.80%
Performance Stock Units (PSUs) [Member] | Executive Officers and Certain Employees [Member] | Maximum [Member] | Tranche Two [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting period   3 years  
Percentage of performance stock units granted   150.00%  
2020 Employee Stock Incentive Plan [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Number of additional shares of common stock granted 0    
2024 Employee Stock Incentive Plan [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Number of shares of common stock authorized 4,500,000    
Forfeiture of stock increase in issuance of common stock 1    
Contractual term 10 years    
2024 Employee Stock Incentive Plan [Member] | PSUs, RSUs and Restricted Stock [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting period 4 years    
2024 Employee Stock Incentive Plan [Member] | Employee Stock Option      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Vesting period 4 years    
2024 Directors Stock Plan [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Number of shares of common stock authorized 600,000    
Multiplier used when issuing PSUs, restricted stock and RSUs 1    
Forfeiture of stock increase in issuance of common stock 1    
Contractual term 10 years    
v3.25.1
Stock-Based Compensation - Stock-Based Compensation Expense Related to Stock Options, PSUs, RSUs and Restricted Stock (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Total stock-based compensation expense $ 15,988 $ 16,381 $ 28,322
Tax benefit for expense associated with non-qualified stock options, PSUs, RSUs and restricted stock (1,976) (3,837) (5,152)
Total stock-based compensation expense, net of tax 14,012 12,544 23,170
Cost of Revenue [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Total stock-based compensation expense 1,142 1,293 2,876
Selling, General and Administrative Expenses [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Total stock-based compensation expense 11,058 11,066 20,844
Research and Development Expenses [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Total stock-based compensation expense 3,788 4,022 4,602
Stock-based Compensation Expense Included in Operating Expenses [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Total stock-based compensation expense $ 14,846 $ 15,088 $ 25,446
v3.25.1
Stock-Based Compensation - Summary of PSUs, RSUs and Restricted Stock Outstanding (Detail)
shares in Thousands
12 Months Ended
Dec. 31, 2024
$ / shares
shares
Share-Based Payment Arrangement [Abstract]  
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, beginning balance | shares 1,942
Number of Shares, PSUs, RSUs and restricted stock granted | shares 1,097
Number of Shares, PSUs, RSUs and restricted stock vested | shares (575)
Number of Shares, PSUs, RSUs and restricted stock forfeited | shares (129)
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, ending balance | shares 2,335
Weighted Average Grant Date Fair Value, Unvested PSUs, RSUs and restricted stock outstanding, Beginning Balance | $ / shares $ 17.46
Weighted Average Grant Date Fair Value, PSUs, RSUs and restricted stock granted | $ / shares 7.85
Weighted Average Grant Date Fair Value, PSUs, RSUs and restricted stock vested | $ / shares 18.76
Weighted Average Grant Date Fair Value, PSUs, RSUs and restricted stock forfeited | $ / shares 14.2
Weighted Average Grant Date Fair Value, Unvested PSUs, RSUs and restricted stock outstanding, Ending Balance | $ / shares $ 13.22
v3.25.1
Stock-Based Compensation - Summary of Weighted-Average Assumptions and Value of Options Granted (Detail) - $ / shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Expected volatility   51.78%  
Risk-free interest rate   4.13%  
Expected dividend yield   0.00%  
Expected life (in years)   5 years 9 months 18 days  
Market-Based PSUs [Member]      
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]      
Estimated fair value per share $ 8.29 $ 19.26 $ 24.01
Expected volatility 51.34% 51.52% 45.77%
Risk-free interest rate 4.12% 3.93% 4.28%
Expected dividend yield 0.00% 2.55% 1.76%
v3.25.1
Stock-Based Compensation (PSUs, RSUs and Restricted Stock) - Additional Information (Detail) - USD ($)
shares in Thousands, $ in Millions
12 Months Ended
Jul. 15, 2022
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Share granted   1,097    
Executive Officers and Certain Employees [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Share granted       300
Adtran Networks [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Number of market based PSU awards converted to time based RSU awards 300      
Performance Stock Units (PSUs) [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Vesting period       3 years
Share granted   100 900  
Unrecognized compensation expense related to other than options   $ 10.9    
Recognition period of non-vested compensation cost   1 year    
Performance Stock Units (PSUs) [Member] | Executive Officers and Certain Employees [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Vesting period     1 year 2 years
Performance Stock Units (PSUs) [Member] | Minimum [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Percentage of performance stock units granted       0.00%
Performance Stock Units (PSUs) [Member] | Minimum [Member] | Executive Officers and Certain Employees [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Percentage of performance stock units granted     0.00% 0.00%
Performance Stock Units (PSUs) [Member] | Maximum [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Percentage of performance stock units granted       150.00%
Performance Stock Units (PSUs) [Member] | Maximum [Member] | Executive Officers and Certain Employees [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Percentage of performance stock units granted     142.80% 142.80%
PSUs, RSUs and Restricted Stock [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Vesting period   4 years    
Restricted Stock [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Vesting period   1 year    
Market-Based PSUs, RSUs and Restricted Stock [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Unrecognized compensation expense related to other than options   $ 10.7    
Recognition period of non-vested compensation cost   2 years 1 month 6 days    
Time-Based RSUs [Member]        
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]        
Unrecognized compensation expense related to other than options       $ 17.8
Unrecognized compensation expense related to other than options   $ 3.2    
Recognition period of non-vested compensation cost   10 months 24 days    
v3.25.1
Stock-Based Compensation - Summary of Stock Options Outstanding (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Number of Options, Stock options outstanding, Beginning Balance 3,894  
Number of Options, Stock options exercised (139)  
Number of Options, Stock options forfeited (202)  
Number of Options, Stock options expired (609)  
Number of Options, Stock options outstanding, Ending Balance 2,944 3,894
Number of Options, Stock options exercisable 1,465  
Weighted Average Exercise Price, Stock options outstanding, Beginning Balance $ 10.32  
Weighted Average Exercise Price, Stock options exercised 5.93  
Weighted Average Exercise Price, Stock options forfeited 6.78  
Weighted Average Exercise Price, Stock options expired 14.69  
Weighted Average Exercise Price, Stock options outstanding, Ending Balance 9.86 $ 10.32
Weighted Average Exercise Price, Stock options exercisable $ 8.73  
Weighted Average Remaining Contractual Life in Years, Stock options outstanding 4 years 11 months 23 days 5 years 3 months
Weighted Average Remaining Contractual Life in Years, Stock options exercisable 4 years 2 months 4 days  
Aggregate Intrinsic Value, Stock options outstanding $ 3,762 $ 3,087
Aggregate Intrinsic Value, Stock options exercisable $ 1,960  
v3.25.1
Stock-Based Compensation (Stock Options) - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Thousands, shares in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Options available for issuance under shareholders-approved equity plan 5.1  
Aggregate intrinsic value based on fair market value $ 3,762 $ 3,087
Total pre-tax intrinsic value of options exercised $ 300 $ 100
Weighted-average estimated fair value per share of stock options granted to employees   $ 2.99
v3.25.1
Stock-Based Compensation - Stock Options Outstanding (Detail) - $ / shares
shares in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]    
Options Outstanding at 12/31/24 2,944 3,894
Options Exercisable at 12/31/24 1,465  
Weighted Average Exercise Price, Options exercisable $ 8.73  
$5.23 - 5.23 [Member]    
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]    
Lower Range Limit 5.23  
Upper Range Limit $ 5.23  
Options Outstanding at 12/31/24 1,131  
Weighted Average Remaining Contractual Life In Years, Options Outstanding 8 years 10 months 13 days  
Weighted Average Exercise Price, Options Outstanding $ 5.23  
Options Exercisable at 12/31/24 550  
Weighted Average Exercise Price, Options exercisable $ 5.23  
$5.24 - 8.58 [Member]    
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]    
Lower Range Limit 5.24  
Upper Range Limit $ 8.58  
Options Outstanding at 12/31/24 431  
Weighted Average Remaining Contractual Life In Years, Options Outstanding 1 year 10 months 6 days  
Weighted Average Exercise Price, Options Outstanding $ 7.86  
Options Exercisable at 12/31/24 431  
Weighted Average Exercise Price, Options exercisable $ 7.86  
$8.59 - 12.17 [Member]    
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]    
Lower Range Limit 8.59  
Upper Range Limit $ 12.17  
Options Outstanding at 12/31/24 696  
Weighted Average Remaining Contractual Life In Years, Options Outstanding 2 years 9 months 21 days  
Weighted Average Exercise Price, Options Outstanding $ 11.57  
Options Exercisable at 12/31/24 155  
Weighted Average Exercise Price, Options exercisable $ 9.49  
$12.18 - 15.33 [Member]    
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]    
Lower Range Limit 12.18  
Upper Range Limit $ 15.33  
Options Outstanding at 12/31/24 378  
Weighted Average Remaining Contractual Life In Years, Options Outstanding 1 year 2 months 23 days  
Weighted Average Exercise Price, Options Outstanding $ 15.33  
Options Exercisable at 12/31/24 329  
Weighted Average Exercise Price, Options exercisable $ 15.33  
$15.34 - 19.08 [Member]    
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]    
Lower Range Limit 15.34  
Upper Range Limit $ 19.08  
Options Outstanding at 12/31/24 308  
Weighted Average Remaining Contractual Life In Years, Options Outstanding 4 years 4 months 13 days  
Weighted Average Exercise Price, Options Outstanding $ 19.08  
Options Exercisable at 12/31/24 0  
Weighted Average Exercise Price, Options exercisable $ 0  
v3.25.1
Investments - Gross Realized Gains and Losses on Sale of Debt Securities (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]      
Gross realized gains on debt securities $ 0 $ 9 $ 17
Gross realized losses on debt securities 0 (355) (1,211)
Total (loss) gain recognized, net $ 0 $ (346) $ (1,194)
v3.25.1
Investments - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Schedule of Investments [Line Items]      
Purchase an available-for-sale debt with credit deterioration $ 0 $ 0 $ 0
Available-for-sale debt securities 0    
Other investments $ 0    
Investment [Member] | Issuer Concentration [Member] | Market Value of Total Investment Portfolio [Member]      
Schedule of Investments [Line Items]      
Investment concentration risk percentage 5.00%    
v3.25.1
Investments - Realized and Unrealized Gains and Losses for Marketable Equity Securities (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]      
Realized gains (losses) on equity securities sold $ 277 $ 17 $ (1,675)
Unrealized gains (losses) on equity securities held 3,310 3,083 (8,470)
Total gain (loss) recognized, net $ 3,587 $ 3,100 $ (10,145)
v3.25.1
Investments - Cash Equivalents and Investments held at Fair Value (Detail) - Fair Value, Measurements [Member] - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Schedule of Available-for-sale Securities [Line Items]    
Total $ 37,597 $ 33,045
Quoted Prices in Active Market for Identical Assets (Level 1) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Total 37,597 33,045
Money Market Funds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Cash equivalents 5,538 5,302
Money Market Funds [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Cash equivalents 5,538 5,302
Marketable Equity Securities - Various Industries [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Marketable equity securities 1,068 905
Marketable Equity Securities - Various Industries [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Marketable equity securities 1,068 905
Deferred Compensation Plan Assets [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Marketable equity securities 30,991 26,838
Deferred Compensation Plan Assets [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Marketable equity securities $ 30,991 $ 26,838
v3.25.1
Inventory - Components of Inventory (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Inventory Disclosure [Abstract]    
Raw materials $ 106,384 $ 152,140
Work in process 9,724 17,239
Finished goods 145,449 191,045
Total Inventory, net $ 261,557 $ 360,424
v3.25.1
Inventory - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Inventory [Line Items]            
Inventory renegotiated charges $ (32,366) $ (64,407) $ (73,887) $ (79,985) $ (22,408) $ 73,237
Inventory write down $ 3,992 $ 4,135 $ 4,135 4,135 24,313  
Business Efficiency Program            
Inventory [Line Items]            
Strategy shift charges       8,600    
Inventory write down       4,100 $ 24,300  
Other charges       $ 4,500    
v3.25.1
Property, Plant and Equipment - Property, Plant and Equipment, Net (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Abstract]    
Engineering and other equipment $ 184,694 $ 183,336
Building 50,871 79,215
Computer hardware and software 113,241 96,327
Building and land improvements 39,979 58,238
Furniture and fixtures 20,994 21,368
Land 2,989 5,242
Total Property, Plant and Equipment 412,768 443,726
Less: accumulated depreciation (306,314) (325,569)
Total Property, Plant and Equipment, net $ 106,454 $ 118,157
v3.25.1
Property, Plant and Equipment - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]      
Asset impairment $ 0 $ 0 $ 17,433,000
Depreciation expense $ 27,700,000 $ 30,200,000 20,900,000
Expected disposal period 12 months    
Total carrying value of assets held for sale $ 11,901,000    
Software and Web Site Development [Member]      
Property, Plant and Equipment [Line Items]      
Asset impairment     $ 500,000
v3.25.1
Leases - Additional Information (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Lessor and Lessee Lease Description [Line Items]      
Operating lease, option to extend, existence true    
Operating lease, option to terminate, existence true    
Variable lease cost $ 0.3 $ 0.7 $ 0.6
Future operating lease payments relating to extension of lease term $ 5.3    
Minimum [Member]      
Lessor and Lessee Lease Description [Line Items]      
Operating lease, remaining lease terms 1 month    
Operating lease, options to terminate term 3 months    
Maximum [Member]      
Lessor and Lessee Lease Description [Line Items]      
Operating lease, remaining lease terms 167 months    
Operating lease, renewal term 1 year    
Short-term lease cost $ 0.2 $ 0.1 $ 0.1
v3.25.1
Leases - Schedule of Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Assets    
Operating lease assets $ 30,342 $ 37,474
Operating lease, right-of-use asset, statement of financial position [extensible list] Other non-current assets Other non-current assets
Liabilities    
Current operating lease liability $ 7,154 $ 7,720
Operating lease, liability, current, statement of financial position [extensible list] Accrued expenses and other liabilities Accrued expenses and other liabilities
Non-current lease obligations $ 25,925 $ 31,420
Operating lease, liability, noncurrent, statement of financial position [extensible list] Non-current lease obligations Non-current lease obligations
Total lease liability $ 33,079 $ 39,140
v3.25.1
Leases - Components of Lease Expense included in Consolidated Statements of Loss (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Lessor Lease Description [Line Items]      
Total operating lease expense $ 9,775 $ 10,861 $ 5,013
Cost of Sales [Member]      
Lessor Lease Description [Line Items]      
Total operating lease expense 150 163 110
Research and Development Expenses [Member]      
Lessor Lease Description [Line Items]      
Total operating lease expense 412 990 942
Selling, General and Administrative Expenses [Member]      
Lessor Lease Description [Line Items]      
Total operating lease expense $ 9,213 $ 9,708 $ 3,961
v3.25.1
Leases - Schedule of Maturity of Operating Lease Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract]    
2025 $ 8,829  
2026 7,550  
2027 6,498  
2028 4,980  
2029 2,925  
Thereafter 10,281  
Total lease payments 41,063  
Less: Interest (7,984)  
Present value of lease liabilities $ 33,079 $ 39,140
v3.25.1
Leases - Schedule of Weighted Average Remaining Lease Terms and Weighted Average Discount Rates (Detail)
Dec. 31, 2024
Dec. 31, 2023
USD [Member]    
Weighted average remaining lease term (years)    
Operating leases with functional currency 7 years 3 months 18 days 8 years 1 month 6 days
Weighted average discount rate    
Operating leases with functional currency 3.64% 3.70%
Euro [Member]    
Weighted average remaining lease term (years)    
Operating leases with functional currency 5 years 10 months 24 days 5 years 9 months 18 days
Weighted average discount rate    
Operating leases with functional currency 4.50% 3.92%
v3.25.1
Goodwill - Summary of Changes in Carrying Amount of Goodwill (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Goodwill [Line Items]    
Goodwill, Beginning balance $ 358,150 $ 386,459
Goodwill impairment (295,298) (37,500)
Correction of goodwill from business combination with Adtran Networks   4,735
Foreign currency translation adjustments (9,934) 9,191
Goodwill, Ending balance 52,918 358,150
As Previously Reported [Member]    
Goodwill [Line Items]    
Goodwill, Beginning balance 353,415 381,724
Goodwill, Ending balance 52,918 353,415
Network Solutions [Member]    
Goodwill [Line Items]    
Goodwill, Beginning balance 301,766 303,015
Goodwill impairment (295,298)  
Correction of goodwill from business combination with Adtran Networks   4,735
Correction of a purchase allocation adjustment   (9,662)
Foreign currency translation adjustments (6,468) 8,413
Goodwill, Ending balance 0 301,766
Network Solutions [Member] | As Previously Reported [Member]    
Goodwill [Line Items]    
Goodwill, Beginning balance   298,280
Services & Support [Member]    
Goodwill [Line Items]    
Goodwill, Beginning balance 56,384 83,444
Goodwill impairment   (37,500)
Correction of a purchase allocation adjustment   9,662
Foreign currency translation adjustments (3,466) 778
Goodwill, Ending balance $ 52,918 56,384
Services & Support [Member] | As Previously Reported [Member]    
Goodwill [Line Items]    
Goodwill, Beginning balance   $ 83,444
v3.25.1
Goodwill - Additional Information (Detail) - USD ($)
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Oct. 01, 2024
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill [Line Items]                    
Impairment charges related to goodwill $ 0 $ 0 $ 0 $ 0 $ 297,353,000 $ 297,353,000 $ 297,353,000 $ 297,353,000 $ 37,874,000 $ 0
Goodwill impairment charges, other                 0  
Accumulated goodwill impairment losses   $ 335,300,000           $ 335,300,000    
Network Solutions [Member]                    
Goodwill [Line Items]                    
Impairment charges related to goodwill         297,400,000          
Services & Support [Member]                    
Goodwill [Line Items]                    
Impairment charges related to goodwill         $ 0       $ 37,900,000  
v3.25.1
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Finite Lived Intangible Assets [Line Items]    
Gross Value $ 486,238 $ 488,085
Accumulated Amortization (201,345) (150,662)
Net Value $ 284,893 337,423
Customer Relationships [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 11 years  
Gross Value $ 51,165 54,856
Accumulated Amortization (18,778) (15,943)
Net Value $ 32,387 38,913
Backlog [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 1 year 8 months 12 days  
Gross Value $ 53,839 57,391
Accumulated Amortization (52,258) (52,022)
Net Value $ 1,581 5,369
Developed Technology [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 7 years 10 months 24 days  
Gross Value $ 346,923 339,189
Accumulated Amortization (99,588) (61,653)
Net Value $ 247,335 277,536
Licensed Technology [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 9 years  
Gross Value $ 5,900 5,900
Accumulated Amortization (4,452) (3,797)
Net Value $ 1,448 2,103
Licensing Agreements [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 8 years 6 months  
Gross Value $ 560 560
Accumulated Amortization (407) (368)
Net Value $ 153 192
Patents [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 7 years 3 months 18 days  
Gross Value   500
Accumulated Amortization   (500)
Trade Names [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 3 years  
Gross Value $ 27,851 29,689
Accumulated Amortization (25,862) (16,379)
Net Value $ 1,989 $ 13,310
v3.25.1
Intangible Assets - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]      
Impairment losses of intangible assets $ 0 $ 0 $ 0
Amortization expense $ 63,000,000 $ 82,800,000 $ 47,300,000
v3.25.1
Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]    
2025 $ 56,268  
2026 53,231  
2027 47,585  
2028 40,374  
2029 40,028  
Thereafter 47,407  
Net Value $ 284,893 $ 337,423
v3.25.1
Hedging - Additional Information (Detail)
€ in Millions, $ in Millions
12 Months Ended
Dec. 31, 2024
EUR (€)
ForwardContracts
Dec. 31, 2024
USD ($)
ForwardContracts
Mar. 21, 2023
EUR (€)
Nov. 03, 2022
EUR (€)
Foreign Exchange Forward [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Number of forward rate contracts outstanding | ForwardContracts 39 39    
Cross-Currency Swap Arrangement [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Aggregate notional amount     € 160.0 € 160.0
Forward contract tranche settled on hedge € 20.0 $ 20.0    
Aggregate notional amount, daily fixed forward conversion rate     1.085  
Cross-Currency Swap Arrangement [Member] | Eight Quarterly Tranches [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Aggregate notional amount       € 20.0
Cross-Currency Swap Arrangement [Member] | Minimum [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Aggregate notional amount, daily fixed forward conversion rate       0.98286
Cross-Currency Swap Arrangement [Member] | Maximum [Member]        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Aggregate notional amount, daily fixed forward conversion rate       1.0329
v3.25.1
Hedging - Schedule of Fair Values of Derivative Instruments (Detail) - Derivatives Not Designated as Hedging Instruments [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Other income, net [Member]      
Derivative Instruments Not Designated as Hedging Instruments [Abstract]      
Foreign exchange contracts $ 2,197 $ 758 $ 10,793
Level 2 [Member]      
Derivative Instruments Not Designated as Hedging Instruments [Abstract]      
Total derivatives 565 4,848  
Level 2 [Member] | Other Receivables [Member]      
Derivative Instruments Not Designated as Hedging Instruments [Abstract]      
Foreign exchange contracts - derivative assets 565 7,125  
Level 2 [Member] | Accounts Payable [Member]      
Derivative Instruments Not Designated as Hedging Instruments [Abstract]      
Foreign exchange contracts - derivative liabilities $ 0 $ (2,277)  
v3.25.1
Credit Agreements - Carrying Amount of Revolving Agreements (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Line of Credit Facility [Line Items]    
Total non-current revolving credit facility $ 189,576 $ 195,000
Wells Fargo Credit Agreement [Member]    
Line of Credit Facility [Line Items]    
Total non-current revolving credit facility $ 189,576 $ 195,000
v3.25.1
Credit Agreements - Additional Information (Detail)
$ in Thousands
3 Months Ended 12 Months Ended
Jun. 30, 2025
USD ($)
Dec. 31, 2024
USD ($)
Jun. 04, 2024
USD ($)
Aug. 09, 2023
USD ($)
Jul. 18, 2022
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2024
USD ($)
Line Of Credit Facility [Line Items]              
Weighted average interest rate   8.64%       7.45% 8.64%
Revolving line of credit   $ 189,576       $ 195,000 $ 189,576
Debt instrument default interest rate percentage             2.00%
Daily Simple SOFR [Member]              
Line Of Credit Facility [Line Items]              
Applicable margin rate             3.15%
Credit facility, floor rate             0.00%
Base Rate [Member]              
Line Of Credit Facility [Line Items]              
Applicable margin rate             2.15%
EURIBOR [Member]              
Line Of Credit Facility [Line Items]              
Applicable margin rate   1.00%         3.25%
Credit facility, floor rate             0.00%
Maximum [Member] | Daily Simple SOFR [Member]              
Line Of Credit Facility [Line Items]              
Applicable margin rate             2.65%
Maximum [Member] | Base Rate [Member]              
Line Of Credit Facility [Line Items]              
Applicable margin rate             1.65%
Maximum [Member] | EURIBOR [Member]              
Line Of Credit Facility [Line Items]              
Applicable margin rate             2.75%
Minimum [Member] | Daily Simple SOFR [Member]              
Line Of Credit Facility [Line Items]              
Applicable margin rate             1.65%
Minimum [Member] | Base Rate [Member]              
Line Of Credit Facility [Line Items]              
Applicable margin rate             0.65%
Minimum [Member] | EURIBOR [Member]              
Line Of Credit Facility [Line Items]              
Applicable margin rate             1.75%
Wells Fargo Credit Agreement [Member]              
Line Of Credit Facility [Line Items]              
Secured revolving credit facility amount   $ 340,000         $ 340,000
Revolving line of credit   189,576       $ 195,000 $ 189,576
Commitment fee percentage             0.25%
Net leverage ratio             0.0325
Wells Fargo Credit Agreement [Member] | Daily Simple SOFR [Member]              
Line Of Credit Facility [Line Items]              
Applicable margin rate             0.10%
Wells Fargo Credit Agreement [Member] | Maximum [Member]              
Line Of Credit Facility [Line Items]              
Commitment fee percentage             0.25%
Net leverage ratio           0.05 0.05
Wells Fargo Credit Agreement [Member] | Minimum [Member]              
Line Of Credit Facility [Line Items]              
Commitment fee percentage             0.20%
Net leverage ratio             0.035
Fixed charge coverage ratio           0.0125 0.0125
Wells Fargo Credit Agreement [Member] | Federal Reserve Bank Advances [Member]              
Line Of Credit Facility [Line Items]              
Applicable margin rate             1.00%
Wells Fargo Credit Agreement [Member] | Federal Reserve Bank Advances [Member] | Daily Simple SOFR [Member]              
Line Of Credit Facility [Line Items]              
Applicable margin rate             1.00%
Wells Fargo Credit Agreement [Member] | Federal Reserve Bank Advances [Member] | Base Rate [Member]              
Line Of Credit Facility [Line Items]              
Applicable margin rate             1.00%
Wells Fargo Credit Agreement Amendment [Member]              
Line Of Credit Facility [Line Items]              
Secured revolving credit facility amount   50,000         $ 50,000
Aggregate principal amount       $ 172,500      
Wells Fargo Credit Agreement Amendment [Member] | Maximum [Member]              
Line Of Credit Facility [Line Items]              
Revolving line of credit   300,000         300,000
Wells Fargo Credit Agreement Amendment [Member] | Minimum [Member]              
Line Of Credit Facility [Line Items]              
Aggregate principal amount   75,000         75,000
Wells Fargo Credit Agreement Amendment [Member] | Delayed Draw Term Loan [Member]              
Line Of Credit Facility [Line Items]              
Revolving line of credit       $ 50,000      
Percentage available for borrowing       60.00%      
Acorn HoldCo, Inc., [Member] | Wells Fargo Credit Agreement [Member]              
Line Of Credit Facility [Line Items]              
Secured revolving credit facility amount   374,000   $ 400,000 $ 400,000   374,000
Revolving line of credit   189,600         189,600
Credit facility, average outstanding amount             3,600
Letters of credit may be utilize   50,000         50,000
Available for future borrowings   180,800         180,800
Credit agreement current borrowing capacity   6,100         6,100
Acorn HoldCo, Inc., [Member] | Wells Fargo Credit Agreement - Subline [Member]              
Line Of Credit Facility [Line Items]              
Threshold prepayments of outstanding loans german commitment reduction amount     $ 75,000        
Revolving line of credit   48,600         48,600
Credit facility, average outstanding amount   74,000 100,000 $ 100,000 $ 100,000   74,000
Reduction on the Subline   (26,000)          
Acorn HoldCo, Inc., [Member] | Wells Fargo Credit Agreement - US Borrower [Member]              
Line Of Credit Facility [Line Items]              
Revolving line of credit   $ 141,000         $ 141,000
Acorn HoldCo, Inc., [Member] | Wells Fargo Credit Agreement Amendment [Member]              
Line Of Credit Facility [Line Items]              
Secured revolving credit facility amount     $ 400,000        
Scenario Forecast [Member] | EURIBOR [Member]              
Line Of Credit Facility [Line Items]              
Applicable margin rate 1.00%            
Scenario Forecast [Member] | Wells Fargo Credit Agreement [Member]              
Line Of Credit Facility [Line Items]              
Secured revolving credit facility amount $ 300,000            
First Quarter Ending Springing Covenant Period [Member] | Wells Fargo Credit Agreement [Member]              
Line Of Credit Facility [Line Items]              
Net leverage ratio             0.04
First Quarter Ending Springing Covenant Period [Member] | Wells Fargo Credit Agreement [Member] | Maximum [Member]              
Line Of Credit Facility [Line Items]              
Net leverage ratio             0.04
Second Quarter Ending Springing Covenant Event [Member] | Wells Fargo Credit Agreement [Member]              
Line Of Credit Facility [Line Items]              
Net leverage ratio             0.0375
Third and Fourth Quarters Ending Springing Covenant Event [Member] | Wells Fargo Credit Agreement [Member]              
Line Of Credit Facility [Line Items]              
Net leverage ratio             0.035
Third and Fourth Quarters Ending Springing Covenant Event [Member] | Wells Fargo Credit Agreement [Member] | Minimum [Member]              
Line Of Credit Facility [Line Items]              
Net leverage ratio             0.035
v3.25.1
Credit Agreements - Additional Information (Detail1) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Line of Credit Facility [Line Items]    
Cash and cash equivalents $ 76,021 $ 87,167
Wells Fargo Credit Agreement Amendment [Member] | Credit Parties [Member]    
Line of Credit Facility [Line Items]    
Cash and cash equivalents 50,000 50,000
Wells Fargo Credit Agreement Amendment [Member] | Company and Subsidiaries [Member]    
Line of Credit Facility [Line Items]    
Cash and cash equivalents $ 70,000 $ 70,000
v3.25.1
Income Taxes - Summary of Components of Income Tax Expense (Benefit) (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current                  
Federal             $ (1,456) $ 2,545 $ 4,572
State             575 26 88
International             2,645 10,004 (4,347)
Total Current             1,764 12,575 313
Deferred                  
Federal             357 46,672 (47,429)
State             (405) 6,607 (6,776)
International             5,624 (37,555) (8,183)
Total Deferred       $ (19,738) $ (13,684) $ (13,399) 5,576 15,724 (62,388)
Total Income Tax Expense (Benefit) $ 23,461 $ 390 $ 2,136 $ (18,647) $ (16,511) $ (16,121) $ 7,340 $ 28,299 $ (62,075)
v3.25.1
Income Taxes - Effective Income Tax Rate Differs from Federal Statutory Rate (Detail)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2020
Income Tax Disclosure [Abstract]        
Tax provision computed at the federal statutory rate 21.00% 21.00% 21.00% 21.00%
State income tax provision, net of federal benefit 0.06% 1.33% 2.60%  
Federal research credits 0.66% 3.23% 6.74%  
Foreign taxes (0.02%) 3.20% 6.29%  
Tax-exempt income 0.04% 0.06% 0.21%  
Change in valuation allowance (6.48%) (34.83%) 63.92%  
Non-deductible transaction costs     (2.74%)  
Foreign tax credits 0.84% 2.42% (0.40%)  
Stock-based compensation (0.39%) (0.56%) (2.09%)  
Withholding taxes (0.08%) 0.01% 0.03%  
Adtran Networks tax exempt income   1.41%    
Return to accrual 0.59% 0.61% 0.24%  
Global intangible low-taxed income ("GILTI") (3.07%) (5.81%) (8.08%)  
Adtran Networks Goodwill Impairment (13.84%) (4.57%)    
Other, net (0.97%) 0.40% (0.24%)  
Effective Tax Rate (1.66%) (12.10%) 87.48%  
v3.25.1
Income Taxes - Loss Before Expense (Benefit) for Income Taxes (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]                  
U.S. entities             $ (71,684) $ (113,951) $ (33,720)
International entities             (371,043) (119,656) (37,243)
Loss Before Income Taxes $ (20,243) $ (30,576) $ (45,026) $ (346,882) $ (391,908) $ (422,484) $ (442,727) $ (233,607) $ (70,963)
v3.25.1
Income Taxes - Significant Components of Current and Non-current Deferred Taxes (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]    
Inventory $ 14,121 $ 19,623
Accrued expenses 845 3,533
Deferred compensation 7,093 6,284
Stock-based compensation 1,770 2,023
Uncertain tax positions related to state taxes and related interest 105 105
Goodwill 3,001 3,496
Pensions 5,121 8,607
Foreign losses 73,162 3,225
State losses and credit carry-forwards 4,901 4,259
Federal loss and research carry-forwards 20,874 78,450
Lease liabilities 6,153 7,701
Capitalized research and development expenditures 43,574 48,192
Interest expense limitation 6,815  
Valuation allowance (115,694) (86,567)
Net Deferred Tax Assets 71,841 98,931
Property, plant and equipment (8,368) (9,093)
Intellectual property (67,923) (86,572)
Right of use lease assets (6,175) (8,424)
Investments (1,921) (1,114)
Total Deferred Tax Liabilities (84,387) (105,203)
Net Deferred Tax Liabilities $ (12,546) $ (6,272)
v3.25.1
Income Taxes - Additional Information (Detail) - USD ($)
12 Months Ended
Aug. 16, 2022
Dec. 20, 2021
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2020
Dec. 31, 2021
Income Tax Disclosure [Line Items]              
Income tax benefit, result of CARES act of 2020           $ 10,800,000  
Valuation allowance established against deferred tax assets           7,900,000  
Tax rate differential on carrying back losses amount           $ 2,900,000  
US corporate tax rate           35.00%  
Federal tax rate     21.00% 21.00% 21.00% 21.00%  
Global minimum tax rate 15.00% 15.00%          
Period for global adjusted financial statement income 3 years            
Excise tax rate on share repurchases           1.00%  
Deferred tax asset, research and development credit carryforwards     $ 20,874,000 $ 78,450,000      
Deferred tax benefit recorded as an adjustment to other comprehensive (loss) income     200,000 300,000      
Deferred tax assets, gross     103,148,000 80,295,000      
Valuation allowance established against deferred tax assets     115,694,000 86,567,000      
Valuation allowance related to foreign tax assets     28,700,000        
Increase in valuation allowance     29,100,000        
Foreign and domestic loss carry-forwards, research and development tax credits, unamortized research and development cost and state credit carry-forwards     $ 142,500,000 135,600,000      
Operating loss carry forwards expiration year     2040        
Deferred tax assets     $ 71,841,000 98,931,000      
Cash and cash equivalents     76,021,000 87,167,000      
Withholding tax liabilities in jurisdiction     400,000 400,000      
Income tax benefit (expense) from stock options exercised adjustment to equity     0 0 $ 0    
Unrecognized tax benefits     252,000 989,000 17,885,000   $ 17,836,000
Unrecognized tax benefits, effective tax rate     300,000 1,000,000 17,900,000    
Accrued interest and penalties     0 100,000 $ 100,000    
As Previously Reported [Member]              
Income Tax Disclosure [Line Items]              
Cash and cash equivalents     77,567,000 87,167,000      
Foreign Subsidiaries [Member]              
Income Tax Disclosure [Line Items]              
Cash and cash equivalents     $ 52,600,000 $ 73,000,000      
Short-term liquidity, in percentage     78.00% 88.00%      
Operating Losses Expiration Between 2025 and 2045 [Member]              
Income Tax Disclosure [Line Items]              
Deferred tax assets     $ 27,700,000        
Minimum [Member]              
Income Tax Disclosure [Line Items]              
Average adjusted financial statement income $ 1,000,000,000            
Operating loss carry forwards expiration year     2025        
Maximum [Member]              
Income Tax Disclosure [Line Items]              
Operating loss carry forwards expiration year     2045        
Domestic [Member]              
Income Tax Disclosure [Line Items]              
Deferred tax assets, gross     $ 102,002,000 $ 100,700,000      
Valuation allowance established against deferred tax assets     87,030,000 84,767,000      
Current valuation allowance established against deferred tax assets     87,000,000        
Deferred tax assets     $ 14,972,000 $ 15,933,000      
v3.25.1
Income Taxes - Summary of Supplemental Balance Sheet Information Related to Deferred Tax Assets (Liabilities) (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Operating Loss Carryforwards [Line Items]    
Deferred Tax Assets $ 103,148 $ 80,295
Valuation allowance (115,694) (86,567)
Net Deferred Tax Assets 71,841 98,931
Deferred Tax Liabilities (84,387) (105,203)
Net Deferred Tax Liabilities (12,546) (6,272)
Domestic [Member]    
Operating Loss Carryforwards [Line Items]    
Deferred Tax Assets 102,002 100,700
Valuation allowance (87,030) (84,767)
Net Deferred Tax Assets 14,972 15,933
International [Member]    
Operating Loss Carryforwards [Line Items]    
Deferred Tax Assets 1,146  
Valuation allowance (28,664) (1,800)
Deferred Tax Liabilities   (20,405)
Net Deferred Tax Liabilities $ (27,518) $ (22,205)
v3.25.1
Income Taxes - Change in Unrecognized Income Tax Benefits (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Balance at beginning of period $ 989 $ 17,885 $ 17,836
Increases for tax position related to, Current year   129 123
Decreases for tax positions related to, Prior years (121) (17,025) (13)
Expiration of applicable statute of limitations (616)   (61)
Balance at end of period $ 252 $ 989 $ 17,885
v3.25.1
Employee Benefit Plans (Pension Benefit Plan) - Schedule of Pension Benefit Plan Obligations and Funded Status (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Change in projected benefit obligation:      
Projected benefit obligation at beginning of period $ 67,897 $ 59,344  
Service cost 1,664 1,579 $ 1,426
Interest cost 1,902 1,851 1,168
Actuarial (gain) loss - experience (238) 1,181  
Actuarial loss - assumptions 860 1,791  
Benefit payments (4,108) (1,966)  
Plan amendments (874) 966  
Participant contributions 429    
Effects of foreign currency exchange rate changes (4,273) 3,151  
Projected benefit obligation at end of period 63,259 67,897 59,344
Change in plan assets:      
Fair value of plan assets at beginning of period 55,218 48,720  
Actual gain on plan assets 3,966 3,125  
Contributions 1,288 1,215  
Benefit payments (2,244) (231)  
Effects of foreign currency exchange rate changes (3,738) 2,389  
Fair value of plan assets at end of period 54,490 55,218 $ 48,720
Unfunded status at end of period $ (8,769) $ (12,679)  
v3.25.1
Employee Benefit Plans (Pension Benefit Plan) - Additional Information (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]    
Accumulated benefit obligation $ 62.8 $ 67.1
Anticipated contributions to pension plans in 2024 $ 2.0  
Minimum [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Threshold for unamortized gain losses 10.00%  
v3.25.1
Employee Benefit Plans (Pension Benefit Plan) - Summary of Net Amounts Recognized in Consolidated Balance Sheets for the Unfunded Pension Liability (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]    
Non-current pension liability $ (8,983) $ (12,543)
Total (8,769) (12,679)
Other Non-Current Assets [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Non-current pension asset 517  
Accrued wages and benefits [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Current liability $ (303) $ (136)
v3.25.1
Employee Benefit Plans (Pension Benefit Plan) - Components of Net Periodic Pension Cost and Amounts Recognized Other Comprehensive (Loss) Income (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Net periodic benefit cost:      
Service cost $ 1,664 $ 1,579 $ 1,426
Interest cost $ 1,902 $ 1,851 $ 1,168
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] Other Nonoperating Income (Expense) Other Nonoperating Income (Expense) Other Nonoperating Income (Expense)
Expected return on plan assets $ (2,529) $ (1,750) $ (2,129)
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Other Nonoperating Income (Expense) Other Nonoperating Income (Expense) Other Nonoperating Income (Expense)
Amortization of actuarial losses $ 28 $ 26 $ 355
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Other Nonoperating Income (Expense) Other Nonoperating Income (Expense) Other Nonoperating Income (Expense)
Net periodic benefit cost $ 1,065 $ 1,706 $ 820
Other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income:      
Net actuarial (gain) loss (1,640) 2,304 (6,549)
Amortization of actuarial gains (losses) 233 (145) (113)
Amount recognized in other comprehensive (income) loss (1,407) 2,159 (6,662)
Total recognized in net periodic benefit cost and other comprehensive (income) loss $ (342) $ 3,865 $ (5,842)
v3.25.1
Employee Benefit Plans (Pension Benefit Plan) - Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Retirement Benefits [Abstract]    
Net actuarial loss $ (1,824) $ (3,231)
v3.25.1
Employee Benefit Plans (Pension Benefit Plan) - Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost (Detail)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Retirement Benefits [Abstract]      
Discount rate 2.84% 3.17% 3.24%
Rate of compensation increase 1.54% 2.22% 2.17%
Expected long-term rates of return 4.85% 4.83% 4.65%
v3.25.1
Employee Benefit Plans (Pension Benefit Plan) - Weighted-Average Assumptions Used to Determine Benefit Obligation (Detail)
Dec. 31, 2024
Dec. 31, 2023
Retirement Benefits [Abstract]    
Discount rate 2.73% 2.84%
Rate of compensation increase 1.54% 2.22%
v3.25.1
Employee Benefit Plans (Pension Benefit Plan) - Schedule of Pension Benefit Payments Expected Future Service (Detail)
$ in Thousands
Dec. 31, 2024
USD ($)
Retirement Benefits [Abstract]  
2025 $ 3,032
2026 3,214
2027 3,906
2028 3,346
2029 4,352
2030 - 2034 18,834
Total $ 36,684
v3.25.1
Employee Benefit Plans (Pension Benefit Plan) - Schedule of Cash Equivalents and Investments Held at Fair Value (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 54,490 $ 55,218 $ 48,720
Pension Benefit Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 54,490 55,218  
Pension Benefit Plan [Member] | Real Estate Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 6,897 6,144  
Pension Benefit Plan [Member] | Cash and Cash Equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 753 987  
Pension Benefit Plan [Member] | Available-For-Sale Securities [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 53,737 54,231  
Pension Benefit Plan [Member] | Bond Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 18,058 20,155  
Pension Benefit Plan [Member] | Equity Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 21,376 21,525  
Pension Benefit Plan [Member] | Other Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 7,406 6,054  
Pension Benefit Plan [Member] | Insurance contracts [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets   353  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 46,629 47,004  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Real Estate Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,737 546  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 753 987  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Available-For-Sale Securities [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 45,876 46,017  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Bond Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 16,867 18,840  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 21,183 21,288  
Pension Benefit Plan [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 6,089 5,343  
Pension Benefit Plan [Member] | Significant Other Observable Inputs (Level 2) [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 4,807 4,942  
Pension Benefit Plan [Member] | Significant Other Observable Inputs (Level 2) [Member] | Real Estate Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 2,106 2,326  
Pension Benefit Plan [Member] | Significant Other Observable Inputs (Level 2) [Member] | Available-For-Sale Securities [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 4,807 4,942  
Pension Benefit Plan [Member] | Significant Other Observable Inputs (Level 2) [Member] | Bond Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,191 1,315  
Pension Benefit Plan [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 193 237  
Pension Benefit Plan [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 1,317 711  
Pension Benefit Plan [Member] | Significant Other Observable Inputs (Level 2) [Member] | Insurance contracts [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets   353  
Pension Benefit Plan [Member] | Significant Unobservable Inputs (Level 3) [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 3,054 3,272  
Pension Benefit Plan [Member] | Significant Unobservable Inputs (Level 3) [Member] | Real Estate Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 3,054 3,272  
Pension Benefit Plan [Member] | Significant Unobservable Inputs (Level 3) [Member] | Available-For-Sale Securities [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 3,054 $ 3,272  
v3.25.1
Employee Benefit Plans (401(k) Savings Plans) - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Defined Contribution Plan Disclosure [Line Items]      
Criteria of employer to contribute in employee saving plan 100% of an employee’s first 3% of contributions and 50% of their next 2% of contributions    
Percentage of employer match to employee's contribution 100.00%    
Percentage of employer match to employee's contribution 50.00%    
Upper limit of employer match 4.00%    
Percentage of employee first contribution 3.00%    
Percentage of employee second contribution 2.00%    
Contribution expense and plan administration costs for savings plan $ 3,500,000 $ 4,200,000 $ 4,100,000
Adtran Networks [Member]      
Defined Contribution Plan Disclosure [Line Items]      
Criteria of employer to contribute in employee saving plan 25% of an employee's first 6% of contributions    
Percentage of employer match to employee's contribution 25.00%    
Upper limit of employer match 1.50%    
Percentage of employee first contribution 6.00%    
Vesting period 5 years    
Maximum statutory compensation amount $ 345,000    
Adtran Networks [Member] | Maximum [Member]      
Defined Contribution Plan Disclosure [Line Items]      
Percent of match 50.00%    
v3.25.1
Employee Benefit Plans (Deferred Compensation Plans) - Additional Information (Detail)
$ in Millions
12 Months Ended
Dec. 31, 2024
USD ($)
Compensation_Program
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items]      
Number of deferred compensation programs | Compensation_Program 2    
Maximum percentage of cash compensation allowed to be deferred under the deferred compensation plan 25.00%    
Criteria for benefit distribution six months after termination of employment in a single lump sum payment or annual installments paid over a three or ten-year term based on the participant’s election    
Benefit distribution, scheduled to be distributed term 6 months    
Deferred compensation income (expense) adjustments due to fair value of the trust assets $ 3.4 $ 3.0 $ 6.3
Treasury Stock Common Member      
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items]      
Common stock, value of shares held by trust $ 2.2 $ 2.2  
Minimum [Member]      
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items]      
Benefit distribution, paid over annual instalment term 3 years    
Maximum [Member]      
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items]      
Benefit distribution, paid over annual instalment term 10 years    
v3.25.1
Employee Benefit Plans (Deferred Compensation Plans) - Fair Value of Assets Held by Trust and Amounts Payable to Plan Participants (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Defined Benefit Plan Disclosure [Line Items]    
Long-term Investments $ 30,991 $ 26,838
Amounts Payable to Plan Participants Deferred Compensation Liability 33,203 29,039
Deferred Compensation Liability [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Amounts Payable to Plan Participants Deferred Compensation Liability 33,203 29,039
Long Term Investments [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Long-term Investments $ 30,991 $ 26,838
v3.25.1
Equity - Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax by Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance $ 605,257 $ 1,303,613
Other comprehensive (loss) income before reclassifications (36,275) 21,966
Amounts reclassified from accumulated other comprehensive (loss) income (1) (180)
Net current period other comprehensive income (loss) (36,276) 21,786
Less: Other comprehensive income attributable to non-controlling interest, net of tax   382
Ending Balance 126,951 605,257
ASU 2018-02 [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance 385 385
Ending Balance 385 385
Accumulated Other Comprehensive Income (Loss) [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance 47,530 26,126
Ending Balance 11,254 47,530
Unrealized Gains (Losses) on Available-for-Sale Securities [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance (382) (836)
Other comprehensive (loss) income before reclassifications (160) 734
Amounts reclassified from accumulated other comprehensive (loss) income 160 (280)
Net current period other comprehensive income (loss)   454
Ending Balance (382) (382)
Defined Benefit Plan Adjustments [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance (2,506) (1,016)
Other comprehensive (loss) income before reclassifications 1,640 (1,590)
Amounts reclassified from accumulated other comprehensive (loss) income (161) 100
Net current period other comprehensive income (loss) 1,479 (1,490)
Ending Balance (1,027) (2,506)
Foreign Currency Adjustments [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning Balance 50,033 27,593
Other comprehensive (loss) income before reclassifications (37,755) 22,822
Net current period other comprehensive income (loss) (37,755) 22,822
Less: Other comprehensive income attributable to non-controlling interest, net of tax   382
Ending Balance $ 12,278 $ 50,033
v3.25.1
Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Reclassification Adjustment Out of Accumulated Other Comprehensive Income (Loss) [Line Items]                  
Defined benefit plan adjustments - actuarial (loss) gain             $ 860 $ 1,791  
Loss Before Income Taxes $ (20,243) $ (30,576) $ (45,026) $ (346,882) $ (391,908) $ (422,484) (442,727) (233,607) $ (70,963)
Tax expense (23,461) (390) (2,136) 18,647 16,511 16,121 (7,340) (28,299) 62,075
Net Loss attributable to ADTRAN Holdings, Inc. $ (46,111) $ (33,348) $ (49,667) $ (330,765) $ (380,432) $ (413,780) (459,891) (268,852) (2,037)
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member]                  
Reclassification Adjustment Out of Accumulated Other Comprehensive Income (Loss) [Line Items]                  
Defined benefit plan adjustments - actuarial (loss) gain             (233) 145 113
Loss Before Income Taxes             (17) (233) (215)
Tax expense             16 53 50
Net Loss attributable to ADTRAN Holdings, Inc.             (1) (180) (165)
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] | Unrealized Gains (Loss) on Available-for-Sale Securities [Member]                  
Reclassification Adjustment Out of Accumulated Other Comprehensive Income (Loss) [Line Items]                  
Net realized gain (loss) on sales of securities             $ 216 $ (378) $ (328)
v3.25.1
Equity - Tax Effects Related to the Change in Each Component of Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Equity [Abstract]                  
Unrealized (losses) gains on available-for-sale securities, Before-Tax Amount             $ (216) $ 992 $ (55)
Unrealized (losses) gains on available-for-sale securities, Tax (Expense) Benefit             56 (258) 14
Unrealized (losses) gains on available-for-sale securities, Net-of-Tax Amount             (160) 734 (41)
Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss), Before-Tax Amount             216 (378) (328)
Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss), Tax (Expense) Benefit             (56) 98 85
Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss), Net-of-Tax Amount             160 (280) (243)
Defined benefit plan adjustments, Before-Tax Amount             1,640 (2,304) 6,549
Defined benefit plan adjustments, Tax (Expense) Benefit               714 (2,030)
Defined benefit plan adjustments, Net-of-Tax Amount             1,640 (1,590) 4,519
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net (loss) income, Before-Tax Amount             (233) 145 113
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net (loss) income, Tax (Expense) Benefit             72 (45) (35)
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net (loss) income, Net-of-Tax Amount             (161) 100 78
Foreign currency translation adjustment, Before-Tax Amount             (37,755) 22,822 53,396
Foreign currency translation adjustment, Net-of-Tax Amount $ (37,344) $ 18,802 $ (1,442) $ (17,773) $ (19,215) $ (411) (37,755) 22,822 53,396
Total Other Comprehensive Income (Loss), Before-Tax Amount             (36,348) 21,277 59,675
Total Other Comprehensive Income (Loss), Tax (Expense) Benefit             72 509 (1,966)
Other Comprehensive (Loss) Income, net of tax $ (35,907) $ 18,911 $ (1,449) $ (17,833) $ (19,282) $ (369) $ (36,276) $ 21,786 $ 57,709
v3.25.1
Redeemable Non-controlling Interest - Summary of Redeemable Non-controlling Interest Activity (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Redeemable Noncontrolling Interest [Line Items]    
Balance at beginning of period $ 443,327  
Reclassification of non-controlling interests   $ 443,757
Non-controlling interests in adtran holdings related to stock options exercised   1,175
Redemption of redeemable non-controlling interests (20,384) (1,657)
Net income attributable to redeemable non-controlling interests 9,824 10,092
Annual recurring compensation earned (9,824) (10,092)
Balance at end of period $ 422,943 443,327
Adtran Networks [Member]    
Redeemable Noncontrolling Interest [Line Items]    
Stock option exercises   $ 52
v3.25.1
Redeemable Non-controlling Interest - Additional Information (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Redeemable Noncontrolling Interest [Line Items]    
Accrued annual recurring compensation to redeemable non-controlling shareholders $ 9.8 $ 10.1
Annual recurring compensation paid to redeemable non-controlling shareholders   10.1
DPLTA [Member]    
Redeemable Noncontrolling Interest [Line Items]    
Accrued annual recurring compensation to redeemable non-controlling shareholders $ 9.8 $ 10.1
Adtran Networks [Member]    
Redeemable Noncontrolling Interest [Line Items]    
Equity ownership percentage 33.00% 34.70%
v3.25.1
Segment Information and Major Customers - Additional Information (Detail)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
USD ($)
Sep. 30, 2024
USD ($)
Jun. 30, 2024
USD ($)
Mar. 31, 2024
USD ($)
Jun. 30, 2024
USD ($)
Sep. 30, 2024
USD ($)
Dec. 31, 2024
USD ($)
Customer
Category
Segment
Dec. 31, 2023
USD ($)
Customer
Dec. 31, 2022
USD ($)
Customer
Segment Reporting Information [Line Items]                  
Number of reportable segments | Segment             2    
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration]             Chief Executive Officer [Member]    
Depreciation expense             $ 27,700 $ 30,200 $ 20,900
Number of categories | Category             3    
Number of single customer comprising more than 10% of sales | Customer             1 1 1
Property, plant and equipment, net $ 106,454           $ 106,454 $ 118,157  
Revenue 242,852 $ 227,704 $ 225,991 $ 226,173 $ 452,164 $ 679,868 922,720 1,149,100 $ 1,025,536
Network Solutions [Member]                  
Segment Reporting Information [Line Items]                  
Depreciation expense             6,100 6,500 3,200
Revenue 197,009 181,488 179,194 181,273 360,467 541,955 738,964 974,389 916,793
Services & Support [Member]                  
Segment Reporting Information [Line Items]                  
Depreciation expense             100 20 10
Revenue 45,843 $ 46,216 $ 46,797 $ 44,900 $ 91,697 $ 137,913 183,756 174,711 108,743
U.S. [Member]                  
Segment Reporting Information [Line Items]                  
Property, plant and equipment, net 46,300           46,300 55,100  
Revenue             398,170 460,985 517,433
Outside U.S. [Member]                  
Segment Reporting Information [Line Items]                  
Property, plant and equipment, net $ 60,200           60,200 63,100  
Customer 1 [Member]                  
Segment Reporting Information [Line Items]                  
Revenue             $ 111,800 $ 126,000 $ 106,300
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer 1 [Member]                  
Segment Reporting Information [Line Items]                  
Concentration risk, percentage             12.10% 10.40% 18.00%
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | The Five Largest Customers Other Than Those With More Than 10% Of Revenues and Excluding Distributors [Member]                  
Segment Reporting Information [Line Items]                  
Concentration risk, percentage             22.00% 28.00% 33.00%
v3.25.1
Segment Information and Major Customers - Revenue and Gross Profit of Reportable Segments (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]                  
Revenue $ 242,852 $ 227,704 $ 225,991 $ 226,173 $ 452,164 $ 679,868 $ 922,720 $ 1,149,100 $ 1,025,536
Cost of Revenue             598,556 817,973 698,284
Gross Profit 89,556 83,034 81,259 70,315 151,574 234,608 324,164 331,127 327,252
Network Solutions [Member]                  
Segment Reporting Information [Line Items]                  
Revenue 197,009 181,488 179,194 181,273 360,467 541,955 738,964 974,389 916,793
Cost of Revenue             525,817 748,831 647,105
Gross Profit             213,147 225,558 269,688
Services & Support [Member]                  
Segment Reporting Information [Line Items]                  
Revenue $ 45,843 $ 46,216 $ 46,797 $ 44,900 $ 91,697 $ 137,913 183,756 174,711 108,743
Cost of Revenue             72,739 69,142 51,179
Gross Profit             $ 111,017 $ 105,569 $ 57,564
v3.25.1
Segment Information and Major Customers - Disaggregation of Sales by Category (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation Of Revenue [Line Items]                  
Revenue $ 242,852 $ 227,704 $ 225,991 $ 226,173 $ 452,164 $ 679,868 $ 922,720 $ 1,149,100 $ 1,025,536
Network Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue 197,009 181,488 179,194 181,273 360,467 541,955 738,964 974,389 916,793
Services & Support [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue $ 45,843 $ 46,216 $ 46,797 $ 44,900 $ 91,697 $ 137,913 183,756 174,711 108,743
Access & Aggregation Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             291,006 358,418 374,002
Access & Aggregation Solutions [Member] | Network Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             232,934 304,074 326,934
Access & Aggregation Solutions [Member] | Services & Support [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             58,072 54,344 47,068
Subscriber Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             330,778 297,708 390,454
Subscriber Solutions [Member] | Network Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             295,541 263,192 364,238
Subscriber Solutions [Member] | Services & Support [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             35,237 34,516 26,216
Optical Networking Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             300,936 492,974 261,080
Optical Networking Solutions [Member] | Network Solutions [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             210,489 407,123 225,621
Optical Networking Solutions [Member] | Services & Support [Member]                  
Disaggregation Of Revenue [Line Items]                  
Revenue             $ 90,447 $ 85,851 $ 35,459
v3.25.1
Segment Information and Major Customers - Revenue Information by Geographic Area (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue from External Customer [Line Items]                  
Revenue $ 242,852 $ 227,704 $ 225,991 $ 226,173 $ 452,164 $ 679,868 $ 922,720 $ 1,149,100 $ 1,025,536
United States [Member]                  
Revenue from External Customer [Line Items]                  
Revenue             398,170 460,985 517,433
United Kingdom [Member]                  
Revenue from External Customer [Line Items]                  
Revenue             196,064 214,655 189,685
Germany [Member]                  
Revenue from External Customer [Line Items]                  
Revenue             119,976 230,922 146,797
Other International [Member]                  
Revenue from External Customer [Line Items]                  
Revenue             $ 208,510 $ 242,538 $ 171,621
v3.25.1
Liability for Warranty Returns - Additional Information (Detail) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Product Warranties Disclosures [Abstract]        
Liability for warranty obligations $ 4,512 $ 6,445 $ 7,196 $ 5,403
v3.25.1
Liability for Warranty Returns - Summary of Warranty Expense and Write-off Activity (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Product Warranties Disclosures [Abstract]      
Balance at beginning of period $ 6,445 $ 7,196 $ 5,403
Plus: Adtran Networks acquisition     3,756
Plus: Amounts charged to cost and expenses 1,772 2,952 3,104
Plus: Foreign currency translation adjustments (119) 82 334
Less: Deductions (3,586) (3,784) (5,401)
Balance at end of period $ 4,512 $ 6,445 $ 7,196
v3.25.1
Commitments and Contingencies - Additional Information (Detail)
€ / shares in Units, shares in Thousands, € in Millions, $ in Millions
12 Months Ended
Dec. 31, 2024
EUR (€)
€ / shares
shares
Dec. 31, 2024
USD ($)
shares
Dec. 31, 2023
EUR (€)
shares
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]          
Cash compensation per share | € / shares € 17.21        
Recurring cash compensation per share | € / shares € 0.52        
Percentage of guaranteed interest rate 5.00%       5.00%
Percentage of guaranteed interest rate plus a variable component 3.37%       3.37%
Aggregate exit compensation payments obligation including guaranteed interest € 333.2       $ 344.9
Expire date of exit compensation Mar. 16, 2023 Mar. 16, 2023      
Annual recurring compensation obligation € 8.9 $ 9.3      
Accrued annual recurring compensation obligation   $ 9.8   $ 10.1  
Number of shares tendered | shares 831 831 67 67  
Exit compensation payments € 15.7 $ 17.4 € 1.2 $ 1.3  
Commitments related to performance bonds       $ 10.8 15.7
Commitments related to performance bonds expiration month and year 2029-04 2029-04      
Purchase obligations         $ 202.5
v3.25.1
Loss per Share - Summary of Calculations of Basic and Diluted Loss Per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Numerator                  
Net Loss attributable to ADTRAN Holdings, Inc. $ (46,111) $ (33,348) $ (49,667) $ (330,765) $ (380,432) $ (413,780) $ (459,891) $ (268,852) $ (2,037)
Effect of redemption of RNCI             2,981    
Net loss attributable to ADTRAN Holdings, Inc. common stockholders             $ (456,910) $ (268,852) $ (2,037)
Denominator                  
Weighted average number of shares – basic 79,091 78,952 78,852 78,814 78,803 78,873 78,928 78,416 62,346
Effect of dilutive securities:                  
Weighted average number of shares – diluted 79,091 78,952 78,852 78,814 78,803 78,873 78,928 78,416 62,346
Loss per share attributable to ADTRAN Holdings, Inc. - basic $ (0.58) $ (0.38) $ (0.63) $ (4.2) $ (4.83) $ (5.21) $ (5.79) [1] $ (3.43) $ (0.03)
Loss per share attributable to ADTRAN Holdings, Inc. - diluted $ (0.58) $ (0.38) $ (0.63) $ (4.2) $ (4.83) $ (5.21) $ (5.79) [1] $ (3.43) $ (0.03)
[1] Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $3.0 million effect of redemption of RNCI for the year ended December 31, 2024. See Note 19 for additional information.
v3.25.1
Loss per Share - Additional Information (Detail) - shares
shares in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Anti-dilutive effect excluded calculation of diluted earnings per share 3.4 1.8 0.2
Unvested Stock Options, PSUs, RSUs and Restricted Stock [Member]      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Anti-dilutive effect excluded calculation of diluted earnings per share   0.5 0.1
Unvested Stock Options, PSUs, RSUs and Restricted Stock [Member] | Maximum [Member]      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Anti-dilutive effect excluded calculation of diluted earnings per share 0.8    
v3.25.1
Restructuring - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Oct. 25, 2023
Restructuring Cost and Reserve [Line Items]              
Restructuring Costs       $ 44,700 $ 25,100    
Inventory write down $ 3,992 $ 4,135 $ 4,135 $ 4,135 24,313    
Reduction of workforce and hiring freeze             5.00%
Multi-Year Integration Program and Synergy Realization [Member]              
Restructuring Cost and Reserve [Line Items]              
Restructuring costs related to Business Combination         21,500 $ 1,600  
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration]       Cost of Goods and Services Sold, Research and Development Expense, Selling, General and Administrative Expense      
Business Efficiency Program [Member]              
Restructuring Cost and Reserve [Line Items]              
Strategy shift charges       $ 8,600      
Inventory write down       4,100 $ 24,300    
Other charges       $ 4,500      
v3.25.1
Restructuring - Schedule of Reconciliation of Restructuring Liability (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Restructuring and Related Activities [Abstract]    
Balance at beginning of period $ 8,309 $ 159
Plus: Amounts charged to cost and expense 40,545 22,241
Less: Amounts paid (38,518) (14,091)
Balance at end of period $ 10,336 $ 8,309
v3.25.1
Restructuring - Schedule of Components of Restructuring Expenses Included in Consolidated Statements of Loss (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses $ 44,680 $ 46,554 $ 1,629
Selling, General and Administrative Expenses [Member]      
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses 9,128 11,603 117
Research and Development Expenses [Member]      
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses 20,973 7,728 1,504
Cost of Sales [Member]      
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses 14,579 27,223 8
Cost of Sales [Member] | Network Solutions [Member]      
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses 3,693 2,910 $ 8
Cost of Sales [Member] | Services & Support [Member]      
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses 2,289    
Inventory Write Down [Member] | Network Solutions [Member]      
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses $ 8,597 $ 24,313  
v3.25.1
Restructuring - Schedule of Components of Restructuring Expense by Geographic Area (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses $ 44,680 $ 46,554 $ 1,629
United States [Member]      
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses 18,422 34,629 2
International [Member]      
Restructuring Cost And Reserve [Line Items]      
Total restructuring expenses $ 26,258 $ 11,925 $ 1,627
v3.25.1
Current Expected Credit Losses - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable Allowance For Credit Losses [Line Items]    
Accounts receivable $ 178,030,000 $ 209,737,000
Allowance for credit losses, accounts receivable 1,300,000 400,000
Outstanding contract asset [1] 631,000 691,000
Allowance for credit losses related to contract assets $ 0 $ 0
[1] Included in other receivables on the Consolidated Balance Sheets.
v3.25.1
Restatement of Quarterly Financial Information (Unaudited) - Schedule of Restatement of Condensed Consolidated Statement of Loss and Condensed Consolidated Statement of Comprehensive Loss (Detail) - USD ($)
$ / shares in Units, shares in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Oct. 01, 2024
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue                          
Total Revenue   $ 242,852,000 $ 227,704,000 $ 225,991,000 $ 226,173,000       $ 452,164,000 $ 679,868,000 $ 922,720,000 $ 1,149,100,000 $ 1,025,536,000
Cost of Revenue                          
Total Cost of Revenue   153,296,000 144,670,000 144,732,000 155,858,000       300,590,000 445,260,000 598,556,000 817,973,000 698,284,000
Gross Profit   89,556,000 83,034,000 81,259,000 70,315,000       151,574,000 234,608,000 324,164,000 331,127,000 327,252,000
Selling, general and administrative expenses   57,013,000 57,550,000 59,364,000 58,991,000       118,355,000 175,905,000 232,918,000 258,610,000 208,889,000
Research and development expenses   49,314,000 51,577,000 60,352,000 60,215,000       120,567,000 172,144,000 221,458,000 258,311,000 173,757,000
Goodwill impairment $ 0 0 0 0 297,353,000       297,353,000 297,353,000 297,353,000 37,874,000 0
Operating Loss   (16,771,000) (26,093,000) (38,457,000) (346,244,000)       (384,701,000) (410,794,000) (427,565,000) (223,668,000) (72,827,000)
Interest and dividend income   1,631,000 664,000 366,000 397,000       763,000 1,427,000 3,058,000 2,340,000 2,123,000
Interest expense   (4,870,000) (5,679,000) (6,906,000) (4,598,000)       (11,504,000) (17,183,000) (22,053,000) (16,299,000) (3,437,000)
Net investment gain (loss)   (920,000) 1,382,000 872,000 2,253,000       3,125,000 4,507,000 3,587,000 2,754,000 (11,339,000)
Other income (expense), net   687,000 (850,000) (901,000) 1,310,000       409,000 (441,000) 246,000 1,266,000 14,517,000
Loss Before Income Taxes   (20,243,000) (30,576,000) (45,026,000) (346,882,000)       (391,908,000) (422,484,000) (442,727,000) (233,607,000) (70,963,000)
Income tax (expense) benefit   (23,461,000) (390,000) (2,136,000) 18,647,000       16,511,000 16,121,000 (7,340,000) (28,299,000) 62,075,000
Net Loss   (43,704,000) (30,966,000) (47,162,000) (328,235,000) $ (800,000) $ (100,000) $ (0) (375,397,000) (406,363,000) (450,067,000) (261,906,000) (8,888,000)
Less: Net Income (Loss) attributable to non-controlling interest   2,407,000 2,382,000 2,505,000 2,530,000       5,035,000 7,417,000 9,824,000 [1],[2] 6,946,000 [1],[3] (6,851,000) [1]
Net Loss attributable to ADTRAN Holdings, Inc.   $ (46,111,000) $ (33,348,000) $ (49,667,000) $ (330,765,000)       $ (380,432,000) $ (413,780,000) $ (459,891,000) $ (268,852,000) $ (2,037,000)
Weighted average shares outstanding – basic   79,091 78,952 78,852 78,814       78,803 78,873 78,928 78,416 62,346
Weighted average shares outstanding – diluted   79,091 78,952 78,852 78,814       78,803 78,873 78,928 78,416 62,346
Loss per common share attributable to ADTRAN Holdings, Inc. - basic   $ (0.58) $ (0.38) $ (0.63) $ (4.2)       $ (4.83) $ (5.21) $ (5.79) [4] $ (3.43) $ (0.03)
Loss per common share attributable to ADTRAN Holdings, Inc. - diluted   $ (0.58) $ (0.38) $ (0.63) $ (4.2)       $ (4.83) $ (5.21) $ (5.79) [4] $ (3.43) $ (0.03)
Net Loss   $ (43,704,000) $ (30,966,000) $ (47,162,000) $ (328,235,000) $ (800,000) $ (100,000) $ (0) $ (375,397,000) $ (406,363,000) $ (450,067,000) $ (261,906,000) $ (8,888,000)
Other Comprehensive (Loss) Income, net of tax                          
Net unrealized gain on available-for-sale securities         0             454,000 (284,000)
Defined benefit plan adjustments   1,437,000 109,000 (7,000) (60,000)       (67,000) 42,000 1,479,000 (1,490,000) 4,597,000
Foreign currency translation (loss) gain   (37,344,000) 18,802,000 (1,442,000) (17,773,000)       (19,215,000) (411,000) (37,755,000) 22,822,000 53,396,000
Other Comprehensive (Loss) Income, net of tax   (35,907,000) 18,911,000 (1,449,000) (17,833,000)       (19,282,000) (369,000) (36,276,000) 21,786,000 57,709,000
Comprehensive Loss, net of tax   (79,611,000) (12,055,000) (48,611,000) (346,068,000)       (394,679,000) (406,732,000) (486,343,000) (240,120,000) 48,821,000
Less: Comprehensive Income attributable to non-controlling interest, net of tax   2,407,000 2,382,000 2,504,000 2,531,000       5,035,000 7,417,000 9,824,000 7,328,000 12,818,000
Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax   (82,018,000) (14,437,000) (51,115,000) (348,599,000)       (399,714,000) (414,149,000) (496,167,000) (247,448,000) 36,003,000
Network Solutions [Member]                          
Revenue                          
Total Revenue   197,009,000 181,488,000 179,194,000 181,273,000       360,467,000 541,955,000 738,964,000 974,389,000 916,793,000
Cost of Revenue                          
Total Cost of Revenue   135,861,000 128,320,000 124,773,000 128,266,000       253,039,000 381,359,000 517,220,000 724,518,000 647,105,000
Gross Profit                     213,147,000 225,558,000 269,688,000
Goodwill impairment         297,400,000                
Network Solutions - Inventory Write-Down and Other Changes [Member]                          
Cost of Revenue                          
Total Cost of Revenue         8,782,000           8,597,000 24,313,000 0
Network Solutions - Inventory Write Down [Member]                          
Cost of Revenue                          
Total Cost of Revenue   0 (328,000) 143,000         8,925,000 8,597,000   24,313,000  
Services & Support [Member]                          
Revenue                          
Total Revenue   45,843,000 46,216,000 46,797,000 44,900,000       91,697,000 137,913,000 183,756,000 174,711,000 108,743,000
Cost of Revenue                          
Total Cost of Revenue   17,435,000 16,678,000 19,816,000 18,810,000       38,626,000 55,304,000 72,739,000 69,142,000 51,179,000
Gross Profit                     111,017,000 105,569,000 $ 57,564,000
Goodwill impairment         0             37,900,000  
As Reported [Member]                          
Revenue                          
Total Revenue   242,852,000 227,704,000 225,991,000 226,173,000       452,164,000 679,868,000 922,720,000 1,149,100,000  
Cost of Revenue                          
Total Cost of Revenue   151,619,000 142,453,000 144,416,000 153,918,000       298,334,000 440,787,000 592,406,000 816,037,000  
Gross Profit   91,233,000 85,251,000 81,575,000 72,255,000       153,830,000 239,081,000 330,314,000 333,063,000  
Selling, general and administrative expenses   57,155,000 57,621,000 59,493,000 59,100,000       118,593,000 176,214,000 233,369,000 258,149,000  
Research and development expenses   49,210,000 51,614,000 60,388,000 60,251,000       120,639,000 172,253,000 221,463,000 258,311,000  
Goodwill impairment   0 0 0 292,583,000       292,583,000 292,583,000 292,583,000 37,874,000  
Operating Loss   (15,132,000) (23,984,000) (38,306,000) (339,679,000)       (377,985,000) (401,969,000) (417,101,000) (221,271,000)  
Interest and dividend income   1,631,000 664,000 366,000 397,000       763,000 1,427,000 3,058,000 2,340,000  
Interest expense   (4,870,000) (5,679,000) (6,906,000) (4,598,000)       (11,504,000) (17,183,000) (22,053,000) (16,299,000)  
Net investment gain (loss)   (920,000) 1,382,000 872,000 2,253,000       3,125,000 4,507,000 3,587,000 2,754,000  
Other income (expense), net   687,000 (850,000) (901,000) 1,310,000       409,000 (441,000) 246,000 1,266,000  
Loss Before Income Taxes   (18,604,000) (28,467,000) (44,875,000) (340,317,000)       (385,192,000) (413,659,000) (432,263,000) (231,210,000)  
Income tax (expense) benefit   (24,906,000) (390,000) (2,136,000) 18,647,000       16,511,000 16,121,000 (8,785,000) (28,133,000)  
Net Loss   (43,510,000) (28,857,000) (47,011,000) (321,670,000)       (368,681,000) (397,538,000) (441,048,000) (259,343,000)  
Less: Net Income (Loss) attributable to non-controlling interest   2,407,000 2,382,000 2,854,000 2,880,000       5,734,000 7,417,000 9,824,000 [2] 8,345,000 [3]  
Net Loss attributable to ADTRAN Holdings, Inc.   $ (45,917,000) $ (31,239,000) $ (49,865,000) $ (324,550,000)       $ (374,415,000) $ (404,955,000) $ (450,872,000) $ (267,688,000)  
Weighted average shares outstanding – basic   79,091 78,952 78,852 78,814       78,803 78,873 78,928 78,416  
Weighted average shares outstanding – diluted   79,091 78,952 78,852 78,814       78,803 78,873 78,928 78,416  
Loss per common share attributable to ADTRAN Holdings, Inc. - basic   $ (0.58) $ (0.36) $ (0.63) $ (4.12)       $ (4.75) $ (5.1) $ (5.67) $ (3.41)  
Loss per common share attributable to ADTRAN Holdings, Inc. - diluted   $ (0.58) $ (0.36) $ (0.63) $ (4.12)       $ (4.75) $ (5.1) $ (5.67) $ (3.41)  
Net Loss   $ (43,510,000) $ (28,857,000) $ (47,011,000) $ (321,670,000)       $ (368,681,000) $ (397,538,000) $ (441,048,000) $ (259,343,000)  
Other Comprehensive (Loss) Income, net of tax                          
Net unrealized gain on available-for-sale securities         0             454,000  
Defined benefit plan adjustments   1,437,000 109,000 (7,000) (60,000)       (67,000) 42,000 1,479,000 (1,490,000)  
Foreign currency translation (loss) gain   (37,917,000) 18,988,000 (1,375,000) (17,745,000)       (19,120,000) (130,000) (38,047,000) 22,753,000  
Other Comprehensive (Loss) Income, net of tax   (36,480,000) 19,097,000 (1,382,000) (17,805,000)       (19,187,000) (88,000) (36,568,000) 21,717,000  
Comprehensive Loss, net of tax   (79,990,000) (9,760,000) (48,393,000) (339,475,000)       (387,868,000) (397,626,000) (477,616,000) (237,626,000)  
Less: Comprehensive Income attributable to non-controlling interest, net of tax   2,407,000 2,382,000 2,854,000 2,880,000       5,734,000 7,417,000 9,824,000 8,727,000  
Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax   (82,397,000) (12,142,000) (51,247,000) (342,355,000)       (393,602,000) (405,043,000) (487,440,000) (246,353,000)  
As Reported [Member] | Network Solutions [Member]                          
Revenue                          
Total Revenue   197,009,000 181,488,000 179,194,000 181,273,000       360,467,000 541,955,000 738,964,000 974,389,000  
Cost of Revenue                          
Total Cost of Revenue   134,184,000 126,103,000 124,457,000 126,326,000       250,783,000 376,886,000 511,070,000 722,582,000  
As Reported [Member] | Network Solutions - Inventory Write-Down and Other Changes [Member]                          
Cost of Revenue                          
Total Cost of Revenue         8,782,000                
As Reported [Member] | Network Solutions - Inventory Write Down [Member]                          
Cost of Revenue                          
Total Cost of Revenue   0 (328,000) 143,000         8,925,000 8,597,000   24,313,000  
As Reported [Member] | Services & Support [Member]                          
Revenue                          
Total Revenue   45,843,000 46,216,000 46,797,000 44,900,000       91,697,000 137,913,000 183,756,000 174,711,000  
Cost of Revenue                          
Total Cost of Revenue   17,435,000 16,678,000 19,816,000 18,810,000       38,626,000 55,304,000 72,739,000 69,142,000  
Adjustment [Member]                          
Revenue                          
Total Revenue   0 0 0 0       0 0      
Cost of Revenue                          
Total Cost of Revenue   1,677,000 2,217,000 316,000 1,940,000       2,256,000 4,473,000 6,150,000 1,936,000  
Gross Profit   (1,677,000) (2,217,000) (316,000) (1,940,000)       (2,256,000) (4,473,000) (6,150,000) (1,936,000)  
Selling, general and administrative expenses   (142,000) (71,000) (129,000) (109,000)       (238,000) (309,000) (451,000) 461,000  
Research and development expenses   104,000 (37,000) (36,000) (36,000)       (72,000) (109,000) (5,000)    
Goodwill impairment   0 0 0 4,770,000       4,770,000 4,770,000 4,770,000    
Operating Loss   (1,639,000) (2,109,000) (151,000) (6,565,000)       (6,716,000) (8,825,000) (10,464,000) (2,397,000)  
Interest and dividend income   0 0 0 0       0 0      
Interest expense   0 0 0 0       0 0      
Net investment gain (loss)   0 0 0 0       0 0      
Other income (expense), net   0 0 0 0       0 0      
Loss Before Income Taxes   (1,639,000) (2,109,000) (151,000) (6,565,000)       (6,716,000) (8,825,000) (10,464,000) (2,397,000)  
Income tax (expense) benefit   1,445,000     0           1,445,000 (166,000)  
Net Loss   (194,000) (2,109,000) (151,000) (6,565,000)       (6,716,000) (8,825,000) (9,019,000) (2,563,000)  
Less: Net Income (Loss) attributable to non-controlling interest   0 0 (349,000) (350,000)       (699,000)     (1,399,000) [3]  
Net Loss attributable to ADTRAN Holdings, Inc.   $ (194,000) $ (2,109,000) $ 198,000 $ (6,215,000)       $ (6,017,000) $ (8,825,000) $ (9,019,000) $ (1,164,000)  
Weighted average shares outstanding – basic   79,091 78,952 78,852 78,814       78,803 78,873 78,928 78,416  
Weighted average shares outstanding – diluted   79,091 78,952 78,852 78,814       78,803 78,873 78,928 78,416  
Loss per common share attributable to ADTRAN Holdings, Inc. - basic   $ (0) $ (0.02) $ 0 $ (0.08)       $ (0.08) $ (0.11) $ (0.12) $ (0.01)  
Loss per common share attributable to ADTRAN Holdings, Inc. - diluted   $ (0) $ (0.02) $ 0 $ (0.08)       $ (0.08) $ (0.11) $ (0.12) $ (0.01)  
Net Loss   $ (194,000) $ (2,109,000) $ (151,000) $ (6,565,000)       $ (6,716,000) $ (8,825,000) $ (9,019,000) $ (2,563,000)  
Other Comprehensive (Loss) Income, net of tax                          
Net unrealized gain on available-for-sale securities         0                
Defined benefit plan adjustments   0     0                
Foreign currency translation (loss) gain   573,000 (186,000) (67,000) (28,000)       (95,000) (281,000) 292,000 69,000  
Other Comprehensive (Loss) Income, net of tax   573,000 (186,000) (67,000) (28,000)       (95,000) (281,000) 292,000 69,000  
Comprehensive Loss, net of tax   379,000 (2,295,000) (218,000) (6,593,000)       (6,811,000) (9,106,000) (8,727,000) (2,494,000)  
Less: Comprehensive Income attributable to non-controlling interest, net of tax   0 0 (350,000) (349,000)       (699,000)     (1,399,000)  
Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax   379,000 (2,295,000) 132,000 (6,244,000)       (6,112,000) (9,106,000) (8,727,000) (1,095,000)  
Adjustment [Member] | Network Solutions [Member]                          
Revenue                          
Total Revenue   0 0 0 0       0 0      
Cost of Revenue                          
Total Cost of Revenue   1,677,000 2,217,000 316,000 1,940,000       2,256,000 4,473,000 $ 6,150,000 $ 1,936,000  
Adjustment [Member] | Network Solutions - Inventory Write-Down and Other Changes [Member]                          
Cost of Revenue                          
Total Cost of Revenue         0                
Adjustment [Member] | Network Solutions - Inventory Write Down [Member]                          
Cost of Revenue                          
Total Cost of Revenue   0 0 0         0 0      
Adjustment [Member] | Services & Support [Member]                          
Revenue                          
Total Revenue   0 0 0 0       0 0      
Cost of Revenue                          
Total Cost of Revenue   $ 0 $ 0 $ 0 $ 0       $ 0 $ 0      
[1] For the year ended December 31, 2024 we accrued $9.8 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA. For the year ended December 31, 2023, we accrued $10.1 million, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA, partially offset by a $3.2 million net loss attributable to non-controlling interests pre-DPLTA.12-24
[2] For the year ended December 31, 2024 we accrued $9.8 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA
[3] For the year ended December 31, 2023, we have recognized $10.1 million, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA partially offset by a $3.2 million net loss attributable to non-controlling interests pre-DPLTA for the year ended December 31, 2023.
[4] Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $3.0 million effect of redemption of RNCI for the year ended December 31, 2024. See Note 19 for additional information.
v3.25.1
Restatement of Quarterly Financial Information (Unaudited) - Schedule of Restatement of Condensed Consolidated Statement of Loss and Condensed Consolidated Statement of Comprehensive Loss (Parenthetical) (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
[1],[2]
Dec. 31, 2023
Dec. 31, 2022
[1]
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Net Income (Loss) attributable to non-controlling interest $ 2,407 $ 2,382 $ 2,505 $ 2,530 $ 5,035 $ 7,417 $ 9,824 $ 6,946 [1],[3] $ (6,851)
Pre-DPLTA [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Net Income (Loss) attributable to non-controlling interest               $ 3,200  
Post-DPLTA [Member]                  
Error Corrections and Prior Period Adjustments Restatement [Line Items]                  
Net Income (Loss) attributable to non-controlling interest $ 2,400 $ 3,100 $ 2,500 $ 2,500 $ 5,000 $ 7,400      
[1] For the year ended December 31, 2024 we accrued $9.8 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA. For the year ended December 31, 2023, we accrued $10.1 million, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA, partially offset by a $3.2 million net loss attributable to non-controlling interests pre-DPLTA.12-24
[2] For the year ended December 31, 2024 we accrued $9.8 million of net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA
[3] For the year ended December 31, 2023, we have recognized $10.1 million, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA partially offset by a $3.2 million net loss attributable to non-controlling interests pre-DPLTA for the year ended December 31, 2023.
v3.25.1
Restatement of Quarterly Financial Information (Unaudited) - Schedule of Restatement of Condensed Consolidated Statements of Cash Flows (Detail) - USD ($)
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Oct. 01, 2024
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:                          
Net Loss   $ (43,704,000) $ (30,966,000) $ (47,162,000) $ (328,235,000) $ (800,000) $ (100,000) $ (0) $ (375,397,000) $ (406,363,000) $ (450,067,000) $ (261,906,000) $ (8,888,000)
Adjustments to reconcile net loss to net cash provided by operating activities:                          
Depreciation and amortization         22,390,000       44,843,000 67,894,000 90,529,000 112,949,000 67,553,000
Asset impairment                     0 0 17,433,000
Goodwill impairment $ 0 0 0 0 297,353,000       297,353,000 297,353,000 297,353,000 37,874,000 0
Amortization of debt issuance cost         1,013,000       1,013,000 1,013,000 3,950,000 862,000 288,000
(Accretion) amortization on available-for-sale investments, net                       (22,000) 19,000
(Gain) loss on investments         (2,621,000)       (2,867,000) (4,238,000) (5,030,000) (2,900,000) 9,826,000
Net loss on disposal of property, plant and equipment         150,000       185,000 203,000 1,371,000 458,000 152,000
Stock-based compensation expense         3,954,000       7,787,000 11,482,000 15,988,000 16,381,000 28,322,000
Deferred income taxes         (19,738,000)       (13,684,000) (13,399,000) 5,576,000 15,724,000 (62,388,000)
Other, net         545,000       (126,000) (267,000)   (2,942,000)  
Inventory write down - business efficiency program         3,992,000       4,135,000 4,135,000 4,135,000 24,313,000  
Inventory reserves         1,837,000       3,722,000 6,667,000 5,316,000 25,546,000 (2,363,000)
Change in operating assets and liabilities:                          
Accounts receivable, net         22,504,000       23,415,000 59,446,000 46,108,000 72,320,000 788,000
Other receivables         5,605,000       6,279,000 4,875,000 10,713,000 10,315,000 (20,088,000)
Income taxes receivable, net         (3,439,000)       (918,000) (947,000) 648,000 2,098,000  
Inventory         32,366,000       64,407,000 73,887,000 79,985,000 22,408,000 (73,237,000)
Prepaid expenses, other current assets and other assets         (19,290,000)       (18,139,000) (22,164,000) (13,445,000) (31,964,000) (7,116,000)
Accounts payable         553,000       (3,966,000) 9,697,000 10,238,000 (91,907,000) 28,105,000
Accrued expenses and other liabilities         10,953,000       22,645,000 15,034,000 4,873,000 11,317,000 (20,483,000)
Income taxes payable, net         1,155,000       (2,878,000) (3,175,000) (4,670,000) (3,939,000) (2,151,000)
Net cash provided by (used in) operating activities         37,925,000       57,809,000 101,133,000 103,571,000 (43,015,000) (44,228,000)
Cash flows from investing activities:                          
Purchases of property, plant and equipment         (13,510,000)       (24,971,000) (31,168,000) (34,501,000) (36,337,000) (17,072,000)
Purchases of intangibles - developed technology         (1,191,000)       (5,725,000) (19,669,000) (30,671,000) (9,438,000)  
Proceeds from sales and maturities of available-for-sale investments         873,000       956,000 1,195,000 1,240,000 10,567,000 51,661,000
Purchases of available-for-sale investments         (44,000)       (121,000) (195,000) (268,000) (868,000) (23,899,000)
Proceeds from beneficial interests in securitized accounts receivable                   282,000      
Net cash (used in) provided by investing activities         (13,872,000)       (29,861,000) (49,555,000) (64,255,000) (34,858,000) 55,831,000
Cash flows from financing activities:                          
Tax withholdings related to stock-based compensation settlements         (176,000)       (189,000) (189,000) (1,143,000) (6,458,000) (4,253,000)
Proceeds from stock option exercises         219,000       219,000 219,000 824,000 540,000 6,904,000
Dividend payments                     0 (21,237,000) (22,885,000)
Proceeds from receivables purchase agreement         30,231,000       68,556,000 68,556,000 68,556,000 14,099,000  
Repayments on receivables purchase agreement         (32,437,000)       (66,399,000) (83,772,000) (83,772,000)    
Proceeds from draw on revolving credit agreements                     26,000,000 163,733,000 141,887,000
Repayment of revolving credit agreements                 (5,000,000) (5,000,000) (31,000,000) (64,987,000) (48,000,000)
Payment for redemption of redeemable non-controlling interest         (5,000)       (25,000) (17,395,000) (17,398,000) (1,224,000)  
Payment of annual recurring compensation to non-controlling interest                   (10,084,000) (10,084,000)    
Payment of debt issuance cost         (1,994,000)       (1,994,000) (1,994,000) (1,994,000) (708,000) (3,015,000)
Repayment of notes payable                 0     (24,891,000) (17,702,000)
Net cash (used in) provided by financing activities         (4,162,000)       (4,832,000) (49,659,000) (50,011,000) 58,867,000 52,936,000
Net (decrease) increase in cash and cash equivalents         19,891,000       23,116,000 1,919,000 (10,695,000) (19,006,000) 64,539,000
Effect of exchange rate changes         (301,000)       902,000 (630,000) (451,000) (2,471,000) (12,713,000)
Cash, cash equivalents and restricted cash, beginning of year 88,456,000 88,456,000 111,185,000 106,757,000 87,167,000       87,167,000 87,167,000 87,167,000 108,644,000 56,818,000
Cash, cash equivalents and restricted cash, end of year   76,021,000 88,456,000 111,185,000 106,757,000 108,644,000     111,185,000 88,456,000 76,021,000 87,167,000 108,644,000
Supplemental disclosure of cash financing activities:                          
Cash paid for interest         5,243,000       6,554,000 18,225,000 20,884,000 12,596,000 1,728,000
Cash paid for income taxes         2,315,000       7,433,000 9,122,000 6,691,000 18,552,000 3,832,000
Cash used in operating activities related to operating leases         2,384,000       4,780,000 7,380,000 9,274,000 9,682,000 5,229,000
Supplemental disclosure of non-cash investing activities                          
Right-of-use assets obtained in exchange for lease obligations         842,000       1,999,000 2,122,000 5,317,000 17,865,000 3,410,000
Purchases of property, plant and equipment included in accounts payable         1,689,000       1,059,000 952,000 2,635,000 1,298,000 1,165,000
Redemption of redeemable non-controlling interest                   2,976,000 2,986,000 371,000  
As Reported [Member]                          
Cash flows from operating activities:                          
Net Loss   (43,510,000) (28,857,000) (47,011,000) (321,670,000)       (368,681,000) (397,538,000) (441,048,000) (259,343,000)  
Adjustments to reconcile net loss to net cash provided by operating activities:                          
Depreciation and amortization         22,528,000       45,156,000 68,421,000 90,985,000 112,949,000  
Goodwill impairment   0 0 0 292,583,000       292,583,000 292,583,000 292,583,000 37,874,000  
Amortization of debt issuance cost         1,013,000       1,013,000 1,013,000 3,950,000 862,000  
(Accretion) amortization on available-for-sale investments, net                       (22,000)  
(Gain) loss on investments         (2,621,000)       (2,867,000) (4,238,000) (5,030,000) (2,900,000)  
Net loss on disposal of property, plant and equipment         150,000       185,000 203,000 1,371,000 458,000  
Stock-based compensation expense         3,957,000       7,793,000 11,417,000 15,342,000 16,016,000  
Deferred income taxes         (19,738,000)       (13,684,000) (13,399,000) 2,247,000 15,558,000  
Other, net         545,000       (126,000) (267,000)   (2,942,000)  
Inventory write down - business efficiency program         3,992,000       4,135,000 4,135,000 4,135,000 24,313,000  
Inventory reserves         1,837,000       3,722,000 6,667,000 3,980,000 25,546,000  
Change in operating assets and liabilities:                          
Accounts receivable, net         26,002,000       26,913,000 59,446,000 46,108,000 65,612,000  
Other receivables         5,605,000       6,279,000 4,875,000 10,713,000 10,315,000  
Income taxes receivable, net         (1,296,000)       (5,653,000) (5,682,000) 648,000 (2,637,000)  
Inventory         30,426,000       62,151,000 69,412,000 75,171,000 20,537,000  
Prepaid expenses, other current assets and other assets         (15,882,000)       (14,731,000) (20,083,000) (10,718,000) (29,883,000)  
Accounts payable         553,000       (3,966,000) 9,697,000 11,784,000 (91,907,000)  
Accrued expenses and other liabilities         7,459,000       19,152,000 15,039,000 5,519,000 17,929,000  
Income taxes payable, net         1,155,000       (2,878,000) (3,175,000) (4,670,000) (3,939,000)  
Net cash provided by (used in) operating activities         36,598,000       56,496,000 98,526,000 103,070,000 (45,604,000)  
Cash flows from investing activities:                          
Purchases of property, plant and equipment         (12,183,000)       (23,644,000) (28,514,000) (32,454,000) (33,683,000)  
Purchases of intangibles - developed technology         (1,191,000)       (5,725,000) (19,669,000) (30,671,000) (9,438,000)  
Proceeds from sales and maturities of available-for-sale investments         873,000       956,000 1,195,000 1,240,000 10,567,000  
Purchases of available-for-sale investments         (44,000)       (121,000) (195,000) (268,000) (868,000)  
Proceeds from beneficial interests in securitized accounts receivable                   282,000      
Net cash (used in) provided by investing activities         (12,545,000)       (28,534,000) (46,901,000) (62,208,000) (32,204,000)  
Cash flows from financing activities:                          
Tax withholdings related to stock-based compensation settlements         (176,000)       (189,000) (189,000) (1,143,000) (6,458,000)  
Proceeds from stock option exercises         219,000       219,000 219,000 824,000 540,000  
Dividend payments                       (21,237,000)  
Proceeds from receivables purchase agreement         30,231,000       68,556,000 68,556,000 68,556,000 14,099,000  
Repayments on receivables purchase agreement         (32,437,000)       (66,399,000) (83,772,000) (83,772,000)    
Proceeds from draw on revolving credit agreements                     26,000,000 163,733,000  
Repayment of revolving credit agreements                 (5,000,000) (5,000,000) (31,000,000) (64,987,000)  
Payment for redemption of redeemable non-controlling interest         (5,000)       (25,000) (17,395,000) (17,398,000) (1,224,000)  
Payment of annual recurring compensation to non-controlling interest                   (10,084,000) (10,084,000)    
Payment of debt issuance cost         (1,994,000)       (1,994,000) (1,994,000) (1,994,000) (708,000)  
Repayment of notes payable                 0     (24,891,000)  
Net cash (used in) provided by financing activities         (4,162,000)       (4,832,000) (49,659,000) (50,011,000) 58,867,000  
Net (decrease) increase in cash and cash equivalents         19,891,000       23,130,000 1,966,000 (9,149,000) (18,941,000)  
Effect of exchange rate changes         (301,000)       888,000 (677,000) (451,000) (2,536,000)  
Cash, cash equivalents and restricted cash, beginning of year $ 88,456,000 88,456,000 111,185,000 106,757,000 87,167,000       87,167,000 87,167,000 87,167,000 108,644,000  
Cash, cash equivalents and restricted cash, end of year   77,567,000 88,456,000 111,185,000 106,757,000 $ 108,644,000     111,185,000 88,456,000 77,567,000 87,167,000 $ 108,644,000
Supplemental disclosure of cash financing activities:                          
Cash paid for interest         5,243,000       6,554,000 18,225,000 20,884,000 12,596,000  
Cash paid for income taxes         2,315,000       7,433,000 9,122,000 6,691,000 18,552,000  
Cash used in operating activities related to operating leases         2,384,000       4,780,000 7,380,000 9,274,000 9,682,000  
Supplemental disclosure of non-cash investing activities                          
Right-of-use assets obtained in exchange for lease obligations         842,000       1,999,000 2,122,000 5,317,000 17,865,000  
Purchases of property, plant and equipment included in accounts payable         1,689,000       1,059,000 952,000 2,635,000 1,298,000  
Redemption of redeemable non-controlling interest                   2,976,000 2,986,000 371,000  
Adjustment [Member]                          
Cash flows from operating activities:                          
Net Loss   (194,000) (2,109,000) (151,000) (6,565,000)       (6,716,000) (8,825,000) (9,019,000) (2,563,000)  
Adjustments to reconcile net loss to net cash provided by operating activities:                          
Depreciation and amortization         (138,000)       (313,000) (527,000) (456,000)    
Goodwill impairment   0 $ 0 $ 0 4,770,000       4,770,000 4,770,000 4,770,000    
Stock-based compensation expense         (3,000)       (6,000) 65,000 646,000 365,000  
Deferred income taxes                     3,329,000 166,000  
Inventory reserves                     1,336,000    
Change in operating assets and liabilities:                          
Accounts receivable, net         (3,498,000)       (3,498,000)     6,708,000  
Income taxes receivable, net         4,735,000       (4,735,000) 4,735,000   4,735,000  
Inventory         1,940,000       (2,256,000) 4,475,000 4,814,000 1,871,000  
Prepaid expenses, other current assets and other assets         3,408,000       3,408,000 2,081,000 (2,727,000) (2,081,000)  
Accounts payable                 0   (1,546,000)    
Accrued expenses and other liabilities         3,494,000       3,493,000 (5,000) (646,000) (6,612,000)  
Net cash provided by (used in) operating activities         1,327,000       1,313,000 (2,607,000) 501,000 2,589,000  
Cash flows from investing activities:                          
Purchases of property, plant and equipment         (1,327,000)       1,327,000 2,654,000 2,047,000 (2,654,000)  
Purchases of intangibles - developed technology         0       0 0      
Net cash (used in) provided by investing activities         $ (1,327,000)       (1,327,000) (2,654,000) (2,047,000) (2,654,000)  
Cash flows from financing activities:                          
Net (decrease) increase in cash and cash equivalents                 (14,000) (47,000) (1,546,000) (65,000)  
Effect of exchange rate changes                 $ 14,000 $ 47,000   $ 65,000  
Cash, cash equivalents and restricted cash, end of year   $ (1,546,000)                 $ (1,546,000)    
v3.25.1
Restatement of Quarterly Financial Information (Unaudited) - Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Error Corrections and Prior Period Adjustments Restatement [Line Items]                        
Annual recurring compensation earned                   $ (9,824) $ (10,125)  
Net Loss $ (43,704) $ (30,966) $ (47,162) $ (328,235) $ (800) $ (100) $ (0) $ (375,397) $ (406,363) (450,067) (261,906) $ (8,888)
As Previously Reported [Member]                        
Error Corrections and Prior Period Adjustments Restatement [Line Items]                        
Annual recurring compensation earned     400 400                
Net Loss $ (43,510) $ (28,857) $ (47,011) $ (321,670)       $ (368,681) $ (397,538) $ (441,048) $ (259,343)  
v3.25.1
Subsequent Events - Additional Information (Detail)
shares in Thousands, $ in Thousands, € in Millions
6 Months Ended 9 Months Ended 12 Months Ended
May 06, 2025
USD ($)
Apr. 14, 2025
USD ($)
shares
Apr. 14, 2025
EUR (€)
shares
Dec. 31, 2024
USD ($)
Jun. 04, 2024
USD ($)
Aug. 09, 2023
USD ($)
Jul. 18, 2022
USD ($)
Jun. 30, 2024
USD ($)
Sep. 30, 2024
USD ($)
Dec. 31, 2024
USD ($)
shares
Dec. 31, 2024
EUR (€)
shares
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2023
EUR (€)
shares
Dec. 31, 2022
USD ($)
Jun. 30, 2025
USD ($)
Dec. 31, 2024
EUR (€)
Subsequent Event [Line Items]                                
Aggregate exit compensation payments obligation including guaranteed interest       $ 344,900           $ 344,900           € 333.2
Number of shares tendered | shares                   831 831 67 67      
Exit compensation payments                   $ 17,400 € 15.7 $ 1,300 € 1.2      
Prepayments of lines of credit               $ 5,000 $ 5,000 $ 31,000   $ 64,987   $ 48,000    
Adtran Networks [Member]                                
Subsequent Event [Line Items]                                
Number of shares tendered | shares                   831 831 67 67      
Exit compensation payments                   $ 17,400 € 15.7 $ 1,300 € 1.2      
Wells Fargo Credit Agreement [Member]                                
Subsequent Event [Line Items]                                
Credit agreement maximum borrowing capacity       340,000           340,000            
Wells Fargo Credit Agreement [Member] | Acorn HoldCo, Inc., [Member]                                
Subsequent Event [Line Items]                                
Credit agreement maximum borrowing capacity       374,000   $ 400,000 $ 400,000     374,000            
Credit facility, average outstanding amount                   3,600            
Wells Fargo Credit Agreement - Subline [Member] | Acorn HoldCo, Inc., [Member]                                
Subsequent Event [Line Items]                                
Credit facility, average outstanding amount       $ 74,000 $ 100,000 $ 100,000 $ 100,000     $ 74,000            
Threshold prepayments of outstanding loans german commitment reduction amount         $ 75,000                      
Subsequent Event [Member] | Adtran Networks [Member]                                
Subsequent Event [Line Items]                                
Number of shares tendered | shares   400 400                          
Exit compensation payments   $ 7,500 € 7.0                          
Subsequent Event [Member] | Wells Fargo Credit Agreement [Member] | Acorn HoldCo, Inc., [Member]                                
Subsequent Event [Line Items]                                
Credit agreement maximum borrowing capacity                             $ 350,000  
Prepayments of lines of credit $ 24,000                              
Threshold prepayments of outstanding loans german commitment reduction amount                             $ 25,000  
Subsequent Event [Member] | Wells Fargo Credit Agreement - Subline [Member] | Acorn HoldCo, Inc., [Member]                                
Subsequent Event [Line Items]                                
Credit facility, average outstanding amount $ 50,000                              
v3.25.1
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Allowance for Credit Losses [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at beginning of period $ 400 $ 49  
Charged to costs & expenses 900 351 $ 49
Balance at end of period 1,300 400 49
Deferred Tax Asset Valuation Allowance [Member]      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at beginning of period 86,567 5,201 50,564
Charged to costs & expenses 29,217 81,590  
Deductions 90 224 45,363
Balance at end of period $ 115,694 $ 86,567 $ 5,201