ADTRAN HOLDINGS, INC., 10-Q filed on 8/5/2025
Quarterly Report
v3.25.2
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2025
Jul. 31, 2025
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2025  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
Entity Registrant Name ADTRAN Holdings, Inc.  
Trading Symbol ADTN  
Entity Central Index Key 0000926282  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Common Stock, Shares Outstanding   80,052,167
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Shell Company false  
Entity File Number 001-41446  
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 Quarterly Report true  
Document Transition Report false  
Title of 12(b) Security Common Stock, Par Value $0.01 per share  
Security Exchange Name NASDAQ  
v3.25.2
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Dec. 31, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Current Assets            
Cash and cash equivalents $ 106,271   $ 76,021 $ 111,185    
Accounts receivable, less allowance for credit losses of $1,258 and $1,300 as of June 30, 2025 and December 31, 2024, respectively 164,768   178,030 186,175    
Other receivables 8,354   9,775 11,436    
Inventory, net 240,081   261,557 283,639    
Income tax receivable 8,136   5,461 8,315    
Prepaid expenses and other current assets 67,717   56,395 55,424    
Assets held for sale 11,901   11,901      
Total Current Assets 607,228   599,140 656,174    
Property, plant and equipment, net 111,936   106,454 138,091    
Goodwill 60,194   52,918 54,897    
Intangibles, net 310,169   284,893 290,793    
Deferred tax assets 17,826   17,826 28,931    
Other non-current assets 75,826   78,128 87,105    
Long-term investments 33,116   32,060 30,159    
Total Assets 1,216,295   1,171,419 1,286,150    
Current Liabilities            
Accounts payable 178,287   171,825 158,550    
Unearned revenue 62,695   52,701 55,107    
Accrued expenses and other liabilities 38,127   34,158 34,905    
Accrued wages and benefits 29,532   32,853 37,638    
Income tax payable 1,019   1,936 2,208    
Total Current Liabilities 309,660   293,473 288,408    
Non-current revolving credit agreement 190,180   189,576 190,273    
Deferred tax liabilities 32,866   30,372 21,497    
Non-current unearned revenue 24,429   22,065 26,584    
Non-current pension liability 9,686   8,983 11,505    
Deferred compensation liability 34,390   33,203 30,601    
Non-current lease obligations 27,783   25,925 26,613    
Other non-current liabilities 15,599   17,928 33,744    
Total Liabilities 644,593   621,525 629,225    
Commitments and contingencies (see Note 16)      
Redeemable Non-Controlling Interest 402,089   422,943 443,297    
Equity            
Common stock, par value $0.01 per share; 200,000 shares authorized; 80,041 shares issued and 79,779 outstanding as of June 30, 2025 and 79,483 shares issued and 79,218 outstanding as of December 31, 2024 800   795 791    
Additional paid-in capital 814,749   808,913 801,887    
Accumulated other comprehensive income 78,355   11,254 28,315    
Retained deficit (719,183)   (688,813) (612,167)    
Less treasury stock at cost: 262 and 266 shares as of June 30, 2025 and December 31, 2024, respectively (5,108)   (5,198) (5,198)    
Total Equity 169,613 $ 138,893 126,951 213,628 $ 260,849 $ 605,257
Total Liabilities, Redeemable Non-Controlling Interest and Equity $ 1,216,295   $ 1,171,419 $ 1,286,150    
v3.25.2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Jun. 30, 2024
Statement of Financial Position [Abstract]      
Accounts receivable, allowance for credit losses $ 1,258 $ 1,300 $ 191
Common stock, par value $ 0.01 $ 0.01 $ 0.01
Common stock, shares authorized 200,000,000 200,000,000 200,000,000
Common stock, shares issued 80,041,000 79,483,000 79,121,000
Common stock, shares outstanding 79,779,000 79,218,000 78,855,000
Treasury stock, shares 262,000 266,000 266,000
v3.25.2
Condensed Consolidated Statements of Loss (Unaudited) - USD ($)
shares in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2024
Revenue      
Total Revenue $ 265,068,000 $ 225,991,000 $ 452,164,000
Cost of Revenue      
Total Cost of Revenue 166,144,000 144,732,000 300,590,000
Gross Profit 98,924,000 81,259,000 151,574,000
Selling, general and administrative expenses 60,347,000 59,364,000 118,355,000
Research and development expenses 51,895,000 60,352,000 120,567,000
Goodwill impairment 0 0 297,353,000
Operating Loss (13,318,000) (38,457,000) (384,701,000)
Interest and dividend income 201,000 366,000 763,000
Interest expense (4,564,000) (6,906,000) (11,504,000)
Net investment gain 3,075,000 872,000 3,125,000
Other (expense) income, net (2,636,000) (901,000) 409,000
Loss Before Income Taxes (17,242,000) (45,026,000) (391,908,000)
Income tax (expense) benefit (1,016,000) (2,136,000) 16,511,000
Net Loss (18,258,000) (47,162,000) (375,397,000)
Less: Net Income attributable to non-controlling interest [1] 2,273,000 2,505,000 5,035,000
Net Loss attributable to ADTRAN Holdings, Inc. $ (20,531,000) $ (49,667,000) $ (380,432,000)
Weighted average shares outstanding – basic 79,748 78,852 78,803
Weighted average shares outstanding – diluted 79,748 78,852 78,803
Loss per common share attributable to ADTRAN Holdings, Inc. - basic [2] $ (0.24) $ (0.63) $ (4.83)
Loss per common share attributable to ADTRAN Holdings, Inc. - diluted [2] $ (0.24) $ (0.63) $ (4.83)
Network Solutions [Member]      
Revenue      
Total Revenue $ 219,498,000 $ 179,194,000 $ 360,467,000
Cost of Revenue      
Total Cost of Revenue 147,321,000 124,773,000 253,039,000
Gross Profit 72,177,000 54,278,000 98,503,000
Network Solutions - Charges and Inventory Write-Down [Member]      
Cost of Revenue      
Total Cost of Revenue 0 143,000 8,925,000
Services & Support [Member]      
Revenue      
Total Revenue 45,570,000 46,797,000 91,697,000
Cost of Revenue      
Total Cost of Revenue 18,823,000 19,816,000 38,626,000
Gross Profit $ 26,747,000 $ 26,981,000 $ 53,071,000
[1] For the three and six months ended June 30, 2025 we accrued $2.4 million and $4.8 million, respectively, net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA. For the three and six months ended June 30, 2024, we accrued $2.5 million and $5.0 million, respectively, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA.
[2] Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $1.5 million effect of redemption of RNCI for the three and six months ended June 30, 2025. See Note 14 for additional information.
v3.25.2
Condensed Consolidated Statements of Loss (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Net gain (loss) attributable to redeemable non-controlling interest [1] $ 2,273 $ 2,505 $ 4,592 $ 5,035
Gain on redemption of redeemable non-controlling interest 1,494   1,491  
Post-DPLTA [Member]        
Recurring cash compensation earned $ 2,400 $ 2,500 $ 4,800 $ 5,000
[1] For the three and six months ended June 30, 2025 we accrued $2.4 million and $4.8 million, respectively, net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA. For the three and six months ended June 30, 2024, we accrued $2.5 million and $5.0 million, respectively, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA.
v3.25.2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Statement of Comprehensive Income [Abstract]        
Net loss $ (18,258) $ (47,162) $ (27,206) $ (375,397)
Other Comprehensive Income (Loss), net of tax        
Defined benefit plan adjustments 268 (7) 399 (67)
Foreign currency translation gain (loss) 46,455 (1,442) 66,702 (19,215)
Other Comprehensive Income (Loss), net of tax 46,723 (1,449) 67,101 (19,282)
Comprehensive Income (Loss), net of tax 28,465 (48,611) 39,895 (394,679)
Less: Comprehensive Income attributable to non-controlling interest 2,273 2,504 4,592 5,035
Comprehensive Income (Loss) attributable to ADTRAN Holdings, Inc., net of tax $ 26,192 $ (51,115) $ 35,303 $ (399,714)
v3.25.2
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
Total
Adtran Networks SE [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Additional Paid-in Capital [Member]
Adtran Networks SE [Member]
Retained Deficit Earnings [Member]
Retained Deficit Earnings [Member]
Adtran Networks SE [Member]
Treasury Stock [Member]
Accumulated Other Comprehensive Income [Member]
Beginning Balance at Dec. 31, 2023 $ 605,257   $ 790 $ 794,468   $ (231,706)   $ (5,825) $ 47,530
Beginning Balance, Shares at Dec. 31, 2023     78,970            
Net (loss) income (328,235)         (328,235)      
Annual recurring compensation earned (2,531)         (2,531)      
Other comprehensive income (loss), net of tax (17,833)               (17,833)
Deferred compensation adjustments, net of tax 262     (368)   3   627  
ADTRAN RSUs and restricted stock vested (242)   $ 1     (243)      
ADTRAN RSUs and restricted stock vested, Shares     110            
ADTRAN Stock options exercised 219         219      
ADTRAN Stock options exercised, Shares     36            
ADTRAN Stock-based compensation expense 3,957 $ (6)   3,957 $ (6)        
Redemption of redeemable non-controlling interest 1         1      
Ending Balance at Mar. 31, 2024 260,849   $ 791 798,051   (562,492)   (5,198) 29,697
Ending Balance, Shares at Mar. 31, 2024     79,116            
Beginning Balance at Dec. 31, 2023 605,257   $ 790 794,468   (231,706)   (5,825) 47,530
Beginning Balance, Shares at Dec. 31, 2023     78,970            
Other comprehensive income (loss), net of tax (19,215)                
Ending Balance at Jun. 30, 2024 $ 213,628   $ 791 801,887   (612,167)   (5,198) 28,315
Ending Balance, Shares at Jun. 30, 2024 79,121   79,121            
Beginning Balance at Mar. 31, 2024 $ 260,849   $ 791 798,051   (562,492)   (5,198) 29,697
Beginning Balance, Shares at Mar. 31, 2024     79,116            
Net (loss) income (47,162)         (47,162)      
Annual recurring compensation earned (2,504)         (2,504)      
Other comprehensive income (loss), net of tax (1,382)               (1,382)
Deferred compensation adjustments, net of tax (3)         (3)      
ADTRAN RSUs and restricted stock vested (16)         (16)      
ADTRAN Stock-based compensation expense 3,836 6   3,836     $ 6    
Redemption of redeemable non-controlling interest 4         4      
Redemption of redeemable non-controlling interest, Shares     0            
Ending Balance at Jun. 30, 2024 $ 213,628   $ 791 801,887   (612,167)   (5,198) 28,315
Ending Balance, Shares at Jun. 30, 2024 79,121   79,121            
Beginning Balance at Dec. 31, 2024 $ 126,951   $ 795 808,913   (688,813)   (5,198) 11,254
Beginning Balance, Shares at Dec. 31, 2024 79,483   79,483            
Net (loss) income $ (8,948)         (8,948)      
Annual recurring compensation earned (2,319)         (2,319)      
Other comprehensive income (loss), net of tax 20,378               20,378
Deferred compensation adjustments, net of tax 38     (52)       90  
ADTRAN RSUs and restricted stock vested (1,170)   $ 4     (1,174)      
ADTRAN RSUs and restricted stock vested, Shares     373            
ADTRAN Stock options exercised 756   $ 1     755      
ADTRAN Stock options exercised, Shares     113            
ADTRAN Stock-based compensation expense 2,062 $ 1,148   2,062 $ 1,148        
Redemption of redeemable non-controlling interest (3)         (3)      
Ending Balance at Mar. 31, 2025 138,893   $ 800 812,071   (700,502)   (5,108) 31,632
Ending Balance, Shares at Mar. 31, 2025     79,969            
Beginning Balance at Dec. 31, 2024 $ 126,951   $ 795 808,913   (688,813)   (5,198) 11,254
Beginning Balance, Shares at Dec. 31, 2024 79,483   79,483            
Other comprehensive income (loss), net of tax $ 67,101                
ADTRAN Stock options exercised, Shares 172                
Ending Balance at Jun. 30, 2025 $ 169,613   $ 800 814,749   (719,183)   (5,108) 78,355
Ending Balance, Shares at Jun. 30, 2025 80,041   80,041            
Beginning Balance at Mar. 31, 2025 $ 138,893   $ 800 812,071   (700,502)   (5,108) 31,632
Beginning Balance, Shares at Mar. 31, 2025     79,969            
Net (loss) income (18,258)         (18,258)      
Annual recurring compensation earned (2,273)         (2,273)      
Other comprehensive income (loss), net of tax 46,723               46,723
ADTRAN RSUs and restricted stock vested (54)         (54)      
ADTRAN RSUs and restricted stock vested, Shares     12            
ADTRAN Stock options exercised 410         410      
ADTRAN Stock options exercised, Shares     60            
ADTRAN Stock-based compensation expense 2,678     2,678          
Redemption of redeemable non-controlling interest 1,494         1,494      
Ending Balance at Jun. 30, 2025 $ 169,613   $ 800 $ 814,749   $ (719,183)   $ (5,108) $ 78,355
Ending Balance, Shares at Jun. 30, 2025 80,041   80,041            
v3.25.2
Condensed Consolidated Statements of Cash Flows (Unaudited)
 6 Months Ended
Jun. 30, 2025
USD ($)
Cash flows from operating activities:  
Net loss $ (27,206,000)
Adjustments to reconcile net loss to net cash provided by operating activities:  
Depreciation and amortization 44,990,000
Goodwill impairment 0
Amortization of debt issuance cost 639,000
Gain on investments, net (1,506,000)
Net loss on disposal of property, plant and equipment 24,000
Stock-based compensation expense 5,888,000
Deferred income taxes 1,189,000
Inventory reserves 9,176,000
Changes in operating assets and liabilities:  
Accounts receivable, net 25,754,000
Other receivables 1,416,000
Income taxes receivable, net (2,349,000)
Inventory 29,594,000
Prepaid expenses, other current assets and other assets 6,095,000
Accounts payable (6,242,000)
Accrued expenses and other liabilities (11,305,000)
Income taxes payable (816,000)
Net cash provided by operating activities 75,341,000
Cash flows from investing activities:  
Purchases of property, plant and equipment (12,084,000)
Purchases of intangibles - developed technology (20,444,000)
Proceeds from sales and maturities of available-for-sale investments 727,000
Purchases of available-for-sale investments (243,000)
Payments for beneficial interest in securitized accounts receivable (49,000)
Net cash used in investing activities (32,093,000)
Cash flows from financing activities:  
Tax withholdings related to stock-based compensation settlements (1,223,000)
Proceeds from stock option exercises 1,163,000
Proceeds from draw on revolving credit agreements 24,000,000
Repayment of revolving credit agreements (24,000,000)
Payment for redemption of redeemable non-controlling interest (19,363,000)
Payment of debt issuance cost (64,000)
Net cash used in financing activities (19,487,000)
Net increase in cash and cash equivalents 23,761,000
Effect of exchange rate changes 6,489,000
Cash and cash equivalents, beginning of period 76,021,000
Cash and cash equivalents, end of period 106,271,000
Supplemental disclosure of cash financing activities:  
Cash paid for interest 8,049,000
Cash paid for income taxes, net of refunds 4,155,000
Cash used in operating activities related to operating leases 5,236,000
Supplemental disclosure of non-cash investing activities:  
Redemption of redeemable non-controlling interest 1,491,000
Right-of-use assets obtained in exchange for lease obligations 3,538,000
Purchases of property, plant and equipment included in accounts payable $ 1,450,000
v3.25.2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Pay vs Performance Disclosure        
Net Income (Loss) $ (20,531) $ (49,667) $ (31,798) $ (380,432)
v3.25.2
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2025
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
v3.25.2
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2025
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, as the controlled company, which was 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 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 applies to the net loss generated by Adtran Networks in 2024 and it will apply to any net loss generated by Adtran Networks in 2025.

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 2.27% as of June 30, 2025. 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 €326.8 million or $385.2 million, based on an exchange rate as of June 30, 2025, and reflecting interest accrued through June 30, 2025 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 court has decided a procedural matter in the DPLTA appraisal proceedings; the parties may or may not choose to appeal such decision, if able, and the proceeding for the trial on the merits of the DPLTA will continue. It is expected to take a minimum of 12 months for a ruling of the court on the merits and such ruling will most 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 approximately €8.5 million (or $10.0 million based on the exchange rate as of June 30, 2025) per year assuming none of the minority Adtran Networks shareholders as of June 30, 2025 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 occurred on June 27, 2025 and, therefore, the Annual Recurring Compensation was paid on July 1, 2025. During the three months ended June 30, 2025 and 2024, we accrued $2.4 million and $2.5 million, respectively, in Annual Recurring Compensation. During the six months ended June 30, 2025 and 2024, we accrued $4.8 million and $5.0 million, respectively, in Annual Recurring Compensation. The Annual Recurring Compensation is reflected as an increase to retained deficit in the Condensed Consolidated Balance Sheets.

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 five times. The Company had access to $156.5 million on its Credit Facility for future borrowings; however, as of June 30, 2025, the Company was limited to additional borrowings of $66.8 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 10, Credit Agreements for additional information regarding the terms of the Wells Fargo Credit Agreement.

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.

As of June 30, 2025, and as of the date of issuance of these financial statements, the Company does not have sufficient liquidity to meet the substantial majority of its payment obligations under the DPLTA pertaining to Exit Compensation. For the three and six months ended June 30, 2025, approximately 0.9 million shares, of Adtran Networks stock were tendered to the Company. This resulted in total Exit Compensation payments of approximately €16.9 million or $19.4 million based on the applicable exchange rates at the time of the transactions being paid to Adtran Networks shareholders. For the three and six months ended June 30, 2024, approximately one thousand shares of Adtran Networks stock were tendered to the Company. This resulted in Exit Compensation payments of approximately €19 thousand and €23 thousand, respectively, or $20 thousand and $25 thousand, respectively, based on the applicable exchange rates at the time of the transactions, being paid to Adtran Networks shareholders. 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 the date of a decision by the court on the merits of the case is uncertain, it will most 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 the year ended December 31, 2024. However, customers have started to replenish their inventories to meet increasing demand. Revenue began to increase in the first half of 2025 and management expects orders and billings to continue to increase during the remainder of 2025. The Company continues to implement 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"), which targeted the reduction of ongoing operating expenses and focused on enhancing capital efficiency. The Business Efficiency Program was completed as of December 31, 2024. The Company has determined that it is probable that the sale of its headquarters in Huntsville will occur within the next twelve months after December 31, 2024. The Company may need to further reduce capital expenditures and/or take other steps to preserve working capital in order to ensure that it can meet its needs and obligations and maintain compliance with its 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 and continue as a going concern, for at least the next twelve months, from the issuance of these financial statements. See Note 10, Credit Agreements, for additional information regarding the terms of the Amendments of the Wells Fargo Credit agreement.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

During the six months ended June 30, 2025, there were no significant changes to our critical accounting policies as described in the financial statements contained in the 2024 Form 10-K/A.

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements of ADTRAN Holdings, Inc. and its subsidiaries have been prepared pursuant to the rules and regulations of the SEC applicable to interim financial information presented in Quarterly Reports on Form 10-Q. Accordingly, certain information and notes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements are not included herein. The December 31, 2024, Condensed Consolidated Balance Sheet is derived from audited financial statements but does not include all disclosures required by U.S. GAAP for annual financial statements.

In the opinion of management, all adjustments necessary to fairly state these interim statements have been recorded and are of a normal and recurring nature. The results of operations for an interim period are not necessarily indicative of the results for the full year. The interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in ADTRAN Holdings, Inc. Amendment No. 1 to the Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on May 20, 2025 ("2024 Form 10-K/A").

Restatement of Previously Issued Financial Statements

As discussed in the financial statements as of and for the year ended December 31, 2024 included in our 2024 Form 10-K/A, we identified errors in our previously issued financial statements related to the historical accounting for certain inventory and cost of goods sold transactions (“Adjustment”). The affected periods included the annual periods ended December 31, 2023 and 2024 and the interim periods ended March 31, 2024, June 30, 2024 and September 30, 2024.

In connection with the identification of the Adjustment, the Audit Committee oversaw 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, it was 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 Annual Report on Form 10-K. As described in Part I, Item 4 of this report, the Company is taking certain remedial actions to address the material weaknesses in its internal controls associated with these findings. On August 4, 2025, we received a letter from the Atlanta regional office of the SEC in connection with a non-public, fact-finding inquiry, requesting that we voluntarily provide information regarding the internal investigation, which we will respond to accordingly.

The identified errors referenced above impacted the Condensed Consolidated Financial Statements as of and for the three and six months ended June 30, 2024, among other periods as previously disclosed. Below is a summary description of the significant errors in the Company's Condensed Consolidated Financial Statements as of and for the three and six months ended June 30, 2024:

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 RNCI each quarter-end at the current exchange rate of euros to U.S. Dollar. The Company treated the RNCI 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.

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 the June 30, 2024 financial statements and therefore, we have restated those

financial statements herein. Furthermore, we made adjustments to correct for other previously identified immaterial errors. The Company has also restated impacted amounts within the accompanying footnotes to the Condensed Consolidated Financial Statements. See Note 18 for further information about the restatement.

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, currency fluctuations and political tensions as of June 30, 2025, 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.

Recent Accounting Pronouncements Not Yet Adopted

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2024-03, "Disaggregation of Income Statement Expenses (DISE) (Topic 220): Improvements to Income Statement Disclosures", which applies to all public business entities (PBEs) 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 for annual periods beginning after December 15, 2026, and 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 FASB issued 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

There are currently no recently adopted accounting pronouncements that are expected to have a material effect on the Condensed Consolidated Financial Statements.
v3.25.2
Revenue
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue

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 & Aggregation, and Optical Networking Solutions.

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

Revenue by Category

In addition to the Company's reportable segments, revenue is also reported for the following 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 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.

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.

The following tables disaggregate revenue by reportable segment and revenue category:

 

 

 

Three Months Ended

 

 

 

June 30, 2025

 

 

June 30, 2024

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

75,537

 

 

$

8,221

 

 

$

83,758

 

 

$

73,615

 

 

$

8,782

 

 

$

82,397

 

Access & Aggregation Solutions

 

 

77,353

 

 

 

13,859

 

 

 

91,212

 

 

 

54,112

 

 

 

15,795

 

 

 

69,907

 

Optical Networking Solutions

 

 

66,608

 

 

 

23,490

 

 

 

90,098

 

 

 

51,467

 

 

 

22,220

 

 

 

73,687

 

Total

 

$

219,498

 

 

$

45,570

 

 

$

265,068

 

 

$

179,194

 

 

$

46,797

 

 

$

225,991

 

 

 

Six Months Ended

 

 

 

June 30, 2025

 

 

June 30, 2024

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

147,285

 

 

$

16,884

 

 

$

164,169

 

 

$

133,984

 

 

$

18,181

 

 

$

152,165

 

Access & Aggregation Solutions

 

 

153,200

 

 

 

27,148

 

 

$

180,348

 

 

 

121,889

 

 

 

29,330

 

 

$

151,219

 

Optical Networking Solutions

 

 

121,230

 

 

 

47,065

 

 

$

168,295

 

 

 

104,594

 

 

 

44,186

 

 

$

148,780

 

Total

 

$

421,715

 

 

$

91,097

 

 

$

512,812

 

 

$

360,467

 

 

$

91,697

 

 

$

452,164

 

 

The aggregate amount of transaction price allocated to remaining performance obligations that have not been satisfied as of June 30, 2025 and December 31, 2024 related to contractual maintenance agreements, contractual SaaS and subscription services, and hardware contracts that exceed one year in duration amounted to $264.9 million and $325.7 million, respectively. As of June 30, 2025, approximately 62.8% 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 June 30, 2025, 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:

 

 

 

As of

 

 

As of

 

(In thousands)

 

June 30, 2025

 

 

December 31, 2024

 

Accounts receivable, net

 

$

164,768

 

 

$

178,030

 

Contract assets(1)

 

$

510

 

 

$

631

 

Unearned revenue

 

$

62,695

 

 

$

52,701

 

Non-current unearned revenue

 

$

24,429

 

 

$

22,065

 

 

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

Accounts Receivable

The allowance for credit losses was $1.3 million as of June 30, 2025, and December 31, 2024, 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 June 30, 2025, totaled $18.4 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 Condensed Consolidated Balance Sheets. The cost of the Factoring Agreement is included in interest expense in the Condensed Consolidated Statements of Loss and totaled $0.3 million and $0.6 million for the three months and six months ended June 30, 2025, respectively.

On December 19, 2023, the Company entered into a receivables purchase agreement (the "Prior Factoring Agreement") with a third-party financial institution which qualified for treatment as a secured borrowing with a pledge of collateral under Accounting Standards Codification ("ASC") Topic 810, Consolidation. The Prior Factoring Agreement was terminated on July 1, 2024. For the three and six months ended June 30, 2024, the Company incurred program fee expenses of $0.3 million and $0.6 million, respectively.

Contract Assets

No allowance for credit losses was recorded for the three and six months ended June 30, 2025 and 2024, respectively, related to contract assets.

Unearned Revenue

Of the outstanding unearned revenue balances as of December 31, 2024, $12.8 million and $34.7 million were recognized as revenue during the three and six months ended June 30, 2025, respectively. Of the $65.1 million of outstanding unearned revenue balances as of December 31, 2023, $13.7 million and $33.1 million were recognized as revenue during the three and six months ended June 30, 2024, respectively.
v3.25.2
Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

3. INCOME TAXES

The Company’s effective tax rate changed from an expense of 4.7% of pre-tax loss for the three months ended June 30, 2024, to an expense of 5.9% of pre-tax loss for the three months ended June 30, 2025, and changed from a benefit of 4.2% of pre-tax loss for the six months ended June 30, 2024, to an expense of 2.3% of pre-tax loss for the six months ended June 30, 2025. The changes in the effective tax rate for the three and six months ended June 30, 2025, were driven primarily by loss jurisdictions for which the recognition of tax benefits on pre-tax losses incurred during the three and six months ended June 30, 2025 were limited due to a valuation allowance.

The Company continually reviews the adequacy of its valuation allowance and recognizes the benefits of deferred tax assets only as the assessment indicates that it is more likely than not that the deferred tax assets will be recognized in accordance with ASC 740, Income Taxes. As of June 30, 2025, the Company had net deferred tax assets totaling $100.7 million, and a valuation allowance totaling $115.7 million against those deferred tax assets. Our assessment of the realizability of our deferred tax assets includes the evaluation of historical operating results, as well as the evaluation of evidence which requires significant judgment, including the evaluation of our three-year cumulative income position, future taxable income projections and tax planning strategies. Should management’s conclusion change in the future and an additional valuation allowance, or a partial or full release of the valuation allowance becomes necessary, it may have a material effect on our consolidated financial statements.
v3.25.2
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

4. 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 4.0 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 0.7 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 June 30, 2025, 4.1 million shares were available for issuance pursuant to awards that may be made in the future under shareholder-approved equity plans.

For the three months ended June 30, 2025 and 2024, stock-based compensation expense was $2.7 million and $3.8 million, respectively, and for the six months ended June 30, 2025 and 2024, stock-based compensation expense was $5.9 million and $7.8 million, respectively.

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

The following table summarizes the changes of the PSUs, RSUs and restricted stock outstanding during the six months ended June 30, 2025:

 

 

 

Number of
Shares
(in thousands)

 

 

Weighted Avg. Grant Date Fair Value
(per share)

 

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

 

 

2,335

 

 

$

13.22

 

PSUs, RSUs and restricted stock granted

 

 

1,278

 

 

$

10.35

 

PSUs, RSUs and restricted stock vested

 

 

(509

)

 

$

11.59

 

PSUs, RSUs and restricted stock forfeited

 

 

(148

)

 

$

11.06

 

Unvested PSUs, RSUs and restricted stock outstanding, June 30, 2025

 

 

2,956

 

 

$

11.44

 

 

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.

As of June 30, 2025, total unrecognized compensation expense related to the non-vested portion of market-based PSUs, RSUs and restricted stock was approximately $17.8 million, which will be recognized over the remaining weighted-average period of 2.7 years. As of June 30, 2025, there was $9.9 million of unrecognized compensation expense related to unvested performance-based PSUs (not-considered probable), which will be recognized over the remaining requisite service period of 0.5 years if achievement of the performance obligation becomes probable. Unrecognized compensation expense will be adjusted for actual forfeitures.

Stock Options - ADTRAN Holdings, Inc.

The following table summarizes the changes of the stock options outstanding that occurred during the six months ended June 30, 2025:

 

 

Number of
Stock Options
(in thousands)

 

 

Weighted Avg.
Exercise Price
(per share)

 

 

Weighted Avg.
Remaining
Contractual
Life
(in years)

 

 

Aggregate
Intrinsic Value
(in thousands)

 

Stock options outstanding, December 31, 2024

 

 

2,944

 

 

$

9.86

 

 

 

5.0

 

 

$

3,762

 

Stock options exercised

 

 

(172

)

 

$

6.76

 

 

 

 

 

 

 

Stock options forfeited

 

 

(98

)

 

$

9.62

 

 

 

 

 

 

 

Stock options expired

 

 

(17

)

 

$

14.12

 

 

 

 

 

 

 

Stock options outstanding, June 30, 2025

 

 

2,657

 

 

$

10.04

 

 

 

4.6

 

 

$

4,200

 

Stock options exercisable, June 30, 2025

 

 

1,750

 

 

$

9.82

 

 

 

3.5

 

 

$

2,141

 

As of June 30, 2025, there was $1.3 million of unrecognized compensation expense related to stock options which will be recognized over the remaining weighted-average period of 0.6 years.

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 June 30, 2025. The amount of aggregate intrinsic value was $4.2 million as of June 30, 2025, 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 six months ended June 30, 2025, and 2024 was $0.5 million and $34 thousand, respectively. During the three and six months ended June 30, 2025 and 2024, 0.5 million and 0.1 million stock options vested, respectively.

v3.25.2
Long Term Investments
 6 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Long term Investments

5. LONG TERM INVESTMENTS

The Company has cash equivalents and investments which are held at fair value as follows:

 

 

 

 

 

 

Fair Value Measurements as of June 30, 2025 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 (1)

 

$

238

 

 

$

238

 

 

$

—

 

 

$

—

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities

 

 

1,072

 

 

 

1,072

 

 

 

—

 

 

 

—

 

Deferred compensation plan assets

 

 

32,044

 

 

 

32,044

 

 

 

—

 

 

 

—

 

Total

 

$

33,354

 

 

$

33,354

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

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 (1)

 

$

5,538

 

 

$

5,538

 

 

$

—

 

 

$

—

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities

 

 

1,068

 

 

 

1,068

 

 

 

—

 

 

 

—

 

Deferred compensation plan assets

 

 

30,991

 

 

 

30,991

 

 

 

—

 

 

 

—

 

Total

 

$

37,597

 

 

$

37,597

 

 

$

—

 

 

$

—

 

 

(1)
The money market fund balances of $0.2 million and $5.5 million as of June 30, 2025 and December 31, 2024, respectively, are included in cash and cash equivalents on the balance sheet.

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.

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; and

• 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.
v3.25.2
Inventory, Net
 6 Months Ended
Jun. 30, 2025
Inventory Disclosure [Abstract]  
Inventory, Net

6. INVENTORY, NET

Inventory consisted of the following:

 

 

 

As of

 

 

As of

 

(In thousands)

 

June 30, 2025

 

 

December 31, 2024

 

Raw materials

 

$

85,043

 

 

$

106,384

 

Work in process

 

 

11,530

 

 

 

9,724

 

Finished goods

 

 

143,508

 

 

 

145,449

 

Total inventory, net

 

$

240,081

 

 

$

261,557

 

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 considers 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 Condensed Consolidated Statements of Loss.
v3.25.2
Property, Plant and Equipment, Net
 6 Months Ended
Jun. 30, 2025
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, Net

7. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment consisted of the following:

 

 

As of

 

 

As of

 

(In thousands)

 

June 30, 2025

 

 

December 31, 2024

 

Engineering and other equipment

 

$

197,351

 

 

$

184,694

 

Building

 

 

52,529

 

 

 

50,871

 

Computer hardware and software

 

 

121,704

 

 

 

113,241

 

Building and land improvements

 

 

43,557

 

 

 

39,979

 

Furniture and fixtures

 

 

21,468

 

 

 

20,994

 

Land

 

 

3,075

 

 

 

2,989

 

     Total property, plant and equipment

 

 

439,684

 

 

 

412,768

 

Less: accumulated depreciation and amortization

 

 

(327,748

)

 

 

(306,314

)

     Total property, plant and equipment, net

 

$

111,936

 

 

$

106,454

 

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.

Depreciation and amortization expense was $7.6 million and $7.0 million for the three months ended June 30, 2025 and 2024, respectively, and $14.5 million and $14.1 million for the six months ended June 30, 2025 and 2024, respectively, which is recorded in cost of revenue, selling, general and administrative expenses and research and development expenses in the Condensed 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 June 30, 2025 and December 31, 2024, respectively, and is separately recorded on the balance sheet.
v3.25.2
Goodwill
 6 Months Ended
Jun. 30, 2025
Goodwill Disclosure [Abstract]  
Goodwill

8. GOODWILL

The changes in the carrying amount of goodwill for the six months ended June 30, 2025, are as follows:

 

(In thousands)

 

Services & Support

 

As of December 31, 2024

 

$

52,918

 

Foreign currency translation adjustments

 

 

7,276

 

As of June 30, 2025

 

$

60,194

 

 

Goodwill represents the excess purchase price over the fair value of net assets acquired. The Company performs its annual goodwill impairment assessment on the first day of the fourth quarter. In addition, the Company performs an interim impairment assessment prior to our annual measurement date whenever events or changes in circumstances indicate that the carrying amount of such assets (or group of assets) may not be recoverable.

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 of our reporting units. The Company determined the fair value of each reporting unit using a combination of an income approach and a market-based peer group analysis. 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 cash flow projections, discount rate, peer group determination and market multiple selection. 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.

No impairment of goodwill was recognized during the three and six months ended June 30, 2025 and the three months ended June 30, 2024. As of June 30, 2025, accumulated goodwill impairment losses totaled $335.3 million.

v3.25.2
Intangible Assets, Net
 6 Months Ended
Jun. 30, 2025
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible Assets, Net

9. INTANGIBLE ASSETS, NET

Intangible assets, net as of June 30, 2025, and December 31, 2024, consisted of the following:

 

 

 

 

As of June 30, 2025

 

 

As of December 31, 2024

 

(In thousands excluding years)

Weighted Average Useful Life
(in years)

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Book Value

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Book Value

 

Customer relationships

 

11.0

 

 

$

56,396

 

 

$

(22,927

)

 

$

33,469

 

 

$

51,165

 

 

$

(18,778

)

 

$

32,387

 

Backlog

 

1.7

 

 

 

61,298

 

 

 

(61,163

)

 

 

135

 

 

 

53,839

 

 

 

(52,258

)

 

 

1,581

 

Developed technology

 

7.8

 

 

 

413,360

 

 

 

(139,457

)

 

 

273,903

 

 

 

346,923

 

 

 

(99,588

)

 

 

247,335

 

Licensed technology

 

9.0

 

 

 

5,900

 

 

 

(4,780

)

 

 

1,120

 

 

 

5,900

 

 

 

(4,452

)

 

 

1,448

 

Licensed agreements

 

8.5

 

 

 

560

 

 

 

(427

)

 

 

133

 

 

 

560

 

 

 

(407

)

 

 

153

 

Trade names

 

2.8

 

 

 

31,710

 

 

 

(30,301

)

 

 

1,409

 

 

 

27,851

 

 

 

(25,862

)

 

 

1,989

 

     Total

 

 

 

$

569,224

 

 

$

(259,055

)

 

$

310,169

 

 

$

486,238

 

 

$

(201,345

)

 

$

284,893

 

 

No impairment losses related to intangible assets were recorded during the three and six months ended June 30, 2025 and 2024.

 

Amortization expense was $15.7 million and $15.3 million in the three months ended June 30, 2025 and 2024, respectively, and $30.6 million and $30.4 million in the six months ended June 30, 2025 and 2024, respectively and was included in cost of revenue, selling, general and administrative expenses and research and development expenses in the Condensed Consolidated Statements of Loss.

Estimated future amortization expense of intangible assets is as follows:

 

 

 

As of

 

(In thousands)

 

June 30, 2025

 

2025

 

$

32,368

 

2026

 

 

64,772

 

2027

 

 

59,150

 

2028

 

 

49,561

 

2029

 

 

46,025

 

Thereafter

 

 

58,293

 

     Total

 

$

310,169

 

 
v3.25.2
Credit Agreements
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Credit Agreements

10. CREDIT AGREEMENTS

The carrying amounts of the Company's non-current revolving credit facility in its Condensed Consolidated Balance Sheets were as follows:

 

 

 

As of

 

 

As of

 

(In thousands)

 

June 30, 2025

 

 

December 31, 2024

 

Wells Fargo credit agreement

 

$

190,180

 

 

$

189,576

 

Total non-current revolving credit facility

 

$

190,180

 

 

$

189,576

 

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 (the “Original Credit Agreement”), as amended by the First Amendment to the Credit Agreement, dated August 9, 2023 (“Amendment No. 1”), the Second Amendment to the Credit Agreement, dated January 16, 2024 (“Amendment No. 2”), the Third Amendment to the Credit Agreement, dated March 12, 2024 (“Amendment No. 3”), the Fourth Amendment to the Credit Amendment, dated June 4, 2024 ("Amendment No. 4"), and the Fifth Amendment to the Credit Agreement, dated May 6, 2025 (“Amendment No. 5” and, collectively with Amendment No. 1, Amendment No. 2, Amendment No. 3, and Amendment No. 4, the “Credit Agreement Amendments”; and the Original Credit Agreement, as amended by the Credit Agreement Amendments, the “Amended Credit Agreement”). Amendment No. 5, together with a substantially concurrent prepayment by Adtran Networks 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. As of June 30, 2025, the Amended Credit Agreement provided for a secured revolving credit facility of up to $350.0 million of borrowings, $50.0 million of which is solely available to Adtran Networks as borrower pursuant to the Subline (as defined and further described below).

As of June 30, 2025, the Company’s borrowings under the revolving line of credit were $190.2 million, of which approximately $165.0 million were borrowed by the U.S. Borrower and $25.2 million were borrowed under the Subline by Adtran Networks, who became a party to the Amended Credit Agreement in June 2024. The credit facilities provided under the Amended 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 $350.0 million total revolving facility for the issuance of letters of credit. As of June 30, 2025, the U.S. Borrower had a total of $3.3 million in letters of credit under the Amended Credit Agreement, leaving a net amount (after giving effect to the $190.2 million of outstanding borrowings described above) of $156.5 million available for future borrowings; however, as of June 30, 2025, the Company was limited to additional borrowings of $66.8 million based on debt covenant compliance metrics. Any future credit extensions under the Amended 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.

Moreover, the Amended Credit Agreement provides for a sublimit under the existing $350.0 million revolving commitments in an aggregate amount of $50.0 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 of $50.0 million may be lowered from time to time pursuant to the terms of the Amended Credit Agreement. The existing swing line sublimit and letter of credit sublimit under the Amended Credit Agreement remain available to the U.S. Borrower (and not to Adtran Networks). Otherwise, the loans under the Subline are subject to substantially the same terms and conditions under the Amended Credit Agreement (including with respect to the interest rate and maturity date) as the other existing revolving commitments.

All U.S. borrowings under the Amended Credit Agreement bear interest at a rate tied to the Base Rate (as defined in the Amended Credit Agreement) or SOFR, at the Company’s option, and all E.U. borrowings bear interest at a rate tied to the Euro Interbank Offered Rate as administered by the European Money Markets Institute (or a comparable or successor administrator approved by the Administrative Agent), in each case plus applicable margins which vary based on the consolidated net leverage ratio of the Company and its subsidiaries as determined pursuant to the terms of the Amended Credit Agreement. Default interest is 2.00% per annum in excess of the rate otherwise applicable. As of June 30, 2025, the weighted average interest rate on our revolving credit agreements was 8.55%.

The Company made certain representations and warranties to the lenders in the Amended Credit Agreement that are customary for credit arrangements of this type. The Company also agreed 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,” as defined below) and a Consolidated Fixed Charge Coverage Ratio of 1.25x (as such ratios are defined in the Amended Credit Agreement). A “Springing Covenant Event” occurs when 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 August 9, 2023 have been tendered and purchased by the Company. 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 a Springing Covenant Period, the Company’s leverage ratios are increased. In addition, the cash and cash equivalents of the credit parties must be at least $50.0 million and the cash and cash equivalents of the Company and its subsidiaries must be at least $70.0 million. As of June 30, 2025, the Company was in compliance with all covenants.

The Amended Credit Agreement 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 Amended Credit Agreement.

All obligations under the Amended Credit Agreement (including under the Subline) are guaranteed by the U.S. Borrower and certain subsidiaries of the U.S. Borrower (“Full Facility Guarantors”). To secure such guarantees, the U.S. Borrower 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 the U.S. Borrower has granted mortgages in favor of the Administrative Agent over certain owned real estate assets. Certain of Adtran Networks' subsidiaries (the “Subline Guarantors”) have also provided a guarantee solely of the obligations in respect of the Subline. Furthermore, to secure such guarantees, Adtran Networks and the Subline Guarantors have granted security interests in favor of the Administrative Agent over substantially all of their tangible and intangible assets. 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.

v3.25.2
Employee Benefit Plans
 6 Months Ended
Jun. 30, 2025
Retirement Benefits [Abstract]  
Employee Benefit Plans

11. EMPLOYEE BENEFIT PLANS

Pension Benefit Plan

We maintain a defined benefit pension plan covering employees in certain foreign countries. The net amounts recognized in the Condensed Consolidated Balance Sheets for the unfunded pension liability as of June 30, 2025 and December 31, 2024 were as follows:

 

 

 

 

 

As of

 

 

As of

 

(In thousands)

 

Balance Sheet Location

 

June 30, 2025

 

 

December 31, 2024

 

Non-current pension asset

 

Other non-current assets

 

$

588

 

 

$

517

 

Current pension liability

 

Accrued wages and benefits

 

 

(345

)

 

 

(303

)

Non-current pension liability

 

Non-current pension liability

 

 

(9,686

)

 

 

(8,983

)

Total

 

 

 

$

(9,443

)

 

$

(8,769

)

 

The Company's defined benefit pension liability represents the projected benefit obligation, which is the actuarial present value of the vested benefits to which the employee is currently entitled based on the employee's expected date of retirement.

The following table summarizes the components of net periodic pension cost related to the Company's defined benefit pension plans:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(In thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Service cost

 

$

421

 

 

$

333

 

 

$

810

 

 

$

673

 

Interest cost

 

 

525

 

 

 

281

 

 

 

1,011

 

 

 

566

 

Expected return on plan assets

 

 

(635

)

 

 

(354

)

 

 

(1,223

)

 

 

(713

)

Amortization of actuarial losses

 

 

12

 

 

 

2

 

 

 

23

 

 

 

5

 

Net periodic pension cost

 

$

323

 

 

$

262

 

 

$

621

 

 

$

531

 

 

The components of net periodic pension cost, other than the service cost component, are included in other (expense) income, net in the Condensed Consolidated Statements of Loss. Service cost is included in cost of revenue, selling, general and administrative expenses and research and development expenses in the Condensed Consolidated Statements of Loss. The Company made contributions to the defined benefit pension plans totaling $2.0 million and $2.2 million during the six months ended June 30, 2025 and 2024, respectively. Contributions to the defined benefit pension plans for the remainder of 2025 will be limited to benefit payments to retirees which are paid out of the operating cash flows of the Company and are expected to be approximately $1.5 million.
v3.25.2
Equity
 6 Months Ended
Jun. 30, 2025
Equity [Abstract]  
Equity

12. EQUITY

Accumulated Other Comprehensive Income

The following tables present the changes in accumulated other comprehensive income, net of tax, by component:

 

 

Three Months Ended June 30, 2025

 

(In thousands)

 

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

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency Translation
Adjustments

 

 

ASU 2018-02 Adoption

 

 

Total

 

Balance as of March 31, 2025

 

$

(382

)

 

$

(896

)

 

$

32,525

 

 

$

385

 

 

$

31,632

 

Other comprehensive (loss) income before
   reclassifications

 

 

(28

)

 

 

—

 

 

 

46,455

 

 

 

—

 

 

 

46,427

 

Amounts reclassified from accumulated other
   comprehensive income

 

 

28

 

 

 

268

 

 

 

—

 

 

 

—

 

 

 

296

 

Net current period other comprehensive income

 

 

—

 

 

 

268

 

 

 

46,455

 

 

 

—

 

 

 

46,723

 

Balance as of June 30, 2025

 

$

(382

)

 

$

(628

)

 

$

78,980

 

 

$

385

 

 

$

78,355

 

 

 

 

Three Months Ended June 30, 2024

 

(In thousands)

 

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

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency Translation
Adjustments

 

 

ASU 2018-02 Adoption

 

 

Total

 

Balance as of March 31, 2024

 

$

(382

)

 

$

(2,566

)

 

$

32,260

 

 

$

385

 

 

$

29,697

 

Other comprehensive loss before
   reclassifications

 

 

(5

)

 

 

—

 

 

 

(1,375

)

 

 

—

 

 

 

(1,380

)

Amounts reclassified from accumulated other
   comprehensive income (loss)

 

 

5

 

 

 

(7

)

 

 

—

 

 

 

—

 

 

 

(2

)

Net current period other comprehensive loss

 

 

—

 

 

 

(7

)

 

 

(1,375

)

 

 

—

 

 

 

(1,382

)

Balance as of June 30, 2024 (Restated)

 

$

(382

)

 

$

(2,573

)

 

$

30,885

 

 

$

385

 

 

$

28,315

 

 

 

 

 

Six Months Ended June 30, 2025

 

(In thousands)

 

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

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency Translation
Adjustments

 

 

ASU 2018-02 Adoption

 

 

Total

 

Balance as of December 31, 2024

 

$

(382

)

 

$

(1,027

)

 

$

12,278

 

 

$

385

 

 

$

11,254

 

Other comprehensive income before
   reclassifications

 

 

20

 

 

 

—

 

 

 

66,702

 

 

 

—

 

 

 

66,722

 

Amounts reclassified from accumulated other
   comprehensive (loss) income

 

 

(20

)

 

 

399

 

 

 

—

 

 

 

—

 

 

 

379

 

Net current period other comprehensive income

 

 

—

 

 

 

399

 

 

 

66,702

 

 

 

—

 

 

 

67,101

 

Balance as of June 30, 2025

 

$

(382

)

 

$

(628

)

 

$

78,980

 

 

$

385

 

 

$

78,355

 

 

 

 

Six Months Ended June 30, 2024

 

(In thousands)

 

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

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency Translation
Adjustments

 

 

ASU 2018-02 Adoption

 

 

Total

 

Balance as of December 31, 2023

 

$

(382

)

 

$

(2,506

)

 

$

50,033

 

 

$

385

 

 

$

47,530

 

Other comprehensive loss before reclassifications

 

 

(124

)

 

 

—

 

 

 

(19,148

)

 

 

—

 

 

 

(19,272

)

Amounts reclassified from accumulated other
   comprehensive income (loss)

 

 

124

 

 

 

(67

)

 

 

—

 

 

 

—

 

 

 

57

 

Net current period other comprehensive loss

 

 

—

 

 

 

(67

)

 

 

(19,148

)

 

 

—

 

 

 

(19,215

)

Balance as of June 30, 2024 (Restated)

 

$

(382

)

 

$

(2,573

)

 

$

30,885

 

 

$

385

 

 

$

28,315

 

 

The following tables present the details of reclassifications out of accumulated other comprehensive income:

 

 

 

Three Months Ended June 30, 2025

(In thousands)

 

Amount
Reclassified
from
Accumulated
Other
Comprehensive
Income

 

 

Affected Line Item in the
Statement Where Net
Loss Is Presented

Unrealized gain on available-for-sale securities:

 

 

 

 

 

Net realized gain on sales of securities

 

$

38

 

 

Net investment gain

Defined benefit plan adjustments – actuarial gain

 

 

388

 

 

(1)

Total reclassifications for the period, before tax

 

 

426

 

 

 

Tax expense

 

 

(130

)

 

 

Total reclassifications for the period, net of tax

 

$

296

 

 

 
(1)
A part of the computation of net periodic pension cost, which is included in other (expense) income, net in the Condensed Consolidated Statements of Loss.

 

 

Three Months Ended June 30, 2024

(In thousands)

 

Amount
Reclassified
from
Accumulated
Other
Comprehensive
Loss

 

 

Affected Line Item in the
Statement Where Net
Loss Is Presented

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

 

 

 

 

 

Net realized gain on sales of securities

 

$

7

 

 

Net investment gain

Defined benefit plan adjustments – actuarial loss

 

 

(10

)

 

(1)

Total reclassifications for the period, before tax

 

 

(3

)

 

 

Tax benefit

 

 

1

 

 

 

Total reclassifications for the period, net of tax

 

$

(2

)

 

 
(1)
A part of the computation of net periodic pension cost, which is included in other (expense) income, net in the Condensed Consolidated Statements of Loss.

 

 

 

 

Six Months Ended June 30, 2025

(In thousands)

 

Amount
Reclassified
from
Accumulated
Other
Comprehensive
Income

 

 

Affected Line Item in the
Statement Where Net Loss
Is Presented

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

 

 

 

 

 

Net realized loss on sales of securities

 

$

(27

)

 

Net investment gain

Defined benefit plan adjustments – actuarial gain

 

 

578

 

 

(1)

Total reclassifications for the period, before tax

 

 

551

 

 

 

Tax expense

 

 

(172

)

 

 

Total reclassifications for the period, net of tax

 

$

379

 

 

 
(1)
A part of the computation of net periodic pension cost, which is included in other (expense) income, net in the Condensed Consolidated Statements of Loss.

 

 

 

Six Months Ended June 30, 2024

(In thousands)

 

Amount
Reclassified
from
Accumulated
Other
Comprehensive
Income

 

 

Affected Line Item in the
Statement Where Net Loss
Is Presented

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

 

 

 

 

 

Net realized gain on sales of securities

 

$

168

 

 

Net investment gain

Defined benefit plan adjustments – actuarial loss

 

 

(97

)

 

(1)

Total reclassifications for the period, before tax

 

 

71

 

 

 

Tax expense

 

 

(14

)

 

 

Total reclassifications for the period, net of tax

 

$

57

 

 

 
(1)
A part of the computation of net periodic pension cost, which is included in other (expense) income, net in the Condensed Consolidated Statements of Loss.

The following table presents the tax effects related to the change in each component of other comprehensive income (loss):

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

June 30, 2025

 

 

June 30, 2024
(Restated)

 

(In thousands)

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

Unrealized loss on available-for-sale securities

 

$

(38

)

 

$

10

 

 

$

(28

)

 

$

(7

)

 

$

2

 

 

$

(5

)

Reclassification adjustment for amounts related to available-for-sale investments included in net gain

 

 

38

 

 

 

(10

)

 

 

28

 

 

 

7

 

 

 

(2

)

 

 

5

 

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

 

 

388

 

 

 

(120

)

 

 

268

 

 

 

(10

)

 

 

3

 

 

 

(7

)

Foreign currency translation adjustments

 

 

46,455

 

 

 

—

 

 

 

46,455

 

 

 

(1,375

)

 

 

—

 

 

 

(1,375

)

Total Other Comprehensive Income (Loss)

 

$

46,843

 

 

$

(120

)

 

$

46,723

 

 

$

(1,385

)

 

$

3

 

 

$

(1,382

)

 

 

 

Six Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2025

 

 

June 30, 2024
(Restated)

 

(In thousands)

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

Unrealized gain (loss) on available-for-sale securities

 

$

27

 

 

$

(7

)

 

$

20

 

 

$

(168

)

 

$

44

 

 

$

(124

)

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

 

 

(27

)

 

 

7

 

 

 

(20

)

 

 

168

 

 

 

(44

)

 

 

124

 

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

 

 

578

 

 

 

(179

)

 

 

399

 

 

 

(97

)

 

 

30

 

 

 

(67

)

Foreign currency translation adjustments

 

 

66,702

 

 

 

—

 

 

 

66,702

 

 

 

(19,148

)

 

 

—

 

 

 

(19,148

)

Total Other Comprehensive Income (Loss)

 

$

67,280

 

 

$

(179

)

 

$

67,101

 

 

$

(19,245

)

 

$

30

 

 

$

(19,215

)

 
v3.25.2
Redeemable Non-controlling Interest
 6 Months Ended
Jun. 30, 2025
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract]  
Redeemable Non-controlling Interest

13. REDEEMABLE NON-CONTROLLING INTEREST

As of June 30, 2025, the non-controlling Adtran Networks stockholders’ equity ownership percentage in Adtran Networks was approximately 31.4%.

The following table summarizes the redeemable non-controlling interest activity for the six months ended June 30, 2025 and for the year ended December 31, 2024:

 

 

 

Six Months Ended

 

 

For the Year Ended

 

 

(In thousands)

 

June 30, 2025

 

 

December 31, 2024

 

 

Balance at beginning of period

 

$

422,943

 

 

$

443,327

 

 

Redemption of redeemable non-controlling interest

 

 

(20,854

)

 

 

(20,384

)

 

Net income attributable to redeemable non-controlling interests

 

 

4,592

 

 

 

9,824

 

 

Annual recurring compensation earned

 

 

(4,592

)

 

 

(9,824

)

 

Balance at end of period

 

$

402,089

 

 

$

422,943

 

 

Annual Recurring Compensation payable on untendered outstanding shares under the DPLTA must be recognized as it is accrued. For the three and six months ended June 30, 2025, we have accrued $2.4 million and $4.8 million, respectively, and for the year ended December 31, 2024, the Company accrued $9.8 million, representing the portion of the annual recurring cash compensation to the non-controlling shareholders during such periods. The 2024 Annual Recurring Compensation was paid on July 1, 2025, after the ordinary general shareholders' meeting of Adtran Networks on June 27, 2025. The 2025 Annual Recurring Compensation accrual will be paid after the ordinary general shareholders' meeting of Adtran Networks in 2026.

v3.25.2
Loss per Share
 6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Loss Per Share

14. LOSS PER SHARE

The calculation of basic and diluted loss per share is as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(In thousands, except per share amounts)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

 

(Restated)

 

 

 

 

 

(Restated)

 

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to ADTRAN Holdings, Inc.

 

$

(20,531

)

 

$

(49,667

)

 

$

(31,798

)

 

$

(380,432

)

Effect of redemption of RNCI

 

 

1,494

 

 

 

—

 

 

 

1,491

 

 

 

—

 

Net loss attributable to ADTRAN Holdings, Inc. common stockholders

 

$

(19,037

)

 

$

(49,667

)

 

$

(30,307

)

 

$

(380,432

)

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares – basic

 

 

79,748

 

 

 

78,852

 

 

 

79,642

 

 

 

78,803

 

Effect of dilutive securities

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

PSUs, RSUs and restricted stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Weighted average number of shares – diluted

 

 

79,748

 

 

 

78,852

 

 

 

79,642

 

 

 

78,803

 

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

 

$

(0.24

)

 

$

(0.63

)

 

$

(0.38

)

 

$

(4.83

)

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

 

$

(0.24

)

 

$

(0.63

)

 

$

(0.38

)

 

$

(4.83

)

For the three months ended June 30, 2025 and 2024, 0.5 million and 1.4 million, respectively, and for the six months ended June 30, 2025 and 2024, 0.3 million and 1.3 million, respectively, of unvested PSUs, RSUs and restricted stock were excluded from the calculation of diluted earnings per share due to their anti-dilutive effect.

For the three months ended June 30, 2025 and 2024, 1.2 million and 5.0 million outstanding stock options, respectively, and for the six months ended June 30, 2025 and 2024, 0.9 million and 4.2 million outstanding stock options, respectively, were anti-dilutive and excluded from the calculation of loss per share under the treasury stock method.
v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information

15. SEGMENT INFORMATION

The chief operating decision maker, the Company's CEO, 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 & 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 & 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, other income (expense), net and income tax benefit are reported on a consolidated basis only. There is no inter-segment revenue. Asset information by reportable segment is not produced and, therefore, is not reported.

The following tables present information about the revenue and gross profit of the Company's reportable segments:

 

 

Three Months Ended

 

 

 

June 30, 2025

 

 

June 30, 2024

 

(In thousands)

 

Revenue

 

 

Cost of Revenue

 

 

Gross Profit

 

 

Revenue

 

 

Cost of Revenue

 

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Restated)

 

 

(Restated)

 

Network Solutions

 

$

219,498

 

 

$

147,321

 

 

$

72,177

 

 

$

179,194

 

 

$

124,916

 

 

$

54,278

 

Services & Support

 

 

45,570

 

 

 

18,823

 

 

 

26,747

 

 

 

46,797

 

 

 

19,816

 

 

 

26,981

 

Total

 

$

265,068

 

 

$

166,144

 

 

$

98,924

 

 

$

225,991

 

 

$

144,732

 

 

$

81,259

 

 

 

 

Six Months Ended

 

 

 

June 30, 2025

 

 

June 30, 2024

 

(In thousands)

 

Revenue

 

 

Cost of Revenue

 

 

Gross Profit

 

 

Revenue

 

 

Cost of Revenue

 

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Restated)

 

 

(Restated)

 

Network Solutions

 

$

421,715

 

 

$

281,562

 

 

$

140,153

 

 

$

360,467

 

 

$

261,964

 

 

$

98,503

 

Services & Support

 

 

91,097

 

 

 

37,150

 

 

 

53,947

 

 

 

91,697

 

 

 

38,626

 

 

 

53,071

 

Total

 

$

512,812

 

 

$

318,712

 

 

$

194,100

 

 

$

452,164

 

 

$

300,590

 

 

$

151,574

 

For the three months ended June 30, 2025 and 2024, $1.3 million and $1.5 million, respectively, of depreciation expense was included in gross profit for our Network Solutions segment. For the six months ended June 30, 2025 and 2024, $2.6 million and $3.1 million, respectively, of depreciation expense was included in gross profit for our Network Solutions segment. For the three months ended June 30, 2025 and 2024, $0.1 million and $0.1 million, respectively, of depreciation expense was included in gross profit for our Services & Support segment. For the six months ended June 30, 2025 and 2024, $0.1 million and $0.1 million, respectively, of depreciation expense was included in gross profit for our Services & Support segment.

Revenue by Geographic Area

The following table presents revenue information by geographic area:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(In thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

United States

 

$

120,340

 

 

$

107,604

 

 

$

223,529

 

 

$

190,894

 

United Kingdom

 

 

56,249

 

 

 

43,560

 

 

 

119,158

 

 

 

96,300

 

Germany

 

 

31,205

 

 

 

24,542

 

 

 

58,393

 

 

 

64,283

 

Other international

 

 

57,274

 

 

 

50,285

 

 

 

111,732

 

 

 

100,687

 

Total

 

$

265,068

 

 

$

225,991

 

 

$

512,812

 

 

$

452,164

 
v3.25.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

16. 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 which were originally filed with the Landgericht Meiningen (Meiningen Regional Court) on February 3, 2023. 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 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 2.27% as of June 30, 2025. Assuming all the minority holders of currently outstanding Adtran Networks shares were to elect the second option, the Company would be obligated to make aggregate Exit Compensation payments, including guaranteed interest, of approximately €326.8 million or $385.2 million, based on an exchange rate as of June 30, 2025, and reflecting interest accrued through June 30, 2025, 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 court has decided a procedural matter in the DPLTA appraisal proceedings; the parties may or may not choose to appeal such decision, if able, and the proceeding for the trial on the merits of the DPLTA will continue. It is expected to take a minimum of 12 months for a ruling of the court on the merits and such ruling will most 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.

Our obligation to pay Annual Recurring Compensation under the DPLTA is a continuing payment obligation, which will amount to approximately €8.5 million (or $10.0 million based on the exchange rate as of June 30, 2025) 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 2024 fiscal year, Adtran Networks’ ordinary general shareholders meeting occurred on June 27, 2025 and, therefore, the Annual Recurring Compensation was paid on July 1, 2025. During the three months ended June 30, 2025 and 2024, we accrued $2.4 million and $2.5 million, respectively, in Annual Recurring Compensation. During the six months ended June 30, 2025 and 2024, we accrued $4.8 million and $5.0 million, respectively, in Annual Recurring Compensation, which was reflected as an increase to retained deficit.

For the three and six months ended June 30, 2025, approximately 0.9 million shares, of Adtran Networks stock were tendered to the Company. This resulted in total Exit Compensation payments of approximately €16.9 million, or $19.4 million based on the applicable exchange rates at the time of the transactions, being paid to Adtran Networks shareholders. For the three and six months ended June 30, 2024, approximately one thousand shares of Adtran Networks stock were tendered to the Company. This resulted in Exit Compensation payments of approximately €19 thousand and €23 thousand, respectively, or $20 thousand and $25 thousand, respectively, based on the applicable exchange rates at the time of the transactions, 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 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 applies to the net loss generated by Adtran Networks in 2024, and it will apply to any net loss generated by Adtran Networks in 2025.

Performance Bonds

Certain contracts, customers and jurisdictions in which we do business require us to provide various guarantees of performance such as bid bonds, performance bonds and customs bonds. As of June 30, 2025 and December 31, 2024, we had commitments related to these bonds totaling $16.9 million and $15.7 million, respectively, which expire at various dates through April 2029. In general, we would only be liable for the amount of these guarantees in the event of default under each contract, the probability of which we believe is remote.

Purchase Obligations

The Company purchases components from a variety of suppliers and uses contract manufacturers to provide manufacturing services for our products. Our inventory purchase obligations are for product manufacturing requirements, as well as for commitments 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 June 30, 2025, purchase obligations totaled $192.7 million.
v3.25.2
Restructuring
 6 Months Ended
Jun. 30, 2025
Restructuring and Related Activities [Abstract]  
Restructuring

17. RESTRUCTURING

On November 6, 2023, due to the uncertainty around the then current macroeconomic environment and its impact on customer spending levels, the Company’s management decided to implement a Business Efficiency Program targeting the reduction of ongoing operating expenses and focusing on capital efficiency. This included 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 in Huntsville), inventory write downs from product discontinuances, and the suspension of the quarterly dividend. The Business Efficiency Program was completed as of December 31, 2024.

During the three and six months ended June 30, 2024, we recognized $17.5 million and $34.6 million of costs related to the Business Efficiency Program, respectively. The costs recognized during the six months ended June 30, 2024, included charges of $8.9 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 $4.8 million relates to other charges, and are included in cost of revenue in the Condensed Consolidated Statements of Loss. Although the Company did not incur any additional Business Efficiency Program costs during the three and six months ended June 30, 2025, the Company reduced previously accrued costs by $0.3 million during the three and six months ended June 30, 2025.

A reconciliation of the beginning and ending restructuring liabilities, which is included in accrued wages and benefits and accounts payable in the Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024, is as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

(In thousands)

 

June 30, 2025

 

 

June 30, 2025

 

Balance at beginning of period

 

$

3,064

 

 

$

10,336

 

Less: Adjusted accrued costs

 

 

(284

)

 

 

(284

)

Less: Amounts paid

 

 

(139

)

 

 

(7,411

)

Balance as of June 30, 2025

 

$

2,641

 

 

$

2,641

 

 

 

 

For the Year Ended

 

(In thousands)

 

December 31, 2024

 

Balance as of December 31, 2023

 

$

8,309

 

Plus: Amounts charged to cost and expense

 

 

40,545

 

Less: Amounts paid

 

 

(38,518

)

Balance as of December 31, 2024

 

$

10,336

 

Restructuring expenses included in the Condensed Consolidated Statements of Loss are for the three and six months ended June 30, 2025 and 2024:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(In thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Network Solutions - Cost of revenue

 

$

—

 

 

$

524

 

 

$

—

 

 

$

2,842

 

   Network Solutions - charges and inventory write-down

 

 

—

 

 

 

143

 

 

$

—

 

 

 

8,925

 

   Services & Support - Cost of revenue

 

 

—

 

 

 

2,121

 

 

 

—

 

 

 

2,268

 

Cost of revenue

 

$

—

 

 

$

2,788

 

 

$

—

 

 

$

14,035

 

Selling, general and administrative expenses

 

 

—

 

 

 

3,497

 

 

 

—

 

 

 

5,299

 

Research and development expenses

 

 

(284

)

 

 

11,245

 

 

 

(284

)

 

 

15,306

 

Total restructuring expenses

 

$

(284

)

 

$

17,530

 

 

$

(284

)

 

$

34,640

 

 

The following table represents the components of restructuring expenses by geographic area for the three and six months ended June 30, 2025 and 2024:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(In thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

United States

 

$

—

 

 

$

1,226

 

 

$

—

 

 

$

16,286

 

International

 

 

(284

)

 

 

16,304

 

 

 

(284

)

 

 

18,354

 

Total restructuring expenses

 

$

(284

)

 

$

17,530

 

 

$

(284

)

 

$

34,640

 
v3.25.2
Restatement of Quarterly Financial Information
 6 Months Ended
Jun. 30, 2025
Quarterly Financial Information Disclosure [Abstract]  
Restatement of Quarterly Financial Information

18. RESTATEMENT OF QUARTERLY FINANCIAL INFORMATION

As previously disclosed in our Form 10-K/A and as discussed in Note 1 “Summary of Significant Accounting Policies”, the following tables reflect the impact of errors and other previously identified immaterial errors to the specific line items presented in our previously reported (a) Condensed Consolidated Balance Sheets; (b) Condensed Consolidated Statements of Loss and Condensed Consolidated Statements of Comprehensive Loss; (c) Condensed Consolidated Statements of Changes in Equity and; (d) Condensed Consolidated Statements of Cash Flows as of and for the three and six months ended June 30, 2024.

 

 

 

 

As of June 30, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

111,185

 

 

$

—

 

 

$

111,185

 

Accounts receivable, less allowance for credit losses of $191 as of June 30, 2024

 

 

 

186,176

 

 

 

(1

)

 

 

186,175

 

Other receivables

 

 

 

11,436

 

 

 

—

 

 

 

11,436

 

Inventory, net

ADJ 3

 

 

287,860

 

 

 

(4,221

)

 

 

283,639

 

Income tax receivable

ADJ 4

 

 

13,050

 

 

 

(4,735

)

 

 

8,315

 

Prepaid expenses and other current assets

 

 

 

58,612

 

 

 

(3,188

)

 

 

55,424

 

Total Current Assets

 

 

 

668,319

 

 

 

(12,145

)

 

 

656,174

 

Property, plant and equipment, net

 

 

 

134,578

 

 

 

3,513

 

 

 

138,091

 

Goodwill

ADJ 4

 

 

54,897

 

 

 

—

 

 

 

54,897

 

Intangibles, net

 

 

 

290,793

 

 

 

—

 

 

 

290,793

 

Deferred tax assets

ADJ 4

 

 

24,931

 

 

 

4,000

 

 

 

28,931

 

Other non-current assets

 

 

 

87,105

 

 

 

—

 

 

 

87,105

 

Long-term investments

 

 

 

30,159

 

 

 

—

 

 

 

30,159

 

Total Assets

 

 

$

1,290,782

 

 

$

(4,632

)

 

$

1,286,150

 

LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

$

158,550

 

 

$

—

 

 

$

158,550

 

Unearned revenue

 

 

 

55,107

 

 

 

—

 

 

 

55,107

 

Accrued expenses and other liabilities

ADJ 1

 

 

36,307

 

 

 

(1,402

)

 

 

34,905

 

Accrued wages and benefits

 

 

 

37,520

 

 

 

118

 

 

 

37,638

 

Income tax payable, net

 

 

 

2,228

 

 

 

(20

)

 

 

2,208

 

Total Current Liabilities

 

 

 

289,712

 

 

 

(1,304

)

 

 

288,408

 

     Non-current revolving credit agreement outstanding

 

 

 

190,273

 

 

 

—

 

 

 

190,273

 

Deferred tax liabilities

ADJ 4

 

 

21,077

 

 

 

420

 

 

 

21,497

 

Non-current unearned revenue

 

 

 

26,584

 

 

 

—

 

 

 

26,584

 

Non-current pension liability

 

 

 

11,505

 

 

 

—

 

 

 

11,505

 

Deferred compensation liability

 

 

 

30,601

 

 

 

—

 

 

 

30,601

 

Non-current lease obligations

 

 

 

26,613

 

 

 

—

 

 

 

26,613

 

Other non-current liabilities

ADJ 1

 

 

34,445

 

 

 

(701

)

 

 

33,744

 

Total Liabilities

 

 

 

630,810

 

 

 

(1,585

)

 

 

629,225

 

Commitments and contingencies (see Note 16)

 

 

 

 

 

 

 

 

 

 

Redeemable Non-Controlling Interest

ADJ 2

 

 

439,743

 

 

 

3,554

 

 

 

443,297

 

Equity

 

 

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share; 200,000 shares authorized;
   79,121 shares issued and 78,855 outstanding as of June 30, 2024

 

 

 

791

 

 

 

—

 

 

 

791

 

Additional paid-in capital

 

 

 

802,737

 

 

 

(850

)

 

 

801,887

 

Accumulated other comprehensive income

ADJ 1, 3, 4

 

 

28,274

 

 

 

41

 

 

 

28,315

 

Retained deficit

ADJ 2, 3, 4

 

 

(606,375

)

 

 

(5,792

)

 

 

(612,167

)

Treasury stock at cost: 266 shares as of June 30, 2024

 

 

 

(5,198

)

 

 

—

 

 

 

(5,198

)

Total Equity

 

 

 

220,229

 

 

 

(6,601

)

 

 

213,628

 

Total Liabilities, Redeemable Non-Controlling Interest and Equity

 

 

$

1,290,782

 

 

$

(4,632

)

 

$

1,286,150

 

 

 

 

 

 

 

 

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

 

 

 

872

 

 

 

—

 

 

 

872

 

 

 

3,125

 

 

 

—

 

 

 

3,125

 

Other (expense) income, 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 attributable to non-controlling interest

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 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

)

 

 

 

 

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

 

 

(321,670

)

 

 

(6,565

)

 

 

(328,235

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Annual recurring compensation earned

 

 

(2,880

)

 

 

349

 

 

 

(2,531

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other comprehensive loss, net of tax

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(17,805

)

 

 

(28

)

 

 

(17,833

)

 

 

—

 

 

 

—

 

 

 

—

 

Deferred compensation adjustments, net of tax

 

 

3

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(368

)

 

 

—

 

 

 

(368

)

ADTRAN RSUs and restricted stock vested

 

 

(243

)

 

 

—

 

 

 

(243

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

ADTRAN stock options exercised

 

 

219

 

 

 

—

 

 

 

219

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

ADTRAN stock-based compensation expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,957

 

 

 

—

 

 

 

3,957

 

Redemption of redeemable non-controlling interest

 

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Foreign currency remeasurement of redeemable non-controlling interest

 

 

10,115

 

 

 

(10,115

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adtran Networks stock-based compensation expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

(10

)

 

 

(6

)

Balance as of March 31, 2024

 

$

(558,363

)

 

$

(4,129

)

 

$

(562,492

)

 

$

29,656

 

 

$

41

 

 

$

29,697

 

 

$

798,897

 

 

$

(846

)

 

$

798,051

 

Net loss

 

 

(47,011

)

 

 

(151

)

 

 

(47,162

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Annual recurring compensation earned

 

 

(2,854

)

 

 

350

 

 

 

(2,504

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other comprehensive loss, net of tax

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,382

)

 

 

—

 

 

 

(1,382

)

 

 

—

 

 

 

—

 

 

 

—

 

Deferred compensation adjustments, net of tax

 

 

(3

)

 

 

—

 

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

ADTRAN RSUs and restricted stock vested

 

 

(16

)

 

 

—

 

 

 

(16

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

ADTRAN stock-based compensation expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,836

 

 

 

—

 

 

 

3,836

 

Redemption of redeemable non-controlling interest

 

 

4

 

 

 

—

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Foreign currency remeasurement of redeemable non-controlling interest

 

 

1,868

 

 

 

(1,868

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adtran Networks stock-based compensation expense

 

 

—

 

 

 

6

 

 

 

6

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

(4

)

 

 

—

 

Balance as of June 30, 2024

 

$

(606,375

)

 

$

(5,792

)

 

$

(612,167

)

 

$

28,274

 

 

$

41

 

 

$

28,315

 

 

$

802,737

 

 

$

(850

)

 

$

801,887

 

 

 

 

 

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 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

 

Proceeds from receivables purchase agreement

 

 

 

68,556

 

 

 

—

 

 

 

68,556

 

Repayments on receivables purchase agreement

 

 

 

(66,399

)

 

 

—

 

 

 

(66,399

)

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

)

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

 
v3.25.2
Subsequent Events
 6 Months Ended
Jun. 30, 2025
Subsequent Events [Abstract]  
Subsequent Events

19. SUBSEQUENT EVENTS

Annual Recurring Compensation Payment in accordance with the DPLTA

On July 1, 2025, the Company paid $10.1 million with respect to the 2024 fiscal year Annual Recurring Compensation. See Note 13 for additional information on the Annual Recurring Compensation payment.

Enactment of the “One Big Beautiful Bill Act”

On July 4, 2025, the “One Big Beautiful Bill Act” (OBBBA) was signed into law, which constitutes the enactment date of the tax reconciliation bill under U.S. GAAP. Key corporate tax provisions include the restoration of 100% bonus depreciation, expensing of domestic research and experimental expenditures under Section 174A, modifications to Section 163(j) interest expense limitations, updates to the rules governing global intangible low-taxed income and foreign-derived intangible income, amendments to energy credits, and expanded Section 162(m) aggregation requirements. In accordance with ASC 740, the effects of the new tax law will be recognized in the period of enactment. The Company is currently evaluating the impact of the OBBBA, and an estimate of the financial effect is not yet available.

 
v3.25.2
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements of ADTRAN Holdings, Inc. and its subsidiaries have been prepared pursuant to the rules and regulations of the SEC applicable to interim financial information presented in Quarterly Reports on Form 10-Q. Accordingly, certain information and notes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements are not included herein. The December 31, 2024, Condensed Consolidated Balance Sheet is derived from audited financial statements but does not include all disclosures required by U.S. GAAP for annual financial statements.

In the opinion of management, all adjustments necessary to fairly state these interim statements have been recorded and are of a normal and recurring nature. The results of operations for an interim period are not necessarily indicative of the results for the full year. The interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in ADTRAN Holdings, Inc. Amendment No. 1 to the Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on May 20, 2025 ("2024 Form 10-K/A").
Revision of Previously Issued Financial Statements

Restatement of Previously Issued Financial Statements

As discussed in the financial statements as of and for the year ended December 31, 2024 included in our 2024 Form 10-K/A, we identified errors in our previously issued financial statements related to the historical accounting for certain inventory and cost of goods sold transactions (“Adjustment”). The affected periods included the annual periods ended December 31, 2023 and 2024 and the interim periods ended March 31, 2024, June 30, 2024 and September 30, 2024.

In connection with the identification of the Adjustment, the Audit Committee oversaw 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, it was 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 Annual Report on Form 10-K. As described in Part I, Item 4 of this report, the Company is taking certain remedial actions to address the material weaknesses in its internal controls associated with these findings. On August 4, 2025, we received a letter from the Atlanta regional office of the SEC in connection with a non-public, fact-finding inquiry, requesting that we voluntarily provide information regarding the internal investigation, which we will respond to accordingly.

The identified errors referenced above impacted the Condensed Consolidated Financial Statements as of and for the three and six months ended June 30, 2024, among other periods as previously disclosed. Below is a summary description of the significant errors in the Company's Condensed Consolidated Financial Statements as of and for the three and six months ended June 30, 2024:

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 RNCI each quarter-end at the current exchange rate of euros to U.S. Dollar. The Company treated the RNCI 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.

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 the June 30, 2024 financial statements and therefore, we have restated those

financial statements herein. Furthermore, we made adjustments to correct for other previously identified immaterial errors. The Company has also restated impacted amounts within the accompanying footnotes to the Condensed Consolidated Financial Statements. See Note 18 for further information about the restatement.
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, currency fluctuations and political tensions as of June 30, 2025, 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.
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, "Disaggregation of Income Statement Expenses (DISE) (Topic 220): Improvements to Income Statement Disclosures", which applies to all public business entities (PBEs) 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 for annual periods beginning after December 15, 2026, and 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 FASB issued 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

There are currently no recently adopted accounting pronouncements that are expected to have a material effect on the Condensed Consolidated Financial Statements.
v3.25.2
Revenue (Tables)
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Disaggregate of Revenue by Reportable Segment and Revenue Category

The following tables disaggregate revenue by reportable segment and revenue category:

 

 

 

Three Months Ended

 

 

 

June 30, 2025

 

 

June 30, 2024

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

75,537

 

 

$

8,221

 

 

$

83,758

 

 

$

73,615

 

 

$

8,782

 

 

$

82,397

 

Access & Aggregation Solutions

 

 

77,353

 

 

 

13,859

 

 

 

91,212

 

 

 

54,112

 

 

 

15,795

 

 

 

69,907

 

Optical Networking Solutions

 

 

66,608

 

 

 

23,490

 

 

 

90,098

 

 

 

51,467

 

 

 

22,220

 

 

 

73,687

 

Total

 

$

219,498

 

 

$

45,570

 

 

$

265,068

 

 

$

179,194

 

 

$

46,797

 

 

$

225,991

 

 

 

Six Months Ended

 

 

 

June 30, 2025

 

 

June 30, 2024

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

147,285

 

 

$

16,884

 

 

$

164,169

 

 

$

133,984

 

 

$

18,181

 

 

$

152,165

 

Access & Aggregation Solutions

 

 

153,200

 

 

 

27,148

 

 

$

180,348

 

 

 

121,889

 

 

 

29,330

 

 

$

151,219

 

Optical Networking Solutions

 

 

121,230

 

 

 

47,065

 

 

$

168,295

 

 

 

104,594

 

 

 

44,186

 

 

$

148,780

 

Total

 

$

421,715

 

 

$

91,097

 

 

$

512,812

 

 

$

360,467

 

 

$

91,697

 

 

$

452,164

 
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:

 

 

 

As of

 

 

As of

 

(In thousands)

 

June 30, 2025

 

 

December 31, 2024

 

Accounts receivable, net

 

$

164,768

 

 

$

178,030

 

Contract assets(1)

 

$

510

 

 

$

631

 

Unearned revenue

 

$

62,695

 

 

$

52,701

 

Non-current unearned revenue

 

$

24,429

 

 

$

22,065

 

 

(1) Included in other receivables on the Condensed Consolidated Balance Sheets.
v3.25.2
Stock-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2025
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Stock-Based Compensation Expense Related to Stock Options, PSUs, RSUs and Restricted Stock

The following table summarizes the changes of the PSUs, RSUs and restricted stock outstanding during the six months ended June 30, 2025:

 

 

 

Number of
Shares
(in thousands)

 

 

Weighted Avg. Grant Date Fair Value
(per share)

 

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

 

 

2,335

 

 

$

13.22

 

PSUs, RSUs and restricted stock granted

 

 

1,278

 

 

$

10.35

 

PSUs, RSUs and restricted stock vested

 

 

(509

)

 

$

11.59

 

PSUs, RSUs and restricted stock forfeited

 

 

(148

)

 

$

11.06

 

Unvested PSUs, RSUs and restricted stock outstanding, June 30, 2025

 

 

2,956

 

 

$

11.44

 
Summary of Stock Options Outstanding

The following table summarizes the changes of the stock options outstanding that occurred during the six months ended June 30, 2025:

 

 

Number of
Stock Options
(in thousands)

 

 

Weighted Avg.
Exercise Price
(per share)

 

 

Weighted Avg.
Remaining
Contractual
Life
(in years)

 

 

Aggregate
Intrinsic Value
(in thousands)

 

Stock options outstanding, December 31, 2024

 

 

2,944

 

 

$

9.86

 

 

 

5.0

 

 

$

3,762

 

Stock options exercised

 

 

(172

)

 

$

6.76

 

 

 

 

 

 

 

Stock options forfeited

 

 

(98

)

 

$

9.62

 

 

 

 

 

 

 

Stock options expired

 

 

(17

)

 

$

14.12

 

 

 

 

 

 

 

Stock options outstanding, June 30, 2025

 

 

2,657

 

 

$

10.04

 

 

 

4.6

 

 

$

4,200

 

Stock options exercisable, June 30, 2025

 

 

1,750

 

 

$

9.82

 

 

 

3.5

 

 

$

2,141

 
v3.25.2
Long Term Investments (Tables)
 6 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Cash Equivalents and Investments held at Fair Value

 

 

 

 

 

Fair Value Measurements as of June 30, 2025 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 (1)

 

$

238

 

 

$

238

 

 

$

—

 

 

$

—

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities

 

 

1,072

 

 

 

1,072

 

 

 

—

 

 

 

—

 

Deferred compensation plan assets

 

 

32,044

 

 

 

32,044

 

 

 

—

 

 

 

—

 

Total

 

$

33,354

 

 

$

33,354

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

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 (1)

 

$

5,538

 

 

$

5,538

 

 

$

—

 

 

$

—

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities

 

 

1,068

 

 

 

1,068

 

 

 

—

 

 

 

—

 

Deferred compensation plan assets

 

 

30,991

 

 

 

30,991

 

 

 

—

 

 

 

—

 

Total

 

$

37,597

 

 

$

37,597

 

 

$

—

 

 

$

—

 

 

(1)
The money market fund balances of $0.2 million and $5.5 million as of June 30, 2025 and December 31, 2024, respectively, are included in cash and cash equivalents on the balance sheet.
v3.25.2
Inventory, Net (Tables)
 6 Months Ended
Jun. 30, 2025
Inventory Disclosure [Abstract]  
Components of Inventory

Inventory consisted of the following:

 

 

 

As of

 

 

As of

 

(In thousands)

 

June 30, 2025

 

 

December 31, 2024

 

Raw materials

 

$

85,043

 

 

$

106,384

 

Work in process

 

 

11,530

 

 

 

9,724

 

Finished goods

 

 

143,508

 

 

 

145,449

 

Total inventory, net

 

$

240,081

 

 

$

261,557

 
v3.25.2
Property, Plant and Equipment (Tables)
 6 Months Ended
Jun. 30, 2025
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment

Property, plant and equipment consisted of the following:

 

 

As of

 

 

As of

 

(In thousands)

 

June 30, 2025

 

 

December 31, 2024

 

Engineering and other equipment

 

$

197,351

 

 

$

184,694

 

Building

 

 

52,529

 

 

 

50,871

 

Computer hardware and software

 

 

121,704

 

 

 

113,241

 

Building and land improvements

 

 

43,557

 

 

 

39,979

 

Furniture and fixtures

 

 

21,468

 

 

 

20,994

 

Land

 

 

3,075

 

 

 

2,989

 

     Total property, plant and equipment

 

 

439,684

 

 

 

412,768

 

Less: accumulated depreciation and amortization

 

 

(327,748

)

 

 

(306,314

)

     Total property, plant and equipment, net

 

$

111,936

 

 

$

106,454

 
v3.25.2
Goodwill (Tables)
 6 Months Ended
Jun. 30, 2025
Goodwill Disclosure [Abstract]  
Summary of Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the six months ended June 30, 2025, are as follows:

 

(In thousands)

 

Services & Support

 

As of December 31, 2024

 

$

52,918

 

Foreign currency translation adjustments

 

 

7,276

 

As of June 30, 2025

 

$

60,194

 

 
v3.25.2
Intangible Assets, Net (Tables)
 6 Months Ended
Jun. 30, 2025
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Summary of Intangible Assets, Net

Intangible assets, net as of June 30, 2025, and December 31, 2024, consisted of the following:

 

 

 

 

As of June 30, 2025

 

 

As of December 31, 2024

 

(In thousands excluding years)

Weighted Average Useful Life
(in years)

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Book Value

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Book Value

 

Customer relationships

 

11.0

 

 

$

56,396

 

 

$

(22,927

)

 

$

33,469

 

 

$

51,165

 

 

$

(18,778

)

 

$

32,387

 

Backlog

 

1.7

 

 

 

61,298

 

 

 

(61,163

)

 

 

135

 

 

 

53,839

 

 

 

(52,258

)

 

 

1,581

 

Developed technology

 

7.8

 

 

 

413,360

 

 

 

(139,457

)

 

 

273,903

 

 

 

346,923

 

 

 

(99,588

)

 

 

247,335

 

Licensed technology

 

9.0

 

 

 

5,900

 

 

 

(4,780

)

 

 

1,120

 

 

 

5,900

 

 

 

(4,452

)

 

 

1,448

 

Licensed agreements

 

8.5

 

 

 

560

 

 

 

(427

)

 

 

133

 

 

 

560

 

 

 

(407

)

 

 

153

 

Trade names

 

2.8

 

 

 

31,710

 

 

 

(30,301

)

 

 

1,409

 

 

 

27,851

 

 

 

(25,862

)

 

 

1,989

 

     Total

 

 

 

$

569,224

 

 

$

(259,055

)

 

$

310,169

 

 

$

486,238

 

 

$

(201,345

)

 

$

284,893

 

 
Estimated Future Amortization Expense Related to Intangible Assets

Estimated future amortization expense of intangible assets is as follows:

 

 

 

As of

 

(In thousands)

 

June 30, 2025

 

2025

 

$

32,368

 

2026

 

 

64,772

 

2027

 

 

59,150

 

2028

 

 

49,561

 

2029

 

 

46,025

 

Thereafter

 

 

58,293

 

     Total

 

$

310,169

 

 
v3.25.2
Credit Agreements (Tables)
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Carrying Amount of Revolving Agreement

The carrying amounts of the Company's non-current revolving credit facility in its Condensed Consolidated Balance Sheets were as follows:

 

 

 

As of

 

 

As of

 

(In thousands)

 

June 30, 2025

 

 

December 31, 2024

 

Wells Fargo credit agreement

 

$

190,180

 

 

$

189,576

 

Total non-current revolving credit facility

 

$

190,180

 

 

$

189,576

 
v3.25.2
Employee Benefit Plans (Tables)
 6 Months Ended
Jun. 30, 2025
Retirement Benefits [Abstract]  
Schedule of the Components of Net Periodic Pension Cost

The following table summarizes the components of net periodic pension cost related to the Company's defined benefit pension plans:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(In thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Service cost

 

$

421

 

 

$

333

 

 

$

810

 

 

$

673

 

Interest cost

 

 

525

 

 

 

281

 

 

 

1,011

 

 

 

566

 

Expected return on plan assets

 

 

(635

)

 

 

(354

)

 

 

(1,223

)

 

 

(713

)

Amortization of actuarial losses

 

 

12

 

 

 

2

 

 

 

23

 

 

 

5

 

Net periodic pension cost

 

$

323

 

 

$

262

 

 

$

621

 

 

$

531

 
v3.25.2
Equity (Tables)
 6 Months Ended
Jun. 30, 2025
Equity [Abstract]  
Changes in Accumulated Other Comprehensive Income, Net of Tax, by Component

The following tables present the changes in accumulated other comprehensive income, net of tax, by component:

 

 

Three Months Ended June 30, 2025

 

(In thousands)

 

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

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency Translation
Adjustments

 

 

ASU 2018-02 Adoption

 

 

Total

 

Balance as of March 31, 2025

 

$

(382

)

 

$

(896

)

 

$

32,525

 

 

$

385

 

 

$

31,632

 

Other comprehensive (loss) income before
   reclassifications

 

 

(28

)

 

 

—

 

 

 

46,455

 

 

 

—

 

 

 

46,427

 

Amounts reclassified from accumulated other
   comprehensive income

 

 

28

 

 

 

268

 

 

 

—

 

 

 

—

 

 

 

296

 

Net current period other comprehensive income

 

 

—

 

 

 

268

 

 

 

46,455

 

 

 

—

 

 

 

46,723

 

Balance as of June 30, 2025

 

$

(382

)

 

$

(628

)

 

$

78,980

 

 

$

385

 

 

$

78,355

 

 

 

 

Three Months Ended June 30, 2024

 

(In thousands)

 

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

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency Translation
Adjustments

 

 

ASU 2018-02 Adoption

 

 

Total

 

Balance as of March 31, 2024

 

$

(382

)

 

$

(2,566

)

 

$

32,260

 

 

$

385

 

 

$

29,697

 

Other comprehensive loss before
   reclassifications

 

 

(5

)

 

 

—

 

 

 

(1,375

)

 

 

—

 

 

 

(1,380

)

Amounts reclassified from accumulated other
   comprehensive income (loss)

 

 

5

 

 

 

(7

)

 

 

—

 

 

 

—

 

 

 

(2

)

Net current period other comprehensive loss

 

 

—

 

 

 

(7

)

 

 

(1,375

)

 

 

—

 

 

 

(1,382

)

Balance as of June 30, 2024 (Restated)

 

$

(382

)

 

$

(2,573

)

 

$

30,885

 

 

$

385

 

 

$

28,315

 

 

 

 

 

Six Months Ended June 30, 2025

 

(In thousands)

 

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

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency Translation
Adjustments

 

 

ASU 2018-02 Adoption

 

 

Total

 

Balance as of December 31, 2024

 

$

(382

)

 

$

(1,027

)

 

$

12,278

 

 

$

385

 

 

$

11,254

 

Other comprehensive income before
   reclassifications

 

 

20

 

 

 

—

 

 

 

66,702

 

 

 

—

 

 

 

66,722

 

Amounts reclassified from accumulated other
   comprehensive (loss) income

 

 

(20

)

 

 

399

 

 

 

—

 

 

 

—

 

 

 

379

 

Net current period other comprehensive income

 

 

—

 

 

 

399

 

 

 

66,702

 

 

 

—

 

 

 

67,101

 

Balance as of June 30, 2025

 

$

(382

)

 

$

(628

)

 

$

78,980

 

 

$

385

 

 

$

78,355

 

 

 

 

Six Months Ended June 30, 2024

 

(In thousands)

 

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

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency Translation
Adjustments

 

 

ASU 2018-02 Adoption

 

 

Total

 

Balance as of December 31, 2023

 

$

(382

)

 

$

(2,506

)

 

$

50,033

 

 

$

385

 

 

$

47,530

 

Other comprehensive loss before reclassifications

 

 

(124

)

 

 

—

 

 

 

(19,148

)

 

 

—

 

 

 

(19,272

)

Amounts reclassified from accumulated other
   comprehensive income (loss)

 

 

124

 

 

 

(67

)

 

 

—

 

 

 

—

 

 

 

57

 

Net current period other comprehensive loss

 

 

—

 

 

 

(67

)

 

 

(19,148

)

 

 

—

 

 

 

(19,215

)

Balance as of June 30, 2024 (Restated)

 

$

(382

)

 

$

(2,573

)

 

$

30,885

 

 

$

385

 

 

$

28,315

 

 
Reclassifications Out of Accumulated Other Comprehensive Income

The following tables present the details of reclassifications out of accumulated other comprehensive income:

 

 

 

Three Months Ended June 30, 2025

(In thousands)

 

Amount
Reclassified
from
Accumulated
Other
Comprehensive
Income

 

 

Affected Line Item in the
Statement Where Net
Loss Is Presented

Unrealized gain on available-for-sale securities:

 

 

 

 

 

Net realized gain on sales of securities

 

$

38

 

 

Net investment gain

Defined benefit plan adjustments – actuarial gain

 

 

388

 

 

(1)

Total reclassifications for the period, before tax

 

 

426

 

 

 

Tax expense

 

 

(130

)

 

 

Total reclassifications for the period, net of tax

 

$

296

 

 

 
(1)
A part of the computation of net periodic pension cost, which is included in other (expense) income, net in the Condensed Consolidated Statements of Loss.

 

 

Three Months Ended June 30, 2024

(In thousands)

 

Amount
Reclassified
from
Accumulated
Other
Comprehensive
Loss

 

 

Affected Line Item in the
Statement Where Net
Loss Is Presented

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

 

 

 

 

 

Net realized gain on sales of securities

 

$

7

 

 

Net investment gain

Defined benefit plan adjustments – actuarial loss

 

 

(10

)

 

(1)

Total reclassifications for the period, before tax

 

 

(3

)

 

 

Tax benefit

 

 

1

 

 

 

Total reclassifications for the period, net of tax

 

$

(2

)

 

 
(1)
A part of the computation of net periodic pension cost, which is included in other (expense) income, net in the Condensed Consolidated Statements of Loss.

 

 

 

 

Six Months Ended June 30, 2025

(In thousands)

 

Amount
Reclassified
from
Accumulated
Other
Comprehensive
Income

 

 

Affected Line Item in the
Statement Where Net Loss
Is Presented

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

 

 

 

 

 

Net realized loss on sales of securities

 

$

(27

)

 

Net investment gain

Defined benefit plan adjustments – actuarial gain

 

 

578

 

 

(1)

Total reclassifications for the period, before tax

 

 

551

 

 

 

Tax expense

 

 

(172

)

 

 

Total reclassifications for the period, net of tax

 

$

379

 

 

 
(1)
A part of the computation of net periodic pension cost, which is included in other (expense) income, net in the Condensed Consolidated Statements of Loss.

 

 

 

Six Months Ended June 30, 2024

(In thousands)

 

Amount
Reclassified
from
Accumulated
Other
Comprehensive
Income

 

 

Affected Line Item in the
Statement Where Net Loss
Is Presented

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

 

 

 

 

 

Net realized gain on sales of securities

 

$

168

 

 

Net investment gain

Defined benefit plan adjustments – actuarial loss

 

 

(97

)

 

(1)

Total reclassifications for the period, before tax

 

 

71

 

 

 

Tax expense

 

 

(14

)

 

 

Total reclassifications for the period, net of tax

 

$

57

 

 

 
(1)
A part of the computation of net periodic pension cost, which is included in other (expense) income, net in the Condensed Consolidated Statements of Loss.
Tax Effects Related to the Change in Each Component of Other Comprehensive Income (Loss)

The following table presents the tax effects related to the change in each component of other comprehensive income (loss):

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

June 30, 2025

 

 

June 30, 2024
(Restated)

 

(In thousands)

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

Unrealized loss on available-for-sale securities

 

$

(38

)

 

$

10

 

 

$

(28

)

 

$

(7

)

 

$

2

 

 

$

(5

)

Reclassification adjustment for amounts related to available-for-sale investments included in net gain

 

 

38

 

 

 

(10

)

 

 

28

 

 

 

7

 

 

 

(2

)

 

 

5

 

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

 

 

388

 

 

 

(120

)

 

 

268

 

 

 

(10

)

 

 

3

 

 

 

(7

)

Foreign currency translation adjustments

 

 

46,455

 

 

 

—

 

 

 

46,455

 

 

 

(1,375

)

 

 

—

 

 

 

(1,375

)

Total Other Comprehensive Income (Loss)

 

$

46,843

 

 

$

(120

)

 

$

46,723

 

 

$

(1,385

)

 

$

3

 

 

$

(1,382

)

 

 

 

Six Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2025

 

 

June 30, 2024
(Restated)

 

(In thousands)

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

Unrealized gain (loss) on available-for-sale securities

 

$

27

 

 

$

(7

)

 

$

20

 

 

$

(168

)

 

$

44

 

 

$

(124

)

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

 

 

(27

)

 

 

7

 

 

 

(20

)

 

 

168

 

 

 

(44

)

 

 

124

 

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

 

 

578

 

 

 

(179

)

 

 

399

 

 

 

(97

)

 

 

30

 

 

 

(67

)

Foreign currency translation adjustments

 

 

66,702

 

 

 

—

 

 

 

66,702

 

 

 

(19,148

)

 

 

—

 

 

 

(19,148

)

Total Other Comprehensive Income (Loss)

 

$

67,280

 

 

$

(179

)

 

$

67,101

 

 

$

(19,245

)

 

$

30

 

 

$

(19,215

)

 
v3.25.2
Redeemable Non-controlling Interest (Tables)
 6 Months Ended
Jun. 30, 2025
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 six months ended June 30, 2025 and for the year ended December 31, 2024:

 

 

 

Six Months Ended

 

 

For the Year Ended

 

 

(In thousands)

 

June 30, 2025

 

 

December 31, 2024

 

 

Balance at beginning of period

 

$

422,943

 

 

$

443,327

 

 

Redemption of redeemable non-controlling interest

 

 

(20,854

)

 

 

(20,384

)

 

Net income attributable to redeemable non-controlling interests

 

 

4,592

 

 

 

9,824

 

 

Annual recurring compensation earned

 

 

(4,592

)

 

 

(9,824

)

 

Balance at end of period

 

$

402,089

 

 

$

422,943

 

 
v3.25.2
Loss per Share (Tables)
 6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Summary of Calculation of Basic and Diluted Loss Per Share

The calculation of basic and diluted loss per share is as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(In thousands, except per share amounts)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

 

(Restated)

 

 

 

 

 

(Restated)

 

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to ADTRAN Holdings, Inc.

 

$

(20,531

)

 

$

(49,667

)

 

$

(31,798

)

 

$

(380,432

)

Effect of redemption of RNCI

 

 

1,494

 

 

 

—

 

 

 

1,491

 

 

 

—

 

Net loss attributable to ADTRAN Holdings, Inc. common stockholders

 

$

(19,037

)

 

$

(49,667

)

 

$

(30,307

)

 

$

(380,432

)

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares – basic

 

 

79,748

 

 

 

78,852

 

 

 

79,642

 

 

 

78,803

 

Effect of dilutive securities

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

PSUs, RSUs and restricted stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Weighted average number of shares – diluted

 

 

79,748

 

 

 

78,852

 

 

 

79,642

 

 

 

78,803

 

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

 

$

(0.24

)

 

$

(0.63

)

 

$

(0.38

)

 

$

(4.83

)

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

 

$

(0.24

)

 

$

(0.63

)

 

$

(0.38

)

 

$

(4.83

)
v3.25.2
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Revenue and Gross Profit of Reportable Segments

The following tables present information about the revenue and gross profit of the Company's reportable segments:

 

 

Three Months Ended

 

 

 

June 30, 2025

 

 

June 30, 2024

 

(In thousands)

 

Revenue

 

 

Cost of Revenue

 

 

Gross Profit

 

 

Revenue

 

 

Cost of Revenue

 

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Restated)

 

 

(Restated)

 

Network Solutions

 

$

219,498

 

 

$

147,321

 

 

$

72,177

 

 

$

179,194

 

 

$

124,916

 

 

$

54,278

 

Services & Support

 

 

45,570

 

 

 

18,823

 

 

 

26,747

 

 

 

46,797

 

 

 

19,816

 

 

 

26,981

 

Total

 

$

265,068

 

 

$

166,144

 

 

$

98,924

 

 

$

225,991

 

 

$

144,732

 

 

$

81,259

 

 

 

 

Six Months Ended

 

 

 

June 30, 2025

 

 

June 30, 2024

 

(In thousands)

 

Revenue

 

 

Cost of Revenue

 

 

Gross Profit

 

 

Revenue

 

 

Cost of Revenue

 

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Restated)

 

 

(Restated)

 

Network Solutions

 

$

421,715

 

 

$

281,562

 

 

$

140,153

 

 

$

360,467

 

 

$

261,964

 

 

$

98,503

 

Services & Support

 

 

91,097

 

 

 

37,150

 

 

 

53,947

 

 

 

91,697

 

 

 

38,626

 

 

 

53,071

 

Total

 

$

512,812

 

 

$

318,712

 

 

$

194,100

 

 

$

452,164

 

 

$

300,590

 

 

$

151,574

 
Revenue Information by Geographic Area

The following table presents revenue information by geographic area:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(In thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

United States

 

$

120,340

 

 

$

107,604

 

 

$

223,529

 

 

$

190,894

 

United Kingdom

 

 

56,249

 

 

 

43,560

 

 

 

119,158

 

 

 

96,300

 

Germany

 

 

31,205

 

 

 

24,542

 

 

 

58,393

 

 

 

64,283

 

Other international

 

 

57,274

 

 

 

50,285

 

 

 

111,732

 

 

 

100,687

 

Total

 

$

265,068

 

 

$

225,991

 

 

$

512,812

 

 

$

452,164

 
v3.25.2
Restructuring (Tables)
 6 Months Ended
Jun. 30, 2025
Restructuring and Related Activities [Abstract]  
Schedule of Reconciliation of Restructuring Liabilities

 

 

 

Three Months Ended

 

 

Six Months Ended

 

(In thousands)

 

June 30, 2025

 

 

June 30, 2025

 

Balance at beginning of period

 

$

3,064

 

 

$

10,336

 

Less: Adjusted accrued costs

 

 

(284

)

 

 

(284

)

Less: Amounts paid

 

 

(139

)

 

 

(7,411

)

Balance as of June 30, 2025

 

$

2,641

 

 

$

2,641

 

 

 

 

For the Year Ended

 

(In thousands)

 

December 31, 2024

 

Balance as of December 31, 2023

 

$

8,309

 

Plus: Amounts charged to cost and expense

 

 

40,545

 

Less: Amounts paid

 

 

(38,518

)

Balance as of December 31, 2024

 

$

10,336

 
Schedule of Components of Restructuring Expenses

Restructuring expenses included in the Condensed Consolidated Statements of Loss are for the three and six months ended June 30, 2025 and 2024:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(In thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Network Solutions - Cost of revenue

 

$

—

 

 

$

524

 

 

$

—

 

 

$

2,842

 

   Network Solutions - charges and inventory write-down

 

 

—

 

 

 

143

 

 

$

—

 

 

 

8,925

 

   Services & Support - Cost of revenue

 

 

—

 

 

 

2,121

 

 

 

—

 

 

 

2,268

 

Cost of revenue

 

$

—

 

 

$

2,788

 

 

$

—

 

 

$

14,035

 

Selling, general and administrative expenses

 

 

—

 

 

 

3,497

 

 

 

—

 

 

 

5,299

 

Research and development expenses

 

 

(284

)

 

 

11,245

 

 

 

(284

)

 

 

15,306

 

Total restructuring expenses

 

$

(284

)

 

$

17,530

 

 

$

(284

)

 

$

34,640

 

 

The following table represents the components of restructuring expenses by geographic area for the three and six months ended June 30, 2025 and 2024:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(In thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

United States

 

$

—

 

 

$

1,226

 

 

$

—

 

 

$

16,286

 

International

 

 

(284

)

 

 

16,304

 

 

 

(284

)

 

 

18,354

 

Total restructuring expenses

 

$

(284

)

 

$

17,530

 

 

$

(284

)

 

$

34,640

 
v3.25.2
Restatement of Quarterly Financial Information (Tables)
 6 Months Ended
Jun. 30, 2025
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Revised and Restated Quarterly Financial Information the following tables reflect the impact of errors and other previously identified immaterial errors to the specific line items presented in our previously reported (a) Condensed Consolidated Balance Sheets; (b) Condensed Consolidated Statements of Loss and Condensed Consolidated Statements of Comprehensive Loss; (c) Condensed Consolidated Statements of Changes in Equity and; (d) Condensed Consolidated Statements of Cash Flows as of and for the three and six months ended June 30, 2024.

 

 

 

 

As of June 30, 2024

 

 

Adj Reference

 

As Reported

 

 

Adjustment

 

 

As Restated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

111,185

 

 

$

—

 

 

$

111,185

 

Accounts receivable, less allowance for credit losses of $191 as of June 30, 2024

 

 

 

186,176

 

 

 

(1

)

 

 

186,175

 

Other receivables

 

 

 

11,436

 

 

 

—

 

 

 

11,436

 

Inventory, net

ADJ 3

 

 

287,860

 

 

 

(4,221

)

 

 

283,639

 

Income tax receivable

ADJ 4

 

 

13,050

 

 

 

(4,735

)

 

 

8,315

 

Prepaid expenses and other current assets

 

 

 

58,612

 

 

 

(3,188

)

 

 

55,424

 

Total Current Assets

 

 

 

668,319

 

 

 

(12,145

)

 

 

656,174

 

Property, plant and equipment, net

 

 

 

134,578

 

 

 

3,513

 

 

 

138,091

 

Goodwill

ADJ 4

 

 

54,897

 

 

 

—

 

 

 

54,897

 

Intangibles, net

 

 

 

290,793

 

 

 

—

 

 

 

290,793

 

Deferred tax assets

ADJ 4

 

 

24,931

 

 

 

4,000

 

 

 

28,931

 

Other non-current assets

 

 

 

87,105

 

 

 

—

 

 

 

87,105

 

Long-term investments

 

 

 

30,159

 

 

 

—

 

 

 

30,159

 

Total Assets

 

 

$

1,290,782

 

 

$

(4,632

)

 

$

1,286,150

 

LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

$

158,550

 

 

$

—

 

 

$

158,550

 

Unearned revenue

 

 

 

55,107

 

 

 

—

 

 

 

55,107

 

Accrued expenses and other liabilities

ADJ 1

 

 

36,307

 

 

 

(1,402

)

 

 

34,905

 

Accrued wages and benefits

 

 

 

37,520

 

 

 

118

 

 

 

37,638

 

Income tax payable, net

 

 

 

2,228

 

 

 

(20

)

 

 

2,208

 

Total Current Liabilities

 

 

 

289,712

 

 

 

(1,304

)

 

 

288,408

 

     Non-current revolving credit agreement outstanding

 

 

 

190,273

 

 

 

—

 

 

 

190,273

 

Deferred tax liabilities

ADJ 4

 

 

21,077

 

 

 

420

 

 

 

21,497

 

Non-current unearned revenue

 

 

 

26,584

 

 

 

—

 

 

 

26,584

 

Non-current pension liability

 

 

 

11,505

 

 

 

—

 

 

 

11,505

 

Deferred compensation liability

 

 

 

30,601

 

 

 

—

 

 

 

30,601

 

Non-current lease obligations

 

 

 

26,613

 

 

 

—

 

 

 

26,613

 

Other non-current liabilities

ADJ 1

 

 

34,445

 

 

 

(701

)

 

 

33,744

 

Total Liabilities

 

 

 

630,810

 

 

 

(1,585

)

 

 

629,225

 

Commitments and contingencies (see Note 16)

 

 

 

 

 

 

 

 

 

 

Redeemable Non-Controlling Interest

ADJ 2

 

 

439,743

 

 

 

3,554

 

 

 

443,297

 

Equity

 

 

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share; 200,000 shares authorized;
   79,121 shares issued and 78,855 outstanding as of June 30, 2024

 

 

 

791

 

 

 

—

 

 

 

791

 

Additional paid-in capital

 

 

 

802,737

 

 

 

(850

)

 

 

801,887

 

Accumulated other comprehensive income

ADJ 1, 3, 4

 

 

28,274

 

 

 

41

 

 

 

28,315

 

Retained deficit

ADJ 2, 3, 4

 

 

(606,375

)

 

 

(5,792

)

 

 

(612,167

)

Treasury stock at cost: 266 shares as of June 30, 2024

 

 

 

(5,198

)

 

 

—

 

 

 

(5,198

)

Total Equity

 

 

 

220,229

 

 

 

(6,601

)

 

 

213,628

 

Total Liabilities, Redeemable Non-Controlling Interest and Equity

 

 

$

1,290,782

 

 

$

(4,632

)

 

$

1,286,150

 

 

 

 

 

 

 

 

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

 

 

 

872

 

 

 

—

 

 

 

872

 

 

 

3,125

 

 

 

—

 

 

 

3,125

 

Other (expense) income, 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 attributable to non-controlling interest

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 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

)

 

 

 

 

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

 

 

(321,670

)

 

 

(6,565

)

 

 

(328,235

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Annual recurring compensation earned

 

 

(2,880

)

 

 

349

 

 

 

(2,531

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other comprehensive loss, net of tax

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(17,805

)

 

 

(28

)

 

 

(17,833

)

 

 

—

 

 

 

—

 

 

 

—

 

Deferred compensation adjustments, net of tax

 

 

3

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(368

)

 

 

—

 

 

 

(368

)

ADTRAN RSUs and restricted stock vested

 

 

(243

)

 

 

—

 

 

 

(243

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

ADTRAN stock options exercised

 

 

219

 

 

 

—

 

 

 

219

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

ADTRAN stock-based compensation expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,957

 

 

 

—

 

 

 

3,957

 

Redemption of redeemable non-controlling interest

 

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Foreign currency remeasurement of redeemable non-controlling interest

 

 

10,115

 

 

 

(10,115

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adtran Networks stock-based compensation expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

(10

)

 

 

(6

)

Balance as of March 31, 2024

 

$

(558,363

)

 

$

(4,129

)

 

$

(562,492

)

 

$

29,656

 

 

$

41

 

 

$

29,697

 

 

$

798,897

 

 

$

(846

)

 

$

798,051

 

Net loss

 

 

(47,011

)

 

 

(151

)

 

 

(47,162

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Annual recurring compensation earned

 

 

(2,854

)

 

 

350

 

 

 

(2,504

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other comprehensive loss, net of tax

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,382

)

 

 

—

 

 

 

(1,382

)

 

 

—

 

 

 

—

 

 

 

—

 

Deferred compensation adjustments, net of tax

 

 

(3

)

 

 

—

 

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

ADTRAN RSUs and restricted stock vested

 

 

(16

)

 

 

—

 

 

 

(16

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

ADTRAN stock-based compensation expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,836

 

 

 

—

 

 

 

3,836

 

Redemption of redeemable non-controlling interest

 

 

4

 

 

 

—

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Foreign currency remeasurement of redeemable non-controlling interest

 

 

1,868

 

 

 

(1,868

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adtran Networks stock-based compensation expense

 

 

—

 

 

 

6

 

 

 

6

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

(4

)

 

 

—

 

Balance as of June 30, 2024

 

$

(606,375

)

 

$

(5,792

)

 

$

(612,167

)

 

$

28,274

 

 

$

41

 

 

$

28,315

 

 

$

802,737

 

 

$

(850

)

 

$

801,887

 

 

 

 

 

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 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

 

Proceeds from receivables purchase agreement

 

 

 

68,556

 

 

 

—

 

 

 

68,556

 

Repayments on receivables purchase agreement

 

 

 

(66,399

)

 

 

—

 

 

 

(66,399

)

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

)

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

 
v3.25.2
Summary of Significant Accounting Policies - Additional Information (Detail)
$ / shares in Units, € in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
EUR (€)
shares
Jun. 30, 2025
USD ($)
shares
Jun. 30, 2024
EUR (€)
shares
Jun. 30, 2024
USD ($)
$ / shares
shares
Jun. 30, 2025
EUR (€)
shares
Jun. 30, 2025
USD ($)
shares
Jun. 30, 2024
EUR (€)
shares
Jun. 30, 2024
USD ($)
$ / shares
shares
Jun. 30, 2025
USD ($)
Sep. 30, 2024
USD ($)
Oct. 18, 2022
shares
Summary Of Significant Accounting Policy [Line Items]                      
Percentage of guaranteed interest rate 5.00%       5.00%       5.00%    
Percentage of guaranteed interest rate plus a variable component 2.27%       2.27%       2.27%    
Aggregate exit compensation payments obligation including guaranteed interest € 326,800       € 326,800       $ 385,200    
Expire date of exit compensation         Mar. 16, 2023 Mar. 16, 2023          
Annual recurring compensation obligation         € 8,500 $ 10,000          
Accrued annual recurring compensation obligation | $   $ 2,400   $ 2,500   $ 4,800   $ 5,000      
Number of shares tendered 900 900     900 900          
Exit compensation payments € 16,900 $ 19,400     € 16,900 $ 19,400          
Wells Fargo Credit Agreement [Member]                      
Summary Of Significant Accounting Policy [Line Items]                      
Net leverage ratio         0.0325 0.0325          
Wells Fargo Credit Agreement [Member] | Acorn HoldCo, Inc., [Member]                      
Summary Of Significant Accounting Policy [Line Items]                      
Available for future borrowings | $                 156,500 $ 156,500  
Credit agreement current borrowing capacity | $                 $ 66,800 $ 66,800  
Maximum [Member] | Wells Fargo Credit Agreement [Member]                      
Summary Of Significant Accounting Policy [Line Items]                      
Net leverage ratio         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          
Minimum [Member] | Wells Fargo Credit Agreement [Member]                      
Summary Of Significant Accounting Policy [Line Items]                      
Fixed charge coverage ratio         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          
Adtran Networks [Member]                      
Summary Of Significant Accounting Policy [Line Items]                      
Annual recurring compensation payment per share | $ / shares       $ 0.52       $ 0.52      
Accrued liability per share | $ / shares       $ 0.59              
Number of shares tendered 900,000 900,000 1,000,000 1,000,000 900,000 900,000 1,000,000 1,000,000      
Exit compensation payments € 16,900 $ 19,400 € 19 $ 20 € 16,900 $ 19,400 € 23 $ 25      
Adtran Networks [Member] | Maximum [Member]                      
Summary Of Significant Accounting Policy [Line Items]                      
Number of additional shares authorized to purchase                     15,346,544
Number of shares tendered     1,000 1,000     1,000 1,000      
v3.25.2
Revenue - Additional Information (Detail)
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2025
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2025
USD ($)
Category
Jun. 30, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2024
USD ($)
Jul. 01, 2024
USD ($)
Revenue [Line Items]              
Number of categories | Category     3        
Accounts receivable, allowance for credit losses $ 1,258,000 $ 191,000 $ 1,258,000 $ 191,000   $ 1,300,000  
Allowance for credit losses related to contract assets 0 0 0 0      
Recognized revenue 12,800,000 13,700,000 34,700,000 33,100,000 $ 65,100,000    
Factor [Member] | Purchase Agreement [Member]              
Revenue [Line Items]              
Accounts receivable 18,400,000   18,400,000        
Secured revolving credit facility amount             $ 40,000,000
Factor [Member] | Purchase Agreement [Member] | Interest expense [Member]              
Revenue [Line Items]              
Cost of receivables 300,000   600,000        
Factor [Member] | Purchase Agreement [Member] | Other Assets [Member]              
Revenue [Line Items]              
Accounts receivable gross 3,700,000   3,700,000        
Prior Factoring Agreement [Member] | Purchase Agreement [Member]              
Revenue [Line Items]              
Secured borrowings, fee expense incurred   $ 300,000   $ 600,000      
Contractual Maintenance Agreements, Contractual SaaS and Subscription Services and Hardware Orders [Member]              
Revenue [Line Items]              
Remaining performance obligations $ 264,900,000   $ 264,900,000     $ 325,700,000  
v3.25.2
Revenue - Additional Information (Detail1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-07-01
Jun. 30, 2025
Revenue [Line Items]  
Remaining performance obligations, percentage 62.80%
Remaining performance obligations, period 12 months
v3.25.2
Revenue - Disaggregate of Revenue by Reportable Segment and Revenue Category (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Disaggregation Of Revenue [Line Items]        
Revenue $ 265,068 $ 225,991 $ 512,812 $ 452,164
Subscriber Solutions [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 83,758 82,397 164,169 152,165
Optical Networking Solutions [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 90,098 73,687 168,295 148,780
Access & Aggregation Solutions [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 91,212 69,907 180,348 151,219
Network Solutions [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 219,498 179,194 421,715 360,467
Network Solutions [Member] | Subscriber Solutions [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 75,537 73,615 147,285 133,984
Network Solutions [Member] | Optical Networking Solutions [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 66,608 51,467 121,230 104,594
Network Solutions [Member] | Access & Aggregation Solutions [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 77,353 54,112 153,200 121,889
Services & Support [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 45,570 46,797 91,097 91,697
Services & Support [Member] | Subscriber Solutions [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 8,221 8,782 16,884 18,181
Services & Support [Member] | Optical Networking Solutions [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 23,490 22,220 47,065 44,186
Services & Support [Member] | Access & Aggregation Solutions [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue $ 13,859 $ 15,795 $ 27,148 $ 29,330
v3.25.2
Revenue - Information about Receivable, Contract Assets, and Unearned Revenue from Contracts with Customers (Detail) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]      
Accounts receivable, net $ 164,768 $ 178,030 $ 186,175
Contract assets [1] 510 631  
Unearned revenue 62,695 52,701 55,107
Non-current unearned revenue $ 24,429 $ 22,065 $ 26,584
[1] Included in other receivables on the Condensed Consolidated Balance Sheets.
v3.25.2
Income Taxes - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Income Tax Disclosure [Line Items]        
Effective tax rate expense (benefit) 5.90% 4.70% 2.30% 4.20%
Deferred tax assets $ 100.7   $ 100.7  
Valuation allowance established against deferred tax assets $ 115.7   $ 115.7  
v3.25.2
Stock-Based Compensation (Stock Incentive Plans and Stock Options) - Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Stock-based compensation expense $ 2,700 $ 3,800 $ 5,900 $ 7,800  
Shares available for issuance 4,100,000   4,100,000    
Aggregate intrinsic value based on fair market value $ 4,200   $ 4,200   $ 3,762
Total pre-tax intrinsic value of options exercised     $ 500 $ 34  
Stock options vested 500,000 100,000 500,000 100,000  
2024 Employee Stock Incentive Plan [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Share available issuance under shareholder 4,000,000   4,000,000    
Contractual term     10 years    
Multiplier used when issuing PSUs, restricted stock and RSUs 1   1    
Forfeiture of stock increase in issuance of common stock 1   1    
2024 Employee Stock Incentive Plan [Member] | RSUs [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]          
Share available issuance under shareholder 700,000   700,000    
Contractual term     10 years    
Multiplier used when issuing PSUs, restricted stock and RSUs 1   1    
Forfeiture of stock increase in issuance of common stock 1   1    
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    
v3.25.2
Stock-Based Compensation - Stock-Based Compensation Expense Related to Stock Options, PSUs, RSUs and Restricted Stock (Detail)
shares in Thousands
 6 Months Ended
Jun. 30, 2025
$ / shares
shares
Share-Based Payment Arrangement [Abstract]  
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, beginning balance | shares 2,335
Number of Shares, PSUs, RSUs and restricted stock granted | shares 1,278
Number of Shares, PSUs, RSUs and restricted stock vested | shares (509)
Number of Shares, PSUs, RSUs and restricted stock forfeited | shares (148)
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, ending balance | shares 2,956
Weighted Avg. Grant Date Fair Value, Unvested PSUs, RSUs and restricted stock outstanding, Beginning Balance | $ / shares $ 13.22
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock granted | $ / shares 10.35
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock vested | $ / shares 11.59
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock forfeited | $ / shares 11.06
Weighted Avg. Grant Date Fair Value, Unvested PSUs, RSUs and restricted stock outstanding, Ending Balance | $ / shares $ 11.44
v3.25.2
Stock-Based Compensation (PSUs, RSUs and Restricted Stock) - Additional Information (Detail)
$ in Millions
 6 Months Ended
Jun. 30, 2025
USD ($)
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 $ 17.8
Recognition period of unvested compensation expense 2 years 8 months 12 days
Performance Stock Units (PSUs) [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unrecognized compensation expense related to stock options $ 9.9
Recognition period of unvested compensation expense 6 months
Time-Based RSUs [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Unrecognized compensation expense related to stock options $ 1.3
Recognition period of unvested compensation expense 7 months 6 days
v3.25.2
Stock-Based Compensation - Summary of Stock Options Outstanding (Detail)
$ / shares in Units, shares in Thousands, $ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2025
USD ($)
$ / shares
shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Share-Based Payment Arrangement [Abstract]    
Number of Stock Options, Stock options outstanding, Beginning Balance | shares 2,944  
Number of Stock Options, Stock options exercised | shares (172)  
Number of Stock Options, Stock options forfeited | shares (98)  
Number of Stock Options, Stock options expired | shares (17)  
Number of Stock Options, Stock options outstanding, Ending Balance | shares 2,657 2,944
Number of Stock Options, Stock options exercisable | shares 1,750  
Weighted Avg. Exercise Price, Stock options outstanding, Beginning Balance | $ / shares $ 9.86  
Weighted Avg. Exercise Price, Stock options exercised | $ / shares 6.76  
Weighted Avg. Exercise Price, Stock options forfeited | $ / shares 9.62  
Weighted Avg. Exercise Price, Stock options expired | $ / shares 14.12  
Weighted Avg. Exercise Price, Stock options outstanding, Ending Balance | $ / shares 10.04 $ 9.86
Weighted Avg. Exercise Price, Stock options exercisable | $ / shares $ 9.82  
Weighted Avg. Remaining Contractual Life In Years, Stock options outstanding 4 years 7 months 6 days 5 years
Weighted Avg. Remaining Contractual Life in Years, Stock options exercisable 3 years 6 months  
Aggregate Intrinsic Value, Stock options outstanding | $ $ 4,200 $ 3,762
Aggregate Intrinsic Value, Stock options exercisable | $ $ 2,141  
v3.25.2
Long Term Investments - Cash Equivalents and Investments held at Fair Value (Detail) - Fair Value, Measurements [Member] - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Schedule of Available-for-sale Securities [Line Items]    
Total $ 33,354 $ 37,597
Quoted Prices in Active Market for Identical Assets (Level 1) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Total 33,354 37,597
Money Market Funds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Cash equivalents 238 5,538
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 238 5,538
Marketable Equity Securities - Various Industries [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Marketable equity securities 1,072 1,068
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 1,072 1,068
Deferred Compensation Plan Assets [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Marketable equity securities 32,044 30,991
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 $ 32,044 $ 30,991
v3.25.2
Long Term Investments - Cash Equivalents and Investments held at Fair Value (Parenthetical) (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Jun. 30, 2024
Debt Securities, Available-for-Sale [Line Items]      
Cash and cash equivalents $ 106,271 $ 76,021 $ 111,185
Money Market Funds [Member]      
Debt Securities, Available-for-Sale [Line Items]      
Cash and cash equivalents   $ 5,500  
v3.25.2
Inventory, Net - Components of Inventory (Detail) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Jun. 30, 2024
Inventory Disclosure [Abstract]      
Raw materials $ 85,043 $ 106,384  
Work in process 11,530 9,724  
Finished goods 143,508 145,449  
Total Inventory, net $ 240,081 $ 261,557 $ 283,639
v3.25.2
Inventory, Net - Additional Information (Detail) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Inventory [Line Items]      
Inventory renegotiated charges $ (29,594) $ (64,407)  
Inventory write down   4,135  
Business Efficiency Program [Member]      
Inventory [Line Items]      
Strategy shift charges   8,900 $ 8,600
Inventory write down   4,100 4,100
Other charges   $ 4,800 $ 4,500
v3.25.2
Property, Plant and Equipment, Net - Property, Plant and Equipment (Detail) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Jun. 30, 2024
Property, Plant and Equipment [Abstract]      
Engineering and other equipment $ 197,351 $ 184,694  
Building 52,529 50,871  
Computer hardware and software 121,704 113,241  
Building and land improvements 43,557 39,979  
Furniture and fixtures 21,468 20,994  
Land 3,075 2,989  
Total property, plant and equipment 439,684 412,768  
Less: accumulated depreciation and amortization (327,748) (306,314)  
Total property, plant and equipment, net $ 111,936 $ 106,454 $ 138,091
v3.25.2
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Property, Plant and Equipment [Line Items]          
Depreciation and amortization expense $ 7,600 $ 7,000 $ 14,500 $ 14,100  
Total carrying value of assets held for sale $ 11,901   $ 11,901   $ 11,901
v3.25.2
Goodwill - Summary of Changes in Carrying Amount of Goodwill (Detail)
$ in Thousands
 6 Months Ended
Jun. 30, 2025
USD ($)
Goodwill [Line Items]  
Goodwill, Beginning balance $ 52,918
Goodwill, Ending balance 60,194
Services & Support [Member]  
Goodwill [Line Items]  
Goodwill, Beginning balance 52,918
Foreign currency translation adjustments 7,276
Goodwill, Ending balance $ 60,194
v3.25.2
Goodwill - Additional Information (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Goodwill [Line Items]          
Impairment charges related to goodwill $ 0 $ 0   $ 0 $ 297,353,000
Accumulated goodwill impairment losses $ 335,300,000     $ 335,300,000  
Network Solutions [Member]          
Goodwill [Line Items]          
Impairment charges related to goodwill     $ 297,400,000    
v3.25.2
Intangible Assets, Net - Summary of Intangible Assets, Net (Detail) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 569,224 $ 486,238
Accumulated Amortization (259,055) (201,345)
Net Book Value $ 310,169 284,893
Customer Relationships [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 11 years  
Gross Carrying Amount $ 56,396 51,165
Accumulated Amortization (22,927) (18,778)
Net Book Value $ 33,469 32,387
Backlog [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 1 year 8 months 12 days  
Gross Carrying Amount $ 61,298 53,839
Accumulated Amortization (61,163) (52,258)
Net Book Value $ 135 1,581
Developed Technology [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 7 years 9 months 18 days  
Gross Carrying Amount $ 413,360 346,923
Accumulated Amortization (139,457) (99,588)
Net Book Value $ 273,903 247,335
Licensed Technology [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 9 years  
Gross Carrying Amount $ 5,900 5,900
Accumulated Amortization (4,780) (4,452)
Net Book Value $ 1,120 1,448
Licensing Agreements [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 8 years 6 months  
Gross Carrying Amount $ 560 560
Accumulated Amortization (427) (407)
Net Book Value $ 133 153
Trade Names [Member]    
Finite Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 2 years 9 months 18 days  
Gross Carrying Amount $ 31,710 27,851
Accumulated Amortization (30,301) (25,862)
Net Book Value $ 1,409 $ 1,989
v3.25.2
Intangible Assets, Net - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Finite-Lived Intangible Assets [Line Items]        
Impairment losses of intangible assets $ 0 $ 0 $ 0 $ 0
Amortization expense $ 15,700,000 $ 15,300,000 $ 30,600,000 $ 30,400,000
v3.25.2
Intangible Assets, Net - Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]    
2025 $ 32,368  
2026 64,772  
2027 59,150  
2028 49,561  
2029 46,025  
Thereafter 58,293  
Net Book Value $ 310,169 $ 284,893
v3.25.2
Credit Agreements - Carrying Amount of Revolving Agreements (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Line of Credit Facility [Line Items]    
Total non-current revolving credit facility $ 190,180 $ 189,576
Wells Fargo Credit Agreement [Member]    
Line of Credit Facility [Line Items]    
Total non-current revolving credit facility $ 190,180 $ 189,576
v3.25.2
Credit Agreements - Additional Information (Detail)
 6 Months Ended
May 06, 2025
USD ($)
Jun. 04, 2024
USD ($)
Aug. 09, 2023
Jun. 30, 2025
USD ($)
Jun. 30, 2024
USD ($)
Dec. 31, 2024
USD ($)
Sep. 30, 2024
USD ($)
Jul. 18, 2022
USD ($)
Line Of Credit Facility [Line Items]                
Weighted average interest rate       8.55%        
Revolving line of credit       $ 190,180,000   $ 189,576,000    
Debt instrument default interest rate percentage       2.00%        
Repayment of debt under revolving credit agreements       $ 24,000,000 $ 5,000,000      
Total non-current revolving credit facility       190,180,000   189,576,000    
Wells Fargo Credit Agreement [Member]                
Line Of Credit Facility [Line Items]                
Revolving line of credit       $ 190,180,000   189,576,000    
Net leverage ratio       0.0325        
Total non-current revolving credit facility       $ 190,180,000   $ 189,576,000    
Wells Fargo Credit Agreement [Member] | Maximum [Member]                
Line Of Credit Facility [Line Items]                
Net leverage ratio       0.05        
Wells Fargo Credit Agreement [Member] | Minimum [Member]                
Line Of Credit Facility [Line Items]                
Fixed charge coverage ratio       0.0125        
Wells Fargo Credit Agreement Amendment [Member] | Delayed Draw Term Loan [Member]                
Line Of Credit Facility [Line Items]                
Percentage available for borrowing     60.00%          
Wells Fargo Credit Agreement - US Borrower [Member]                
Line Of Credit Facility [Line Items]                
Secured revolving credit facility amount       $ 350,000,000        
Acorn HoldCo, Inc., [Member] | Wells Fargo Credit Agreement [Member]                
Line Of Credit Facility [Line Items]                
Secured revolving credit facility amount   $ 350,000,000   350,000,000       $ 374,000,000
Revolving line of credit       190,200,000        
Threshold prepayments of outstanding loans german commitment reduction amount $ 25,000,000 50,000,000            
Credit facility, average outstanding amount   50,000,000   3,300,000        
Letters of credit may be utilize       50,000,000        
Available for future borrowings       156,500,000     $ 156,500,000  
Credit agreement current borrowing capacity       66,800,000     $ 66,800,000  
Repayment of debt under revolving credit agreements 24,000,000              
Total non-current revolving credit facility       190,200,000        
Acorn HoldCo, Inc., [Member] | Wells Fargo Credit Agreement - Subline [Member]                
Line Of Credit Facility [Line Items]                
Revolving line of credit       25,200,000        
Credit facility, average outstanding amount $ 50,000,000 $ 74,000,000   50,000,000        
Total non-current revolving credit facility       25,200,000        
Acorn HoldCo, Inc., [Member] | Wells Fargo Credit Agreement - US Borrower [Member]                
Line Of Credit Facility [Line Items]                
Revolving line of credit       165,000,000        
Total non-current revolving credit facility       $ 165,000,000        
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        
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        
v3.25.2
Credit Agreements - Additional Information (Detail1) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Jun. 30, 2024
Line of Credit Facility [Line Items]      
Cash and cash equivalents $ 106,271 $ 76,021 $ 111,185
Wells Fargo Credit Agreement Amendment [Member] | Credit Parties [Member]      
Line of Credit Facility [Line Items]      
Cash and cash equivalents 50,000    
Wells Fargo Credit Agreement Amendment [Member] | Company and Subsidiaries [Member]      
Line of Credit Facility [Line Items]      
Cash and cash equivalents $ 70,000    
v3.25.2
Employee Benefit Plans - Additional Information (Detail) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Defined Benefit Plan Disclosure [Line Items]    
Contributions to defined benefit pension plans $ 2.0 $ 2.2
Defined benefit pension plans for the remainder of fiscal year $ 1.5  
v3.25.2
Employee Benefit Plans - Summary of Net Amounts Recognized in Consolidated Balance Sheets for the Unfunded Pension Liability (Detail) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Jun. 30, 2024
Defined Benefit Plan Disclosure [Line Items]      
Non-current pension liability $ (9,686) $ (8,983) $ (11,505)
Total (9,443) (8,769)  
Other Non-Current Assets [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Non-current pension asset 588 517  
Accrued wages and benefits [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Current pension liability $ (345) $ (303)  
v3.25.2
Employee Benefit Plans - Schedule of the Components of Net Periodic Pension Cost (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]        
Service cost $ 421 $ 333 $ 810 $ 673
Interest cost $ 525 $ 281 $ 1,011 $ 566
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) Other Nonoperating Income (Expense)
Expected return on plan assets $ (635) $ (354) $ (1,223) $ (713)
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) Other Nonoperating Income (Expense)
Amortization of actuarial losses $ 12 $ 2 $ 23 $ 5
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) Other Nonoperating Income (Expense)
Net periodic benefit cost $ 323 $ 262 $ 621 $ 531
v3.25.2
Equity - Changes in Accumulated Other Comprehensive Income, Net of Tax, by Component (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Beginning Balance $ 138,893 $ 126,951 $ 260,849 $ 605,257 $ 126,951 $ 605,257
Other comprehensive (loss) income before reclassifications 46,427   (1,380)   66,722 (19,272)
Amounts reclassified from accumulated other comprehensive income (loss) 296   (2)   379 57
Net current period other comprehensive income (loss) 46,723 20,378 (1,382) (17,833) 67,101 (19,215)
Ending Balance 169,613 138,893 213,628 260,849 169,613 213,628
ASU 2018-02 [Member]            
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Beginning Balance 385 385 385 385 385 385
Ending Balance 385 385 385 385 385 385
Accumulated Other Comprehensive Income (Loss) [Member]            
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Beginning Balance 31,632 11,254 29,697 47,530 11,254 47,530
Net current period other comprehensive income (loss) 46,723 20,378 (1,382) (17,833)    
Ending Balance 78,355 31,632 28,315 29,697 78,355 28,315
Unrealized Gains (Losses) on Available-for-Sale Securities [Member]            
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Beginning Balance (382) (382) (382) (382) (382) (382)
Other comprehensive (loss) income before reclassifications (28)   (5)   20 (124)
Amounts reclassified from accumulated other comprehensive income (loss) 28   5   (20) 124
Ending Balance (382) (382) (382) (382) (382) (382)
Defined Benefit Plan Adjustments [Member]            
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Beginning Balance (896) (1,027) (2,566) (2,506) (1,027) (2,506)
Amounts reclassified from accumulated other comprehensive income (loss) 268   (7)   399 (67)
Net current period other comprehensive income (loss) 268   (7)   399 (67)
Ending Balance (628) (896) (2,573) (2,566) (628) (2,573)
Foreign Currency Translation Adjustments [Member]            
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Beginning Balance 32,525 12,278 32,260 50,033 12,278 50,033
Other comprehensive (loss) income before reclassifications 46,455   (1,375)   66,702 (19,148)
Net current period other comprehensive income (loss) 46,455   (1,375)   66,702 (19,148)
Ending Balance $ 78,980 $ 32,525 $ 30,885 $ 32,260 $ 78,980 $ 30,885
v3.25.2
Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Reclassification Adjustment Out of Accumulated Other Comprehensive Income (Loss) [Line Items]        
Loss Before Income Taxes $ (17,242) $ (45,026) $ (26,587) $ (391,908)
Tax (expense) benefit (1,016) (2,136) (619) 16,511
Net Loss attributable to ADTRAN Holdings, Inc. (20,531) (49,667) (31,798) (380,432)
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 gain (loss) 388 (10) 578 (97)
Loss Before Income Taxes 426 (3) 551 71
Tax (expense) benefit (130) 1 (172) (14)
Net Loss attributable to ADTRAN Holdings, Inc. 296 (2) 379 57
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] | Unrealized Gains (Losses) 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 $ 38 $ 7 $ (27) $ 168
v3.25.2
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
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Equity [Abstract]            
Unrealized gain (loss) on available-for-sale securities, Before-Tax Amount $ (38)   $ (7)   $ 27 $ (168)
Unrealized gain (loss) on available-for-sale securities, Tax (Expense) Benefit 10   2   (7) 44
Unrealized gain (loss) on available-for-sale securities, Net-of-Tax Amount (28)   (5)   20 (124)
Reclassification adjustment for amounts related to available-for-sale investments included in net (loss) gain, Before-Tax Amount 38   7   (27) 168
Reclassification adjustment for amounts related to available-for-sale investments included in net (loss) gain, Tax (Expense) Benefit (10)   (2)   7 (44)
Reclassification adjustment for amounts related to available-for-sale investments included in net (loss) gain, Net-of-Tax Amount 28   5   (20) 124
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net (loss) gain, Before-Tax Amount 388   (10)   578 (97)
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net (loss) gain, Tax (Expense) Benefit (120)   3   (179) 30
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net (loss) gain, Net-of-Tax Amount 268   (7)   399 (67)
Foreign currency translation adjustment, Before-Tax Amount 46,455   (1,375)   66,702 (19,148)
Foreign currency translation adjustment, Net-of-Tax Amount 46,455   (1,375)   66,702 (19,148)
Total Other Comprehensive Income (Loss), Before-Tax Amount 46,843   (1,385)   67,280 (19,245)
Total Other Comprehensive Income (Loss), Tax (Expense) Benefit (120)   3   (179) 30
Net current period other comprehensive income (loss) $ 46,723 $ 20,378 $ (1,382) $ (17,833) $ 67,101 $ (19,215)
v3.25.2
Redeemable Non-controlling Interest - Summary of Redeemable Non-controlling Interest Activity (Detail) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2024
Redeemable Noncontrolling Interest [Line Items]    
Balance at beginning of period $ 422,943 $ 443,327
Redemption of redeemable non-controlling interest (20,854) (20,384)
Net income attributable to redeemable non-controlling interests 4,592 9,824
Annual recurring compensation earned (4,592) (9,824)
Balance at end of period $ 402,089 $ 422,943
v3.25.2
Redeemable Non-controlling Interest - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Redeemable Noncontrolling Interest [Line Items]          
Accrued annual recurring compensation to redeemable non-controlling shareholders $ 2.4 $ 2.5 $ 4.8 $ 5.0  
Accrued Annual Recurring Compensation Obligation          
Redeemable Noncontrolling Interest [Line Items]          
Accrued annual recurring compensation to redeemable non-controlling shareholders $ 2.4   $ 4.8   $ 9.8
Adtran Networks [Member]          
Redeemable Noncontrolling Interest [Line Items]          
Equity ownership percentage 31.40%   31.40%    
v3.25.2
Loss per Share - Summary of Calculation of Basic and Diluted Loss Per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Numerator        
Net Loss attributable to ADTRAN Holdings, Inc. $ (20,531) $ (49,667) $ (31,798) $ (380,432)
Effect of redemption of RNCI 1,494   1,491  
Net loss attributable to ADTRAN Holdings, Inc. common stockholders $ (19,037) $ (49,667) $ (30,307) $ (380,432)
Denominator        
Weighted average number of shares – basic 79,748 78,852 79,642 78,803
Effect of dilutive securities        
Weighted average number of shares – diluted 79,748 78,852 79,642 78,803
Loss per share attributable to ADTRAN Holdings, Inc. - basic [1] $ (0.24) $ (0.63) $ (0.38) $ (4.83)
Loss per share attributable to ADTRAN Holdings, Inc. - diluted [1] $ (0.24) $ (0.63) $ (0.38) $ (4.83)
[1] Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $1.5 million effect of redemption of RNCI for the three and six months ended June 30, 2025. See Note 14 for additional information.
v3.25.2
Loss per Share - Additional Information (Detail) - shares
shares in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Anti-dilutive effect excluded calculation of diluted earnings per share 1.2 5.0 0.9 4.2
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 1.4 0.3 1.3
v3.25.2
Segment Information - Additional Information (Detail)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2025
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2025
USD ($)
Segment
Jun. 30, 2024
USD ($)
Segment Reporting Information [Line Items]        
Number of reportable segments | Segment     2  
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration]     srt:ChiefExecutiveOfficerMember  
Network Solutions [Member]        
Segment Reporting Information [Line Items]        
Depreciation expense $ 1.3 $ 1.5 $ 2.6 $ 3.1
Services & Support [Member]        
Segment Reporting Information [Line Items]        
Depreciation expense $ 0.1 $ 0.1 $ 0.1 $ 0.1
v3.25.2
Segment Information - Revenue and Gross Profit of Reportable Segments (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Segment Reporting Information [Line Items]        
Revenue $ 265,068 $ 225,991 $ 512,812 $ 452,164
Cost of Revenue 166,144 144,732 318,712 300,590
Gross Profit 98,924 81,259 194,100 151,574
Network Solutions [Member]        
Segment Reporting Information [Line Items]        
Revenue 219,498 179,194 421,715 360,467
Cost of Revenue 147,321 124,916 281,562 261,964
Gross Profit 72,177 54,278 140,153 98,503
Services & Support [Member]        
Segment Reporting Information [Line Items]        
Revenue 45,570 46,797 91,097 91,697
Cost of Revenue 18,823 19,816 37,150 38,626
Gross Profit $ 26,747 $ 26,981 $ 53,947 $ 53,071
v3.25.2
Segment Information - Revenue Information by Geographic Area (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Revenue from External Customer [Line Items]        
Revenue $ 265,068 $ 225,991 $ 512,812 $ 452,164
United States [Member]        
Revenue from External Customer [Line Items]        
Revenue 120,340 107,604 223,529 190,894
United Kingdom [Member]        
Revenue from External Customer [Line Items]        
Revenue 56,249 43,560 119,158 96,300
Germany [Member]        
Revenue from External Customer [Line Items]        
Revenue 31,205 24,542 58,393 64,283
Other International [Member]        
Revenue from External Customer [Line Items]        
Revenue $ 57,274 $ 50,285 $ 111,732 $ 100,687
v3.25.2
Commitments and Contingencies - Additional Information (Detail)
€ / shares in Units, € in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
USD ($)
shares
Jun. 30, 2025
EUR (€)
shares
Jun. 30, 2024
USD ($)
shares
Jun. 30, 2024
EUR (€)
shares
Jun. 30, 2025
USD ($)
shares
Jun. 30, 2025
EUR (€)
€ / shares
shares
Jun. 30, 2024
USD ($)
shares
Jun. 30, 2024
EUR (€)
shares
Jun. 30, 2025
EUR (€)
Dec. 31, 2024
USD ($)
Commitments And Contingencies Line Items                    
Cash compensation per share | € / shares           € 17.21        
Recurring cash compensation per share | € / shares           € 0.52        
Aggregate exit compensation payments obligation including guaranteed interest $ 385,200       $ 385,200       € 326,800  
Number of shares tendered | shares 900 900     900 900        
Exit compensation payments $ 19,400 € 16,900     $ 19,400 € 16,900        
Percentage of guaranteed interest rate 5.00%       5.00%       5.00%  
Percentage of guaranteed interest rate plus a variable component 2.27%       2.27%       2.27%  
Annual recurring compensation obligation         $ 10,000 € 8,500        
Expire date of exit compensation         Mar. 16, 2023 Mar. 16, 2023        
Accrued annual recurring compensation obligation $ 2,400   $ 2,500   $ 4,800   $ 5,000      
Commitments related to performance bonds 16,900       $ 16,900         $ 15,700
Commitments related to performance bonds expiration month and year         2029-04 2029-04        
Purchase obligations 192,700       $ 192,700          
Less: Net Income attributable to non-controlling interest [1] $ 2,273   $ 2,505   $ 4,592   $ 5,035      
Adtran Networks [Member]                    
Commitments And Contingencies Line Items                    
Number of shares tendered | shares 900,000 900,000 1,000,000 1,000,000 900,000 900,000 1,000,000 1,000,000    
Exit compensation payments $ 19,400 € 16,900 $ 20 € 19 $ 19,400 € 16,900 $ 25 € 23    
Adtran Networks [Member] | Maximum [Member]                    
Commitments And Contingencies Line Items                    
Number of shares tendered | shares     1,000 1,000     1,000 1,000    
[1] For the three and six months ended June 30, 2025 we accrued $2.4 million and $4.8 million, respectively, net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA. For the three and six months ended June 30, 2024, we accrued $2.5 million and $5.0 million, respectively, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA.
v3.25.2
Restructuring - Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Restructuring Cost and Reserve [Line Items]          
Inventory write down       $ 4,135  
Restructuring Costs $ 0 $ 17,500 $ 0 34,600  
True-up expenses $ 300   $ 300    
Business Efficiency Program [Member]          
Restructuring Cost and Reserve [Line Items]          
Strategy shift charges       8,900 $ 8,600
Inventory write down       4,100 4,100
Other charges       $ 4,800 $ 4,500
v3.25.2
Restructuring - Schedule of Reconciliation of Restructuring Liability (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2025
Jun. 30, 2025
Dec. 31, 2024
Restructuring and Related Activities [Abstract]      
Balance at beginning of period $ 3,064 $ 10,336 $ 8,309
Plus: Amounts charged to cost and expense     40,545
Less: Adjusted accrued costs (284) (284)  
Less: Amounts paid (139) (7,411) (38,518)
Balance at end of period $ 2,641 $ 2,641 $ 10,336
v3.25.2
Restructuring - Schedule of Components of Restructuring Expenses Including in Condensed Consolidated Statements of (Loss) Income (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Sep. 30, 2024
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Restructuring Cost And Reserve [Line Items]          
Total restructuring expenses $ (284)   $ 17,530 $ (284) $ 34,640
Cost of Sales [Member]          
Restructuring Cost And Reserve [Line Items]          
Total restructuring expenses     2,788   14,035
Cost of Sales [Member] | Network Solutions [Member]          
Restructuring Cost And Reserve [Line Items]          
Total restructuring expenses   $ 2,842 524    
Cost of Sales [Member] | Services & Support [Member]          
Restructuring Cost And Reserve [Line Items]          
Total restructuring expenses     2,121   2,268
Charges and Inventory Write-Down [Member] | Network Solutions [Member]          
Restructuring Cost And Reserve [Line Items]          
Total restructuring expenses     143   8,925
Selling, General and Administrative Expenses [Member]          
Restructuring Cost And Reserve [Line Items]          
Total restructuring expenses     3,497   5,299
Research and Development Expenses [Member]          
Restructuring Cost And Reserve [Line Items]          
Total restructuring expenses $ (284)   $ 11,245 $ (284) $ 15,306
v3.25.2
Restructuring - Schedule of Components of Restructuring Expense by Geographic Area (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Restructuring Cost And Reserve [Line Items]        
Total restructuring expenses $ (284) $ 17,530 $ (284) $ 34,640
United States [Member]        
Restructuring Cost And Reserve [Line Items]        
Total restructuring expenses   1,226   16,286
International [Member]        
Restructuring Cost And Reserve [Line Items]        
Total restructuring expenses $ (284) $ 16,304 $ (284) $ 18,354
v3.25.2
Restatement of Quarterly Financial Information - Schedule of Restatement of Condensed Consolidated Balance Sheet (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Mar. 31, 2025
Dec. 31, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Current Assets            
Cash and cash equivalents $ 106,271   $ 76,021 $ 111,185    
Accounts receivable, less allowance for credit losses of $191 as of June 30, 2024 164,768   178,030 186,175    
Other receivables 8,354   9,775 11,436    
Inventory, net 240,081   261,557 283,639    
Income tax receivable 8,136   5,461 8,315    
Prepaid expenses and other current assets 67,717   56,395 55,424    
Total Current Assets 607,228   599,140 656,174    
Property, plant and equipment, net 111,936   106,454 138,091    
Goodwill 60,194   52,918 54,897    
Intangibles, net 310,169   284,893 290,793    
Deferred tax assets 17,826   17,826 28,931    
Other non-current assets 75,826   78,128 87,105    
Long-term investments 33,116   32,060 30,159    
Total Assets 1,216,295   1,171,419 1,286,150    
Current Liabilities            
Accounts payable 178,287   171,825 158,550    
Unearned revenue 62,695   52,701 55,107    
Accrued expenses and other liabilities 38,127   34,158 34,905    
Accrued wages and benefits 29,532   32,853 37,638    
Income tax payable, net 1,019   1,936 2,208    
Total Current Liabilities 309,660   293,473 288,408    
Non-current revolving credit agreement outstanding 190,180   189,576 190,273    
Deferred tax liabilities 32,866   30,372 21,497    
Non-current unearned revenue 24,429   22,065 26,584    
Non-current pension liability 9,686   8,983 11,505    
Deferred compensation liability 34,390   33,203 30,601    
Non-current lease obligations 27,783   25,925 26,613    
Other non-current liabilities 15,599   17,928 33,744    
Total Liabilities 644,593   621,525 629,225    
Commitments and contingencies (see Note 16)      
Redeemable Non-Controlling Interest 402,089   422,943 443,297    
Equity            
Common stock, par value 0.01 per shar 200,000 shares authorized; 79,121 shares issued and 78,855 outstanding as June 30, 2024 800   795 791    
Additional paid-in capital 814,749   808,913 801,887    
Accumulated other comprehensive income 78,355   11,254 28,315    
Retained deficit (719,183)   (688,813) (612,167)    
Treasury stock at cost: 266 shares as of June 30, 2024 (5,108)   (5,198) (5,198)    
Total Equity 169,613 $ 138,893 126,951 213,628 $ 260,849 $ 605,257
Total Liabilities, Redeemable Non-Controlling Interest and Equity $ 1,216,295   $ 1,171,419 1,286,150    
As Reported [Member]            
Current Assets            
Cash and cash equivalents       111,185    
Accounts receivable, less allowance for credit losses of $191 as of June 30, 2024       186,176    
Other receivables       11,436    
Inventory, net       287,860    
Income tax receivable       13,050    
Prepaid expenses and other current assets       58,612    
Total Current Assets       668,319    
Property, plant and equipment, net       134,578    
Goodwill       54,897    
Intangibles, net       290,793    
Deferred tax assets       24,931    
Other non-current assets       87,105    
Long-term investments       30,159    
Total Assets       1,290,782    
Current Liabilities            
Accounts payable       158,550    
Unearned revenue       55,107    
Accrued expenses and other liabilities       36,307    
Accrued wages and benefits       37,520    
Income tax payable, net       2,228    
Total Current Liabilities       289,712    
Non-current revolving credit agreement outstanding       190,273    
Deferred tax liabilities       21,077    
Non-current unearned revenue       26,584    
Non-current pension liability       11,505    
Deferred compensation liability       30,601    
Non-current lease obligations       26,613    
Other non-current liabilities       34,445    
Total Liabilities       630,810    
Redeemable Non-Controlling Interest       439,743    
Equity            
Common stock, par value 0.01 per shar 200,000 shares authorized; 79,121 shares issued and 78,855 outstanding as June 30, 2024       791    
Additional paid-in capital       802,737    
Accumulated other comprehensive income       28,274    
Retained deficit       (606,375)    
Treasury stock at cost: 266 shares as of June 30, 2024       (5,198)    
Total Equity       220,229    
Total Liabilities, Redeemable Non-Controlling Interest and Equity       1,290,782    
Adjustment [Member]            
Current Assets            
Accounts receivable, less allowance for credit losses of $191 as of June 30, 2024       (1)    
Inventory, net       (4,221)    
Income tax receivable       (4,735)    
Prepaid expenses and other current assets       (3,188)    
Total Current Assets       (12,145)    
Property, plant and equipment, net       3,513    
Deferred tax assets       4,000    
Total Assets       (4,632)    
Current Liabilities            
Accrued expenses and other liabilities       (1,402)    
Accrued wages and benefits       118    
Income tax payable, net       (20)    
Total Current Liabilities       (1,304)    
Deferred tax liabilities       420    
Other non-current liabilities       (701)    
Total Liabilities       (1,585)    
Redeemable Non-Controlling Interest       3,554    
Equity            
Additional paid-in capital       (850)    
Accumulated other comprehensive income       41    
Retained deficit       (5,792)    
Total Equity       (6,601)    
Total Liabilities, Redeemable Non-Controlling Interest and Equity       $ (4,632)    
v3.25.2
Restatement of Quarterly Financial Information - Schedule of Restatement of Condensed Consolidated Balance Sheets (Parenthetical) (Details) - USD ($)
$ / shares in Units, $ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Jun. 30, 2024
Quarterly Financial Information Disclosure [Abstract]      
Accounts receivable, allowance for credit losses $ 1,258 $ 1,300 $ 191
Common stock, par value $ 0.01 $ 0.01 $ 0.01
Common stock, shares authorized 200,000,000 200,000,000 200,000,000
Common stock, shares issued 80,041,000 79,483,000 79,121,000
Common stock, shares outstanding 79,779,000 79,218,000 78,855,000
Treasury stock, shares 262,000 266,000 266,000
v3.25.2
Restatement of Quarterly Financial Information - Schedule of Restatement of Condensed Consolidated Statement of Loss and Condensed Consolidated Statement of Comprehensive Loss (Details) - USD ($)
$ / shares in Units, shares in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Revenues [Abstract]          
Total Revenue $ 265,068,000 $ 225,991,000   $ 512,812,000 $ 452,164,000
Cost of Revenue [Abstract]          
Total Cost of Revenue 166,144,000 144,732,000   318,712,000 300,590,000
Gross Profit 98,924,000 81,259,000   194,100,000 151,574,000
Selling, general and administrative expenses 60,347,000 59,364,000   110,632,000 118,355,000
Research and development expenses 51,895,000 60,352,000   100,754,000 120,567,000
Goodwill impairment 0 0   0 297,353,000
Operating Loss (13,318,000) (38,457,000)   (17,286,000) (384,701,000)
Interest and dividend income 201,000 366,000   327,000 763,000
Interest expense (4,564,000) (6,906,000)   (9,325,000) (11,504,000)
Net investment gain 3,075,000 872,000   1,389,000 3,125,000
Other (expense) income, net (2,636,000) (901,000)   (1,692,000) 409,000
Loss Before Income Taxes (17,242,000) (45,026,000)   (26,587,000) (391,908,000)
Income tax (expense) benefit (1,016,000) (2,136,000)   (619,000) 16,511,000
Net Loss (18,258,000) (47,162,000)   (27,206,000) (375,397,000)
Less: Net Income attributable to non-controlling interest [1] 2,273,000 2,505,000   4,592,000 5,035,000
Net Loss attributable to ADTRAN Holdings, Inc. $ (20,531,000) $ (49,667,000)   $ (31,798,000) $ (380,432,000)
Weighted average shares outstanding – basic 79,748 78,852   79,642 78,803
Weighted average shares outstanding – diluted 79,748 78,852   79,642 78,803
Loss per common share attributable to ADTRAN Holdings, Inc. - basic [2] $ (0.24) $ (0.63)   $ (0.38) $ (4.83)
Loss per common share attributable to ADTRAN Holdings, Inc. - diluted [2] $ (0.24) $ (0.63)   $ (0.38) $ (4.83)
Net loss $ (18,258,000) $ (47,162,000)   $ (27,206,000) $ (375,397,000)
Other Comprehensive Loss, net of tax          
Defined benefit plan adjustments 268,000 (7,000)   399,000 (67,000)
Foreign currency translation loss 46,455,000 (1,442,000)   66,702,000 (19,215,000)
Other Comprehensive Income (Loss), net of tax 46,723,000 (1,449,000)   67,101,000 (19,282,000)
Comprehensive Income (Loss), net of tax 28,465,000 (48,611,000)   39,895,000 (394,679,000)
Less: Comprehensive Income attributable to non-controlling interest 2,273,000 2,504,000   4,592,000 5,035,000
Comprehensive Income (Loss) attributable to ADTRAN Holdings, Inc., net of tax 26,192,000 (51,115,000)   35,303,000 (399,714,000)
Network Solutions [Member]          
Revenues [Abstract]          
Total Revenue 219,498,000 179,194,000   421,715,000 360,467,000
Cost of Revenue [Abstract]          
Total Cost of Revenue 147,321,000 124,773,000   281,562,000 253,039,000
Gross Profit 72,177,000 54,278,000   140,153,000 98,503,000
Goodwill impairment     $ 297,400,000    
Network Solutions - Inventory Write Down [Member]          
Cost of Revenue [Abstract]          
Total Cost of Revenue   143,000     8,925,000
Services & Support [Member]          
Revenues [Abstract]          
Total Revenue 45,570,000 46,797,000   91,097,000 91,697,000
Cost of Revenue [Abstract]          
Total Cost of Revenue 18,823,000 19,816,000   37,150,000 38,626,000
Gross Profit $ 26,747,000 26,981,000   $ 53,947,000 53,071,000
As Reported [Member]          
Revenues [Abstract]          
Total Revenue   225,991,000     452,164,000
Cost of Revenue [Abstract]          
Total Cost of Revenue   144,416,000     298,334,000
Gross Profit   81,575,000     153,830,000
Selling, general and administrative expenses   59,493,000     118,593,000
Research and development expenses   60,388,000     120,639,000
Goodwill impairment         292,583,000
Operating Loss   (38,306,000)     (377,985,000)
Interest and dividend income   366,000     763,000
Interest expense   (6,906,000)     (11,504,000)
Net investment gain   872,000     3,125,000
Other (expense) income, net   (901,000)     409,000
Loss Before Income Taxes   (44,875,000)     (385,192,000)
Income tax (expense) benefit   (2,136,000)     16,511,000
Net Loss   (47,011,000)     (368,681,000)
Less: Net Income attributable to non-controlling interest   2,854,000     5,734,000
Net Loss attributable to ADTRAN Holdings, Inc.   $ (49,865,000)     $ (374,415,000)
Weighted average shares outstanding – basic   78,852     78,803
Weighted average shares outstanding – diluted   78,852     78,803
Loss per common share attributable to ADTRAN Holdings, Inc. - basic   $ (0.63)     $ (4.75)
Loss per common share attributable to ADTRAN Holdings, Inc. - diluted   $ (0.63)     $ (4.75)
Net loss   $ (47,011,000)     $ (368,681,000)
Other Comprehensive Loss, net of tax          
Defined benefit plan adjustments   (7,000)     (67,000)
Foreign currency translation loss   (1,375,000)     (19,120,000)
Other Comprehensive Income (Loss), net of tax   (1,382,000)     (19,187,000)
Comprehensive Income (Loss), net of tax   (48,393,000)     (387,868,000)
Less: Comprehensive Income attributable to non-controlling interest   2,854,000     5,734,000
Comprehensive Income (Loss) attributable to ADTRAN Holdings, Inc., net of tax   (51,247,000)     (393,602,000)
As Reported [Member] | Network Solutions [Member]          
Revenues [Abstract]          
Total Revenue   179,194,000     360,467,000
Cost of Revenue [Abstract]          
Total Cost of Revenue   124,457,000     250,783,000
As Reported [Member] | Network Solutions - Inventory Write Down [Member]          
Cost of Revenue [Abstract]          
Total Cost of Revenue   143,000     8,925,000
As Reported [Member] | Services & Support [Member]          
Revenues [Abstract]          
Total Revenue   46,797,000     91,697,000
Cost of Revenue [Abstract]          
Total Cost of Revenue   19,816,000     38,626,000
Adjustment [Member]          
Cost of Revenue [Abstract]          
Total Cost of Revenue   316,000     2,256,000
Gross Profit   (316,000)     (2,256,000)
Selling, general and administrative expenses   (129,000)     (238,000)
Research and development expenses   (36,000)     (72,000)
Goodwill impairment         4,770,000
Operating Loss   (151,000)     (6,716,000)
Loss Before Income Taxes   (151,000)     (6,716,000)
Net Loss   (151,000)     (6,716,000)
Less: Net Income attributable to non-controlling interest   (349,000)     (699,000)
Net Loss attributable to ADTRAN Holdings, Inc.   $ 198,000     $ (6,017,000)
Weighted average shares outstanding – basic   78,852     78,803
Weighted average shares outstanding – diluted   78,852     78,803
Loss per common share attributable to ADTRAN Holdings, Inc. - basic   $ 0     $ (0.08)
Loss per common share attributable to ADTRAN Holdings, Inc. - diluted   $ 0     $ (0.08)
Net loss   $ (151,000)     $ (6,716,000)
Other Comprehensive Loss, net of tax          
Foreign currency translation loss   (67,000)     (95,000)
Other Comprehensive Income (Loss), net of tax   (67,000)     (95,000)
Comprehensive Income (Loss), net of tax   (218,000)     (6,811,000)
Less: Comprehensive Income attributable to non-controlling interest   (350,000)     (699,000)
Comprehensive Income (Loss) attributable to ADTRAN Holdings, Inc., net of tax   132,000     (6,112,000)
Adjustment [Member] | Network Solutions [Member]          
Cost of Revenue [Abstract]          
Total Cost of Revenue   $ 316,000     $ 2,256,000
[1] For the three and six months ended June 30, 2025 we accrued $2.4 million and $4.8 million, respectively, net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA. For the three and six months ended June 30, 2024, we accrued $2.5 million and $5.0 million, respectively, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA.
[2] Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $1.5 million effect of redemption of RNCI for the three and six months ended June 30, 2025. See Note 14 for additional information.
v3.25.2
Restatement of Quarterly Financial Information - Schedule of Restatement of Condensed Consolidated Statements of Changes in Stockholders Equity (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2025
Jun. 30, 2024
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
Beginning Balance $ 138,893 $ 126,951 $ 260,849 $ 605,257 $ 126,951 $ 605,257
Net loss (18,258) (8,948) (47,162) (328,235)    
Annual recurring compensation earned (2,273) (2,319) (2,504) (2,531)    
Other comprehensive loss, net of tax 46,723   (1,449)   67,101 (19,282)
Deferred compensation adjustments, net of tax   38 (3) 262    
ADTRAN RSUs and restricted stock vested (54) (1,170) (16) (242)    
ADTRAN stock-based compensation expense 2,678 2,062 3,836 3,957    
Redemption of redeemable non-controlling interest 1,494 (3) 4 1    
Ending Balance 169,613 138,893 213,628 260,849 169,613 213,628
Adtran Networks SE [Member]            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
ADTRAN stock-based compensation expense   1,148 6 (6)    
Retained Deficit [Member]            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
Beginning Balance (700,502) (688,813) (562,492) (231,706) (688,813) (231,706)
Net loss (18,258) (8,948) (47,162) (328,235)    
Annual recurring compensation earned (2,273) (2,319) (2,504) (2,531)    
Deferred compensation adjustments, net of tax     (3) 3    
ADTRAN RSUs and restricted stock vested (54) (1,174) (16) (243)    
ADTRAN stock options exercised       219    
Redemption of redeemable non-controlling interest 1,494 (3) 4 1    
Ending Balance (719,183) (700,502) (612,167) (562,492) (719,183) (612,167)
Retained Deficit [Member] | Adtran Networks SE [Member]            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
ADTRAN stock-based compensation expense     6      
Accumulated Other Comprehensive Income [Member]            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
Beginning Balance 31,632 11,254 29,697 47,530 11,254 47,530
Other comprehensive loss, net of tax     (1,382) (17,833)    
Ending Balance 78,355 31,632 28,315 29,697 78,355 28,315
Additional Paid-in Capital [Member]            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
Beginning Balance 812,071 808,913 798,051 794,468 808,913 794,468
Deferred compensation adjustments, net of tax   (52)   (368)    
ADTRAN stock-based compensation expense 2,678 2,062 3,836 3,957    
Ending Balance $ 814,749 812,071 801,887 798,051 $ 814,749 801,887
Additional Paid-in Capital [Member] | Adtran Networks SE [Member]            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
ADTRAN stock-based compensation expense   $ 1,148   (6)    
As Reported [Member]            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
Other comprehensive loss, net of tax     (1,382)     (19,187)
Ending Balance     220,229     220,229
As Reported [Member] | Retained Deficit [Member]            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
Beginning Balance     (558,363) (243,908)   (243,908)
Net loss     (47,011) (321,670)    
Annual recurring compensation earned     (2,854) (2,880)    
Deferred compensation adjustments, net of tax     (3) 3    
ADTRAN RSUs and restricted stock vested     (16) (243)    
ADTRAN stock options exercised       219    
Redemption of redeemable non-controlling interest     4 1    
Foreign currency remeasurement of redeemable non-controlling interest     1,868 10,115    
Ending Balance     (606,375) (558,363)   (606,375)
As Reported [Member] | Accumulated Other Comprehensive Income [Member]            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
Beginning Balance     29,656 47,461   47,461
Other comprehensive loss, net of tax     (1,382) (17,805)    
Ending Balance     28,274 29,656   28,274
As Reported [Member] | Additional Paid-in Capital [Member]            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
Beginning Balance     798,897 795,304   795,304
Deferred compensation adjustments, net of tax       (368)    
ADTRAN stock-based compensation expense     3,836 3,957    
Ending Balance     802,737 798,897   802,737
As Reported [Member] | Additional Paid-in Capital [Member] | Adtran Networks SE [Member]            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
ADTRAN stock-based compensation expense     4 4    
Adjustment [Member]            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
Other comprehensive loss, net of tax     (67)     (95)
Ending Balance     (6,601)     (6,601)
Adjustment [Member] | Retained Deficit [Member]            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
Beginning Balance     (4,129) 12,202   12,202
Net loss     (151) (6,565)    
Annual recurring compensation earned     350 349    
Foreign currency remeasurement of redeemable non-controlling interest     (1,868) (10,115)    
Ending Balance     (5,792) (4,129)   (5,792)
Adjustment [Member] | Retained Deficit [Member] | Adtran Networks SE [Member]            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
ADTRAN stock-based compensation expense     6      
Adjustment [Member] | Accumulated Other Comprehensive Income [Member]            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
Beginning Balance     41 69   69
Other comprehensive loss, net of tax       (28)    
Ending Balance     41 41   41
Adjustment [Member] | Additional Paid-in Capital [Member]            
Error Corrections and Prior Period Adjustments Restatement [Line Items]            
Beginning Balance     (846) (836)   (836)
Ending Balance     (850) (846)   $ (850)
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     $ (4) $ (10)    
v3.25.2
Restatement of Quarterly Financial Information - Schedule of Restatement of Condensed Consolidated Statements of Cash Flows (Details) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Cash flows from operating activities:          
Net loss $ (18,258,000) $ (47,162,000) $ (27,206,000) $ (375,397,000)  
Adjustments to reconcile net loss to net cash provided by operating activities:          
Depreciation and amortization     44,990,000 44,843,000  
Goodwill impairment 0 0 0 297,353,000  
Amortization of debt issuance cost     639,000 1,013,000  
Gain on investments, net     (1,506,000) (2,867,000)  
Net loss on disposal of property, plant and equipment     24,000 185,000  
Stock-based compensation expense     5,888,000 7,787,000  
Deferred income taxes     1,189,000 (13,684,000)  
Other, net       (126,000)  
Inventory write down - business efficiency program       4,135,000  
Inventory reserves     9,176,000 3,722,000  
Changes in operating assets and liabilities:          
Accounts receivable, net     25,754,000 23,415,000  
Other receivables     1,416,000 6,279,000  
Income taxes receivable, net     (2,349,000) (918,000)  
Inventory     29,594,000 64,407,000  
Prepaid expenses, other current assets and other assets     6,095,000 (18,139,000)  
Accounts payable     (6,242,000) (3,966,000)  
Accrued expenses and other liabilities     (11,305,000) 22,645,000  
Income taxes payable, net     (816,000) (2,878,000)  
Net cash provided by operating activities     75,341,000 57,809,000  
Cash flows from investing activities:          
Purchases of property, plant and equipment     (12,084,000) (24,971,000)  
Purchases of intangibles - developed technology     (20,444,000) (5,725,000)  
Proceeds from sales and maturities of available-for-sale investments     727,000 956,000  
Purchases of available-for-sale investments     (243,000) (121,000)  
Net cash used in investing activities     (32,093,000) (29,861,000)  
Cash flows from financing activities:          
Tax withholdings related to stock-based compensation settlements     (1,223,000) (189,000)  
Proceeds from stock option exercises     1,163,000 219,000  
Proceeds from receivables purchase agreement       68,556,000  
Repayments on receivables purchase agreement       (66,399,000)  
Repayment of revolving credit agreements     (24,000,000) (5,000,000)  
Payment for redemption of redeemable non-controlling interest     (19,363,000) (25,000)  
Payment of debt issuance cost     (64,000) (1,994,000)  
Net cash used in financing activities     (19,487,000) (4,832,000)  
Net increase in cash and cash equivalents     23,761,000 23,116,000  
Effect of exchange rate changes     6,489,000 902,000  
Cash and cash equivalents, beginning of period     76,021,000 87,167,000 $ 87,167,000
Cash and cash equivalents, end of period $ 106,271,000 111,185,000 106,271,000 111,185,000 76,021,000
Supplemental disclosure of cash financing activities:          
Cash paid for interest     8,049,000 6,554,000  
Cash paid for income taxes     4,155,000 7,433,000  
Cash used in operating activities related to operating leases     5,236,000 4,780,000  
Supplemental disclosure of non-cash investing activities:          
Right-of-use assets obtained in exchange for lease obligations     3,538,000 1,999,000  
Purchases of property, plant and equipment included in accounts payable     $ 1,450,000 1,059,000  
As Reported [Member]          
Cash flows from operating activities:          
Net loss   (47,011,000)   (368,681,000)  
Adjustments to reconcile net loss to net cash provided by operating activities:          
Depreciation and amortization       45,156,000  
Goodwill impairment       292,583,000  
Amortization of debt issuance cost       1,013,000  
Gain on investments, net       (2,867,000)  
Net loss on disposal of property, plant and equipment       185,000  
Stock-based compensation expense       7,793,000  
Deferred income taxes       (13,684,000)  
Other, net       (126,000)  
Inventory write down - business efficiency program       4,135,000  
Inventory reserves       3,722,000  
Changes in operating assets and liabilities:          
Accounts receivable, net       26,913,000  
Other receivables       6,279,000  
Income taxes receivable, net       (5,653,000)  
Inventory       62,151,000  
Prepaid expenses, other current assets and other assets       (14,731,000)  
Accounts payable       (3,966,000)  
Accrued expenses and other liabilities       19,152,000  
Income taxes payable, net       (2,878,000)  
Net cash provided by operating activities       56,496,000  
Cash flows from investing activities:          
Purchases of property, plant and equipment       (23,644,000)  
Purchases of intangibles - developed technology       (5,725,000)  
Proceeds from sales and maturities of available-for-sale investments       956,000  
Purchases of available-for-sale investments       (121,000)  
Net cash used in investing activities       (28,534,000)  
Cash flows from financing activities:          
Tax withholdings related to stock-based compensation settlements       (189,000)  
Proceeds from stock option exercises       219,000  
Proceeds from receivables purchase agreement       68,556,000  
Repayments on receivables purchase agreement       (66,399,000)  
Repayment of revolving credit agreements       (5,000,000)  
Payment for redemption of redeemable non-controlling interest       (25,000)  
Payment of debt issuance cost       (1,994,000)  
Net cash used in financing activities       (4,832,000)  
Net increase in cash and cash equivalents       23,130,000  
Effect of exchange rate changes       888,000  
Cash and cash equivalents, beginning of period       87,167,000 $ 87,167,000
Cash and cash equivalents, end of period   111,185,000   111,185,000  
Supplemental disclosure of cash financing activities:          
Cash paid for interest       6,554,000  
Cash paid for income taxes       7,433,000  
Cash used in operating activities related to operating leases       4,780,000  
Supplemental disclosure of non-cash investing activities:          
Right-of-use assets obtained in exchange for lease obligations       1,999,000  
Purchases of property, plant and equipment included in accounts payable       1,059,000  
Adjustment [Member]          
Cash flows from operating activities:          
Net loss   $ (151,000)   (6,716,000)  
Adjustments to reconcile net loss to net cash provided by operating activities:          
Depreciation and amortization       (313,000)  
Goodwill impairment       4,770,000  
Stock-based compensation expense       (6,000)  
Changes in operating assets and liabilities:          
Accounts receivable, net       (3,498,000)  
Income taxes receivable, net       4,735,000  
Inventory       2,256,000  
Prepaid expenses, other current assets and other assets       (3,408,000)  
Accrued expenses and other liabilities       3,493,000  
Net cash provided by operating activities       1,313,000  
Cash flows from investing activities:          
Purchases of property, plant and equipment       (1,327,000)  
Net cash used in investing activities       (1,327,000)  
Cash flows from financing activities:          
Net increase in cash and cash equivalents       (14,000)  
Effect of exchange rate changes       $ 14,000  
v3.25.2
Subsequent Events - Additional Information (Details)
$ in Millions
Jul. 01, 2025
USD ($)
Subsequent Events [Member]  
Subsequent Event [Line Items]  
Annual recurring compensation paid $ 10.1