ment of their class-5 switches with Ribbon’s modern cloud-centric unified communication systems.
Our IP optical networks segment also had a solid quarter, with sales increasing 2% year over year and 14% sequentially, driven by growth in North America and India. Despite a slight decrease in gross margin, adjusted EBITDA improved compared to the same quarter last year. Our ongoing investment in R&D and technology innovation has positioned us well to capitalize on the growing demand for next-generation fiber broadband networks and advanced IP services. We remain confident in our ability to achieve our full-year revenue guidance of $870 million, with continued strong performance in the second half of the year.
Currency headwinds, like the weakening U.S. dollar, to create $5 million in earnings pressure in 2025. Revenue for Q2 2025 was $221 million, up 15% year over year. Adjusted EBITDA was $32 million, increasing 47% year over year. Cloud and Edge segment saw $137 million in revenue, up 24% year over year. IP Optical Networks segment had $84 million in revenue, a 2% increase year over year. Cash from operations was a $1 million usage in Q2 2025, with a closing cash balance of $62 million, down $12 million from Q1. Adjusted EBITDA for the Cloud and Edge segment was $37 million in Q2 2025, up 43% year over year. In addition, we’re working with Verizon to virtualize their existing wireline voice soft switch cores, which includes a virtual C20 call controller and Neptune router for IP traffic aggregation. Currency headwinds are expected to impact earnings by $5 million in 2025, with revenue hitting $221 million in Q2 2025, up 15% year over year. Adjusted EBITDA was $32 million, Cloud and Edge segment had $137 million in revenue, with a 61.9% gross margin. Sales in India rose over 40% year over year. Verizon accounted for 20% of total company sales. Q3 2025 revenue is projected at $213 million–$227 million. Cash tax savings expected to be $15 million–$20 million in 2025. Stock repurchase program initiated. Full-year revenue guidance remains at $870 million for FY2025. Profitability is expected to improve with a strong demand picture remaining robust. Currency headwinds are expected to impact earnings by $5 million in 2025. Q2 2025 revenue reached $221 million, with adjusted EBITDA at $32 million. Cloud and Edge segment sales saw revenue of $137 million, while IP Optical Networks segment sales were $84 million. Cloud and Edge segment gross margin was 61.9%, with adjusted EBITDA at $37 million. Service Provider revenue grew 18%, while Enterprise revenue increased by 7%. Q3 2025 revenue is projected at $213 million–$227 million, with non-GAAP adjusted EBITDA expected in a range of $28 million–$34 million. Full-year revenue guidance remains at $870 million for FY2025. Deferred revenue rose from $23.5 million to $31.7 million. Legislative changes are expected to deliver $15 million–$20 million in cash tax savings in 2025. The company expects growth in the voice communications business to continue. In Q2 of 2025, revenue for the company was $221 million, up 15% year over year, with adjusted EBITDA at $32 million, a 47% increase year over year. The Cloud and Edge segment saw $137 million in revenue, up 24% year over year, with a gross margin of 61.9%. The IP Optical Networks segment had $84 million in revenue, a 2% increase year over year. The company expects a $5 million earnings hit due to currency headwinds, primarily from a weakening U.S. dollar. The company reaffirmed full-year revenue guidance at $870 million for FY2025. Currency headwinds are expected to pressure earnings for calendar year 2025 by $5 million due to a weakening U.S. dollar. Revenue for Q2 2025 reached $221 million, up 15% year over year, and 22% sequentially, exceeding guidance. Adjusted EBITDA was $32 million in Q2 2025, a 47% increase year over year. Cloud and Edge segment saw $137 million in revenue in Q2 2025 with a 24% year-over-year increase. Gross margin for this segment was 61.9% in Q2 2025, down 60 basis points sequentially. Adjusted EBITDA for the Cloud and Edge segment was $37 million in Q2 2025, a 43% year-over-year increase. Currency headwinds, including a weakening U.S. dollar, are expected to impact earnings by $5 million in 2025, primarily affecting operating expenses and gross margin. Q2 2025 revenue was $221 million, up 15% year over year, with adjusted EBITDA at $32 million, a 47% year-over-year increase. Cloud and Edge segment sales were $137 million, up 24% year over year. IP Optical Networks segment saw $84 million in revenue, a 2% increase year over year. Book-to-Bill ratio remained above 1.0 times. Revenue guidance for Q3 2025 is $213 million–$227 million.
Deferred revenue increased from $23.5 million at Q1 2025-end to $31.7 million at Q2 2025-end, driven by maintenance contracts and multi-quarter product/services programs. The book-to-bill ratio remained above 1.0 times. Q3 2025 gross margin is expected to improve due to a higher mix of software sales. Year-over-year gross margin is lower due to increased professional services. IP Optical gross margin improved 760 basis points sequentially. Q2 2025 cash balance was $62 million. Q3 2025 revenue guidance is $213 million–$227 million. Currency headwinds, including a weakening U.S. dollar, will impact earnings by $5 million in 2025, with effects on operating expenses and gross margin. Q2 2025 saw $221 million in revenue, a 15% increase year over year, with adjusted EBITDA at $32 million, up 47%. Cloud and Edge segment revenue was $137 million, up 24% year over year, with a gross margin of 61.9%. IP Optical Networks segment revenue was $84 million, up 2% year over year. Full-year revenue guidance remains at $870 million for FY2025. The company also expects tax savings of $15-20 million due to new tax laws.
Read more at RISKS
A weakening U.S. dollar is expected to create $5 million in annual earnings pressure for calendar year 2025, impacting operating expenses and gross margin. Future outcomes depend on exchange rate stability. Gross margin and adjusted EBITDA for 2025 may fall to the lower end of management’s guidance range due to currency pressures and higher hardware and professional services sales.
TAKEAWAYS
Revenue for Q2 2025 reached $221 million, up 15% year over year. Adjusted EBITDA was $32 million, a 47% increase. Cloud and Edge segment sales saw $137 million in revenue, a 24% year-over-year increase. IP Optical Networks segment sales generated $84 million, up 2% year over year. Service provider revenue grew 18% year over year, while enterprise revenue increased 7% year over year. Book-to-bill ratio remains above 1.0 times.