EX-99.1 2 ex9912025q3earningspressre.htm EX-99.1 Document

FOR IMMEDIATE RELEASE

Ciena Reports Fiscal Third Quarter 2025 Financial Results


HANOVER, Md. - September 4, 2025 - Ciena® Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal third quarter ended August 2, 2025.

•Q3 Revenue: $1.22 billion

•Q3 Net Income per Share: $0.35 GAAP; $0.67 adjusted (non-GAAP)

•Share Repurchases: Repurchased approximately 1.0 million shares of common stock for an aggregate price of $81.8 million during the quarter

"We delivered another strong quarterly performance that reflects our leadership in high-speed connectivity and ongoing accelerated customer demand as the network becomes fundamental to the underpinning, growth, and monetization of AI," said Gary Smith, president and CEO, Ciena. "With visibility well into fiscal year 2026, we are confident in the continued momentum of our business and remain focused on further expanding our operating leverage as we continue to grow."

For the fiscal third quarter 2025, Ciena reported revenue of $1.22 billion as compared to $942.3 million for the fiscal third quarter 2024.

Ciena's GAAP net income for the fiscal third quarter 2025 was $50.3 million, or $0.35 per diluted common share, which compares to a GAAP net income of $14.2 million, or $0.10 per diluted common share, for the fiscal third quarter 2024.

Ciena's adjusted (non-GAAP) net income for the fiscal third quarter 2025 was $96.2 million, or $0.67 per diluted common share, which compares to an adjusted (non-GAAP) net income of $50.8 million, or $0.35 per diluted common share, for the fiscal third quarter 2024.











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Fiscal Third Quarter 2025 Performance Summary
The tables below (in millions, except percentage data) provide comparisons of certain quarterly results to the prior year. Appendices A and B set forth reconciliations between the GAAP and adjusted (non-GAAP) measures contained in this release.
GAAP Results (unaudited)
Q3Q3Period Change
FY 2025FY 2024Y-T-Y*
Revenue$1,219.4 $942.3 29.4 %
Gross margin41.3 %42.9 %(1.6)%
Operating expense$429.5 $377.2 13.9 %
Operating margin6.1 %2.9 %3.2 %
Non-GAAP Results (unaudited)
Q3Q3Period Change
FY 2025FY 2024Y-T-Y*
Revenue$1,219.4 $942.3 29.4 %
Adj. gross margin41.9 %43.7 %(1.8)%
Adj. operating expense$380.2 $336.0 13.2 %
Adj. operating margin10.7 %8.0 %2.7 %
Adj. EBITDA$158.0 $98.5 60.4 %
* Denotes % change, or in the case of margin, absolute change
Revenue by Segment (unaudited)
Q3 FY 2025Q3 FY 2024
Revenue%**Revenue%**
Networking Platforms
Optical Networking$815.5 66.9 $606.8 64.4 
Routing and Switching125.9 10.3 92.7 9.8 
Total Networking Platforms941.4 77.2 699.5 74.2 
Platform Software and Services90.0 7.4 83.2 8.9 
Blue Planet Automation Software and Services27.8 2.3 25.8 2.7 
Global Services
Maintenance Support and Training80.7 6.6 74.4 7.9 
Installation and Deployment65.9 5.4 46.5 4.9 
Consulting and Network Design13.6 1.1 12.9 1.4 
Total Global Services160.2 13.1 133.8 14.2 
Total$1,219.4 100.0 $942.3 100.0 
** Denotes % of total revenue

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Additional Performance Metrics for Fiscal Third Quarter 2025
Revenue by Geographic Region (unaudited)
Q3 FY 2025Q3 FY 2024
Revenue% **Revenue% **
Americas$923.6 75.7 $718.6 76.3 
Europe, Middle East and Africa186.0 15.3 135.0 14.3 
Asia Pacific109.8 9.0 88.7 9.4 
Total$1,219.4 100.0 $942.3 100.0 

** Denotes % of total revenue
•Two customers represented 10%-plus of revenue combining for a total of 28.8% of revenue
•Cash and investments totaled $1.39 billion
•Cash flow from operations totaled $174.3 million
•Average days' sales outstanding (DSOs) were 88
•Accounts receivable, net balance was $1.03 billion
•Unbilled contract asset, net balance was $164.3 million
•Inventories totaled $860.4 million, including:
◦Raw materials: $642.7 million
◦Work in process: $35.6 million
◦Finished goods: $261.8 million
◦Deferred cost of sales: $41.8 million
◦Reserve for excess and obsolescence: $(121.5) million
•Product inventory turns were 2.7
•Headcount totaled 9,213

Business Outlook for Fiscal Fourth Quarter 2025
Statements relating to business outlook are forward-looking in nature and actual results may differ materially. These statements should be read in the context of the “Economic considerations and assumptions” in our accompanying Earnings Presentation, and each of the "Forward-Looking Statements" and "Reconciliation of Adjusted (Non- GAAP) Measurements" found in the Notes to Investors below.
Ciena expects fiscal fourth quarter 2025 financial performance to include:
• Revenue in the range of $1.24 billion to $1.32 billion
• Adjusted (non-GAAP) gross margin between 42% to 43%
• Adjusted (non-GAAP) operating expense in a range of $390 million to $400 million

Supplemental Materials and Live Web Broadcast of Unaudited Fiscal Third Quarter 2025 Results
Today, Thursday, September 4, 2025, in conjunction with this announcement, Ciena has posted to the Quarterly Results page of the Investor Relations section of its website certain related supporting materials for its unaudited fiscal third quarter 2025 results.

Ciena's management will also host a discussion today with investors and financial analysts that will include the Company's outlook. The live audio web broadcast beginning at 8:30 a.m. Eastern will be accessible via www.ciena.com. An archived replay of the live broadcast will be available shortly following its conclusion on the Investor Relations page of Ciena's website.
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Notes to Investors

Forward-Looking Statements. You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission ("SEC") filings, recent news, financial results, supplemental financial information, and other announcements. From time to time we exclusively post material information to this website along with other disclosure channels that we use. This press release contains certain forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, forecasts, assumptions and other information available to the Company as of the date hereof. Forward-looking statements include statements regarding Ciena's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. Forward-looking statements in this release include: "We delivered another strong quarterly performance that reflects our leadership in high-speed connectivity and ongoing accelerated customer demand as the network becomes fundamental to the underpinning, growth, and monetization of AI. With visibility well into fiscal year 2026, we are confident in the continued momentum of our business and remain focused on further expanding our operating leverage as we continue to grow."

Ciena's actual results, performance or events may differ materially from these forward-looking statements made or implied due to a number of risks and uncertainties relating to Ciena's business, including: the effect of broader economic and market conditions on our customers, their spending and their businesses and markets; our ability to execute our business and growth strategies; the impact of macroeconomic conditions and global supply chain constraints or disruptions including increased supply costs and lead times; the impact of the introduction of new technologies by us or our competitors; the timing and size of customer orders, their delivery dates and our ability to recognize revenue relating to such sales; the level of competitive pressure we encounter; the product, customer and geographic mix of sales within the period; changes in foreign currency exchange rates; factors beyond our control such as natural disasters, climate change, acts of war or terrorism, geopolitical tensions or events, including but not limited to the ongoing conflicts between Ukraine and Russia, and Israel and Hamas, and public health emergencies or epidemics and pandemics; changes in tax or trade regulations, including the imposition of tariffs, duties or efforts to withdraw from or materially modify international trade agreements; cyberattacks, data breaches or other security incidents involving our enterprise network environment or our products; regulatory changes, litigation involving our intellectual property or government investigations; and the other risk factors disclosed in Ciena’s periodic reports filed with the Securities and Exchange Commission (SEC) including its Annual Report on Form 10-K filed with the SEC on December 20, 2024 and included in its Quarterly Report on Form 10-Q for the third quarter of fiscal 2025 to be filed with the SEC. Ciena assumes no obligation to update any forward-looking information included in this press release.

Non-GAAP Presentation of Quarterly and Annual Results. This release includes non-GAAP measures of Ciena's gross profit, operating expense, income from operations, earnings before interest, tax, depreciation and amortization (EBITDA), Adjusted EBITDA, and measures of net income and net income per share. In evaluating the operating performance of Ciena's business, management excludes certain charges and credits that are required by GAAP. These items share one or more of the following characteristics: they are unusual and Ciena does not expect them to recur in the ordinary course of its business; they do not involve the expenditure of cash; they are unrelated to the ongoing operation of the business in the ordinary course; or their magnitude and timing is largely outside of Ciena's control. Management believes that the non-GAAP measures below provide management and investors useful information and meaningful insight to the operating performance of the business. The presentation of these non-GAAP financial measures should be considered in addition to Ciena's GAAP results and these measures are not intended to be a substitute for the financial information prepared and presented in accordance with GAAP. Ciena's non-GAAP measures and the related adjustments may differ from non-GAAP measures used by other companies and should only be used to evaluate Ciena's results of operations in conjunction with our corresponding GAAP results. To the extent not previously disclosed in a prior Ciena financial results press release, Appendices A and B to this press release set forth a complete GAAP to non-GAAP reconciliation of the non-GAAP measures contained in this release.

With respect to Ciena’s expectations under “Business Outlook for Fiscal Fourth Quarter 2025” above, Ciena is not able to provide a quantitative reconciliation of the adjusted (non-GAAP) gross margin and adjusted (non-GAAP) operating expense guidance measures to the corresponding gross profit and gross profit percentage, and operating
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expense GAAP measures without unreasonable efforts. Ciena cannot provide meaningful estimates of the non-recurring charges and credits excluded from these non-GAAP measures due to the forward-looking nature of these estimates and their inherent variability and uncertainty. For the same reasons, Ciena is unable to address the probable significance of the unavailable information.

About Ciena. Ciena (NYSE: CIEN) is a global leader in networking systems, services, and software. We build the most adaptive networks in the industry, enabling customers to anticipate and meet ever-increasing digital demands. For three-plus decades, Ciena has brought our humanity to our relentless pursuit of innovation. Prioritizing collaborative relationships with our customers, partners, and communities, we create flexible, open, and sustainable networks that better serve all users—today and into the future. For updates on Ciena, follow us on LinkedIn, X, the Ciena Insights blog, or visit www.ciena.com.
 

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CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Quarter EndedNine Months Ended
 August 2,July 27,August 2,July 27,
 2025202420252024
Revenue:  
Products$976,801 $729,503 $2,730,167 $2,266,596 
Services242,584 212,805 687,356 624,247 
Total revenue1,219,385 942,308 3,417,523 2,890,843 
Cost of goods sold:  
Products580,028 433,533 1,620,816 1,315,737 
Services136,278 104,830 368,969 315,538 
Total cost of goods sold716,306 538,363 1,989,785 1,631,275 
Gross profit503,079 403,945 1,427,738 1,259,568 
Operating expenses:  
Research and development211,898 188,888 619,429 571,537 
Selling and marketing148,724 121,520 424,911 373,749 
General and administrative60,596 58,248 171,450 162,504 
Significant asset impairments and restructuring costs1,770 1,361 5,262 21,987 
Amortization of intangible assets6,556 7,185 19,646 22,384 
Total operating expenses429,544 377,202 1,240,698 1,152,161 
Income from operations73,535 26,743 187,040 107,407 
Interest and other income, net15,090 14,013 34,539 36,460 
Interest expense(22,806)(24,401)(67,421)(72,038)
Loss on extinguishment and modification of debt— — (729)— 
Income before income taxes65,819 16,355 153,429 71,829 
Provision for income taxes
15,511 2,125 49,580 24,901 
Net income$50,308 $14,230 $103,849 $46,928 
Net Income per Common Share
Basic net income per common share$0.35 $0.10 $0.73 $0.32 
Diluted net income per potential common share $0.35 $0.10 $0.72 $0.32 
Weighted average basic common shares outstanding141,846 144,394 142,437 144,876 
Weighted average dilutive potential common shares outstanding1
144,499 145,361 145,158 145,795 

1 Weighted average dilutive potential common shares outstanding used in calculating GAAP diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 2.7 million for both the third quarter and first nine months of fiscal 2025; and (ii) 1.0 million and 0.9 million for the third quarter and first nine months of fiscal 2024, respectively.

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CIENA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
August 2,
2025		November 2,
2024
ASSETS 
Current assets: 
Cash and cash equivalents$1,055,976 $934,863 
Short-term investments270,380 316,343 
Accounts receivable, net1,025,563 908,597 
Inventories, net860,403 820,430 
Prepaid expenses and other473,901 564,183 
Total current assets3,686,223 3,544,416 
Long-term investments64,397 80,920 
Equipment, building, furniture and fixtures, net368,348 337,722 
Operating right-of-use assets40,347 27,417 
Goodwill444,828 444,707 
Other intangible assets, net138,673 165,020 
Deferred tax asset, net851,903 886,441 
Other long-term assets154,059 154,694 
Total assets$5,748,778 $5,641,337 
LIABILITIES AND STOCKHOLDERS’ EQUITY 
Current liabilities: 
Accounts payable$464,684 $423,401 
Accrued liabilities and other short-term obligations436,312 393,905 
Deferred revenue196,209 156,379 
Operating lease liabilities14,694 14,455 
Current portion of long-term debt11,580 11,700 
Total current liabilities1,123,479 999,840 
Long-term deferred revenue81,057 81,240 
Other long-term obligations195,976 185,938 
Long-term operating lease liabilities34,498 25,107 
Long-term debt, net1,526,467 1,533,074 
Total liabilities2,961,477 2,825,199 
Stockholders’ equity:
Preferred stock – par value $0.01; 20,000,000 shares authorized; zero shares issued and outstanding
— — 
Common stock – par value $0.01; 290,000,000 shares authorized; 141,342,527 and 142,656,116 shares issued and outstanding
1,413 1,427 
Additional paid-in capital6,020,315 6,154,869 
Accumulated other comprehensive loss(44,829)(46,711)
Accumulated deficit(3,189,598)(3,293,447)
Total stockholders’ equity2,787,301 2,816,138 
Total liabilities and stockholders’ equity$5,748,778 $5,641,337 
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CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended
 August 2,July 27,
 20252024
Cash flows provided by operating activities: 
Net income$103,849 $46,928 
Adjustments to reconcile net income to net cash provided by operating activities: 
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements76,637 68,997 
Share-based compensation expense135,696 115,433 
Amortization of intangible assets26,343 30,675 
Deferred taxes(21,709)(19,909)
Provision for inventory excess and obsolescence34,185 35,400 
Provision for warranty16,302 14,708 
Other(1,838)11,968 
Changes in assets and liabilities: 
Accounts receivable(116,887)92,421 
Inventories(73,493)78,220 
Prepaid expenses and other137,440 (221,823)
Operating lease right-of-use assets8,759 8,963 
Accounts payable, accruals and other obligations83,354 (112,352)
Deferred revenue38,246 28,833 
Short and long-term operating lease liabilities(11,868)(13,290)
Net cash provided by operating activities435,016 165,172 
Cash flows used in investing activities: 
Payments for equipment, furniture, and fixtures(95,373)(53,098)
Purchases of investments(191,335)(197,303)
Proceeds from sales and maturities of investments261,611 114,899 
Settlement of foreign currency forward contracts, net(2,635)(362)
Purchase of equity investments— (21,682)
Net cash used in investing activities(27,732)(157,546)
Cash flows used in financing activities: 
Proceeds for modification of debt, net19,175 — 
Cash paid for extinguishment of debt(19,175)— 
Payment of long term debt(8,685)(5,850)
Payment of debt issuance costs(12)(2,554)
Payment of finance lease obligations(3,244)(3,004)
Shares repurchased for tax withholdings on vesting of stock unit awards(60,043)(33,450)
Repurchases of common stock - repurchase program, net(250,035)(125,816)
Proceeds from issuance of common stock35,874 34,292 
Net cash used in financing activities(286,145)(136,382)
Effect of exchange rate changes on cash, cash equivalents and restricted cash60 1,499 
Net increase (decrease) in cash, cash equivalents and restricted cash121,199 (127,257)
Cash, cash equivalents and restricted cash at beginning of period935,026 1,010,786 
Cash, cash equivalents and restricted cash at end of period$1,056,225 $883,529 
Supplemental disclosure of cash flow information 
Cash paid during the period for interest, net$68,243 $64,999 
Cash paid during the period for income taxes, net$84,898 $41,736 
Operating lease payments$13,246 $14,672 
Non-cash investing and financing activities
Purchase of equipment in accounts payable$14,819 $35,316 
Repurchase of common stock in accrued liabilities from repurchase program, net$2,231 $1,762 
Operating right-of-use assets subject to lease liability $21,850 $5,326 
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APPENDIX A - Reconciliation of Adjusted (Non- GAAP) Measurements
(in thousands, except per share data) (unaudited)
Quarter Ended
August 2,July 27,
20252024
Gross Profit Reconciliation (GAAP/non-GAAP)
GAAP gross profit$503,079 $403,945 
Share-based compensation-products2,027 1,660 
Share-based compensation-services3,942 3,122 
Amortization of intangible assets2,232 2,764 
Total adjustments related to gross profit8,201 7,546 
Adjusted (non-GAAP) gross profit$511,280 $411,491 
Adjusted (non-GAAP) gross profit percentage41.9 %43.7 %
Operating Expense Reconciliation (GAAP/non-GAAP)
GAAP operating expense$429,544 $377,202 
Share-based compensation-research and development16,749 13,118 
Share-based compensation-sales and marketing13,277 10,315 
Share-based compensation-general and administrative11,008 9,257 
Significant asset impairments and restructuring costs1,770 1,361 
Amortization of intangible assets6,556 7,185 
Total adjustments related to operating expense49,360 41,236 
Adjusted (non-GAAP) operating expense$380,184 $335,966 
Income from Operations Reconciliation (GAAP/non-GAAP)
GAAP income from operations$73,535 $26,743 
Total adjustments related to gross profit8,201 7,546 
Total adjustments related to operating expense49,360 41,236 
Total adjustments related to income from operations57,561 48,782 
Adjusted (non-GAAP) income from operations$131,096 $75,525 
Adjusted (non-GAAP) operating margin percentage10.7 %8.0 %
Net Income Reconciliation (GAAP/non-GAAP)
GAAP net income$50,308 $14,230 
Exclude GAAP provision for income taxes15,511 2,125 
Income before income taxes65,819 16,355 
Total adjustments related to income from operations57,561 48,782 
Adjusted income before income taxes123,380 65,137 
Non-GAAP tax provision on adjusted income before income taxes27,144 14,330 
Adjusted (non-GAAP) net income$96,236 $50,807 
Weighted average basic common shares outstanding141,846144,394
Weighted average dilutive potential common shares outstanding 1
144,499145,361
Net Income per Common Share
GAAP diluted net income per potential common share$0.35 $0.10 
Adjusted (non-GAAP) diluted net income per potential common share$0.67 $0.35 

1 Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 2.7 million for the third quarter of fiscal 2025; and (ii) 1.0 million for the third quarter of fiscal 2024.
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APPENDIX B - Calculation of EBITDA and Adjusted EBITDA
(in thousands) (unaudited)
Quarter Ended
August 2,July 27,
20252024
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
Net income (GAAP)$50,308 $14,230 
Add: Interest expense22,806 24,401 
Less: Interest and other income, net15,090 14,013 
Add: Provision for income taxes15,511 2,125 
Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements26,866 22,981 
Add: Amortization of intangible assets8,788 9,949 
EBITDA$109,189 $59,673 
Add: Share-based compensation expense47,003 37,472 
Add: Significant asset impairments and restructuring costs1,770 1,361 
Adjusted EBITDA$157,962 $98,506 
* * *
The adjusted (non-GAAP) measures above and their reconciliation to Ciena's GAAP results for the periods presented reflect adjustments relating to the following items:
•Share-based compensation - a non-cash expense incurred in accordance with share-based compensation accounting guidance.
•Significant asset impairments and restructuring costs - costs incurred as a result of restructuring activities taken to align resources with perceived market opportunities, the redesign of business processes and restructuring certain real estate facilities.
•Amortization of intangible assets - a non-cash expense arising from the acquisition of intangible assets, principally developed technologies and customer-related intangibles, that Ciena is required to amortize over an expected useful life.
•Non-GAAP tax provision - consists of current and deferred income tax expense commensurate with the level of adjusted income before income taxes and utilizes a current, blended U.S. and foreign statutory annual tax rate of 22.0% for both the third quarter of fiscal 2025 and fiscal 2024. This rate may be subject to change in the future, including as a result of changes in tax policy or tax strategy.
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