Adtran Holdings, Inc. key statistics and ratios

In fiscal 2025, Adtran Holdings, Inc. had return on equity of -33.5%, an operating margin of -1.4%, debt equal to 132.4% of equity and a current ratio of 1.76. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Adtran Holdings, Inc.: financial ratios, annual
Fiscal year	2009Dec 2009	2010Dec 2010	2011Dec 2011	2012Dec 2012	2013Dec 2013	2014Dec 2014	2015Dec 2015	2016Dec 2016	2017Dec 2017	2018Dec 2018	2019Dec 2019	2020Dec 2020	2021Dec 2021	2022Dec 2022	2023Dec 2023	2024Dec 2024	2025Dec 2025	LTMJun 2026
Gross margin	59.3%	59.3%	57.8%	51.0%	48.1%	49.4%	44.5%	45.8%	45.5%	38.5%	41.3%	43.0%	38.8%	31.9%	28.8%	35.1%	38.3%	38.5%
Operating margin	21.5%	25.4%	26.4%	9.1%	7.6%	7.5%	2.2%	5.4%	5.6%	−8.6%	−7.5%	−1.9%	−2.6%	−7.1%	−19.5%	−46.3%	−1.4%	−0.2%
Net margin	15.3%	18.8%	19.3%	7.6%	7.1%	7.1%	3.1%	5.5%	3.6%	−3.7%	−10.0%	0.5%	−1.5%	−0.2%	−23.4%	−49.8%	−4.2%	−2.3%
Free-cash-flow margin	16.8%	13.7%	19.3%	11.9%	8.0%	7.1%	1.1%	3.2%	−8.6%	8.9%	−2.3%	−4.5%	−0.5%	−6.0%	−6.9%	7.5%	9.0%	5.0%
Return on equity	16.4%	22.2%	21.9%	6.8%	7.1%	7.7%	3.6%	7.3%	4.9%	−4.1%	−12.8%	0.6%	−2.4%	−0.2%	−28.2%	−125.6%	−33.5%	−18.9%
Return on assets	13.1%	18.1%	18.4%	5.6%	5.5%	5.8%	2.7%	5.4%	3.6%	−3.0%	−9.0%	0.4%	−1.6%	−0.2%	−14.8%	−32.3%	−3.8%	−2.2%
Asset turnover	0.86	0.96	0.95	0.73	0.77	0.82	0.88	0.98	1.00	0.82	0.90	0.95	1.03	0.82	0.63	0.65	0.91	0.97
Current ratio	6.82	7.10	6.32	4.20	3.71	2.95	3.37	2.79	3.87	3.01	2.84	3.37	2.42	2.06	2.62	2.04	1.76	1.79
Debt to equity	10.6%	8.3%	6.7%	6.7%	7.7%	5.5%	6.0%	5.8%	5.4%	5.7%	6.5%	0.1%	—	7.4%	32.2%	149.3%	132.4%	149.7%
Interest cover (operating income ÷ interest)	42.9x	63.2x	78.9x	23.9x	20.8x	69.6x	22.6x	60.4x	67.2x	n/m	n/m	n/m	n/m	n/m	n/m	n/m	n/m	n/m
Effective tax rate	31.0%	32.2%	32.8%	35.2%	24.7%	25.5%	27.5%	24.9%	46.7%	—	—	—	—	—	—	—	—	—
R&D as % of revenue	17.2%	14.9%	14.0%	20.3%	20.4%	21.0%	21.6%	19.6%	19.6%	23.5%	23.8%	22.4%	19.3%	16.9%	22.5%	24.0%	18.8%	18.3%
SG&A as % of revenue	20.5%	18.9%	17.4%	21.7%	20.2%	20.9%	20.6%	20.7%	20.3%	23.5%	24.6%	22.5%	22.1%	20.4%	22.5%	25.2%	20.9%	20.4%
Capital spending as % of revenue	1.8%	1.6%	1.6%	2.0%	1.3%	1.8%	2.0%	3.4%	2.2%	1.5%	1.8%	1.3%	1.0%	1.7%	3.2%	3.7%	2.9%	3.2%
Free cash flow ÷ net income	109.7%	72.7%	100.1%	155.6%	112.7%	99.9%	36.5%	58.4%	−239.5%	—	—	−964.3%	—	—	—	—	—	—
Dividends ÷ net income	30.3%	19.7%	16.7%	48.2%	46.7%	44.6%	98.7%	50.0%	73.0%	—	—	728.9%	—	—	—	—	—	—
Dividends and buybacks ÷ free cash flow	47.2%	49.2%	42.3%	84.5%	282.3%	225.4%	>999%	211.2%	—	69.3%	—	—	—	—	—	0.0%	—	—

US$ thousands unless shown otherwise. Fiscal quarters.

Adtran Holdings, Inc.: financial ratios, quarterly
Quarter	2024 Q3Sept 2024	2024 Q4Dec 2024	2025 Q1Mar 2025	2025 Q2Jun 2025	2025 Q3Sept 2025	2025 Q4Dec 2025	2026 Q1Mar 2026	2026 Q2Jun 2026
Gross margin	36.5%	36.9%	38.4%	37.3%	38.3%	39.0%	39.5%	37.0%
Operating margin	−11.5%	−6.9%	−1.6%	−5.0%	−1.0%	1.5%	2.2%	−3.6%
Net margin	−14.6%	−19.0%	−4.5%	−7.7%	−3.7%	−1.2%	−0.5%	−3.9%
Free-cash-flow margin	16.3%	−0.4%	14.4%	10.4%	1.5%	10.5%	1.8%	6.0%
Current ratio	2.03	2.04	2.02	1.96	1.96	1.76	1.77	1.79
Debt to equity	—	—	—	—	136.2%	132.4%	140.6%	149.7%
R&D as % of revenue	22.7%	20.3%	19.7%	19.6%	18.5%	17.8%	17.7%	19.1%
SG&A as % of revenue	25.3%	23.5%	20.3%	22.8%	20.8%	19.7%	19.5%	21.4%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

3 of 6 checks passed · June 30, 2026

What it owns · $1.1bn

Short-term assets $618mLonger-term assets $532m

What it owes, and who funded it · $791m

Short-term liabilities $345mLonger-term liabilities $316mShareholders' equity $129m

Short-term assets cover short-term liabilities $618m of assets due within a year against $345m of liabilities due within a year.
Short-term assets cover long-term liabilities $618m short-term assets against $316m of longer-dated liabilities.
More cash than debt $79m of cash against $194m of debt.
Debt below 40% of shareholders' equity Debt is 150% of equity.
Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
A year's operating cash flow covers at least 20% of debt $93m of operating cash flow against $194m of debt.
Operating profit covers interest at least five times over Operating income of −$2m against $18m of interest.

From Adtran Holdings, Inc.'s latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

51 /100

Moderate moat

How hard Adtran Holdings's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 20 / 20

Cash operating profit has been a median 17.0% of total assets over 10 years.
Pricing power 11 / 20

Gross margin has been a median 39.9%, moving by 4.8 percentage points (standard deviation) across 10 years.
Durability 10 / 20

Operating margin has been a median -3.1%; its worst year was -54.1%.
Cash conversion 5 / 20

Free cash flow was positive in 5 of 10 years, at a median -0.1% of revenue.
Discipline 10 / 20

The diluted share count rose 64.3% over five years; stock-based pay has been a median 1.3% of revenue.

AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (56 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Adtran Holdings, Inc.'s SEC filings (10-K and 10-Q), retrieved October 26, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Adtran Holdings, Inc.