ADTRAN Holdings Inc. Common Stock (ADTN)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

ADTRAN is a communications equipment supplier. In fiscal 2025, the year ended 2025-12-31, it reported revenue of $1.1 billion but a net loss of $45.7 million and diluted EPS of -$0.52. That was better than fiscal 2024's net loss of $459.9 million and fiscal 2023's net loss of $268.9 million, yet it remains a business without consistent earning power. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, had revenue of $281.1 million, net income of -$10.9 million, and diluted EPS of -$0.13; fiscal Q1 2026 had revenue of $286.1 million and a net loss of $1.3 million. So revenue is growing modestly and losses are narrowing, but the trend is not yet proven. Free cash flow of $23.1 million over the trailing twelve months and a 4.1% FCF yield are positives. Still, FairStock's negative P/E, 4.38 P/B, -3.17% ROE, -0.07% ROCE, 4/9 Piotroski F-Score, and 0.12 Altman Z-Score suggest weak profitability and fragile financial strength. Debt/equity of 0.50 is not alarming. At the $6.96 close on 2026-10-13, the $567.1 million market cap and 6.84 EV/EBITDA could look reasonable if EBITDA is durable, but with no profits in four years, the Lynch category is none. As a Buffett/Graham investor, I see no clear moat or margin of safety in the numbers. I would need consistent positive net income, stronger returns on capital, and a healthier balance sheet before calling this a sound value candidate.

In plain English: ADTRAN sells networking equipment and services to phone and internet providers. The business has been losing money for years, though sales are growing modestly and it is generating some cash. At $6.96, the stock does not look clearly cheap because profits are still negative and the price is high compared with its accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer