Is the business good?
How good a business is ADTN?
ADTRAN Holdings, Inc. earns −8.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
−8.4%
Return on invested capital · cost of capital 9.0% · 17 points below what the capital costs: growth destroys value
- Operating margin
- −0.47%
Operating margin · Communication Equipment median 4.4% · 12 months to Q1 2026
- Share count, year on year
- +0.99%
Share count, year on year · flat: no meaningful dilution
- R&D as % of revenue
- 18%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −1.9% |
| FY2021 | −2.6% |
| FY2022 | −7.1% |
| FY2023 | −19% |
| FY2024 | −46% |
| FY2025 | −1.4% |
Details›
- Gross margin12 months to Q1 2026
- 39%
- Operating margin12 months to Q1 2026
- −0.47%
- Net margin12 months to Q1 2026
- −3.2%
- Free cash flow margin
- 6.0%
- R&D as % of revenue
- 18%
- Revenue, trailing twelve months
- $1.12B
- Free cash flow, trailing twelve months
- $67M
- Net income, trailing twelve months
- −$36M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −8.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Communication Equipment
Ranks #14 of 21 by Smart Score