Shares of Ribbon Communications Inc. (RBBN) tumbled 13% in after-hours trading on Wednesday following the release of its third-quarter 2025 financial results, which fell short of analysts' expectations across multiple metrics.

The communications software company reported a net loss of $12 million for Q3, translating to an earnings per share (EPS) of -$0.07. Adjusted EPS came in at $0.04, missing the analyst consensus estimate of $0.06 by 31.03%. Revenue for the quarter was $215 million, falling short of the expected $220.04 million by 2.29%. While this represents a 2.27% increase from the same period last year, it wasn't enough to meet market expectations. The company's adjusted EBITDA of $29 million also missed estimates of $31.3 million.

Looking ahead, Ribbon Communications provided guidance for the fourth quarter, projecting revenue between $230 million and $250 million. This outlook, combined with the underwhelming Q3 results, appears to have further dampened investor sentiment. The significant after-hours drop suggests that market participants are reassessing their expectations for the company's near-term performance and growth prospects in light of these financial results.