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

The communications software and network solutions provider reported a net loss of $12 million for the quarter, translating to earnings per share (EPS) of -$0.07. Adjusted EPS came in at $0.04, significantly below the analyst consensus estimate of $0.06. This represents a 31.03% miss and a 20% decrease compared to the same period last year. Revenue for the quarter stood at $215 million, missing the analyst forecast of $220.04 million by 2.29%, despite showing a modest 2.27% year-over-year increase.

Other key financial metrics also disappointed investors. Adjusted EBITDA was reported at $29 million, falling short of the $31.3 million estimate, while adjusted net income of $7 million missed the expected $10.3 million. Adding to the negative sentiment, Ribbon Communications provided a Q4 outlook projecting revenue between $230 million and $250 million, which may have been perceived as conservative by market participants. The combination of missed targets and a potentially cautious outlook appears to have triggered the significant after-hours sell-off, reflecting investor concerns about the company's near-term growth prospects and profitability.