# Ciena Corporation (CIEN) Q3 2025 Financial Results Summary
**Release Date: September 4, 2025**
Ciena Corporation (NYSE: CIEN) announced its unaudited financial results for the fiscal third quarter ended August 2, 2025. The results showcase strong revenue growth and significant advancements in net income compared to the same quarter last year. Below is a comprehensive summary of the financial results:
### Financial Highlights
– **Revenue:** Ciena reported revenue of **$1.22 billion**, which represents a **29.4% increase** from **$942.3 million** in Q3 2024.
– **Net Income:**
– GAAP net income was **$50.3 million**, or **$0.35 per diluted share**, compared to **$14.2 million** or **$0.10 per diluted share** in Q3 2024.
– Adjusted (non-GAAP) net income was **$96.2 million**, or **$0.67 per diluted share**, up from **$50.8 million** or **$0.35 per diluted share** in the same quarter last year.
### Operating Performance
– **Gross Margin:** Ciena’s GAAP gross margin decreased to **41.3%**, down **1.6 percentage points** from **42.9%** in Q3 2024.
– **Operating Expense:** Total operating expenses increased to **$429.5 million**, marking a **13.9% increase** from **$377.2 million** in the prior year.
– **Operating Margin:** Operating margin improved to **6.1%**, up **3.2 percentage points** from **2.9%** in Q3 2024.
### Segment Performance
– **Networking Platforms Revenue:**
– Optical Networking revenue was **$815.5 million** (66.9% of total revenue), an increase from **$606.8 million** (64.4%).
– Routing and Switching revenue reached **$125.9 million** (10.3% of revenue), which was up from **$92.7 million** (9.8%).
– **Total Networking Platforms Revenue:** **$941.4 million** (77.2% of total revenue), up from **$699.5 million** (74.2%).
– **Global Services Revenue:** **$160.2 million**, increasing from **$133.8 million**, representing **13.1%** of total revenue.
### Geographic Revenue Distribution
– **Americas:** **$923.6 million** (75.7% of total revenue), up from **$718.6 million** (76.3%).
– **Europe, Middle East, and Africa (EMEA):** **$186.0 million** (15.3%), up from **$135.0 million** (14.3%).
– **Asia Pacific:** **$109.8 million** (9.0%), increased from **$88.7 million** (9.4%).
### Cash Flow and Balance Sheet
– **Cash and Investments:** Totaled **$1.39 billion**, showcasing a liquid position.
– **Cash Flow from Operations:** Ciena recorded **$174.3 million** in cash flow from operations.
– **Accounts Receivable (net):** **$1.03 billion**; Inventory totaled **$860.4 million** with a reserve for excess and obsolescence of **$(121.5 million)**.
– **Average Days Sales Outstanding (DSOs):** Remaining consistent at **88 days**.
### Share Repurchase Program
– Ciena repurchased approximately **1.0 million shares** of common stock for an aggregate price of **$81.8 million** during the quarter.
### Business Outlook
– For the fiscal fourth quarter 2025, Ciena expects:
– Revenue between **$1.24 billion** and **$1.32 billion**.
– Adjusted (non-GAAP) gross margin expected between **42% and 43%**.
– Adjusted (non-GAAP) operating expenses ranging from **$390 million to $400 million**.
Ciena’s performance in the fiscal third quarter of 2025 indicates a robust demand for its networking products and services, driven by the increased need for high-speed connectivity, particularly in the context of growing AI applications. The company’s strategic focus on expanding its operational capabilities and capitalizing on customer demand appears to position it well for continued success in the upcoming quarters.
# CIENA CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
| Quarter Ended | August 2, 2025 | July 27, 2024 | Nine Months Ended | August 2, 2025 | July 27, 2024 |
|---|---|---|---|---|---|
| Revenue: | |||||
| Products | $ 976,801 | $ 729,503 | $ 2,730,167 | $ 2,266,596 | |
| Services | $ 242,584 | $ 212,805 | $ 687,356 | $ 624,247 | |
| Total revenue | $ 1,219,385 | $ 942,308 | $ 3,417,523 | $ 2,890,843 | |
| Cost of goods sold: | |||||
| Products | $ 580,028 | $ 433,533 | $ 1,620,816 | $ 1,315,737 | |
| Services | $ 136,278 | $ 104,830 | $ 368,969 | $ 315,538 | |
| Total cost of goods sold | $ 716,306 | $ 538,363 | $ 1,989,785 | $ 1,631,275 | |
| Gross profit | $ 503,079 | $ 403,945 | $ 1,427,738 | $ 1,259,568 | |
| Operating expenses: | |||||
| Research and development | $ 211,898 | $ 188,888 | $ 619,429 | $ 571,537 | |
| Selling and marketing | $ 148,724 | $ 121,520 | $ 424,911 | $ 373,749 | |
| General and administrative | $ 60,596 | $ 58,248 | $ 171,450 | $ 162,504 | |
| Significant asset impairments and | $ 1,770 | $ 1,361 | $ 5,262 | $ 21,987 | |
| restructuring costs | |||||
| Amortization of intangible assets | $ 6,556 | $ 7,185 | $ 19,646 | $ 22,384 | |
| Total operating expenses | $ 429,544 | $ 377,202 | $ 1,240,698 | $ 1,152,161 | |
| Income from operations | $ 73,535 | $ 26,743 | $ 187,040 | $ 107,407 | |
| Interest and other income, net | $ 15,090 | $ 14,013 | $ 34,539 | $ 36,460 | |
| Interest expense | $(22,806) | $(24,401) | $(67,421) | $(72,038) | |
| Loss on extinguishment and modification | $ — | $ — | $(729) | $ — | |
| of debt | |||||
| Income before income taxes | $ 65,819 | $ 16,355 | $ 153,429 | $ 71,829 | |
| Provision for income taxes | $ 15,511 | $ 2,125 | $ 49,580 | $ 24,901 | |
| Net income | $ 50,308 | $ 14,230 | $ 103,849 | $ 46,928 | |
| Net Income per Common Share | |||||
| Basic net income per common share | $ 0.35 | $ 0.10 | $ 0.73 | $ 0.32 | |
| Diluted net income per potential common | $ 0.35 | $ 0.10 | $ 0.72 | $ 0.32 | |
| share | |||||
| Weighted average basic common shares | 141,846 | 144,394 | 142,437 | 144,876 | |
| outstanding | |||||
| Weighted average dilutive potential | 144,499 | 145,361 | 145,158 | 145,795 | |
| common shares outstanding |
# CIENA CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
| August 2, 2025 | November 2, 2024 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 1,055,976 | $ 934,863 |
| Short-term investments | $ 270,380 | $ 316,343 |
| Accounts receivable, net | $ 1,025,563 | $ 908,597 |
| Inventories, net | $ 860,403 | $ 820,430 |
| Prepaid expenses and other | $ 473,901 | $ 564,183 |
| Total current assets | $ 3,686,223 | $ 3,544,416 |
| Long-term investments | $ 64,397 | $ 80,920 |
| Equipment, building, furniture | $ 368,348 | $ 337,722 |
| and fixtures, net | ||
| Operating right-of-use assets | $ 40,347 | $ 27,417 |
| Goodwill | $ 444,828 | $ 444,707 |
| Other intangible assets, net | $ 138,673 | $ 165,020 |
| Deferred tax asset, net | $ 851,903 | $ 886,441 |
| Other long-term assets | $ 154,059 | $ 154,694 |
| Total assets | $ 5,748,778 | $ 5,641,337 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 464,684 | $ 423,401 |
| Accrued liabilities and | $ 436,312 | $ 393,905 |
| other short-term obligations | ||
| Deferred revenue | $ 196,209 | $ 156,379 |
| Operating lease liabilities | $ 14,694 | $ 14,455 |
| Current portion of long-term | $ 11,580 | $ 11,700 |
| debt | ||
| Total current liabilities | $ 1,123,479 | $ 999,840 |
| Long-term deferred revenue | $ 81,057 | $ 81,240 |
| Other long-term obligations | $ 195,976 | $ 185,938 |
| Long-term operating lease | $ 34,498 | $ 25,107 |
| liabilities | ||
| Long-term debt, net | $ 1,526,467 | $ 1,533,074 |
| Total liabilities | $ 2,961,477 | $ 2,825,199 |
| Stockholders’ equity: | ||
| Preferred stock – par value | $ — | $ — |
| 0.01; 20,000,000 shares | ||
| authorized; zero shares issued | ||
| and outstanding | ||
| Common stock – par value | $ 1,413 | $ 1,427 |
| 0.01; 290,000,000 shares | ||
| authorized; 141,342,527 and | ||
| 142,656,116 shares issued | ||
| and outstanding | ||
| Additional paid-in capital | $ 6,020,315 | $ 6,154,869 |
| Accumulated other comprehensive | $ – |
