ADTRAN Holdings, Inc.

Mr. Peter Schulman, Vice President, Investor Relations, you may begin your conference call.

Thank you, Kate. Welcome, and thank you for joining us today for ADTRAN holding second quarter 2025 financial results conference call, and welcome to all those joining by webcast. During the conference call, ADTRAN representatives will make forward-looking statements that reflect management's best judgment based on factors currently known. However, these statements involve risks and uncertainties, including those detailed in our earnings release, our annual report on Form 10-K as amended, and other filings with the SEC. These risks and uncertainties could cause actual results to differ materially from those in our forward-looking statements, which may be made during the call. We undertake no obligation to update any statements to reflect events that occur after this call. During today's call, we will refer to certain non-GAAP financial measures. Reconciliation of GAAP to non-GAAP measures and certain additional information are also included in our investor presentation and our earnings release. We have not provided reconciliations of our third quarter 2025 outlook with regard to non-GAAP operating margin because we cannot predict and quantify without unreasonable effort all the adjustments that may occur during the period. The Investor Relations presentation has been updated and is available for download on the ATRAN Investor Relations website. Turning to the agenda, Tom Stanton, ATRAN Holding CEO and Chairman of the Board, will provide the key investment highlights for the second quarter 2025. Tim Santo, our Senior Vice President and CFO, will review the quarterly financial performance in detail and provide our third quarter 2025 outlook, and then we will take any questions that you may have. I'd now like to turn the call over to Tom Stanton.

Thank you, Peter. Good morning, everyone. ATRAN delivered solid second quarter results marked by stronger revenue performance, healthy profitability, and continued balance sheet improvements. As previously disclosed in our pre-announcement, revenue exceeded our expectations with sequential and -over-year growth across all three of our revenue categories. This performance reflects strong execution and market share gains coupled with an improving industry backdrop driven by renewed infrastructure investment, the normalization of service provider spending, and growing demand for advanced fiber and optical solutions. Importantly, cash generation remained healthy with $32.2 million in cash from operations and $18.3 million in free cash flow. I'm encouraged by the improving demand environment across our key market segments. These demand trends not only supported our strong Q2 performance, but also increased our confidence in our outlook for continued growth over the coming quarters. Turning to the quarterly results, ATRAN's revenue of $265.1 million was above the high end of our previous guidance range. All three revenue categories delivered sequential growth, and for the second straight quarter, each revenue category generated -over-year gains. This broad-based momentum reinforces the strong competitive positioning of our optical transport, fiber access, and subscriber solutions portfolios. As expected, the highest sequential revenue growth in the quarter came from our optical networking solutions, which grew 22% -over-year and 15% sequentially. This growth was driven by demand in both the U.S. and -U.S. regions, with the most significant gains coming from our U.S. service provider customers. New customer acquisition also remained strong with 18 new optical customers added during the quarter, including several cross-selling wins, further validating the synergies with our optical transport and fiber access portfolios. There are multiple application demand drivers fueling the investment in optical networks. These include the build-out of private compute infrastructure, the expansion of wholesale service providers to connect AI infrastructure, ongoing 5G densification, and upgrading critical infrastructure. Combining these application demands with new customer wins and a return to more normalized service provider buying patterns gives us optimism for sustained growth in this category. In access and aggregation, we followed a very strong first quarter with additional growth in the second quarter, growing an impressive 30% -over-year for the quarter. This category was led by the strength of our large European service providers and -mid-size U.S. service providers, with many of these customers not only expanding their fiber footprint, but also expanding their share of business with us. New customer acquisition with our fiber access platforms also remained healthy. The ongoing success in our access and aggregation solutions is being driven by the technical leadership shown in our SDX portfolio and the corresponding Mosaic Cloud software. In the last two years, more than 10 million homes have been passed with fiber using the SDX6330 alone, highlighting the momentum of the flagship platform in our fiber access portfolio. Demonstrating our ongoing commitment to innovation, we recently connected the first commercial 50GPON customers in the U.K. using our new SDX6400 series. These product investments paired with our strong regional presence in the U.S. and Europe, new customer wins, and the continued demand for high-speed fiber-based broadband has us well positioned to sustain this success into the future. Our subscriber solutions category grew 4% sequentially after a strong first quarter. Within this category, residential solutions performed particularly well, increasing 18% sequentially and 25% -over-year. Importantly, new customer acquisitions remained strong, with 20 new service provider and government customers added for our subscriber solutions category during the quarter. Subscriber solutions revenue is growing due to expanded fiber connectivity, rising multi-gigabit demand, and service providers adopting bundled broadband solutions covering both access and in-home needs. Our broad subscriber solutions portfolio covers residential, enterprise, and wholesale fiber services and is being expanded to address the unique needs of SMB, MDU, and community Wi-Fi with the launch of our SDG9000 series of products. The expanded offering, along with continued demand for high-speed fiber services and large-scale deployments of our complementary fiber access platform, is expected to result in further growth in this segment during this quarter. Our Mosaic Software Suite integrates our comprehensive fiber networking portfolio, which covers everything from the optical core to the customer premise. Leveraging this extensive range of solutions and advanced software capabilities, we are well positioned to facilitate the industry's transition towards AI-driven network operations. Live customers are currently in progress, featuring our new suite of AI applications, including advanced generative and agentic AI tools. These complement and enhance our Mosaic One offering. Early results highlight the ability of these applications to transform how networks are operated by substantially lowering network operating costs while improving the subscriber experience. In summary, we are encouraged by the progress we made during the second quarter, both financially and strategically. We delivered growth across all major revenue categories and advanced our position in key technology domains. Our continued investments in next-generation optical, fiber access, and subscriber solutions are translating into new customer wins and deeper engagement with existing accounts. The ongoing expansion of AI infrastructure, especially as it moves closer to the network edge, plays directly to our strengths. Looking ahead, we remain confident in our outlook for the second half of the year. Strong customer demand and disciplined execution position as well to deliver continued improvement in profitability and cash generation, both of which are central to our long-term strategy. With a differentiated portfolio, expanding global presence, and increasing relevance in next-generation network architectures, we believe AdTran is exceptionally well positioned to for sustained success. With that, I'll turn the call over to Tim, our CFO, to walk you through our financial results for the second quarter. And then following Tim's remarks, we'll open the call up to any questions you may have. Tim?