Vistance Networks, Inc.

Good day and thank you for standing by. Welcome to the Distance Network's fourth quarter and full year 2025 earnings conference call. At this time, all participants are in a list only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jenny Thompson, Vice President, Investor Relations. Please go ahead.

Good morning, and thank you for joining us today to discuss Vistance Network's 2025 full year and fourth quarter results. I'm Jenny Thompson, Vice President of Investor Relations for Vistance Networks, and with me on today's call are Chuck Treadway, President and CEO, and Kyle Lorenzen, Executive Vice President and CFO. You can find the slides that accompany this report on our Investor Relations website. Please note that some of our comments today will contain forward-looking statements based on the current view of our business, and actual future results may differ materially. Please see our recent SEC filings, which identify the principal risks and uncertainties that could affect future performance. Before I turn the call over to Chuck, I have a few housekeeping items to review. Today we will discuss certain adjusted or non-GAAP financial measures, which are described in more detail in this morning's earnings materials. Reconciliations of our non-GAAP financial measures and other associated disclosures are contained in our earnings materials and posted on our website. All references during today's discussion will be to our adjusted results. All quarterly growth rates described during today's presentation are on a year-over-year basis unless otherwise noted. I'll now turn the call over to our President and CEO, Chuck Treadway.

Thank you, Jenny. Good morning, everyone. I'll begin on slide three. On January 9th, we announced the closing of the CCS transaction to Amphenol. We were excited about this transaction as it allows us to manage our leverage situation and create significant value for shareholders. As a result of the transaction, we repaid all of our existing debt and redeemed the preferred equity. After placing a modest amount of new leverage on distance networks, we would then distribute the excess cash to our shareholders as a special distribution. CommScope was renamed Distance Networks on January 14, 2026, as the CommScope name and brand conveyed with the CCS sale. Distance Networks will shape the future of communications technology pushing past what is possible. We deliver solutions that bring reliability and performance to a world always in motion. Our global team of innovators and employees are trusted advisors who listen to customers first and then deliver value. Business Networks will be the parent company of Aurora Networks, formerly known as the Access Network Solutions business, and Ruckus Networks. Aurora Network's comprehensive end-to-end product portfolio supports global service providers with innovative, leading HSC and broadband network products. The Ruckus Network segment develops purpose-driven networking solutions, enabling positive business outcomes in the world's most demanding environments. An industry leader in innovation, the Ruckus Network's portfolio includes award-winning Wi-Fi, switching and cloud managed platforms. Now I'd like to give you an update on the fourth quarter and full year earnings on slide four. I'm pleased to announce that in the fourth quarter, business networks delivered core net sales of $515 million, a year over year increase of 24% and core adjusted EBITDA of $99 million, a year over year increase of 55%. For clarification, Business Networks results include our two remaining businesses, Aurora and Ruckus. The positive results were generated by strong performance by our Aurora Networks segment. In addition to strong revenue and adjusted EBITDA in the fourth quarter, we ended the year with cash of $923 million, an increase of 31% from prior quarter. On an annual basis, Business Networks delivered core net sales of $1.93 billion, increasing 40% from the prior year. Core adjusted EBITDA ended the year at $379 million, an increase of $242 million, or 176% compared to the prior year. We beat our full-year adjusted EBITDA guidance of $350 million to $375 million for core business networks. As we move into 2026, we are well-positioned to continue to benefit from the upgrade cycles in both businesses. Based on our current visibility, we are projecting 2026 core business adjusted EBITDA in the $350 million to $400 million range. With that, now I'd like to give you an update on each of our businesses. Starting with Aurora Networks, net sales of $347 million were up 33% in the fourth quarter compared to the prior year, and adjusted EBITDA was up 112%. The full year net sales ended at $1.23 billion, which increased $397 million, or 47% compared to the prior year. Adjusted EBITDA for the full year was $252 million, which increased 138% versus prior year. These increases were primarily driven by the continued deployment of our new DOCSIS 4.0 amplifier and node products. We had another record quarter of DOCSIS 4.0 amplifier shipments in Q4. Our FDX amplifier deployment with Comcast continues to go well, and this is reflected in our results. We continue to make headway with our suite of next-generation ESD DOCSIS 4.0 amplifiers, and they have been qualified by another major North American MSO. We expect to begin shipping to them in Q1 of 2026 as they ramp up their upgrade plans. Although we expect our legacy business to decline over time, in 2025, we experience strong legacy license sales as customers continue to delay DOCSIS 4.0 upgrades. We expect legacy license sales to normalize in 2026, which could result in a decline in EBITDA. During the fourth quarter, we received approval for our unified nodes. This new node allows our customers to choose between either the 1.8 gigahertz ESD or FDX technology within a single device. This new product is now available and expected to ship in the first half of 2026. Additionally, over the last quarter, we continued the rollout of our VC-CAP solution with multiple large European service providers. The network upgrades include Aurora Network's cloud native VC-CAP Evo, providing significant enhancements to the operator's service offerings, paving the way to DOCSIS 4.0. The solutions deployed also include a mix of Aurora Network's nodes and remote-fi devices, as well as those from other vendors, demonstrating the flexibility of our standards-based solution to best meet the unique requirements of multiple operator environments. In the quarter, We also continue development on our next generation pond products, including advancing our relationship with Altice Labs. We also want a significant new order in Asia with remote OLT and a new pond chassis order in Europe. As stated before, we believe Aurora Networks is well positioned with decades of knowledge of our customers' ecosystems and a broad array of new products for service, providers to take advantage of the latest DOCSIS 4.0 upgrade cycle, as well as evolving their legacy DOCSIS 3.1 networks. The new products position Aurora Networks to maintain performance as the market shifts away from our legacy products. I am going to provide details on Core Ruckus Networks, which excludes the one-sell business, which was sold in May of 2025. In Core Ruckus Networks, Revenue was up 16% in the fourth quarter compared to the prior year. Core Ruckus adjusted EBITDA of $20 million was down $5 million or 22% versus Q4 of 2024. The decline in adjusted EBITDA was driven by our continued investment in sales and higher incentive compensation. Core Ruckus Network's full year revenue ended up at $687 million. up $166 million or 32% compared to 2024. One of the key drivers of our above-market growth was the approximately $30 million year-over-year investment in sales initiatives. Core Ruckus Network's adjusted EBITDA for the year was $128 million, which was up $86 million or 210% versus the prior year. We are pleased with our revenue growth year-over-year and the adjusted EBITDA we delivered. which allows us to invest in our strategic initiatives to fuel growth in 2026. In addition to our investment in sales, products, and technologies, we are pleased with our progress in our Ruckus One subscription business, where we grew deferred revenue by 93%. This will continue to be a focus for the Ruckus team as we move forward to a subscription license and support model. In the fourth quarter, we continued our focus on providing purpose-driven networking solutions for our customers and executed our vertical market strategy. We gained market traction with our Wi-Fi 7 solutions, as demonstrated by securing multiple deals with major U.S. professional sports stadiums. Additionally, we were excited about several international wins, including projects for upgrading aging Wi-Fi 5 and switching infrastructure for a luxury boutique hotel group in Europe. Subsequent to year end, we were also awarded a deal for a hospital in the Middle East, where we will implement a complete Wi-Fi 7 switching network refresh. As we continue to execute new commercial strategies within select verticals, we expect to continue to gain market share. Also during the quarter, Ruckus Networks unveiled the new Ruckus MDU suite featuring innovative AI and Wi-Fi 7 wall plate solutions for high density residential environments. This new suite of solutions meets stakeholder demands through its ability to combine enterprise level Wi-Fi analytics with cloud simplicity and automation. This enables more devices per unit, lower latency, higher reliability, and a reduction in manual troubleshooting. These outcomes will drive improved resident satisfaction and optimize operating costs for managed service providers and property owners. In January of 2026, we were privileged to announce that Ruckus Networks will be the official networking partner of the TGR Haas F1 team. Ruckus Networks will provide its purpose-driven network solutions, delivering cutting-edge connectivity across its factories in Kannapolis, North Carolina, Banbury, UK, and Marinello, Italy, which gives the teams the ability to manage all locations remotely from our Ruckus One cloud management platform. Ruckus will be trusted to power critical race day network operations to meet the demands of the Pinnacle Motorsport, allowing the team to deploy an advanced engineering solution with our versatile and high-performing offering. With strong year-over-year improvements, our investment in selling resources and pipeline of innovations, we made progress across all of our initiatives in 2025, resulting in market share gains. Ruckus is well positioned for growth in 2026, driven by continued demand for our Wi-Fi 7 product offering and our strategic go-to-market investments. We expect to continue to grow market share and deliver low teen adjusted EBITDA growth in 2026. Before handing the call over to Kyle, I would like to address the DDR4 memory chip supply issue that is impacting most companies in our industry. As you are aware, supply of DDR4 memory has tightened, and we are experiencing availability and pricing impacts. Both of our businesses use these chips. As we navigate this situation, we are actively working on several countermeasures, including product re-engineering, alternative chip supply, and price increases. In addition to the above, we have on-hand inventory. Vistins already has significant seasonality and variability in our quarterly results. As we have said in the past, due to the seasonality and project nature of our business, annual performance is the best measurement. And with that, I'd like to turn things over to Kyle to talk more about our full year and fourth quarter results.