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Restatement of Quarterly Financial Information (Tables)

3 Months Ended

Mar. 31, 2025

Quarterly Financial Information Disclosure [Abstract]

Schedule of Revised and Restated Quarterly Financial Information


		As of March 31, 2024
ASSETS	Adj Reference	As Reported			Adjustment			As Restated
Current Assets
Cash and cash equivalents		$	106,757		$	—		$	106,757
Accounts receivable, less allowance for credit losses of $367 as of March 31, 2024			187,554			3,498			191,052
Other receivables			12,116			—			12,116
Income tax receivable	ADJ 4		8,717			(4,735	)		3,982
Inventory, net	ADJ 3		322,147			(3,894	)		318,253
Prepaid expenses and other current assets			59,667			(3,889	)		55,778
Total Current Assets			696,958			(9,020	)		687,938
Property, plant and equipment, net			126,969			4,040			131,009
Deferred tax assets	ADJ 4		25,421			4,015			29,436
Goodwill	ADJ 4		55,129			—			55,129
Intangibles, net			306,448			—			306,448
Other non-current assets			87,729			—			87,729
Long-term investments			29,252			—			29,252
Total Assets		$	1,327,906		$	(965	)	$	1,326,941
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY
Current Liabilities
Accounts payable		$	159,083		$	—		$	159,083
Unearned revenue			55,124			3,121			58,245
Accrued expenses and other liabilities	ADJ 1		36,404			(1,403	)		35,001
Accrued wages and benefits			25,869			118			25,987
Income tax payable, net			6,266			—			6,266
Total Current Liabilities			282,746			1,836			284,582
Non-current revolving credit agreement outstanding			195,000			—			195,000
Deferred tax liabilities	ADJ 4		15,414			420			15,834
Non-current unearned revenue			22,884			377			23,261
Non-current pension liability			11,692			—			11,692
Deferred compensation liability			29,709			—			29,709
Non-current lease obligations			27,668			—			27,668
Other non-current liabilities	ADJ 1		35,375			(350	)		35,025
Total Liabilities			620,488			2,283			622,771
Commitments and contingencies (see Note 16)
Redeemable Non-Controlling Interest	ADJ 2		441,635			1,686			443,321
Equity
Common stock, par value $0.01 per share; 200,000 shares authorized; 79,116 shares issued and 78,850 outstanding as of March 31, 2024			791			—			791
Additional paid-in capital			798,897			(846	)		798,051
Accumulated other comprehensive income	ADJ 1, 3, 4		29,656			41			29,697
Retained deficit	ADJ 2, 3, 4		(558,363	)		(4,129	)		(562,492	)
Treasury stock at cost: 265 as of March 31, 2024			(5,198	)		—			(5,198	)
Total Equity			265,783			(4,934	)		260,849
Total Liabilities, Redeemable Non-Controlling Interest and Equity		$	1,327,906		$	(965	)	$	1,326,941


		Three Months Ended March 31, 2024
	Adj Reference	As Reported			Adjustment			As Restated
Revenue
Network Solutions		$	181,273		$	—		$	181,273
Services & Support			44,900			—			44,900
Total Revenue			226,173			—			226,173
Cost of Revenue
Network Solutions	ADJ 3		126,326			1,940			128,266
Network Solutions - inventory write-down and other charges			8,782			—			8,782
Services & Support			18,810			—			18,810
Total Cost of Revenue			153,918			1,940			155,858
Gross Profit			72,255			(1,940	)		70,315
Selling, general and administrative expenses			59,100			(109	)		58,991
Research and development expenses			60,251			(36	)		60,215
Goodwill impairment	ADJ 4		292,583			4,770			297,353
Operating Loss			(339,679	)		(6,565	)		(346,244	)
Interest and dividend income			397			—			397
Interest expense			(4,598	)		—			(4,598	)
Net investment gain			2,253			—			2,253
Other income, net			1,310			—			1,310
Loss Before Income Taxes			(340,317	)		(6,565	)		(346,882	)
Income tax benefit			18,647			—			18,647
Net Loss		$	(321,670	)	$	(6,565	)	$	(328,235	)
Less: Net Income attributable to non-controlling interest(1)	ADJ 1		2,880			(350	)		2,530
Net Loss attributable to ADTRAN Holdings, Inc.		$	(324,550	)	$	(6,215	)	$	(330,765	)

Weighted average shares outstanding – basic			78,814			78,814			78,814
Weighted average shares outstanding – diluted			78,814			78,814			78,814

Loss per common share attributable to ADTRAN Holdings, Inc. – basic		$	(4.12	)	$	(0.08	)	$	(4.20	)
Loss per common share attributable to ADTRAN Holdings, Inc. – diluted		$	(4.12	)	$	(0.08	)	$	(4.20	)

Net Loss		$	(321,670	)	$	(6,565	)	$	(328,235	)
Other Comprehensive Loss, net of tax
Defined benefit plan adjustments			(60	)		—			(60	)
Foreign currency translation loss	ADJ 1, 3		(17,745	)		(28	)		(17,773	)
Other Comprehensive Loss, net of tax			(17,805	)		(28	)		(17,833	)
Comprehensive Loss, net of tax			(339,475	)		(6,593	)		(346,068	)
Less: Comprehensive Income attributable to non-controlling interest, net of tax	ADJ 1		2,880			(349	)		2,531
Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax		$	(342,355	)	$	(6,244	)	$	(348,599	)


	Retained Deficit									Accumulated Other Comprehensive Income									Additional paid-in capital
(In thousands)	As Reported			Adjustment			As Restated			As Reported			Adjustment			As Restated			As Reported			Adjustment			As Restated
Balance as of December 31, 2023	$	(243,908	)	$	12,202		$	(231,706	)	$	47,461		$	69		$	47,530		$	795,304		$	(836	)	$	794,468
Net loss		(321,670	)		(6,565	)		(328,235	)		—			—			—			—			—			—
Annual recurring compensation earned		(2,880	)		349			(2,531	)		—			—			—			—			—			—
Other comprehensive loss, net of tax		—			—			—			(17,805	)		(28	)		(17,833	)		—			—			—
Deferred compensation adjustments, net of tax		3			—			3			—			—			—			(368	)		—			(368	)
ADTRAN RSUs and restricted stock vested		(243	)		—			(243	)		—			—			—			—			—			—
ADTRAN stock options exercised		219			—			219			—			—			—			—			—			—
ADTRAN stock-based compensation expense		—			—			—			—			—			—			3,957			—			3,957
Redemption of redeemable non-controlling interest		1			—			1			—			—			—			—			—			—
Foreign currency remeasurement of redeemable non-controlling interest		10,115			(10,115	)		—			—			—			—			—			—			—
Adtran Networks stock-based compensation expense		—			—			—			—			—			—			4			(10	)		(6	)
Balance as of March 31, 2024	$	(558,363	)	$	(4,129	)	$	(562,492	)	$	29,656		$	41		$	29,697		$	798,897		$	(846	)	$	798,051


		Three Months Ended March 31, 2024
	Adj Reference	As Reported			Adjustment			As Restated
Cash flows from operating activities:
Net loss		$	(321,670	)	$	(6,565	)	$	(328,235	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			22,528			(138	)		22,390
Goodwill Impairment	ADJ 4		292,583			4,770			297,353
Amortization of debt issuance cost			1,013			—			1,013
Gain on investments, net			(2,621	)		—			(2,621	)
Net loss on disposal of property, plant and equipment			150			—			150
Stock-based compensation expense			3,957			(3	)		3,954
Deferred income taxes			(19,738	)		—			(19,738	)
Other, net			545			—			545
Inventory write down			3,992			—			3,992
Inventory reserves			1,837			—			1,837
Changes in operating assets and liabilities:
Accounts receivable, net			26,002			(3,498	)		22,504
Other receivables			5,605			—			5,605
Income taxes receivable, net	ADJ 4		(1,296	)		4,735			3,439
Inventory			30,426			1,940			32,366
Prepaid expenses, other current assets and other assets			(15,882	)		(3,408	)		(19,290	)
Accounts payable			553			—			553
Accrued expenses and other liabilities			7,459			3,494			10,953
Income taxes payable, net			1,155			—			1,155
Net cash provided by operating activities			36,598			1,327			37,925

Cash flows from investing activities:
Purchases of property, plant and equipment			(12,183	)		(1,327	)		(13,510	)
Purchases of intangibles - developed technology			(1,191	)		—			(1,191	)
Proceeds from sales and maturities of available-for-sale investments			873			—			873
Purchases of available-for-sale investments			(44	)		—			(44	)
Net cash used in investing activities			(12,545	)		(1,327	)		(13,872	)

Cash flows from financing activities:
Tax withholdings related to stock-based compensation settlements			(176	)		—			(176	)
Proceeds from stock option exercises			219			—			219
Proceeds from receivables purchase agreement			30,231			—			30,231
Repayments on receivables purchase agreement			(32,437	)		—			(32,437	)
Payment for redemption of redeemable non-controlling interest			(5	)		—			(5	)
Payment of debt issuance cost			(1,994	)		—			(1,994	)
Net cash used in financing activities			(4,162	)		—			(4,162	)

Net increase in cash and cash equivalents			19,891			—			19,891
Effect of exchange rate changes			(301	)		—			(301	)
Cash and cash equivalents, beginning of period			87,167			—			87,167
Cash and cash equivalents, end of period		$	106,757		$	—		$	106,757

Supplemental disclosure of cash financing activities:
Cash paid for interest		$	5,243		$	—		$	5,243
Cash paid for income taxes		$	596		$	—		$	596
Cash used in operating activities related to operating leases		$	2,384		$	—		$	2,384
Supplemental disclosure of non-cash investing activities:
Right-of-use assets obtained in exchange for lease obligations		$	842		$	—		$	842
Purchases of property, plant and equipment included in accounts payable		$	1,689		$	—		$	1,689