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Restatement of Quarterly Financial Information | 9 Months Ended
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Sep. 30, 2025
Quarterly Financial Information Disclosure [Abstract] |
Restatement of Quarterly Financial Information | 20. RESTATEMENT OF QUARTERLY FINANCIAL INFORMATION As previously disclosed in our Form 10-K/A and as discussed in Note 1 “Summary of Significant Accounting Policies”, the following tables reflect the impact of errors and other previously identified immaterial errors to the specific line items presented in our previously reported (a) Condensed Consolidated Balance Sheets; (b) Condensed Consolidated Statements of Loss and Condensed Consolidated Statements of Comprehensive Income (Loss); (c) Condensed Consolidated Statements of Changes in Equity and; (d) Condensed Consolidated Statements of Cash Flows as of and for the nine months ended September 30, 2024.
|  |  | As of September 30, 2024 |
| Adj Reference |  | As Reported |  |  | Adjustment |  |  | As Restated |
ASSETS |  |  |  |  |  |  |  |  |  |
Current Assets |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  | $ | 88,456 |  |  | $ | — |  |  | $ | 88,456 |
Accounts receivable, less allowance for credit losses of $420 as of September 30, 2024 |  |  |  | 172,025 |  |  |  | — |  |  |  | 172,025 |
Other receivables |  |  |  | 12,871 |  |  |  | — |  |  |  | 12,871 |
Income tax receivable | ADJ 4 |  |  | 13,466 |  |  |  | — |  |  |  | 13,466 |
Inventory, net | ADJ 3 |  |  | 282,926 |  |  |  | (6,608 | ) |  |  | 276,318 |
Prepaid expenses and other current assets |  |  |  | 69,112 |  |  |  | (2,597 | ) |  |  | 66,515 |
Total Current Assets |  |  |  | 638,856 |  |  |  | (9,205 | ) |  |  | 629,651 |
Property, plant and equipment, net |  |  |  | 147,428 |  |  |  | 3,124 |  |  |  | 150,552 |
Goodwill | ADJ 4 |  |  | 56,884 |  |  |  | — |  |  |  | 56,884 |
Intangibles, net |  |  |  | 286,098 |  |  |  | — |  |  |  | 286,098 |
Deferred tax assets | ADJ 4 |  |  | 25,697 |  |  |  | — |  |  |  | 25,697 |
Other non-current assets |  |  |  | 86,677 |  |  |  | — |  |  |  | 86,677 |
Long-term investments |  |  |  | 31,506 |  |  |  | — |  |  |  | 31,506 |
Total Assets |  |  | $ | 1,273,146 |  |  | $ | (6,081 | ) |  | $ | 1,267,065 |
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY |  |  |  |  |  |  |  |  |  |
Current Liabilities |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  | $ | 173,354 |  |  | $ | — |  |  | $ | 173,354 |
Unearned revenue |  |  |  | 54,615 |  |  |  | — |  |  |  | 54,615 |
Accrued expenses and other liabilities | ADJ 1 |  |  | 34,482 |  |  |  | (1 | ) |  |  | 34,481 |
Accrued wages and benefits |  |  |  | 40,366 |  |  |  | — |  |  |  | 40,366 |
Income tax payable, net |  |  |  | 2,007 |  |  |  | 4,887 |  |  |  | 6,894 |
Total Current Liabilities |  |  |  | 304,824 |  |  |  | 4,886 |  |  |  | 309,710 |
Non-current revolving credit agreement outstanding |  |  |  | 189,849 |  |  |  | — |  |  |  | 189,849 |
Deferred tax liabilities | ADJ 4 |  |  | 21,483 |  |  |  | (3,726 | ) |  |  | 17,757 |
Non-current unearned revenue |  |  |  | 24,901 |  |  |  | — |  |  |  | 24,901 |
Non-current pension liability |  |  |  | 12,149 |  |  |  | — |  |  |  | 12,149 |
Deferred compensation liability |  |  |  | 32,046 |  |  |  | — |  |  |  | 32,046 |
Non-current lease obligations |  |  |  | 25,635 |  |  |  | — |  |  |  | 25,635 |
Other non-current liabilities |  |  |  | 26,489 |  |  |  | — |  |  |  | 26,489 |
Total Liabilities |  |  |  | 637,376 |  |  |  | 1,160 |  |  |  | 638,536 |
Commitments and contingencies (see Note 18) |  |  |  |  |  |  |  |  |  |
Redeemable Non-Controlling Interest |  |  |  | 421,776 |  |  |  | 1,175 |  |  |  | 422,951 |
Equity |  |  |  |  |  |  |  |  |  |
Common stock, par value $0.01 per share; 200,000 shares authorized; 79,233 shares issued and 78,967 outstanding as of September 30, 2024 |  |  |  | 792 |  |  |  | — |  |  |  | 792 |
Additional paid-in capital |  |  |  | 806,187 |  |  |  | (645 | ) |  |  | 805,542 |
Accumulated other comprehensive income | ADJ 1, 3, 4 |  |  | 47,377 |  |  |  | (151 | ) |  |  | 47,226 |
Retained deficit | ADJ 1, 3, 4 |  |  | (635,164 | ) |  |  | (7,620 | ) |  |  | (642,784 | )
Treasury stock at cost: 266 shares as of September 30, 2024 |  |  |  | (5,198 | ) |  |  | — |  |  |  | (5,198 | )
Total Equity |  |  |  | 213,994 |  |  |  | (8,416 | ) |  |  | 205,578 |
Total Liabilities, Redeemable Non-Controlling Interest and Equity |  |  | $ | 1,273,146 |  |  | $ | (6,081 | ) |  | $ | 1,267,065 |
|  |  | Three Months Ended September 30, 2024 |  |  | Nine Months Ended September 30, 2024 |
| Adj Reference |  | As Reported |  |  | Adjustment |  |  | As Restated |  |  | As Reported |  |  | Adjustment |  |  | As Restated |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Network Solutions |  |  | $ | 181,488 |  |  | $ | — |  |  | $ | 181,488 |  |  | $ | 541,955 |  |  | $ | — |  |  | $ | 541,955 |
Services & Support |  |  |  | 46,216 |  |  |  | — |  |  |  | 46,216 |  |  |  | 137,913 |  |  |  | — |  |  |  | 137,913 |
Total Revenue |  |  |  | 227,704 |  |  |  | — |  |  |  | 227,704 |  |  |  | 679,868 |  |  |  | — |  |  |  | 679,868 |
Cost of Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Network Solutions | ADJ 3 |  |  | 126,103 |  |  |  | 2,217 |  |  |  | 128,320 |  |  |  | 376,886 |  |  |  | 4,473 |  |  |  | 381,359 |
Network Solutions - Inventory Write Down |  |  |  | (328 | ) |  |  | — |  |  |  | (328 | ) |  |  | 8,59 7 |  |  |  | — |  |  |  | 8,597 |
Services & Support |  |  |  | 16,678 |  |  |  | — |  |  |  | 16,678 |  |  |  | 55,304 |  |  |  | — |  |  |  | 55,304 |
Total Cost of Revenue |  |  |  | 142,453 |  |  |  | 2,217 |  |  |  | 144,670 |  |  |  | 440,787 |  |  |  | 4,473 |  |  |  | 445,260 |
Gross Profit |  |  |  | 85,251 |  |  |  | (2,217 | ) |  |  | 83,034 |  |  |  | 239,081 |  |  |  | (4,473 | ) |  |  | 234,608 |
Selling, general and administrative expenses |  |  |  | 57,621 |  |  |  | (71 | ) |  |  | 57,550 |  |  |  | 176,214 |  |  |  | (309 | ) |  |  | 175,905 |
Research and development expenses |  |  |  | 51,614 |  |  |  | (37 | ) |  |  | 51,577 |  |  |  | 172,253 |  |  |  | (109 | ) |  |  | 172,144 |
Goodwill impairment | ADJ 4 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 292,583 |  |  |  | 4,770 |  |  |  | 297,353 |
Operating Loss |  |  |  | (23,984 | ) |  |  | (2,109 | ) |  |  | (26,093 | ) |  |  | (401,969 | ) |  |  | (8,825 | ) |  |  | (410,794 | )
Interest and dividend income |  |  |  | 664 |  |  |  | — |  |  |  | 664 |  |  |  | 1,427 |  |  |  | — |  |  |  | 1,427 |
Interest expense |  |  |  | (5,679 | ) |  |  | — |  |  |  | (5,679 | ) |  |  | (17,183 | ) |  |  | — |  |  |  | (17,183 | )
Net investment gain |  |  |  | 1,382 |  |  |  | — |  |  |  | 1,382 |  |  |  | 4,507 |  |  |  | — |  |  |  | 4,507 |
Other (expense), net |  |  |  | (850 | ) |  |  | — |  |  |  | (850 | ) |  |  | (441 | ) |  |  | — |  |  |  | (441 | )
Loss Before Income Taxes |  |  |  | (28,467 | ) |  |  | (2,109 | ) |  |  | (30,576 | ) |  |  | (413,659 | ) |  |  | (8,825 | ) |  |  | (422,484 | )
Income tax (expense) benefit |  |  |  | (390 | ) |  |  | — |  |  |  | (390 | ) |  |  | 16,121 |  |  |  | — |  |  |  | 16,121 |
Net Loss |  |  | $ | (28,857 | ) |  | $ | (2,109 | ) |  | $ | (30,966 | ) |  | $ | (397,538 | ) |  | $ | (8,825 | ) |  | $ | (406,363 | )
Net Income attributable to non-controlling interest (1) |  |  |  | 2,382 |  |  |  | — |  |  |  | 2,382 |  |  |  | 7,417 |  |  |  | — |  |  |  | 7,417 |
Net Loss attributable to ADTRAN Holdings, Inc. |  |  | $ | (31,239 | ) |  | $ | (2,109 | ) |  | $ | (33,348 | ) |  | $ | (404,955 | ) |  | $ | (8,825 | ) |  | $ | (413,780 | )
Weighted average shares outstanding – basic |  |  |  | 78,952 |  |  |  | 78,952 |  |  |  | 78,952 |  |  |  | 78,873 |  |  |  | 78,873 |  |  |  | 78,873 |
Weighted average shares outstanding – diluted |  |  |  | 78,952 |  |  |  | 78,952 |  |  |  | 78,952 |  |  |  | 78,873 |  |  |  | 78,873 |  |  |  | 78,873 |
Loss per common share attributable to ADTRAN Holdings, Inc. – basic |  |  | $ | (0.36 | ) |  | $ | (0.02 | ) |  | $ | (0.38 | ) |  | $ | (5.10 | ) |  | $ | (0.11 | ) |  | $ | (5.21 | )
Loss per common share attributable to ADTRAN Holdings, Inc. – diluted |  |  | $ | (0.36 | ) |  | $ | (0.02 | ) |  | $ | (0.38 | ) |  | $ | (5.10 | ) |  | $ | (0.11 | ) |  | $ | (5.21 | )
Net Loss |  |  | $ | (28,857 | ) |  | $ | (2,109 | ) |  | $ | (30,966 | ) |  | $ | (397,538 | ) |  | $ | (8,825 | ) |  | $ | (406,363 | )
Other Comprehensive Income (Loss), net of tax |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defined benefit plan adjustments |  |  |  | 109 |  |  |  | — |  |  |  | 109 |  |  |  | 42 |  |  |  | — |  |  |  | 42 |
Foreign currency translation gain (loss) | ADJ 1, 3, 4 |  |  | 18,988 |  |  |  | (186 | ) |  |  | 18,802 |  |  |  | (130 | ) |  |  | (281 | ) |  |  | (411 | )
Other Comprehensive Income (Loss), net of tax |  |  |  | 19,097 |  |  |  | (186 | ) |  |  | 18,911 |  |  |  | (88 | ) |  |  | (281 | ) |  |  | (369 | )
Comprehensive Loss, net of tax |  |  |  | (9,760 | ) |  |  | (2,295 | ) |  |  | (12,055 | ) |  |  | (397,626 | ) |  |  | (9,106 | ) |  |  | (406,732 | )
Less: Comprehensive Income attributable to non-controlling interest |  |  |  | 2,382 |  |  |  | — |  |  |  | 2,382 |  |  |  | 7,417 |  |  |  | — |  |  |  | 7,417 |
Comprehensive Loss attributable to ADTRAN Holdings, Inc., net of tax |  |  | $ | (12,142 | ) |  | $ | (2,295 | ) |  | $ | (14,437 | ) |  | $ | (405,043 | ) |  | $ | (9,106 | ) |  | $ | (414,149 | )
|  | 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 June 30, 2024 |  | $ | (606,656 | ) |  | $ | (5,511 | ) |  | $ | (612,167 | ) |  | $ | 28,280 |  |  | $ | 35 |  |  | $ | 28,315 |  |  | $ | 802,737 |  |  | $ | (850 | ) |  | $ | 801,887 |
Net loss |  |  | (28,857 | ) |  |  | (2,109 | ) |  |  | (30,966 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Annual recurring compensation earned |  |  | (2,382 | ) |  |  | — |  |  |  | (2,382 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other comprehensive income, net of tax |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 19,097 |  |  |  | (186 | ) |  |  | 18,911 |  |  |  | — |  |  |  | — |  |  |  | — |
ADTRAN RSUs and restricted stock vested |  |  | (245 | ) |  |  | — |  |  |  | (245 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
ADTRAN stock-based compensation expense |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,623 |  |  |  | — |  |  |  | 3,623 |
Redemption of redeemable non-controlling interest |  |  | 2,976 |  |  |  | — |  |  |  | 2,976 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Adtran Networks stock-based compensation expense |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 17 |  |  |  | 15 |  |  |  | 32 |
Modification of stock options |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (190 | ) |  |  | 190 |  |  |  | — |
Balance as of September 30, 2024 |  | $ | (635,164 | ) |  | $ | (7,620 | ) |  | $ | (642,784 | ) |  | $ | 47,377 |  |  | $ | (151 | ) |  | $ | 47,226 |  |  | $ | 806,187 |  |  | $ | (645 | ) |  | $ | 805,542 |
|  |  | Nine Months Ended September 30, 2024 |
| Adj Reference |  | As Reported |  |  | Adjustment |  |  | As Restated |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |
Net Loss |  |  | $ | (397,538 | ) |  | $ | (8,825 | ) |  | $ | (406,363 | )
Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  |  | 68,421 |  |  |  | (527 | ) |  |  | 67,894 |
Goodwill impairment | ADJ 4 |  |  | 292,583 |  |  |  | 4,770 |  |  |  | 297,353 |
Amortization of debt issuance cost |  |  |  | 1,013 |  |  |  | — |  |  |  | 1,013 |
Gain loss on investments |  |  |  | (4,238 | ) |  |  | — |  |  |  | (4,238 | )
Net loss on disposal of property, plant and equipment |  |  |  | 203 |  |  |  | — |  |  |  | 203 |
Stock-based compensation expense |  |  |  | 11,417 |  |  |  | 65 |  |  |  | 11,482 |
Deferred income taxes |  |  |  | (13,399 | ) |  |  | — |  |  |  | (13,399 | )
Inventory write down |  |  |  | 4,135 |  |  |  | — |  |  |  | 4,135 |
Inventory reserves |  |  |  | 6,667 |  |  |  | — |  |  |  | 6,667 |
Other, net |  |  |  | (267 | ) |  |  | — |  |  |  | (267 | )
Change in operating assets and liabilities: |  |  |  |  |  |  |  |  |  |
Accounts receivable, net |  |  |  | 59,446 |  |  |  | — |  |  |  | 59,446 |
Other receivables |  |  |  | 4,875 |  |  |  | — |  |  |  | 4,875 |
Income taxes receivable |  |  |  | (5,682 | ) |  |  | 4,735 |  |  |  | (947 | )
Inventory | ADJ 3 |  |  | 69,412 |  |  |  | 4,475 |  |  |  | 73,887 |
Prepaid expenses, other current assets and other assets |  |  |  | (20,083 | ) |  |  | (2,081 | ) |  |  | (22,164 | )
Accounts payable |  |  |  | 9,697 |  |  |  | — |  |  |  | 9,697 |
Accrued expenses and other liabilities |  |  |  | 15,039 |  |  |  | (5 | ) |  |  | 15,034 |
Income taxes payable |  |  |  | (3,175 | ) |  |  | — |  |  |  | (3,175 | )
Net cash provided by operating activities |  |  |  | 98,526 |  |  |  | 2,607 |  |  |  | 101,133 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |
Purchases of property, plant and equipment |  |  |  | (28,514 | ) |  |  | (2,654 | ) |  |  | (31,168 | )
Purchases of intangibles - developed technology |  |  |  | (19,669 | ) |  |  | — |  |  |  | (19,669 | )
Proceeds from sales and maturities of available-for-sale investments |  |  |  | 1,195 |  |  |  | — |  |  |  | 1,195 |
Purchases of available-for-sale investments |  |  |  | (195 | ) |  |  | — |  |  |  | (195 | )
Proceeds from beneficial interests in securitized accounts receivable |  |  |  | 282 |  |  |  | — |  |  |  | 282 |
Net cash used in investing activities |  |  |  | (46,901 | ) |  |  | (2,654 | ) |  |  | (49,555 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |
Tax withholdings related to stock-based compensation settlements |  |  |  | (189 | ) |  |  | — |  |  |  | (189 | )
Proceeds from stock option exercises |  |  |  | 219 |  |  |  | — |  |  |  | 219 |
Proceeds from receivables purchase agreement |  |  |  | 68,556 |  |  |  | — |  |  |  | 68,556 |
Repayments on receivables purchase agreement |  |  |  | (83,772 | ) |  |  | — |  |  |  | (83,772 | )
Repayment of revolving credit agreements |  |  |  | (5,000 | ) |  |  | — |  |  |  | (5,000 | )
Payment for redemption of redeemable non-controlling interest |  |  |  | (17,395 | ) |  |  | — |  |  |  | (17,395 | )
Payment of annual recurring compensation to non-controlling interest |  |  |  | (10,084 | ) |  |  | — |  |  |  | (10,084 | )
Payment of debt issuance cost |  |  |  | (1,994 | ) |  |  | — |  |  |  | (1,994 | )
Net cash used in financing activities |  |  |  | (49,659 | ) |  |  | — |  |  |  | (49,659 | )
Net increase in cash and cash equivalents |  |  |  | 1,966 |  |  |  | (47 | ) |  |  | 1,919 |
Effect of exchange rate changes |  |  |  | (677 | ) |  |  | 47 |  |  |  | (630 | )
Cash, cash equivalents and restricted cash, beginning of year |  |  |  | 87,167 |  |  |  | — |  |  |  | 87,167 |
Cash, cash equivalents and restricted cash, end of year |  |  | $ | 88,456 |  |  | $ | — |  |  | $ | 88,456 |
Supplemental disclosure of cash financing activities |  |  |  |  |  |  |  |  |  |
Cash paid for interest |  |  | $ | 18,225 |  |  | $ | — |  |  | $ | 18,225 |
Cash paid for income taxes, net of refunds |  |  | $ | 9,122 |  |  | $ | — |  |  | $ | 9,122 |
Cash used in operating activities related to operating leases |  |  | $ | 7,380 |  |  | $ | — |  |  | $ | 7,380 |
Supplemental disclosure of non-cash investing activities: |  |  |  |  |  |  |  |  |  |
Right-of-use assets obtained in exchange for lease obligations |  |  | $ | 2,122 |  |  | $ | — |  |  | $ | 2,122 |
Purchases of property, plant and equipment included in accounts payable |  |  | $ | 952 |  |  | $ | — |  |  | $ | 952 |
Redemption of redeemable non-controlling interest |  |  | $ | 2,976 |  |  | $ | — |  |  | $ | 2,976 |

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