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v3.25.3

Restatement of Quarterly Financial Information (Tables) | 9 Months Ended
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Sep. 30, 2025
Quarterly Financial Information Disclosure [Abstract] |
Schedule of Revised and Restated Quarterly Financial Information | 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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