Ribbon lifts revenue to $219 million as Hanmi expands net interest margin in third quarter
Key Facts
Ribbon Communications reported revenue of $219 million in the third quarter of 2026, compared with $215 million in the year-earlier period, and a marked improvement from the second quarter. The company said revenue rose 14% sequentially and adjusted EBITDA increased to $27 million from $12 million in the previous quarter. At the same time, it posted a GAAP net loss of $9 million, compared with a loss of $12 million a year earlier. Non-GAAP diluted earnings per share were $0.07, up from $0.04 in the third quarter of 2025. The results combine revenue growth and improved adjusted profitability with a continuing loss on a GAAP basis.
Ribbon attributed the performance of its optical IP networking business to strong bookings in the first half of the year, which management said translated into record sales for the business in the third quarter. Business sales grew 5% year over year, according to the company's chief executive, indicating that prior bookings continued to have an effect during the period. The company said its performance improved significantly in the third quarter, citing a 14% increase in revenue and more than a doubling of adjusted EBITDA compared with the second quarter. The sequential improvement puts revenue of $219 million in the context of a recovery from the previous period, alongside modest year-over-year growth between the two third quarters. The comparison shows adjusted profitability measures moving faster than revenue during the quarter.
Hanmi Financial reported net income of $23.7 million, or $0.80 per diluted share, in the third quarter, compared with $23.5 million and $0.79 per share in the second quarter. Net interest income rose 5.8% to $67.6 million from $63.9 million in the prior period, while net interest margin widened to 3.44% from 3.36%. The figures reflect sequential improvement in core lending income and returns on interest-earning assets, alongside increases in net income and earnings per share. Chief Executive Bonnie Lee said growth in core deposits supported the bank's funding base. She added that loan production reached $544 million, while higher prepayments offset part of the impact of that strong production on loan growth.
Hanmi's loans rose 0.5% to $6.57 billion in the third quarter, and deposits increased 1.4% to $7.06 billion. The company said core deposits grew 1.9%, while non-interest-bearing deposits remained at 30.4% of total deposits. The different growth rates for loans and deposits show that the funding base expanded faster than the loan balance during the period, despite loan production of $544 million. Lee said elevated prepayments limited the effect of production on total loans. Separately, Hanmi's results showed sequential gains in net interest income and margin, while loan repayments continued to influence balance-sheet growth.
Attention now turns to the Federal Open Market Committee meeting scheduled for October 27 and 28. On September 16, the Federal Reserve raised its target range for the federal funds rate by a quarter of a percentage point to 3.75%–4%. That range provides the monetary-policy backdrop for the period in which the banks reported results, though the results included no new outlook for the path of interest rates. The U.S. Census Bureau also scheduled the advance report on durable goods for September for October 27, and the full report for November 3. The two release dates follow companies' third-quarter results and provide the next points for tracking economic indicators in the bureau's calendar.
Ribbon's fourth-quarter guidance calls for revenue at the midpoint of a range of $240 million and adjusted EBITDA at the midpoint of a range of $43.5 million. Those projected levels compare with third-quarter revenue of $219 million and adjusted EBITDA of $27 million. The guidance puts the company's expectations for the next period above its reported quarterly results on both measures, with the figures remaining management estimates for the fourth quarter. Hanmi's figures show continued growth in interest income and a wider margin between the second and third quarters, along with increases in loans and deposits. These operating indicators provide the banking backdrop alongside Ribbon's improvement in revenue and adjusted profitability.