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Sep 30, 2025
CommScope Q3 2025 Earnings Report
CommScope reported strong third-quarter 2025 results with significant increases in net sales and adjusted EBITDA.
Key Takeaways
CommScope delivered an outstanding third quarter in 2025, with consolidated net sales reaching $1.63 billion, a 50.6% increase year-over-year. Non-GAAP adjusted EBITDA surged by 97.1% to $402.5 million, marking the sixth consecutive quarter of growth. The company also reported strong cash flow generation, ending the quarter with $705.3 million in cash and cash equivalents.
Consolidated net sales increased by 50.6% year-over-year to $1.63 billion, driven by higher sales across all segments.
Non-GAAP adjusted EBITDA grew by 97.1% to $402.5 million, with the adjusted EBITDA margin improving to 24.7% from 18.9% in the prior year.
GAAP income from continuing operations was $106.9 million, a significant improvement from a loss of $96.7 million in the prior year.
The company generated $151.4 million in cash flow from operations and $135.0 million in free cash flow, increasing its cash balance to $705.3 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
CommScope is raising its 2025 consolidated adjusted EBITDA guideposts and RemainCo adjusted EBITDA guidance, anticipating strong performance into the fourth quarter and significant cash distribution to shareholders post-CCS deal closure.
Positive Outlook
- Raising 2025 consolidated adjusted EBITDA guideposts to $1.30 to $1.35 billion.
- Raising RemainCo adjusted EBITDA guidance to $350 to $375 million.
- Expect CCS deal to close in the first quarter of 2026.
- Plan to repay all existing debt and redeem preferred equity post-CCS deal closure.
- Expect to distribute a substantial portion of excess cash to common shareholders as a special dividend within 60 to 90 days following the CCS closing.
Challenges Ahead
- The exact amount of the special dividend will be determined after the CCS closing, taking into account all relevant factors at the time.
- The CCS deal closing is subject to the satisfaction of conditions and governmental approvals.
- Risks related to disruption of management’s attention from ongoing business operations due to the proposed transaction.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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