株探米国株
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エドガーで原本を確認する
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark one)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended August 2, 2025
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                    to                    
Commission File Number: 001-36250
Ciena_Logo_Red_1_RGB.jpg
Ciena Corporation
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation or organization)
7035 Ridge Road, Hanover, MD
(Address of principal executive offices)

23-2725311
(I.R.S. Employer Identification No.)
21076
(Zip Code)

(410) 694-5700
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.01 per share CIEN New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
Class
Outstanding as of August 29, 2025
Common Stock, par value $0.01 per share 141,055,908



CIENA CORPORATION
INDEX
FORM 10-Q
  PAGE
NUMBER
 
 
2


PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Quarter Ended Nine Months Ended
  August 2, July 27, August 2, July 27,
  2025 2024 2025 2024
Revenue:    
Products $ 976,801  $ 729,503  $ 2,730,167  $ 2,266,596 
Services 242,584  212,805  687,356  624,247 
Total revenue 1,219,385  942,308  3,417,523  2,890,843 
Cost of goods sold:    
Products 580,028  433,533  1,620,816  1,315,737 
Services 136,278  104,830  368,969  315,538 
Total cost of goods sold 716,306  538,363  1,989,785  1,631,275 
Gross profit 503,079  403,945  1,427,738  1,259,568 
Operating expenses:    
Research and development 211,898  188,888  619,429  571,537 
Selling and marketing 148,724  121,520  424,911  373,749 
General and administrative 60,596  58,248  171,450  162,504 
Significant asset impairments and restructuring costs 1,770  1,361  5,262  21,987 
Amortization of intangible assets 6,556  7,185  19,646  22,384 
Total operating expenses 429,544  377,202  1,240,698  1,152,161 
Income from operations 73,535  26,743  187,040  107,407 
Interest and other income, net 15,090  14,013  34,539  36,460 
Interest expense (22,806) (24,401) (67,421) (72,038)
Loss on extinguishment and modification of debt —  —  (729) — 
Income before income taxes 65,819  16,355  153,429  71,829 
Provision for income taxes 15,511  2,125  49,580  24,901 
Net income $ 50,308  $ 14,230  $ 103,849  $ 46,928 
Basic net income per common share $ 0.35  $ 0.10  $ 0.73  $ 0.32 
Diluted net income per potential common share $ 0.35  $ 0.10  $ 0.72  $ 0.32 
Weighted average basic common shares outstanding 141,846  144,394  142,437  144,876 
Weighted average dilutive potential common shares outstanding 144,499  145,361  145,158  145,795 

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.


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CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(unaudited)
Quarter Ended Nine Months Ended
  August 2, July 27, August 2, July 27,
  2025 2024 2025 2024
Net income $ 50,308  $ 14,230  $ 103,849  $ 46,928 
Unrealized gain (loss) on available-for-sale securities, net of tax (31) 775  (430) 493 
Unrealized gain (loss) on foreign currency forward contracts, net of tax (882) (872) 5,803  3,736 
Unrealized loss on interest rate swaps, net of tax (2,229) (13,680) (9,110) (9,615)
Change in cumulative translation adjustments (2,092) (4,686) 5,619  2,961 
Other comprehensive income (loss) (5,234) (18,463) 1,882  (2,425)
Total comprehensive income (loss) $ 45,074  $ (4,233) $ 105,731  $ 44,503 

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.


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CIENA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
August 2,
2025
November 2,
2024
ASSETS  
Current assets:  
Cash and cash equivalents $ 1,055,976  $ 934,863 
Short-term investments 270,380  316,343 
Accounts receivable, net of allowance for credit losses of $9.5 million and $9.9 million as of August 2, 2025 and November 2, 2024, respectively.
1,025,563  908,597 
Inventories, net 860,403  820,430 
Prepaid expenses and other 473,901  564,183 
Total current assets 3,686,223  3,544,416 
Long-term investments 64,397  80,920 
Equipment, building, furniture and fixtures, net 368,348  337,722 
Operating right-of-use assets 40,347  27,417 
Goodwill 444,828  444,707 
Other intangible assets, net 138,673  165,020 
Deferred tax asset, net 851,903  886,441 
Other long-term assets 154,059  154,694 
        Total assets $ 5,748,778  $ 5,641,337 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Current liabilities:  
Accounts payable $ 464,684  $ 423,401 
Accrued liabilities and other short-term obligations 436,312  393,905 
Deferred revenue 196,209  156,379 
Operating lease liabilities 14,694  14,455 
Current portion of long-term debt 11,580  11,700 
Total current liabilities 1,123,479  999,840 
Long-term deferred revenue 81,057  81,240 
Other long-term obligations 195,976  185,938 
Long-term operating lease liabilities 34,498  25,107 
Long-term debt, net 1,526,467  1,533,074 
Total liabilities 2,961,477  2,825,199 
Commitments and contingencies (Note 18)
Stockholders’ equity:
Preferred stock – par value $0.01; 20,000,000 shares authorized; zero shares issued and outstanding
—  — 
Common stock – par value $0.01; 290,000,000 shares authorized; 141,342,527 and 142,656,116 shares issued and outstanding
1,413  1,427 
Additional paid-in capital 6,020,315  6,154,869 
Accumulated other comprehensive loss (44,829) (46,711)
Accumulated deficit (3,189,598) (3,293,447)
Total stockholders’ equity 2,787,301  2,816,138 
Total liabilities and stockholders’ equity $ 5,748,778  $ 5,641,337 

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
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CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)
Nine Months Ended
  August 2, July 27,
  2025 2024
Cash flows provided by operating activities:  
Net income $ 103,849  $ 46,928 
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements 76,637  68,997 
Share-based compensation expense 135,696  115,433 
Amortization of intangible assets 26,343  30,675 
Deferred taxes (21,709) (19,909)
Provision for inventory excess and obsolescence 34,185  35,400 
Provision for warranty 16,302  14,708 
Other (1,838) 11,968 
Changes in assets and liabilities:
Accounts receivable (116,887) 92,421 
Inventories (73,493) 78,220 
Prepaid expenses and other 137,440  (221,823)
Operating lease right-of-use assets 8,759  8,963 
Accounts payable, accruals and other obligations 83,354  (112,352)
Deferred revenue 38,246  28,833 
Short- and long-term operating lease liabilities (11,868) (13,290)
Net cash provided by operating activities 435,016  165,172 
Cash flows used in investing activities:  
Payments for equipment, furniture and fixtures (95,373) (53,098)
Purchases of investments (191,335) (197,303)
Proceeds from sales and maturities of investments 261,611  114,899 
Settlement of foreign currency forward contracts, net (2,635) (362)
Purchase of equity investment —  (21,682)
Net cash used in investing activities (27,732) (157,546)
Cash flows used in financing activities:  
Proceeds from modification of debt, net 19,175  — 
Cash paid for extinguishment of debt (19,175) — 
Payment of long-term debt (8,685) (5,850)
Payment of debt issuance costs (12) (2,554)
Payment of finance lease obligations (3,244) (3,004)
Shares repurchased for tax withholdings on vesting of stock unit awards (60,043) (33,450)
Repurchases of common stock - repurchase program, net (250,035) (125,816)
Proceeds from issuance of common stock 35,874  34,292 
Net cash used in financing activities (286,145) (136,382)
Effect of exchange rate changes on cash, cash equivalents and restricted cash 60  1,499 
Net increase (decrease) in cash, cash equivalents and restricted cash 121,199  (127,257)
Cash, cash equivalents and restricted cash at beginning of period 935,026  1,010,786 
Cash, cash equivalents and restricted cash at end of period $ 1,056,225  $ 883,529 
Supplemental disclosure of cash flow information  
Cash paid during the period for interest, net $ 68,243  $ 64,999 
Cash paid during the period for income taxes, net $ 84,898  $ 41,736 
Operating lease payments $ 13,246  $ 14,672 
Non-cash investing and financing activities  
Purchase of equipment in accounts payable $ 14,819  $ 35,316 
Repurchase of common stock in accrued liabilities from repurchase program, net $ 2,231  $ 1,762 
Operating right-of-use assets subject to lease liability $ 21,850  $ 5,326 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
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CIENA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(in thousands, except share data)
(unaudited)
Common Stock
Shares
Par Value Additional
Paid-in-Capital
Accumulated Other
Comprehensive Loss
Accumulated
Deficit
Total
Stockholders’
Equity
Balance at November 2, 2024 142,656,116  $ 1,427  $ 6,154,869  $ (46,711) $ (3,293,447) $ 2,816,138 
Net income —  —  —  —  103,849  103,849 
Other comprehensive income —  —  —  1,882  —  1,882 
Repurchase of common stock - repurchase program, net (3,268,252) (33) (246,062) —  —  (246,095)
Issuance of shares from employee equity plans 2,754,659  27  35,847  —  —  35,874 
Share-based compensation expense —  —  135,696  —  —  135,696 
Shares repurchased for tax withholdings on vesting of stock unit awards (799,996) (8) (60,035) —  —  (60,043)
Balance at August 2, 2025 141,342,527  $ 1,413  $ 6,020,315  $ (44,829) $ (3,189,598) $ 2,787,301 
Common Stock
Shares
Par Value Additional
Paid-in-Capital
Accumulated Other
Comprehensive Loss
Accumulated
Deficit
Total
Stockholders’
Equity
Balance at October 28, 2023 144,829,938  $ 1,448  $ 6,262,083  $ (37,767) $ (3,377,403) $ 2,848,361 
Net income —  —  —  —  46,928  46,928 
Other comprehensive loss —  —  —  (2,425) —  (2,425)
Repurchase of common stock - repurchase program, net (2,415,438) (24) (118,243) —  —  (118,267)
Issuance of shares from employee equity plans 2,730,328  27  34,265  —  —  34,292 
Share-based compensation expense —  —  115,433  —  —  115,433 
Shares repurchased for tax withholdings on vesting of stock unit awards (717,955) (7) (33,443) —  —  (33,450)
Balance at July 27, 2024 144,426,873  $ 1,444  $ 6,260,095  $ (40,192) $ (3,330,475) $ 2,890,872 

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
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CIENA CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

(1) INTERIM FINANCIAL STATEMENTS
The interim financial statements for Ciena Corporation and its wholly owned subsidiaries (“Ciena”) included herein have been prepared by Ciena, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”).
The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States (“GAAP”) requires Ciena to make judgments, assumptions, and estimates that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Among other things, these estimates form the basis for judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates under different assumptions or conditions. To the extent that there are material differences between Ciena’s estimates and actual results, Ciena’s consolidated financial statements will be affected.
In the opinion of management, the financial statements included in this report reflect all normal recurring adjustments that Ciena considers necessary for the fair statement of the results of operations of Ciena for the interim periods covered and of the financial position of Ciena at the date of the interim balance sheets. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to SEC rules and regulations. The Condensed Consolidated Balance Sheet as of November 2, 2024 was derived from audited financial statements but does not include all disclosures required by GAAP. However, Ciena believes that the disclosures are adequate to understand the information presented herein. The operating results for interim periods are not necessarily indicative of the operating results for the entire year. These financial statements should be read in conjunction with Ciena’s audited consolidated financial statements and the notes thereto included in Ciena’s Annual Report on Form 10-K for the fiscal year ended November 2, 2024 (the “2024 Annual Report”).
Ciena has a 52 or 53-week fiscal year, with quarters ending on the Saturday nearest to the last day of January, April, July, and October, respectively, of each year. Fiscal 2025 is a 52-week fiscal year. Fiscal 2024 was a 53-week fiscal year with the additional week occurring in the fourth quarter.

(2) SIGNIFICANT ACCOUNTING POLICIES
There have been no material changes to Ciena’s significant accounting policies, compared to the accounting policies described in Note 1, Ciena Corporation and Significant Accounting Policies and Estimates, in Notes to Consolidated Financial Statements in Item 8 of Part II of the 2024 Annual Report.

Accounting Standards - Not Yet Effective

In November 2023, the FASB issued ASU No. 2023-07 (“ASU 2023-07”), Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for Ciena’s fiscal 2025 Annual Report on Form 10-K on a retrospective basis. Ciena is currently evaluating the impact of this ASU on its segment disclosures.

In December 2023, the FASB issued ASU No. 2023-09 (“ASU 2023-09”), Income Taxes (Topic 740): Improvement to Income Tax Disclosures, to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. ASU 2023-09 allows for adoption using either a prospective or retrospective method. Ciena is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU No. 2024-03 (“ASU 2024-03”), Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), to improve financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027; however, early adoption is permitted. ASU 2024-03 allows for adoption using either a prospective or retrospective method. Ciena is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

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In July 2025, the FASB issued ASU No. 2025-05 (“ASU 2025-05”), Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, to introduce a practical expedient for all entities, which simplifies the calculation required for estimating credit losses and assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods; however, early adoption is permitted. ASU 2025-25 allows for adoption using a prospective method. Ciena is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

(3) REVENUE
Segment and Product Line Disaggregation of Revenue

Ciena’s disaggregated segment and product line revenue as presented below depicts the nature, amount, and timing of revenue and cash flows for similar groupings of Ciena’s various offerings. The sales cycle, contractual obligations, customer requirements, and go-to-market strategies may differ for each of its product categories, resulting in different economic risk profiles for each category. Ciena has the following operating segments for reporting purposes: (i) Networking Platforms; (ii) Platform Software and Services; (iii) Blue Planet Automation Software and Services; and (iv) Global Services. See Note 17 below.

The tables below set forth Ciena’s disaggregated revenue for the periods indicated (in thousands):
Quarter Ended August 2, 2025
Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total
Product lines:
Optical Networking $ 815,497  $ —  $ —  $ —  $ 815,497 
Routing and Switching 125,857  —  —  —  125,857 
Platform Software and Services
—  89,961  —  —  89,961 
Blue Planet Automation Software and Services
—  —  27,805  —  27,805 
Maintenance Support and Training
—  —  —  80,743  80,743 
Installation and Deployment
—  —  —  65,878  65,878 
Consulting and Network Design
—  —  —  13,644  13,644 
Total revenue by product line
$ 941,354  $ 89,961  $ 27,805  $ 160,265  $ 1,219,385 
Timing of revenue recognition:
Products and services at a point in time
$ 941,354  $ 24,281  $ 11,909  $ 9,806  $ 987,350 
Services transferred over time —  65,680  15,896  150,459  232,035 
Total revenue by timing of revenue recognition
$ 941,354  $ 89,961  $ 27,805  $ 160,265  $ 1,219,385 



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Quarter Ended July 27, 2024
Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total
Product lines:
Optical Networking $ 606,845  $ —  $ —  $ —  $ 606,845 
Routing and Switching 92,692  —  —  —  92,692 
Platform Software and Services
—  83,212  —  —  83,212 
Blue Planet Automation Software and Services
—  —  25,791  —  25,791 
Maintenance Support and Training
—  —  —  74,344  74,344 
Installation and Deployment
—  —  —  46,484  46,484 
Consulting and Network Design
—  —  —  12,940  12,940 
Total revenue by product line
$ 699,537  $ 83,212  $ 25,791  $ 133,768  $ 942,308 
Timing of revenue recognition:
Products and services at a point in time
$ 699,537  $ 18,766  $ 11,614  $ 9,833  $ 739,750 
Services transferred over time
—  64,446  14,177  123,935  202,558 
Total revenue by timing of revenue recognition
$ 699,537  $ 83,212  $ 25,791  $ 133,768  $ 942,308 

Nine Months Ended August 2, 2025
Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total
Product lines:
Optical Networking $ 2,317,062  $ —  $ —  $ —  $ 2,317,062 
Routing and Switching 311,749  —  —  —  311,749 
Platform Software and Services
—  270,469  —  —  270,469 
Blue Planet Automation Software and Services
—  —  81,787  —  81,787 
Maintenance Support and Training
—  —  —  234,758  234,758 
Installation and Deployment
—  —  —  171,735  171,735 
Consulting and Network Design
—  —  —  29,963  29,963 
Total revenue by product line
$ 2,628,811  $ 270,469  $ 81,787  $ 436,456  $ 3,417,523 
Timing of revenue recognition:
Products and services at a point in time
$ 2,628,811  $ 75,260  $ 32,846  $ 23,783  $ 2,760,700 
Services transferred over time —  195,209  48,941  412,673  656,823 
Total revenue by timing of revenue recognition
$ 2,628,811  $ 270,469  $ 81,787  $ 436,456  $ 3,417,523 

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Nine Months Ended July 27, 2024
Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total
Product lines:
Optical Networking $ 1,862,917  $ —  $ —  $ —  $ 1,862,917 
Routing and Switching 320,113  —  —  —  320,113 
Platform Software and Services
—  258,402  —  —  258,402 
Blue Planet Automation Software and Services
—  —  54,167  —  54,167 
Maintenance Support and Training
—  —  —  225,869  225,869 
Installation and Deployment
—  —  —  132,993  132,993 
Consulting and Network Design
—  —  —  36,382  36,382 
Total revenue by product line
$ 2,183,030  $ 258,402  $ 54,167  $ 395,244  $ 2,890,843 
Timing of revenue recognition:
Products and services at a point in time
$ 2,183,030  $ 69,149  $ 15,530  $ 29,904  $ 2,297,613 
Services transferred over time
—  189,253  38,637  365,340  593,230 
Total revenue by timing of revenue recognition
$ 2,183,030  $ 258,402  $ 54,167  $ 395,244  $ 2,890,843 


•Networking Platforms revenue reflects sales of Ciena’s Optical Networking and Routing and Switching product lines.
•Optical Networking - includes the 6500 Packet-Optical Platform, the Waveserver® system, the 6500 Reconfigurable Line System (RLS), coherent pluggable transceivers, and other optical networking products.
•Routing and Switching - includes the 3000 and 5000 series of service delivery and aggregation platforms, the 8100 Coherent IP networking platforms, virtualization software, and passive optical network and other routing and switching portfolio products.

Revenue from this segment is included in product revenue on the Condensed Consolidated Statements of Operations.

•Platform Software and Services revenue reflects sales of Ciena’s Platform Software and Platform Services.
•Platform Software - includes Ciena’s Navigator Network Control SuiteTM domain controller solution and its applications, and legacy software solutions.
•Platform Services - includes sales of subscription, support, and consulting services related to Ciena’s software platforms, operating system software and enhanced software features embedded in each of the Networking Platforms product lines above.

Revenue from the software portion of this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Revenue from services portions of this segment is included in services revenue on the Condensed Consolidated Statements of Operations.

•Blue Planet Automation Software and Services revenue reflects sales of Blue Planet Automation Software and Blue Planet Services.
•Blue Planet Automation Software - includes inventory management, orchestration, route optimization and analysis, and unified assurance and analytics software.
•Blue Planet Services - includes sales of subscription, installation, support, consulting and design services related to the Blue Planet Automation Platform.

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Revenue from the software portion of this segment is included in product revenue on the Condensed Consolidated Statements of Operations. Revenue from the services portions of this segment is included in services revenue on the Condensed Consolidated Statements of Operations.

•Global Services revenue reflects sales of a broad range of Ciena’s services for maintenance support and training, installation and deployment, and consulting and network design activities.
Revenue from this segment is included in services revenue on the Condensed Consolidated Statements of Operations.

Revenue Recognition
•Revenue from the Networking Platforms segment includes, in addition to the products described above, sales of operating system software and enhanced software features embedded therein, which are each considered distinct performance obligations for which the revenue is generally recognized upfront at a point in time upon transfer of control.
•Revenue from software platforms typically reflects either perpetual or term-based software licenses, and these sales are considered distinct performance obligations where revenue is generally recognized upfront at a point in time upon transfer of control.
•Revenue from software subscription and support is recognized ratably over the period during which the services are performed.
•Revenue from professional services for solution customization, software and solution support services, consulting and design, and build-operate-transfer services relating to Ciena’s software offerings is recognized over time with Ciena applying the input method to determine the amount of revenue to be recognized in a given period. Global Services are considered a distinct performance obligation where revenue is generally recognized over time.
•Revenue from maintenance support is recognized ratably over the period during which the services are performed.
•Revenue from installation and deployment services and consulting and network design services is generally recognized over time with Ciena applying the input method to determine the amount of revenue to be recognized in a given period.
•Revenue from training services is generally recognized at a point in time upon completion of the service.

For additional information on Ciena’s revenue recognition policy, see Notes to Consolidated Financial Statements in Item 8 of Part II of the 2024 Annual Report.

Geographic Disaggregation of Revenue

Ciena reports its sales geographically using the following markets: (i) the United States, Canada, the Caribbean and Latin America (“Americas”); (ii) Europe, Middle East and Africa (“EMEA”); and (iii) Asia Pacific, Japan and India (“APAC”). Within each geographic area, Ciena maintains specific teams or personnel that focus on a particular region, country, customer, or market vertical. These teams include sales management, account salespersons, and sales engineers, as well as services professionals and commercial management personnel. The following table reflects Ciena’s geographic distribution of revenue based principally on the relevant location for Ciena’s delivery of products and performance of services.

For the periods indicated, Ciena’s geographic distribution of revenue was as follows (in thousands):
Quarter Ended Nine Months Ended
August 2, July 27, August 2, July 27,
2025 2024 2025 2024
Geographic distribution:
Americas
$ 923,627  $ 718,605  $ 2,553,081  $ 2,099,680 
EMEA
186,018  135,009  535,519  498,212 
APAC
109,740  88,694  328,923  292,951 
Total revenue by geographic distribution
$ 1,219,385  $ 942,308  $ 3,417,523  $ 2,890,843 

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Ciena’s revenue includes $882.8 million and $676.0 million of U.S. revenue for the third quarter of fiscal 2025 and 2024, respectively. For the nine months ended August 2, 2025 and July 27, 2024, U.S. revenue was $2.4 billion and $2.0 billion, respectively. No other country accounted for 10% or more of total revenue for the periods indicated in the above table.

Ciena’s revenue from a cloud provider includes $218.0 million and $538.2 million for the third quarter and nine months ended August 2, 2025, respectively, and $137.2 million and $331.6 million for the third quarter and nine months ended July 27, 2024, respectively. Revenue also includes $133.0 million and $361.4 million from AT&T for the third quarter and nine months ended August 2, 2025, respectively, and $113.1 million and $324.8 million for the third quarter and nine months ended July 27, 2024, respectively. These customers purchased products from the Networking Platforms, Platform Software and Services, and Global Services operating segments for the periods presented. No other customer accounted for 10% or more of total revenue for the periods presented.

Contract Balances

The following table provides information about receivables, contract assets and contract liabilities (deferred revenue) from contracts with customers as of the dates indicated (in thousands):
Balance at August 2, 2025 Balance at November 2, 2024
Accounts receivable, net $ 1,025,563  $ 908,597 
Contract assets for unbilled accounts receivable, net $ 164,326  $ 127,919 
Deferred revenue $ 277,266  $ 237,619 

Ciena’s contract assets represent unbilled accounts receivable, net where transfer of a product or service has occurred but invoicing is conditional upon completion of future performance obligations. These amounts are primarily related to installation and deployment and professional services arrangements where transfer of control has occurred, but Ciena has not yet invoiced the customer. Contract assets are included in prepaid expenses and other in the Condensed Consolidated Balance Sheets.

Contract liabilities consist of deferred revenue and represent advanced payments against non-cancelable customer orders received prior to revenue recognition. Ciena recognized approximately $134.6 million and $130.5 million of revenue during the first nine months of fiscal 2025 and 2024, respectively, that was included in the deferred revenue balance as of November 2, 2024 and October 28, 2023, respectively. Revenue recognized due to changes in transaction price from performance obligations satisfied or partially satisfied in previous periods was immaterial during the nine months ended August 2, 2025 and July 27, 2024.

As of the dates indicated, deferred revenue is comprised of the following (in thousands):
August 2,
2025
November 2,
2024
Products $ 33,476  $ 19,017 
Services 243,790  218,602 
 Total deferred revenue 277,266  237,619 
Less current portion (196,209) (156,379)
Long-term deferred revenue $ 81,057  $ 81,240 

Capitalized Contract Acquisition Costs

Capitalized contract acquisition costs consist of deferred sales commissions and were $33.4 million and $28.4 million as of August 2, 2025 and November 2, 2024, respectively. Capitalized contract acquisition costs were included in (i) prepaid expenses and other, and (ii) other long-term assets. The amortization expense associated with these costs was $26.0 million and $22.9 million during the first nine months of fiscal 2025 and 2024, respectively, and was included in selling and marketing expense on the Condensed Consolidated Statements of Operations.

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Remaining Performance Obligations

Remaining Performance Obligations (“RPO”) are comprised of non-cancelable customer purchase orders for products and services that are awaiting transfer of control for revenue recognition under the applicable contract terms. As of August 2, 2025, the aggregate amount of RPO was $2.0 billion. As of August 2, 2025, Ciena expects approximately 82% of the RPO balance to be recognized as revenue within the next 12 months.

(4)SIGNIFICANT ASSET IMPAIRMENT AND RESTRUCTURING COSTS

Restructuring Costs

Ciena has undertaken a number of restructuring activities intended to reduce expense and to align its workforce and costs with market opportunities, product development, and business strategies. The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in accrued liabilities and other short-term obligations on the Condensed Consolidated Balance Sheets for the nine months ended August 2, 2025 (in thousands):
Workforce
reduction
Other restructuring activities Total
Balance at November 2, 2024 $ 1,927  $ —  $ 1,927 
Charges 1,996 

3,266 
(1)
5,262 
Cash payments (3,389) (3,266) (6,655)
Balance at August 2, 2025 $ 534  $ —  $ 534 
Current restructuring liabilities $ 534  $ —  $ 534 

(1) Primarily represents costs related to restructured real estate facilities.

The following table sets forth the restructuring activity and balance of the restructuring liability accounts, which are included in accrued liabilities and other short-term obligations on the Condensed Consolidated Balance Sheets for the nine months ended July 27, 2024 (in thousands):
Workforce
reduction
Other restructuring activities Total
Balance at October 28, 2023 $ 1,913  $ —  $ 1,913 
Charges 13,708 
(1)
8,279 
(2)
21,987 
Cash payments (14,379) (8,279) (22,658)
Balance at July 27, 2024 $ 1,242  $ —  $ 1,242 
Current restructuring liabilities $ 1,242  $ —  $ 1,242 

(1) Reflects a global workforce reduction of approximately 390 employees during the nine months ended July 27, 2024 as part of a business optimization strategy to improve gross margin, constrain operating expense and redesign certain business processes.
(2) Primarily represents costs related to restructured real estate facilities and the redesign of certain business processes associated with Ciena’s supply chain and distribution structure reorganization.

(5)INTEREST AND OTHER INCOME, NET
The components of interest and other income, net, are as follows for the periods indicated (in thousands):
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Quarter Ended Nine Months Ended
August 2, July 27, August 2, July 27,
2025 2024 2025 2024
Interest income $ 16,173  $ 15,876  $ 43,318  $ 46,309 
Gains (losses) on non-hedge designated foreign currency forward contracts(1)
744  519  (1,593) 2,517 
Foreign currency exchange losses(2)
(1,796) (1,611) (4,799) (11,215)
Other (31) (771) (2,387) (1,151)
Interest and other income, net $ 15,090  $ 14,013  $ 34,539  $ 36,460 

(1) Ciena has forward contracts in place to hedge its foreign exchange exposure in order to reduce the variability in various currencies of certain balance sheet items. These forwards are not designated as hedges for accounting purposes, and any net gain or loss associated with these derivatives is reported in interest and other income, net, on the Condensed Consolidated Statements of Operations.
(2) Ciena Corporation, as the U.S. parent entity, uses the U.S. Dollar as its functional currency; however, some of its foreign branch offices and subsidiaries use local currencies as their functional currencies. The related remeasurement adjustments were recorded in interest and other income, net, on the Condensed Consolidated Statements of Operations.

(6) INCOME TAXES

The effective tax rate for the third quarter of fiscal 2025 was higher than the effective tax rate for the third quarter of fiscal 2024, primarily due to the settlement of uncertain tax positions in the prior year.

The effective tax rate for the first nine months of fiscal 2025 was lower than the effective tax rate for the first nine months of fiscal 2024, primarily due to an income tax benefit for share-based compensation expense.

For the nine months ended August 2, 2025, the impact of the 15% global minimum tax, referred to as Pillar Two, was not material to Ciena’s consolidated financial statements.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law in the United States. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions taking effect in fiscal 2025 and others to be implemented through fiscal 2027. The legislation will not have a material impact on Ciena’s consolidated financial statements in fiscal 2025.

(7)CASH EQUIVALENT, SHORT-TERM AND LONG-TERM INVESTMENTS

As of the dates indicated, investments classified as available-for-sale are comprised of the following (in thousands):
  August 2, 2025
Amortized Cost Gross Unrealized
Gains
Gross Unrealized
Losses
Estimated Fair
Value
U.S. government obligations $ 208,174  $ 297  $ (3) $ 208,468 
Corporate debt securities 120,919  207  —  121,126 
Time deposits 92,547  —  92,549 
$ 421,640  $ 506  $ (3) $ 422,143 
Included in cash equivalents $ 87,366  $ —  $ —  $ 87,366 
Included in short-term investments 270,085  298  (3) 270,380 
Included in long-term investments 64,189  208  —  64,397 
$ 421,640  $ 506  $ (3) $ 422,143 

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  November 2, 2024
Amortized Cost Gross Unrealized
Gains
Gross Unrealized
Losses
Estimated Fair
Value
U.S. government obligations $ 285,492  $ 751  $ (62) $ 286,181 
Corporate debt securities 111,103  137  (97) 111,143 
Time deposits 92,803  (3) 92,804 
$ 489,398  $ 892  $ (162) $ 490,128 
Included in cash equivalents $ 92,865  $ —  $ —  $ 92,865 
Included in short-term investments 315,654  734  (45) 316,343 
Included in long-term investments 80,879  158  (117) 80,920 
$ 489,398  $ 892  $ (162) $ 490,128 


The following table summarizes the final legal maturities of debt investments as of August 2, 2025 (in thousands):
Amortized
Cost
Estimated
Fair Value
Less than one year $ 357,451  $ 357,746 
Due in 1-2 years 64,189  64,397 
  $ 421,640  $ 422,143 

(8)FAIR VALUE MEASUREMENTS

    As of the dates indicated, the following tables summarize the assets and liabilities that are recorded at fair value on a recurring basis (in thousands):
  August 2, 2025
  Level 1 Level 2 Level 3 Total
Assets:        
Money market funds $ 658,774  $ —  $ —  $ 658,774 
Bond mutual fund 116,537  —  —  116,537 
Time deposits 92,549  —  —  92,549 
Deferred compensation plan assets 19,359  —  —  19,359 
U.S. government obligations —  208,468  —  208,468 
Corporate debt securities —  121,126  —  121,126 
Foreign currency forward contracts —  5,685  —  5,685 
Interest rate swaps —  671  —  671 
Total assets measured at fair value $ 887,219  $ 335,950  $ —  $ 1,223,169 
Liabilities:
Foreign currency forward contracts $ —  $ 3,228  $ —  $ 3,228 
Interest rate swaps —  1,220  —  1,220 
Total liabilities measured at fair value $ —  $ 4,448  $ —  $ 4,448 

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November 2, 2024
Level 1 Level 2 Level 3 Total
Assets:
Money market funds $ 636,097  $ —  $ —  $ 636,097 
Bond mutual fund 112,703  —  —  112,703 
Time deposits 92,804  —  —  92,804 
Deferred compensation plan assets 16,519  —  —  16,519 
U.S. government obligations —  286,181  —  286,181 
Corporate debt securities —  111,143  —  111,143 
Foreign currency forward contracts —  2,149  —  2,149 
Interest rate swaps —  11,777  —  11,777 
Total assets measured at fair value $ 858,123  $ 411,250  $ —  $ 1,269,373 
Liabilities:
Foreign currency forward contracts $ —  $ 9,155  $ —  $ 9,155 
Total liabilities measured at fair value $ —  $ 9,155  $ —  $ 9,155 

As of the dates indicated, the assets and liabilities above are presented on Ciena’s Condensed Consolidated Balance Sheets as follows (in thousands):
  August 2, 2025
  Level 1 Level 2 Level 3 Total
Assets:        
Cash equivalents $ 862,021  $ 656  $ —  $ 862,677 
Short-term investments 5,839  264,541  —  270,380 
Prepaid expenses and other —  5,685  —  5,685 
Long-term investments —  64,397  —  64,397 
Other long-term assets 19,359  671  —  20,030 
Total assets measured at fair value $ 887,219  $ 335,950  $ —  $ 1,223,169 
Liabilities:
Accrued liabilities and other short-term obligations $ —  $ 3,228  $ —  $ 3,228 
Other long-term obligations —  1,220  —  1,220 
Total liabilities measured at fair value $ —  $ 4,448  $ —  $ 4,448 

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  November 2, 2024
  Level 1 Level 2 Level 3 Total
Assets:        
Cash equivalents $ 832,239  $ 9,426  $ —  $ 841,665 
Short-term investments 9,365  306,978  —  316,343 
Prepaid expenses and other —  2,149  —  2,149 
Long-term investments —  80,920  —  80,920 
Other long-term assets 16,519  11,777  —  28,296 
Total assets measured at fair value $ 858,123  $ 411,250  $ —  $ 1,269,373 
Liabilities:
Accrued liabilities and other short-term obligations $ —  $ 9,155  $ —  $ 9,155 
Total liabilities measured at fair value $ —  $ 9,155  $ —  $ 9,155 

Ciena did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented.

(9) INVENTORIES
As of the dates indicated, inventories are comprised of the following (in thousands):
August 2,
2025
November 2,
2024
Raw materials $ 642,706  $ 542,785 
Work-in-process 35,611  32,219 
Finished goods 261,732  324,697 
Deferred cost of goods sold 41,831  27,902 
Gross inventories 981,880  927,603 
Reserve for inventory excess and obsolescence (121,477) (107,173)
Inventories, net $ 860,403  $ 820,430 

During the first nine months of fiscal 2025, Ciena recorded a provision for inventory excess and obsolescence of $34.2 million, primarily related to a decrease in the forecasted demand for certain Networking Platforms products. Deductions from the reserve for excess and obsolete inventory relate primarily to sales and disposal activities.

(10) DERIVATIVE INSTRUMENTS

Foreign Currency Derivatives 

Ciena conducts business globally in many currencies, and thus is exposed to foreign currency exchange rate changes. To limit this exposure, Ciena enters into foreign currency contracts. Ciena does not enter into such contracts for speculative purposes.

As of August 2, 2025 and November 2, 2024, Ciena had forward contracts to hedge its foreign exchange exposure in order to reduce variability in certain currencies for expenses principally related to research and development activities. The notional amount of these contracts was approximately $325.3 million and $257.0 million as of August 2, 2025 and November 2, 2024, respectively. These foreign exchange contracts have maturities of 24 months or less and have been designated as cash flow hedges.

As of August 2, 2025 and November 2, 2024, Ciena had forward contracts designated as net investment hedges to minimize the effect of foreign exchange rate movements on its net investments in foreign operations. The notional amount of these contracts was approximately $63.0 million and $65.4 million as of August 2, 2025 and November 2, 2024, respectively. These foreign exchange contracts have maturities of 36 months or less and have been designated as net investment hedges.

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As of August 2, 2025 and November 2, 2024, Ciena had forward contracts in place to hedge its foreign exchange exposure in order to reduce the variability in various currencies of certain balance sheet items. The notional amount of these contracts was approximately $138.5 million and $201.2 million as of August 2, 2025 and November 2, 2024, respectively. These foreign exchange contracts have maturities of 12 months or less and have not been designated as hedges for accounting purposes.

Interest Rate Derivatives

Ciena is exposed to floating rates of interest on its term loan borrowings (see Note 12 below) and has hedged such risk by entering into floating-to-fixed interest rate swap arrangements (“interest rate swaps”).

In April 2022, Ciena entered into forward starting interest rate swaps to fix the Secured Overnight Financing Rate (“SOFR”) for the first $350.0 million of its floating rate debt at 2.968% from September 2023 through September 2025 (“2025 interest rate swaps”). The total notional amount of the 2025 interest rate swaps was $350.0 million as of August 2, 2025 and November 2, 2024.

In January 2023, Ciena entered into interest rate swaps to fix SOFR for an additional $350.0 million of its floating rate debt at 3.47% through January 2028. The total notional amount of these interest rate swaps was $350.0 million as of August 2, 2025 and November 2, 2024.

In December 2023, Ciena entered into forward starting interest rate swaps to fix SOFR for an additional $350.0 million of its floating rate debt at 3.287% from September 2025 through December 2028 (“2028 forward starting interest rate swaps”). The total notional amount of the 2028 forward starting interest rate swaps effective September 2025 was $350.0 million as of August 2, 2025 and November 2, 2024.

Ciena expects the variable rate payments to be received under the terms of these interest rate swaps to offset exactly the forecasted variable rate payments on the equivalent notional amount of the Refinanced 2030 Term Loan (as defined in Note 12 below). These derivative contracts have been designated as cash flow hedges.

Other information regarding Ciena’s derivatives is immaterial for separate financial statement presentation. See Note 5 and Note 8 above.

(11) LEASES

Operating leases included on the Condensed Consolidated Balance Sheets for the fiscal periods indicated were as follows (in thousands):
Classification Balance at August 2, 2025 Balance at November 2, 2024
Operating leases:
Operating ROU Assets Operating right-of-use assets $ 40,347  $ 27,417 
Operating lease liabilities Operating lease liabilities and Long-term operating lease liabilities $ 49,192  $ 39,562 

Ciena added two new 10-year operating leases to its portfolio in the second quarter of fiscal 2025. The addition of these operating leases increased both operating right-of-use (“ROU”) assets and lease liabilities for fiscal 2025.

(12) SHORT-TERM AND LONG-TERM DEBT

Outstanding Term Loan Payable

Refinanced 2030 Term Loan

Pursuant to a Credit Agreement, dated July 15, 2014, as amended (the “Credit Agreement”), by and among Ciena Corporation, the lenders party thereto and Bank of America, N.A., as administrative agent (the “Administrative Agent”), Ciena maintained a senior secured term loan with an outstanding aggregate principal amount, as of January 17, 2025, of approximately $1.16 billion and maturing on October 24, 2030 (the “2030 Term Loan”).

On January 17, 2025, Ciena Corporation, as borrower, and Ciena Communications, Inc., Ciena Government Solutions, Inc., Ciena Communications International, LLC and Blue Planet Software, Inc., as guarantors, entered into a Refinancing Amendment to Credit Agreement with the lenders party thereto and the Administrative Agent (the “Amendment”), pursuant to which Ciena incurred a new single tranche of senior secured term loans in an aggregate principal amount of approximately $1.16 billion (the “Refinanced 2030 Term Loan”).
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The proceeds of the Refinanced 2030 Term Loan, together with cash on hand, were used to refinance in full the 2030 Term Loan, including accrued interest, and pay transaction fees and expenses. The Amendment amends the Credit Agreement and provides that the Refinanced 2030 Term Loan will, among other things:

•mature on October 24, 2030;
         
•amortize in equal quarterly installments in aggregate amounts equal to approximately 0.25% of the principal amount of the Refinanced 2030 Term Loan as of the Closing Date, with the balance payable at maturity;
         
•be subject to mandatory prepayment upon the occurrence of certain specified events substantially similar to the 2030 Term Loan, including upon the occurrence of certain specified events such as asset sales, debt issuances, and receipt of annual Excess Cash Flow (as defined in the Credit Agreement);
         
•bear interest, at Ciena’s election, at a per annum rate equal to (a) SOFR (subject to a floor of 0.00%) plus an applicable margin of 1.75%, or (b) a base rate (subject to a floor of 1.00%) plus an applicable margin of 0.75%;
         
•be repayable at any time at Ciena’s election; and
         
•except as described above or otherwise set forth in the Amendment, have substantially identical terms as the 2030 Term Loan.

Except as amended by the Amendment, the remaining terms of the Credit Agreement remain in full force and effect.

The net carrying value of the Ciena’s term loans were comprised of the following as of the date indicated (in thousands):
August 2, 2025 November 2, 2024
Principal Balance Unamortized Discount Deferred Debt Issuance Costs Net Carrying Value Net Carrying Value
Refinanced 2030 Term Loan $ 1,149,615  $ (3,738) $ (4,776) $ 1,141,101  $ — 
2030 Term Loan $ —  $ —  $ —  $ —  $ 1,148,347 

Deferred debt issuance costs are amortized using the straight-line method, which approximates the effect of the effective interest rate, through the maturity of the term loans. The amortization of deferred debt issuance costs for the term loans is included in interest expense and was approximately $0.7 million during both the first nine months of fiscal 2025 and fiscal 2024.

As of August 2, 2025, the estimated fair value of the Refinanced 2030 Term Loan was $1.15 billion. Ciena’s term loan is categorized as Level 2 in the fair value hierarchy. Ciena estimated the fair value of its term loan using a market approach based on observable inputs, such as current market transactions involving comparable securities.

Outstanding Senior Notes Payable

2030 Notes

On January 18, 2022, Ciena entered into an indenture among Ciena, as issuer, certain domestic subsidiaries of Ciena, as guarantors, and U.S. Bank National Association, as trustee, pursuant to which Ciena issued $400.0 million in aggregate principal amount of 4.00% fixed-rate senior notes due 2030 (the “2030 Notes”).

The net carrying value of the 2030 Notes was comprised of the following as of the dates indicated (in thousands):
August 2, 2025 November 2, 2024
Principal Balance Deferred Debt Issuance Costs Net Carrying Value Net Carrying Value
2030 Notes $ 400,000  $ (3,054) $ 396,946  $ 396,427 

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Deferred debt issuance costs are amortized using the straight-line method, which approximates the effect of the effective interest rate, through the maturity of the 2030 Notes. The amortization of deferred debt issuance costs for the 2030 Notes is included in interest expense and was approximately $0.5 million during both the first nine months of fiscal 2025 and fiscal 2024.

As of August 2, 2025, the estimated fair value of the 2030 Notes was $376.5 million. The 2030 Notes are categorized as Level 2 in the fair value hierarchy. Ciena estimated the fair value of its 2030 Notes using a market approach based on observable inputs, such as current market transactions involving comparable securities.

(13)ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in accumulated balances of other comprehensive income (“AOCI”), net of tax, for the nine months ended August 2, 2025 (in thousands):
Unrealized Gain (Loss) on
Available-for-sale Securities Foreign Currency Forward Contracts Interest Rate Swaps Cumulative
Translation Adjustment
Total
Balance at November 2, 2024 $ 798  $ (4,880) $ 8,668  $ (51,297) $ (46,711)
Other comprehensive gain (loss) before reclassifications (430) 2,871  (2,826) 5,619  5,234 
Amounts reclassified from AOCI —  2,932  (6,284) —  (3,352)
Balance at August 2, 2025 $ 368  $ 923  $ (442) $ (45,678) $ (44,829)

The following table summarizes the changes in AOCI, net of tax, for the nine months ended July 27, 2024 (in thousands):

Unrealized Gain (Loss) on
Available-for-sale Securities Foreign Currency Forward Contracts  Interest Rate Swaps Cumulative
Translation Adjustment
Total
Balance at October 28, 2023 $ (372) $ (8,156) $ 18,962  $ (48,201) $ (37,767)
Other comprehensive gain (loss) before reclassifications 493  (112) 1,728  2,961  5,070 
Amounts reclassified from AOCI —  3,848  (11,343) —  (7,495)
Balance at July 27, 2024 $ 121  $ (4,420) $ 9,347  $ (45,240) $ (40,192)

All amounts reclassified from AOCI related to settlements on foreign currency forward contracts designated as cash flow hedges, impacted research and development expense on the Condensed Consolidated Statements of Operations. All amounts reclassified from AOCI related to settlements on interest rate swaps designated as cash flow hedges, impacted interest and other income, net, on the Condensed Consolidated Statements of Operations.

(14) EARNINGS PER SHARE CALCULATION

Basic net income per common share (“Basic EPS”) is computed using the weighted average number of common shares outstanding. Diluted net income per potential common share (“Diluted EPS”) is computed using the weighted average number of the following, in each case, to the extent that the effect is not anti-dilutive: (i) common shares outstanding; (ii) shares issuable upon vesting of stock unit awards; and (iii) shares issuable under Ciena’s employee stock purchase plan, using the treasury stock method.
The following table presents the calculation of Basic EPS and Diluted EPS for the periods indicated (in thousands, except per share amounts):
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Quarter Ended Nine Months Ended
  August 2, July 27, August 2, July 27,
2025 2024 2025 2024
Net income $ 50,308  $ 14,230  $ 103,849  $ 46,928 
Basic weighted average shares outstanding 141,846  144,394  142,437  144,876 
Effect of dilutive potential common shares 2,653  967  2,721  919 
Diluted weighted average shares 144,499  145,361  145,158  145,795 
Basic EPS $ 0.35  $ 0.10  $ 0.73  $ 0.32 
Diluted EPS $ 0.35  $ 0.10  $ 0.72  $ 0.32 
Antidilutive employee share-based awards, excluded 1,371  690  1,330  1,286 


(15) STOCKHOLDERS’ EQUITY

Stock Repurchase Program

On October 2, 2024, Ciena announced that its Board of Directors authorized a three-year program to repurchase up to $1.0 billion of its common stock, commencing in fiscal 2025 and continuing through the end of fiscal 2027.

During the first nine months of fiscal 2025, Ciena repurchased approximately 3.3 million shares of its common stock for an aggregate purchase price of approximately $245.2 million, which equates to an average price of $75.02 per share. As of August 2, 2025, Ciena has an aggregate of $754.8 million authorized and remaining under its stock repurchase program. Ciena is required to allocate the purchase price for the shares of Ciena’s stock repurchased as a reduction of common stock and additional paid-in capital.

Stock Repurchases Related to Stock Unit Award Tax Withholdings
Ciena repurchases shares of its common stock to satisfy employee tax withholding obligations due on vesting of stock unit awards. The related purchase price of $60.0 million for the shares of Ciena’s stock repurchased during the first nine months of fiscal 2025 is reflected as a reduction to stockholders’ equity. Ciena is required to allocate the purchase price of the repurchased shares as a reduction of common stock and additional paid-in capital.

(16) SHARE-BASED COMPENSATION EXPENSE

The following table summarizes share-based compensation expense for the periods indicated (in thousands):
Quarter Ended Nine Months Ended
  August 2, July 27, August 2, July 27,
  2025 2024 2025 2024
Products $ 2,027  $ 1,660  $ 5,810  $ 4,738 
Services 3,941  3,122  11,327  9,486 
Share-based compensation expense included in cost of goods sold 5,968  4,782  17,137  14,224 
Research and development 16,749  13,118  48,007  40,064 
Selling and marketing 13,277  10,315  38,523  31,786 
General and administrative 11,008  9,257  32,176  29,211 
Share-based compensation expense included in operating expense 41,034  32,690  118,706  101,061 
Share-based compensation expense capitalized in inventory, net (74) (114) (147) 148 
Total share-based compensation expense $ 46,928  $ 37,358  $ 135,696  $ 115,433 

As of August 2, 2025, total unrecognized share-based compensation expense was approximately $284.0 million, which relates to unvested stock unit awards and is expected to be recognized over a weighted-average period of 1.4 years.

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(17) SEGMENTS AND ENTITY-WIDE DISCLOSURES
Segment Reporting
Ciena has the following operating segments for reporting purposes: (i) Networking Platforms; (ii) Platform Software and Services; (iii) Blue Planet Automation Software and Services; and (iv) Global Services.

Segment Profit (Loss)
Segment profit (loss) is determined based on internal performance measures used by Ciena’s chief executive officer to assess the performance of each operating segment in a given period. In connection with that assessment, the chief executive officer excludes the following items: selling and marketing costs; general and administrative costs; significant asset impairments and restructuring costs; amortization of intangible assets; interest and other income, net; interest expense; loss on extinguishment and modification of debt; and provision for income taxes.
The table below sets forth Ciena’s segment profit (loss) and the reconciliation to net income for the periods presented (in thousands):
Quarter Ended Nine Months Ended
  August 2, July 27, August 2, July 27,
  2025 2024 2025 2024
Segment profit (loss):
Networking Platforms $ 181,993  $ 106,870  $ 482,784  $ 387,211 
Platform Software and Services 54,529  53,131  168,077  165,171 
Blue Planet Automation Software and Services 4,192  4,705  13,059  (10,127)
Global Services 50,467  50,351  144,389  145,776 
Total segment profit 291,181  215,057  808,309  688,031 
Less: Non-performance operating expenses  
  Selling and marketing 148,724  121,520  424,911  373,749 
  General and administrative 60,596  58,248  171,450  162,504 
  Significant asset impairments and restructuring costs 1,770  1,361  5,262  21,987 
  Amortization of intangible assets 6,556  7,185  19,646  22,384 
Add: Other non-performance financial items
Interest and other income, net 15,090  14,013  34,539  36,460 
Interest expense (22,806) (24,401) (67,421) (72,038)
Loss on extinguishment and modification of debt —  —  (729) — 
Less: Provision for income taxes 15,511  2,125  49,580  24,901 
Net income $ 50,308  $ 14,230  $ 103,849  $ 46,928 

Entity-Wide Reporting
Ciena's long-lived assets, including equipment, building, furniture and fixtures, operating ROU assets, finite-lived intangible assets, and maintenance spares, are not reviewed by Ciena's chief operating decision maker for purposes of evaluating performance and allocating resources. As of August 2, 2025, equipment, building, furniture and fixtures, net, totaled $368.3 million, and operating ROU assets totaled $40.3 million both of which support asset groups within Ciena’s four operating segments and unallocated selling and general and administrative activities. As of August 2, 2025, finite-lived intangible assets, goodwill, and maintenance spares are assigned to asset groups within the following segments (in thousands):
August 2, 2025
Networking Platforms Platform Software and Services Blue Planet Automation Software and Services Global Services Total
Other intangible assets, net $ 137,558  —  1,115  —  $ 138,673 
Goodwill $ 199,588  156,191  89,049  —  $ 444,828 
Maintenance spares, net $ —  —  —  86,431  $ 86,431 
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The following table represents Ciena’s geographic distribution of equipment, building, furniture and fixtures, net and operating ROU assets, specifically identifying any country that accounts for at least 10% of the total of these assets. Assets attributable to geographic regions not identified are reflected as “Other International.” For the periods indicated, Ciena’s geographic distribution of equipment, building, furniture and fixtures, net, and operating ROU assets was as follows (in thousands):
August 2,
2025
November 2,
2024
Canada $ 311,313  $ 283,760 
United States 44,432  49,195 
Other International 52,950  32,184 
Total $ 408,695  $ 365,139 

(18) COMMITMENTS AND CONTINGENCIES

Tax Contingencies
Ciena is subject to various tax contingencies arising in the ordinary course of business. Ciena does not expect that the ultimate settlement of these contingencies will have a material effect on its financial position or cash flows.

Litigation

Ciena is subject to various legal proceedings, claims, and other matters arising in the ordinary course of business, including those that relate to employment, commercial, tax, and other regulatory matters. Ciena is also subject to intellectual property related claims, including claims against third parties that may involve contractual indemnification obligations on the part of Ciena. Ciena does not expect that the ultimate costs to resolve such matters will have a material effect on its results of operations, financial position, or cash flows.
Purchase Obligations
Ciena has certain advanced commitments for supply of certain long lead time components. As of August 2, 2025, Ciena had $1.8 billion in outstanding purchase commitments to contract manufacturers and component suppliers for inventory. In certain instances, Ciena is permitted to cancel, reschedule or adjust these commitments. Consequently, only a portion of this amount relates to firm, non-cancelable and unconditional obligations.
(19) SUBSEQUENT EVENTS

Stock Repurchase Program

From the end of the third quarter of fiscal 2025 through August 29, 2025, Ciena repurchased 286,619 shares of its common stock for an aggregate purchase price of $26.4 million at an average price of $92.10 per share, inclusive of repurchases pending settlement under its current stock repurchase program. As of August 29, 2025, Ciena has an aggregate of $728.4 million of authorized funds remaining under this repurchase program.

Reallocation of Innovation Investment and Fiscal 2025 Restructuring Plan
On August 26, 2025, in order to align Ciena’s strategic investments with our highest-growth demand opportunities, its executive team determined to cease forward investment in certain broadband development initiatives, primarily 25G PON, within the routing and switching product line of the Network Platforms operating segment. Ciena intends to continue support and development of its 10G PON-based products.
Ciena’s executive team also approved a restructuring plan intended to deliver increased operating efficiencies and, as a result, commencing during the fourth quarter of fiscal 2025, Ciena is implementing a workforce reduction of approximately 4% to 5% of its global headcount, which includes employees associated with the broadband development initiatives discussed above.
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The estimated cash cost related to these actions is approximately $20.0 million and represents employee severance and related costs. As such, we expect an expense of approximately $20.0 million to be incurred in the fourth quarter of fiscal 2025. In addition, Ciena anticipates that its decision to cease future investment in 25G PON will result in a non-cash charge in the fourth quarter of fiscal 2025 related to the abandonment of its in-process R&D intangible asset, which has a carrying value of $89.1 million as of August 2, 2025. During the fourth quarter of fiscal 2025, Ciena will also evaluate the impact of these actions on other assets including, but not limited to, inventory and fixed assets.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Note Regarding Forward-Looking Statements

This report contains statements that discuss future events or expectations, projections of results of operations or financial condition, changes in the markets for our products and services, trends in our business, operational matters including the expansion of manufacturing capacity and accumulation of inventory, business prospects and strategies and other “forward-looking” information. Forward-looking statements may appear throughout this report, including in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors.” In some cases, you can identify “forward-looking statements” by words like “may,” “will,” “would,” “can,” “should,” “could,” “expects,” “future,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “intends,” “potential,” “projects,” “targets,” “prepare,” or “continue” or the negative of those words and other comparable words. You should be aware that the forward-looking statements contained in this report are based on our current views and assumptions, and are subject to known and unknown risks, uncertainties, and other factors that may cause actual events or results to differ materially.

For a discussion identifying some of the important factors that could cause actual results to vary materially from those anticipated in the forward-looking statements, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in this report. For a more complete understanding of the risks associated with an investment in our securities, you should review these factors and the rest of this report in combination with the more detailed description of our business and management’s discussion and analysis of financial condition and risk factors described in our Annual Report on Form 10-K for the fiscal year ended November 2, 2024, which we filed with the Securities and Exchange Commission (the “SEC”) on December 20, 2024 (our “2024 Annual Report”). However, we operate in a very competitive and dynamic environment and new risks and uncertainties emerge, are identified, or become apparent from time to time, and therefore may not be identified in this report. We cannot predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this report. You should be aware that the forward-looking statements contained in this report are based on our current views and assumptions. We undertake no obligation to revise or to update any forward-looking statements made in this report to reflect events or circumstances after the date hereof or to reflect new information or the occurrence of unanticipated events, except as required by law. The forward-looking statements in this report are intended to be subject to protection afforded by the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Unless the context requires otherwise, references in this report to “Ciena,” the “Company,” “we,” “us,” and “our” refer to Ciena Corporation and its consolidated subsidiaries.

Overview

This Management’s Discussion and Analysis of Financial Condition and Results of Operations is designed to provide an understanding of our financial condition, results of operations, and cash flows, and it should be read in conjunction with our Condensed Consolidated Financial Statements and the accompanying notes thereto included in Item 1 of Part I of this report and in Item 8 of Part II of our 2024 Annual Report.
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We are a network technology company, providing hardware, software, and services to a wide range of network operators and enabling enhanced network capacity, service delivery, and automation. Our solutions support network traffic across a wide range of applications, including cloud, video, data, artificial intelligence (“AI”), and voice. Our network solutions are used globally by communications service providers, cable and multiservice operators, cloud providers, submarine network operators, governments, and enterprises across multiple industry verticals. Our portfolio is designed to enable the Adaptive Network™, which is our vision for a network end state that leverages a programmable and scalable network infrastructure, driven by software control and automation capabilities, that is informed by network analytics and intelligence. Our solutions include Networking Platforms, including our Optical Networking portfolio and our Routing and Switching portfolio, which can be applied from the network core to end-user access points, and which allow network operators to scale capacity, to increase transmission speeds, to allocate traffic efficiently, and to adapt dynamically to changing end-user service demands. To complement our Networking Platforms, we offer Platform Software, which includes our Navigator Network Control Software (NCS) and advanced applications that deliver multi-layer domain control and operations for network operators. Through our Blue Planet Automation Software, we also enable complete service lifecycle management automation with productized operational support systems, including inventory, orchestration and assurance solutions that help our customers to achieve closed loop automation across multi-vendor and multi-domain environments. In addition to our systems and software, we also offer a broad range of services that help our customers build, operate, and improve their networks and associated operational environments. These include network transformation, consulting, implementation, systems integration, maintenance, network operations center (NOC) management, learning, and optimization services.

Market Opportunity and Investment in Technology Innovation

The market into which we sell our communications networking solutions is dynamic and is characterized by a high rate of change, including rapid growth in bandwidth demand and network traffic, the proliferation of cloud-based services, and new approaches, or “consumption models,” for designing and procuring networking solutions. Drivers of increased bandwidth demand include enterprise and consumer cloud network adoption, AI, 5G, high-definition video, and network operator focus on resilience and automation. To address these growing service demands and manage network cost, many network operators are looking to adopt next-generation infrastructures that are more programmable and better capable of leveraging data for network insight, analytics and automation.

We believe that our investment capacity and our efforts to push the pace of innovation are important competitive differentiators in our markets. Keeping pace with the market’s demand for technology innovation requires considerable research and development investment capacity and expenditures, and research and development spending represented 18.1% of our revenue in the first nine months of fiscal 2025. During the first nine months of fiscal 2025, we invested $619.4 million in research and development activities, an increase of 8.4% compared to the first nine months of fiscal 2024. In particular, in an effort to capture certain market opportunities created by the impact of AI on networks, we have continued to innovate, increase the performance of, and enhance the capabilities for our leading WaveLogicTM coherent modem technology in multiple form factors. Through this innovation, we seek to extend our leadership in our core business and leverage this to expand our addressable market into complementary and adjacent network applications, including inside and around the data center.

Business Momentum

The optical component industry has been experiencing increased demand, in particular as a result of cloud provider expenditures related to AI and other applications. This increased demand has led to an industry-wide constrained supply environment with extended lead times, resulting in some customers accelerating future orders.

During the third quarter of fiscal 2025, we continued to experience broad-based business momentum, with orders for our products and services significantly exceeding our revenue, resulting in increased backlog. We believe some portion of this order growth was impacted by the industry dynamics described above. We experienced year-over-year order growth in our major customer segments, particularly with cloud provider customers and large communications service provider customers, with a single cloud provider customer continuing to provide a significant volume of orders. As a result, our revenue increased by 29.4% to $1.2 billion in the third quarter of fiscal 2025 as compared to $942.3 million in the third quarter of fiscal 2024. Two of our top five customers by revenue for the third quarter of fiscal 2025 were cloud providers. Although our business remains subject to quarterly fluctuations due to customer purchasing patterns and supply chain dynamics, we continue to believe that certain trends and shifts in business and consumer behaviors and the drivers of bandwidth demand described above under the heading “Overview - Market Opportunity and Investment in Technology Innovation” in this Item 2 represent long-term opportunities for our business.


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Reallocation of Innovation Investment and Fiscal 2025 Restructuring Plan
During the fourth quarter of fiscal 2025, in order to align our strategic investments with our highest-growth demand opportunities, our executive team determined to cease forward investment in certain broadband development initiatives, primarily 25G PON, within the routing and switching product line of the Network Platforms operating segment. We intend to continue support and development of our 10G PON-based products.
Our executive team also approved a restructuring plan intended to deliver increased operating efficiencies and, as a result, commencing during the fourth quarter of fiscal 2025, we are implementing a workforce reduction of approximately 4% to 5% of our global headcount, which includes employees associated with the broadband development initiatives discussed above.
For additional information on the expected impact of these decisions on our financial results, see Note 19 to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report.
For additional information regarding our business, industry, market opportunity, competitive landscape, and strategy, see our 2024 Annual Report.

Consolidated Results of Operations

Operating Segments

Our results of operations are presented based on the following operating segments: (i) Networking Platforms; (ii) Platform Software and Services; (iii) Blue Planet Automation Software and Services; and (iv) Global Services. See Note 3 to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report.

Revenue

Our revenue increased by 29.4%, or $277.1 million in the third quarter of fiscal 2025 as compared to the third quarter of fiscal 2024, and 18.2%, or $526.7 million in the first nine months of fiscal 2025 as compared to the first nine months of fiscal 2024.

Operating Segment Revenue

The table below sets forth the changes in our operating segment revenue for the periods indicated (in thousands, except percentage data):
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  Quarter Ended Nine Months Ended  
  August 2, 2025 July 27, 2024 %* August 2, 2025 July 27, 2024 %*
Revenue:      
Networking Platforms
Optical Networking $ 815,497  $ 606,845  34.4  % $ 2,317,062  $ 1,862,917  24.4  %
%** 66.9  % 64.4  % 67.8  % 64.4  %
Routing and Switching 125,857  92,692  35.8  % 311,749  320,113  (2.6) %
%** 10.3  % 9.8  % 9.1  % 11.1  %
Total Networking Platforms 941,354  699,537  34.6  % 2,628,811  2,183,030  20.4  %
%** 77.2  % 74.2  % 76.9  % 75.5  %
Platform Software and Services 89,961  83,212  8.1  % 270,469  258,402  4.7  %
%** 7.4  % 8.9  % 7.9  % 8.9  %
Blue Planet Automation Software and Services 27,805  25,791  7.8  % 81,787  54,167  51.0  %
%** 2.3  % 2.7  % 2.4  % 1.9  %
Global Services
Maintenance Support and Training 80,743  74,344  8.6  % 234,758  225,869  3.9  %
%** 6.6  % 7.9  % 6.9  % 7.8  %
Installation and Deployment 65,878  46,484  41.7  % 171,735  132,993  29.1  %
%** 5.4  % 4.9  % 5.0  % 4.6  %
Consulting and Network Design 13,644  12,940  5.4  % 29,963  36,382  (17.6) %
%** 1.1  % 1.4  % 0.9  % 1.3  %
Total Global Services 160,265  133,768  19.8  % 436,456  395,244  10.4  %
%** 13.1  % 14.2  % 12.8  % 13.7  %
Total revenue $ 1,219,385  $ 942,308  29.4  % $ 3,417,523  $ 2,890,843  18.2  %
_____________________________
*    Denotes % change from fiscal 2024 to fiscal 2025
**     Denotes % of total revenue

Quarter ended August 2, 2025 as compared to the quarter ended July 27, 2024
•Networking Platforms segment revenue increased by $241.9 million.
•Optical Networking products revenue increased by $208.7 million, primarily driven by increases in sales of our 6500 Reconfigurable Line Systems (“RLS”), as well as increases in sales of our Waveserver® system and our coherent pluggables, in each case primarily to cloud provider customers. These sales were partially offset by a sales decrease of our 6500 Packet-Optical Platform, primarily to enterprise customers.
•Routing and Switching products revenue increased by $33.2 million, primarily driven by an increase in sales of our 3000 and 5000 series of service delivery and aggregation platforms to communications service providers and cloud provider customers, partially offset by a decrease in sales of our virtualization software to communications service providers.
•Platform Software and Services segment revenue increased by $6.7 million, primarily reflecting sales increases of our Navigator Network Control SuiteTM domain controller solution.
•Blue Planet Automation Software and Services segment revenue increased by $2.0 million, primarily reflecting sales increases in our orchestration software and inventory management software services, partially offset by sales decreases of our inventory management software.
•Global Services segment revenue increased by $26.5 million, primarily reflecting a sales increase in our installation and deployment and maintenance support and training services.
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Nine months ended August 2, 2025 as compared to the nine months ended July 27, 2024
•Networking Platforms segment revenue increased by $445.8 million.
•Optical Networking sales increased by $454.1 million, primarily driven by increases in sales of our RLS as well as increases in sales of our coherent pluggables, both primarily to cloud provider customers, and our 6500 Packet-Optical Platforms, primarily to communications service provider customers.
•Routing and Switching sales decreased by $8.3 million, primarily driven by decreases in sales of other software.
•Platform Software and Services segment revenue increased by $12.1 million, primarily reflecting sales increases of our software consulting services and our software maintenance services.
•Blue Planet Automation Software and Services segment revenue increased by $27.6 million, primarily reflecting sales increases in our unified assurance and analytics software, orchestration software, and our inventory management software services.
•Global Services segment revenue increased by $41.2 million, primarily reflecting sales increases in our installation and deployment and maintenance support and training services, partially offset by a sales decrease in our consulting and network design services.

Revenue by Geographic Region

Our operating segments engage in business and operations across three geographic regions: the United States, Canada, the Caribbean and Latin America (“Americas”); Europe, Middle East and Africa (“EMEA”); and Asia Pacific, Japan and India (“APAC”). The geographic distribution of our revenue can fluctuate significantly from period to period, and the timing of revenue recognition for large network projects, particularly outside of the United States, can result in variations in geographic revenue results in any particular period.

The following table reflects our geographic distribution of revenue, principally based on the relevant location for our delivery of products and performance of services. The table sets forth the changes in geographic distribution of revenue for the periods indicated (in thousands, except percentage data):
Quarter Ended Nine Months Ended  
  August 2, 2025 July 27, 2024 %* August 2, 2025 July 27, 2024 %*
Americas $ 923,627  $ 718,605  28.5  % $ 2,553,081  $ 2,099,680  21.6  %
%** 75.7  % 76.3  % 74.7  % 72.6  %
EMEA 186,018  135,009  37.8  % 535,519  498,212  7.5  %
%** 15.3  % 14.3  % 15.7  % 17.3  %
APAC 109,740  88,694  23.7  % 328,923  292,951  12.3  %
%** 9.0  % 9.4  % 9.6  % 10.1  %
Total $ 1,219,385  $ 942,308  29.4  % $ 3,417,523  $ 2,890,843  18.2  %
_____________________________________
*    Denotes % change from fiscal 2024 to fiscal 2025
**     Denotes % of total revenue

Quarter ended August 2, 2025 as compared to the quarter ended July 27, 2024
•Americas revenue increased by $205.0 million, primarily driven by increased sales to cloud providers in the United States.
•EMEA revenue increased by $51.0 million, primarily driven by increased sales to cloud providers in the Netherlands.
•APAC revenue increased by $21.1 million, primarily driven by increased sales to communications service providers and cloud providers, partially offset by decreased sales to enterprise customers.
Nine months ended August 2, 2025 as compared to the nine months ended July 27, 2024
•Americas revenue increased by $453.4 million, primarily driven by increased sales to cloud providers as well as increased sales to communications service providers, each primarily in the United States.
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•EMEA revenue increased by $37.3 million, primarily driven by increased sales to cloud providers and communications service providers partially offset by decreased sales to submarine network operators.
•APAC revenue increased by $36.0 million, primarily driven by increased sales to communications service providers in India and Japan, partially offset by decreased sales to enterprise customers in Australia and Vietnam.

Currency Fluctuations
During the third quarter and first nine months of fiscal 2025, approximately 13.3% and 13.8% of our revenue was non-U.S. Dollar-denominated, respectively. During the third quarter of fiscal 2025 as compared to the third quarter of fiscal 2024, the U.S. Dollar generally weakened against other currencies, and during the first nine months of fiscal 2025 as compared to the first nine months of fiscal 2024, the U.S. Dollar generally strengthened against other currencies. These currency fluctuations had a positive effect on our revenue reported in U.S. Dollars of approximately $3.6 million, or 0.3%, as compared to the third quarter of fiscal 2024, and had an adverse effect on our revenue reported in U.S Dollars of approximately $5.6 million, or 0.2%, as compared to the first nine months of fiscal 2024.

Cost of Goods Sold and Gross Profit

There are a number of important factors or conditions that can adversely affect or cause our gross profit as a percentage of product or service revenue, or “gross margin,” to fluctuate on a quarterly basis. For example, early stages of new network builds also often include an increased concentration of lower margin “common” equipment, photonic line systems, and installation services, with the intent to improve margin as we sell channel cards, advanced software, and maintenance services to customers as they add capacity. In addition, products that are in early or introductory phases may carry lower margins. The component elements that comprise our product cost of goods sold and services cost of goods sold, and certain factors that can cause gross margin to fluctuate, are described in detail in the “Consolidated Results of Operations - Cost of Goods Sold and Gross Profit” in Item 7 of Part II and “Risk Factors” in Item 1A of Part I of our 2024 Annual Report.

The tables below set forth the changes in revenue, cost of goods sold and gross profit for the periods indicated (in thousands, except percentage data):

  Quarter Ended Nine Months Ended  
  August 2, 2025 July 27, 2024 %* August 2, 2025 July 27, 2024 %*
Total revenue $ 1,219,385  $ 942,308  29.4  % $ 3,417,523  $ 2,890,843  18.2  %
Total cost of goods sold 716,306  538,363  33.1  % 1,989,785  1,631,275  22.0  %
Gross profit $ 503,079  $ 403,945  24.5  % $ 1,427,738  $ 1,259,568  13.4  %
%** 41.3  % 42.9  % 41.8  % 43.6  %
_____________________________________
*    Denotes % change from fiscal 2024 to fiscal 2025
**     Denotes % of total revenue

Quarter ended August 2, 2025 as compared to the quarter ended July 27, 2024
•Gross profit increased by $99.1 million. Gross margin decreased by 160 basis points, primarily reflecting decreased services margins.
•Gross profit on products increased by $100.8 million from $296.0 million for the third quarter of fiscal 2024 to $396.8 million for the third quarter of fiscal 2025. Product gross margin of 40.6% did not change for the third quarter of fiscal 2025 as compared to the third quarter of fiscal 2024. However, in the third quarter of fiscal 2025, we experienced unfavorable product mix partially offset by improved manufacturing efficiencies and product cost reductions, as compared to the third quarter of fiscal 2024.
•Gross profit on services decreased by $1.7 million from $108.0 million for the third quarter of fiscal 2024 to $106.3 million for the third quarter of fiscal 2025. Services gross margin decreased by 690 basis points, from 50.7% for the third quarter of fiscal 2024 to 43.8% for the third quarter of fiscal 2025, primarily due to increased costs related to delivering maintenance arrangements.
Nine months ended August 2, 2025 as compared to the nine months ended July 27, 2024
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•Gross profit increased by $168.2 million. Gross margin decreased by 180 basis points, reflecting decreased products and services margin.
•Gross profit on products increased by $158.5 million from $950.9 million for the first nine months of fiscal 2024 to $1.11 billion for the first nine months of fiscal 2025. Product gross margin decreased by 140 basis points, from 42.0% for the first nine months of fiscal 2024 to 40.6% for the first nine months of fiscal 2025, primarily due to unfavorable product mix, partially offset by manufacturing efficiencies.
•Gross profit on services increased by $9.7 million from $308.7 million for the first nine months of fiscal 2024 to $318.4 million for the first nine months of fiscal 2025. Services gross margin decreased by 320 basis points, from 49.5% for the first nine months of fiscal 2024 to 46.3% for the first nine months of fiscal 2025, primarily due to increased costs related to delivering maintenance arrangements.

Operating Expense
The component elements that comprise each of our operating expense categories in the table below are set forth in the “Consolidated Results of Operations - Operating Expense” in Item 7 of Part II of our 2024 Annual Report. The table below sets forth the changes in operating expense for the periods indicated (in thousands, except percentage data):

  Quarter Ended   Nine Months Ended
  August 2, 2025 July 27, 2024 %* August 2, 2025 July 27, 2024 %*
Research and development $ 211,898  $ 188,888  12.2  % $ 619,429  $ 571,537  8.4  %
%** 17.4  % 20.0  % 18.1  % 19.8  %
Selling and marketing 148,724  121,520  22.4  % 424,911  373,749  13.7  %
%** 12.2  % 12.9  % 12.4  % 12.9  %
General and administrative 60,596  58,248  4.0  % 171,450  162,504  5.5  %
%** 5.0  % 6.2  % 5.0  % 5.6  %
Significant asset impairments and restructuring costs 1,770  1,361  30.1  % 5,262  21,987  (76.1) %
%** 0.1  % 0.1  % 0.2  % 0.8  %
Amortization of intangible assets 6,556  7,185  (8.8) % 19,646  22,384  (12.2) %
%** 0.5  % 0.8  % 0.6  % 0.8  %
Total operating expenses $ 429,544  $ 377,202  13.9  % $ 1,240,698  $ 1,152,161  7.7  %
%** 35.2  % 40.0  % 36.3  % 39.9  %
_____________________________________
*    Denotes % change from fiscal 2024 to fiscal 2025
**     Denotes % of total revenue

Quarter ended August 2, 2025 as compared to the quarter ended July 27, 2024
•Research and development expense increased by $23.0 million. Net of hedging, this increase primarily reflects increases in employee-related compensation costs primarily due to increases in incentive compensation, partially offset by lower prototype expense.
•Selling and marketing expense increased by $27.2 million. This increase primarily reflects increases in employee-related compensation costs primarily due to increases in incentive compensation.
•General and administrative expense increased by $2.3 million. This increase primarily reflects increases in employee-related compensation costs primarily due to increases in incentive compensation, partially offset by lower legal fees.
•Significant asset impairments and restructuring costs remained relatively unchanged.
•Amortization of intangible assets remained relatively unchanged.
Nine months ended August 2, 2025 as compared to the nine months ended July 27, 2024
•Research and development expense increased by $47.9 million. Net of hedging, this increase primarily reflects increases in employee-related compensation costs primarily due to increases in incentive compensation, and professional services related to design engineering, fabrication and production of ASIC chips, partially offset by lower prototype expense.
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•Selling and marketing expense increased by $51.2 million. This increase primarily reflects increases in employee-related compensation costs primarily due to increases in incentive compensation, and increases in travel and entertainment costs.
•General and administrative expense increased by $8.9 million. This increase primarily reflects increases in employee-related compensation costs primarily due to increases in incentive compensation, partially offset by lower legal fees and bad debt expense.
•Significant asset impairments and restructuring costs decreased by $16.7 million primarily due to a reduction in restructuring activities. For more information on our restructuring costs, see Note 4 to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report.
•Amortization of intangible assets decreased by $2.7 million, primarily reflecting certain intangible assets having reached the end of their economic lives.

Currency Fluctuations
During the third quarter and first nine months of fiscal 2025, approximately 47.7% and 48.2% of our operating expense was non-U.S. Dollar-denominated, respectively. During the third quarter and first nine months of fiscal 2025, as compared to the third quarter and first nine months of fiscal 2024, the U.S. Dollar fluctuated against other currencies. These currency fluctuations, net of hedging, had the effect of reducing our operating expense by a negligible amount as compared to the third quarter of fiscal 2024, and $12.3 million, or 1.0% as compared to the first nine months of fiscal 2024.

Segment Profit (Loss)
Segment profit (loss) is determined based on internal performance measures used by our chief executive officer to assess the performance of each operating segment in a given period. In connection with that assessment, the chief executive officer excludes the following items: selling and marketing costs; general and administrative costs; significant asset impairments and restructuring costs; amortization of intangible assets; interest and other income, net; interest expense; loss on extinguishment and modification of debt; and provision for income taxes.
The table below sets forth the changes in our segment profit (loss) for the periods indicated (in thousands, except percentage data):
  Quarter Ended   Nine Months Ended
  August 2, 2025 July 27, 2024 %* August 2, 2025 July 27, 2024 %*
Segment profit (loss):  
Networking Platforms $ 181,993  $ 106,870  70.3  % $ 482,784  $ 387,211  24.7  %
Platform Software and Services $ 54,529  $ 53,131  2.6  % $ 168,077  $ 165,171  1.8  %
Blue Planet Automation Software and Services $ 4,192  $ 4,705  (10.9) % $ 13,059  $ (10,127) 229.0  %
Global Services $ 50,467  $ 50,351  0.2  % $ 144,389  $ 145,776  (1.0) %
_____________________________________
*    Denotes % change from fiscal 2024 to fiscal 2025

Quarter ended August 2, 2025 as compared to the quarter ended July 27, 2024
•Networking Platforms segment profit increased by $75.1 million, primarily due to higher sales volume as described above, partially offset by higher research and development costs.
•Platform Software and Services segment profit increased by $1.4 million, primarily due to higher sales volume as described above, partially offset by reduced services margin as described above, and increased research and development costs.
•Blue Planet Automation Software and Services segment profit slightly decreased, primarily due to reduced services margin, partially offset by higher sales volume as described above.
•Global Services segment profit slightly increased, primarily due to increased sales volume as described above, partially offset by reduced services margin also described above.
Nine months ended August 2, 2025 as compared to the nine months ended July 27, 2024

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•Networking Platforms segment profit increased by $95.6 million, primarily due to higher sales volume, partially offset by reduced product margin as described above, and higher research and development costs.
•Platform Software and Services segment profit increased by $2.9 million, primarily due to higher services sales volume, partially offset by increased research and development costs and reduced margins as described above.
•Blue Planet Automation Software and Services segment profit increased by $23.2 million, primarily due to higher sales volume as described above, improved margins, and lower research and development costs.
•Global Services segment profit slightly decreased by $1.4 million, primarily due to reduced services margins as described above, partially offset by increased sales volume also described above.

Other Items
The table below sets forth the changes in other items for the periods indicated (in thousands, except percentage data):
  Quarter Ended   Nine Months Ended
  August 2, 2025 July 27, 2024 %* August 2, 2025 July 27, 2024 %*
Interest and other income, net $ 15,090  $ 14,013  7.7  % $ 34,539  $ 36,460  (5.3) %
%** 1.2  % 1.5  % 1.0  % 1.3  %
Interest expense $ 22,806  $ 24,401  (6.5) % $ 67,421  $ 72,038  (6.4) %
%** 1.9  % 2.6  % 2.0  % 2.5  %
Loss on extinguishment and modification of debt $ —  $ —  —  % $ 729  $ —  100.0  %
%** —  % —  % —  % —  %
Provision for income taxes $ 15,511  $ 2,125  629.9  % $ 49,580  $ 24,901  99.1  %
%** 1.3  % 0.2  % 1.5  % 0.9  %
_____________________________________
*    Denotes % change from fiscal 2024 to fiscal 2025
**     Denotes % of total revenue

Quarter ended August 2, 2025 as compared to the quarter ended July 27, 2024
•Interest and other income, net remained relatively unchanged.
•Interest expense decreased by $1.6 million, primarily due to lower interest rates on our floating rate debt, net of hedging activity. For more information on our short-term and long-term debt, see Note 12 to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report.
•Provision for income taxes increased by $13.4 million, primarily due to the increase in income before income taxes.
Nine months ended August 2, 2025 as compared to the nine months ended July 27, 2024
•Interest and other income, net decreased by $1.9 million, primarily resulting from lower interest income on our investments, partially offset by the impact of foreign exchange rates on assets and liabilities denominated in a currency other than the relevant functional currency, net of hedging activity.
•Interest expense decreased by $4.6 million, primarily due to lower interest rates on our floating rate debt, net of hedging activity. For more information on our short-term and long-term debt, see Note 12 to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report.
•Loss on extinguishment and modification of debt reflects the refinance of our 2030 Term Loan in the first quarter of fiscal 2025. See Note 12 to our Condensed Consolidated Financial Statements included in Item 1 of Part 1 of this report for more details.
•Provision for income taxes increased by $24.7 million, primarily due to the increase in income before income taxes.


Liquidity and Capital Resources
33


Based on past performance and current expectations, we believe that cash from operations, cash, cash equivalents, investments, and other sources of liquidity, including our Revolving Credit Facility (as defined below), will satisfy our currently anticipated working capital needs, capital expenditures, and other liquidity requirements associated with our operations through the next 12 months and the reasonably foreseeable future. We regularly evaluate our capital structure, liquidity position, debt obligations, and anticipated cash needs to fund our operating or investment plans or increase our strategic flexibility, and we will continue to consider capital raising and other market opportunities.
Principal Sources of Liquidity. Our principal sources of liquidity on hand include our cash, cash equivalents, and investments, which, as of August 2, 2025, totaled $1.4 billion, as well as the unused portion of our senior secured revolving credit facility (the “Revolving Credit Facility”), to which we and certain of our subsidiaries are parties. The Revolving Credit Facility provides for a total commitment of $300.0 million with a maturity date of October 24, 2028. We principally use the Revolving Credit Facility to support the issuance of letters of credit that arise in the ordinary course of our business and for general corporate purposes. As of August 2, 2025, letters of credit totaling $52.1 million were issued under the Revolving Credit Facility. There were no borrowings outstanding under the Revolving Credit Facility as of August 2, 2025.
Foreign Liquidity. The amount of cash, cash equivalents and short-term investments held by our foreign subsidiaries was $539.5 million as of August 2, 2025. Approximately $92.1 million of future cash generated from these foreign subsidiaries is expected to be repatriated, with any remaining amount continuing to be indefinitely reinvested. A deferred tax liability related to the expected repatriation amount was accrued in fiscal 2023. There are no other significant temporary differences related to our investment in the foreign subsidiaries for which a deferred tax liability has not been recognized.
Stock Repurchase Authorization. On October 2, 2024, we announced that our Board of Directors authorized a program to repurchase up to $1.0 billion of our common stock, which replaced in its entirety the previous stock repurchase program authorized in fiscal 2022. During the first nine months of fiscal 2025, we repurchased $245.2 million of our common stock under the stock repurchase program, and $754.8 million remained under the current repurchase authorization as of August 2, 2025. The amount and timing of any further repurchases under our stock repurchase program are subject to a variety of factors including liquidity, cash flow, stock price, and general business and market conditions. The program may be modified, suspended, or discontinued at any time. See Note 15 to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report as well as Item 2 of Part II of this report.

Cash Flows

The following table sets forth changes in our cash, cash equivalents, and investments in marketable debt securities for the periods indicated (in thousands):
August 2,
2025
November 2,
2024
Increase (Decrease)
Cash and cash equivalents $ 1,055,976  $ 934,863  $ 121,113 
Short-term investments in marketable debt securities 270,380  316,343  (45,963)
Long-term investments in marketable debt securities 64,397  80,920  (16,523)
Total cash, cash equivalents, and investments in marketable debt securities $ 1,390,753  $ 1,332,126  $ 58,627 

Cash, cash equivalents and investments increased by $58.6 million during the first nine months of fiscal 2025. Cash from operating activities generated $435.0 million which was partially offset by the following: (i) cash used for stock repurchases under our stock repurchase program of $250.0 million; (ii) cash used to fund our investing activities for capital expenditures totaling $95.4 million; (iii) stock repurchases on vesting of our stock unit awards to employees relating to tax withholding of $60.0 million; and (iv) cash used for payments on our term loan due October 28, 2030 of $8.7 million. In addition to cash provided by operating activities, proceeds from the issuance of equity under our employee stock purchase plan provided $35.9 million in cash during the nine months ended August 2, 2025.

Cash Provided By Operating Activities
The following sections set forth the components of our $435.0 million of cash provided by operating activities during the first nine months of fiscal 2025. Net income (adjusted for non-cash charges) provided cash of approximately $369.5 million and cash provided by operating assets and liabilities was approximately $65.5 million.

Net income (adjusted for non-cash charges)
34


The following table sets forth our net income (adjusted for non-cash charges) during the period (in thousands):
  Nine Months Ended
  August 2, 2025
Net income $ 103,849 
Adjustments for non-cash charges:  
Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements 76,637 
   Share-based compensation expense 135,696 
   Amortization of intangible assets 26,343 
Deferred taxes (21,709)
   Provision for inventory excess and obsolescence 34,185 
   Provision for warranty 16,302 
   Other (1,838)
Net income (adjusted for non-cash charges) $ 369,465 

Operating Assets and Liabilities
Operating asset and liability requirements decreased by $65.5 million during the period. The following table sets forth the major components of the cash changes in operating assets and liabilities (in thousands):
Nine Months Ended
August 2, 2025
Accounts receivable $ (116,887)
Inventories (73,493)
Prepaid expenses and other 137,440 
Accounts payable, accruals, and other obligations 83,354 
Deferred revenue 38,246 
Operating lease assets and liabilities, net (3,109)
 Total cash provided by operating assets and liabilities $ 65,551 

As compared to the end of fiscal 2024, for the first nine months of fiscal 2025:

•The change in accounts receivable primarily reflects the timing of cash collections from customers and increased sales volume;
•The change in inventories primarily reflects increases in raw materials;
•The change in prepaid expenses and other primarily reflects reduced refundable cash advances to a third-party contract manufacturer partially offset by increased contract assets for unbilled accounts receivable;
•The change in accounts payable, accruals, and other obligations primarily reflects a higher accrual associated with our annual incentive compensation plan, the timing of payments to suppliers and the timing of payments for payroll, partially offset by timing of payments for income taxes;
•The change in deferred revenue primarily represents an increase in advanced payments received on multi-year maintenance contracts from customers prior to revenue recognition; and
•The change in operating lease assets and liabilities, net, represents cash paid for operating lease payments in excess of operating lease costs.

35


Our days sales outstanding (“DSOs”) decreased from 97 for the first nine months of fiscal 2024 to 94 for the first nine months of fiscal 2025. The calculation of DSOs includes accounts receivables, net, and contract assets for unbilled receivables, net included in prepaid expenses and other. Our inventory turns increased from 1.9 for the first nine months of fiscal 2024 to 2.5 for the first nine months of fiscal 2025.

Cash Paid for Interest, Net

The following table sets forth the cash paid for interest, net, during the period (in thousands):
Nine Months Ended
August 2, 2025
2030 Term Loan terminated January 17, 2025(1)
$ 18,639 
Refinanced 2030 Term Loan due October 28, 2030(2)
35,991 
2030 Senior Notes due January 31, 2030(3)
16,000 
Interest rate swaps(4)
(6,284)
Revolving Credit Facility(5)
1,364 
Finance leases 2,533 
Cash paid during period $ 68,243 

(1) The 2030 Term Loan bore interest at SOFR for the chosen borrowing period plus a spread of 2.00% subject to a minimum SOFR rate of 0.00%.
(2) Interest on the Refinanced 2030 Term Loan is payable periodically based on the interest period selected for borrowing. The Refinanced 2030 Term Loan bears interest at SOFR for the chosen borrowing period plus a spread of 1.75% subject to a minimum SOFR rate of 0.00%. At the end of the third quarter of fiscal 2025, the interest rate on the Refinanced 2030 Term Loan was 6.10%.
(3) The 2030 Notes bear interest at a rate of 4.00% per annum. Interest is payable on the 2030 Notes in arrears on January 31 and July 31 of each year.
(4) Our interest rate swaps fix the SOFR rate for $350.0 million of our Term Loan at 3.47% through January 2028 and another $350.0 million of our Term Loan at 2.968% through September 2025.
(5) During the first nine months of fiscal 2025, we utilized the Revolving Credit Facility to issue certain standby letters of credit and paid nominal commitment fees, interest expense and other administrative charges primarily relating to the Revolving Credit Facility.
For additional information about our debt and interest rate swaps, see Notes 10 and 12 to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report.

Contractual Obligations
Our contractual obligations have not changed materially since November 2, 2024. For a summary of our contractual obligations, see “Liquidity and Capital Resources – Contractual Obligations” in Item 7 of Part II of our 2024 Annual Report.

Critical Accounting Policies and Estimates

Our critical accounting policies and estimates have not changed materially since November 2, 2024. For a discussion of our critical accounting policies and estimates, see “Critical Accounting Policies and Estimates” in Item 7 of Part II of our 2024 Annual Report.

Effects of Recent Accounting Pronouncements

See Note 2 to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report for information relating to our discussion of the effects of recent accounting pronouncements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

36


We are exposed to market risk related to changes in interest rates and foreign currency exchange rates. For a discussion of quantitative and qualitative disclosures about market risk, see Item 7A of Part II of our 2024 Annual Report.

Item 4. Controls and Procedures
Disclosure Controls and Procedures
As of the end of the period covered by this report, we carried out an evaluation under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.
Changes in Internal Control over Financial Reporting
There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

    The information set forth under the heading “Commitments and Contingencies - Litigation” in Note 18 to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report, is incorporated herein by reference.

Item 1A. Risk Factors

Investing in our securities involves a high degree of risk. Before investing in our securities, you should consider carefully the information contained in this report and in our 2024 Annual Report, including the information under “Risk Factors” in Item 1A of Part I thereof. This report contains forward-looking statements that involve risks and uncertainties. See “Management’s Discussion and Analysis of Financial Conditions and Results of Operations – Cautionary Note Regarding Forward-Looking Statements” in Item 2 of Part I of this report. Our actual results could differ materially from those contained in the forward-looking statements. Any of the risks discussed in our 2024 Annual Report, in this report, in other reports we file with the SEC, and other risks we have not anticipated or discussed, could have a material adverse impact on our business, financial condition, or results of operations. Except as set forth below, there has been no material change to the material factors that make an investment in our securities speculative or risky from those presented in our 2024 Annual Report.

Tariffs and other import measures imposed by the United States or other countries may adversely affect our business, operations, and financial results.
In January 2025, the U.S. government commenced a broad review of U.S. trade relations and began imposing, or threatening to impose, tariffs on certain countries, materials, and industries. In response, certain impacted countries have imposed or threatened various retaliatory tariffs or other trade restrictions. We rely on a global sourcing strategy and third-party contract manufacturers outside of the United States to perform substantially all of our manufacturing. Moreover, revenue in the United States represented approximately 70% of our revenue in fiscal 2024. Significant changes to trade policy, the imposition of tariffs, or retaliatory responses thereto, have adversely impacted and could materially adversely impact our business, operations, and financial results, including by increasing our costs, by decreasing our profit margins, and/or by making our products less competitive. The tariff policy environment has been and can be expected to continue to be dynamic. Tariffs recently implemented that have impacted or could materially impact our business include tariffs on imports:
•from Canada and Mexico, as products making up a significant portion of our revenue are manufactured in or distributed from Mexico, and we generally introduce new products and conduct related early volume manufacturing in Canada;
•of steel, aluminum, and copper, including derivative goods that include certain of our products;
•from China, as our supply chain includes certain China-based suppliers; and
•from a wide range of countries globally, including Thailand and Vietnam, where we also rely on third-party manufacturing operations for a significant portion of our revenue.
37


Additionally, we currently rely upon certain trade agreements and product or technology based exemptions that reduce our tariff exposure. The U.S. government is currently investigating imports of a range of different products, including semiconductors and critical raw minerals, and derivative products relevant to our business and products, which could result in material additional tariffs. There can be no guarantee as to which of our products will be impacted by new or changing tariffs, or that they will remain eligible for exceptions under existing or future trade agreements or executive orders.
We have taken steps, and may take additional steps, to attempt to mitigate the impact of tariffs on our business, including: by availing ourselves of certain exemptions to tariffs; by making changes to our supply chain practices, sources of supply, or manufacturing locations; and by passing the cost of tariffs to customers. These changes could take considerable time to implement, result in significant costs, and cause supply chain delays or disruption. Moreover, there can be no assurance as to customer reaction to the current trade environment, the imposition of new tariffs, or any tariff mitigation steps we elect to take. Among other things, customers may elect to reduce spending, renegotiate contracts, defer orders or delivery of existing orders, or shift purchases to other vendors, each of which would adversely impact our financial results and competitive position with customers.
Certain tariffs that have been implemented or proposed are subject to legal challenges, but there can be no assurance that such challenges will be successful or that, if successful, additional or alternative tariffs will not be imposed. The results of such legal challenges, including any potential resulting retroactive changes to tariffs, could adversely impact our financial results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities

The following table provides a summary of repurchases of our common stock during the third quarter of fiscal 2025:
Period
Total Number of Shares Purchased (1)
Average Price Paid per Share(1)
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in thousands)(1)
May 4, 2025 to May 31, 2025 318,958  $ 78.63  318,958  $ 811,575 
June 1, 2025 to June 28, 2025 329,467  $ 76.12  329,467  $ 786,495 
June 29, 2025 to August 2, 2025 377,372  $ 83.95  377,372  $ 754,816 
1,025,797  $ 79.78  1,025,797 

(1) On October 2, 2024, we announced that our Board of Directors authorized a program to repurchase up to $1.0 billion of our common stock, which replaced in its entirety the previous stock repurchase program. The program may be modified, suspended, or discontinued at any time. During the third quarter of fiscal 2025, we repurchased $81.8 million of our common stock under the stock repurchase program, and we had $754.8 million remaining under the current repurchase authorization as of August 2, 2025. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Stock Repurchase Authorization” in Item 2 of Part I of this report and Note 15 to our Condensed Consolidated Financial Statements included in Item 1 of Part I of this report for information regarding the stock repurchase program authorized by our Board of Directors.

Item 3. Defaults Upon Senior Securities
Not applicable.

Item 4. Mine Safety Disclosures
Not applicable.

Item 5. Other Information
Rule 10b5-1 Trading Arrangements
The following table describes, for the third quarter of fiscal 2025, each trading arrangement for the sale or purchase of our securities adopted, terminated or for which the amount, pricing or timing provisions were modified by our directors and officers (as defined in Rule 16a-1(f) of the Exchange Act) that is either (1) a contract, instruction or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) (a “Rule 10b5-1 trading arrangement”) or (2) a “non-Rule 10b5-1 trading arrangement” (as defined in Item 408(c) of Regulation S-K):
38



Name
(Title)
Action Taken (Date of Action) Type of Trading Arrangement Nature of Trading Arrangement Duration of Trading Arrangement Aggregate Number of Securities to be Purchased or Sold
Dino DiPerna
(Senior Vice President, Global Research & Development)
Adoption (July 11, 2025)
Rule 10b5-1 trading arrangement Sales
Until July 24, 2026, or such earlier date upon which all transactions are completed or expire without execution (1)
(2)
Brodie Gage
(Senior Vice President, Global Products & Supply Chain)
Adoption (July 1, 2025)
Rule 10b5-1 trading arrangement Sales
Until December 31, 2026, or such earlier date upon which all transactions are completed or expire without execution (3)
Up to 7,150 shares of common stock

(1)    Sales under this arrangement will not begin until November 17, 2025, following expiration of Mr. DiPerna’s existing Rule 10b5-1 trading arrangement.

(2)    The aggregate number of shares of common stock to be sold pursuant to Mr. DiPerna’s arrangement is up to (i) 6,391 shares of common stock, plus (ii) up to 50% of the net after-tax shares of common stock to be received as a result of the vesting on December 20, 2025 of an aggregate of (a) 2,616 earned performance stock units, (b) performance stock units that have not yet been earned, the actual number of which depends on performance and ranges from 0% to 200% of the 3,829 shares subject to the award at the target level of performance, and (c) 3,965 restricted stock units, plus (iii) up to 50% of the net after-tax shares of common stock to be received as a result of the vesting on March 20, 2026 of an aggregate of up to 3,368 restricted stock units, plus (iv) up to 50% of the net after-tax shares of common stock to be received as a result of the vesting on June 20, 2026 of an aggregate of 3,370 restricted stock units. The actual number of net after-tax shares to be received will vary based on the market price of our common stock at the time of settlement.

(3)    Sales under this arrangement will not begin until December 15, 2025, following expiration of Mr. Gage’s existing Rule 10b5-1 trading arrangement.
39



Item 6. Exhibits
10.1
31.1
31.2
32.1
32.2
101.INS Inline XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH Inline XBRL Taxonomy Extension Schema Document
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document
104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
* Represents management contract or compensatory plan or arrangement

40


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
  Ciena Corporation
 
Date: September 4, 2025 By:   /s/ Gary B. Smith  
    Gary B. Smith 
    President, Chief Executive Officer
and Director
(Duly Authorized Officer) 
   
Date: September 4, 2025 By:   /s/ Marc D. Graff 
    Marc D. Graff
    Senior Vice President, Finance and
Chief Financial Officer
(Principal Financial Officer) 
41
EX-31.1 2 ex311certofceo08-02x25.htm EX-31.1 Document


CIENA CORPORATION
CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Gary B. Smith, certify that:
1. I have reviewed this quarterly report of Ciena Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Dated: September 4, 2025
  /s/ Gary B. Smith  
  Gary B. Smith 
  President and Chief Executive Officer


EX-31.2 3 ex312certofcfo08-02x25.htm EX-31.2 Document

CIENA CORPORATION
CERTIFICATION OF CHIEF FINANCIAL OFFICER
I, Marc D. Graff, certify that:
1. I have reviewed this quarterly report of Ciena Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: September 4, 2025

/s/ Marc D. Graff
Marc D. Graff
Senior Vice President and Chief Financial Officer


EX-32.1 4 ex321certofceosection90608.htm EX-32.1 Document

CIENA CORPORATION
Written Statement of Chief Executive Officer
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

The undersigned, the Chief Executive Officer of Ciena Corporation (the “Company”), hereby certifies that, to his knowledge, on the date hereof:
(a) the Report on Form 10-Q of the Company for the quarter ended August 2, 2025 filed on the date hereof with the Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(b) information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ Gary B. Smith
Gary B. Smith
President and Chief Executive Officer
September 4, 2025

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Ciena Corporation and will be retained by Ciena Corporation and furnished to the Securities and Exchange Commission or its staff upon request.



EX-32.2 5 ex322certofcfosection90608.htm EX-32.2 Document

CIENA CORPORATION
Written Statement of Chief Financial Officer
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

The undersigned, the Chief Financial Officer of Ciena Corporation (the “Company”), hereby certifies that, to his knowledge, on the date hereof:
(a) the Report on Form 10-Q of the Company for the quarter ended August 2, 2025 filed on the date hereof with the Securities and Exchange Commission (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(b) information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ Marc D. Graff
Marc D. Graff
Senior Vice President and Chief Financial Officer
September 4, 2025

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Ciena Corporation and will be retained by Ciena Corporation and furnished to the Securities and Exchange Commission or its staff upon request.