TakeoverPE & activists

RBBNRibbon Communications Inc.

Services-Computer Integrated Systems Design · $277M market cap · 3,080 employees

2.2×

More likely than average to be taken private

Top 6% of the Russell 3000 for a buyout by a private-equity firm, holdco or insiders. How it works

Takeover signals

What an activist or buyer would see: cheap, overpaid, diluted or under pressure.

12 other checks
  • High CEO pay despite TSRNo
    —
    Median CEO pay ≥ $15M while TSR trails
  • Earnings not backed by cashNo
    1297× net income
    Cash flow under 80% of net income
  • Dilutive SBCNo
    2% of revenue
    Over 10% of revenue
  • Payouts exceed cash flowNo
    19% of cash flow
    Buybacks + dividends over cash flow
  • Goodwill-heavyNo
    26% of assets
    Over 40% of assets
  • Quiet on AINo
    8.7 per 10K words · 91st pct
    Bottom quartile of AI mentions in 10-Ks
  • Net cashNo
    23.1× EBITDA net debt
    More cash than debt, positive EBITDA
  • Buyout-sizedNo
    $277M market cap
    Market cap $500M–$5B
  • Recurring revenueNo
    4 of 10
    10-K business scored 7+ of 10 for recurring revenue
  • AI-rollup shapedNo
    0 of 10
    10-K business scored 5+ of 10 as an AI-rollup target
  • Active 13DNo
    0 filings
    Active-intent 13D in 18 months
  • Net insider sellingNo
    $74K net
    Net sales over $10M in 12 months

Deal filings

FiledFormAcquirerPricePremium
Jan 10, 2020DEFM14AEclipse Communications Ltd.$414675000.0029.4%
Dec 24, 2019PREM14A—$414675000.0029.4%

Key numbers

Revenue
—FY2022: $820MFY2023: $826MFY2024: $834MFY2025: $845M
Operating margin
—FY2022: -5.9%FY2023: -2.9%FY2024: 2.0%FY2025: -0.4%
EBITDA
—FY2022: −$33MFY2023: −$10MFY2024: $30MFY2025: $13M
Net debt / EBITDA
—
$310M net debt

Financials

MetricFY2022FY2023FY2024FY2025FY2026YoYTrend
Revenue$820M$826M$834M$845M—FY2022: $820MFY2023: $826MFY2024: $834MFY2025: $845M
Operating income−$48M−$24M$17M−$3M—FY2022: −$48MFY2023: −$24MFY2024: $17MFY2025: −$3M
Net income−$98K−$66K−$54K$40K—FY2022: −$98KFY2023: −$66KFY2024: −$54KFY2025: $40K
Operating cash flow−$26M$17M$50M$51M—FY2022: −$26MFY2023: $17MFY2024: $50MFY2025: $51M
Capex$10M$9M$22M$25M—FY2022: $10MFY2023: $9MFY2024: $22MFY2025: $25M
Stock-based comp$19M$22M$16M$19M—FY2022: $19MFY2023: $22MFY2024: $16MFY2025: $19M
Buybacks———$9M$10M 9.4% FY2025: $9MFY2026: $10M

13D filers

FiledFilerFormStakeIntent
Aug 18, 2022Swarth Investments Ltd.SC 13D/A32.8%Passive
Aug 16, 2022JPMORGAN CHASE & COSC 13D/A30.8%Passive
May 5, 2020JPMORGAN CHASE & COSC 13D/A72.8%Passive
Mar 13, 2020ECI Holding (Hungary) Kft.SC 13D35.9%Passive
Mar 5, 2020JPMORGAN CHASE & COSC 13D/A87.3%Passive
Nov 18, 2019JPMORGAN CHASE & COSC 13D/A94.1%Active

Insider trading

+$74Knet buying by insiders, open market, last 12 months
Bought $74K · 3 tradesSold $0 · 0 trades

Pay vs performance

YearCEO total compComp actually paidTSR (indexed)Peer TSR
FY2025——44107
FY2024——6398
FY2023——4488
FY2022——4378
FY2021——92105