ADTN
ADTRAN Holdings, Inc. Common Stock
stock NASDAQ

**Despite the wild ride the stock took in Q3, the news improves for POET (NASDAQ:POET). It is now flush with cash, with approximately $350 million in the bank, and we expect it will start to ship production orders in Q4, beginning with an initial shipment of optical modules to Celestial AI. In Q1/Q2, expect increased shipments to Celestial, the start of shipments to Adtran (NASDAQ:ADTN) of optical engines (the $500,000 order), and late in the year, the beginning of transceiver module shipments to white box manufacturers. Optical Engines for Adtran’s pluggable transceiver called “MicroMux Quattro” will go into production in the middle of 2026. In Q4, other than a small amount of product revenues from Celestial, the rest is expected to be NRE revenue. Most of the NRE revenue will be from one customer who has already prepaid for the custom development. The prepayment of $619,002 is recorded as contract liabilities on the balance sheet, which will turn into revenue in Q4 and in the first quarter of 2026. The company is also finishing up other development contracts and is expected to book another $2 million in NRE revenues during 2026. The $2 million in NREs, the $5 million, and the $500,000 order already get us to $7.5 million in backlog for 2025.**
**With $350 million in cash, $6.5 million in debt, and 131.8 million shares outstanding, the stock trades at an enterprise value of approximately $236 million. According to Fortune Business Insights, the optical transceiver market is rising at a CAGR of 16% from $12.6 billion in 2024 to $20.7 billion by 2030 and $42.5 billion by 2032. POET’s product is a component of an optical transceiver, and that market is about a third of the transceiver market. If POET can secure even a small portion of that market with its unique offering, its valuation should far exceed its current price. We believe the stock could be worth $7.30 per fully diluted share based on 2027 revenues at 11.6 times EV to Sales, discounted at 15% back to present value.**
1/18/2025
By [Lisa Thompson](https://scr.zacks.com/analyst-bios/person-details/default.aspx?ItemId=92a314f9-9679-4853-bc6b-a29a82234bdc)
NASDAQ:POET
[READ THE FULL POET RESEARCH REPORT](https://s27.q4cdn.com/906368049/files/News/2025/Zacks_SCR_Research_11182025_POET_Thompson.pdf)

**Despite the wild ride the stock took in Q3, the news improves for POET (NASDAQ:POET). It is now flush with cash, with approximately $350 million in the bank, and we expect it will start to ship production orders in Q4, beginning with an initial shipment of optical modules to Celestial AI. In Q1/Q2, expect increased shipments to Celestial, the start of shipments to Adtran (NASDAQ:ADTN) of optical engines (the $500,000 order), and late in the year, the beginning of transceiver module shipments to white box manufacturers. Optical Engines for Adtran’s pluggable transceiver called “MicroMux Quattro” will go into production in the middle of 2026. In Q4, other than a small amount of product revenues from Celestial, the rest is expected to be NRE revenue. Most of the NRE revenue will be from one customer who has already prepaid for the custom development. The prepayment of $619,002 is recorded as contract liabilities on the balance sheet, which will turn into revenue in Q4 and in the first quarter of 2026. The company is also finishing up other development contracts and is expected to book another $2 million in NRE revenues during 2026. The $2 million in NREs, the $5 million, and the $500,000 order already get us to $7.5 million in backlog for 2025.**
**With $350 million in cash, $6.5 million in debt, and 131.8 million shares outstanding, the stock trades at an enterprise value of approximately $236 million. According to Fortune Business Insights, the optical transceiver market is rising at a CAGR of 16% from $12.6 billion in 2024 to $20.7 billion by 2030 and $42.5 billion by 2032. POET’s product is a component of an optical transceiver, and that market is about a third of the transceiver market. If POET can secure even a small portion of that market with its unique offering, its valuation should far exceed its current price. We believe the stock could be worth $7.30 per fully diluted share based on 2027 revenues at 11.6 times EV to Sales, discounted at 15% back to present value.**
1/18/2025
By [Lisa Thompson](https://scr.zacks.com/analyst-bios/person-details/default.aspx?ItemId=92a314f9-9679-4853-bc6b-a29a82234bdc)
NASDAQ:POET
[READ THE FULL POET RESEARCH REPORT](https://s27.q4cdn.com/906368049/files/News/2025/Zacks_SCR_Research_11182025_POET_Thompson.pdf)