CIENA CORPORATION

Red flags

• The five largest customers generated approximately 50% of fiscal 2025 revenue; one cloud provider represented 18% and one service provider 11%.
• Inventory was $826.2 million against $2.1 billion of purchase commitments, many non-cancellable, creating material mismatch and write-down risk if demand or mix changes.
• Gross margin declined to 42.0%, with services margin down to 45.8%, while operating expenses rose 16.4% to $1.8 billion.