SCHEDULE: Divisar Capital Reports 4.0% Stake in ADTRAN Holdings

Divisar Capital Management LLC and Steven Baughman disclose a 4.0% beneficial ownership stake in ADTRAN Holdings, Inc. common stock.

Summary

• Divisar Capital Management LLC and Steven Baughman collectively hold 3,213,090 shares of ADTRAN Holdings, Inc. common stock.
• This ownership represents 4.0% of the company's outstanding common stock.
• The percentage is based on 80,115,995 shares outstanding as of October 31, 2025, as reported by ADTRAN Holdings in its Form 10-Q filed on November 4, 2025.
• The reporting persons have shared voting power and shared dispositive power over all 3,213,090 shares.
• The securities were acquired and are held in the ordinary course of business, not for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 6

Explanation: The filing is a routine disclosure of a passive investment. A 4.0% stake indicates significant institutional interest, which is generally a neutral to slightly positive signal, as it suggests a professional investor sees value in the company without indicating activist intent.

Positives

• The disclosure indicates continued institutional interest in ADTRAN Holdings, Inc. by Divisar Capital Management LLC and its CEO, Steven Baughman.
• The investment is stated to be for ordinary course of business, suggesting a passive, long-term investment strategy rather than activist intent.

Negatives

• The filing itself does not contain information that would be considered negative for ADTRAN Holdings, Inc.

Risks

• The filing does not explicitly mention specific risks related to ADTRAN Holdings, Inc. or the investment.

Future Outlook

The filing does not contain any forward-looking statements or guidance from ADTRAN Holdings, Inc. or the reporting persons regarding the company's future performance.

Management Comments

• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under 240.14a-11." Steven Baughman, CEO of Divisar Capital Management LLC.

Industry Context

This Schedule 13G filing indicates that Divisar Capital Management, an investment adviser, maintains a significant passive stake in ADTRAN Holdings. Such filings are routine disclosures by institutional investors when their ownership crosses certain thresholds (typically 5% for initial 13G filings, or amendments for changes). It signals continued institutional confidence or interest in the telecommunications equipment sector, where ADTRAN operates.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake may provide a degree of confidence, indicating that professional investors see value in the company.
• Management: Awareness of a substantial passive investor may influence strategic decisions, though the filing explicitly states no intent to influence control.

Key Dates

Keywords

ADTRAN Holdings, Divisar Capital Management, Steven Baughman, Beneficial Ownership, Common Stock, SEC Filing, Schedule 13G, Institutional Investor, ADTN