SCHEDULE 13G/A: Divisar Entities Disclose Significant Passive Stake in ADTRAN Holdings, Inc.

Divisar Partners QP, L.P., Divisar Capital Management LLC, and Steven Baughman have filed an amended Schedule 13G, disclosing their passive beneficial ownership in ADTRAN Holdings, Inc. common stock.

Summary

• Divisar Partners QP, L.P. reported beneficial ownership of 3,192,527 shares of ADTRAN Holdings, Inc. common stock, representing 4.0% of the class.
• Divisar Capital Management LLC and Steven Baughman each reported beneficial ownership of 3,428,863 shares, representing 4.3% of the class.
• Divisar Capital Management LLC serves as the investment adviser and general partner to Divisar Partners QP, L.P. and Divisar Partners, L.P.
• Steven Baughman, as CEO of Divisar Capital Management LLC, exercises investment and voting discretion over the shares held by the Funds.
• The ownership percentages are based on 79,860,033 shares of ADTRAN Holdings, Inc. common stock outstanding as of February 28, 2025, as reported in the issuer's Form 10-K.
• The reporting persons certify that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of ADTRAN Holdings, Inc.
• Divisar Partners QP, L.P. expressly disclaims beneficial ownership over the reported securities.

Sentiment

Score: 5

Explanation: The document is a factual disclosure of beneficial ownership, indicating a passive investment. It contains no positive or negative operational news about the company itself, thus a neutral sentiment score is appropriate.

Positives

• The disclosure of a significant passive investment by institutional entities may signal confidence in ADTRAN Holdings, Inc. from these investors.

Risks

• The filing itself does not detail specific risks related to ADTRAN Holdings, Inc.'s operations or financial health; it pertains solely to ownership disclosure.
• Divisar Partners QP, L.P. expressly disclaims beneficial ownership over the reported securities, which is a standard legal disclaimer in such filings.

Future Outlook

This Schedule 13G filing is a disclosure of current beneficial ownership and does not contain any forward-looking statements or guidance regarding ADTRAN Holdings, Inc.'s future performance or outlook.

Management Comments

• "Pursuant to Rule 13d-4 under the Securities Exchange Act of 1934, as amended, Divisar Partners QP, L.P. expressly disclaims beneficial ownership over any of the securities reported in this statement, and the filing of this statement shall not be construed as an admission that Divisar Partners QP, L.P. is the beneficial owner of any of the securities reported herein."
• "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."

Industry Context

This filing is a standard disclosure of a significant passive ownership stake by an investment firm in a publicly traded company. It does not provide specific insights into broader industry trends or competitive dynamics within the telecommunications or networking equipment sector where ADTRAN operates.

Comparison to Industry Standards

• This document is a regulatory filing detailing beneficial ownership and does not contain information suitable for comparison to industry-specific operational or financial benchmarks. It is a disclosure of an investment position rather than a performance report.

Stakeholder Impact

• Shareholders: The disclosure of a significant passive stake by institutional investors provides transparency regarding the ownership structure and may be viewed as a vote of confidence, though the intent is explicitly not to influence control.

Next Steps

• The document does not outline any specific future actions, events, or milestones for ADTRAN Holdings, Inc. or the reporting persons beyond the ongoing passive investment.

Key Dates

Keywords

ADTRAN Holdings Inc., ADTRAN, Divisar Partners QP L.P., Divisar Capital Management LLC, Steven Baughman, Schedule 13G, Beneficial Ownership, Common Stock, SEC Filing, Institutional Investor, Passive Investment