Harmonic(US:HLIT)2025-11-03 21:08Revenue Performance - Q3 2025 revenue was $142.4 million, a decrease of 27.3% from $195.8 million in Q3 2024[6] - Total net revenue for the three months ended September 26, 2025, was $142,382, a decrease of 27.2% compared to $195,756 for the same period in 2024[30] - For the nine months ended September 26, 2025, total net revenue reached $413,544 million, compared to $456,556 million for the same period in 2024[45] - The company experienced a decrease in net revenue from $195,756 million in September 2024 to $142,382 million in September 2025[44] Segment Performance - Broadband segment revenue was $90.5 million, down 37.7% from $145.3 million in the prior year period; Video segment revenue increased to $51.9 million from $50.4 million[6] - The company reported a gross margin of 47.3% for the Broadband segment and 66.7% for the Video segment in the latest quarter[39] - Adjusted EBITDA for the Broadband segment for the three months ended September 26, 2025, was $14.184 million, with a revenue of $90.492 million, resulting in an adjusted EBITDA margin of 15.7%[49] - For the Video segment during the same period, adjusted EBITDA was $7.731 million, with revenue of $51.890 million, leading to an adjusted EBITDA margin of 14.9%[49] Profitability - GAAP net income was $2.7 million, compared to $21.7 million in Q3 2024, representing a decline of 87.6%[6] - Non-GAAP net income was $14.1 million, down from $29.9 million in the prior year period, a decrease of 52.8%[6] - The diluted net income per share for the three months ended September 26, 2025, was $0.02 (GAAP) and $0.12 (Non-GAAP)[42] - The company’s total net income for the nine months ended September 26, 2025, was $11,505 million (GAAP) and $37,835 million (Non-GAAP)[45] Cash and Assets - Cash and cash equivalents increased to $127.4 million from $58.2 million in the prior year period[6] - Cash and cash equivalents at the end of the period were $127,376, an increase from $101,457 at the end of December 31, 2024[28] - Total assets decreased to $758,595 as of September 26, 2025, from $796,506 as of December 31, 2024, reflecting a decline of 4.8%[28] - Total liabilities decreased to $315,584 as of September 26, 2025, from $331,248 as of December 31, 2024, a reduction of 4.7%[28] Operating Expenses - The company reported a total operating expense of $67,310 for the three months ended September 26, 2025, compared to $69,308 for the same period in 2024, a decrease of 2.9%[30] - Research and development expenses for the three months ended September 26, 2025, were $29,699, slightly down from $30,073 in the same period in 2024[30] - The company reported stock-based compensation of $23.486 million for the nine months ended September 26, 2025[50] Future Outlook - The company anticipates increased Broadband revenue growth momentum in 2026 due to Unified DOCSIS 4.0 ramp readiness and large customer deployment plans[3] - The company provided Q4 2025 financial guidance with GAAP revenue expected between $133 million and $147 million, and non-GAAP revenue expected to be in the same range[52] - The projected non-GAAP net income per share for Q4 2025 is estimated to be between $0.06 and $0.12[52] Backlog and Deferred Revenue - Backlog and deferred revenue stood at $494.5 million, down from $584.7 million in Q3 2024[8] Share Repurchase - The company repurchased approximately 1.8 million shares of common stock for $15.7 million during the quarter[6] EBITDA Performance - Non-GAAP adjusted EBITDA for Q3 2025 was $21.9 million, significantly lower than $43.4 million in Q3 2024[8] - Total consolidated segment adjusted EBITDA for the nine months ended September 26, 2025, was $60.018 million, compared to $63.553 million for the same period in the previous year[50] - The Adjusted EBITDA margin for the nine months ended September 27, 2024, was 20.2% for the Broadband segment, while the Video segment reported a negative margin of (0.5)%[49]