Harmonic(HLIT) - 2025 Q4 - Annual Results

Financial Performance - Harmonic reported Q4 2025 net revenue of $157.3 million, with a full-year revenue of $570.8 million[4]. - Total revenue for the year ended December 31, 2025, was $360.52 million, down 26.2% from $488.20 million in 2024[38]. - Total GAAP revenue for the twelve months ended December 31, 2024, was $488.2 million, with a gross profit of $240.1 million, resulting in a gross margin of 49.2%[45]. - The company reported a basic loss per share of $0.49 for Q4 2025, compared to earnings of $0.33 per share in Q4 2024[32]. - For the year ended December 31, 2025, Harmonic Inc. reported a net loss of $43.31 million compared to a net income of $39.22 million in 2024[34]. - The company incurred $57.52 million in goodwill impairment charges, significantly impacting net income[34]. - Diluted earnings per share (EPS) for the year was $0.01 under GAAP and $0.23 under non-GAAP[43]. - For the three months ended December 31, 2025, GAAP income from continuing operations was $219, with a net income loss of $54.8 million[48]. - Non-GAAP income for the three months ended December 31, 2025, was $52.432 million, which is 23.6% of total revenue[48]. Revenue Segmentation - The Americas contributed $320.57 million, accounting for 89% of total revenue, while EMEA and APAC contributed $33.89 million (9%) and $6.06 million (2%), respectively[38]. - The top two customers represented 62% of total revenue, down from 81% in the previous year, indicating a diversification in the customer base[38]. Bookings and Backlog - The company achieved a record quarterly Broadband bookings of $346.9 million, resulting in a book-to-bill ratio of 3.5 for Q4 2025[3][8]. - Backlog and deferred revenue increased by 73% year-over-year to $573.8 million, up from $332.3 million[4][6]. Cash and Liquidity - Harmonic's cash position improved to $124.1 million as of December 31, 2025, compared to $101.5 million the previous year[6]. - Cash and cash equivalents increased to $124.46 million from $101.79 million in 2024, reflecting a strong liquidity position[34]. - The company generated net cash provided by operating activities of $107.97 million, an increase of 74.5% from $61.92 million in the previous year[34]. Expenses - Research and development expenses for the year ended December 31, 2025, were $74.958 million, an increase of 3.3% from $72.574 million in 2024[32]. - Selling, general and administrative expenses for the year ended December 31, 2025, were $82.755 million, up from $79.169 million in 2024[32]. - The total operating expense for the twelve months ended December 31, 2024, was $165.373 million, which is 33.9% of total revenue[45]. - The company experienced a significant impairment of goodwill, with charges of $57.521 million for the three months ended December 31, 2025[48]. Future Guidance - Q1 2026 GAAP financial guidance estimates net revenue between $100 million and $105 million, with a gross margin of 53.0% to 54.3%[9]. - For FY 2026, Harmonic projects net revenue between $440 million and $480 million, with a gross margin of 50.5% to 52.5%[11]. - Q1 2026 GAAP revenue guidance is projected to be between $100 million and $105 million, with Non-GAAP revenue expected to be in the same range[50]. - FY26 GAAP revenue guidance is estimated to be between $440 million and $480 million, while Non-GAAP revenue is also projected to be in the same range[50]. - Q1 2026 GAAP gross profit is expected to be between $53 million and $57 million, with Non-GAAP gross profit projected between $54 million and $58 million[50]. - FY26 GAAP gross profit guidance is between $222 million and $252 million, while Non-GAAP gross profit is expected to be between $224 million and $254 million[50]. - Q1 2026 GAAP diluted earnings per share is projected to be between $0.04 and $0.04, while Non-GAAP diluted earnings per share is expected to be between $0.11 and $0.12[50]. - FY26 GAAP diluted earnings per share guidance is estimated to be between $0.27 and $0.43, with Non-GAAP diluted earnings per share projected between $0.46 and $0.63[50]. - Total operating expenses for Q1 2026 are expected to be between $46 million and $48 million, while Non-GAAP operating expenses are projected to be between $36 million and $38 million[50]. - Total operating expenses for FY26 are estimated to be between $176 million and $181 million, with Non-GAAP operating expenses expected to be between $150 million and $155 million[50]. Adjusted Metrics - Adjusted EBITDA for Q4 2025 was $12.1 million, while the full-year adjusted EBITDA was $47.3 million[4][8]. - Adjusted EBITDA for the twelve months ended December 31, 2025, was $47.288 million, with total revenue of $360.523 million, resulting in an adjusted EBITDA margin of 13.1%[49]. - Stock-based compensation for the twelve months ended December 31, 2025, amounted to $21.641 million, contributing to total adjustments of $97.191 million[48]. - Harmonic Inc. reported a significant increase in stock-based compensation expenses, totaling $31.88 million in 2025 compared to $28.07 million in 2024[34].