Harmonic Announces First Quarter 2025 Results

Core Insights - Harmonic Inc. reported strong financial performance in Q1 2025, with revenue and profitability exceeding expectations, particularly in the Video segment [1][2] - The company generated robust cash flow, ending the quarter with a cash balance of $149 million, significantly higher than the previous year [1][6] - Harmonic's CEO expressed confidence in the company's strategy and long-term growth prospects despite potential macroeconomic uncertainties [2] Financial Highlights - Q1 2025 net revenue reached $222.2 million, up from $122.1 million in Q1 2024, marking a 82.2% increase [4][6] - Net income for Q1 2025 was $38.1 million, compared to a net loss of $8.1 million in the prior year [4][6] - Adjusted EBITDA for the quarter was $21.1 million, a significant increase from $4.1 million in Q1 2024 [4][6] Segment Performance - The Broadband segment generated revenue of $84.9 million, up from $78.9 million in the prior year, with a Non-GAAP gross margin of 55.5% compared to 47.5% [6][31] - The Video segment reported revenue of $48.3 million, an increase from $43.2 million in the previous year, with a Non-GAAP gross margin of 66.4% compared to 61.6% [6][31] Operational Developments - Harmonic successfully deployed its cOSTM solution with 129 customers, serving 33.9 million cable modems [6] - The company won seven new broadband customers, including two Tier 1 US customers and three fiber customers [6] - Major innovations in the Broadband segment are now in production, enhancing subscriber satisfaction and reducing operational costs [6] Market Position - Harmonic continues to expand its market share in both Broadband and Video sectors, driven by strong execution and a large backlog of orders [2][6] - The company highlighted its advancements in hybrid cloud and AI-powered solutions for broadcasters at the 2025 NAB Show [6]