Harmonic Announces Fourth Quarter and Fiscal 2025 Results

Core Insights - Harmonic Inc. reported strong quarterly bookings in its Broadband business, achieving a book-to-bill ratio of 3.5 in Q4 2025, indicating robust demand and a significant year-over-year increase in backlog, which enhances visibility for 2026 [1][2] - The company anticipates strong revenue growth in Broadband driven by Unified DOCSIS 4.0 deployments and large customer plans, while the Video business, now classified as discontinued operations, exceeded revenue and profitability expectations [1][2] - Harmonic is on track to complete the sale of its Video business for $145 million in cash, expected to close in Q2 2026, which will support its capital allocation priorities [1][2] Financial Highlights - Total net revenue for Q4 2025 was $157.3 million, with a net loss per share of $0.49 [1][2] - For the Broadband segment, Q4 2025 net revenue was $98.2 million, with a net income of $0.2 million, and adjusted EBITDA of $12.1 million [1][2] - The company repurchased approximately 1.3 million shares for $13.3 million in Q4 2025, and cash reserves increased to $124.1 million from $101.5 million year-over-year [1][2] Business Operations - The backlog and deferred revenue reached $573.8 million, a 73% increase from $332.3 million the previous year, with a current portion of $307 million, reflecting a 110% year-over-year growth [1][2] - Harmonic achieved record bookings in the Rest-of-World segment in Q4, indicating potential for continued revenue growth in 2026 and beyond [1][2] - The company has signed several multi-year contracts, showcasing long-term commitment and revenue stability [1][2] Financial Guidance - For Q1 2026, Harmonic projects GAAP net revenue between $100 million and $105 million, with a gross margin of 53.0% to 54.3% [2][7] - For the full year 2026, the company anticipates GAAP net revenue between $440 million and $480 million, with a gross margin of 50.5% to 52.5% [2][7] - Non-GAAP guidance for Q1 2026 includes a net income per share estimate of $0.11 to $0.12, while for FY 2026, it is projected at $0.46 to $0.63 [2][7]