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]

Core Insights - Harmonic Inc. reported third-quarter results for 2025 that exceeded expectations in both revenue and profitability for its Broadband and Video segments [2][4] - The company anticipates increased revenue growth momentum in Broadband for 2026, driven by Unified DOCSIS 4.0 readiness and large customer deployment plans [2] Financial Highlights - Net revenue for Q3 2025 was $142.4 million, a decrease from $195.8 million in Q3 2024 [7] - Net income for Q3 2025 was $2.7 million, down from $21.7 million in the same quarter last year [7] - Adjusted EBITDA for Q3 2025 was $21.9 million, compared to $43.4 million in Q3 2024 [7] - Cash and cash equivalents as of the end of Q3 2025 were $127.4 million, up from $58.2 million a year earlier [7] Segment Performance - Broadband segment revenue for Q3 2025 was $90.5 million, down from $145.3 million in Q3 2024 [7] - Video segment revenue for Q3 2025 was $51.9 million, slightly up from $50.4 million in Q3 2024 [7] - The gross margin for the Broadband segment was 47.3%, down from 48.3% in the prior year, while the Video segment's gross margin was 66.7%, down from 69.0% [7] Business Developments - Harmonic commercially deployed its cOS solution with 142 customers, serving 37.6 million cable modems [7] - The company won six new broadband customers during the quarter, including two fiber customers and one international Tier 1 [7] - Comcast is leveraging Harmonic's fiber-to-the-home solutions, planning to expand to over 1.2 million new locations in 2025 [7] - An expanded partnership with Spectrum (Charter) was announced, focusing on cOS, DOCSIS 4.0 Unified RPDs, and advanced operational tools [7] Future Guidance - For Q4 2025, the company projects total GAAP net revenue between $133 million and $147 million, with a gross margin of approximately 54.5% [5][6] - The anticipated tax rate for Q4 2025 is 45% [5]