HARMONIC INC. (HLIT) Earnings History

HARMONIC INC. - Q4 FY2025 EarningsMissed

Filed at: Feb 19, 2026, 4:15 PM EST|Read from source

EXECUTIVE SUMMARY

Harmonic Inc. ended fiscal year 2025 with a strong Q4 driven by record Broadband bookings, leading to a significant increase in backlog and improved visibility for 2026. The company is preparing for the sale of its Video business, which is proceeding as anticipated and expected to close in the first half of 2026.

POSITIVE HIGHLIGHTS

  • •

    Record quarterly Broadband bookings drove a 3.5 book-to-bill ratio in Q4.

    positive
  • •

    Backlog and deferred revenue increased 73% year-over-year to $573.8 million.

    positive
  • •

    Cash and cash equivalents increased to $124.1 million at year-end 2025, up from $101.5 million in the prior year.

    positive
  • •

    The Video business, presented as discontinued operations, exceeded revenue and profitability expectations for the quarter.

    positive

CONCERNS & RISKS

  • •

    Net revenue for Q4 2025 was $98.2 million, a significant decrease from $171.0 million in Q4 2024.

    negative
  • •

    Net loss for Q4 2025 was $54.8 million, compared to a net income of $38.1 million in Q4 2024.

    negative
  • •

    Diluted loss per share was $0.49 in Q4 2025, a substantial decline from diluted earnings per share of $0.32 in Q4 2024.

    negative
  • •

    Adjusted EBITDA for Q4 2025 was $12.1 million, a sharp decrease from $65.7 million in Q4 2024.

    negative
  • •

    The company reported a net loss of $43.3 million for FY 2025, compared to a net income of $39.2 million for FY 2024.

    negative
  • •

    Diluted loss per share for FY 2025 was $0.38, compared to diluted earnings per share of $0.33 for FY 2024.

    negative

FINANCIAL METRICS

Revenue
Quarterly
$98.20M
-42.5%
Prior year: $171.03M
Annual (YTD)
$360.52M
N/A
Prior year: $488.20M
Net Income
Quarterly
$-54.81M
-243.7%
Prior year: $38.12M
Annual (YTD)
$-43.31M
N/A
Prior year: $39.22M
EPS (Diluted)
Quarterly
$-0.49
-253.1%
Prior year: $0.32
Operating Income
Quarterly
$3.77M
-92.4%
Prior year: $49.57M
Annual (YTD)
$14.08M
N/A
Prior year: $74.73M
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Gross Margin
Current Quarter
47.0%
Prior Year
52.7%
YoY Change
-571 bps
Operating Margin
Current Quarter
3.8%
Prior Year
29.0%
YoY Change
-2516 bps
Net Margin
Current Quarter
-55.8%
Prior Year
22.3%
YoY Change
-7810 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
Broadband
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Broadband
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY2026

revenue
$440000.0B—$480000.0B
Mid-point: $460000.0B
gross_margin_pct
50.5%—52.5%
Mid-point: 51.5%
income_from_operations
46,000,000—71,000,000
Mid-point: 58,500,000
net_income_per_share
0.27—0.43
Mid-point: 0.35

Q1 2026

revenue
$100000.0B—$105000.0B
Mid-point: $102500.0B
gross_margin_pct
53.0%—54.3%
Mid-point: 53.6%
income_from_operations
7,000,000—9,000,000
Mid-point: 8,000,000
net_income_per_share
0.04—0.04
Mid-point: 0.04

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Goodwill impairment on Video business
Included in Net income (loss) per share calculation.
+$57.5M
$0.49 per share
FY 2025
Goodwill impairment on Video business
Included in Net income (loss) per share calculation.
+$57.5M
$0.49 per share
Q4 2025
Stranded costs associated with the Video divestiture
Included in Non-GAAP adjustments.
+$3M
FY 2025
Stranded costs associated with the Video divestiture
Included in Non-GAAP adjustments.
+$9M
Total Impact
+$127M$-0.98 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Ended the year with extremely strong quarterly bookings across our Broadband business.

— HARMONIC INC., Q4 FY2025 2025 Earnings Call

These bookings drove a 3.5 book-to-bill for the quarter and a substantial year-over-year increase in backlog, which significantly improves our visibility for 2026.

— HARMONIC INC., Q4 FY2025 2025 Earnings Call

We expect this momentum, combined with Unified DOCSIS 4.0 ramps, large customer deployment plans and Rest-of-World accelerated adoption, will contribute to strong Broadband revenue growth this year.

— HARMONIC INC., Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Cable Modems Served
41.3M
cable modems
Customers COS Solution
146
customers

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.