Harmonic Announces Fourth Quarter and Fiscal 2025 Results

Rhea-AI Impact

(Moderate)

Rhea-AI Sentiment

(Negative)

Rhea-AI Summary

Harmonic (Nasdaq: HLIT) reported Q4 and FY2025 results with total net revenue $157.3M (Q4) and continuing Broadband revenue of $98.2M (Q4). Backlog and deferred revenue rose to $573.8M (+73% YoY). Cash was $124.1M; repurchased 1.3M shares for $13.3M. The Video business is held-for-sale for $145M and expected to close in H1 2026. Company issued FY2026 Broadband guidance of $440–$480M revenue and GAAP EPS $0.27–$0.43.

Positive

Backlog +73%: $573.8M at quarter end
Record bookings: $346.9M in Q4, driving 3.5 book-to-bill
FY2026 revenue guidance: $440–$480M for Broadband
Cash increased: $124.1M vs $101.5M year-ago
Share buyback: ~1.3M shares repurchased for $13.3M

Negative

Goodwill impairment: $57.5M related to Video business
Stranded costs: approximately $9.0M recorded in FY2025
Video divestiture pending: sale subject to customary closing conditions

Market Reaction

+5.78% $11.35

15m delay 4 alerts

+5.78% Since News

$11.35 Last Price

$10.45 $11.81 Day Range

+$66M Valuation Impact

$1.20B Market Cap

0.0x Rel. Volume

Following this news, HLIT has gained 5.78%, reflecting a notable positive market reaction. Our momentum scanner has triggered 4 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $11.35. This price movement has added approximately $66M to the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Q4 2025 net revenue: $157.3M FY 2025 net revenue: $570.8M Broadband Q4 2025 revenue: $98.2M +5 more

8 metrics

Q4 2025 net revenue $157.3M Total company GAAP net revenue for Q4 2025

FY 2025 net revenue $570.8M Total company GAAP net revenue for fiscal 2025

Broadband Q4 2025 revenue $98.2M Continuing operations GAAP net revenue for Broadband Q4 2025

Backlog & deferred revenue $573.8M Backlog and deferred revenue at Q4 2025 end, up 73% year over year

Q4 2025 bookings $346.9M Bookings for the quarter from continuing operations

Cash and equivalents $124.1M Cash and cash equivalents as of December 31, 2025

Share repurchases Q4 1.3M shares / $13.3M Common stock repurchased in Q4 2025

Video business sale price $145M Cash purchase price in Put Option Agreement with Leone Media (MediaKind)

Market Reality Check

Price: $10.56 Vol: Volume 440,318 is below t...

low vol

$10.56 Last Close

Volume Volume 440,318 is below the 20-day average of 848,074, indicating subdued trading ahead of the release. low

Technical Shares at $10.56 are trading above the 200-day MA of $9.71 and about 8% below the 52-week high of $11.49.

Peers on Argus

Pre-news, HLIT was modestly higher while peers showed mixed moves: TSAT, DGII, A...

1 Up 1 Down

Pre-news, HLIT was modestly higher while peers showed mixed moves: TSAT, DGII, ADTN and NTGR were up (to about 0.69%), while AAOI was down about 2.03%. Momentum data shows ONDS up and AAOI down, reinforcing a stock-specific rather than sector-wide setup.

Historical Context

5 past events · Latest: Jan 20 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 20	Earnings date notice	Neutral	+3.0%	Announced timing of Q4 and FY 2025 earnings and webcast details.
Dec 16	Customer deployment win	Positive	-0.4%	Czech TV adopted Harmonic XOS and EyeQ for upgraded streaming workflow.
Dec 08	Video sale details	Positive	+6.4%	MediaKind detailed acquisition of Harmonic’s Video business for about $145M.
Dec 08	Video divestiture plan	Positive	+6.4%	Harmonic announced pending $145M sale of Video business and refocus on Broadband.
Dec 03	Broadband expansion	Positive	+0.9%	Reported 20 broadband deployments in Europe using cOS and network devices.

Pattern Detected

Strategic and transaction-related announcements have often seen positive price alignment, while at least one operational win drew a slightly negative reaction.

Recent Company History

Over the past few months, Harmonic has focused on reshaping its business and expanding broadband. In December 2025, it announced a pending sale of its Video business to MediaKind for about $145M, with both sides highlighting the combined streaming-infrastructure opportunity. A broadband milestone with 20 European deployments and a Czech TV streaming upgrade underscored product traction. A Jan 20, 2026 notice set expectations for today’s Q4 and FY 2025 results and the Video divestiture accounting.

Market Pulse Summary

The stock is up +5.8% following this news. A strong positive reaction aligns with Harmonic’s emphasi...

Analysis

The stock is up +5.8% following this news. A strong positive reaction aligns with Harmonic’s emphasis on Broadband growth and visibility. Q4 bookings of $346.9M and backlog plus deferred revenue of $573.8M underscored demand, while the pending $145M Video divestiture clarified strategic focus. Investors watching this type of move would consider whether elevated expectations for 2026 guidance and execution on Unified DOCSIS 4.0 ramps remained fully supported by future updates.

Key Terms

book-to-bill, discontinued operations, adjusted EBITDA, put option agreement, +4 more

8 terms

book-to-bill financial

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

The book-to-bill ratio compares new orders a company has received (bookings) to the products or services it has invoiced or shipped (billings) over the same period. It matters to investors because a ratio above 1 means demand is outpacing fulfillment and the company may grow revenue or build backlog, while a ratio below 1 suggests slowing demand and possible future revenue weakness — think of it as new customer orders versus what the company actually sold.

discontinued operations financial

"the Video business, presented as discontinued operations, exceeded both revenue"

Discontinued operations are parts of a company that it has decided to sell or shut down, and no longer plans to run in the future. This matters to investors because it helps them understand which parts of the business are ongoing and which are being phased out, providing a clearer picture of the company’s current performance and future prospects. Think of it like a store closing a department—it no longer contributes to sales or profits.

adjusted EBITDA financial

"Adjusted EBITDA (2) (3) | | n/a | | n/a | | $12.1 | | $47.3"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

put option agreement financial

"entered into a Put Option Agreement to sell its Video business"

A put option agreement is a contract that gives its holder the right to sell a specified number of shares at an agreed price within a set period. Think of it like an insurance policy that guarantees you can offload stock at a known price if the market falls; for investors it provides downside protection but can also create obligations for the counterparty (often the company) to buy back shares, which can affect cash flows and ownership stakes.

held-for-sale regulatory

"Video Business are presented as held-for-sale and discontinued operations"

An asset classified as "held-for-sale" is one a company has decided to sell rather than keep using, and expects to complete the sale within a short time frame. Investors care because the asset is removed from normal operations and is reported at the lower of its book value or estimated sale value, which can change the balance sheet, signal a shift in strategy, and affect expected cash proceeds—think of it as marking an item in a garage for immediate sale rather than keeping it in the attic.

non-GAAP financial

"GAAP | | Non-GAAP Q4 2025 | | FY 2025 | | Q4 2025"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

gross margin % financial

"Gross margin % (2) | | 53.0 % | | 54.3 %"

Gross margin percentage shows how much money a company keeps from sales after paying for the cost of producing its goods or services. It is calculated by dividing the profit remaining after production costs by total sales, then expressing it as a percentage. A higher gross margin indicates a company is more efficient at turning sales into profit, which can be a sign of strong pricing power or cost control.

diluted shares financial

"Shares (4) | | 111.4 | | 111.4"

Diluted shares are the total number of company shares that would exist if all potential shares — such as employee stock options, warrants, and convertible bonds or preferred stock — were turned into common stock. Investors care because using this larger share count gives a more realistic picture of per-share value and ownership: it’s like dividing the same pie among more people, which lowers earnings per share and reduces each owner’s slice.

AI-generated analysis. Not financial advice.

02/19/2026 - 04:05 PM

Record quarterly Broadband bookings drove a 3.5 book-to-bill in Q4
Previously announced sale of Video business proceeding as anticipated

SAN JOSE, Calif., Feb. 19, 2026 /PRNewswire/ -- Harmonic Inc. (Nasdaq: HLIT) today announced its unaudited results for the fourth quarter and fiscal year ended December 31, 2025.

"We ended the year with extremely strong quarterly bookings across our Broadband business," said Nimrod Ben-Natan, president and chief executive officer of Harmonic. "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. 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. Furthermore, the Video business, presented as discontinued operations, exceeded both revenue and profitability expectations for the quarter. The planned sale of this business remains on track to close in the second quarter, which will further support our capital allocation priorities."

Financial and Business Highlights

Total Company Financial Results
	GAAP						Non-GAAP
	Q4 2025			FY 2025			Q4 2025		FY 2025
	(Unaudited, in millions, except per share data)
Net revenue	$	157.3		$	570.8			n/a		n/a
Net income (loss) per share	$	(0.49)	⁽¹⁾	$	(0.38)	⁽¹⁾	$	0.14	$	0.47

Continuing Operations Financial Results - Broadband
	GAAP						Non-GAAP
	Q4 2025			FY 2025			Q4 2025		FY 2025
	(Unaudited, in millions, except per share data)
Net revenue	$	98.2		$	360.5			n/a		n/a
Net income ⁽²⁾	$	0.2		$	1.2		$	7.2	$	26.4
Adjusted EBITDA ^{(2) (3)}		n/a			n/a		$	12.1	$	47.3

Backlog and deferred revenue of $573.8 million, an increase of 73% compared to $332.3 million last year
Cash: $124.1 million at December 31, 2025, compared to $101.5 million last year
Repurchased approximately 1.3 million shares of common stock for $13.3 million in Q4

Continuing Operations Business Highlights - Broadband

Commercially deployed our cOS™ solution with 146 customers, serving 41.3 million cable modems
Signed several multi-year contracts, demonstrating long-term commitment and revenue resiliency
Record Rest-of-World bookings in Q4, which should drive continued revenue growth in 2026 and beyond
Strong fiber revenue growth in Q4 with multiple customers, including iZZi in Mexico
Current portion of backlog and deferred revenue of $307 million, an increase of 110% over last year

_______________

(1) Includes goodwill impairment on Video business of $57.5 million.

(2) Includes approximately $3.0 million and $9.0 million of stranded costs associated with the Video divestiture for Q4 and FY 2025, respectively.

(3) Adjusted EBITDA is a Non-GAAP financial measure. Refer to reconciliation below for a reconciliation to net income, the most comparable GAAP measure.

Discontinued Operations - Video Business

The results of the Company's Video Business are presented as held-for-sale and discontinued operations in its Consolidated Statements of Operations and Consolidated Balance Sheets for all periods presented in this press release. As previously announced, on December 8, 2025, the Company entered into a Put Option Agreement to sell its Video business to Leone Media Inc. (d/b/a MediaKind) (the "Buyer") for a purchase price of $145 million in cash (the "Disposition"). The purchase price is subject to a potential adjustment based on the amount, on the date the Disposition is consummated, of net working capital of the Video business, the cash and debt of the entities to be sold in the Disposition, as well as the amount of specified selling expenses. As such, and unless stated otherwise, all results presented in the following table reflect those of continuing operations. The Disposition, which is expected to close in the first half of 2026, is subject to the satisfaction of customary closing conditions, including the completion of the required consultation process with the French employee works council.

Select Financial Information from Continuing Operations

	GAAP						Non-GAAP
*Key Financial Results*	Q4 2025		Q3 2025		Q4 2024		Q4 2025		Q3 2025		Q4 2024
	(Unaudited, in millions, except per share data)
Net revenue	$	98.2	$	90.5	$	171.0		n/a		n/a		n/a
Net income (loss)	$	0.2	$	(0.5)	$	38.2	$	7.2	$	7.5	$	48.0
Net income (loss) per share	$	0.00	$	(0.00)	$	0.32	$	0.06	$	0.07	$	0.41

*Other Financial Information*	Q4 2025		Q3 2025		Q4 2024
	(Unaudited, in millions)
Adjusted EBITDA for the quarter ⁽¹⁾	$	12.1	$	13.1	$	65.7
Bookings for the quarter	$	346.9	$	97.4	$	87.7
Backlog and deferred revenue as of quarter end	$	573.8	$	338.0	$	332.3
Cash and cash equivalents as of quarter end	$	124.1	$	127.4	$	101.5

Explanations regarding our use of Non-GAAP financial measures and related definitions, and reconciliations of our GAAP and Non-GAAP measures, are provided in the sections below entitled "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations."

Financial Guidance for Continuing Operations - Broadband

	Q1 2026 GAAP Financial Guidance
(Unaudited, in millions, except percentages and per share data)	Low		High
Net revenue	$	100	$	105
Gross margin % ⁽²⁾		53.0 %		54.3 %
Income from operations ⁽³⁾	$	7	$	9
Tax rate		27.3 %		27.3 %
Net income per share	$	0.04	$	0.04
Shares ⁽⁴⁾		111.4		111.4

	2026 GAAP Financial Guidance
(Unaudited, in millions, except percentages and per share data)	Low		High
Net revenue	$	440	$	480
Gross margin % ⁽²⁾		50.5 %		52.5 %
Income from operations ⁽³⁾	$	46	$	71
Tax rate		27.3 %		27.3 %
Net income per share	$	0.27	$	0.43
Shares ⁽⁴⁾		111.7		111.7

_______________

(1) Adjusted EBITDA is a Non-GAAP financial measure. Refer to reconciliation below for a reconciliation to net income, the most comparable GAAP measure.

(2) Includes approximately $1.0 million and $4.0 million of estimated tariff impacts for Q1 and FY 2026, respectively.

(3) Includes approximately $2.0 million and $10.0 million of stranded costs associated with Video divestiture for Q1 and FY 2026, respectively.

(4) Diluted shares assumes stock price at $10.07 (Q4 2025 average price).

Financial Guidance for Continuing Operations - Broadband

	Q1 2026 Non-GAAP Financial Guidance ⁽¹⁾
(Unaudited, in millions, except percentages and per share data)	Low		High
Gross margin %		54.0 %		55.0 %
Gross profit ⁽²⁾	$	54	$	58
Income from operations ⁽³⁾	$	18	$	20
Tax rate		24.5 %		24.5 %
Net income per share	$	0.11	$	0.12
Shares ⁽⁴⁾		111.4		111.4

	2026 Non-GAAP Financial Guidance ⁽¹⁾
(Unaudited, in millions, except percentages and per share data)	Low		High
Gross margin %		51.0 %		53.0 %
Gross profit ⁽²⁾	$	224	$	254
Income from operations ⁽³⁾	$	74	$	99
Tax rate		24.5 %		24.5 %
Net income per share	$	0.46	$	0.63
Shares ⁽⁴⁾		111.7		111.7

_______________

(1) Refer to "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations on Financial Guidance" below. Components may not sum to total due to rounding.

(2) Includes approximately $1.0 million and $4.0 million of estimated tariff impacts for Q1 and FY 2026, respectively.

(3) Includes approximately $2.0 million and $10.0 million of stranded costs associated with Video divestiture for Q1 and FY 2026, respectively.

(4) Diluted shares assumes stock price at $10.07 (Q4 2025 average price).

Conference Call Information

Harmonic will host a conference call to discuss its financial results at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, February 19, 2026. The live webcast will be available on the Harmonic Investor Relations website at http://investor.harmonicinc.com. To participate via telephone, please register in advance using this link, https://register-conf.media-server.com/register/BI1e7644dc1c1b4189836e0b9cc656d1e3. A replay will be available after 5:00 p.m. PT on the same website.

About Harmonic Inc.

Harmonic (NASDAQ: HLIT), the worldwide leader in virtualized broadband and video delivery solutions, enables media companies and service providers to deliver ultra-high-quality video streaming and broadcast services to consumers globally. The company revolutionized broadband networking via the industry's first virtualized broadband solution, enabling operators to more flexibly deploy gigabit internet service to consumers' homes and mobile devices. Whether simplifying OTT video delivery via innovative cloud and software platforms, or powering the delivery of gigabit internet services, Harmonic is changing the way media companies and service providers monetize live and on-demand content on every screen. More information is available at www.harmonicinc.com.

Legal Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements related to the timing of the pending sale of our Video business and anticipated benefits of the proposed transaction; Broadband revenue growth from anticipated customer purchases and deployments of our Unified DOCSIS 4.0 and other solutions; and our expectations regarding: net revenue, gross margins, operating expenses, operating income (loss), Adjusted EBITDA, tax expense and tax rate, and net income (loss) per diluted share. Our expectations regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, but are not limited to, in no particular order, the following: the possibility that the pending sale of the Video business does not close due to regulatory approvals not being obtained or other closing conditions not being fulfilled; the pending transaction encounters unanticipated delays or is postponed or cancelled due to a material adverse event or change; anticipated benefits for Harmonic as a result of the pending transaction do not fully materialize; customer concentration and consolidation; loss of one or more key customers; delays or decreases in capital spending in the cable or telco industries; the possibility that our products will not generate sales that are commensurate with our expectations or that our cost of revenue or operating expenses may exceed our expectations; the market and technology trends underlying our Broadband business will not continue to develop in their current direction or pace; the impact of tariffs and general economic conditions on our sales and operations; the mix of products and services sold in various geographies and the effect it has on gross margins; our ability to develop new and enhanced products in a timely manner and market acceptance of our new or existing products; risks associated with our international operations; exchange rate fluctuations of the currencies in which we conduct business; risks associated with our cOS™ product solutions; dependence on various broadband industry trends; inventory management; the lack of timely availability or the impact of increases in the prices of parts or raw materials necessary to produce our products; the effect of competition, on both revenue and gross margins; difficulties associated with rapid technological changes in our markets; risks associated with unpredictable sales cycles; our dependence on contract manufacturers and sole or limited source suppliers; stock repurchases may not be conducted in the timeframe or in the manner we expect, or at all; and the impact on our business of natural disasters. In some cases, you can identify forward-looking statements by terminology such as, "may," "will," "should," "expects," "plans," "anticipates," "could," "believes," "intends," "estimates," "predicts," "potential," or "continue" or the negative of these terms or other comparable terminology. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Harmonic's filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K for the year ended December 31, 2024, our most recent Quarterly Report on Form 10-Q and our Current Reports on Form 8-K. The forward-looking statements in this press release are based on information available to the Company as of the date hereof, and Harmonic disclaims any obligation to update any forward-looking statements.

Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP" or referred to herein as "reported"). However, management believes that certain Non-GAAP financial measures provide management and other users with additional meaningful financial information that should be considered when assessing our ongoing performance. Our management regularly uses our supplemental Non-GAAP financial measures internally to understand, manage and evaluate our business, establish operating budgets, set internal measurement targets and make operating decisions.

These Non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from Non-GAAP measures used by other companies. In addition, these Non-GAAP measures are not based on any comprehensive set of accounting rules or principles. The Company believes that Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Harmonic's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Harmonic's results of operations in conjunction with the corresponding GAAP measures.

The Company believes that the presentation of Non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provide useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the Company's reported results prepared in accordance with GAAP.

The Non-GAAP measures presented here are: Gross profit, operating expenses, income (loss) from operations, non-operating expenses and net income (loss), Adjusted EBITDA (including those amounts as a percentage of revenue) and net income (loss) per diluted share. The presentation of Non-GAAP information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP, and is not necessarily comparable to Non-GAAP results published by other companies. A reconciliation of the historical Non-GAAP financial measures discussed in this press release to the most directly comparable historical GAAP financial measures is included with the financial statements provided with this press release. The Non-GAAP adjustments described below have historically been excluded from our GAAP financial measures.

Our Non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

Stock-based compensation - Although stock-based compensation is a key incentive offered to our employees, we continue to evaluate our business performance excluding stock-based compensation expenses. We believe that management is limited in its ability to project the impact stock-based compensation would have on our operating results. In addition, for comparability purposes, we believe it is useful to provide a Non-GAAP financial measure that excludes stock-based compensation in order to better understand the long-term performance of our core business and to facilitate the comparison of our results to the results of our peer companies.

Restructuring and related charges - Harmonic from time to time incurs restructuring charges which primarily consist of employee severance, one-time termination benefits related to the reduction of its workforce, and other costs. These charges are associated with material business shifts. We exclude these items because we do not believe they are reflective of our ongoing long-term business and operating results.

Non-cash interest expense related to convertible notes - We record the amortization of issuance costs as non-cash interest expense. We believe that excluding these costs provides meaningful supplemental information regarding operational performance and liquidity, along with enhancing investors' ability to view the Company's results from management's perspective. In addition, we believe excluding these costs from the Non-GAAP measures facilitates comparisons to our historical operating results and comparisons to peer company operating results.

Depreciation - Depreciation expense is excluded from Adjusted EBITDA as this is a non-cash item unrelated to the ordinary course of our business and not reflective of our underlying business performance.

Non-recurring advisory fees - There were non-recurring costs that we excluded from Non-GAAP results relating to professional accounting, tax and legal fees associated with strategic corporate initiatives.

Asset impairment and related charges - We exclude impairment and related charges due to the nature of such expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of impairments of goodwill, fixed assets, right-of-use assets and related leasehold improvements, and other unrecoverable facility costs due to the intended change in use of certain leased space.

Discrete tax items and tax effect of Non-GAAP adjustments - The income tax effect of Non-GAAP adjustments relates to the tax effect of the adjustments that we incorporate into Non-GAAP financial measures in order to provide a more meaningful measure of Non-GAAP net income. It also includes a non-cash adjustment related to the method change for capitalization of research and development expenses under Section 174 of the Internal Revenue Code, which reduced our foreign-derived intangible income (FDII) tax benefits. This non-recurring adjustment has been excluded from the Company's non-GAAP tax rate and non-GAAP financial measures, as management believes exclusion of this item provides more meaningful period-to-period comparisons of ongoing operating performance

Harmonic Inc. Preliminary Condensed Consolidated Balance Sheets (Unaudited, in thousands, except par value)
	As of December 31,
		2025		2024
ASSETS
Current assets:
Cash and cash equivalents	$	124,105	$	101,457
Accounts receivable, net of allowances for credit losses of $227 and $415 as of December 31, 2025 and December 31, 2024, respectively		85,935		143,724
Inventories		47,840		43,060
Prepaid expenses and other current assets		12,530		9,888
Assets held for sale		223,961		267,011
Total current assets		494,371		565,140
Property and equipment, net		25,648		25,162
Operating lease right-of-use assets		13,687		12,411
Goodwill		60,900		60,773
Deferred income taxes, net		104,043		113,906
Other non-current assets		19,834		19,114
Total assets	$	718,483	$	796,506
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	2,944	$	2,194
Accounts payable		23,093		28,318
Deferred revenue		31,519		14,385
Operating lease liabilities		6,433		5,675
Other current liabilities		48,288		54,745
Liabilities to be disposed of		85,671		86,966
Total current liabilities		197,948		192,283
Long-term debt		109,140		112,084
Other borrowings		—		—
Operating lease liabilities, non-current		14,664		14,727
Other non-current liabilities		13,485		12,154
Total liabilities		335,237		331,248
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding		—		—
Common stock, $0.001 par value, 150,000 shares authorized; 111,186 and 116,735 shares issued and outstanding at December 31, 2025 and 2024, respectively		111		117
Additional paid-in capital		2,466,177		2,432,733
Accumulated deficit		(2,076,406)		(1,953,495)
Accumulated other comprehensive loss		(6,636)		(14,097)
Total stockholders' equity		383,246		465,258
Total liabilities and stockholders' equity	$	718,483	$	796,506

Harmonic Inc. Preliminary Condensed Consolidated Statements of Operations (Unaudited, in thousands, except per share data)
	Three Months Ended				Year Ended
	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Revenue:
Appliance and integration	$	82,482	$	157,585	$	302,787	$	433,795
SaaS and service		15,753		13,443		57,736		54,405
Total net revenue		98,235		171,028		360,523		488,200
Cost of revenue:
Appliance and integration		45,790		75,412		162,129		221,745
SaaS and service		6,265		5,418		23,649		26,348
Total cost of revenue		52,055		80,830		185,778		248,093
Total gross profit		46,180		90,198		174,745		240,107
Operating expenses:
Research and development		19,660		19,679		74,958		72,574
Selling, general and administrative		22,752		19,873		82,755		79,169
Asset impairment and related charges		—		610		1,637		10,889
Restructuring and related charges		—		465		1,315		2,741
Total operating expenses		42,412		40,627		160,665		165,373
Income from operations		3,768		49,571		14,080		74,734
Interest expense, net		(397)		(2,262)		(3,799)		(6,465)
Other income (expense), net		(47)		6,478		(1,420)		3,267
Income before income taxes		3,324		53,787		8,861		71,536
Provision for income taxes		3,105		15,592		7,645		20,818
Income from continuing operations		219		38,195		1,216		50,718
Loss from discontinued operations, net of tax		(55,034)		(75)		(44,526)		(11,501)
Net income (loss)	$	(54,815)	$	38,120	$	(43,310)	$	39,217

Net income (loss) per share:
Basic:
Continuing operations	$	0.00	$	0.33	$	0.01	$	0.44
Discontinued operations		(0.49)		(0.00)		(0.39)		(0.10)
Basic earnings (loss) per share	$	(0.49)	$	0.33	$	(0.38)	$	0.34

Diluted:
Continuing operations	$	0.00	$	0.32	$	0.01	$	0.43
Discontinued operations		(0.49)		(0.00)		(0.39)		(0.10)
Diluted earnings (loss) per share	$	(0.49)	$	0.32	$	(0.38)	$	0.33

Weighted average common shares:
Basic		112,089		116,619		113,660		115,120
Diluted		112,995		117,699		114,182		117,482

Harmonic Inc. Preliminary Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands)
	Year Ended
	December 31, 2025		December 31, 2024
Cash flows from Continuing and Discontinued Operations
Cash flows from operating activities:
Net income (loss)	$	(43,310)	$	39,217
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation		11,082		12,139
Asset impairment and related charges		1,637		12,036
Impairment of goodwill		57,521		—
Stock-based compensation		31,882		28,073
Foreign currency remeasurement		847		315
Deferred income taxes, net		8,476		(16,436)
Provision for excess and obsolete inventories		3,270		10,971
Other		127		569
Changes in operating assets and liabilities:
Accounts receivable, net		53,908		(38,241)
Inventories		(7,103)		8,374
Prepaid expenses and other assets		3,302		3,199
Accounts payable		(5,965)		(3,107)
Deferred revenues		10,220		(2,210)
Other liabilities		(17,928)		7,018
Net cash provided by operating activities		107,966		61,917
Cash flows from investing activities:
Purchases of property and equipment		(11,080)		(9,186)
Net cash used in investing activities		(11,080)		(9,186)
Cash flows from financing activities:
Proceeds from long-term debt		135,000		115,000
Repayment of convertible debt		—		(115,500)
Payments for debt issuance costs		—		(332)
Proceeds from other borrowings		3,835		3,943
Repayment of long-term debt and other borrowings		(142,816)		(5,447)
Repurchase of common stock		(79,027)		(30,047)
Proceeds from common stock issued to employees		5,983		6,628
Taxes paid related to net share settlement of equity awards		(4,365)		(7,514)
Net cash used in financing activities		(81,390)		(33,269)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		7,176		(1,942)
Net increase in cash and cash equivalents and restricted cash		22,672		17,520
Cash and cash equivalents and restricted cash, beginning of the year		101,789		84,269
Cash and cash equivalents and restricted cash, end of the year	$	124,461	$	101,789

Cash and cash equivalents and restricted cash at end of the year
Cash and cash equivalents	$	124,105	$	101,457
Restricted cash included in other current assets		356		332
Total cash, cash equivalents and restricted cash as shown in the consolidated statement of cash flows	$	124,461	$	101,789

Harmonic Inc. Preliminary Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands)
	Year Ended
		December 31, 2025		December 31, 2024
Supplemental cash flow disclosure:
Income tax payments, net	$	12,760	$	27,308
Interest payments, net	$	4,072	$	6,283
Supplemental schedule of non-cash investing activities:
Capital expenditures incurred but not yet paid	$	247	$	488
Supplemental schedule of non-cash financing activities:
Shares of common stock issued upon redemption of the 2024 Notes		—		4,578

Harmonic Inc. Preliminary GAAP Revenue Information (Unaudited, in thousands, except percentages)
	Three Months Ended
	December 31, 2025			September 26, 2025			December 31, 2024
Geography
Americas	$	85,224	87 %	$	80,040	88 %	$	158,912	92 %
EMEA		9,781	10 %		9,717	10 %		11,832	7 %
APAC		3,230	3 %		735	2 %		284	1 %
Total	$	98,235	100 %	$	90,492	100 %	$	171,028	100 %

Customer
Top 2 customers ⁽¹⁾	$	58,077	59 %	$	58,853	65 %	$	140,873	82 %
Rest-of-world		40,158	41 %		31,639	35 %		30,155	18 %
Total	$	98,235	100 %	$	90,492	100 %	$	171,028	100 %


				Twelve Months Ended
				December 31, 2025			December 31, 2024
Geography
Americas				$	320,570	89 %	$	449,346	92 %
EMEA					33,894	9 %		36,420	7 %
APAC					6,059	2 %		2,434	1 %
Total				$	360,523	100 %	$	488,200	100 %

Customer
Top 2 customers ⁽¹⁾				$	221,787	62 %	$	393,234	81 %
Rest-of-world					138,736	38 %		94,966	19 %
Total				$	360,523	100 %	$	488,200	100 %

_______________

(1) Based on largest subscriber footprint

Harmonic Inc. GAAP to Non-GAAP Reconciliations (Unaudited) (in thousands, except percentages and per share data)
	Three Months Ended December 31, 2025
	Revenue		Gross Profit		Total Operating Expense		Income from Operations		Total Non-operating Expense, net		Income from Continuing Operations
GAAP	$	98,235	$	46,180	$	42,412	$	3,768	$	(444)	$	219
Stock-based compensation		—		218		(5,594)		5,812		—		5,812
Discrete tax items and tax effect of Non-GAAP adjustments		—		—		—		—		—		1,186
Total adjustments		—		218		(5,594)		5,812		—		6,998
Non-GAAP	$	98,235	$	46,398	$	36,818	$	9,580	$	(444)	$	7,217
As a % of revenue (GAAP)				47.0 %		43.2 %		3.8 %		(0.5) %		0.2 %
As a % of revenue (Non-GAAP)				47.2 %		37.5 %		9.8 %		(0.5) %		7.3 %
Diluted earnings per share:
GAAP											$	0.00
Non-GAAP											$	0.06
Shares used in per share calculation:
GAAP and Non-GAAP												112,995

	Three Months Ended September 26, 2025
	Revenue		Gross Profit		Total Operating Expense		Income from Operations		Total Non- operating Expense, net		Income (Loss) from Continuing Operations
GAAP	$	90,492	$	42,299	$	38,269	$	4,030	$	(561)	$	(515)
Stock-based compensation		—		125		(5,032)		5,157		—		5,157
Restructuring and related charges		—		—		(887)		887		—		887
Discrete tax items and tax effect of Non-GAAP adjustments		—		—		—		—		—		1,986
Total adjustments		—		125		(5,919)		6,044		—		8,030
Non-GAAP	$	90,492	$	42,424	$	32,350	$	10,074	$	(561)	$	7,515
As a % of revenue (GAAP)				46.7 %		42.3 %		4.5 %		(0.6) %		(0.6) %
As a % of revenue (Non-GAAP)				46.9 %		35.7 %		11.1 %		(0.6) %		8.3 %
Diluted earnings (loss) per share:
GAAP											$	(0.00)
Non-GAAP											$	0.07
Shares used in per share calculation:
GAAP												112,982
Non-GAAP												113,323

Harmonic Inc. GAAP to Non-GAAP Reconciliations (Unaudited) (in thousands, except percentages and per share data)
	Three Months Ended December 31, 2024
	Revenue		Gross Profit		Total Operating Expense		Income from Operations		Total Non-operating Expense, net		Income from Continuing Operations
GAAP	$	171,028	$	90,198	$	40,627	$	49,571	$	4,216	$	38,195
Stock-based compensation		—		—		(5,868)		5,868		—		5,868
Restructuring and related charges		—		—		(465)		465		—		465
Asset impairment and related charges ⁽¹⁾		—		—		(610)		610		—		610
Discrete tax items and tax effect of Non-GAAP adjustments		—		—		—		—		—		2,839
Total adjustments		—		—		(6,943)		6,943		—		9,782
Non-GAAP	$	171,028	$	90,198	$	33,684	$	56,514	$	4,216	$	47,977
As a % of revenue (GAAP)				52.7 %		23.8 %		29.0 %		2.5 %		22.3 %
As a % of revenue (Non-GAAP)				52.7 %		19.7 %		33.0 %		2.5 %		28.1 %
Diluted earnings per share:
GAAP											$	0.32
Non-GAAP											$	0.41
Shares used in per share calculation:
GAAP and Non-GAAP												117,699

	Twelve Months Ended December 31, 2025
	Revenue		Gross Profit		Total Operating Expense		Income from Operations		Total Non-operating Expense, net		Income from Continuing Operations
GAAP	$	360,523	$	174,745	$	160,665	$	14,080	$	(5,219)	$	1,216
Stock-based compensation		—		961		(20,680)		21,641		—		21,641
Restructuring and related charges		—		—		(1,315)		1,315		—		1,315
Asset impairment and related charges ⁽²⁾		—		—		(1,637)		1,637		—		1,637
Discrete tax items and tax effect of Non-GAAP adjustments		—		—		—		—		—		620
Total adjustments		—		961		(23,632)		24,593		—		25,213
Non-GAAP	$	360,523	$	175,706	$	137,033	$	38,673	$	(5,219)	$	26,429
As a % of revenue (GAAP)				48.5 %		44.6 %		3.9 %		(1.4) %		0.3 %
As a % of revenue (Non-GAAP)				48.7 %		38.0 %		10.7 %		(1.4) %		7.3 %
Diluted earnings per share:
GAAP											$	0.01
Non-GAAP											$	0.23
Shares used in per share calculation:
GAAP and Non-GAAP												114,182

_______________

(1) Included impairment charges of $0.2 million for right-of-use assets and $0.4 million related to the fair value of other unrecoverable facility costs.

(2) Includes impairment charges of $0.4 million for right-of-use assets, $0.3 million for leasehold improvements and $0.9 million related to the fair value of other unrecoverable facility costs.

Harmonic Inc. GAAP to Non-GAAP Reconciliations (Unaudited) (in thousands, except percentages and per share data)
	Twelve Months Ended December 31, 2024
	Revenue		Gross Profit		Total Operating Expense		Income from Operations		Total Non- operating Expense, net		Income from Continuing Operations
GAAP	$	488,200	$	240,107	$	165,373	$	74,734	$	(3,198)	$	50,718
Stock-based compensation		—		505		(18,820)		19,325		—		19,325
Restructuring and related charges		—		—		(2,741)		2,741		—		2,741
Asset impairment and related charges ⁽¹⁾		—		—		(10,889)		10,889		—		10,889
Non-cash interest expense related to convertible notes		—		—		—		—		567		567
Discrete tax items and tax effect of non-GAAP adjustments		—		—		—		—		—		(1,244)
Total adjustments		—		505		(32,450)		32,955		567		32,278
Non-GAAP	$	488,200	$	240,612	$	132,923	$	107,689	$	(2,631)	$	82,996
As a % of revenue (GAAP)				49.2 %		33.9 %		15.3 %		(0.7) %		10.4 %
As a % of revenue (Non-GAAP)				49.3 %		27.2 %		22.1 %		(0.5) %		17.0 %
Diluted earnings per share:
GAAP											$	0.43
Non-GAAP											$	0.71
Shares used in per share calculation:
GAAP and Non-GAAP												117,482

	Three Months Ended						Three Months Ended
	December 31, 2025						December 31, 2024
	Income from Continuing Operations		Income (Loss) from Disc. Operations		Net Income (Loss)		Income from Continuing Operations		Income (Loss) from Disc. Operations		Net Income
GAAP	$	219	$	(55,034)	$	(54,815)	$	38,195	$	(75)	$	38,120
Stock-based compensation		5,812		2,582		8,394		5,868		2,618		8,486
Restructuring and related charges		—		—		—		465		708		1,173
Asset impairment and related charges		—		—		—		610		—		610
Impairment of goodwill		—		57,521		57,521		—		—		—
Non-recurring advisory fees		—		2,488		2,488		—		—		—
Discrete tax items and tax effect of Non-GAAP adjustments		1,186		1,272		2,458		2,839		1,204		4,043
Total adjustments		6,998		63,863		70,861		9,782		4,530		14,312
Non-GAAP	$	7,217	$	8,829	$	16,046	$	47,977	$	4,455	$	52,432
As a % of revenue (GAAP)		0.2 %		(93.2) %		(34.8) %		22.3 %		(0.1) %		17.2 %
As a % of revenue (Non-GAAP)		7.3 %		14.9 %		10.2 %		28.1 %		8.7 %		23.6 %

Diluted earnings (loss) per share:
GAAP	$	0.00	$	(0.49)	$	(0.49)	$	0.32	$	(0.00)	$	0.32
Non-GAAP	$	0.06	$	0.08	$	0.14	$	0.41	$	0.04	$	0.45

Shares used in per share calculation:
GAAP and Non-GAAP		112,995		112,995		112,995		117,699		117,699		117,699

_______________

(1) Included impairment charges of $3.9 million for right-of-use assets, $4.3 million for leasehold improvements and $2.7 million related to the fair value of other unrecoverable facility costs.

Harmonic Inc. GAAP to Non-GAAP Reconciliations (Unaudited) (in thousands, except percentages and per share data)
	Twelve Months Ended						Twelve Months Ended
	December 31, 2025						December 31, 2024
	Income from Continuing Operations		Income (Loss) from Disc. Operations		Net Income (Loss)		Income from Continuing Operations		Income (Loss) from Disc. Operations		Net Income
GAAP	$	1,216	$	(44,526)	$	(43,310)	$	50,718	$	(11,501)	$	39,217
Stock-based compensation		21,641		10,239		31,880		19,325		8,748		28,073
Restructuring and related charges		1,315		422		1,737		2,741		13,703		16,444
Impairment of goodwill		—		57,521		57,521		—		—		—
Non-recurring advisory fees		—		3,315		3,315		—		755		755
Asset impairment and related charges		1,637		—		1,637		10,889		1,824		12,713
Non-cash interest expense related to convertible notes		—		—		—		567		—		567
Discrete tax items and tax effect of Non-GAAP adjustments		620		481		1,101		(1,244)		(4,492)		(5,736)
Total adjustments		25,213		71,978		97,191		32,278		20,538		52,816
Non-GAAP	$	26,429	$	27,452	$	53,881	$	82,996	$	9,037	$	92,033
As a % of revenue (GAAP)		0.3 %		(21.2) %		(7.6) %		10.4 %		(6.0) %		5.8 %
As a % of revenue (Non-GAAP)		7.3 %		13.1 %		9.4 %		17.0 %		4.7 %		13.6 %

Diluted earnings (loss) per share:
GAAP	$	0.01	$	(0.39)	$	(0.38)	$	0.43	$	(0.10)	$	0.33
Non-GAAP	$	0.23	$	0.24	$	0.47	$	0.71	$	0.07	$	0.78

Shares used in per share calculation:
GAAP and Non-GAAP		114,182		114,182		114,182		117,482		117,482		117,482

Harmonic Inc. Preliminary Income (Loss) from Continuing Operations to Adjusted EBITDA Reconciliation (Unaudited) (In thousands, except percentages)
	Three Months Ended
	December 31, 2025		September 26, 2025		December 31, 2024
Income (loss) from continuing operations (GAAP)	$	219	$	(515)	$	38,195
Provision for income taxes		3,105		3,984		15,592
Interest expense, net		397		1,001		2,262
Depreciation		2,597		2,565		2,702
EBITDA		6,318		7,035		58,751

Adjustments
Stock-based compensation		5,812		5,157		5,868
Restructuring and related charges		—		887		465
Lease-related asset impairment and other charges		—		—		610
Adjusted EBITDA (Non-GAAP)	$	12,130	$	13,079	$	65,694
Revenue	$	98,235	$	90,492	$	171,028
Income (loss) from continuing operations margin (GAAP)		0.2 %		(0.6) %		22.3 %
Adjusted EBITDA margin (Non-GAAP)		12.3 %		14.5 %		38.4 %

	Twelve Months Ended
	December 31, 2025		December 31, 2024
Income from continuing operations (GAAP)	$	1,216	$	50,718
Provision for income taxes		7,645		20,818
Interest expense, net		3,799		6,465
Depreciation		10,035		11,074
EBITDA		22,695		89,075

Adjustments
Stock-based compensation		21,641		19,325
Restructuring and related charges		1,315		2,741
Lease-related asset impairment and other charges		1,637		10,889
Adjusted EBITDA (Non-GAAP)	$	47,288	$	122,030
Revenue	$	360,523	$	488,200
Income from continuing operations margin (GAAP)		0.3 %		10.4 %
Adjusted EBITDA margin (Non-GAAP)		13.1 %		25.0 %

Harmonic Inc. GAAP to Non-GAAP Reconciliations on Financial Guidance for Continuing Operations (Unaudited)⁽¹⁾ (In millions, except percentages and per share data)
	Q1 2026 Financial Guidance
	Revenue					Gross Profit					Total Operating Expense					Income from Operations					Income from Continuing Operations
GAAP	$	100	to	$	105	$	53	to	$	57	$	46	to	$	48	$	7	to	$	9	$	4	to	$	5
Stock-based compensation			—					1					(10)					11					11
Tax effect of Non-GAAP adjustments			—					—					—					—				(3)	to		(2)
Total adjustments			—					1					(10)					11				8	to		9
Non-GAAP	$	100	to	$	105	$	54	to	$	58	$	36	to	$	38	$	18	to	$	20	$	12	to	$	14
As a % of revenue (GAAP)							53.0 %	to		54.3 %		46.0 %	to		45.7 %		7.0 %	to		8.6 %		4.0 %	to		4.8 %
As a % of revenue (Non-GAAP)							54.0 %	to		55.0 %		36.0 %	to		36.2 %		18.0 %	to		19.3 %		12.0 %	to		13.0 %
Diluted earnings per share:
GAAP																					$	0.04	to	$	0.04
Non-GAAP																					$	0.11	to	$	0.12
Shares used in per share calculation:
GAAP and Non-GAAP																					111.4

	FY26 Financial Guidance
	Revenue					Gross Profit					Total Operating Expense					Income from Operations					Income from Continuing Operations
GAAP	$	440	to	$	480	$	222	to	$	252	$	176	to	$	181	$	46	to	$	71	$	30	to	$	48
Stock-based compensation			—					2					(26)					28					28
Tax effect of Non-GAAP adjustments			—					—					—					—				(6)	to		(5)
Total adjustments			—					2					(26)					28				22	to		23
Non-GAAP	$	440	to	$	480	$	224	to	$	254	$	150	to	$	155	$	74	to	$	99	$	52	to	$	71
As a % of revenue (GAAP)							50.5 %	to		52.5 %		40.0 %	to		37.7 %		10.5 %	to		14.8 %		6.8 %	to		10.0 %
As a % of revenue (Non-GAAP)							51.0 %	to		53.0 %		34.1 %	to		32.3 %		16.8 %	to		20.6 %		11.7 %	to		14.7 %
Diluted earnings per share:
GAAP																					$	0.27	to	$	0.43
Non-GAAP																					$	0.46	to	$	0.63
Shares used in per share calculation:
GAAP and non-GAAP																					111.7

_______________

(1) Components may not sum to total due to rounding.

View original content to download multimedia:https://www.prnewswire.com/news-releases/harmonic-announces-fourth-quarter-and-fiscal-2025-results-302693027.html

SOURCE Harmonic Inc.

FAQ

What drove Harmonic (HLIT) Q4 2025 bookings and book-to-bill?

Record Broadband bookings drove a 3.5 book-to-bill in Q4 2025. According to the company, strong Unified DOCSIS 4.0 ramps, Rest-of-World adoption, and large customer deployment plans produced $346.9M in Q4 bookings and boosted backlog to $573.8M.

What are Harmonic (HLIT) FY2026 Broadband revenue and EPS guidance?

Harmonic provided FY2026 Broadband GAAP revenue guidance of $440–$480M and EPS $0.27–$0.43. According to the company, guidance assumes tariff impacts and stranded costs and reflects expected continued Broadband growth and deployments.

What is the status and value of Harmonic's Video business sale (HLIT)?

Harmonic entered a binding put option for the Video business with a $145M cash purchase price. According to the company, the disposition is expected to close in H1 2026, subject to customary closing conditions and net working capital adjustments.

How strong is Harmonic's balance sheet after Q4 2025 results for HLIT investors?

Harmonic reported $124.1M in cash and repurchased ~1.3M shares for $13.3M in Q4. According to the company, cash improved year-over-year from $101.5M and supports capital allocation priorities after the planned Video sale.

How did Broadband revenue perform in Q4 2025 for Harmonic (HLIT)?

Broadband continuing operations generated $98.2M in Q4 2025 revenue. According to the company, revenue growth was driven by commercial cOS deployments, Rest-of-World bookings, and increased fiber sales with major customers.

Harmonic Announces Fourth Quarter and Fiscal 2025 Results