Harmonic Announces Third Quarter 2026 Results

Q: What were Harmonic's Q3 2026 revenue and earnings?

Harmonic reported $148.8 million in continuing-operations revenue and GAAP diluted continuing-operations earnings of $0.16 per share. Revenue increased 64% year over year. GAAP operating profit was $26.2 million, compared with $4.0 million a year earlier.

Q: What is Harmonic's updated 2026 guidance?

Harmonic raised its full-year revenue outlook to $545 million–$555 million and guides to GAAP diluted earnings of $0.54–$0.57 per share. Full-year GAAP operating profit guidance is $93 million–$99 million, with gross margin of 51.9%–52.3%.

Rest-of-Market bookings exceeded 60% of quarterly bookings, while Harmonic raised its full-year revenue outlook.

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Rhea-AI Summary

Harmonic (HLIT) reported third-quarter continuing-operations revenue of $148.8 million, up 64% year over year and above its guidance range. For the quarter ended October 2, 2026, GAAP operating profit rose to $26.2 million from $4.0 million a year earlier; diluted continuing-operations earnings were $0.16 per share versus $(0.00). Rest-of-Market revenue more than doubled, reaching 46% of revenue.

Harmonic raised its 2026 revenue outlook to $545 million–$555 million, with GAAP earnings guidance of $0.54–$0.57 per share. Bookings were $105.9 million, below $144.3 million in Q2 but above $97.4 million a year earlier. Backlog and deferred revenue reached $534.0 million, up 58% year over year but below Q2's $587.6 million. Cash fell to $142.8 million from $231.9 million in Q2, while a $75 million revolving-credit repayment increased available borrowing capacity to $160 million.

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0 major · 10 points

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Positive

Major point. Forward-looking: it has not happened yet and may not happen.2026 revenue outlook raised to $545 million–$555 million; GAAP operating profit guidance is $93 million–$99 million.
Moderate pointQ3 revenue rose 64% year over year to $148.8 million, exceeding the high end of guidance.
Moderate pointGAAP operating profit reached $26.2 million, versus $23.6 million in Q2 and $4.0 million a year earlier.
Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 revenue guidance is $141 million–$151 million, with GAAP operating profit of $22 million–$28 million.
Moderate point$75 million revolving-credit repayment increased available capacity to $160 million from $85 million at July 3, 2026. 6.7% of market cap
Moderate pointVideo business sale completed June 16, 2026, with $137.9 million paid at closing, subject to adjustments. 12% of market cap

12 minor points

Minor pointContinuing-operations diluted EPS was $0.16, unchanged sequentially and above $(0.00) a year earlier.
Minor pointRest-of-Market revenue more than doubled year over year, reaching a record 46% of total revenue.
Minor pointRest-of-Market bookings exceeded 60% of total Q3 bookings, supporting customer diversification.
Minor point. Forward-looking: it has not happened yet and may not happen.2026 GAAP EPS guidance is $0.54–$0.57, with gross margin of 51.9%–52.3%.
Minor point. Forward-looking: it has not happened yet and may not happen.Q4 GAAP EPS guidance is $0.13–$0.16, with gross margin of 51.0%–52.0%.
Minor pointcOS SensAI secured first customer wins after its September launch as a recurring-revenue service.
Minor pointFiber management and provisioning platform company acquired, adding a vendor-agnostic platform.
Minor pointNine-month revenue reached $403.995 million, versus $262.288 million in the comparable 2025 period.
Minor pointNine-month continuing-operations income reached $44.793 million, versus $0.997 million in the comparable 2025 period.
Minor pointQ3 appliance and integration revenue rose to $137.187 million from $76.179 million a year earlier.
Minor pointQ3 gross profit rose to $77.119 million from $42.299 million a year earlier.
Minor pointQ3 consolidated net income rose to $14.638 million from $2.694 million a year earlier.

Negative

Moderate pointBookings of $105.9 million fell from $144.3 million in Q2, though above $97.4 million a year earlier.
Moderate pointCash fell to $142.8 million from $231.9 million in Q2, but exceeded December 31, 2025's $124.1 million.
Moderate pointNine-month discontinued-operations loss was $25.170 million, versus income of $10.508 million in the comparable 2025 period.
Minor pointBacklog and deferred revenue of $534.0 million fell sequentially from $587.6 million, despite 58% year-over-year growth.
Minor pointQ3 SaaS and service revenue declined to $11.651 million from $14.313 million a year earlier.

5 minor points

Minor pointQ3 operating expenses rose to $50.960 million from $38.269 million a year earlier.
Minor pointQ3 discontinued-operations loss was $3.456 million, versus income of $3.209 million a year earlier.
Minor pointApproximately $1.5 million in Q3 stranded costs remained associated with the Video business divestiture.
Minor point. Forward-looking: it has not happened yet and may not happen.Guidance includes stranded costs of approximately $1.5 million for Q4 and $7.6 million for full-year 2026.
Minor pointVideo sale post-closing adjustments remain pending; completion is currently expected in the first quarter of 2027.

News Explained

The Video sale is closed and Harmonic now reports one Broadband segment, but final cash proceeds adjustments remain expected in the first quarter of 2027.

The sale of Harmonic’s Video business to MediaKind closed on June 16, 2026, leaving the company with a single Broadband reportable segment; although the agreement set a $145 million purchase price, $137.9 million was paid at closing, with final adjustments expected in Q1 2027.

Harmonic also reports acquiring a company described as a vendor-agnostic fiber management and provisioning platform.

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Key Figures

Q3 net revenue: $148.8 million Revenue growth: 64% Rest-of-Market share of revenue: 46% +5 more

Q3 net revenue: $148.8 million; Q3 2026 continuing operations
Revenue growth: 64%; Year over year in Q3 2026
Rest-of-Market share of revenue: 46%; Record share of total revenue
GAAP operating profit: $26.2 million; Q3 2026 continuing operations
Non-GAAP operating profit: $33.0 million; Q3 2026 continuing operations
Net income per share: $0.16 GAAP; $0.23 non-GAAP; Q3 2026
Backlog and deferred revenue: $534.0 million; Q3 2026 quarter end; up 58% year over year
2026 GAAP net revenue guidance: $545 million–$555 million; Full-year 2026 outlook raised

Previous Earnings Reports

1 past event · Latest: Aug 12

Same Type 1 event

Aug 12
Earnings results

24h Move

+9.0%

Revenue rose 54%, operating profit improved, and the 2026 revenue outlook increased to $505–$525 million.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, non-gaap, cpe, docsis

4 terms

gaap financial

"GAAP Financial Guidance for Continuing Operations"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"Non-GAAP Financial Guidance for Continuing Operations"

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.

View in glossary

cpe technical

"serving 52.6 million CPE devices"

Carbapenemase-producing Enterobacteriaceae (CPE) are bacteria that have evolved an enzyme blocking carbapenems, a class of last-resort antibiotics, making infections hard to treat. For investors, CPE signals higher demand for better diagnostics, new antibiotics and infection-control products, and potential regulatory and cost pressures on hospitals and drug developers—similar to a leak that forces a building owner to invest in new repairs and safety systems.

docsis technical

"suite of solutions for fiber and DOCSIS"

DOCSIS is the industry standard that sets the rules for delivering high‑speed internet over existing cable TV wiring, like a traffic code for data on a neighborhood road. It matters to investors because upgrades to newer DOCSIS standards or limitations of older ones directly affect a cable operator’s ability to offer faster service, attract and retain customers, and justify capital spending versus alternatives like fiber, which in turn influences revenue and competitive position.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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11/02/2026 - 04:05 PM EST

Revenue increased 64% year over year to $148.8 million, well above the high end of guidance
Rest-of-Market revenue more than doubled year over year to a record 46% of total revenue
Company raises full-year 2026 revenue outlook to $545 million - $555 million

SAN JOSE, Calif., Nov. 2, 2026 /PRNewswire/ -- Harmonic Inc. (Nasdaq: HLIT) today announced its unaudited results for the third quarter ended October 2, 2026.

"Our accelerating momentum led to a breakout third quarter with revenue growing 64% year over year, driven mainly by Rest-of-Market growth which more than doubled year over year," said Nimrod Ben-Natan, president and chief executive officer of Harmonic. "Additionally, we continued executing on our strategy by introducing new fiber and intelligence products including our Recon platform, Oyster+, cOS Loop™ and cOS SensAI™. We remain confident in our ability to deliver sustainable, profitable growth while simultaneously investing to significantly increase our addressable markets as outlined in our recent Investor Day."

Financial and Business Highlights for Continuing Operations

	Q3 2026
	GAAP		Non-GAAP
	(Unaudited, in millions, except per share data)
Net revenue	$	148.8	$	n/a
Operating profit ⁽¹⁾		26.2		33.0
Net income per share ⁽¹⁾	$	0.16	$	0.23

Backlog and deferred revenue of $534.0 million, an increase of 58%, compared to $338 million last year
Cash: $142.8 million at October 2, 2026, compared to $124.1 million at December 31, 2025
$160 million available under our revolving credit facility at October 2, 2026, compared to $85 million at July 3, 2026, due to a $75 million repayment in the third quarter

Business Highlights

Commercially deployed our cOS™ solution with 167 customers, serving 52.6 million CPE devices, with ongoing expansion across all tier-1 accounts and new customer wins
Rest-of-Market bookings represented over 60% of total Q3 bookings, reflecting meaningful progress in customer diversification
Launched cOS SensAI, a recurring revenue service, in September following extended trials; secured first customer wins and began migrating existing cloud customers to the platform
Unveiled Recon, developed in collaboration with Comcast, extending Harmonic's intelligence portfolio to fiber reliability and helping operators detect and resolve network issues before subscribers are affected
Acquired a vendor-agnostic fiber management and provisioning platform company

^{_________________________________
(}¹^{) Includes stranded costs of approximately $1.5 million for Q3 2026.}

Discontinued Operations - Video Business

The results of the Company's Video Business are presented as held-for-sale and discontinued operations in the condensed consolidated statements of operations and condensed 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) for a purchase price of $145 million in cash (the "Disposition"). On March 20, 2026, MediaKind and the Company executed the Asset Purchase Agreement (the "APA") for the Disposition.

On June 16, 2026, the Company and MediaKind completed the Disposition. Proceeds from the sale were $137.9 million paid at closing, subject to final post-closing adjustments under the terms of the APA. Following the Disposition, Harmonic operates as a pure-play broadband company with a single reportable segment: Broadband. As such, and unless stated otherwise, all results presented in the following table reflect those of continuing operations. The Company and MediaKind are in the process of finalizing the post-closing adjustments, which are currently expected to be completed in the first quarter of 2027.

Select Financial Information for Continuing Operations

	GAAP						Non-GAAP
*Key Financial Results*	Q3 2026		Q2 2026		Q3 2025		Q3 2026		Q2 2026		Q3 2025
	(Unaudited, in millions, except per share data)
Net revenue	$	148.8	$	133.5	$	90.5		n/a		n/a		n/a
Operating profit ⁽¹⁾	$	26.2	$	23.6	$	4.0	$	33.0	$	31.3	$	10.1
Net income (loss) per share	$	0.16	$	0.16	$	(0.00)	$	0.23	$	0.21	$	0.07

*Other Financial Information*	Q3 2026		Q2 2026		Q3 2025
	(Unaudited, in millions)
Bookings for the quarter	$	105.9	$	144.3	$	97.4
Backlog and deferred revenue as of quarter end	$	534.0	$	587.6	$	338.0
Cash and cash equivalents as of quarter end	$	142.8	$	231.9	$	127.4

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."

^{_________________________________
(1) Includes stranded costs of approximately $1.5 million in Q3 2026, $2.3 million in Q2 2026, and $2.2 million in Q3 2025.}

GAAP Financial Guidance for Continuing Operations

	Q4 2026 GAAP Financial Guidance ⁽¹⁾
(Unaudited, in millions, except percentages and per share data)	Low		High
Net revenue	$	141	$	151
Gross margin %		51.0 %		52.0 %
Operating profit ⁽²⁾	$	22	$	28
Tax rate		31.0 %		31.0 %
Net income per share	$	0.13	$	0.16
Shares ⁽³⁾		109.2		109.2
	2026 GAAP Financial Guidance ⁽¹⁾
(Unaudited, in millions, except percentages and per share data)	Low		High
Net revenue	$	545	$	555
Gross margin %		51.9 %		52.3 %
Operating profit ⁽²⁾	$	93	$	99
Tax rate		31.0 %		31.0 %
Net income per share	$	0.54	$	0.57
Shares ⁽³⁾		110.2		110.2

Non-GAAP Financial Guidance for Continuing Operations

	Q4 2026 Non-GAAP Financial Guidance ⁽¹⁾
(Unaudited, in millions, except percentages and per share data)	Low		High
Gross margin %		51.0 %		52.0 %
Gross profit	$	72	$	79
Operating profit ⁽²⁾	$	28	$	34
Tax rate		23.0 %		23.0 %
Net income per share	$	0.19	$	0.23
Shares ⁽³⁾		109.2		109.2
	2026 Non-GAAP Financial Guidance ⁽¹⁾
(Unaudited, in millions, except percentages and per share data)	Low		High
Gross margin %		52.1 %		52.4 %
Gross profit	$	284	$	291
Operating profit ⁽²⁾	$	118	$	124
Tax rate		23.0 %		23.0 %
Net income per share	$	0.80	$	0.84
Shares ⁽³⁾		110.2		110.2

^{_________________________________
(1)} ^{Refer to "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations on Financial Guidance" below. Components may not sum due to rounding.}⁽²⁾ ^{Includes approximately $1.5 million and $7.6 million of stranded costs associated with the Video business divestiture for Q4 2026 and FY 2026, respectively.}^{(3) Diluted shares assume stock price of $11.98 (Q3 2026 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 Monday, November 2, 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/BI3ab9c6deda3a4df08222bd943609a117. 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 solutions, is transforming multi-gigabit connectivity. The company's industry-leading cOS™ virtualized broadband platform, suite of solutions for fiber and DOCSIS, and a growing portfolio of AI-powered network intelligence solutions, enable broadband service providers to simplify operations, deliver exceptional subscriber experiences and expand revenue streams. With thousands of vCMTS servers and hundreds of thousands of RPDs deployed globally, Harmonic powers next-generation broadband services with five-nines reliability. Anchored with a customer-first approach and driven by a legacy of innovation, Harmonic supports broadband service providers at every stage of their network evolution. 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 our expectations regarding: net revenue; gross margins; operating expenses; operating income (loss), including stranded costs associated with the disposition of the Video business; 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: 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, 2025, 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, provides 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), 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.

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.

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.

Divestiture related employee compensation costs - There were non-recurring costs that we excluded from Non-GAAP results relating to employee compensation costs resulting from the divestiture.

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.

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. 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)

	October 2, 2026		December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	142,841	$	124,105
Accounts receivable, net of allowances for credit losses of $413 and $227 as of October 2, 2026 and December 31, 2025, respectively		117,110		85,935
Inventories		94,825		47,840
Prepaid expenses and other current assets		24,856		12,530
Assets held for sale		—		223,961
Total current assets		379,632		494,371
Property and equipment, net		23,577		25,648
Operating lease right-of-use assets		11,596		13,687
Goodwill		64,587		60,900
Deferred income taxes, net		90,910		104,043
Other non-current assets		18,801		19,834
Total assets	$	589,103	$	718,483
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	2,944	$	2,944
Accounts payable		56,435		23,093
Deferred revenue		20,435		31,519
Operating lease liabilities		5,563		6,433
Other current liabilities		70,781		48,288
Liabilities to be disposed of		—		85,671
Total current liabilities		156,158		197,948
Long-term debt		33,410		109,140
Operating lease liabilities, non-current		12,208		14,664
Other non-current liabilities		11,771		13,485
Total liabilities		213,547		335,237
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; 108,965 and 111,186 shares issued and outstanding at October 2, 2026 and December 31, 2025, respectively		109		111
Additional paid-in capital		2,488,443		2,466,177
Accumulated deficit		(2,103,595)		(2,076,406)
Accumulated other comprehensive loss		(9,401)		(6,636)
Total stockholders' equity		375,556		383,246
Total liabilities and stockholders' equity	$	589,103	$	718,483

Harmonic Inc. Preliminary Condensed Consolidated Statements of Operations (Unaudited, in thousands, except per share data)

	Three Months Ended				Nine Months Ended
	October 2, 2026		September 26, 2025		October 2, 2026		September 26, 2025
Revenue:
Appliance and integration	$	137,187	$	76,179	$	357,962	$	220,305
SaaS and service		11,651		14,313		46,033		41,983
Total net revenue		148,838		90,492		403,995		262,288
Cost of revenue:
Appliance and integration		67,726		42,253		174,997		116,339
SaaS and service		3,993		5,940		18,376		17,384
Total cost of revenue		71,719		48,193		193,373		133,723
Total gross profit		77,119		42,299		210,622		128,565
Operating expenses:
Research and development		23,558		18,701		65,638		56,357
Selling, general and administrative		27,300		18,681		74,215		58,944
Asset impairment and related charges		205		—		633		1,637
Restructuring and related charges		(103)		887		(103)		1,315
Total operating expenses		50,960		38,269		140,383		118,253
Income from operations		26,159		4,030		70,239		10,312
Interest income (expense), net		231		(1,001)		(1,930)		(3,402)
Other income (expense), net		(591)		440		(1,212)		(1,373)
Income before income taxes		25,799		3,469		67,097		5,537
Provision for income taxes		7,705		3,984		22,304		4,540
Income (loss) from continuing operations, net of tax		18,094		(515)		44,793		997
Income (loss) from discontinued operations, net of tax		(3,456)		3,209		(25,170)		10,508
Net income	$	14,638	$	2,694	$	19,623	$	11,505

Net income (loss) per share:
Basic:
Continuing operations	$	0.17	$	(0.00)	$	0.41	$	0.01
Discontinued operations		(0.04)		0.02		(0.23)		0.09
Basic net income per share	$	0.13	$	0.02	$	0.18	$	0.10

Diluted:
Continuing operations	$	0.16	$	(0.00)	$	0.41	$	0.01
Discontinued operations		(0.03)		0.02		(0.23)		0.09
Diluted net income per share	$	0.13	$	0.02	$	0.18	$	0.10

Weighted average common shares:
Basic		109,111		112,982		109,161		114,221
Diluted		110,259		112,982		110,433		114,602

Harmonic Inc. Preliminary Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands)

	Nine Months Ended
	October 2, 2026		September 26, 2025
Cash flows from Continuing and Discontinued Operations
Cash flows from operating activities:
Net income	$	19,623	$	11,505
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		8,315		8,215
Asset impairment and related charges		633		1,637
Stock-based compensation		27,524		23,486
Foreign currency remeasurement		(88)		446
Deferred income taxes, net		21,875		(3,120)
Loss on divestiture		6,566		—
Provision for excess and obsolete inventories		1,429		2,789
Other		95		61
Changes in operating assets and liabilities:
Accounts receivable, net		(35,481)		74,121
Inventories		(51,525)		(3,944)
Prepaid expenses and other assets		(11,021)		10,359
Accounts payable		34,264		(13,785)
Deferred revenues		(4,252)		1,173
Other liabilities		5,992		(17,265)
Net cash provided by operating activities		23,949		95,678
Cash flows from investing activities:
Net proceeds from divestiture, net of cash retained and transaction costs ⁽¹⁾		131,963		—
Acquisitions of businesses, net of cash acquired		(1,809)		—
Purchases of property and equipment		(5,831)		(8,404)
Net cash provided by (used in) investing activities		124,323		(8,404)
Cash flows from financing activities:
Proceeds from long-term debt		170,000		95,000
Repayment of long-term debt and other borrowings		(248,644)		(101,897)
Repurchase of common stock		(46,582)		(65,757)
Proceeds from other borrowings		—		3,835
Proceeds from common stock issued to employees		4,534		5,983
Taxes paid related to net share settlement of equity awards		(6,740)		(3,795)
Net cash used in financing activities		(127,432)		(66,631)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		(2,089)		5,283
Net increase in cash and cash equivalents and restricted cash		18,751		25,926
Cash and cash equivalents and restricted cash at beginning of period ⁽²⁾		124,461		101,789
Cash and cash equivalents and restricted cash at end of period	$	143,212	$	127,715

Cash and cash equivalents and restricted cash at end of period
Cash and cash equivalents	$	142,841	$	127,376
Restricted cash included in other current assets		371		339
Total cash, cash equivalents and restricted cash as shown in the condensed consolidated statement of cash flows	$	143,212	$	127,715

^{_________________________________
1 Net proceeds from divestiture includes transaction costs of $3.8 million and cash retained in the business sold of $2.1 million.}
^{2 Restricted cash included in other current assets was $0.4 million and $0.3 million as of December 31, 2025 and 2024 respectively.}

Harmonic Inc. Preliminary Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands)

	Nine Months Ended
	October 2, 2026		September 26, 2025
Supplemental cash flow disclosure:
Income tax payments, net	$	5,532	$	14,496
Interest payments, net		1,999		2,897
Supplemental schedule of non-cash investing activities:
Capital expenditures incurred but not yet paid		934		968
Acquisition holdback consideration not yet paid	$	1,631	$	—

Harmonic Inc. Preliminary GAAP Revenue Information (Unaudited, in thousands, except percentages)

	Three Months Ended
	October 2, 2026			July 3, 2026			September 26, 2025
Geography
Americas	$	133,063	90 %	$	120,603	91 %	$	80,040	88 %
EMEA		10,993	7 %		8,421	6 %		9,717	11 %
APAC		4,782	3 %		4,438	3 %		735	1 %
Total	$	148,838	100 %	$	133,462	100 %	$	90,492	100 %

Customer
Top 2 customers ⁽¹⁾	$	80,103	54 %	$	84,053	63 %	$	56,306	62 %
Rest-of-Market		68,735	46 %		49,409	37 %		34,186	38 %
Total	$	148,838	100 %	$	133,462	100 %	$	90,492	100 %


	Nine Months Ended
	October 2, 2026			September 26, 2025
Geography
Americas	$	360,096	89 %	$	235,346	90 %
EMEA		29,873	7 %		24,113	9 %
APAC		14,026	4 %		2,829	1 %
Total	$	403,995	100 %	$	262,288	100 %

Customer
Top 2 customers ⁽¹⁾	$	235,257	58 %	$	165,420	63 %
Rest-of-Market		168,738	42 %		96,868	37 %
Total	$	403,995	100 %	$	262,288	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 October 2, 2026
	Revenue		Gross Profit		Total Operating Expense		Income from Operations		Total Non- operating Expense, net		Net Income
GAAP	$	148,838	$	77,119	$	50,960	$	26,159	$	(360)	$	18,094
Stock-based compensation		—		402		(5,655)		6,057		—		6,057
Restructuring and related charges		—		—		103		(103)		—		(103)
Non-recurring advisory fees		—		—		(214)		214		—		214
Divestiture related employee compensation costs		—		—		(450)		450		—		450
Lease-related asset impairment and other charges ⁽¹⁾		—		—		(205)		205		—		205
Discrete tax items and tax effect of Non-GAAP adjustments		—		—		—		—		—		202
Total adjustments		—		402		(6,421)		6,823		—		7,025
Non-GAAP	$	148,838	$	77,521	$	44,539	$	32,982	$	(360)	$	25,119
As a % of revenue (GAAP)				51.8 %		34.2 %		17.6 %		(0.2) %		12.2 %
As a % of revenue (Non-GAAP)				52.1 %		29.9 %		22.2 %		(0.2) %		16.9 %
Diluted net income per share:
GAAP											$	0.16
Non-GAAP											$	0.23
Shares used in per share calculation:
GAAP and Non-GAAP												110,259

(1) Includes impairment charges of $0.2 million for right-of-use assets.

	Three Months Ended July 3, 2026
	Revenue		Gross Profit		Total Operating Expense		Income from Operations		Total Non- operating Expense, net		Net Income
GAAP	$	133,462	$	69,888	$	46,257	$	23,631	$	(1,661)	$	17,051
Stock-based compensation		—		808		(6,476)		7,284		—		7,284
Lease-related asset impairment and other charges ⁽¹⁾		—		—		(428)		428		—		428
Discrete tax items and tax effect of Non-GAAP adjustments		—		—		—		—		—		(1,908)
Total adjustments		—		808		(6,904)		7,712		—		5,804
Non-GAAP	$	133,462	$	70,696	$	39,353	$	31,343	$	(1,661)	$	22,855
As a % of revenue (GAAP)				52.4 %		34.7 %		17.7 %		(1.2) %		12.8 %
As a % of revenue (Non-GAAP)				53.0 %		29.5 %		23.5 %		(1.2) %		17.1 %
Diluted net income per share:
GAAP											$	0.16
Non-GAAP											$	0.21
Shares used in per share calculation:
GAAP and Non-GAAP												109,682

(1) Includes impairment charges of $0.1 million for right-of-use assets and $0.3 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)

	Three Months Ended September 26, 2025
	Revenue		Gross Profit		Total Operating Expense		Income from Operations		Total Non- operating Expense, net		Net Income (Loss)
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 net income (loss) per share:
GAAP											$	(0.00)
Non-GAAP											$	0.07
Shares used in per share calculation:
GAAP												112,982
Non-GAAP												113,323

	Nine Months Ended October 2, 2026
	Revenue		Gross Profit		Total Operating Expense		Income from Operations		Total Non- operating Expense, net		Net Income
GAAP	$	403,995	$	210,622	$	140,383	$	70,239	$	(3,142)	$	44,793
Stock-based compensation		—		1,475		(17,430)		18,905		—		18,905
Restructuring and related charges		—		—		103		(103)		—		(103)
Non-recurring advisory fees		—		—		(214)		214		—		214
Divestiture related employee compensation costs		—		—		(450)		450		—		450
Lease-related asset impairment and other charges ⁽¹⁾		—		—		(633)		633		—		633
Discrete tax items and tax effect of non-GAAP adjustments		—		—		—		—		—		1,875
Total adjustments		—		1,475		(18,624)		20,099		—		21,974
Non-GAAP	$	403,995	$	212,097	$	121,759	$	90,338	$	(3,142)	$	66,767
As a % of revenue (GAAP)				52.1 %		34.7 %		17.4 %		(0.8) %		11.1 %
As a % of revenue (Non-GAAP)				52.5 %		30.1 %		22.4 %		(0.8) %		16.5 %
Diluted net income per share:
GAAP											$	0.41
Non-GAAP											$	0.60
Shares used in per share calculation:
GAAP and Non-GAAP												110,433

(1) Includes impairment charges of $0.3 million for right-of-use assets and $0.3 million related to the fair value of other unrecoverable facility costs.

	Nine Months Ended September 26, 2025
	Revenue		Gross Profit		Total Operating Expense		Income from Operations		Total Non- operating Expense, net		Net Income
GAAP	$	262,288	$	128,565	$	118,253	$	10,312	$	(4,775)	$	997
Stock-based compensation		—		743		(15,086)		15,829		—		15,829
Restructuring and related charges		—		—		(1,315)		1,315		—		1,315
Lease-related asset impairment and other charges ⁽¹⁾		—		—		(1,637)		1,637		—		1,637
Discrete tax items and tax effect of non-GAAP adjustments		—		—		—		—		—		(566)
Total adjustments		—		743		(18,038)		18,781		—		18,215
Non-GAAP	$	262,288	$	129,308	$	100,215	$	29,093	$	(4,775)	$	19,212
As a % of revenue (GAAP)				49.0 %		45.1 %		3.9 %		(1.8) %		0.4 %
As a % of revenue (Non-GAAP)				49.3 %		38.2 %		11.1 %		(1.8) %		7.3 %
Diluted net income per share:
GAAP											$	0.01
Non-GAAP											$	0.17
Shares used in per share calculation:
GAAP and Non-GAAP												114,221

(1) 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 on Financial Guidance (Unaudited)⁽¹⁾ (In millions, except percentages and per share data)

	Q4 2026 Financial Guidance
	Revenue					Gross Profit					Total Operating Expense					Income from Operations					Net Income
GAAP	$	141	to	$	151	$	72	to	$	79	$	50	to	$	51	$	22	to	$	28	$	14	to	$	18
Stock-based compensation			—					—					(6)					6					6
Tax effect of Non-GAAP adjustments			—					—					—					—					1
Total adjustments			—					—					(6)					6				7			7
Non-GAAP	$	141	to	$	151	$	72	to	$	79	$	44	to	$	45	$	28	to	$	34	$	21	to	$	25
As a % of revenue (GAAP)							51.0 %	to		52.0 %		35.5 %	to		33.8 %		15.6 %	to		18.5 %		9.9 %	to		11.9 %
As a % of revenue (Non-GAAP)							51.0 %	to		52.0 %		31.2 %	to		29.8 %		19.9 %	to		22.5 %		14.9 %	to		16.6 %
Diluted net income per share:
GAAP																					$	0.13	to	$	0.16
Non-GAAP																					$	0.19	to	$	0.23
Shares used in per share calculation:
GAAP and Non-GAAP																					109.2


	FY 2026 Financial Guidance
	Revenue					Gross Profit					Total Operating Expense					Income from Operations					Net Income
GAAP	$	545	to	$	555	$	283	to	$	290	$	190	to	$	191	$	93	to	$	99	$	59	to	$	63
Stock-based compensation			—					1					(23)					24					24
Lease-related asset impairment and related charges			—					—					(1)					1					1
Tax effect of Non-GAAP adjustments			—					—					—					—					4
Total adjustments			—					1					(24)					25				29	to		29
Non-GAAP	$	545	to	$	555	$	284	to	$	291	$	166	to	$	167	$	118	to	$	124	$	88	to	$	92
As a % of revenue (GAAP)							51.9 %	to		52.3 %		34.9 %	to		34.4 %		17.1 %	to		17.8 %		10.8 %	to		11.4 %
As a % of revenue (Non-GAAP)							52.1 %	to		52.4 %		30.5 %	to		30.1 %		21.7 %	to		22.3 %		16.1 %	to		16.6 %
Diluted net income per share:
GAAP																					$	0.54	to	$	0.57
Non-GAAP																					$	0.80	to	$	0.84
Shares used in per share calculation:
GAAP and non-GAAP																					110.2

^{_________________________________
(1) Components may not sum to total due to rounding.}

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SOURCE Harmonic Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Harmonic's Q3 2026 revenue and earnings?

Harmonic reported $148.8 million in continuing-operations revenue and GAAP diluted continuing-operations earnings of $0.16 per share. Revenue increased 64% year over year. GAAP operating profit was $26.2 million, compared with $4.0 million a year earlier.

What is Harmonic's updated 2026 guidance?

Harmonic raised its full-year revenue outlook to $545 million–$555 million and guides to GAAP diluted earnings of $0.54–$0.57 per share. Full-year GAAP operating profit guidance is $93 million–$99 million, with gross margin of 51.9%–52.3%.

When does Harmonic expect to finalize the Video business sale adjustments?

Harmonic expects the Video business sale's post-closing adjustments to be completed in the first quarter of 2027. The sale to MediaKind closed on June 16, 2026, with $137.9 million paid at closing, subject to final adjustments under the asset purchase agreement.

Harmonic Announces Third Quarter 2026 Results