Harmonic (NASDAQ: HLIT) Q4 loss, backlog surge and Video sale plan

Rhea-AI Filing Summary

Harmonic Inc. reported preliminary unaudited results showing mixed trends for the fourth quarter and fiscal 2025. Total company net revenue was $157.3 million in Q4 and $570.8 million for 2025, while GAAP net loss per share was $(0.49) for Q4 and $(0.38) for the year, driven largely by discontinued Video operations and a $57.5 million goodwill impairment.

Broadband continuing operations generated net revenue of $98.2 million in Q4 and $360.5 million for 2025, with Q4 GAAP net income of $0.2 million, non-GAAP net income of $7.2 million and Adjusted EBITDA of $12.1 million. Bookings in Q4 were $346.9 million, producing a 3.5 book‑to‑bill ratio and lifting backlog and deferred revenue to $573.8 million, up 73% year over year.

Cash and cash equivalents were $124.1 million at December 31, 2025, compared with $101.5 million a year earlier, and the company repurchased about 1.3 million shares for $13.3 million in Q4. Harmonic reiterated plans to sell its Video business to MediaKind for $145 million in cash, expected to close in the first half of 2026, and issued 2026 Broadband guidance calling for GAAP net revenue of $440‑$480 million and non‑GAAP net income per share of $0.46‑$0.63.

Positive

• None.

Negative

• Harmonic reported a full-year GAAP net loss of $43.3 million and Q4 GAAP loss per share of $(0.49), driven by discontinued Video operations and a $57.5 million goodwill impairment, alongside a sharp decline in total company revenue to $570.8 million from prior-year levels.

Insights

Equity research analyst

Broadband backlog and 2026 outlook improve visibility despite 2025 loss.

Harmonic exited 2025 with weaker reported revenue but a stronger Broadband franchise. Continuing operations revenue fell to $360.5M from legacy levels, yet Broadband Q4 bookings of $346.9M produced a 3.5 book‑to‑bill and materially increased backlog.

Backlog and deferred revenue reached $573.8M, up 73% year over year, with $307M in current portion, giving substantial revenue coverage for 2026. GAAP results were pressured by a $57.5M Video goodwill impairment and losses in discontinued operations, masking modest profitability in continuing Broadband.

The planned $145M cash sale of the Video business, expected to close in the first half of 2026, and guidance for Broadband revenue of $440‑$480M with non‑GAAP EPS of $0.46‑$0.63 frame the company as a more focused Broadband player. Actual outcomes will depend on closing the divestiture and converting backlog and DOCSIS 4.0 ramps into revenue as outlined in the guidance tables.

false000085131000008513102026-02-192026-02-19

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 19, 2026

HARMONIC INC.

(Exact name of Registrant as specified in its charter)

Delaware	000-25826	77-0201147
(State or other jurisdiction of incorporation)	Commission File Number	(IRS Employer Identification No.)

2590 Orchard Parkway

San Jose, CA 95131

(Address of principal executive offices, including zip code)

(408) 542-2500

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	HLIT	The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On February 19, 2026, Harmonic Inc. (the “Company”) issued a press release regarding its preliminary unaudited financial results for the quarter and year ended December 31, 2025. In the press release, Harmonic also announced that it would be holding a conference call on February 19, 2026 to discuss its financial results for the quarter and year ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 hereto, and the information in Exhibit 99.1 is incorporated herein by reference.

The information in this Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and this Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 furnished herewith shall not be incorporated by reference into any filing by Harmonic under the Securities Act of 1933, as amended (the “Securities Act”), or under the Exchange Act.

Item 9.01. Financial Statements and Exhibits.

(d)Exhibits.

Exhibit Number		Description
99.1		Press release of Harmonic Inc. dated February 19, 2026, entitled "Harmonic Announces Fourth Quarter and Fiscal 2025 Results."
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 19, 2026				HARMONIC INC.
				By:		/s/ Walter Jankovic
						Walter Jankovic
						Chief Financial Officer

Exhibit 99.1

FOR IMMEDIATE RELEASE

Harmonic Announces Fourth Quarter and Fiscal 2025 Results

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

Previously announced sale of Video business proceeding as anticipated

SAN JOSE, California, February 19, 2026 - 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 - Broadband1

•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.

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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 2

	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).

2

Financial Guidance for Continuing Operations - Broadband3

	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).

3

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.

4

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

5

CONTACTS:

Walter Jankovic	David Hanover
Chief Financial Officer	Investor Relations
Harmonic Inc.	Harmonic Inc.
+1.408.490.6152	+1.212.896.1220

6

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

7

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

8

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

9

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

10

Harmonic Inc.

Preliminary GAAP Revenue Information

(Unaudited, in thousands, except percentages)4

	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

11

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

12

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

5

	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.

13

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

6

	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.

14

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

15

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%

16

Harmonic Inc.

GAAP to Non-GAAP Reconciliations on Financial Guidance for Continuing Operations (Unaudited)(1)

(In millions, except percentages and per share data)7

	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.

17

FAQ

How did Harmonic (HLIT) perform financially in Q4 2025?

Harmonic generated $157.3 million in total company net revenue in Q4 2025 and reported a GAAP net loss per share of $(0.49). The loss was mainly driven by discontinued Video operations and related impairment charges, while Broadband continuing operations remained modestly profitable.

What were Harmonic’s full-year 2025 results for continuing Broadband operations?

For 2025, Harmonic’s continuing Broadband operations delivered $360.5 million in net revenue and GAAP net income of $1.2 million. On a non-GAAP basis, Broadband net income was $26.4 million with Adjusted EBITDA of $47.3 million, highlighting stronger underlying profitability than GAAP figures suggest.

What is the status and value of Harmonic’s planned Video business sale?

Harmonic has a put option agreement to sell its Video business to Leone Media Inc. (MediaKind) for $145 million in cash, subject to working capital and other adjustments. The transaction is expected to close in the first half of 2026, pending customary conditions and required French employee consultation.

How strong is Harmonic’s Broadband backlog and what does it imply?

Harmonic reported Broadband backlog and deferred revenue of $573.8 million at December 31, 2025, up 73% from $332.3 million a year earlier. The current portion was $307 million, providing significant revenue visibility for 2026 as those booked contracts are fulfilled and recognized.

What 2026 financial guidance did Harmonic provide for Broadband continuing operations?

For 2026, Harmonic guided Broadband GAAP net revenue to $440‑$480 million with GAAP net income per share of $0.27‑$0.43. Non-GAAP guidance calls for net income per share of $0.46‑$0.63, reflecting expected margin expansion and operating leverage as backlog converts to revenue.

How much cash does Harmonic hold and did it repurchase stock in 2025?

Harmonic ended 2025 with $124.1 million in cash and cash equivalents, up from $101.5 million a year earlier. During 2025 it repurchased approximately $79.0 million of common stock, including about 1.3 million shares for $13.3 million in the fourth quarter alone.

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