Harmonic Inc【HLIT】株式ニュース

Harmonic Announces First Quarter 2026 ResultsMay 11, 2026 4:05 PM
PR Newswire (US) Broadband revenue increased 43% year over year, including 78% growth in Rest-of-Market
Company raises full-year outlook to reflect Broadband revenue of $475 million - $495 million
Sale of Video business progressing as planned, expected to close in the second quarterSAN JOSE, Calif., May 11, 2026 /PRNewswire/ -- Harmonic Inc. (Nasdaq: HLIT) today announced its unaudited results for the first quarter ended April 3, 2026. "Our first quarter represents a strong start to the year driven by 43% year over year growth in Broadband revenue, including 78% growth in Rest-of-Market revenue," said Nimrod Ben-Natan, president and chief executive officer of Harmonic. "Given our continued momentum, robust bookings and record backlog, we are raising our full-year 2026 outlook to reflect Broadband revenue between $475 million to $495 million."Financial and Business HighlightsTotal Company Financial Results
Q1 2026
GAAP
Non-GAAP
(Unaudited, in millions, except per share data)Net revenue$171.8
$n/aOperating profit
17.7

31.5Net income per share $0.07
$0.21
Continuing Operations Financial Results - Broadband
Q1 2026
GAAP
Non-GAAP
(Unaudited, in millions, except per share data)Net revenue$121.7
$n/aOperating profit (1)
20.4

26.0Net income per share (1)$0.10
$0.17Backlog and deferred revenue of $582.1 million, an increase of 87%, compared to $311.7 million last yearCash: $109.0 million at April 3, 2026, compared to $124.1 million at December 31, 2025Repurchased approximately 4.2 million shares of common stock for $43.0 million in Q1Continuing Operations Business Highlights - BroadbandCommercially deployed our cOS™ solution with 150 customers, serving 45.7 million cable modems, with ongoing expansion across all tier-1 accounts and new customer winsRest-of-Market bookings exceeded 50% of total Q1 bookings, reflecting meaningful progress in customer diversificationSecured additional DOCSIS 4.0 customer wins and deployments, with a growing pipelineAchieved multiple fiber wins, including several international providers, with fiber products representing over 14% of Appliance and Integration revenue during the past year__________(1)Includes approximately $2.3 million of stranded costs associated with the Video divestiture for Q1 2026.Discontinued Operations - Video BusinessThe results of the Company's Video Business are presented as held-for-sale and discontinued operations in its 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) (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 French employee works council consultation process was completed on March 12, 2026. On March 16, 2026, the Company delivered a notice of intent to exercise the Put Option to the Buyer requesting that Buyer execute that certain Asset Purchase Agreement (the "APA") on March 20, 2026 and both the Buyer and the Company executed the APA on March 20, 2026. The Buyer's and the Company's obligation to complete the Disposition is subject to certain conditions under the APA, including customary regulatory approvals. The APA includes certain representations, warranties, and covenants of the parties thereto, including an agreement of the Company not to compete with the Business for three years following the closing date as set forth in the APA. In addition, the Company and the Buyer have agreed to indemnify each other for certain losses arising under the APA. The APA also provides that either the Buyer or Company have the right to terminate the APA in the event that the closing conditions have not been satisfied by June 8, 2026, subject to automatic extension to September 8, 2026, in the event of certain closing conditions remaining unsatisfied as of the earlier date. The Disposition is expected to close in the second quarter of 2026.Select Financial Information from Continuing Operations - Broadband
GAAP
Non-GAAPKey Financial ResultsQ1 2026
Q4 2025
Q1 2025
Q1 2026
Q4 2025
Q1 2025
(Unaudited, in millions, except per share data)Net revenue$121.7
$98.2
$84.9

n/a

n/a

n/aOperating profit (1)$20.4
$3.8
$7.0
$26.0
$9.6
$12.1Net income per share$0.10
$0.00
$0.02
$0.17
$0.06
$0.07
Other Financial Information

Q1 2026
Q4 2025
Q1 2025

(Unaudited, in millions)Bookings for the quarter$115.9
$346.9
$72.9Backlog and deferred revenue as of quarter end $582.1
$573.8
$311.7Cash and cash equivalents as of quarter end$109.0
$124.1
$148.7Explanations 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 $2.3 million in Q1 2026, $3.0 million in Q4 2025, and $2.0 million in Q1 2025.GAAP Financial Guidance for Continuing Operations - Broadband
Q2 2026 GAAP Financial Guidance (1)(Unaudited, in millions, except percentages and per share data)Low
HighNet revenue$115
$125Gross margin % (2)
52.0 %

53.0 %Operating profit (3)$18
$23Tax rate
33.0 %

33.0 %Net income per share$0.10
$0.14Shares (4)
109.1

109.1

2026 GAAP Financial Guidance (1)(Unaudited, in millions, except percentages and per share data)Low
HighNet revenue$475
$495Gross margin % (2)
49.9 %

51.3 %Operating profit (3)$64
$78Tax rate
33.0 %

33.0 %Net income per share$0.36
$0.45Shares (4)
110.0

110.0Non-GAAP Financial Guidance for Continuing Operations - Broadband
Q2 2026 Non-GAAP Financial Guidance (1)(Unaudited, in millions, except percentages and per share data)Low
HighGross margin %
52.0 %

53.0 %Gross profit (2)$60
$66Operating profit (3)$23
$28Tax rate
24.5 %

24.5 %Net income per share$0.15
$0.19Shares (4)
109.1

109.1

2026 Non-GAAP Financial Guidance (1)(Unaudited, in millions, except percentages and per share data)Low
HighGross margin %
50.0 %

51.5 %Gross profit (2)$238
$255Operating profit (3)$87
$101Tax rate
24.5 %

24.5 %Net income per share$0.57
$0.67Shares (4)
110.0

110.0__________(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 $0.6 million and $2.3 million of estimated tariff impacts for Q2 and FY 2026, respectively.(3)Includes approximately $2.3 million and $10.0 million of stranded costs associated with the Video divestiture for Q2 and FY 2026, respectively.(4)Diluted shares assumes stock price at $9.91 (Q1 2026 average price).Conference Call InformationHarmonic will host a conference call to discuss its financial results at 2:00 p.m. PT (5:00 p.m. ET) on Monday, May 11, 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/BIc5a3d9e206d54fe09fc0dbcd12efe1cb. 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, and our expectations regarding: net revenue, gross margins, operating expenses, operating income (loss), 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 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 MeasuresThe 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), 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.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.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 performanceHarmonic Inc. Preliminary Condensed Consolidated Balance Sheets (Unaudited, in thousands, except par value)
April 3, 2026
December 31, 2025ASSETS

Current assets:

Cash and cash equivalents$109,000
$124,105Accounts receivable, net of allowances for credit losses of $362 and $227 as of
April 3, 2026 and December 31, 2025, respectively
83,499

85,935Inventories
51,200

47,840Prepaid expenses and other current assets
17,182

12,530Assets held for sale
224,374

223,961Total current assets
485,255

494,371Property and equipment, net
24,670

25,648Operating lease right-of-use assets
12,746

13,687Goodwill
60,881

60,900Deferred income taxes, net
102,050

104,043Other non-current assets
19,704

19,834Total assets$705,306
$718,483LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Current portion of long-term debt$2,944
$2,944Accounts payable
34,379

23,093Deferred revenue
30,265

31,519Operating lease liabilities
6,413

6,433Other current liabilities
52,908

48,288Liabilities to be disposed of
87,334

85,671Total current liabilities
214,243

197,948Long-term debt
108,403

109,140Operating lease liabilities, non-current
13,297

14,664Other non-current liabilities
14,209

13,485Total liabilities
350,152

335,237Stockholders' 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; 108,478 and
111,186 shares issued and outstanding at April 3, 2026 and December 31, 2025,
respectively
108

111Additional paid-in capital
2,475,698

2,466,177Accumulated deficit
(2,112,344)

(2,076,406)Accumulated other comprehensive loss
(8,308)

(6,636)Total stockholders' equity
355,154

383,246Total liabilities and stockholders' equity$705,306
$718,483 Harmonic Inc. Preliminary Condensed Consolidated Statements of Operations (Unaudited, in thousands, except per share data)
Three Months Ended
April 3, 2026
March 28, 2025Revenue:

Appliance and integration$103,759
$71,525SaaS and service
17,936

13,353Total net revenue
121,695

84,878Cost of revenue:

Appliance and integration
50,858

32,434SaaS and service
7,222

5,964Total cost of revenue
58,080

38,398Total gross profit
63,615

46,480Operating expenses:

Research and development
20,881

19,664Selling, general and administrative
22,285

19,780Total operating expenses
43,166

39,444Income from operations
20,449

7,036Interest expense, net
(1,079)

(1,311)Other income (expense), net
(42)

(621)Income before income taxes
19,328

5,104Provision for income taxes
8,103

2,735Income from continuing operations
11,225

2,369Income (loss) from discontinued operations, net of tax
(3,916)

3,571Net income$7,309
$5,940

Net income (loss) per share:

Basic:

Continuing operations$0.10
$0.02Discontinued operations
(0.03)

0.03Basic net income per share$0.07
$0.05

Diluted:

Continuing operations$0.10
$0.02Discontinued operations
(0.03)

0.03Diluted net income per share$0.07
$0.05

Weighted average common shares:

Basic
109,708

116,319Diluted
110,617

117,021 Harmonic Inc.Preliminary Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands)
Three Months Ended
April 3, 2026
March 28, 2025Cash flows from Continuing and Discontinued Operations

Cash flows from operating activities:

Net income$7,309
$5,940Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation
2,523

2,720Stock-based compensation
9,811

8,465Foreign currency remeasurement
1,076

377Deferred income taxes, net
199

712Provision for excess and obsolete inventories
586

1,793Other
44

(19)Changes in operating assets and liabilities:

Accounts receivable, net
3,206

79,609Inventories
(4,713)

2,242Prepaid expenses and other assets
(3,802)

(8,356)Accounts payable
9,233

(8,820)Deferred revenues
7,837

3,151Other liabilities
(1,619)

(4,209)Net cash provided by operating activities
31,690

83,605Cash flows from investing activities:

Purchases of property and equipment
(1,399)

(1,872)Net cash used in investing activities
(1,399)

(1,872)Cash flows from financing activities:

Proceeds from long-term debt
55,000

—Repayment of long-term debt and other borrowings
(55,750)

(500)Repurchase of common stock
(42,951)

(36,079)Proceeds from common stock issued to employees
3,089

3,056Taxes paid related to net share settlement of equity awards
(3,937)

(2,551)Net cash used in financing activities
(44,549)

(36,074)Effect of exchange rate changes on cash and cash equivalents and restricted cash
(836)

1,590Net increase (decrease) in cash and cash equivalents and restricted cash
(15,094)

47,249Cash and cash equivalents and restricted cash at beginning of period (1)
124,461

101,789Cash and cash equivalents and restricted cash at end of period$109,367
$149,038

Cash and cash equivalents and restricted cash at end of period

Cash and cash equivalents$109,000
$148,708Restricted cash included in other current assets
367

330Total cash, cash equivalents and restricted cash as shown in the condensed consolidated statement of cash flows$109,367
$149,038__________(1)Restricted cash included in other current assets was $356 and $332 as of December 31, 2025 and 2024, respectively. Harmonic Inc.Preliminary Condensed Consolidated Statements of Cash Flows(Unaudited, in thousands)
Three Months Ended
April 3, 2026
March 28, 2025Supplemental cash flow disclosure:

Income tax payments, net$24
$1,138Interest payments, net$879
$1,686Supplemental schedule of non-cash investing activities:

Capital expenditures incurred but not yet paid$383
$1,064 Harmonic Inc.Preliminary GAAP Revenue Information(Unaudited, in thousands, except percentages)
Three Months Ended
April 3, 2026
December 31, 2025
March 28, 2025Geography

Americas$106,43087 %
$85,22487 %
$75,02388 %EMEA
10,4599 %

9,78110 %

8,62010 %APAC
4,8064 %

3,2303 %

1,2352 %Total$121,695100 %
$98,235100 %
$84,878100 %

Customer

Top 2 customers (1)$71,10158 %
$56,36757 %
$56,50367 %Rest-of-Market
50,59442 %

41,86843 %

28,37533 %Total$121,695100 %
$98,235100 %
$84,878100 %__________(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 April 3, 2026
Revenue
Gross
Profit
Total
Operating
Expense
Operating
Profit
Total
Non-operating
Expense, net
Net IncomeGAAP$121,695
$63,615
$43,166
$20,449
$(1,121)
$11,225Stock-based compensation
—

265

(5,299)

5,564

—

5,564Discrete tax items and tax effect of Non-GAAP adjustments
—

—

—

—

—

2,004Total adjustments
—

265

(5,299)

5,564

—

7,568Non-GAAP$121,695
$63,880
$37,867
$26,013
$(1,121)
$18,793As a % of revenue (GAAP)

52.3 %

35.5 %

16.8 %

(0.9) %

9.2 %As a % of revenue (Non-GAAP)

52.5 %

31.1 %

21.4 %

(0.9) %

15.4 %Diluted net income per share:

GAAP

$0.10Non-GAAP

$0.17Shares used in per share calculation:

GAAP and Non-GAAP

110,617

Three Months Ended December 31, 2025
Revenue
Gross
Profit
Total
Operating
Expense
Operating
Profit
Total
Non-operating
Expense, net
Net IncomeGAAP$98,235
$46,180
$42,412
$3,768
$(444)
$219Stock-based compensation
—

218

(5,594)

5,812

—

5,812Discrete tax items and tax effect of Non-GAAP adjustments
—

—

—

—

—

1,186Total adjustments
—

218

(5,594)

5,812

—

6,998Non-GAAP$98,235
$46,398
$36,818
$9,580
$(444)
$7,217As 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 net income per share:

GAAP

$0.00Non-GAAP

$0.06Shares used in per share calculation:

GAAP and Non-GAAP

112,995 Harmonic Inc.GAAP to Non-GAAP Reconciliations (Unaudited)(in thousands, except percentages and per share data)
Three Months Ended March 28, 2025
Revenue
Gross
Profit
Total
Operating
Expense
Operating
Profit
Total
Non-operating
Expense, net
Net IncomeGAAP$84,878
$46,480
$39,444
$7,036
$(1,932)
$2,369Stock-based compensation
—

260

(4,757)

5,017

—

5,017Discrete tax items and tax effect of Non-GAAP adjustments
—

—

—

—

—

611Total adjustments
—

260

(4,757)

5,017

—

5,628Non-GAAP$84,878
$46,740
$34,687
$12,053
$(1,932)
$7,997As a % of revenue (GAAP)

54.8 %

46.5 %

8.3 %

(2.3) %

2.8 %As a % of revenue (Non-GAAP)

55.1 %

40.9 %

14.2 %

(2.3) %

9.4 %Diluted net income per share:

GAAP

$0.02Non-GAAP

$0.07Shares used in per share calculation:

GAAP and Non-GAAP

117,021

Three Months Ended
Three Months Ended
April 3, 2026
March 28, 2025
Continuing
Operations
Discontinued
Operations
Total
Company
Continuing
Operations
Discontinued
Operations
Total
CompanyNet income (loss) - GAAP$11,225
$(3,916)
$7,309
$2,369
$3,571
$5,940Stock-based compensation
5,564

4,246

9,810

5,017

3,448

8,465Non-recurring advisory fees
—

3,984

3,984

—

—

—Discrete tax items and tax effect of Non-GAAP adjustments
2,004

(220)

1,784

611

(1,629)

(1,018)Total adjustments
7,568

8,010

15,578

5,628

1,819

7,447Net income - Non-GAAP$18,793
$4,094
$22,887
$7,997
$5,390
$13,387As a % of revenue (GAAP)
9.2 %

(7.8) %

4.3 %

2.8 %

7.4 %

4.5 %As a % of revenue (Non-GAAP)
15.4 %

8.2 %

13.3 %

9.4 %

11.2 %

10.1 %

Diluted net income (loss) per share:

GAAP$0.10
$(0.03)
$0.07
$0.02
$0.03
$0.05Non-GAAP$0.17
$0.04
$0.21
$0.07
$0.04
$0.11

Shares used in per share calculation:

GAAP and Non-GAAP
110,617

110,617

110,617

117,021

117,021

117,021 Harmonic Inc.GAAP to Non-GAAP Reconciliations on Financial Guidance for Continuing Operations (Unaudited)(1)(In millions, except percentages and per share data)
Q2 2026 Financial Guidance
Revenue
Gross Profit
Total Operating
Expense
Operating Profit
Net IncomeGAAP$115to$125
$60to$66
$42to$43
$18to$23
$11to$15Stock-based compensation

—

—

(5)

5

5

Tax effect of Non-GAAP adjustments

—

—

—

—

—to
1Total adjustments

—

—

(5)

5

5to
6Non-GAAP$115to$125
$60to$66
$37to$38
$23to$28
$16to$21As a % of revenue (GAAP)

52.0 %to
53.0 %

36.5 %to
34.4 %

15.7 %to
18.4 %

9.6 %to
12.0 %As a % of revenue (Non-GAAP)

52.0 %to
53.0 %

32.2 %to
30.4 %

20.0 %to
22.4 %

13.9 %to
16.8 %Diluted net income per share:

GAAP

$0.10to$0.14Non-GAAP

$0.15to$0.19Shares used in per share calculation:

GAAP and Non-GAAP

109.1

FY 2026 Financial Guidance
Revenue
Gross Profit
Total Operating
Expense
Operating Profit
Net IncomeGAAP$475to$495
$237to$254
$173to$176
$64to$78
$40to$50Stock-based compensation

—

1

(22)

23

23

Total adjustments

—

1

(22)

23

23to
23Non-GAAP$475to$495
$238to$255
$151to$154
$87to$101
$63to$73As a % of revenue (GAAP)

49.9 %to
51.3 %

36.4 %to
35.6 %

13.5 %to
15.8 %

8.4 %to
10.1 %As a % of revenue (Non-GAAP)

50.0 %to
51.5 %

31.8 %to
31.1 %

18.3 %to
20.4 %

13.2 %to
14.8 %Diluted net income per share:

GAAP

$0.36to$0.45Non-GAAP

$0.57to$0.67Shares used in per share calculation:

GAAP and non-GAAP

110.0__________(1)Components may not sum to total due to rounding. View original content to download multimedia:https://www.prnewswire.com/news-releases/harmonic-announces-first-quarter-2026-results-302768183.htmlSOURCE Harmonic Inc. Original: Harmonic Announces First Quarter 2026 Results

Harmonic Announces Fourth Quarter and Fiscal 2025 ResultsFebruary 19, 2026 4:05 PM
PR Newswire (US)

Record quarterly Broadband bookings drove a 3.5 book-to-bill in Q4
Previously announced sale of Video business proceeding as anticipatedSAN 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 HighlightsTotal 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/aNet 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/aNet income (2)$0.2
$1.2
$7.2
$26.4Adjusted EBITDA (2) (3)
n/a

n/a
$12.1
$47.3Backlog and deferred revenue of $573.8 million, an increase of 73% compared to $332.3 million last yearCash: $124.1 million at December 31, 2025, compared to $101.5 million last yearRepurchased approximately 1.3 million shares of common stock for $13.3 million in Q4Continuing Operations Business Highlights - BroadbandCommercially deployed our cOS™ solution with 146 customers, serving 41.3 million cable modemsSigned several multi-year contracts, demonstrating long-term commitment and revenue resiliencyRecord Rest-of-World bookings in Q4, which should drive continued revenue growth in 2026 and beyondStrong fiber revenue growth in Q4 with multiple customers, including iZZi in MexicoCurrent 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 BusinessThe 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-GAAPKey Financial ResultsQ4 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/aNet income (loss)$0.2
$(0.5)
$38.2
$7.2
$7.5
$48.0Net 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
$65.7Bookings for the quarter

$346.9
$97.4
$87.7Backlog and deferred revenue as of quarter end

$573.8
$338.0
$332.3Cash and cash equivalents as of quarter end
$124.1
$127.4
$101.5Explanations 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
HighNet revenue$100
$105Gross margin % (2)
53.0 %

54.3 %Income from operations (3)$7
$9Tax rate
27.3 %

27.3 %Net income per share$0.04
$0.04Shares (4)
111.4

111.4

2026 GAAP Financial Guidance(Unaudited, in millions, except percentages and per share data)Low
HighNet revenue$440
$480Gross margin % (2)
50.5 %

52.5 %Income from operations (3)$46
$71Tax rate
27.3 %

27.3 %Net income per share$0.27
$0.43Shares (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
HighGross margin %
54.0 %

55.0 %Gross profit (2)$54
$58Income from operations (3)$18
$20Tax rate
24.5 %

24.5 %Net income per share$0.11
$0.12Shares (4)
111.4

111.4

2026 Non-GAAP Financial Guidance (1)(Unaudited, in millions, except percentages and per share data)Low
HighGross margin %
51.0 %

53.0 %Gross profit (2)$224
$254Income from operations (3)$74
$99Tax rate
24.5 %

24.5 %Net income per share$0.46
$0.63Shares (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 InformationHarmonic 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 MeasuresThe 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 performanceHarmonic Inc.Preliminary Condensed Consolidated Balance Sheets(Unaudited, in thousands, except par value)
As of December 31,

2025

2024ASSETS

Current assets:

Cash and cash equivalents$124,105
$101,457Accounts receivable, net of allowances for credit losses of $227 and $415 as of
December 31, 2025 and December 31, 2024, respectively
85,935

143,724Inventories
47,840

43,060Prepaid expenses and other current assets
12,530

9,888Assets held for sale
223,961

267,011Total current assets
494,371

565,140Property and equipment, net
25,648

25,162Operating lease right-of-use assets
13,687

12,411Goodwill
60,900

60,773Deferred income taxes, net
104,043

113,906Other non-current assets
19,834

19,114Total assets$718,483
$796,506LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Current portion of long-term debt$2,944
$2,194Accounts payable
23,093

28,318Deferred revenue
31,519

14,385Operating lease liabilities
6,433

5,675Other current liabilities
48,288

54,745Liabilities to be disposed of
85,671

86,966Total current liabilities
197,948

192,283Long-term debt
109,140

112,084Other borrowings
—

—Operating lease liabilities, non-current
14,664

14,727Other non-current liabilities
13,485

12,154Total liabilities
335,237

331,248Stockholders' 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

117Additional paid-in capital
2,466,177

2,432,733Accumulated deficit
(2,076,406)

(1,953,495)Accumulated other comprehensive loss
(6,636)

(14,097)Total stockholders' equity
383,246

465,258Total 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, 2024Revenue:

Appliance and integration$82,482
$157,585
$302,787
$433,795SaaS and service
15,753

13,443

57,736

54,405Total net revenue
98,235

171,028

360,523

488,200Cost of revenue:

Appliance and integration
45,790

75,412

162,129

221,745SaaS and service
6,265

5,418

23,649

26,348Total cost of revenue
52,055

80,830

185,778

248,093Total gross profit
46,180

90,198

174,745

240,107Operating expenses:

Research and development
19,660

19,679

74,958

72,574Selling, general and administrative
22,752

19,873

82,755

79,169Asset impairment and related charges
—

610

1,637

10,889Restructuring and related charges
—

465

1,315

2,741Total operating expenses
42,412

40,627

160,665

165,373Income from operations
3,768

49,571

14,080

74,734Interest expense, net
(397)

(2,262)

(3,799)

(6,465)Other income (expense), net
(47)

6,478

(1,420)

3,267Income before income taxes
3,324

53,787

8,861

71,536Provision for income taxes
3,105

15,592

7,645

20,818Income from continuing operations
219

38,195

1,216

50,718Loss 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
$0.44Discontinued 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
$0.43Discontinued 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

115,120Diluted
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, 2024Cash flows from Continuing and Discontinued Operations

Cash flows from operating activities:

Net income (loss)$(43,310)
$39,217Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation
11,082

12,139Asset impairment and related charges
1,637

12,036Impairment of goodwill
57,521

—Stock-based compensation
31,882

28,073Foreign currency remeasurement
847

315Deferred income taxes, net
8,476

(16,436)Provision for excess and obsolete inventories
3,270

10,971Other
127

569Changes in operating assets and liabilities:

Accounts receivable, net
53,908

(38,241)Inventories
(7,103)

8,374Prepaid expenses and other assets
3,302

3,199Accounts payable
(5,965)

(3,107)Deferred revenues
10,220

(2,210)Other liabilities
(17,928)

7,018Net cash provided by operating activities
107,966

61,917Cash 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

115,000Repayment of convertible debt
—

(115,500)Payments for debt issuance costs
—

(332)Proceeds from other borrowings
3,835

3,943Repayment 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

6,628Taxes 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

17,520Cash and cash equivalents and restricted cash, beginning of the year
101,789

84,269Cash 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
$101,457Restricted cash included in other current assets
356

332Total 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, 2024Supplemental cash flow disclosure:

Income tax payments, net$12,760
$27,308Interest payments, net$4,072
$6,283Supplemental schedule of non-cash investing activities:

Capital expenditures incurred but not yet paid$247
$488Supplemental 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, 2024Geography

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, 2024Geography

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
OperationsGAAP$98,235
$46,180
$42,412
$3,768
$(444)
$219Stock-based compensation
—

218

(5,594)

5,812

—

5,812Discrete tax items and tax effect of Non-GAAP adjustments
—

—

—

—

—

1,186Total adjustments
—

218

(5,594)

5,812

—

6,998Non-GAAP$98,235
$46,398
$36,818
$9,580
$(444)
$7,217As 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

$0.00Non-GAAP

$0.06Shares 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 OperationsGAAP$90,492
$42,299
$38,269
$4,030
$(561)
$(515)Stock-based compensation
—

125

(5,032)

5,157

—

5,157Restructuring and related charges
—

—

(887)

887

—

887Discrete tax items and tax effect of Non-GAAP adjustments
—

—

—

—

—

1,986Total adjustments
—

125

(5,919)

6,044

—

8,030Non-GAAP$90,492
$42,424
$32,350
$10,074
$(561)
$7,515As 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

$0.07Shares used in per share calculation:

GAAP

112,982Non-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
OperationsGAAP$171,028
$90,198
$40,627
$49,571
$4,216
$38,195Stock-based compensation
—

—

(5,868)

5,868

—

5,868Restructuring and related charges
—

—

(465)

465

—

465Asset impairment and related charges (1)
—

—

(610)

610

—

610Discrete tax items and tax effect of Non-GAAP adjustments
—

—

—

—

—

2,839Total adjustments
—

—

(6,943)

6,943

—

9,782Non-GAAP$171,028
$90,198
$33,684
$56,514
$4,216
$47,977As 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

$0.32Non-GAAP

$0.41Shares 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
OperationsGAAP$360,523
$174,745
$160,665
$14,080
$(5,219)
$1,216Stock-based compensation
—

961

(20,680)

21,641

—

21,641Restructuring and related charges
—

—

(1,315)

1,315

—

1,315Asset impairment and related charges (2)
—

—

(1,637)

1,637

—

1,637Discrete tax items and tax effect of Non-GAAP adjustments
—

—

—

—

—

620Total adjustments
—

961

(23,632)

24,593

—

25,213Non-GAAP$360,523
$175,706
$137,033
$38,673
$(5,219)
$26,429As 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

$0.01Non-GAAP

$0.23Shares 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
OperationsGAAP$488,200
$240,107
$165,373
$74,734
$(3,198)
$50,718Stock-based compensation
—

505

(18,820)

19,325

—

19,325Restructuring and related charges
—

—

(2,741)

2,741

—

2,741Asset impairment and related charges (1)
—

—

(10,889)

10,889

—

10,889Non-cash interest expense related to
convertible notes
—

—

—

—

567

567Discrete tax items and tax effect of
non-GAAP adjustments
—

—

—

—

—

(1,244)Total adjustments
—

505

(32,450)

32,955

567

32,278Non-GAAP$488,200
$240,612
$132,923
$107,689
$(2,631)
$82,996As 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

$0.43Non-GAAP

$0.71Shares 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 IncomeGAAP$219
$(55,034)
$(54,815)
$38,195
$(75)
$38,120Stock-based compensation
5,812

2,582

8,394

5,868

2,618

8,486Restructuring and related
charges
—

—

—

465

708

1,173Asset impairment and related charges
—

—

—

610

—

610Impairment 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

4,043Total adjustments
6,998

63,863

70,861

9,782

4,530

14,312Non-GAAP$7,217
$8,829
$16,046
$47,977
$4,455
$52,432As 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)
$0.32Non-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 IncomeGAAP$1,216
$(44,526)
$(43,310)
$50,718
$(11,501)
$39,217Stock-based compensation
21,641

10,239

31,880

19,325

8,748

28,073Restructuring and related charges
1,315

422

1,737

2,741

13,703

16,444Impairment of goodwill
—

57,521

57,521

—

—

—Non-recurring advisory fees
—

3,315

3,315

—

755

755Asset impairment and related charges
1,637

—

1,637

10,889

1,824

12,713Non-cash interest expense related to
convertible notes
—

—

—

567

—

567Discrete 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

52,816Non-GAAP$26,429
$27,452
$53,881
$82,996
$9,037
$92,033As 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)
$0.33Non-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, 2024Income (loss) from continuing operations (GAAP)$219
$(515)
$38,195Provision for income taxes
3,105

3,984

15,592Interest expense, net
397

1,001

2,262Depreciation
2,597

2,565

2,702EBITDA
6,318

7,035

58,751

Adjustments

Stock-based compensation
5,812

5,157

5,868Restructuring and related charges
—

887

465Lease-related asset impairment and other charges
—

—

610Adjusted EBITDA (Non-GAAP)$12,130
$13,079
$65,694Revenue$98,235
$90,492
$171,028Income (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, 2024Income from continuing operations (GAAP)

$1,216
$50,718Provision for income taxes

7,645

20,818Interest expense, net

3,799

6,465Depreciation

10,035

11,074EBITDA

22,695

89,075

Adjustments

Stock-based compensation

21,641

19,325Restructuring and related charges

1,315

2,741Lease-related asset impairment and other charges

1,637

10,889Adjusted EBITDA (Non-GAAP)

$47,288
$122,030Revenue

$360,523
$488,200Income 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
OperationsGAAP$100to$105
$53to$57
$46to$48
$7to$9
$4to$5Stock-based compensation

—

1

(10)

11

11

Tax effect of Non-GAAP adjustments

—

—

—

—

(3)to
(2)Total adjustments

—

1

(10)

11

8to
9Non-GAAP$100to$105
$54to$58
$36to$38
$18to$20
$12to$14As 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

$0.04to$0.04Non-GAAP

$0.11to$0.12Shares 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
OperationsGAAP$440to$480
$222to$252
$176to$181
$46to$71
$30to$48Stock-based compensation

—

2

(26)

28

28

Tax effect of Non-GAAP adjustments

—

—

—

—

(6)to
(5)Total adjustments

—

2

(26)

28

22to
23Non-GAAP$440to$480
$224to$254
$150to$155
$74to$99
$52to$71As 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

$0.27to$0.43Non-GAAP

$0.46to$0.63Shares 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.htmlSOURCE Harmonic Inc.

Original: Harmonic Announces Fourth Quarter and Fiscal 2025 Results