Haivision Systems (HAI) investor relations material

Company overview and market positioning

• Specializes in mission-critical real-time streaming and networking for media, enterprise, and defense markets.

• Two-thirds of revenue comes from mission-based customers, including major US government agencies; one-third from broadcast clients like major sports leagues and media companies.

• Recognized as a technology leader, having invented and open-sourced the SRT protocol, now a global standard.

• Holds a strong reputation for reliability, security, and performance in high-stakes environments.

• Recently won an $80M US Navy contract, expanding its defense sector presence.

Financial performance and outlook

• Market cap of $150M, with $11M in cash and $15M in debt and leases; enterprise value at $155M.

• Trades at a significant discount to peers, with a buy rating and $7 price target based on 10.5x FY26 EBITDA.

• Fiscal 2026 estimates project 14% revenue growth and double-digit adjusted EBITDA margin.

• Gross margins have improved from 66% to 72–73% after exiting low-margin businesses.

• Consistently EBITDA positive for 18 of 21 years, with strong cash flow and a robust balance sheet.

Strategic initiatives and growth drivers

• Shifted focus to higher-margin manufacturing, exiting integration and low-margin markets.

• Positioned as a leader in 5G private networking and low-latency video technology.

• Double-digit revenue and EBITDA growth expected organically for the next 3–4 years, driven by live sports, enterprise security, and defense.

• Ongoing share buybacks reflect confidence in undervalued stock.

• Targeting rule of 30/40 for growth and profitability, aiming for valuation expansion.