Harmonic (HLIT) investor relations material

Executive summary

• Q3 revenue reached $148.8M, up 64.5% YoY and above guidance; Rest-of-Market revenue grew 101% to a record 46% of sales.

• FY26 revenue guidance rose to $545M–$555M, with broadband customer diversification and growing demand supporting the outlook.

Financial highlights

• Q3 non-GAAP gross margin was 52.1% vs. 46.9% YoY; non-GAAP operating profit was $33.0M vs. $10.1M.

• Non-GAAP net income was $25.1M and diluted EPS was $0.23, vs. $7.5M and $0.07 YoY; GAAP continuing-operations income was $18.1M, or $0.16 diluted EPS.

• Backlog and deferred revenue reached $534.0M, up 58% YoY; Q3 bookings were $105.9M vs. $97.4M.

• Free cash flow was negative $5.1M, including continuing and discontinued operations; inventory increased $28.3M.

Outlook and guidance

• FY26 non-GAAP guidance: revenue $545M–$555M, gross margin 52.1%–52.4%, operating profit $118M–$124M and EPS $0.80–$0.84.

• FY26 GAAP guidance: gross margin 51.9%–52.3%, operating income $93M–$99M and diluted EPS $0.54–$0.57.

• Q4 guidance: revenue $141M–$151M, gross margin 51%–52%, operating profit $28M–$34M and non-GAAP EPS $0.19–$0.23; GAAP EPS is $0.13–$0.16.

• Guidance includes $7.6M of FY26 stranded costs tied to the Video divestiture, including $1.5M in Q4.