Harmonic (HLIT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $133.1 million, up 9–9.1% year-over-year, with both Broadband and Video segments exceeding expectations and driving a swing to net income of $5.9 million from a prior year loss.

• Gross margin improved to 59.0% GAAP and 59.4% Non-GAAP, reflecting favorable product mix and cost efficiencies.

• Adjusted EBITDA rose to $21.1 million, and operating cash flow increased to $83.6 million, boosting the cash balance to $148.7 million after $36.1 million in share repurchases.

• Positioned for above-market growth in 2026, driven by Unified DOCSIS 4.0, customer ramps, and continued execution in Broadband and Video.

• Backlog and deferred revenue stood at $485.1 million, supporting business durability and future visibility.

Financial highlights

• Total revenue grew 9–9.1% year-over-year to $133.1 million; EPS increased to $0.11 from $0.00; net income was $5.9 million, reversing a prior year loss.

• Broadband revenue was $84.9 million (up 7.6–8% year-over-year), Video revenue $48.3 million (up 11.8–12% year-over-year), and Video SaaS revenue $14.8 million (up 15%).

• Gross margin was 59.0% GAAP and 59.4% Non-GAAP, with Broadband at 55.5% and Video at 66.4%.

• Free cash flow was $81.7 million, with cash and equivalents at $148.7 million at quarter end.

• Adjusted EBITDA margin reached 15.9%, up from 3.3% in Q1 2024.

Outlook and guidance

• Q2 2025 consolidated revenue guidance: $120–$135 million; EPS: $0.00–$0.04; adjusted EBITDA: $4–$10 million.

• Broadband revenue expected at $75–$85 million; Video at $45–$50 million; gross margin guidance: 51.1–52.0% consolidated.

• Tariff impacts estimated at $3 million for Q2; no updated full-year guidance due to tariff uncertainty.

• 2025 expected to be a below-trend revenue year for Broadband due to Unified DOCSIS 4.0 timing and tariff impacts; growth rebound anticipated in 2026.

• Company believes current liquidity and cash flow are sufficient for the next 12 months and long-term needs.