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 adjusted EBITDA of $21.1 million, both surpassing prior guidance.

• Net income swung to $5.9 million GAAP and $13.4 million Non-GAAP, reversing a prior year loss, driven by higher sales and improved margins.

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

• Strong operating cash flow increased the cash balance to $148.7 million, even after $36.1 million in share repurchases.

• Positioned for above-market growth in 2026, driven by Unified DOCSIS 4.0, virtualized broadband, and new customer wins.

Financial highlights

• Total Q1 revenue: $133.1 million, up 9–9.1% year-over-year; EPS: $0.11 (up from $0.00); net income: $5.9 million GAAP.

• Broadband revenue: $84.9 million (+7.6–8% YoY); Video revenue: $48.3 million (+11.8–12% YoY); Video SaaS revenue: $14.8 million (+15% YoY).

• Q1 gross margin: 59.0% GAAP, 59.4% Non-GAAP, up both sequentially and year-over-year.

• Adjusted EBITDA: $21.1 million (up from $4.1 million YoY); operating income: $10.1 million GAAP.

• Backlog and deferred revenue stood at $485.1 million at quarter end.

Outlook and guidance

• Q2 2025 revenue guidance: $120–$135 million; gross margin: 50.8–52.0% (GAAP/Non-GAAP); adjusted EBITDA: $4–$10 million.

• Broadband revenue expected at $75–$85 million; Video at $45–$50 million; EPS: $0.00–$0.04.

• Guidance includes estimated $3 million tariff impact for Q2.

• No full-year 2025 guidance due to tariff and macroeconomic uncertainty.

• Long-term growth expected to resume in 2026 as industry transitions accelerate.