Harmonic (HLIT) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and FY25 results, driven by record Broadband bookings, accelerating Rest of World revenue, and a transition to a pure-play broadband business following the Video segment divestiture.

• Sale of Video business to MediaKind for $145 million is pending, expected to close in H1 2026, supporting capital allocation and strategic focus.

• Diversified customer base with Rest of World revenue up 33% YoY, now 41% of Broadband revenue.

• Customer satisfaction remains high, with an NPS of 82, reflecting strong network reliability and subscriber loyalty.

• Significant backlog and deferred revenue provide strong visibility into 2026.

Financial highlights

• Q4 2025 Broadband revenue: $98.2 million; FY25 Broadband revenue: $360.5 million; gross margin: 48.7%.

• Record Q4 bookings: $346.9 million, 3.5 book-to-bill ratio; backlog and deferred revenue at year-end: $573.8 million, up 73% YoY.

• Q4 adjusted EBITDA: $12.1 million; FY25 adjusted EBITDA: $47.3 million.

• Free cash flow for FY25: $97 million, up $44 million YoY; cash and equivalents at year-end: $124.1 million.

• Repurchased $79 million of common stock during FY25; $101 million to date under $200 million program.

Outlook and guidance

• FY26 Broadband revenue guidance: $440–$480 million; gross margin: 51–53%; EPS: $0.46–$0.63.

• Q1 2026 Broadband revenue guidance: $100–$105 million; gross margin: 54–55%; EPS: $0.11–$0.12.

• Revenue growth for 2026 forecasted at 22–33% YoY, driven by strong bookings and DOCSIS 4.0 ramp.

• Expect continued 30%+ annual growth in Rest of World/Rest of Market customers.