Harmonic (HLIT) Raymond James TMT and Consumer Conference summary

Business overview and market positioning

• Operates in broadband access and video delivery, leading in virtualized, distributed broadband architecture with over 120 customers, including Comcast and Charter.

• Broadband business projected at $482M for the year, video business at $190M, both profitable after recent right-sizing.

• Streaming, especially live events, is a key growth area in video, with high-profile customers like Peacock for NFL and Olympics coverage.

• CEO and CFO have deep industry experience, with recent leadership changes to drive growth.

2025 outlook and industry headwinds

• Growth acceleration in broadband for 2025 is delayed due to ecosystem dependencies, especially amplifier readiness.

• DOCSIS 4.0 silicon availability is causing customers to reconsider upgrade paths, delaying some spending.

• Formal customer forecasts and Charter’s network evolution plan push major spending into 2026-2027.

• Short-term headwinds in 2025 are expected to become tailwinds in 2026 as technology matures and adoption broadens.

Technology and ecosystem developments

• Unified 4.0 amplifiers are critical for full duplex networks, with operational readiness expected to drive growth in 2026.

• New partnership with Sercomm aims to accelerate amplifier ecosystem development and supply.

• RPD devices are standardized for Unified 4.0, with amplifier choice depending on network architecture.