Vecima Networks (VCM) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached CAD 64.8 million, up 1.3% year-over-year, with gross margin at 47.3% and adjusted EBITDA margin at 17.4%, reflecting operational efficiencies and margin expansion.

• Adjusted EBITDA grew 9.2% year-over-year to CAD 11.3 million, while net loss was CAD 0.2 million (CAD 0.01 per share); adjusted net income was CAD 1.6 million (CAD 0.06 per share).

• Major multi-year DOCSIS 4.0 agreement signed with Charter Communications, expanding deployment of next-gen cable and fiber access technologies, including Entra ERM422.

• Customer demand visibility improved, with strong broadband demand and major network upgrade programs supporting long-term growth.

Financial highlights

• Q3 consolidated revenue: CAD 64.8 million, up 1.3% year-over-year, down 12.1% sequentially.

• Adjusted EBITDA: CAD 11.3 million, margin of 17.4%, up from 16.1% last year.

• Net loss: CAD 0.2 million (CAD 0.01 per share) vs. net income of CAD 1.2 million (CAD 0.05 per share) last year; adjusted net income: CAD 1.6 million (CAD 0.06 per share).

• Cash flow from operations: CAD 19.5 million, up from CAD 4.4 million used in the same period last year.

• Working capital: CAD 51.8 million, up from CAD 51.2 million at June 2025; net debt reduced to CAD 54.4 million from CAD 92 million two years ago.

Outlook and guidance

• Calendar 2026 revenue growth outlook raised to 22.5%-30%, with adjusted EBITDA growth of 74%-85% and margins expected to exceed 20%.

• Growth led by Video and Broadband Solutions segment, supported by major customer contracts and global DAA-based network upgrades.

• Management anticipates new quarterly revenue records starting in Q4 FY26, driven by Entra fiber and cable-access products.

• CDS segment expected to rebound in Q4; Telematics to maintain steady, high-margin performance.