Vecima Networks (VCM) Q3 2026 earnings summary

Executive summary

• Raised 2026 outlook with expected revenue growth of 22.5%-30% and adjusted EBITDA growth of 74%-85% over 2025, driven by strong broadband demand, major customer contracts, and network upgrade programs.

• Q3 revenue reached CAD 64.8M, 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.

• Achieved 100% top-line revenue growth from Q1 2022 to Q3 2026, with 76% of revenue from Distributed Access (Fiber + Cable Broadband).

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

• Serving 100+ operators and 100M people globally, with 147 operator engagements and 282 active opportunities, up 15% year-over-year.

Financial highlights

• Q3 consolidated revenue: CAD 64.8M, up 1.3% year-over-year, down 12.1% sequentially; gross margin improved to 47.3% (adjusted: 50.7%).

• Adjusted EBITDA: CAD 11.3M, margin of 17.4%, up from 16.1% last year; adjusted EBITDA for Q3 FY26 was $18.8M CAD.

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

• Working capital: CAD 51.8M at March 31, 2026; net debt reduced to CAD 54.4M from CAD 92M two years ago.

• Market capitalization was $318.8M CAD as of March 31, 2026; $59.9M CAD returned to shareholders in dividends since October 2014.

Outlook and guidance

• Calendar 2026 revenue growth expected at 22.5%-30% year-over-year, with adjusted EBITDA margin at 20%+ and adjusted EBITDA growth of 74%-85%.

• Positioned to benefit from over $65B in North American broadband subsidies, with significant rural fiber buildout opportunities.

• 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.