Vecima Networks (VCM) Q4 2026 earnings summary

Executive summary

• Achieved record Q4 revenue of CAD 91 million, up 36% year-over-year, and record adjusted EBITDA of $18.9 million (20.8% margin), reflecting the early returns of a long-term growth strategy and market leadership in broadband and video solutions.

• Full-year revenue reached $295.0 million, a 6% increase from the prior year, with adjusted EBITDA up 91% to $50.4 million.

• Divested the telematics business in July to focus on broadband access and streaming video, and made key executive appointments to support strategic growth.

• Expanded customer base to 150 broadband engagements, with significant wins in both cable and fiber segments, and continued leadership in Remote OLT technology.

• Entering a new phase of accelerated growth, leveraging AI-driven broadband trends and a higher-margin recurring revenue mix.

Financial highlights

• Q4 consolidated revenue reached a record $91 million, up 36% year-over-year and 45% sequentially, with gross margin at 45.4% and adjusted EBITDA of $18.9 million (20.8% of sales).

• Adjusted EBITDA increased 186% year-over-year and 70% quarter-over-quarter.

• Operating income was $12.3 million, a $29.4 million improvement from a loss last year; net income was $5.4 million, up from a $13.3 million loss.

• Working capital at year-end was $62.6 million; net debt reduced to $40.7 million from $54.4 million in Q3.

• $61.2 million CAD returned to shareholders in dividends since October 2014.

Outlook and guidance

• Raised 2026 revenue growth outlook to 27%–32% over 2025; fiscal 2027 revenue growth expected at 30%–35% over 2026.

• Adjusted EBITDA margin anticipated at approximately 20% for both calendar 2026 and fiscal 2027.

• Growth to be led by Video and Broadband Solutions segment, with new products and platforms expected to drive future performance.

• Minimal contribution from vCMTS and XGS-PON expected in fiscal 2027; these are seen as major growth drivers for fiscal 2028 and beyond.

• vCMTS expected to become a significant growth driver in FY27 as customer engagements increase.