The analysis demonstrates Harmonic (HLIT 1. 11%), a key nology vider for broadband and ing infrastructure, released its Q2 2025 results on July 28, 2025.
The company recorded non-GAAP earnings per of $0. 09, well above the analyst consensus of $0, considering recent developments. 018 (non-GAAP)—a beat of 396. Reported revenue was $138 (quite telling).
Meanwhile, 0 million (GAAP). Reported revenue was $138, given the current landscape. 0 million, exceeding analyst estimates by 8%.
Both the and broadband segments exceeded their respective internal guidance.
Despite these top- and bottom-line beats, year-on-year revenue was virtually flat, and management characterized the period as one of strong execution amid volatile market conditions and tariff-related uncertainty.
Nevertheless, MetricQ2 2025Q3 2025 EstimateQ2 2024Y/Y ChangeEPS (Non-GAAP)$0 (this bears monitoring). Additionally, 5 %Revenue (GAAP)$138. Nevertheless, 0 million$127. At the same time, 7 million$138.
7 million(-0. 5 %)Net Income (Non-GAAP)$10. Moreover, 3 million$9. 3 million10. 8 %Gross Margin (Non-GAAP)54, in light of current trends.
0 ppAdjusted EBITDA (Non-GAAP)$17 (which is quite significant), considering recent developments. 0 million$16. 1 million5. 6 % Source: Analyst estimates vided by FactSet.
Moreover, Management expectations based on management's guidance, as vided in Q1 2025 earnings report (an important development), in this volatile climate.
Overview and Strategic FocusHarmonic supplies the software and hardware behind broadband internet, cable television, and next-generation ing, in light of current trends.
Its centers on two segments: Broadband, which ders network access solutions for internet viders, and, which serves broadcasters and ing media with cloud and appliance dery platforms, in today's market environment.
Recently, Harmonic’s strategy centers on software-led transformation, especially with its cOS virtualized broadband platform and VOS360 software-as-a-service (SaaS) for.
Success for the company now depends on innovating in fast-moving nologies, managing its concentrated customer base, and expanding internationally beyond North America.
Quarter in Review: Performance and DevelopmentsThe quarter financial outperformance.
Harmonic’s non-GAAP earnings per and GAAP revenue exceeded the high end of both its internal guidance and external analyst forecasts.
Revenue (GAAP) was flat from the same period last year, but the company dered imved fitability: Non-GAAP net income rose apximately 10. Additionally, On the other hand, 8% compared to Q2 2024.
Nevertheless, Adjusted EBITDA—a non-GAAP measure of core operating earnings—grew 5. 6% compared to Q2 2024, amid market uncertainty.
This demonstrates that non-GAAP gross margin, which shows the percentage of revenue retained after direct costs, increased to 54. 1% from 53 (noteworthy indeed).
Additionally, On the other hand, 1% a year earlier. Additionally, Segment results painted a nuanced picture. Broadband segment revenue fell 6 (this bears monitoring).
9 million compared to Q2 2024, while its gross margin (non-GAAP) dropped to 46. 5%—a decrease driven by less favorable duct mix and $3 million in estimated tariff costs.
On the other hand, Additionally, the cOS platform expanded to 136 customers and now manages 35, in today's market environment. 3 million cable modems (noteworthy indeed).
Harmonic also secured four new broadband wins, two of which were for fiber networks. The data indicates that launch of the SeaStar Optical Node, a new fiber solution, underscored investment in nology.
Performance was a highlight. Revenue for the segment (GAAP) grew by 11. 1 million compared to Q2 2024. Meanwhile, The segment’s non-GAAP gross margin imved to 67. 0%, and adjusted EBITDA reached $6.
2 million from a slight loss a year ago. Conversely, SaaS revenue climbed to a record $15. Furthermore, Conversely, 4 million, with strength in sports ing cited as a contributor.
Harmonic continued to emphasize hybrid deployments—offering both on-premises appliances and cloud-based SaaS—to meet shifting customer demands, given current economic conditions.
Bookings—a measure of new customer orders—surged over 100% compared to Q2 2024, hitting $158, amid market uncertainty. Nevertheless, Despite this, backlog and deferred revenue the quarter at $504.
5 million, still well below the $613 (which is quite significant). Additionally, 1 million position of Q2 2024. However, The company the quarter with $123 (something worth watching).
9 million in cash, helped by strong operational cash flow even after repurchasing $14. Nevertheless, 0 million in stock during the quarter.
Moreover, Customer concentration remains a material risk for Harmonic’s financials.
However, At the end of FY2024, its largest customer represented 44% of annual revenue, and its top ten accounted for 72%, given current economic conditions.
Management confirmed in Q1 2025 that customer buying patterns remained unchanged, but acknowledged that a downturn from one or two large customers would materially affect results.
At the same time, Harmonic's geographic revenue mix remains heavily weighted to the Americas at 79%, with EMEA (Europe, Middle East, and Africa) and APAC (Asia-Pacific) still making up modest portions, and APAC seeing a small recent gain.
On the nology side, transition and innovation efforts continued. The evidence shows company recently demonstrated a record-setting 14 Gbps download speed using DOCSIS 4.
0 nology at the CableLabs Interop event, underlining leadership in next-generation broadband standards (noteworthy indeed).
Nevertheless, In, management cited positive trends for both appliances and SaaS, with record SaaS revenue of $15. On the other hand, 4 million, especially in sports ing verticals.
No changes to dividends were announced. HLIT does not currently pay a dividend (fascinating analysis).
Nevertheless, Looking Ahead: Outlook and Investor ConsiderationsWith broadband segment revenue expected to remain subdued, Non-GAAP gross margin is forecast between 52, in this volatile climate.
8%, and non-GAAP earnings per are expected in the $0. However, 07 range, noticeably below this quarter’s performance, amid market uncertainty.
The company also estimated an additional $1 million tariff impact on margins, almost all in the broadband segment, in light of current trends.
Harmonic withdrew its full-year 2025 guidance due to uncertainty around U (this bears monitoring), given the current landscape. Import tariffs and broader macroeconomic developments.
Conversely, Management explained, "we could see customers potentially delay orders or have some timing shift in orders, especially if the tariffs are significant," No earnings or revenue outlook was offered for the second half of the year, and the company is taking a cautious view on future demand from its largest clients until regulatory clarity imves.
Revenue and net income presented using U (something worth watching). Moreover, In contrast, Generally accepted accounting principles (GAAP) unless otherwise noted.