Harmonic Inc. (NASDAQ: HLIT) has released its unaudited results for the second quarter of 2025, showcasing a strong performance in both its video and broadband businesses. Here are the key financial and business highlights:
Financial Metrics: Revenue for the second quarter of 2025 amounted to $138.0 million, slightly below the $138.7 million reported in the prior year period. Gross margin improved, with GAAP at 53.5% and non-GAAP at 54.1%, compared to GAAP 52.9% and non-GAAP 53.1% in the prior year period. Operating income saw a significant turnaround, with GAAP income at $3.9 million and non-GAAP income at $13.9 million, compared to a GAAP loss of $15.6 million and non-GAAP income of $12.2 million in the prior year period. Net income also showed improvement, with GAAP net income at $2.9 million and non-GAAP net income at $10.3 million, compared to a GAAP net loss of $12.5 million and non-GAAP net income of $9.3 million in the prior year period. * Non-GAAP adjusted EBITDA increased to $17.0 million, up from $16.1 million in the prior year period.
Business Highlights: Harmonic commercially deployed its costm solution with 136 customers, serving 35.3 million cable modems. The company won four new broadband customers, including two fiber customers. Harmonic announced the introduction of the SeaStarTM optical node, which redefines broadband connectivity for low-density multiple dwelling units. A record-breaking DOCSIS 4.0 demonstration of 14 Gbps downstream across a multi-vendor network at the CableLabs® interop event was recently announced. * The video SaaS revenue for Q2 reached $15.4 million, reflecting continued growth, especially in sports streaming.
Comparison of Financials: Net revenue for Q2 2025 was $138.0 million, compared to $133.1 million in Q1 2025 and $138.7 million in Q2 2024. Net income (loss) per share for Q2 2025 was $0.03, compared to $0.05 in Q1 2025 and $(0.11) in Q2 2024. Adjusted EBITDA for the quarter was $17.0 million in Q2 2025, $21.1 million in Q1 2025, and $16.1 million in Q2 2024. Backlog and deferred revenue as of quarter-end were $504.5 million in Q2 2025, $485.1 million in Q1 2025, and $613.1 million in Q2 2024.
Looking ahead, Harmonic provided financial guidance for Q3 2025, projecting net revenue of $120 million and gross margin of 52.5%. In addition, the company expects non-GAAP adjusted EBITDA of $7 million for the quarter.
As a result of these announcements, the company's shares have moved 1.56% on the market, and are now trading at a price of $9.14. Check out the company's full 8-K submission here.
