Harmonic Inc. has recently released its 10-Q report, providing a detailed look at the company's financial performance. Harmonic Inc. is a global provider of broadband solutions and high-performance video delivery software, products, system solutions, and services. The company operates through two segments: Broadband and Video. The Broadband segment offers software-based broadband access solutions, while the Video segment sells video processing, production, and playout solutions and services to various service providers and media companies.
In the latest 10-Q report, Harmonic Inc. disclosed its financial condition and results of operations. The company's total net revenue for the second quarter of 2025 was $138.0 million, a slight decrease of 1% compared to the same period in 2024. The revenue is categorized into "Appliance and integration" and "SaaS and service," with the former accounting for 68% and the latter for 32% of total net revenue. Appliance and integration net revenue remained flat, while SaaS and service net revenue decreased by 1% during the quarter.
The gross profit for the quarter was $73.8 million, representing a 53.5% gross margin, which improved by 60 basis points compared to the same period in 2024. For the six months ended June 27, 2025, the gross margin was 56.2%, showing an improvement of 380 basis points compared to the same period in 2024.
Research and development expenses increased by 2% in the second quarter of 2025, reaching $29.4 million, while selling, general and administrative expenses decreased by 4% to $38.2 million during the same period. The company also reported a significant decrease in restructuring and related charges, which amounted to $0.7 million in the second quarter of 2025, down from $11.5 million in the same period in 2024.
Interest expense, net, decreased by 12% to $1.3 million in the second quarter of 2025, and other income, net, also decreased by 42% to $0.4 million during the same period. The provision for income taxes was $0.1 million in the second quarter of 2025, compared to a benefit from income taxes of $3.9 million in the same period in 2024.
The company operates in three geographic regions—the Americas, Europe, the Middle East, and Africa, and Asia-Pacific. Harmonic Inc. continues to focus on developing and delivering software-based broadband access technologies in the Broadband segment and products, solutions, and services to support the adoption of streaming technologies in the Video segment.
The market has reacted to these announcements by moving the company's shares -1.88% to a price of $8.35. If you want to know more, read the company's complete 10-Q report here.
