Harmonic Inc. 10-Q Report Reveals 1% Revenue Decrease

By Bobby Samwell • Sunday, August 03 15:32 • Permanent Link

Harmonic Inc. has recently released its 10-Q report, providing insight into the company's financial performance and operations. Harmonic Inc. is a global provider of broadband solutions and video delivery software, products, and services. The company operates through two segments, Broadband and Video, and conducts business in three geographic regions—the Americas, Europe, the Middle East, and Africa, and Asia-Pacific. Harmonic Inc.'s revenue is classified into two categories: "Appliance and integration" and "SaaS and service."

In the three months ended June 27, 2025, Harmonic Inc. reported total net revenue of $138.0 million, a slight decrease of 1% compared to the corresponding period in 2024. The "Appliance and integration" revenue category, which includes hardware, licenses, and professional services, remained flat at $94.1 million. However, the "SaaS and service" category, which includes usage fees for the SaaS platform and support service revenue, decreased by 1% to $44.0 million.

The company's gross profit for the same period was $73.8 million, representing a 53.5% gross margin, an improvement of 60 basis points compared to the corresponding period in 2024. The increase in gross margin was primarily driven by margin expansion in the Video segment, benefiting from a favorable appliance product mix.

Research and development expenses increased by 2% to $29.4 million, while selling, general, and administrative expenses decreased by 4% to $38.2 million in the three months ended June 27, 2025, compared to the corresponding period in 2024. Additionally, the company reported a decrease in restructuring and related charges, totaling $0.7 million, a significant decrease of 94% compared to the corresponding period in 2024.

Interest expense, net, decreased by 12% to $1.3 million, and other income, net, decreased by 42% to $0.4 million in the three months ended June 27, 2025, compared to the corresponding period in 2024. The provision for income taxes was $0.1 million, compared to a benefit from income taxes of $3.9 million in the corresponding period in 2024.

The market has reacted to these announcements by moving the company's shares -1.88% to a price of $8.35. For the full picture, make sure to review HARMONIC INC's 10-Q report.

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