Harmonic Inc. has recently released its 10-Q report, detailing its financial performance for the three and six months ended June 27, 2025. The company, headquartered in San Jose, California, is a leading global provider of broadband solutions and video delivery software, products, and services. Harmonic operates through two segments: Broadband, which offers software-based broadband access solutions, and Video, which sells video processing, production, and playout solutions and services to various service providers and media companies.
In the three months ended June 27, 2025, Harmonic reported total net revenue of $138.0 million, a decrease of 1% compared to the corresponding period in 2024. The company's Appliance and integration net revenue remained flat at $94.1 million, while SaaS and service net revenue decreased by 1% to $44.0 million. However, in the six months ended June 27, 2025, total net revenue increased by 4% to $271.2 million, with Appliance and integration net revenue growing by 6% to $185.6 million, and SaaS and service net revenue increasing by 1% to $85.6 million.
Harmonic's gross profit for the three months ended June 27, 2025, was $73.8 million, representing a marginal increase of 0.5% compared to the same period in 2024. The company's gross margin improved by 60 basis points to 53.5%. For the six months ended June 27, 2025, gross profit increased by 12% to $152.4 million, with a gross margin of 56.2%, reflecting a 380 basis point improvement compared to the corresponding period in 2024.
Research and development expenses for the three months ended June 27, 2025, increased by 2% to $29.4 million, and for the six months ended June 27, 2025, they increased by 2% to $60.8 million. Selling, general, and administrative expenses decreased by 4% to $38.2 million in the three months ended June 27, 2025, and by 4% to $75.3 million in the six months ended June 27, 2025.
Harmonic reported total restructuring and related charges of $0.7 million for both the three and six months ended June 27, 2025, reflecting a significant decrease compared to the corresponding periods in 2024. Interest expense, net, decreased by 12% to $1.3 million in the three months ended June 27, 2025, and increased by 27% to $2.7 million in the six months ended June 27, 2025, primarily due to higher interest rates for the borrowings under the Credit Agreement.
Other income, net, decreased by 42% to $0.4 million in the three months ended June 27, 2025, and by 43% to $0.2 million in the six months ended June 27, 2025, primarily due to lower unrealized foreign exchange gains. The provision for income taxes was $0.1 million for the three months ended June 27, 2025, compared to a benefit of $3.9 million in the same period in 2024. For the six months ended June 27, 2025, the provision for income taxes was $2.6 million, compared to a benefit of $6.4 million in the corresponding period in 2024.
In terms of segment financial results, the Broadband segment reported revenue of $86.9 million in the three months ended June 27, 2025, a decrease of 6% compared to the same period in 2024. For the six months ended June 27, 2025, Broadband revenue remained relatively stable at $171.8 million.
Today the company's shares have moved -1.88% to a price of $8.35. If you want to know more, read the company's complete 10-Q report here.
