Harmonic Inc
NASDAQ:HLIT
Harmonic Inc
Harmonic Inc. stands as a poignant example of innovation within the technology and media sectors, weaving a compelling narrative of transformation and adaptation. Founded in 1988, the company began its journey at the heart of the broadcast and cable industries, crafting solutions that address the fast-evolving demands for optimizing video delivery infrastructure. In essence, Harmonic provides the technological backbone that supports high-quality video streaming and broadcasting, offering products that range from video processing software to cable access solutions. These advancements allow broadcasters and service providers to effectively manage and distribute content, thus catering to the ever-increasing consumer appetite for seamless video experiences. This drive for innovation is exemplified by their commitment to cloud-based and software-defined network strategies, enabling clients to better monetize content and scale operations efficiently.
Harmonic’s revenue model sheds light on its strategic endeavors. By offering a mix of hardware, software, and subscription-based services, the company capitalizes on the ongoing transition from traditional broadcasting to streaming services, capturing a foothold in both realms. Their video streaming solutions enable the delivery of secure, high-quality content over the internet, a service critical for content creators and distributors eager to meet consumer expectations in the digital age. Additionally, their CableOS software provides a virtualized platform that reduces operating costs for cable providers by minimizing dependency on hardware infrastructure. As broadcasters and media companies grapple with the shift towards on-demand and OTT platforms, Harmonic stands as an essential partner, helping them navigate this change profitably. Through these efforts, the company not only maintains its relevance in a competitive landscape but also ensures steady revenue growth by addressing the core needs of its client base.
Harmonic Inc. stands as a poignant example of innovation within the technology and media sectors, weaving a compelling narrative of transformation and adaptation. Founded in 1988, the company began its journey at the heart of the broadcast and cable industries, crafting solutions that address the fast-evolving demands for optimizing video delivery infrastructure. In essence, Harmonic provides the technological backbone that supports high-quality video streaming and broadcasting, offering products that range from video processing software to cable access solutions. These advancements allow broadcasters and service providers to effectively manage and distribute content, thus catering to the ever-increasing consumer appetite for seamless video experiences. This drive for innovation is exemplified by their commitment to cloud-based and software-defined network strategies, enabling clients to better monetize content and scale operations efficiently.
Harmonic’s revenue model sheds light on its strategic endeavors. By offering a mix of hardware, software, and subscription-based services, the company capitalizes on the ongoing transition from traditional broadcasting to streaming services, capturing a foothold in both realms. Their video streaming solutions enable the delivery of secure, high-quality content over the internet, a service critical for content creators and distributors eager to meet consumer expectations in the digital age. Additionally, their CableOS software provides a virtualized platform that reduces operating costs for cable providers by minimizing dependency on hardware infrastructure. As broadcasters and media companies grapple with the shift towards on-demand and OTT platforms, Harmonic stands as an essential partner, helping them navigate this change profitably. Through these efforts, the company not only maintains its relevance in a competitive landscape but also ensures steady revenue growth by addressing the core needs of its client base.
Strong Q4 Performance: Broadband revenue in Q4 was $98.2 million, up 9% sequentially and above the high end of guidance, driven by strong bookings and customer diversification.
Record Bookings & Backlog: Q4 bookings hit a record $346.9 million with a 3.5 book-to-bill ratio, boosting backlog and deferred revenue to $573.8 million, up 73% year-over-year.
Business Transformation: The sale of the Video business to MediaKind for $145 million is on track to close in Q2 2026, positioning Harmonic as a pure-play broadband company.
Rest-of-World Momentum: Rest-of-World revenue grew 33% year-over-year in Q4, now making up 41% of total broadband revenue, showing success in customer diversification.
2026 Guidance: Full-year broadband revenue is expected between $440 million and $480 million, up 22% to 33%, with gross margins of 51% to 53% and EPS of $0.46 to $0.63.
Margin Watch: Memory chip pricing is expected to impact margins in 2026, with about a $6 million net cost increase factored into guidance.
Capital Allocation: Strong cash generation continues, with $124.1 million in cash at year-end and ongoing share repurchases under an expanded $200 million buyback program.
