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Harmonic's Impressive Results for Q4 and Fiscal Year 2025

Harmonic Inc. (Nasdaq: HLIT) has recently revealed its financial performance for the fourth quarter and the entirety of fiscal year 2025, marking a period of notable achievements and strategic positioning heading into 2026.

The company reported a remarkable increase in quarterly bookings, particularly within its Broadband business, achieving a book-to-bill ratio of 3.5 for Q4 2025. This significant metric, which illustrates the relationship between sales and new orders, highlights strong demand and sets a positive tone for the upcoming year. The surge in bookings has led to a substantial increase in backlog, providing enhanced visibility and confidence for revenue expectations moving forward.

Nimrod Ben-Natan, Harmonic's President and CEO, shared insights on the impressive results: "We ended the year with extremely strong quarterly bookings across our Broadband business." He expressed optimism about the implications of their Unified DOCSIS 4.0 products, large-scale customer deployment plans, and accelerated adoption of their services in various global markets. These factors are collectively expected to contribute to significant revenue growth in the Broadband sector during 2026.

The financial highlights of Q4 and fiscal year 2025 reflect a strong trajectory for the company:

• - Net Revenue: For Q4 2025, Harmonic reported net revenue of $157.3 million and total revenue of $570.8 million for the fiscal year.
• - Net Income/Loss: The company experienced a net loss of $(0.49) per share for Q4, and a loss of $(0.38) per share for the entire fiscal year.
• - Continuing Operations in Broadband: The segment generated revenues of $98.2 million in Q4 2025, contributing to a total of $360.5 million for the fiscal year
• - Adjusted EBITDA: The adjusted EBITDA for Q4 was reported at $12.1 million, with a fiscal year total of $47.3 million.

Additionally, Harmonic's Video business, classified as discontinued operations, exceeded revenue and profitability expectations for the quarter, contributing positively to the overall results. The anticipated sale of this business segment remains on track, with expected closure in the second quarter of 2026, aligning with the company’s capital allocation strategies.

Continuing Operations - Broadband Business: With commercial deployment of its cOS™ solution servicing 41.3 million cable modems across 146 customers, Harmonic has established a solid foundation for ongoing revenue generation. The company recorded record bookings beyond the US, indicating substantial growth potential in emerging markets.

Financially, Harmonic ended the year with a healthy cash position of $124.1 million and a backlog of $573.8 million, a 73% increase compared to the previous year. This solidifies its capacity to pursue further strategic initiatives and supports its growth objectives moving forward.

Looking Ahead: As Harmonic transitions into 2026, it remains focused on leveraging these strengths. The company’s guidance for Q1 2026 suggests maintaining a steady revenue stream with net revenue projected between $100 million and $105 million.

In conclusion, Harmonic's fourth quarter and annual results for 2025 depict a company firmly positioned for growth, driven by its innovative Broadband solutions and a robust strategy for its Video business. The upcoming year promises to be one of dynamic development and opportunities in the tech landscape. Investors and stakeholders can anticipate continued success as Harmonic navigates this transformative period in its journey.