Harmonic Delivers Strong Third Quarter 2025 Financial Performance with Notable Growth in Video and Broadband

Harmonic's Strong Q3 2025 Results

On November 3, 2025, Harmonic Inc. (NASDAQ: HLIT) released its unaudited financial results for the third quarter of 2025, showcasing a performance that surpassed expectations across the board. President and CEO Nimrod Ben-Natan expressed satisfaction with the company's results, noting that both the Broadband and Video segments contributed positively to revenue and profitability. This success is attributed to a surge in customer orders, particularly in Broadband where some orders materialized earlier than anticipated.

Key Financial Highlights

The quarter reported a revenue of $142.4 million, a decrease compared to last year's $195.8 million but accompanied by significant progress in profitability. The breakdown of revenue highlighted a Broadband segment revenue of $90.5 million, which is a drop from $145.3 million year-over-year, while the Video segment revenue increased slightly from $50.4 million to $51.9 million. This growth in Video revenue is primarily driven by the company’s Software as a Service (SaaS) offerings, which have been well-received in the sports streaming market.

In terms of profitability, the company reported a GAAP gross margin of 54.2%, which improved compared to 53.5% in the previous year. On the Non-GAAP basis, the gross margin stood at 54.4%, edging up from 53.7% from last year. Operating income also showed a decline, with GAAP income at $9.8 million compared to $35.4 million from the previous year, reflecting the impact of cost dynamics in operations. The reported net income for the quarter was $2.7 million under GAAP, down from $21.7 million a year prior.

Business Developments

Harmonic also reported its continued growth in the area of Broadband, with 142 customers now deploying its cOS™ solution, which serves approximately 37.6 million cable modems globally. The company secured six new broadband customers during the quarter, including key contracts with fiber providers and an international Tier 1 customer. Notably, Comcast announced that it would be leveraging Harmonic's fiber-to-the-home solutions for network expansion, planning to add 1.2 million new locations in 2025.

An expanded partnership with Spectrum was also highlighted, focusing on advanced operational tools and compliance with the DOCSIS 4.0 standards that are becoming increasingly critical in the industry.

Looking Ahead

As for future projections, Harmonic anticipates that Broadband revenue growth momentum will increase significantly in 2026. The expectation is driven by ongoing infrastructure preparation for Unified DOCSIS 4.0 services and the expansion strategies of existing large customers in various regions.

Despite a slight dip in revenue compared to the previous year, Harmonic remains optimistic about its growth trajectory, particularly in the context of rising demand for video streaming and sophisticated broadband services. The company's focus on innovation, particularly in the SaaS domain and the evolution of broadband delivery, indicates a proactive approach to the competitive landscape.

Conclusion

Harmonic Inc.'s Q3 2025 financial results reflect a complex interplay of growth and challenges. While certain aspects of revenue have declined, the company’s strategic partnerships and innovative solutions position it well for a robust performance in the coming years. As the industry shifts further into the realms of technology-driven media consumption, Harmonic's readiness to adapt will likely shape its prospects for sustained growth.