Download PDF

1. Company Snapshot

1.a. Company Description

Harmonic Inc., together with its subsidiaries, provide video delivery software, products, system solutions, and services worldwide.The company operates in two segments, Video and Cable Access.The Video segment sells video processing, production, and playout solutions and services to cable operators, and satellite and telecommunications Pay-TV service providers, as well as to broadcast and media, including streaming media companies.


This segment's video processing appliance solutions include network management and application software, and hardware products, such as encoders, video servers, high-density stream processing systems, and edge processors.This segment also provides software-as-a-service (SaaS) solutions, which enables the packaging and delivery of streaming services, including live streaming, video-on-demand, catch-up TV, start-over TV, network-DVR, and cloud-DVR services through HTTP streaming to various device along with dynamic and personal ad insertion.The Cable Access segment offers CableOS software-based cable access solutions; and CableOS central cloud services primarily to cable operators.


Its products enable customers to create, prepare, store, playout, and deliver a range of broadcast and streaming video services to consumer devices, including televisions, personal computers, laptops, tablets, and smart phones.The company also provides technical support and professional services, such as maintenance and support, consulting, implementation, program management, technical design and planning, building and site preparation, integration and equipment installation, end-to-end system testing, and training.It sells its products through its direct sales force, as well as through independent resellers and systems integrators.


The company was incorporated in 1988 and is headquartered in San Jose, California.

Show Full description

1.b. Last Insights on HLIT

Harmonic Inc.'s recent performance was positively driven by strong Q3 2025 earnings, with the company surpassing revenue and profitability expectations in both Broadband and Video segments. A new central management system for hybrid streaming was introduced, simplifying workflow operations and lowering costs. Additionally, Harmonic expanded its partnership with Spectrum to enhance broadband experiences across the entire subscriber base. Campbell & CO Investment Adviser LLC also made a new $412,000 investment in the company, purchasing 43,485 shares.

1.c. Company Highlights

2. Harmonic's Q3 2025 Earnings: A Strong Beat on Revenue and EPS

Harmonic's third-quarter 2025 revenue was $142.4 million, exceeding guidance, driven by strong unified RPD and fiber product shipments and year-over-year growth in broadband rest of the world. The broadband segment revenue reached $90.5 million, with a gross margin of 47.3%, while video segment revenue was $51.9 million, up 2.9% year-over-year. Non-GAAP EPS was $0.12, significantly beating estimates of $0.04517. The company's cash balance at quarter-end was $127.4 million, a year-over-year increase of $69.2 million, and free cash flow during the quarter was $21 million.

Publication Date: Nov -17

📋 Highlights
  • Revenue Exceeds Guidance:: Q3 2025 revenue of $142.4M exceeded expectations, driven by unified RPD/fiber shipments and +18% YoY growth in broadband (rest of world).
  • Broadband Segment Strength:: Generated $90.5M revenue with 47.3% gross margin, while video revenue rose 2.9% YoY to $51.9M.
  • Shareholder Returns:: $16M share repurchases in Q3, totaling $66.1M under the $200M buyback program.
  • Strong Cash Position:: Free cash flow of $21M and year-end cash balance of $127.4M (+$69.2M YoY).

Operational Highlights

The company's broadband business continues to perform well, fueled by new deployments, expanding fiber adoption, and advances in Unified DOCSIS 4.0. Harmonic's video business delivered solid execution across both appliances and SaaS streaming, with the company starting to onboard customers onto the Akamai platform, which contributed to sequential growth in video SaaS in Q3. The partnership with Comcast to enable fiber-to-the-home is also a significant development, with Comcast planning to do one million new homes a year.

Guidance and Outlook

For Q4 2025, Harmonic expects broadband revenue between $85 million to $95 million, gross margins between 48% to 50%, and adjusted EBITDA between $10 million to $16 million. The company expects modest sequential broadband revenue growth in Q1 2026 versus Q4 2025 guidance, with momentum building throughout the year, driven by the DOCSIS 4.0 transition and Unified 4.0 adoption. Analysts estimate next year's revenue growth at 20.4%, and Harmonic expects to realize a meaningful reduction in its cash income taxes by a cumulative total of approximately $50 million for both 2025 and 2026.

Valuation and Return Metrics

With a P/E Ratio of 21.77 and an EV/EBITDA of 12.48, Harmonic's valuation appears reasonable considering its growth prospects. The company's ROE is 11.02%, and ROIC is 8.17%, indicating a decent return on equity and invested capital. The Free Cash Flow Yield is 12.16%, which is a positive sign. These metrics suggest that Harmonic is well-positioned for growth, and its valuation is not overly stretched.

3. NewsRoom

Card image cap

Harmonic y Normann Engineering alcanzan un hito importante con 20 despliegues de banda ancha en Europa

Dec -03

Source: prnewswire.com

Card image cap

Harmonic und Normann Engineering erreichen einen bedeutenden Meilenstein mit 20 Breitbandinstallationen in ganz Europa

Dec -03

Source: prnewswire.com

Card image cap

Harmonic et Normann Engineering franchissent une étape importante avec 20 déploiements à large bande en Europe

Dec -03

Source: prnewswire.com

Card image cap

Harmonic and Normann Engineering Achieve Major Milestone with 20 Broadband Deployments Across Europe

Dec -03

Source: prnewswire.com

Card image cap

Harmonic Partners DeFi Development to Boost Solana Validator Revenues

Dec -02

Source: zacks.com

Card image cap

Harmonic Powers Telia's Next-Generation Broadband Upgrade in Norway

Dec -02

Source: prnewswire.com

Card image cap

Harmonic to Participate in Upcoming December 2025 Investor Conferences

Dec -01

Source: prnewswire.com

Card image cap

Geode Capital Management LLC Buys 20,774 Shares of Harmonic Inc. $HLIT

Nov -29

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.40%)

6. Segments

Broadband

Expected Growth: 10.4%

Growing demand for high-speed internet, increasing adoption of IP-based video services, and need for cost-effective infrastructure upgrades drive the growth of Harmonic's Broadband solution, enabling cable operators to deliver triple-play services over existing coaxial cables.

Video

Expected Growth: 10.4%

Growing demand for high-quality video content, increasing adoption of OTT platforms, and advancements in encoding and transcoding technologies drive the growth of Harmonic's video solutions.

7. Detailed Products

VOS360

A cloud-based video SaaS platform that enables media companies to monetize their content across multiple screens

XOS

A software-based media processing platform that enables the creation of high-quality video content

Electra XOS

A high-density, modular video processing platform that enables the creation of high-quality video content

Spectrum X

A media server platform that enables the creation and delivery of high-quality video content

ProStream

A high-density, multi-screen video processing platform that enables the creation of high-quality video content

ProMedia

A software-based video processing platform that enables the creation of high-quality video content

8. Harmonic Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Harmonic Inc. faces moderate threat from substitutes due to the availability of alternative products in the market.

Bargaining Power Of Customers

Harmonic Inc. has a large customer base, giving them significant bargaining power, which can affect the company's pricing and revenue.

Bargaining Power Of Suppliers

Harmonic Inc. has a diverse supplier base, reducing the bargaining power of individual suppliers and minimizing the risk of supply chain disruptions.

Threat Of New Entrants

Harmonic Inc. operates in a moderately competitive industry, with barriers to entry that are not too high, making it possible for new entrants to join the market.

Intensity Of Rivalry

Harmonic Inc. operates in a highly competitive industry, with many established players, leading to intense rivalry and competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.88%
Debt Cost 3.95%
Equity Weight 76.12%
Equity Cost 8.44%
WACC 7.37%
Leverage 31.38%

11. Quality Control: Harmonic Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sonim Technologies

A-Score: 4.7/10

Value: 10.0

Growth: 4.2

Quality: 4.1

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Harmonic

A-Score: 4.3/10

Value: 5.1

Growth: 6.0

Quality: 7.4

Yield: 0.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Ondas

A-Score: 4.0/10

Value: 6.0

Growth: 4.8

Quality: 3.1

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

View Full Report
Stock-Card
Akoustis Technologies

A-Score: 3.5/10

Value: 10.0

Growth: 4.9

Quality: 5.1

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

View Full Report
Stock-Card
Viasat

A-Score: 3.5/10

Value: 6.0

Growth: 1.9

Quality: 1.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Comtech

A-Score: 2.9/10

Value: 9.8

Growth: 1.2

Quality: 3.5

Yield: 1.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.69$

Current Price

9.69$

Potential

-0.00%

Expected Cash-Flows