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- **Revenue Beat**: Q3 revenue of $142.4 million exceeded guidance, driven by 15% broadband growth and 13.6% video SaaS expansion. 
- **DOCSIS 4.0 Leadership**: 14 cOS deployments serving 37M modems, Mediacom achieves industry-first 4.0 deployment. Fiber partnerships with Comcast add 1M homes/year.
- **Financial Strength**: $21M free cash flow, $127.4M cash, and $66.1M share buybacks. 2026 outlook positive with 4.0 adoption and SaaS growth.
- **Strategic Moves**: Pathfinder AI innovation, Akamai media services transition, and Google Ad Manager integrations drive differentiation.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue of $142.4 million exceeded guidance, driven by broadband and video segments. Broadband revenue reached $90.5 million, up 15% year-over-year, with 14 cOS deployments serving 37 million modems globally.
- **DOCSIS 4.0 Momentum**: Highlighted Mediacom's industry-first production deployment of Unified DOCSIS 4.0 on extended spectrum, GCI's network upgrades, and international wins in Europe and North America. Fiber business expanded with Comcast, adding 1 million new homes annually using Harmonic's virtual BNG and remote OLTs.
- **Innovation**: Introduced Pathfinder and Beacon Speed Maximizer for real-time network interference mitigation. Video segment SaaS streaming revenue grew 13.6% YoY to $16.1 million, powered by Akamai and Google Ad Manager integrations.

**【CFO Financial Commentary】**
- **Financial Performance**: Q3 GAAP EPS of $0.12, free cash flow of $21 million, and a $127.4 million cash balance. Broadband gross margin 47.3%, video gross margin 66.7%, reflecting strong SaaS growth and cost control.
- **Capital Allocation**: Repurchased $16 million in shares (total $66.1 million YTD) under a $200 million program. Expect 2026 growth driven by DOCSIS 4.0 adoption and fiber expansion.
- **Guidance**: Q4 2025 broadband revenue $85-95 million, video $48-52 million. 2026 outlook positive with DOCSIS 4.0 ramp-up and SaaS expansion.

**【Q&A Highlights】**
- **Customer Diversification**: Rest-of-world broadband growth 20% YoY, reducing reliance on Comcast (43% Q3 revenue). DOCSIS 4.0 transition delays Q4, but 2026 growth expected.
- **Akamai Impact**: Video SaaS growth from Akamai onboarding, with incremental revenue from VOS ad solutions.
- **Fiber Expansion**: Comcast partnership accelerates fiber deployment, aligning with 2026 growth plans.

Harmonic Inc. (HLIT) Q3 2025 Earnings Call Transcript

- **Revenue Beat Expectations**: Q2 total revenue $138 million, Broadband $86.9 million (record rest-of-world), Video $51.1 million (11.6% YoY growth).
- **Fiber and DOCSIS 4.0 Leadership**: SeaStar launch, 136 cOS deployments, 14 Gbps throughput milestone, Mediacom as key DOCSIS 4.0 customer.
- **SaaS Streaming Surge**: $15.4 million Q2, 10.1% YoY growth, Akamai partnership for premium streaming.
- **Tariff Mitigation**: Q2 impact < $1 million, Q3 guidance includes < $1 million. Operational adjustments and exemptions limit risk.
- **2026 Growth Confidence**: Unified 4.0 adoption, rest-of-world ramps, and OBBBA incentives expected to drive resumption of Broadband growth.

**【CEO Summary Section】**
- **Q2 2025 Highlights**: Total revenue of $138 million, exceeding guidance in both Broadband and Video segments. Broadband revenue reached $86.9 million, driven by record fiber revenue and rest-of-world growth. Video segment revenue was $51.1 million, with SaaS streaming contributing $15.4 million, up 10.1% YoY.
- **Broadband Momentum**: 136 cOS deployments managing 35.3 million modems, 4 new customer logos (including a Tier 2 North American operator), and record rest-of-world revenue. Fiber revenue grew with the launch of SeaStar for MDUs and a Vodafone showcase.
- **DOCSIS 4.0 Progress**: Unified RPDs in volume, RF front-end tray entering customer labs, and Mediacom as a key customer. Demonstrated 14 Gbps throughput milestone at CableLabs Interop.
- **Video Growth**: Strong SaaS streaming expansion (11.6% YoY) and appliance profitability. Akamai partnership to drive premium streaming opportunities.
- **Capital Allocation**: $50.1 million in share repurchases YTD, with plans to use free cash flow for growth and returns.

**【CFO Financial Commentary】**
- **Q2 Financials**: GAAP net income of $420 million, Non-GAAP EPS of $0.09 (up 12.5% YoY). Free cash flow of -$15.5 million, cash balance of $123.9 million (up $78 million YoY).
- **Broadband Metrics**: Revenue $86.9 million, gross margin 46.5% (down 110bps YoY due to tariffs). Rest-of-world revenue at record levels, offsetting headwinds from largest customers.
- **Video Metrics**: Revenue $51.1 million, gross margin 67% (up 260bps YoY). SaaS streaming revenue up 10.1% YoY.
- **Tariff Impact**: Q2 impact < $1 million (all Broadband), Q3 guidance includes < $1 million impact. Operational adjustments mitigated risks.
- **Q3 Guidance**: Broadband $75-85 million, Video $45-50 million. Total EPS $0.02-0.07.

**【Q&A Key Highlights】**
- **Rest-of-World Strength**: Ex-Comcast/Charter revenue >50% of total, driven by Tier 2 North America and Latin America wins. Book-to-bill ratio 1.1, up from 0.9 in Q1.
- **DOCSIS 4.0 Readiness**: Unified RPDs shipping, RF front-end trials in Q3. Mediacom deployment plans signal 2026 growth. OBBBA incentives may accelerate operator investments.
- **Tariff Strategy**: < $1 million Q3 impact. Exploring nearshore manufacturing and price adjustments. Malaysia tariff exemptions protect key products.
- **2026 Outlook**: Positive tailwinds from Unified 4.0 adoption, rest-of-world ramps, and OBBBA benefits. Management confident in resuming growth despite 2025 headwinds.
- **Video Pipeline**: Akamai partnership to contribute to SaaS growth in H2. Appliance deals and hybrid deployments support profitability.


Harmonic Inc. (HLIT) Q2 2025 Earnings Call Transcript

- **Q1 Strong Execution**: $133M revenue (+9% YoY), $21M EBITDA, $149M cash, despite macro uncertainty. 
- **Broadband Breakthroughs**: 7.6% YoY growth, 129 cOS deployments, record fiber bookings, and 13 Gbps speed demo. 
- **Video Resilience**: 11.8% YoY growth, $14.8M SaaS streaming (+15% YoY), and 66.4% gross margin. 
- **Tariff Impact**: $3M Q2 margin hit, but no customer delays; exploring nearshore manufacturing. 
- **Long-Term Growth**: $485M backlog, 2026 Unified 4.0 ramp, and expanding global fiber footprint.

**【CEO Summary Section】**
- Q1 2025 revenue reached $133 million, exceeding expectations, with adjusted EBITDA of $21 million and cash balance of $149 million. 
- Broadband revenue grew 7.6% YoY to $84.9 million, driven by cOS platform adoption (129 deployments, 33.9M modems managed). 
- Fiber bookings hit a record, with wins in Latin America and North America, and DZS ONU migration success. 
- Unified 4.0 RPDs in volume production, with 13 Gbps downstream demo showcasing industry leadership. 
- Video business delivered $48.3M revenue (+11.8% YoY), with SaaS streaming at $14.8M (+15% YoY). 
- Backlog and deferred revenue totaled $485M, reflecting long-term growth confidence despite near-term macro challenges.

**【CFO Financial Commentary】**
- Q1 GAAP EPS was $0.11, up from $0 in Q1 2024, with free cash flow of $81.7M. 
- Broadband gross margin expanded to 55.5% (vs. 47.7% Q1 2024), driven by cOS license mix. 
- Video gross margin improved to 66.4% (vs. 61.6% Q1 2024), benefiting from large refresh deals. 
- Q2 2025 guidance: Broadband revenue $75-85M (down 18-28% YoY), EBITDA $2-6M; Video revenue $45-50M. 
- Tariff impact estimated at $3M in Q2 margins, primarily affecting broadband. 
- $36.1M shares repurchased in Q1 under expanded $200M buyback program.

**【Q&A Highlights】**
- **Tariff Mitigation**: Exploring nearshore manufacturing (e.g., Mexico) and optimizing supply chain, but no customer behavior changes yet. 
- **Fiber Growth**: Pure-play telco wins (e.g., Latin America) and hybrid DOCSIS/Fiber deployments driving Rest of World expansion. 
- **Unified 4.0 Timing**: Delays in amplifier availability could push deployments into 2026, but no customer delays observed to date. 
- **SaaS Momentum**: Akamai partnership to contribute mid-2025; 15% YoY growth in streaming business. 
- **Liquidity**: $148.7M cash + $82M undrawn credit facility provide flexibility for tariffs and M&A.

Harmonic (HLIT)-28 Apr 25-2025 Q1 Earnings call transcript

- **2024 Record Growth**: Total revenue up 33% YoY to $222.2M, driven by broadband leadership and video SaaS recovery.
- **2025 Caution, 2026 Rebound**: Broadband revenue expected down 10-20% YoY in 2025 due to DOCSIS 4.0 transition, but 13% CAGR 2023-2028 outlook maintained.
- **$200M Buyback Signal**: Share repurchase program doubles prior commitment, reflecting confidence in long-term broadband growth.
- **Rest of World Surge**: Q4 Rest of World broadband revenue +50% QoQ, 5 new customers added, positioning for 2025 expansion.

**【CEO Key Highlights】**
- **2024 Record Performance**: Total revenue reached $222.2M in Q4, up 33% YoY. Broadband revenue hit $171M, driven by DOCSIS 4.0 leadership and Rest of World growth exceeding 50% QoQ. Video segment returned to profitability with SaaS revenue at $15.1M.
- **2025 Outlook**: Anticipates below-trend broadband growth due to Unified DOCSIS 4.0 transition, but expects 2026+ rebound with Dell'Oro projecting 13% CAGR for virtual CMTS/DAA market. Launched $200M 3-year share buyback program.
- **Strategic Wins**: Secured 5 new customers in Q4, including Blue Stream Fiber and IPKO. Rest of World revenue grew 50% QoQ, positioning for 2025 expansion.

**【CFO Financial Breakdown】**
- **Q4 2024 Results**: GAAP net income $42.0M, Non-GAAP EPS $0.45 (up 246% YoY). Cash balance $101.5M, up $43.3M QoQ. Broadband gross margin 52.7% (1030bps YoY improvement). Video gross margin 67.4% (280bps YoY improvement).
- **2025 Guidance**: Broadband revenue $400-450M (down 10-20% YoY), adjusted EBITDA $77-106M. Video revenue $185-195M, EBITDA $8-17M. Full-year EPS $0.43-0.68.
- **Capital Allocation**: $200M share buyback program announced, funded by free cash flow. Target net leverage <2x, liquidity >$100M.

**【Q&A Key Takeaways】**
- **Market Dynamics**: Unified DOCSIS 4.0 transition causing 2025 delays, but 2026+ acceleration expected. Market share remains strong (>90% virtual CMTS, >60% remote devices).
- **Customer Behavior**: Top 2 customers (Comcast, Charter) have different deployment paces, but Rest of World growth offsets headwinds. Rogers deployment expected H2 2025.
- **Inventory Management**: Took $5M inventory provision for DOCSIS 3.1 transition. Days sales outstanding improved to 72 (vs 80 Q3), inventory days 59 (vs 73 Q3).

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