Harmonic Surpasses Q2 2025 Expectations, Withdraws Full-Year Guidance Due to Tariffs and Macro Uncertainty

Harmonic reported Q2 2025 revenue of $138.0 million, exceeding analyst estimates by 8%, and non-GAAP EPS of $0.09, a 396.5% beat. Both the video and broadband segments exceeded their respective internal guidance. Despite this, year-on-year revenue was virtually flat, and management withdrew full-year 2025 guidance due to tariff and macroeconomic uncertainty.

Harmonic Inc. (NASDAQ: HLIT) announced its unaudited results for the second quarter of 2025, reporting a strong performance across both its Video and Broadband segments. The company's revenue of $138.0 million exceeded analyst estimates by 8%, while non-GAAP EPS of $0.09 was a 396.5% beat, indicating robust financial health.

The Video segment recorded revenue of $51.1 million, an increase of 12.2% from the prior year, while the Broadband segment generated $86.9 million, a 4.4% decrease. Despite the decrease in Broadband revenue, both segments exceeded their respective internal guidance. The company's gross margin improved to 53.5% GAAP and 54.1% Non-GAAP, up from 52.9% GAAP and 53.1% Non-GAAP in the prior year.

Operating income (loss) for the quarter was $3.9 million GAAP and $13.9 million Non-GAAP, a significant improvement over the prior year's GAAP loss of $15.6 million and Non-GAAP income of $12.2 million. Net income (loss) improved to $2.9 million GAAP and $10.3 million Non-GAAP, compared to a GAAP loss of $12.5 million and Non-GAAP income of $9.3 million in the prior year.

Harmonic's backlog and deferred revenue stood at $504.5 million, and cash and cash equivalents increased to $123.9 million. The company repurchased approximately 1.6 million shares of common stock for an aggregate amount of $14.0 million.

Despite the strong quarter, Harmonic withdrew its full-year 2025 guidance due to tariff and macroeconomic uncertainty. The company's president and CEO, Nimrod Ben-Natan, stated, "We are seeing further momentum in Video and while we expect Broadband upgrade activity to persist at a moderate pace in 2025, we are beginning to see positive indicators, with improving customer ramp readiness and progress on Unified DOCSIS 4.0, which we expect will turn into tailwinds for us in 2026."

Harmonic will host a conference call to discuss its financial results at 2:00 p.m. PT (5:00 p.m. ET) on Monday, July 28, 2025. The live webcast will be available on the Harmonic Investor Relations website at http://investor.harmonicinc.com.

References:
[1] https://www.prnewswire.com/news-releases/harmonic-announces-second-quarter-2025-results-302514562.html