Harmonic Inc. reported fourth‑quarter 2025 results that highlighted a net revenue of $98.2 million for its continuing Broadband operations, a decline from $171.0 million in the same period a year earlier. The company’s total‑company revenue, which includes the divestiture of its Video business, reached $570.8 million for the quarter and $157.3 million for the full year. Harmonic posted a net loss of $0.49 per share for the quarter and the year, largely driven by a $57.5 million goodwill impairment related to the sale of its Video business. Adjusted EBITDA for the quarter was $12.1 million for continuing operations, and the company recorded $346.9 million in bookings, translating into a 3.5‑to‑1 book‑to‑bill ratio that signals robust demand for its broadband platform.
The Q4 2025 continuing‑operations revenue miss reflects a mix shift that reduced the proportion of higher‑margin contracts. While the full‑year revenue of $570.8 million includes the $145 million sale of the Video business to MediaKind, the continuing‑operations revenue of $98.2 million fell short of the consensus estimate of $142.1 million. The goodwill impairment and the one‑time charge for the divestiture contributed to the net loss, but the company’s core broadband business maintained a 48.7% gross margin and $12.1 million in adjusted EBITDA, indicating that operating leverage remains intact.
"We ended the year with extremely strong quarterly bookings across our Broadband business. These bookings drove a 3.5 book‑to‑bill for the quarter and a substantial year‑over‑year increase in backlog, which significantly improves our visibility for 2026," said President and CEO Nimrod Ben‑Natan. "Broadband revenue for the quarter was $98.2 million, representing 9% sequential growth and coming in above the high end of guidance," he added. CFO Walter Jankovic noted, "For total company results, including Video discontinued operations, revenue was $157.3 million, EPS was $0.14 and adjusted EBITDA was $23.8 million, all well above our Q4 guidance."
For the first quarter of 2026, Harmonic guided for net revenue of $100 million to $105 million for its continuing operations, a figure that does not represent a modest increase from the prior year’s $90.5 million but rather reflects sequential growth. The company reiterated its outlook for a 3.5‑to‑1 book‑to‑bill ratio and emphasized that the sale of its Video business, announced in December 2025 for approximately $145 million, is expected to close in the first half of 2026. The divestiture is intended to sharpen Harmonic’s focus on broadband and to eliminate stranded costs associated with the legacy video portfolio.
The results underscore a mixed outlook. Strong bookings and a high book‑to‑bill ratio point to future revenue upside, yet the revenue miss for continuing operations highlights headwinds such as a shift toward lower‑margin contracts and the impact of memory price increases on gross margin. Management signals confidence in the broadband market, citing the rollout of DOCSIS 4.0 and the BEAD initiative as tailwinds, while acknowledging that the revenue miss and margin compression will require disciplined cost management in the short term. Investors reacted with caution, focusing on the revenue miss in the core business rather than the total‑company EPS beat.
Harmonic’s strategic pivot to a pure‑play broadband company, coupled with its robust backlog and guidance for the first quarter of 2026, suggests a trajectory of growth once the company fully integrates the divestiture and capitalizes on emerging broadband demand. The earnings release provides critical insight into the company’s execution and future prospects, warranting attention from long‑term investors.
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