HARMONIC INC.
For the period ended Sep 26, 2025. Filed Nov 4, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 26, 2025 · Filed Nov 4, 2025
HLIT$9.51+2.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-27; filed 2025-08-01.
0000851310-25-000076
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-09-26; filed 2025-11-04.
0001193125-25-264696
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 94 previous paragraphs and 73 current paragraphs.
40 unchanged; 20 reworded; 12 added; 32 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Appliance and integration net revenue decreased by $46.1 million during the nine months ended September 26, 2025, compared to the corresponding period in 2024. The decrease was mainly due to a $56.0 million decrease in our Broadband segment, partially offset by a $9.9 million increase in the Video segment revenue.
Current report
The decreases in our Broadband segment revenue in the fiscal 2025 periods presented, relative to the corresponding prior year fiscal periods, were primarily due to customer deployment timing delays associated with DOCSIS 4.0 and network readiness. The increase in our Video segment revenue for the nine months ended September 26, 2025, relative to the corresponding period in 2024, was primarily driven by higher sales to existing customers due to improved market dynamics and recent customer wins.
Current report
SaaS and service net revenue increased by $2.5 million during the three months ended September 26, 2025, compared to the corresponding period in 2024, primarily due to a $1.6 million increase in Broadband segment support services revenue, mainly driven by an expanded customer base and a $1.9 million increase in SaaS revenue, mainly driven by higher usage from existing customers. These increases were partially offset by a $1.0 million decrease in Video segment support services revenue, resulting from the decline in appliance and integration sales over the past several years.
Current report
Research and development expenses remained relatively flat for the three months ended September 26, 2025, compared to the corresponding period in 2024.
Current report
Selling, general and administrative expenses remained relatively flat for the three months ended September 26, 2025, compared to the corresponding period in 2024.
Current report
Interest expense, net decreased by $1.5 million in the three months ended September 26, 2025, compared to the corresponding period in 2024, primarily due to lower costs of borrowing and lower outstanding principal balance resulting from the repayment and reborrowing activities under the Revolving Facility during the current period.
Current report
Other Income (Expense), Net
Current report
*Not meaningful
Current report
The provision for income taxes decreased during the three months ended September 26, 2025, and increased during the nine months ended September 26, 2025, compared to the corresponding periods in 2024. The decrease in provision for income taxes for the three months ended September 26, 2025, was largely driven by lower pretax income in the current fiscal quarter compared to the corresponding quarter of 2024. This decrease was partially offset by a non-cash adjustment of $3.3 million in the current period related to the method change for capitalization of research and development expenses under Section 174 of the Internal Revenue Code, which reduced our Internal Revenue Code Section 250 tax benefits. The increase in provision for income taxes for the nine months ended September 26, 2025, was largely driven by an increase in pretax income for the nine months ended September 26, 2025, compared to the same period in the prior year.
Current report
*Not meaningful
Current report
Our Broadband segment revenue decreased by $54.8 and $54.9 during the three and nine months ended September 26, 2025, respectively, compared to the corresponding periods in 2024. The decreases were primarily driven by appliance and integration revenues, mainly due to customer deployment timing delays associated with DOCSIS 4.0 and network readiness, which resulted in $56.5 million and $56.0 million decline for the three and nine-month periods, respectively. These decreases were partially offset by $1.6 million and $1.1 million increases in support services revenue for the three and nine-month periods, respectively, driven by expanded service offering.
Current report
Our Broadband segment operating margin declined during the three and nine months ended September 26, 2025, compared to the corresponding periods in 2024, mainly due to lower sales.
Removed paragraphs (32)
Previous report
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Previous report
The terms “Harmonic,” “Company,” “we,” “us,” “its,” and “our,” as used in this Quarterly Report on Form 10-Q (this “Form 10-Q”), refer to Harmonic Inc. and its subsidiaries and its predecessors as a combined entity, except where the context requires otherwise.
Previous report
Some of the statements contained in this Quarterly Report on Form 10-Q are forward-looking statements that involve risk and uncertainties. The statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Acts”), and Section-21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including, without limitation, statements regarding our expectations, beliefs, intentions or strategies regarding the future. In some cases, you can identify forward-looking statements by terminology such as, “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “believes,” “intends,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements regarding:
Previous report
•developing trends and demands in the markets we address, particularly emerging markets;
Previous report
•the impact of geopolitical events, including the Middle East and Russia-Ukraine conflicts and risks of escalation and broader regional conflicts, and tensions between China and Taiwan and China and the United States, on our business and the markets in which we operate;
Previous report
•new and future products and services;
Previous report
•spending of our customers;
Previous report
•our strategic direction, future business plans and growth strategy;
Previous report
•industry and customer consolidation;
Previous report
•expected demand for and benefits of our products and services;
Previous report
•concentration of revenue sources;
Previous report
•expectations regarding our Broadband and Video solutions;
Previous report
•potential future acquisitions and dispositions;
Previous report
•anticipated results of potential or actual litigation;
Previous report
•our competitive environment;
Previous report
•the impact of our restructuring plans;
Previous report
•the impact of governmental regulations, including with respect to tariffs and economic sanctions;
Previous report
•the impact of U.S. and foreign withholding taxes on our ability to repatriate funds held outside the United States;
Previous report
•anticipated revenue and expenses, including the sources of such revenue and expenses;
Previous report
•expected impacts of changes in accounting rules;
Previous report
•expectations regarding the usability of our inventory and the risk that inventory will exceed forecasted demand;
Previous report
•expectations and estimates related to goodwill and its associated carrying value; and
Previous report
•use of cash, cash needs and ability to raise capital, including repurchasing our common stock.
Previous report
These statements are subject to known and unknown risks, uncertainties and other factors, any of which may cause our actual results to differ materially from those implied by the forward-looking statements. Important factors that may cause actual results to differ from expectations include those discussed in “Risk Factors” in Item 1A of Part II of this Quarterly Report on Form 10-Q. All forward-looking statements included in this Quarterly Report on Form 10-Q are based on information available to us on the date thereof, and we assume no obligation to update any such forward-looking statements.
Previous report
Appliance and integration net revenue increased by $9.8 million during the six months ended June 27, 2025, compared to the corresponding period in 2024, primarily due to a $9.3 million increase in our Video segment revenue driven by higher sales to existing customers due to improved market dynamics and recent customer wins.
Previous report
SaaS and service net revenue decreased by $0.6 million during the three months ended June 27, 2025, compared to the corresponding period in 2024, primarily due to a $1.4 million decline in Video segment support services revenue due to lower contract renewals and a $0.6 million decline in Broadband professional services revenue during the three-month period. These decreases were partially offset by a $1.4 million increase in SaaS revenue, mainly driven by the acquisition of new customers.
Previous report
Research and development expenses increased slightly in the three months ended June 27, 2025, compared to the corresponding period in 2024, primarily due to a $1.7 million increase to support our Broadband business, partially offset by a $1.0 million decrease in the Video business due to headcount reductions from 2024 restructuring activities.
Previous report
Selling, general and administrative expenses decreased by $1.6 million in the three months ended June 27, 2025, compared to the corresponding period in 2024, primarily due to a reduction in spending resulting from headcount reductions related to 2024 restructuring activities in the Video business.
Previous report
Other Income, Net
Previous report
The changes in provision for (benefit from) income taxes during the three and six months ended June 27, 2025, compared to the corresponding periods in 2024, were primarily due to pre-tax earnings in the current periods, compared to the pre-tax losses in the prior periods.
Previous report
During the three months ended June 27, 2025, our Broadband segment revenue decreased by $6.0 million, compared to the corresponding period in 2024. The decrease was primarily driven by appliance and integration revenues, mainly attributed to the timing of projects related to the deployments of new technology by our customers. The operating margin of our Broadband segment declined during the current period, mainly due to lower sales.
Previous report
During the six months ended June 27, 2025, our Broadband segment revenue and profit margin were relatively flat, compared to the corresponding period in 2024.
Reworded paragraphs (20)
Previous wording
Our critical accounting estimates are disclosed in our 2024 Annual Report on Form 10-K, as filed with the SEC on February 14, 2025. There have been no significant changes to these estimates during the six months ended June 27, 2025.
Current wording
Our critical accounting estimates are disclosed in our 2024 Annual Report on Form 10-K, as filed with the SEC on February 14, 2025. There have been no significant changes to these estimates during the nine months ended September 26, 2025.
Previous wording
Appliance and integration net revenue was flat during the three months ended June 27, 2025, compared to the corresponding period in 2024.
Current wording
Appliance and integration net revenue decreased by $55.9 million during the three months ended September 26, 2025, compared to the corresponding periods in 2024 primarily due to a decrease in revenue from our Broadband segment.
Previous wording
SaaS and service net revenue increased by $0.5 million during the six months ended June 27, 2025, compared to the corresponding period in 2024, primarily due to a $3.3 million increase in SaaS revenue, mainly driven by the acquisition of new customers, partially offset by a $2.2 million decline in Video segment support services and a $0.6 million decrease in Broadband professional services revenue.
Current wording
SaaS and service net revenue increased by $3.1 million during the nine months ended September 26, 2025, compared to the corresponding period in 2024, primarily due to a $5.2 million increase in Video Segment SaaS revenue, mainly driven by the acquisition of new customers and a $1.1 million increase in Broadband segment support services revenue, mainly driven by an expanded customer base. These increases were partially offset by a $3.2 million decrease in Video segment support services revenue, resulting from the decline in Video appliance and integration sales over the past several years.
Previous wording
Our gross margin improved by 60 basis points in the three months ended June 27, 2025, compared to the corresponding period in 2024, primarily driven by margin expansion in the Video segment, mainly due to benefits from a favorable appliance product mix.
Current wording
Our gross margin increased by 70 basis points in the three months ended September 26, 2025, compared to the corresponding period in 2024. The increase was mainly driven by a 280 basis point margin expansion in the Broadband segment, benefiting from a favorable product mix. The increase was partially offset by a 210 basis point decrease in the Video segment, mainly due to the favorable appliance product mix in the prior period.
Previous wording
Our gross margin improved by 380 basis points in the six months ended June 27, 2025, compared to the corresponding period in 2024, driven by contributions from both the Broadband and the Video segments. The margin expansion of 230 basis points in Broadband segment and 150 basis points in Video segment were primarily driven by a favorable product mix.
Current wording
Our gross margin increased by 270 basis points in the nine months ended September 26, 2025, compared to the corresponding period in 2024, driven by contributions from both the Broadband and the Video segments. The margin expansion of 210 basis points in Broadband segment and 60 basis points in Video segment were primarily driven by a favorable product mix.
Previous wording
Research and development expenses increased by $1.3 million in the six months ended June 27, 2025, compared to the corresponding period in 2024. The increase was primarily driven by a $4.5 million increase in investments to support the growth of our Broadband business, partially offset by a $3.2 million decrease in the Video business due to headcount reductions from 2024 restructuring activities.
Current wording
Research and development expenses increased by $0.9 million in the nine months ended September 26, 2025, compared to the corresponding period in 2024. The increase was primarily attributable to $4.4 million of higher spending to support the growth of our Broadband business, partially offset by a $3.5 million decrease related to headcount reductions in our Video business from 2024 restructuring activities.
Previous wording
Selling, general and administrative expenses decreased by $3.4 million in the six months ended June 27, 2025, compared to the corresponding period in 2024, primarily due to a $5.4 million decrease in the Video business resulting from headcount reductions related to 2024 restructuring activities, partially offset by a $2.0 million increase in spending to support the growth of the Broadband business.
Current wording
Selling, general and administrative expenses decreased by $2.7 million in the nine months ended September 26, 2025, compared to the corresponding period in 2024, primarily due to a $5.8 million decrease in the Video business resulting from headcount reductions related to 2024 restructuring activities, partially offset by a $3.1 million increase in spending to support the growth of the Broadband business.
Previous wording
Restructuring and related charges in the three and six months ended June 27, 2025 decreased by $10.8 million and $13.9 million, respectively, compared to the corresponding periods in 2024, primarily due to higher severance and employee benefits costs recorded in connection with 2024 restructuring activities in the prior periods. Refer to Note 11, “Restructuring and Related Charges,” of the Notes to our condensed consolidated financial statements for additional information.
Current wording
Restructuring and related charges decreased by $13.5 million in the nine months ended September 26, 2025, compared to the corresponding periods in 2024, primarily due to higher severance and employee benefits costs recorded in connection with 2024 restructuring activities in the prior period. Refer to Note 11, “Restructuring and Related Charges,” of the Notes to our condensed consolidated financial statements for additional information.
Previous wording
Interest expense, net in the three months ended June 27, 2025 decreased slightly, compared to the corresponding period in 2024. Interest expense, net in the six months ended June 27, 2025 increased by $0.6 million, compared to the corresponding period in 2024, primarily due to higher interest rates for the borrowings under the Credit Agreement compared to the interest rate for the 2024 Notes. Refer to Note 6, “Debt,” of the Notes to our condensed consolidated financial statements for additional information regarding the interest rates applicable to our outstanding loans.
Current wording
Interest expense, net decreased by $0.9 million in the nine months ended September 26, 2025, compared to the corresponding period in 2024, primarily due to higher interest rates for the borrowings under the Credit Agreement compared to the interest rate for the 2024 Notes. Refer to Note 6, “Debt,” of the Notes to our condensed consolidated financial statements for additional information regarding the interest rates applicable to our outstanding loans.
Previous wording
Other income, net decreased in the three and six months ended June 27, 2025, compared to the corresponding periods in 2024, primarily due to lower unrealized foreign exchange gains resulting from the fluctuation of the Euro against the U.S. dollar.
Current wording
The change in other income (expense), net in the three and nine months ended September 26, 2025, respectively, compared to the corresponding periods in 2024, was primarily due to unrealized foreign exchange gains resulting from the strengthening of the Euro against the U.S. dollar in 2025, compared to unrealized foreign exchange losses in 2024.
Previous wording
During the six months ended June 27, 2025, our Video segment revenue increased by $10.4 million, compared to the corresponding period in 2024, primarily due to a $9.3 million increase in appliance and integration revenue from sales to existing customers, driven by improved market dynamics and recent customer wins. SaaS revenue also increased by $3.3 million, mainly from the acquisition of new customers. These increases were partially offset by a $2.2 million decrease in support services revenue, resulting from lower contract renewals.
Current wording
During the three months ended September 26, 2025, our Video segment revenue increased by $1.5 million, compared to the corresponding period in 2024. The increase was primarily due to a $1.9 million increase in SaaS revenue from the acquisition of new customers and a $0.6 million increase in appliance and integration revenue from sales to existing customers. The increases were partially offset by a $1.0 million decrease in support services revenue, related to overall decline in appliance and integration sales. The operating margin of our Video segment remained flat.
Previous wording
During the three months ended June 27, 2025, our Video segment revenue increased by $5.3 million, compared to the corresponding period in 2024, primarily due to a $5.3 million increase in appliance and integration revenue from sales to existing customers, driven by improved market dynamics and recent customer wins. SaaS revenue also increased by $1.4 million, mainly from the acquisition of new customers. These increases were partially offset by a $1.4 million decrease in support services revenue, resulting from lower contract renewals.
Current wording
During the nine months ended September 26, 2025, our Video segment revenue increased by $11.9 million, compared to the corresponding period in 2024, mainly driven by a $9.9 million increase in appliance and integration revenue from sales to existing customers, due to improved market dynamics and recent customer wins, and a $5.2 million increase in SaaS revenue, mainly from the acquisition of new customers. These increases were partially offset by a $3.2 million decrease in support services revenue, resulting from the overall decline in Video appliance and integration sales. The operating margin of our Video segment improved during the current period, primarily due to higher sales, gross margin expansion and savings from headcount reductions related to 2024 restructuring activities.
Previous wording
As of June 27, 2025, we had outstanding $131.2 million in aggregate principal amount of indebtedness, consisting of our $75.0 million Revolving Facility loan and our $38.5 million Term Facility loan under our Credit Agreement, and other debts, of which $8.3 million is scheduled to become due in the 12-month period following June 27, 2025. As of June 27, 2025, our total minimum lease payments are $22.9 million, of which $3.2 million is due before December 31, 2025, and $6.1 million is due within 12 months of June 27, 2025.
Current wording
As of September 26, 2025, we had outstanding $126.8 million in aggregate principal amount of indebtedness, consisting of our $75.0 million Revolving Facility loan and our $38.0 million Term Facility loan under our Credit Agreement, and other debts, of which $8.7 million is scheduled to become due in the 12-month period following September 26, 2025. As of September 26, 2025, our total minimum lease payments are $22.6 million, of which $1.6 million is due before December 31, 2025, and $6.2 million is due within 12 months of September 26, 2025.
Previous wording
In February 2025, the Board of Directors authorized us to repurchase, from time to time, up to $200 million of our outstanding shares of common stock through February 2028 (the “Share Repurchase Authorization”), at such time and such prices as management may decide. The program does not obligate us to repurchase any specific number of shares and may be discontinued at any time. As of June 27, 2025, approximately $149.9 million of the Share Repurchase Authorization remained available for repurchases under this program.
Current wording
In February 2025, the Board of Directors authorized us to repurchase, from time to time, up to $200 million of our outstanding shares of common stock through February 2028 (the “Share Repurchase Authorization”), at such time and such prices as management may decide. The program does not obligate us to repurchase any specific number of shares and may be discontinued at any time. As of September 26, 2025, approximately $134.2 million of the Share Repurchase Authorization remained available for repurchases under this program.
Previous wording
As of June 27, 2025, our principal sources of liquidity consisted of cash and cash equivalents of $123.9 million, net accounts receivable of $120.7 million, $30.0 million from our Master Receivables Purchase Agreement (described below), and $82.0 million remaining available under the Revolving Facility of our Credit Agreement, and financing from French government agencies.
Current wording
As of September 26, 2025, our principal sources of liquidity consisted of cash and cash equivalents of $127.4 million, net accounts receivable of $104.5 million, $30.0 million from our Master Receivables Purchase Agreement (described below), and $82.0 million remaining available under the Revolving Facility of our Credit Agreement, and financing from French government agencies.
Previous wording
In September 2023, we entered into a Master Receivables Purchase Agreement with JPMorgan Chase Bank N.A, as purchaser. The agreement allows us, from time to time, to sell certain eligible billed receivables in an aggregate outstanding amount of up to $30 million. On September 10, 2024, we delivered a notice to JP Morgan Chase Bank N.A. to, among other things, extend the purchase termination date to September 29, 2025. As of June 27, 2025, there were no receivables sold under this agreement.
Current wording
In September 2023, we entered into a Master Receivables Purchase Agreement with JPMorgan Chase Bank N.A, as purchaser. The agreement allows us, from time to time, to sell certain eligible billed receivables in an aggregate outstanding amount of up to $30 million. The agreement expired on September 29, 2025, and no receivables were sold under the agreement prior to its expiration.
Previous wording
Our cash and cash equivalents of $123.9 million as of June 27, 2025 consisted of bank deposits held throughout the world and money market funds, of which $43.7 million was held outside of the United States. At present, such foreign funds are considered to be indefinitely reinvested in foreign countries to the extent of indefinitely reinvested foreign earnings. In the event funds from foreign operations are needed to fund cash needs in the United States and if U.S. taxes have not already been previously accrued, we may be required to accrue and pay additional U.S. and foreign withholding taxes in order to repatriate these funds.
Current wording
Our cash and cash equivalents of $127.4 million as of September 26, 2025 consisted of bank deposits held throughout the world and money market funds, of which $40.1 million was held outside of the United States. At present, such foreign funds are considered to be indefinitely reinvested in foreign countries to the extent of indefinitely reinvested foreign earnings. In the event funds from foreign operations are needed to fund cash needs in the United States and if U.S. taxes have not already been previously accrued, we may be required to accrue and pay additional U.S. and foreign withholding taxes in order to repatriate these funds.
Previous wording
Net cash provided by operating activities increased by $67.2 million during the first six months of fiscal 2025, compared to the corresponding period in fiscal 2024. The increase was primarily driven by improved working capital performance, and a net income of $8.8 million in the current period, compared to a net loss of $20.6 million in the prior period.
Current wording
Net cash provided by operating activities increased by $82.3 million during the first nine months of fiscal 2025, compared to the corresponding period in fiscal 2024. The increase was primarily driven by improved working capital performance, and a net income of $11.5 million in the current period, compared to a net income of $1.1 million in the prior period.
Previous wording
Net cash used in investing activities increased by $1.8 million during the first six months of fiscal 2025, compared to the corresponding period in 2024, primarily due to higher purchases of property and equipment in the current period.
Current wording
Net cash used in investing activities increased by $1.6 million during the first nine months of fiscal 2025, compared to the corresponding period in 2024, primarily due to higher purchases of property and equipment in the current period.
Previous wording
Net cash used in financing activities increased by $14.0 million during the first six months of fiscal 2025, compared to the corresponding period in 2024, primarily due to the $20.1 million higher stock repurchases in the current period. These were partially offset by $3.8 million in proceeds from other loans, and a $3.0 million reduction in tax withholding payments related to net share settlement of restricted stock units.
Current wording
Net cash used in financing activities increased by $34.6 million during the first nine months of fiscal 2025, compared to the corresponding period in 2024, primarily due to the $35.7 million higher stock repurchases in the current period, partially offset by a $3.1 million reduction in tax withholding payments related to net share settlement of restricted stock units.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Restructuring and related charges increased by $0.8 million in the three months ended September 26, 2025, compared to the corresponding periods in 2024, primarily due to higher severance and employee benefits costs recorded in connection with 2025 restructuring activities.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
•macroeconomic conditions, including inflation, changes in interest rates, volatility and uncertainty in the banking and financial services sector, supply chain disruptions, tariffs, and volatile capital markets and foreign currency fluctuations, particularly in certain geographies;
Previous report — wording carried elsewhere
Video segment operating margin improved during the three months and six months ended June 27, 2025, compared to the corresponding period in 2024, primarily due to higher sales, gross margin expansion and savings from headcount reductions related to 2024 restructuring activities.