Harmonic Inc. Reports 9% Revenue Growth to $133.1 Million in Q1 2025

Harmonic Inc. reported a net revenue of $133.1 million for the first quarter of 2025, marking a 9% increase from $122.1 million in the same period of the previous year. The growth was driven by a 12% rise in the Appliance and Integration segment, which generated $91.5 million, and a 3% increase in the SaaS and Service segment, which brought in $41.6 million. The company achieved a net income of $5.9 million, a significant turnaround from a net loss of $8.1 million in the prior year, resulting in a basic and diluted earnings per share of $0.05.

In terms of operational changes, Harmonic's gross profit improved to $78.6 million, reflecting a gross margin of 59%, up from 51.7% in the previous year. This improvement was attributed to a favorable product mix in both the Broadband and Video segments. The company also reported a decrease in total operating expenses to $68.4 million from $72.6 million, primarily due to the absence of restructuring charges that were present in the prior year. Research and development expenses rose slightly to $31.3 million, reflecting ongoing investments in product development.

Harmonic's customer base remains concentrated, with its top two customers, Comcast and Charter Communications, accounting for 46% of total revenue in the latest quarter. The company continues to focus on expanding its customer base and enhancing its product offerings, particularly in the broadband and video markets. The Broadband segment saw an 8% revenue increase, while the Video segment's revenue grew by 12%, indicating a positive trend in customer demand.

The company ended the quarter with cash and cash equivalents of $148.7 million, up from $101.5 million at the end of 2024. Harmonic has also initiated a new stock repurchase program, authorizing the repurchase of up to $200 million of its common stock through February 2028. This program is expected to enhance shareholder value, although the timing and amount of repurchases will depend on market conditions.

Looking ahead, Harmonic remains optimistic about its growth prospects, particularly in the broadband sector, as it continues to develop and deliver innovative software-based solutions. The company anticipates that its ongoing investments in research and development will position it well to capture emerging market opportunities, despite potential challenges posed by economic conditions and competitive pressures.