Harmonic Inc. Reports Q2 Fiscal 2025 Results with $138M Revenue and Profit Turnaround

Harmonic Inc. reported its financial results for the second quarter of fiscal 2025, revealing a total net revenue of $138.0 million, a slight decrease of 1% from $138.7 million in the same period last year. For the first half of the fiscal year, the company generated $271.2 million in revenue, up 4% from $260.8 million in the prior year. The revenue breakdown showed that the Appliance and Integration segment contributed $94.1 million, while the SaaS and Service segment accounted for $44.0 million. The company achieved a net income of $2.9 million for the quarter, compared to a net loss of $12.5 million in the same quarter of 2024, marking a significant turnaround in profitability.

In terms of operational performance, Harmonic's gross profit for the second quarter was $73.8 million, resulting in a gross margin of 53.5%, an improvement from 52.9% in the prior year. The increase in gross margin was attributed to a favorable product mix, particularly in the Video segment. The company also reported a reduction in operating expenses, which totaled $69.9 million, down from $89.1 million a year earlier, primarily due to lower restructuring charges and a decrease in selling, general, and administrative expenses.

Harmonic's strategic initiatives included a focus on expanding its customer base and enhancing its product offerings. The company noted a 12% increase in revenue from its Video segment, driven by improved market dynamics and new customer acquisitions. However, the Broadband segment experienced a 6% decline in revenue, attributed to timing issues related to customer project deployments. The company continues to invest in research and development, with expenses rising slightly to $29.4 million, reflecting ongoing efforts to support its Broadband business.

As of June 27, 2025, Harmonic's total assets stood at $783.3 million, with cash and cash equivalents of $123.9 million, up from $101.5 million at the end of 2024. The company has also been active in managing its capital structure, having repurchased approximately 5.1 million shares for $50.1 million under its new $200 million share repurchase program authorized in February 2025. Looking ahead, Harmonic anticipates continued growth in its SaaS offerings and remains focused on leveraging its technology to capture a larger share of the broadband and video markets, despite potential challenges from economic conditions and competitive pressures.