Harmonic Announces Fourth Quarter and Fiscal 2025 Results

Record quarterly Broadband bookings drove a 3.5 book-to-bill in Q4

Previously announced sale of Video business proceeding as anticipated

SAN JOSE, Calif., Feb. 19, 2026 /PRNewswire/ -- Harmonic Inc. (Nasdaq: HLIT) today announced its unaudited results for the fourth quarter and fiscal year ended December 31, 2025.

"We ended the year with extremely strong quarterly bookings across our Broadband business," said Nimrod Ben-Natan, president and chief executive officer of Harmonic. "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. We expect this momentum, combined with Unified DOCSIS 4.0 ramps, large customer deployment plans and Rest-of-World accelerated adoption, will contribute to strong Broadband revenue growth this year. Furthermore, the Video business, presented as discontinued operations, exceeded both revenue and profitability expectations for the quarter. The planned sale of this business remains on track to close in the second quarter, which will further support our capital allocation priorities."

Financial and Business Highlights

Total Company Financial Results

GAAP

Non-GAAP

Q4 2025

FY 2025

Q4 2025

FY 2025

(Unaudited, in millions, except per share data)

Net revenue

157.3

570.8

n/a

Net income (loss) per share

(0.49)

(1)

(0.38)

(1)

0.14

0.47

Continuing Operations Financial Results - Broadband

GAAP

Non-GAAP

Q4 2025

FY 2025

Q4 2025

FY 2025

(Unaudited, in millions, except per share data)

Net revenue

98.2

360.5

n/a

Net income (2)

0.2

1.2

7.2

26.4

Adjusted EBITDA (2) (3)

n/a

12.1

47.3

Continuing Operations Business Highlights - Broadband

_______________

(1) Includes goodwill impairment on Video business of $57.5 million.

(2) Includes approximately $3.0 million and $9.0 million of stranded costs associated with the Video divestiture for Q4 and FY 2025, respectively.

(3) Adjusted EBITDA is a Non-GAAP financial measure. Refer to reconciliation below for a reconciliation to net income, the most comparable GAAP measure.

Discontinued Operations - Video Business

The results of the Company's Video Business are presented as held-for-sale and discontinued operations in its Consolidated Statements of Operations and Consolidated Balance Sheets for all periods presented in this press release. As previously announced, on December 8, 2025, the Company entered into a Put Option Agreement to sell its Video business to Leone Media Inc. (d/b/a MediaKind) (the "Buyer") for a purchase price of $145 million in cash (the "Disposition"). The purchase price is subject to a potential adjustment based on the amount, on the date the Disposition is consummated, of net working capital of the Video business, the cash and debt of the entities to be sold in the Disposition, as well as the amount of specified selling expenses. As such, and unless stated otherwise, all results presented in the following table reflect those of continuing operations. The Disposition, which is expected to close in the first half of 2026, is subject to the satisfaction of customary closing conditions, including the completion of the required consultation process with the French employee works council.

Select Financial Information from Continuing Operations

GAAP

Non-GAAP

Key Financial Results

Q4 2025

Q3 2025

Q4 2024

Q4 2025

Q3 2025

Q4 2024

(Unaudited, in millions, except per share data)

Net revenue

98.2

90.5

171.0

n/a

Net income (loss)

0.2

(0.5)

38.2

7.2

7.5

48.0

Net income (loss) per share

0.00

(0.00)

0.32

0.06

0.07

0.41

Other Financial Information

Q4 2025

Q3 2025

Q4 2024

(Unaudited, in millions)

Adjusted EBITDA for the quarter (1)

12.1

13.1

65.7

Bookings for the quarter

346.9

97.4

87.7

Backlog and deferred revenue as of quarter end

573.8

338.0

332.3

Cash and cash equivalents as of quarter end

124.1

127.4

101.5

Explanations regarding our use of Non-GAAP financial measures and related definitions, and reconciliations of our GAAP and Non-GAAP measures, are provided in the sections below entitled "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations."

Financial Guidance for Continuing Operations - Broadband

Q1 2026 GAAP Financial Guidance

(Unaudited, in millions, except percentages and per share data)

Low

High

Net revenue

100

105

Gross margin % (2)

53.0 %

54.3 %

Income from operations (3)

Tax rate

27.3 %

Net income per share

0.04

Shares (4)

111.4

2026 GAAP Financial Guidance

(Unaudited, in millions, except percentages and per share data)

Low

High

Net revenue

440

480

Gross margin % (2)

50.5 %

52.5 %

Income from operations (3)

Tax rate

27.3 %

Net income per share

0.27

0.43

Shares (4)

111.7

_______________

(1) Adjusted EBITDA is a Non-GAAP financial measure. Refer to reconciliation below for a reconciliation to net income, the most comparable GAAP measure.

(2) Includes approximately $1.0 million and $4.0 million of estimated tariff impacts for Q1 and FY 2026, respectively.

(3) Includes approximately $2.0 million and $10.0 million of stranded costs associated with Video divestiture for Q1 and FY 2026, respectively.

(4) Diluted shares assumes stock price at $10.07 (Q4 2025 average price).

Financial Guidance for Continuing Operations - Broadband

Q1 2026 Non-GAAP Financial Guidance (1)

(Unaudited, in millions, except percentages and per share data)

Low

High

Gross margin %

54.0 %

55.0 %

Gross profit (2)

Income from operations (3)

Tax rate

24.5 %

Net income per share

0.11

0.12

Shares (4)

111.4

2026 Non-GAAP Financial Guidance (1)

(Unaudited, in millions, except percentages and per share data)

Low

High

Gross margin %

51.0 %

53.0 %

Gross profit (2)

224

254

Income from operations (3)

Tax rate

24.5 %

Net income per share

0.46

0.63

Shares (4)

111.7

_______________

(1) Refer to "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations on Financial Guidance" below. Components may not sum to total due to rounding.

(2) Includes approximately $1.0 million and $4.0 million of estimated tariff impacts for Q1 and FY 2026, respectively.

(3) Includes approximately $2.0 million and $10.0 million of stranded costs associated with Video divestiture for Q1 and FY 2026, respectively.

(4) Diluted shares assumes stock price at $10.07 (Q4 2025 average price).

Conference Call Information

Harmonic will host a conference call to discuss its financial results at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, February 19, 2026. The live webcast will be available on the Harmonic Investor Relations website at http://investor.harmonicinc.com. To participate via telephone, please register in advance using this link, https://register-conf.media-server.com/register/BI1e7644dc1c1b4189836e0b9cc656d1e3. A replay will be available after 5:00 p.m. PT on the same website.

About Harmonic Inc.

Harmonic (NASDAQ: HLIT), the worldwide leader in virtualized broadband and video delivery solutions, enables media companies and service providers to deliver ultra-high-quality video streaming and broadcast services to consumers globally. The company revolutionized broadband networking via the industry's first virtualized broadband solution, enabling operators to more flexibly deploy gigabit internet service to consumers' homes and mobile devices. Whether simplifying OTT video delivery via innovative cloud and software platforms, or powering the delivery of gigabit internet services, Harmonic is changing the way media companies and service providers monetize live and on-demand content on every screen. More information is available at www.harmonicinc.com.

Legal Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements related to the timing of the pending sale of our Video business and anticipated benefits of the proposed transaction; Broadband revenue growth from anticipated customer purchases and deployments of our Unified DOCSIS 4.0 and other solutions; and our expectations regarding: net revenue, gross margins, operating expenses, operating income (loss), Adjusted EBITDA, tax expense and tax rate, and net income (loss) per diluted share. Our expectations regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, but are not limited to, in no particular order, the following: the possibility that the pending sale of the Video business does not close due to regulatory approvals not being obtained or other closing conditions not being fulfilled; the pending transaction encounters unanticipated delays or is postponed or cancelled due to a material adverse event or change; anticipated benefits for Harmonic as a result of the pending transaction do not fully materialize; customer concentration and consolidation; loss of one or more key customers; delays or decreases in capital spending in the cable or telco industries; the possibility that our products will not generate sales that are commensurate with our expectations or that our cost of revenue or operating expenses may exceed our expectations; the market and technology trends underlying our Broadband business will not continue to develop in their current direction or pace; the impact of tariffs and general economic conditions on our sales and operations; the mix of products and services sold in various geographies and the effect it has on gross margins; our ability to develop new and enhanced products in a timely manner and market acceptance of our new or existing products; risks associated with our international operations; exchange rate fluctuations of the currencies in which we conduct business; risks associated with our cOS™ product solutions; dependence on various broadband industry trends; inventory management; the lack of timely availability or the impact of increases in the prices of parts or raw materials necessary to produce our products; the effect of competition, on both revenue and gross margins; difficulties associated with rapid technological changes in our markets; risks associated with unpredictable sales cycles; our dependence on contract manufacturers and sole or limited source suppliers; stock repurchases may not be conducted in the timeframe or in the manner we expect, or at all; and the impact on our business of natural disasters. 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. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Harmonic's filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K for the year ended December 31, 2024, our most recent Quarterly Report on Form 10-Q and our Current Reports on Form 8-K. The forward-looking statements in this press release are based on information available to the Company as of the date hereof, and Harmonic disclaims any obligation to update any forward-looking statements.

Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP" or referred to herein as "reported"). However, management believes that certain Non-GAAP financial measures provide management and other users with additional meaningful financial information that should be considered when assessing our ongoing performance. Our management regularly uses our supplemental Non-GAAP financial measures internally to understand, manage and evaluate our business, establish operating budgets, set internal measurement targets and make operating decisions.

These Non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from Non-GAAP measures used by other companies. In addition, these Non-GAAP measures are not based on any comprehensive set of accounting rules or principles. The Company believes that Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Harmonic's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Harmonic's results of operations in conjunction with the corresponding GAAP measures.

The Company believes that the presentation of Non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provide useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the Company's reported results prepared in accordance with GAAP.

The Non-GAAP measures presented here are: Gross profit, operating expenses, income (loss) from operations, non-operating expenses and net income (loss), Adjusted EBITDA (including those amounts as a percentage of revenue) and net income (loss) per diluted share. The presentation of Non-GAAP information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP, and is not necessarily comparable to Non-GAAP results published by other companies. A reconciliation of the historical Non-GAAP financial measures discussed in this press release to the most directly comparable historical GAAP financial measures is included with the financial statements provided with this press release. The Non-GAAP adjustments described below have historically been excluded from our GAAP financial measures.

Our Non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

Stock-based compensation - Although stock-based compensation is a key incentive offered to our employees, we continue to evaluate our business performance excluding stock-based compensation expenses. We believe that management is limited in its ability to project the impact stock-based compensation would have on our operating results. In addition, for comparability purposes, we believe it is useful to provide a Non-GAAP financial measure that excludes stock-based compensation in order to better understand the long-term performance of our core business and to facilitate the comparison of our results to the results of our peer companies.

Restructuring and related charges - Harmonic from time to time incurs restructuring charges which primarily consist of employee severance, one-time termination benefits related to the reduction of its workforce, and other costs. These charges are associated with material business shifts. We exclude these items because we do not believe they are reflective of our ongoing long-term business and operating results.

Non-cash interest expense related to convertible notes - We record the amortization of issuance costs as non-cash interest expense. We believe that excluding these costs provides meaningful supplemental information regarding operational performance and liquidity, along with enhancing investors' ability to view the Company's results from management's perspective. In addition, we believe excluding these costs from the Non-GAAP measures facilitates comparisons to our historical operating results and comparisons to peer company operating results.

Depreciation - Depreciation expense is excluded from Adjusted EBITDA as this is a non-cash item unrelated to the ordinary course of our business and not reflective of our underlying business performance.

Non-recurring advisory fees - There were non-recurring costs that we excluded from Non-GAAP results relating to professional accounting, tax and legal fees associated with strategic corporate initiatives.

Asset impairment and related charges - We exclude impairment and related charges due to the nature of such expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of impairments of goodwill, fixed assets, right-of-use assets and related leasehold improvements, and other unrecoverable facility costs due to the intended change in use of certain leased space.

Discrete tax items and tax effect of Non-GAAP adjustments - The income tax effect of Non-GAAP adjustments relates to the tax effect of the adjustments that we incorporate into Non-GAAP financial measures in order to provide a more meaningful measure of Non-GAAP net income. It also includes a non-cash adjustment related to the method change for capitalization of research and development expenses under Section 174 of the Internal Revenue Code, which reduced our foreign-derived intangible income (FDII) tax benefits. This non-recurring adjustment has been excluded from the Company's non-GAAP tax rate and non-GAAP financial measures, as management believes exclusion of this item provides more meaningful period-to-period comparisons of ongoing operating performance

Harmonic Inc.

Preliminary Condensed Consolidated Balance Sheets

(Unaudited, in thousands, except par value)

As of December 31,

2025

2024

ASSETS

Current assets:

Cash and cash equivalents

124,105

101,457

Accounts receivable, net of allowances for credit losses of $227 and $415 as of

December 31, 2025 and December 31, 2024, respectively

85,935

143,724

Inventories

47,840

43,060

Prepaid expenses and other current assets

12,530

9,888

Assets held for sale

223,961

267,011

Total current assets

494,371

565,140

Property and equipment, net

25,648

25,162

Operating lease right-of-use assets

13,687

12,411

Goodwill

60,900

60,773

Deferred income taxes, net

104,043

113,906

Other non-current assets

19,834

19,114

Total assets

718,483

796,506

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Current portion of long-term debt

2,944

2,194

Accounts payable

23,093

28,318

Deferred revenue

31,519

14,385

Operating lease liabilities

6,433

5,675

Other current liabilities

48,288

54,745

Liabilities to be disposed of

85,671

86,966

Total current liabilities

197,948

192,283

Long-term debt

109,140

112,084

Other borrowings

—

Operating lease liabilities, non-current

14,664

14,727

Other non-current liabilities

13,485

12,154

Total liabilities

335,237

331,248

Stockholders' equity:

Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding

—

Common stock, $0.001 par value, 150,000 shares authorized; 111,186 and

116,735 shares issued and outstanding at December 31, 2025 and 2024, respectively

111

117

Additional paid-in capital

2,466,177

2,432,733

Accumulated deficit

(2,076,406)

(1,953,495)

Accumulated other comprehensive loss

(6,636)

(14,097)

Total stockholders' equity

383,246

465,258

Total liabilities and stockholders' equity

718,483

796,506

Harmonic Inc.

Preliminary Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share data)

Three Months Ended

Year Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

Revenue:

Appliance and integration

82,482

157,585

302,787

433,795

SaaS and service

15,753

13,443

57,736

54,405

Total net revenue

98,235

171,028

360,523

488,200

Cost of revenue:

Appliance and integration

45,790

75,412

162,129

221,745

SaaS and service

6,265

5,418

23,649

26,348

Total cost of revenue

52,055

80,830

185,778

248,093

Total gross profit

46,180

90,198

174,745

240,107

Operating expenses:

Research and development

19,660

19,679

74,958

72,574

Selling, general and administrative

22,752

19,873

82,755

79,169

Asset impairment and related charges

—

610

1,637

10,889

Restructuring and related charges

—

465

1,315

2,741

Total operating expenses

42,412

40,627

160,665

165,373

Income from operations

3,768

49,571

14,080

74,734

Interest expense, net

(397)

(2,262)

(3,799)

(6,465)

Other income (expense), net

(47)

6,478

(1,420)

3,267

Income before income taxes

3,324

53,787

8,861

71,536

Provision for income taxes

3,105

15,592

7,645

20,818

Income from continuing operations

219

38,195

1,216

50,718

Loss from discontinued operations, net of tax

(55,034)

(75)

(44,526)

(11,501)

Net income (loss)

(54,815)

38,120

(43,310)

39,217

Net income (loss) per share:

Basic:

Continuing operations

0.00

0.33

0.01

0.44

Discontinued operations

(0.49)

(0.00)

(0.39)

(0.10)

Basic earnings (loss) per share

(0.49)

0.33

(0.38)

0.34

Diluted:

Continuing operations

0.00

0.32

0.01

0.43

Discontinued operations

(0.49)

(0.00)

(0.39)

(0.10)

Diluted earnings (loss) per share

(0.49)

0.32

(0.38)

0.33

Weighted average common shares:

Basic

112,089

116,619

113,660

115,120

Diluted

112,995

117,699

114,182

117,482

Harmonic Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

Year Ended

December 31, 2025

December 31, 2024

Cash flows from Continuing and Discontinued Operations

Cash flows from operating activities:

Net income (loss)

(43,310)

39,217

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation

11,082

12,139

Asset impairment and related charges

1,637

12,036

Impairment of goodwill

57,521

—

Stock-based compensation

31,882

28,073

Foreign currency remeasurement

847

315

Deferred income taxes, net

8,476

(16,436)

Provision for excess and obsolete inventories

3,270

10,971

Other

127

569

Changes in operating assets and liabilities:

Accounts receivable, net

53,908

(38,241)

Inventories

(7,103)

8,374

Prepaid expenses and other assets

3,302

3,199

Accounts payable

(5,965)

(3,107)

Deferred revenues

10,220

(2,210)

Other liabilities

(17,928)

7,018

Net cash provided by operating activities

107,966

61,917

Cash flows from investing activities:

Purchases of property and equipment

(11,080)

(9,186)

Net cash used in investing activities

(11,080)

(9,186)

Cash flows from financing activities:

Proceeds from long-term debt

135,000

115,000

Repayment of convertible debt

—

(115,500)

Payments for debt issuance costs

—

(332)

Proceeds from other borrowings

3,835

3,943

Repayment of long-term debt and other borrowings

(142,816)

(5,447)

Repurchase of common stock

(79,027)

(30,047)

Proceeds from common stock issued to employees

5,983

6,628

Taxes paid related to net share settlement of equity awards

(4,365)

(7,514)

Net cash used in financing activities

(81,390)

(33,269)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

7,176

(1,942)

Net increase in cash and cash equivalents and restricted cash

22,672

17,520

Cash and cash equivalents and restricted cash, beginning of the year

101,789

84,269

Cash and cash equivalents and restricted cash, end of the year

124,461

101,789

Cash and cash equivalents and restricted cash at end of the year

Cash and cash equivalents

124,105

101,457

Restricted cash included in other current assets

356

332

Total cash, cash equivalents and restricted cash as shown in the consolidated

statement of cash flows

124,461

101,789

Harmonic Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

Year Ended

December 31, 2025

December 31, 2024

Supplemental cash flow disclosure:

Income tax payments, net

12,760

27,308

Interest payments, net

4,072

6,283

Supplemental schedule of non-cash investing activities:

Capital expenditures incurred but not yet paid

247

488

Supplemental schedule of non-cash financing activities:

Shares of common stock issued upon redemption of the 2024 Notes

—

4,578

Harmonic Inc.

Preliminary GAAP Revenue Information

(Unaudited, in thousands, except percentages)

Three Months Ended

December 31, 2025

September 26, 2025

December 31, 2024

Geography

Americas

85,224

87 %

80,040

88 %

158,912

92 %

EMEA

9,781

10 %

9,717

10 %

11,832

7 %

APAC

3,230

3 %

735

2 %

284

1 %

Total

98,235

100 %

90,492

100 %

171,028

100 %

Customer

Top 2 customers (1)

58,077

59 %

58,853

65 %

140,873

82 %

Rest-of-world

40,158

41 %

31,639

35 %

30,155

18 %

Total

98,235

100 %

90,492

100 %

171,028

100 %

Twelve Months Ended

December 31, 2025

December 31, 2024

Geography

Americas

320,570

89 %

449,346

92 %

EMEA

33,894

9 %

36,420

7 %

APAC

6,059

2 %

2,434

1 %

Total

360,523

100 %

488,200

100 %

Customer

Top 2 customers (1)

221,787

62 %

393,234

81 %

Rest-of-world

138,736

38 %

94,966

19 %

Total

360,523

100 %

488,200

100 %

_______________

(1) Based on largest subscriber footprint

Harmonic Inc.

GAAP to Non-GAAP Reconciliations (Unaudited)

(in thousands, except percentages and per share data)

Three Months Ended December 31, 2025

Revenue

Gross Profit

Total

Operating Expense

Income from Operations

Total Non-operating

Expense, net

Income from Continuing

Operations

GAAP

98,235

46,180

42,412

3,768

(444)

219

Stock-based compensation

—

218

(5,594)

5,812

—

5,812

Discrete tax items and tax effect of Non-GAAP adjustments

—

1,186

Total adjustments

—

218

(5,594)

5,812

—

6,998

Non-GAAP

98,235

46,398

36,818

9,580

(444)

7,217

As a % of revenue (GAAP)

47.0 %

43.2 %

3.8 %

(0.5) %

0.2 %

As a % of revenue (Non-GAAP)

47.2 %

37.5 %

9.8 %

(0.5) %

7.3 %

Diluted earnings per share:

GAAP

0.00

Non-GAAP

0.06

Shares used in per share calculation:

GAAP and Non-GAAP

112,995

Three Months Ended September 26, 2025

Revenue

Gross Profit

Total

Operating Expense

Income from Operations

Total Non-

operating Expense, net

Income (Loss)

from

Continuing Operations

GAAP

90,492

42,299

38,269

4,030

(561)

(515)

Stock-based compensation

—

125

(5,032)

5,157

—

5,157

Restructuring and related charges

—

(887)

887

—

887

Discrete tax items and tax effect of Non-GAAP adjustments

—

1,986

Total adjustments

—

125

(5,919)

6,044

—

8,030

Non-GAAP

90,492

42,424

32,350

10,074

(561)

7,515

As a % of revenue (GAAP)

46.7 %

42.3 %

4.5 %

(0.6) %

As a % of revenue (Non-GAAP)

46.9 %

35.7 %

11.1 %

(0.6) %

8.3 %

Diluted earnings (loss) per share:

GAAP

(0.00)

Non-GAAP

0.07

Shares used in per share calculation:

GAAP

112,982

Non-GAAP

113,323

Harmonic Inc.

GAAP to Non-GAAP Reconciliations (Unaudited)

(in thousands, except percentages and per share data)

Three Months Ended December 31, 2024

Revenue

Gross Profit

Total

Operating Expense

Income from Operations

Total Non-operating

Expense, net

Income from Continuing

Operations

GAAP

171,028

90,198

40,627

49,571

4,216

38,195

Stock-based compensation

—

(5,868)

5,868

—

5,868

Restructuring and related charges

—

(465)

465

—

465

Asset impairment and related charges (1)

—

(610)

610

—

610

Discrete tax items and tax effect of Non-GAAP adjustments

—

2,839

Total adjustments

—

(6,943)

6,943

—

9,782

Non-GAAP

171,028

90,198

33,684

56,514

4,216

47,977

As a % of revenue (GAAP)

52.7 %

23.8 %

29.0 %

2.5 %

22.3 %

As a % of revenue (Non-GAAP)

52.7 %

19.7 %

33.0 %

2.5 %

28.1 %

Diluted earnings per share:

GAAP

0.32

Non-GAAP

0.41

Shares used in per share calculation:

GAAP and Non-GAAP

117,699

Twelve Months Ended December 31, 2025

Revenue

Gross Profit

Total

Operating Expense

Income from Operations

Total Non-operating

Expense, net

Income from Continuing

Operations

GAAP

360,523

174,745

160,665

14,080

(5,219)

1,216

Stock-based compensation

—

961

(20,680)

21,641

—

21,641

Restructuring and related charges

—

(1,315)

1,315

—

1,315

Asset impairment and related charges (2)

—

(1,637)

1,637

—

1,637

Discrete tax items and tax effect of Non-GAAP adjustments

—

620

Total adjustments

—

961

(23,632)

24,593

—

25,213

Non-GAAP

360,523

175,706

137,033

38,673

(5,219)

26,429

As a % of revenue (GAAP)

48.5 %

44.6 %

3.9 %

(1.4) %

0.3 %

As a % of revenue (Non-GAAP)

48.7 %

38.0 %

10.7 %

(1.4) %

7.3 %

Diluted earnings per share:

GAAP

0.01

Non-GAAP

0.23

Shares used in per share calculation:

GAAP and Non-GAAP

114,182

_______________

(1) Included impairment charges of $0.2 million for right-of-use assets and $0.4 million related to the fair value of other unrecoverable facility costs.

(2) Includes impairment charges of $0.4 million for right-of-use assets, $0.3 million for leasehold improvements and $0.9 million related to the fair value of other unrecoverable facility costs.

Harmonic Inc.

GAAP to Non-GAAP Reconciliations (Unaudited)

(in thousands, except percentages and per share data)

Twelve Months Ended December 31, 2024

Revenue

Gross Profit

Total

Operating

Expense

Income from

Operations

Total Non-

operating

Expense, net

Income from

Continuing

Operations

GAAP

488,200

240,107

165,373

74,734

(3,198)

50,718

Stock-based compensation

—

505

(18,820)

19,325

—

19,325

Restructuring and related charges

—

(2,741)

2,741

—

2,741

Asset impairment and related charges (1)

—

(10,889)

10,889

—

10,889

Non-cash interest expense related to

convertible notes

—

567

Discrete tax items and tax effect of

non-GAAP adjustments

—

(1,244)

Total adjustments

—

505

(32,450)

32,955

567

32,278

Non-GAAP

488,200

240,612

132,923

107,689

(2,631)

82,996

As a % of revenue (GAAP)

49.2 %

33.9 %

15.3 %

(0.7) %

10.4 %

As a % of revenue (Non-GAAP)

49.3 %

27.2 %

22.1 %

(0.5) %

17.0 %

Diluted earnings per share:

GAAP

0.43

Non-GAAP

0.71

Shares used in per share calculation:

GAAP and Non-GAAP

117,482

Three Months Ended

December 31, 2025

December 31, 2024

Income from

Continuing

Operations

Income (Loss)

from Disc.

Operations

Net Income

(Loss)

Income from

Continuing

Operations

Income (Loss)

from Disc.

Operations

Net Income

GAAP

219

(55,034)

(54,815)

38,195

(75)

38,120

Stock-based compensation

5,812

2,582

8,394

5,868

2,618

8,486

Restructuring and related

charges

—

465

708

1,173

Asset impairment and related charges

—

610

—

610

Impairment of goodwill

—

57,521

—

Non-recurring advisory fees

—

2,488

—

Discrete tax items and tax effect of

Non-GAAP adjustments

1,186

1,272

2,458

2,839

1,204

4,043

Total adjustments

6,998

63,863

70,861

9,782

4,530

14,312

Non-GAAP

7,217

8,829

16,046

47,977

4,455

52,432

As a % of revenue (GAAP)

0.2 %

(93.2) %

(34.8) %

22.3 %

(0.1) %

17.2 %

As a % of revenue (Non-GAAP)

7.3 %

14.9 %

10.2 %

28.1 %

8.7 %

23.6 %

Diluted earnings (loss) per share:

GAAP

0.00

(0.49)

0.32

(0.00)

0.32

Non-GAAP

0.06

0.08

0.14

0.41

0.04

0.45

Shares used in per share calculation:

GAAP and Non-GAAP

112,995

117,699

_______________

(1) Included impairment charges of $3.9 million for right-of-use assets, $4.3 million for leasehold improvements and $2.7 million related to the fair value of other unrecoverable facility costs.

Harmonic Inc.

GAAP to Non-GAAP Reconciliations (Unaudited)

(in thousands, except percentages and per share data)

Twelve Months Ended

December 31, 2025

December 31, 2024

Income from

Continuing

Operations

Income (Loss)

from Disc.

Operations

Net Income

(Loss)

Income from

Continuing

Operations

Income (Loss)

from Disc.

Operations

Net Income

GAAP

1,216

(44,526)

(43,310)

50,718

(11,501)

39,217

Stock-based compensation

21,641

10,239

31,880

19,325

8,748

28,073

Restructuring and related charges

1,315

422

1,737

2,741

13,703

16,444

Impairment of goodwill

—

57,521

—

Non-recurring advisory fees

—

3,315

—

755

Asset impairment and related charges

1,637

—

1,637

10,889

1,824

12,713

Non-cash interest expense related to

convertible notes

—

567

—

567

Discrete tax items and tax effect of

Non-GAAP adjustments

620

481

1,101

(1,244)

(4,492)

(5,736)

Total adjustments

25,213

71,978

97,191

32,278

20,538

52,816

Non-GAAP

26,429

27,452

53,881

82,996

9,037

92,033

As a % of revenue (GAAP)

0.3 %

(21.2) %

(7.6) %

10.4 %

(6.0) %

5.8 %

As a % of revenue (Non-GAAP)

7.3 %

13.1 %

9.4 %

17.0 %

4.7 %

13.6 %

Diluted earnings (loss) per share:

GAAP

0.01

(0.39)

(0.38)

0.43

(0.10)

0.33

Non-GAAP

0.23

0.24

0.47

0.71

0.07

0.78

Shares used in per share calculation:

GAAP and Non-GAAP

114,182

117,482

Harmonic Inc.

Preliminary Income (Loss) from Continuing Operations to Adjusted EBITDA Reconciliation (Unaudited)

(In thousands, except percentages)

Three Months Ended

December 31, 2025

September 26, 2025

December 31, 2024

Income (loss) from continuing operations (GAAP)

219

(515)

38,195

Provision for income taxes

3,105

3,984

15,592

Interest expense, net

397

1,001

2,262

Depreciation

2,597

2,565

2,702

EBITDA

6,318

7,035

58,751

Adjustments

Stock-based compensation

5,812

5,157

5,868

Restructuring and related charges

—

887

465

Lease-related asset impairment and other charges

—

610

Adjusted EBITDA (Non-GAAP)

12,130

13,079

65,694

Revenue

98,235

90,492

171,028

Income (loss) from continuing operations margin (GAAP)

0.2 %

(0.6) %

22.3 %

Adjusted EBITDA margin (Non-GAAP)

12.3 %

14.5 %

38.4 %

Twelve Months Ended

December 31, 2025

December 31, 2024

Income from continuing operations (GAAP)

1,216

50,718

Provision for income taxes

7,645

20,818

Interest expense, net

3,799

6,465

Depreciation

10,035

11,074

EBITDA

22,695

89,075

Adjustments

Stock-based compensation

21,641

19,325

Restructuring and related charges

1,315

2,741

Lease-related asset impairment and other charges

1,637

10,889

Adjusted EBITDA (Non-GAAP)

47,288

122,030

Revenue

360,523

488,200

Income from continuing operations margin (GAAP)

0.3 %

10.4 %

Adjusted EBITDA margin (Non-GAAP)

13.1 %

25.0 %

Harmonic Inc.

GAAP to Non-GAAP Reconciliations on Financial Guidance for Continuing Operations (Unaudited) (1)

(In millions, except percentages and per share data)

Q1 2026 Financial Guidance

Revenue

Gross Profit

Total Operating

Expense

Income from

Operations

Income from

Continuing

Operations

GAAP

100

105

Stock-based compensation

—

(10)

Tax effect of Non-GAAP adjustments

—

(3)

(2)

Total adjustments

—

(10)

Non-GAAP

100

105

As a % of revenue (GAAP)

53.0 %

54.3 %

46.0 %

45.7 %

7.0 %

8.6 %

4.0 %

4.8 %

As a % of revenue (Non-GAAP)

54.0 %

55.0 %

36.0 %

36.2 %

18.0 %

19.3 %

12.0 %

13.0 %

Diluted earnings per share:

GAAP

0.04

Non-GAAP

0.11

0.12

Shares used in per share calculation:

GAAP and Non-GAAP

111.4

FY26 Financial Guidance

Revenue

Gross Profit

Total Operating

Expense

Income from

Operations

Income from

Continuing

Operations

GAAP

440

480

222

252

176

181

Stock-based compensation

—

(26)

Tax effect of Non-GAAP adjustments

—

(6)

(5)

Total adjustments

—

(26)

Non-GAAP

440

480

224

254

150

155

As a % of revenue (GAAP)

50.5 %

52.5 %

40.0 %

37.7 %

10.5 %

14.8 %

6.8 %

10.0 %

As a % of revenue (Non-GAAP)

51.0 %

53.0 %

34.1 %

32.3 %

16.8 %

20.6 %

11.7 %

14.7 %

Diluted earnings per share:

GAAP

0.27

0.43

Non-GAAP

0.46

0.63

Shares used in per share calculation:

GAAP and non-GAAP

111.7

_______________

(1) Components may not sum to total due to rounding.

SOURCE Harmonic Inc.