Harmonic Inc.

Harmonic Inc. (Nasdaq: HLIT) supplies hardware and software that broadband operators use to run and upgrade their networks. Its continuing business is Broadband following the completed sale of its Video operations in June 2026.

Comparable quarterly results

The table compares continuing broadband operations for the 13 weeks ended October 2, 2026, and September 26, 2025. Amounts are USD millions, except per-share figures.

Adjusted operating profit removes share-based compensation, selected restructuring and advisory items, compensation tied to the Video sale and certain lease-related charges. Group net income, including discontinued Video operations, was $14.6 million, versus $2.7 million.

What happened to the earlier forecast

In August, Harmonic forecast Q3 revenue of $125 million to $135 million and GAAP operating profit of $17 million to $22 million. The results exceeded both ranges. Continuing diluted earnings were $0.16 a share, versus the earlier $0.10 to $0.14 forecast.

The annual revenue outlook rose to $545 million to $555 million from $505 million to $525 million. The annual GAAP operating profit range increased to $93 million to $99 million from $74 million to $86 million. Adjusted operating profit is now expected at $118 million to $124 million, versus $99 million to $111 million.

Q4 revenue is forecast at $141 million to $151 million. The year ends on December 31.

Customer concentration and orders

Revenue outside the two customers that serve the most subscribers rose to $68.7 million from $49.4 million in Q2 and $34.2 million a year earlier. This customer group accounted for 46% of Q3 revenue, versus 37% in Q2.

Revenue from the two accounts fell to $80.1 million from $84.1 million in Q2, but remained above the year-earlier $56.3 million. The $19.3 million sequential increase elsewhere more than offset their $4.0 million decline.

Bookings were $105.9 million, versus $144.3 million in Q2 and $97.4 million a year earlier. Combined backlog and deferred revenue was $534.0 million, versus $587.6 million in Q2 and $338.0 million a year earlier. New orders will help show whether the broader customer growth can sustain the higher sales pace.

Cash flow and the July debt repayment

Cash was $142.8 million at October 2, versus $231.9 million at July 3. On July 7, Harmonic used cash to repay $75 million of revolving borrowings. At October 2, available revolving credit was $160 million. The balance sheet showed $33.4 million of noncurrent debt and $2.9 million due currently.

Operating cash flow for the first nine months was $23.9 million, versus $95.7 million a year earlier. Capital spending was $5.8 million, versus $8.4 million. These cash-flow figures cover continuing and discontinued operations together. Inventory and customer receivables absorbed cash, partly offset by higher amounts owed to suppliers.

Completed transactions

Harmonic completed the sale of its Video business to Leone Media, which operates as MediaKind, on June 16, 2026. The announced base price was $145 million, with $137.9 million paid at closing, subject to final adjustments. Cash-flow proceeds after retained cash and transaction costs were $132.0 million. Final adjustments are expected in Q1 2027.

In its Q3 announcement, Harmonic also said it had acquired a company providing a vendor-neutral fiber-management and provisioning platform.