Harmonic (HLIT) Q2 2026 earnings summary

Executive summary

• Q2 2026 marked the strongest second quarter ever, with broadband revenue up 54% year-over-year, driven by Rest-of-Market growth, new deployments, and the completed sale of the Video business, transforming the company into a pure-play broadband innovator.

• Significant financial and operational progress included raised full-year guidance, customer diversification, and technology advancements in DOCSIS and FTTH.

• Net loss for the quarter was $2.3 million, reflecting a $19.4 million loss from discontinued operations, offsetting $17.1 million income from continuing operations.

• The cOS platform and intelligence solutions expanded, supporting network modernization and adoption at 161 customers.

• Customer NPS reached 87 in Q2, reflecting strong customer satisfaction.

Financial highlights

• Q2 2026 revenue was $133.5 million, up 54% year-over-year and 10% sequentially, with gross margin at 53% (non-GAAP) and 52.4% (GAAP).

• Operating profit was $31.3 million (non-GAAP), up 350% year-over-year; GAAP operating income was $23.6 million.

• EPS was $0.21 (non-GAAP) and $0.16 (GAAP); net margin was 12.8% (GAAP), 17.1% (non-GAAP).

• Cash and cash equivalents at quarter end were $231.9 million, up from $124.1 million at year-end 2025.

• Bookings reached $144 million, with backlog and deferred revenue at $587.6 million.

Outlook and guidance

• Full-year 2026 broadband revenue guidance raised to $505–$525 million; FY 2026 EPS guidance: $0.67–$0.75 (non-GAAP), $0.44–$0.53 (GAAP); operating profit: $99–$111 million (non-GAAP), $74–$86 million (GAAP).

• Q3 2026 revenue expected between $125–$135 million, with gross margins of 51–52%.

• Guidance reflects prudent approach due to external risks, supply chain dynamics, and elevated memory costs ($3 million per quarter impact in H2 2026).

• Management expects continued long-term growth driven by virtualized DOCSIS, CMTS, and FTTH adoption.

• Proceeds from the Video business sale will support strategic growth initiatives and further share repurchases.