HARMONIC INC. (HLIT): Results of Operations and Financial Condition
HARMONIC INC. (HLIT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FOR IMMEDIATE RELEASE Harmonic Announces Second Quarter 2026 Results Broadband revenue increased 54% year over year, including 44% growth in Rest-of-Market Company raises full-year outlook to reflect Broadband revenue of $505 million - $525 million Cash increased to
How this was made
The 30-second read
Why it matters
The 8-K provides Q2 operating results, backlog/deferred revenue, cash position, and updated GAAP and non-GAAP guidance for Q3 and full-year 2026, which can drive estimate revisions.
Market read
Traders can reprice HLIT based on the raised FY 2026 revenue and EPS ranges, plus improved cash and a large backlog increase.
What to watch
The filing notes stranded costs tied to the Video divestiture; investors should track whether these costs normalize as expected and how they affect operating profit comparability.
Harmonic Announces Second Quarter 2026 Results
Broadband revenue increased 54% year over year, operating profit expanded versus both Q1 2026 and Q2 2025, bookings increased from Q1 2026, and the Company raised its full-year Broadband revenue outlook to $505 million - $525 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Company net revenueGAAP | $ 173.0 | – | – |
| Total Company operating profitGAAP | 18.4 | – | – |
| Total Company operating profitnon-GAAP | 35.6 | – | – |
| Total Company net income (loss) per shareGAAP | $ (0.02) | – | – |
| Total Company net income (loss) per sharenon-GAAP | $ 0.24 | – | – |
| Broadband net revenueGAAP | $ 133.5 | – | 54% |
| Broadband operating profit (loss)GAAP | $ 23.6 | – | – |
| Broadband operating profit (loss)non-GAAP | $ 31.3 | – | – |
| Broadband net income (loss) per shareGAAP | $ 0.16 | – | – |
| Broadband net income (loss) per sharenon-GAAP | $ 0.21 | – | – |
| Bookings for the quarterother | $ 144.3 | – | – |
| Backlog and deferred revenue as of quarter endother | $ 587.6 | – | 71% |
| Cash and cash equivalents as of quarter endother | $ 231.9 | – | – |
| Stranded costs associated with the Video divestitureother | approximately $2.3 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| BroadbandRest-of-Market revenue growth of 44%, strong bookings led by Rest-of-Market, ongoing expansion across all tier-1 accounts and new customer wins. | $ 133.5 | – | 54% |
Q3 2026 and 2026 continuing operations - Broadband outlook
- RevenueQ3 2026 GAAP: $ 125 - $ 135; 2026 GAAP: $ 505 - $ 525
- Gross marginQ3 2026 GAAP: 51.0% - 52.0%; 2026 GAAP: 50.9% - 51.8%; Q3 2026 non-GAAP: 51.0% - 52.0%; 2026 non-GAAP: 51.0% - 52.0%
- Tax rateQ3 2026 GAAP: 30.0% - 30.0%; 2026 GAAP: 30.0% - 30.0%; Q3 2026 non-GAAP: 23.0% - 23.0%; 2026 non-GAAP: 23.0% - 23.0%
- NoteQ3 2026 GAAP operating profit: $ 17 - $ 22
- Note2026 GAAP operating profit: $ 74 - $ 86
- NoteQ3 2026 GAAP net income per share: $ 0.10 - $ 0.14
- Note2026 GAAP net income per share: $ 0.44 - $ 0.53
- NoteQ3 2026 GAAP shares: 110.4 - 110.4
- Note2026 GAAP shares: 110.4 - 110.4
- NoteQ3 2026 non-GAAP gross profit: $ 64 - $ 70
- Note2026 non-GAAP gross profit: $ 258 - $ 273
- NoteQ3 2026 non-GAAP operating profit: $ 23 - $ 28
- Note2026 non-GAAP operating profit: $ 99 - $ 111
- NoteQ3 2026 non-GAAP net income per share: $ 0.15 - $ 0.19
- Note2026 non-GAAP net income per share: $ 0.67 - $ 0.75
- NoteQ3 2026 non-GAAP shares: 110.4 - 110.4
- Note2026 non-GAAP shares: 110.4 - 110.4
- NoteIncludes approximately $2.3 million and $10.0 million of stranded costs associated with the Video business divestiture for Q3 and FY 2026, respectively.
- NoteDiluted shares assumes stock price of $12.95 (Q2 2026 average price).
What drove it
- Broadband revenue increased 54% year over year.
- Rest-of-Market revenue increased 44% year over year.
- Rest-of-Market bookings represented approximately 60% of total Q2 bookings.
- The Company commercially deployed its cOS™ solution with 161 customers, serving 48.2 million CPE devices.
- The Company achieved its first SeaStar MDU deployment and secured multi-million dollar orders for Pearl-1XL and Oyster+ fiber products.
- Following the Disposition, Harmonic operates as a pure-play broadband company with a single reportable segment: Broadband.
Concerns
- Q2 2026 operating profit includes approximately $2.3 million of stranded costs associated with the Video divestiture.
- Q3 2026 and FY 2026 operating-profit guidance includes stranded costs associated with the Video business divestiture.
- The filing identifies customer concentration and consolidation, loss of key customers, capital-spending delays or decreases in cable or telco industries, tariffs, product and geographic mix, competition, inventory management, and supply availability and pricing as risks.
What to watch
- Q3 2026 GAAP net revenue guidance of $ 125 - $ 135.
- Execution against 2026 GAAP net revenue guidance of $ 505 - $ 525.
- Rest-of-Market bookings, which represented approximately 60% of total Q2 bookings.
- Conversion of $ 587.6 backlog and deferred revenue into revenue.
- Expansion of cOS™ deployments across tier-1 accounts and new customer wins.
- The final post-closing adjustments related to the Video business disposition.
Balance sheet and cash flow
- Cash: $231.9 million at July 3, 2026, compared to $124.1 million at December 31, 2025
- Proceeds from the sale were $137.9 million paid at closing, subject to final post-closing adjustments under the terms of the APA.
- The Company and MediaKind completed the Disposition on June 16, 2026.
Analysis
Harmonic reported a strong Broadband quarter following the completed sale of its Video business. Continuing-operations Broadband net revenue was $ 133.5, compared with $ 121.7 in Q1 2026 and $ 86.9 in Q2 2025. The Company stated that Broadband revenue increased 54% year over year, with Rest-of-Market revenue growth of 44% year over year. Total Company net revenue was $ 173.0, while the release presents the Video business as held-for-sale and discontinued operations for all periods presented.
Profitability improved substantially in the Broadband business. GAAP operating profit was $ 23.6, compared with $ 20.4 in Q1 2026 and a GAAP operating loss of $ (0.8) in Q2 2025. Non-GAAP operating profit was $ 31.3, compared with $ 26.0 in Q1 2026 and $ 7.0 in Q2 2025. Broadband GAAP net income per share was $ 0.16 and non-GAAP net income per share was $ 0.21. These measures include approximately $2.3 million of stranded costs associated with the Video divestiture.
Demand indicators remained favorable. Quarterly bookings were $ 144.3, compared with $ 115.9 in Q1 2026 and $ 131.0 in Q2 2025. Backlog and deferred revenue reached $ 587.6, compared with $ 582.1 in Q1 2026 and $ 344.2 in Q2 2025. Rest-of-Market represented approximately 60% of total Q2 bookings, and the Company cited expansion across tier-1 accounts, new customer wins, a first SeaStar MDU deployment, and multi-million dollar orders for Pearl-1XL and Oyster+ fiber products.
The Video disposition materially increased liquidity. Cash and cash equivalents were $ 231.9 at quarter end, compared with $ 109.0 in Q1 2026 and $ 123.9 in Q2 2025. The Company reported $137.9 million paid at closing from the sale, subject to final post-closing adjustments. The release did not report share repurchases, dividends, debt, operating cash flow, or free cash flow.
Management raised its full-year outlook to GAAP Broadband net revenue of $ 505 - $ 525 and guided Q3 GAAP net revenue to $ 125 - $ 135. Q3 GAAP gross margin guidance is 51.0% - 52.0%, while full-year GAAP gross margin guidance is 50.9% - 51.8%. The principal execution items are revenue conversion from the reported backlog and deferred revenue, Rest-of-Market booking momentum, and the impact of stranded costs, which are expected to be approximately $2.3 million in Q3 and $10.0 million for FY 2026.
Management, verbatim
Our strong business momentum continued in the second quarter, with Broadband revenue growth accelerating to 54% year over year, including 44% growth in Rest-of-Market.
Nimrod Ben-Natan, president and chief executive officer of Harmonic
Equally important, it was another quarter of strong bookings, led by Rest-of-Market, enabling us to once again raise our full-year 2026 outlook.
Nimrod Ben-Natan, president and chief executive officer of Harmonic
With the sale of the Video business now complete, we have the capital and focus to further accelerate our broadband growth.
Nimrod Ben-Natan, president and chief executive officer of Harmonic
Not in the filing
stated, not guessed- Prior-quarter, prior-year, year-over-year change, and quarter-over-quarter change for Total Company net revenue
- Total Company gross profit and gross margin
- Total Company operating-profit comparisons
- Total Company net income amount
- Total Company GAAP and non-GAAP net income per share comparisons
- Broadband gross profit and gross margin for Q2 2026
- Broadband operating expenses for Q2 2026
- Broadband net income amount for Q2 2026
- Percentage changes for Broadband operating profit, Broadband net income per share, bookings, cash and cash equivalents, and stranded costs
- Operating cash flow
- Free cash flow
- Debt or other borrowings
- Share repurchases
- Dividends
- Prior quarterly outlook for comparison with reported results
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Harmonic is transitioning to a pure-play broadband company after completing the sale of its Video business to MediaKind.
Ticker impact
Harmonic reported Q2 2026 results and raised full-year 2026 outlook, citing Broadband revenue growth and strong Rest-of-Market bookings.
Likely positive bias for HLIT shares into the next earnings cycle, with upside sensitivity to continued Rest-of-Market bookings and margin delivery.
The filing includes specific Q2 performance metrics (Broadband revenue +54% YoY) and explicit updated FY 2026 revenue and EPS ranges, plus balance-sheet improvement from the Video sale proceeds.
Market effects
Signals demand strength in virtualized broadband and fiber/DOCSIS-related deployments, potentially supportive for broadband infrastructure suppliers.
Primarily US-listed semiconductor and telecom-infrastructure sentiment, with limited direct regional spillover.
Broadband network buildout themes are global, but the disclosure is company-specific.
Counterpoint
Guidance raises may already be partially anticipated; investors may focus on whether margin and bookings momentum can be sustained beyond the Rest-of-Market mix.
Key entities
- companyHarmonic Inc.
Nasdaq-listed broadband solutions provider filing an 8-K with Q2 results and raised 2026 outlook.
- counterpartyMediaKind (Leone Media Inc.)
Buyer of Harmonic’s Video business; disposition completed June 16, 2026.
