10-Q · May 13, 2026
Harmonic Inc. reported a robust Q1 2026 with total revenue hitting $121.7 million, reflecting a significant 43% increase year-over-year, driven primarily by growth in both the Appliance & Integration and SaaS & Service…
Earnings analysis · 10-Q
HLIT earnings analysis
Filed August 17, 2026 · Our reading of the company's report
The latest report
Harmonic reported $133.462 million of revenue and $0.21 diluted EPS for Q2 2026, improving from approximately $122 million of revenue and $0.07 EPS in Q1 2026. The June 16, 2026 Video divestiture simplifies the…
Read full summary
Harmonic reported $133.462 million of revenue and $0.21 diluted EPS for Q2 2026, improving from approximately $122 million of revenue and $0.07 EPS in Q1 2026. The June 16, 2026 Video divestiture simplifies the portfolio to Broadband and leaves the company with approximately $231.9 million of cash and $84.7 million of revolver availability. However, customer concentration remains severe, with the top 10 customers contributing 89% of quarterly revenue, and the transition to a Broadband-only company introduces execution and stranded-cost risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.21
- Segment
- Broadband: all future revenue following the June 16, 2026 sale of the Video business; segment revenue was not disclosed in the provided filing extract
What stood out
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Revenue and EPS improved sequentially
Reported revenue was $133.462 million and diluted EPS was $0.21. Revenue increased from approximately $122 million in Q1 2026, while EPS rose from $0.07.
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Portfolio simplified to Broadband
The June 16, 2026 sale of the Video business leaves Broadband as the sole continuing business segment. The filing states that Video represented approximately 37% of aggregate fiscal 2025 revenue.
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Strong liquidity position
Cash was approximately $231.9 million as of July 3, 2026, and management believes it will satisfy cash requirements for at least the next 12 months.
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Debt facilities remain compliant
The company had $84.7 million available under its revolving facility and remained in compliance with all Credit Agreement covenants as of July 3, 2026.
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Controls remained effective
Disclosure controls and procedures were concluded to be effective at a reasonable assurance level as of the period end, with no material changes to internal control over financial reporting during the quarter.
What to watch
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Very high customer concentration
The top 10 customers represented approximately 89% of revenue for the three months ended July 3, 2026 and 87% for the six months ended July 3, 2026, increasing exposure to customer losses, delayed deployments, and large order timing.
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Reliance on two major customers
Two customers accounted for approximately 45% and 18% of quarterly revenue, respectively, versus one customer at approximately 54% in the comparable 2025 quarter. A reduction in orders from either customer could materially affect results.
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Video divestiture execution risk
The Video business sale may create execution and stranded-cost risk: Video generated approximately 37% of fiscal 2025 revenue, while post-disposition results depend solely on Broadband and transition-services obligations may divert management attention.
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Tariff and supply-chain exposure
The company’s primary contract manufacturer, Plexus, operates in Malaysia and accounts for a majority of products purchased from contract manufacturers. The filing states that further tariffs could increase costs, reduce revenue, or require higher prices.
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Israel workforce disruption risk
As of July 3, 2026, the company had 195 employees in Israel, approximately 36% of its worldwide workforce, and approximately 10% of Israeli employees were called for military duty during 2025.
Management's outlook
The provided 10-Q extract does not include quantitative revenue or EPS guidance. Prior FY2026 guidance was provided in the August 12, 2026 8-K/earnings materials, not this filing.
Earlier filings 4
10-K · February 24, 2026
Harmonic Inc. reported significant challenges in fiscal 2025, experiencing a 26% decline in total revenue to $360.5 million and a net loss of $43.3 million, primarily due to customer deployment delays in the U.S.…
10-Q · November 4, 2025
Harmonic Inc. (HLIT) reported Q3 2025 financial results showing revenue of $142.4 million and EPS of $0.12, surpassing expectations significantly with a revenue surprise of 10.2%. Despite an overall decline in revenue…
10-Q · August 1, 2025
Harmonic Inc. reported Q2 2025 results with revenue at $138.0 million, slightly below the previous year's $138.7 million. However, EPS significantly beat estimates at $0.09 compared to $0.03 expected, reflecting strong…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.