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1 July 28, 2025 Nimrod Ben-Natan, President & CEO Walter Jankovic, CFO EARNINGS CONFERENCE CALL SECOND QUARTER 2025 1
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2 FORWARD-LOOKING STATEMENTS During the course of this presentation, we will provide projections and other forward-looking statements regarding future events or the future financial performance of Harmonic, including expectations concerning our business strategy for 2025 and beyond, our new stock repurchase program, and our Q3 2025 guidance. Such statements are only current expectations and actual events or results may differ materially. We refer you to Harmonic’s filings with the SEC, particularly our most recent Reports on Form 10-K, Form 10-Q and Form 8-K. These documents identify important risk factors that could cause actual results to differ materially from our projections or other forward-looking statements. We will also present financial metrics determined on a “non-GAAP” basis. These items, together with the corresponding GAAP numbers and a reconciliation to GAAP , are contained in this presentation and the related earnings press release on our website at www.harmonicinc.com.
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3 3 AT-A-GLANCE Revolutionizing Broadband Networks and Cloud Streaming BROADBAND & VIDEO Two market-leading business units Q2 2025 REVENUE $138.0M Broadband: $86.9M Video: $51.1M MARKET CAPITALIZATION 1 $1.0B SILICON VALLEY Headquarters MARKET-LEADING CUSTOMERS Worldwide CLOUD NATIVE INNOVATION LEADER 1 Market Capitalization as of July 25, 2025
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4 4 OVERVIEW EXECUTING TOWARDS OUR LONG-TERM GROWTH PLAN Delivered on Q2 2025 Commitments • Broadband revenues and profitability exceeded expectations with strong execution and bookings • Video exceeded revenue and profitability expectations as the business demonstrates consistent performance Leading with a Strong Operating Model • Cash balance of $124 million, compared to prior year of $46M • $14 million in Q2 2025 share repurchases, bringing our 2025 year-to-date share repurchases to $50 million * Source: Dell‘Oro Group, January 23, 2025 Navigating Tariffs & Shift to Unified DOCSIS 4.0 in 2025 • Below revenue trend year expected in Broadband due to Unified 4.0 timing and potential tariff sensitivity • Technology and market share leadership position on Unified 4.0, with initial Node shipments late in 2025 Positioned for Above Market Trend Growth in 2026 • Expect resumed revenue growth in 2026 with Unified 4.0, accelerating customer ramps, and recent wins • Dell’Oro analyst report* supports future long-term growth outlook
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5 5 BROADBAND VISION POSITIONED TO GROW Accelerate the adoption of next- generation, virtualized broadband networks for speed, reliability, and simplicity, over DOCSIS and Fiber
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6 6 BROADBAND STRATEGIC IMPERATIVES UPDATE • Four new customer wins and several past wins starting to deploy in Q2 • Strong Rest of World (ROW) bookings in Q2 • ROW record revenue in Q2, and continue to expect significant growth in 2025 • cOS orchestrating DOCSIS and Fiber • DOCSIS 4.0 Unified speed breakthrough (14G) • Recent innovations: • SeaStar Optical Node for MDUs, • PTP-less for simplified DOCSIS operations • L4S to enhance quality of experience • ROW wins included two Fiber customers • Record Fiber revenue in Q2 including revenue from a recent Tier 1 win • Signed up two Tier-1 customers to the platform • Beacon continues to gain traction, with additional customers adopting the service Customer Diversification Technology Leadership Fiber Growth Cloud Services Expansion
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7 TRANSFORMING BROADCAST TV ENABLING PREMIUM STREAMING SPORTS STREAMING PRODUCTION & TV EVERYWHERE VIDEO MARKET TRENDS HARMONIC IS WELL POSITIONED TO LEAD • Dedicated stream per viewer including targeted ads • On-demand viewing • Growing and evolving • Unified signal for all viewers • 24/7 linear channels • Mature segment with “Broadcast” standards HYBRID SOLUTIONS IN DEMAND Leading Agnostic Video SaaS Provider Leading Video Appliances PLAYOUT VODDISTRIBUTION
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8 8 VIDEO STRATEGIC IMPERATIVES UPDATE • Winning and executing on primary distribution and takeout deals • Strong pipeline and backlog entering Q3’25 • Consistent revenue and profitability performance • Q2 SaaS record revenue $15.4M • Expansion of sports streaming • Strong and growing Tier 1 Pipeline • Akamai partnership driving 2H’25 growth Appliance Profitability SaaS Transformation Strong Operating Leverage
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9 Walter Jankovic, CFO SECOND QUARTER 2025 FINANCIAL RESULTS AND OUTLOOK
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10 Q2 2025 FINANCIAL HIGHLIGHTS* CONSOLIDATED RESULTS • Revenue of $138.0 million, down 0.5% from prior year • EPS of $0.09, up $0.01 from prior year • Cash $123.9 million, up $78.1 million from Q2’24 BROADBAND RESULTS • Revenue of $86.9 million, down 6.5% from prior year • Adj. EBITDA of $10.8 million, down $5.5 million from prior year VIDEO RESULTS • Revenue $51.1 million, up 11.6% from prior year • SaaS revenue $15.4 million, up 10.1% from prior year • Adj. EBITDA $6.2 million, up $6.5 million from prior year * Non-GAAP
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11 CAPITAL ALLOCATION PRIORITIES • ROW growth investments • Working capital for growth • Additional service offerings • $14M in stock repurchases during Q2 2025 • Expect strong free cash flow over next 3 years • Leverage our growing footprint in Broadband Strong Liquidity Position with $124M in Cash and $82M in Undrawn Credit Facility Organic Growth $200M Stock Repurchase Authorization Inorganic Expansion Opportunities
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12 Q2 2025 REVENUE & GROSS MARGIN HIGHLIGHTS* Financial Metric ($ Millions) Q2 2025 Q1 2025 Q2 2024 Q2/Q1 Change Q2 Y/Y Change Total Net Revenue $138.0 $133.1 $138.7 3.7% (0.5)% Broadband Revenue $86.9 $84.9 $92.9 2.4% (6.5)% Video Revenue $51.1 $48.3 $45.8 5.9% 11.6% Gross Margin (%) 54.1% 59.4% 53.1% (5.3)% 1.0% Broadband Gross Margin (%) 46.5% 55.5% 47.6% (9.0)% (1.1)% Video Gross Margin (%) 67.0% 66.4% 64.4% 0.6% 2.6% * Non-GAAP. Components may not sum to total due to rounding
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13 Q2 2025 EARNINGS AND BOOKINGS HIGHLIGHTS* Financial Metric $ Millions (except EPS) Q2 2025 Q1 2025 Q2 2024 Q2/Q1 Change Q2 Y/Y Change Operating Expenses $60.7 $60.5 $61.5 $0.2 $(0.8) Adj. EBITDA $17.0 $21.1 $16.1 $(4.1) $0.9 Broadband Adj. EBITDA $10.8 $15.9 $16.3 $(5.1) $(5.5) Video Adj. EBITDA $6.2 $5.3 $(0.3) $0.9 $6.5 EPS $0.09 $0.11 $0.08 $(0.02) $0.01 Share Count 113.5 117.0 116.7 (3.5) (3.2) Bookings $158.4 $113.7 $72.4 $44.7 $86.0 Book to Bill Ratio 1.1 0.9 0.5 0.2 0.6 * Non-GAAP. Components may not sum to total due to rounding
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14 Q2 2025 BALANCE SHEET & CASH FLOW HIGHLIGHTS Financial Metric ($ Millions) Q2 2025 Q1 2025 Q2 2024 Cash $123.9 $148.7 $45.9 Cash Provided by (used in) Operations $(11.7) $83.6 $(22.2) Free Cash Flow $(15.5) $81.7 $(24.1) Accounts Receivable $120.7 $98.6 $120.0 DSO 79 67 78 Inventory $71.1 $62.1 $84.1 Inventory Days 101 103 116 Backlog and Deferred Revenue $504.5 $485.1 $613.1
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15 Q3 2025 FINANCIAL GUIDANCE* Financial Metric Broadband Video Consolidated Net Revenue ($M) $75 - $85 $45 - $50 $120 - $135 Gross Margin (%)** 45.0% - 46.0% 65.0% - 67.0% 52.5% - 53.8% Adjusted EBITDA ($M) $5 - $9 $2 - $5 $7 - $14 Shares*** n/a n/a 114.7 - 114.7 EPS n/a n/a $0.02 - $0.07 * Non-GAAP ** Includes estimated tariff impacts of approximately $1 million *** Diluted shares assumes stock price at $9.13 (Q2 2025 average price)
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16 16 Q2 2025 Exceeded Expectations CONCLUSION MARKET LEADER POSITIONED FOR GROWTH Navigating 2025 Broadband & Tariff Headwinds Growth Rebound Expected in 2026 KEY LONG-TERM CATALYSTS • T echnology leadership positions • Strong operating model • Proven execution
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17 17 WRAP-UP & Q&A
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18 USE OF NON-GAAP FINANCIAL MEASURES In establishing operating budgets, managing its business performance, and setting internal measurement targets, the Company excludes a number of items required by GAAP . Management believes that these accounting charges and credits, most of which are non-cash or non-recurring in nature, are not useful in managing its operations and business. Historically, the Company has also publicly presented these supplemental non-GAAP measures in order to assist the investment community to see the Company “through the eyes of management,” and thereby enhance understanding of its operating performance. The non-GAAP measures presented here are gross profit, operating expenses, income (loss) from operations, non-operating expense, net, Adjusted EBITDA, net income (loss) 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 and forward-looking non-GAAP financial measures discussed in this presentation to the most directly comparable historical and forward-looking GAAP financial measures is included with the financial information contained in this presentation. The non-GAAP adjustments described below have historically been excluded from our GAAP financial measures. These adjustments are restructuring and related charges, stock-based compensation expense, lease-related asset impairment and other charges, non-cash interest expenses on convertible notes, adjustments that normalize the tax rate and depreciation.
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19 Q2 2025 GAAP TO NON-GAAP RECONCILIATIONS (UNAUDITED, IN THOUSANDS, EXCEPT EPS AND PERCENTAGES)
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20 Q1 2025 GAAP TO NON-GAAP RECONCILIATIONS (UNAUDITED, IN THOUSANDS, EXCEPT EPS AND PERCENTAGES)
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21 Q2 2024 GAAP TO NON-GAAP RECONCILIATIONS (UNAUDITED, IN THOUSANDS, EXCEPT EPS AND PERCENTAGES)
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22 ADJ. EBITDA CALCULATIONS (UNAUDITED, IN THOUSANDS)
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23 ADJ. EBITDA RECONCILIATIONS (UNAUDITED, IN THOUSANDS)
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24 GUIDANCE GAAP TO NON-GAAP RECONCILIATIONS (UNAUDITED, IN MILLIONS, EXCEPT EPS AND PERCENTAGES)
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25 GUIDANCE ADJ. EBITDA CALCULATIONS (UNAUDITED, IN MILLIONS)
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26 GUIDANCE ADJ. EBITDA RECONCILIATIONS (UNAUDITED, IN MILLIONS)
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27 27 THANK YOU.