Revenue trajectory remains highly erratic, with gross margins fluctuating between 44.4% and 57.0% due to the shifting mix between software-defined solutions and legacy hardware.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 500.34M | 360.52M | 678.72M | 607.91M | 624.96M | 507.15M | 378.83M | 402.87M | 403.56M | 358.25M | 405.91M | 377.03M | 433.56M | 461.94M | 530.46M | 549.33M | 423.34M | 319.57M | 364.96M | 311.2M | 247.68M | 257.38M | 248.31M | 182.28M | 186.63M | 203.81M | 263.05M | 184.1M | 83.9M | 74.4M | 60.9M |
| Revenue Growth % | -27.47% | -46.88% | 11.65% | -2.73% | 23.23% | 33.87% | -5.97% | -0.17% | 12.65% | -11.74% | 7.66% | -13.04% | -6.14% | -12.92% | -3.43% | 29.76% | 32.47% | -12.44% | 17.27% | 25.65% | -3.77% | 3.65% | 36.23% | -2.33% | -8.43% | -22.52% | 42.88% | 119.43% | 12.77% | 22.17% | 55.36% |
| Cost of Goods Sold | 247.71M | 196.86M | 312.8M | 295.36M | 309.07M | 247.41M | 183.83M | 179.86M | 194.35M | 188.43M | 205.16M | 174.31M | 221.21M | 241.5M | 293.91M | 294.82M | 227.94M | 185.21M | 187.43M | 177.13M | 146.24M | 163.43M | 143.81M | 121.67M | 132.2M | 202.25M | 162.22M | 97.2M | 49M | 36.4M | 30.7M |
| COGS % of Revenue | - | 54.6% | 46.09% | 48.59% | 49.46% | 48.78% | 48.53% | 44.64% | 48.16% | 52.6% | 50.54% | 46.23% | 51.02% | 52.28% | 55.41% | 53.67% | 53.84% | 57.96% | 51.36% | 56.92% | 59.04% | 63.5% | 57.92% | 66.75% | 70.84% | 99.24% | 61.67% | 52.8% | 58.4% | 48.92% | 50.41% |
| Gross Profit | 252.63M | 163.66M | 365.92M | 312.55M | 315.88M | 259.74M | 195M | 223.01M | 209.21M | 169.82M | 200.75M | 202.71M | 212.35M | 220.44M | 236.56M | 254.51M | 195.4M | 134.36M | 177.53M | 134.07M | 101.45M | 93.95M | 104.5M | 60.6M | 54.43M | 1.55M | 100.83M | 86.9M | 34.9M | 38M | 30.2M |
| Gross Margin % | 50.49% | 45.4% | 53.91% | 51.41% | 50.54% | 51.22% | 51.47% | 55.36% | 51.84% | 47.4% | 49.46% | 53.77% | 48.98% | 47.72% | 44.59% | 46.33% | 46.16% | 42.04% | 48.64% | 43.08% | 40.96% | 36.5% | 42.08% | 33.25% | 29.16% | 0.76% | 38.33% | 47.2% | 41.6% | 51.08% | 49.59% |
| Gross Profit Growth % | - | -55.27% | 17.08% | -1.06% | 21.61% | 33.2% | -12.56% | 6.6% | 23.19% | -15.41% | -0.97% | -4.54% | -3.67% | -6.81% | -7.06% | 30.25% | 45.43% | -24.32% | 32.41% | 32.16% | 7.98% | -10.09% | 72.43% | 11.34% | 3400.26% | -98.46% | 16.03% | 149% | -8.16% | 25.83% | 53.3% |
| Operating Expenses | 211.34M | 146.63M | 302.79M | 290.37M | 270.37M | 240.93M | 207.45M | 209.93M | 211.3M | 235.39M | 253.18M | 214.29M | 231.16M | 242.05M | 245.86M | 242.74M | 190.26M | 146.4M | 138.23M | 114.82M | 105.17M | 100.99M | 103.06M | 91.15M | 131.78M | 170.34M | 363.74M | 57.9M | 42.8M | 33.5M | 25M |
| OpEx % of Revenue | - | 40.67% | 44.61% | 47.77% | 43.26% | 47.51% | 54.76% | 52.11% | 52.36% | 65.71% | 62.37% | 56.84% | 53.32% | 52.4% | 46.35% | 44.19% | 44.94% | 45.81% | 37.87% | 36.89% | 42.46% | 39.24% | 41.5% | 50.01% | 70.61% | 83.58% | 138.28% | 31.45% | 51.01% | 45.03% | 41.05% |
| Selling, General & Admin | 119.75M | 81.38M | 153.12M | 163.28M | 146.72M | 138.09M | 119.61M | 119.03M | 118.95M | 136.27M | 144.38M | 120.96M | 131.32M | 134.01M | 130.94M | 131.09M | 108.15M | 81.14M | 83.12M | 70.69M | 65.24M | 61.48M | 59.74M | 48.31M | 81.43M | 106.34M | 67.04M | 34.3M | 25M | 18.4M | 13.3M |
| SG&A % of Revenue | - | 22.57% | 22.56% | 26.86% | 23.48% | 27.23% | 31.57% | 29.55% | 29.48% | 38.04% | 35.57% | 32.08% | 30.29% | 29.01% | 24.68% | 23.86% | 25.55% | 25.39% | 22.77% | 22.71% | 26.34% | 23.89% | 24.06% | 26.5% | 43.63% | 52.18% | 25.48% | 18.63% | 29.8% | 24.73% | 21.84% |
| Research & Development | 91.59M | 65.25M | 120.97M | 126.28M | 120.31M | 102.23M | 82.49M | 84.61M | 89.16M | 95.98M | 98.4M | 87.55M | 93.06M | 99.94M | 106.22M | 102.73M | 77.2M | 61.44M | 54.47M | 42.9M | 39.45M | 38.17M | 35.59M | 35.11M | 40.83M | 51.32M | 49.31M | 17.3M | 13.5M | 11.7M | 9.2M |
| R&D % of Revenue | - | 18.1% | 17.82% | 20.77% | 19.25% | 20.16% | 21.78% | 21% | 22.09% | 26.79% | 24.24% | 23.22% | 21.46% | 21.63% | 20.02% | 18.7% | 18.24% | 19.22% | 14.93% | 13.79% | 15.93% | 14.83% | 14.33% | 19.26% | 21.88% | 25.18% | 18.75% | 9.4% | 16.09% | 15.73% | 15.11% |
| Other Operating Expenses | 0 | 0 | 28.69M | 809K | 3.34M | 617K | 5.34M | 6.28M | -536K | -2.22M | -31K | -282K | -356K | -347K | -293K | 8.92M | 4.91M | 3.82M | 639K | 1.23M | 470K | 1.35M | 7.73M | 7.73M | 9.52M | 12.68M | 247.38M | 6.3M | 4.3M | 3.4M | 2.5M |
| Operating Income | 41.28M | 17.03M | 63.14M | 22.17M | 45.52M | 18.81M | -12.45M | 13.08M | -5.01M | -70.88M | -67.04M | -12.95M | -21.57M | -23.02M | -9.31M | 11.77M | 5.14M | -12.04M | 39.3M | 19.26M | -3.72M | -7.04M | 1.44M | -30.55M | -77.35M | -168.79M | -262.91M | 29M | -7.9M | 4.5M | 5.2M |
| Operating Margin % | 8.25% | 4.72% | 9.3% | 3.65% | 7.28% | 3.71% | -3.29% | 3.25% | -1.24% | -19.78% | -16.52% | -3.43% | -4.98% | -4.98% | -1.75% | 2.14% | 1.21% | -3.77% | 10.77% | 6.19% | -1.5% | -2.74% | 0.58% | -16.76% | -41.44% | -82.82% | -99.95% | 15.75% | -9.42% | 6.05% | 8.54% |
| Operating Income Growth % | - | -73.02% | 184.76% | -51.29% | 142.01% | 251.09% | -195.15% | 361.09% | 92.93% | -5.73% | -417.73% | 39.98% | 6.31% | -147.38% | -179.05% | 128.96% | 142.73% | -130.62% | 104.1% | 617.41% | 47.16% | -590.53% | 104.7% | 60.51% | 54.17% | 35.8% | -1006.58% | 467.09% | -275.56% | -13.46% | 36.84% |
| EBITDA | 51.9M | 28.11M | 75.28M | 34.43M | 57.78M | 31.86M | 3.26M | 32.69M | 16.33M | -47.96M | -33.38M | 6.79M | 15.41M | 20.95M | 35.09M | 56.06M | 32.56M | 8.52M | 52.59M | 31.26M | 5.86M | 4.24M | 24.74M | -4.38M | -42.97M | -129.88M | -15.52M | 35.3M | -3.6M | 7.9M | 7.7M |
| EBITDA Margin % | 10.37% | 7.8% | 11.09% | 5.66% | 9.25% | 6.28% | 0.86% | 8.11% | 4.05% | -13.39% | -8.22% | 1.8% | 3.55% | 4.53% | 6.62% | 10.21% | 7.69% | 2.67% | 14.41% | 10.04% | 2.37% | 1.65% | 9.96% | -2.4% | -23.02% | -63.72% | -5.9% | 19.17% | -4.29% | 10.62% | 12.64% |
| EBITDA Growth % | -45.12% | -62.65% | 118.65% | -40.42% | 81.34% | 877.96% | -90.03% | 100.21% | 134.05% | -43.66% | -591.26% | -55.9% | -26.44% | -40.31% | -37.4% | 72.19% | 281.95% | -83.79% | 68.26% | 433.3% | 38.39% | -82.88% | 665.18% | 89.81% | 66.92% | -736.67% | -143.97% | 1080.56% | -145.57% | 2.6% | 37.5% |
| D&A (Non-Cash Add-back) | 10.62M | 11.08M | 12.14M | 12.26M | 12.26M | 13.05M | 15.71M | 19.61M | 21.34M | 22.92M | 33.66M | 19.74M | 36.98M | 43.97M | 44.4M | 44.29M | 27.41M | 20.56M | 13.29M | 12M | 9.58M | 11.28M | 23.3M | 26.17M | 34.38M | 38.91M | 247.38M | 6.3M | 4.3M | 3.4M | 2.5M |
| EBIT | 41.28M | 17.03M | 65.26M | 21.84M | 49.39M | 19.5M | -14.71M | 5.05M | -5.55M | -73.63M | -69.8M | -15.73M | -18.81M | -21.6M | -9.09M | 1.51M | 5.14M | -12.04M | 39.3M | 19.26M | -3.72M | -7.04M | 1.44M | -30.55M | -77.35M | -168.79M | -262.91M | 29M | -7.9M | 4.5M | 5.2M |
| Net Interest Income | -3.91M | -3.8M | -7.33M | -2.7M | -5.04M | -10.63M | -11.51M | -11.65M | -11.4M | -11.08M | -10.63M | -333K | 132K | 219K | 515K | 374K | 1.08M | 3.18M | 9.22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 132K | 219K | 515K | 374K | 297K | 2.3M | 6.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 3.91M | 3.8M | 7.33M | 2.7M | 5.04M | 10.63M | 11.51M | 11.65M | 11.4M | 11.08M | 10.63M | 333K | 0 | 0 | 0 | 0 | 1.08M | 3.18M | 9.22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -6.9M | -8.17M | -5.2M | -3.03M | -1.03M | -9.94M | -13.77M | -19.68M | -11.94M | -13.83M | -13.39M | -3.12M | -224K | -128K | 222K | -140K | 297K | 2.3M | 6.66M | 6.26M | 5.34M | 1.75M | 727K | 1.41M | 931K | 1.57M | -1.41B | 2.6M | -13.5M | 700K | 1M |
| Pretax Income | 34.38M | 8.86M | 57.93M | 19.14M | 44.48M | 8.87M | -26.22M | -6.6M | -16.95M | -84.71M | -80.43M | -16.07M | -21.8M | -23.15M | -9.09M | 11.63M | 5.44M | -9.73M | 45.97M | 25.52M | 1.62M | -5.29M | 2.16M | -29.13M | -76.42M | -167.21M | -1.67B | 31.6M | -21.4M | 5.2M | 6.2M |
| Pretax Margin % | 6.87% | 2.46% | 8.54% | 3.15% | 7.12% | 1.75% | -6.92% | -1.64% | -4.2% | -23.64% | -19.81% | -4.26% | -5.03% | -5.01% | -1.71% | 2.12% | 1.28% | -3.05% | 12.6% | 8.2% | 0.65% | -2.06% | 0.87% | -15.98% | -40.95% | -82.04% | -635.85% | 17.16% | -25.51% | 6.99% | 10.18% |
| Income Tax | 17.37M | 7.64M | 18.72M | -64.85M | 16.3M | -4.38M | 3.05M | -672K | 4.09M | -1.75M | -8.12M | -407K | 24.45M | -44.74M | 1.85M | 2.85M | 9.77M | 14.4M | -18.02M | 2.1M | 609K | 437K | 589K | 300K | 500K | -806K | -18.57M | 7.9M | 13.6M | 300K | 300K |
| Effective Tax Rate % | 50.52% | 86.28% | 32.31% | -338.82% | 36.65% | -49.41% | -11.65% | 10.19% | -24.11% | 2.07% | 10.09% | 2.53% | -112.2% | 193.25% | -20.39% | 24.53% | 179.7% | -147.96% | -39.21% | 8.23% | 37.69% | -8.25% | 27.23% | -1.03% | -0.65% | 0.48% | 1.11% | 25% | -63.55% | 5.77% | 4.84% |
| Net Income | -41.94M | -43.31M | 39.22M | 83.99M | 28.18M | 13.25M | -29.27M | -5.92M | -21.04M | -82.95M | -72.31M | -15.66M | -46.25M | 37.03M | -10.94M | 8.78M | -4.33M | -24.14M | 63.99M | 23.42M | 1.01M | -5.73M | 1.57M | -29.43M | -76.92M | -166.41M | -1.65B | 23.7M | -21.5M | 4.9M | 5.9M |
| Net Margin % | -8.38% | -12.01% | 5.78% | 13.82% | 4.51% | 2.61% | -7.73% | -1.47% | -5.21% | -23.16% | -17.82% | -4.15% | -10.67% | 8.02% | -2.06% | 1.6% | -1.02% | -7.55% | 17.53% | 7.53% | 0.41% | -2.23% | 0.63% | -16.15% | -41.21% | -81.65% | -628.79% | 12.87% | -25.63% | 6.59% | 9.69% |
| Net Income Growth % | -178.77% | -210.44% | -53.31% | 198.04% | 112.63% | 145.28% | -394.11% | 71.84% | 74.64% | -14.71% | -361.75% | 66.14% | -224.9% | 438.55% | -224.58% | 302.51% | 82.04% | -137.72% | 173.22% | 2225.82% | 117.57% | -464.1% | 105.35% | 61.73% | 53.78% | 89.94% | -7078.94% | 210.23% | -538.78% | -16.95% | 43.9% |
| Net Income (Continuing) | 17.01M | 1.22M | 39.22M | 83.99M | 28.18M | 13.25M | -29.27M | -5.92M | -21.04M | -82.95M | -72.31M | -15.66M | -46.25M | 21.59M | -16.19M | 2.02M | -4.33M | -24.14M | 63.99M | 23.42M | 1.01M | -5.73M | 1.57M | -29.43M | -76.92M | -166.41M | -1.65B | 23.7M | -21.5M | 4.9M | 5.9M |
| Discontinued Operations | -2M | -44.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 15.44M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.38 | -0.38 | 0.33 | 0.72 | 0.25 | 0.12 | -0.30 | -0.07 | -0.25 | -1.02 | -0.93 | -0.18 | -0.50 | 0.34 | -0.09 | 0.08 | -0.04 | -0.25 | 0.67 | 0.28 | 0.01 | -0.08 | 0.02 | -0.47 | -1.29 | -2.84 | -34.06 | 0.76 | -0.46 | 0.11 | 0.26 |
| EPS Growth % | -179.16% | -215.15% | -54.17% | 188% | 108.33% | 140% | -328.57% | 72% | 75.49% | -9.68% | -416.67% | 64% | -247.06% | 462.09% | -217.38% | 287.35% | 82.92% | -137.31% | 139.29% | 2700% | 112.79% | -491% | 104.26% | 63.57% | 54.58% | 91.66% | -4581.58% | 265.22% | -518.18% | -57.69% | 160% |
| EPS (Basic) | - | -0.38 | 0.34 | 0.75 | 0.27 | 0.13 | -0.30 | -0.07 | -0.25 | -1.02 | -0.93 | -0.18 | -0.50 | 0.35 | -0.09 | 0.08 | -0.04 | -0.25 | 0.68 | 0.29 | 0.01 | -0.08 | 0.02 | -0.47 | -1.29 | -2.84 | -34.06 | 0.84 | -0.46 | 0.12 | 0.26 |
| Diluted Shares Outstanding | 110.62M | 114.18M | 117.48M | 117.36M | 112.38M | 106.17M | 96.97M | 89.58M | 85.61M | 80.97M | 77.7M | 87.51M | 92.51M | 107.81M | 116.46M | 116.43M | 101.49M | 95.83M | 95.43M | 83.25M | 75.18M | 73.28M | 73.04M | 62.29M | 59.78M | 58.54M | 48.56M | 30.97M | 46.49M | 20.83M | 22.95M |
| Basic Shares Outstanding | 109.71M | 113.66M | 115.12M | 111.65M | 105.08M | 101.48M | 96.97M | 89.58M | 85.61M | 80.97M | 77.7M | 87.01M | 92.5M | 106.53M | 115.64M | 115.17M | 101.49M | 95.83M | 94.53M | 81.88M | 74.64M | 73.28M | 72.02M | 62.29M | 59.78M | 58.54M | 48.56M | 28.29M | 46.49M | 20.83M | 22.95M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cyclical MSO CapEx dependency
As indicated by recent financial disclosures, Harmonic's revenue trajectory remains highly erratic, evidenced by a sharp 46.88% year-over-year decline in the most recent period, which suggests that the company's reliance on large-scale, milestone-driven infrastructure deployments creates significant quarterly revenue instability rather than consistent organic growth.
The revenue profile appears tethered to the capital expenditure cycles of a concentrated base of Tier-1 cable operators. This lumpy recognition pattern makes it difficult to discern underlying demand momentum from the timing of project completions, warranting caution when extrapolating short-term performance.
Based on reported income statements, Harmonic's gross margin has fluctuated between 44.4% and 57.0% over the last ten quarters, suggesting that the company's profitability is highly sensitive to the shifting mix between high-margin software-defined networking solutions and lower-margin legacy hardware components within the Cable Access segment.
The compression observed in recent periods may indicate a temporary shift toward hardware-heavy deployments or competitive pricing pressures. Investors should monitor whether the transition to a recurring SaaS model in the Video segment can eventually provide a more stable and structurally higher margin floor.
According to historical data, Harmonic's operating income has failed to scale consistently with gross profit, as persistent R&D and SG&A investments—often exceeding $60 million combined in peak quarters—frequently offset gross margin gains, resulting in an inconsistent operating margin profile that remains vulnerable to revenue contraction.
The company's cost structure appears heavily weighted toward maintaining its software-defined networking stack, which limits operating leverage during periods of revenue decline. This suggests that management prioritizes long-term technical positioning over short-term operating margin expansion, a strategy that requires sustained revenue growth to validate.
Financial filings reveal that Harmonic maintains a substantial fixed-cost base, with R&D expenses frequently consuming a significant portion of gross profit, which appears to limit the company's ability to maintain profitability during the inevitable 'air pockets' that occur between major cable infrastructure upgrade cycles.
The persistence of these expenses suggests that the company is locked into a high-investment phase to defend its vCMTS market position. Without a corresponding increase in recurring software revenue, this cost structure may continue to exert downward pressure on net income during cyclical downturns.
While management highlights the success of the CableOS pivot, the -12.01% net margin reported in recent periods suggests that the company's transition to a software-centric model has yet to achieve the scale necessary to offset the inherent volatility and declining nature of its legacy video business.
Short-term observers may focus on the risk that the Cable Access segment is merely a cyclical replacement for legacy hardware, rather than a durable, high-margin software franchise. The ongoing strategic review of the Video segment further implies that the current business model may be unsustainable in its present form.
Quick answers to the most common questions about buying HLIT stock.
For fiscal year 2025, Harmonic Inc. (HLIT) reported total revenue of $360.5M. This represents a 492.0% increase compared to $60.9M in 1996.
Harmonic Inc. (HLIT) reported a net loss of $43.3M for the fiscal year ending 2025.
Harmonic Inc. (HLIT) reported an operating income of $17.0M, resulting in an operating profit margin of 4.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Harmonic Inc. (HLIT) generated $163.7M in gross profit for the year, representing a gross profit margin of 45.4%. This demonstrates the company's core pricing power and production efficiency.