Harmonic(NASDAQ) HLIT

Harmonic Inc. helps internet companies provide fast web and TV services to homes. It creates software and hardware that make broadband networks more efficient. This technology ensures people have reliable internet for work, gaming, and streaming.

Helping Homes Get Online

• Appliance and Integration: Hardware and setup services used to build high-speed broadband networks; accounted for 87% of net revenue for the six-month period ended July 3, 2026.
• SaaS and Service: Ongoing software usage fees and technical support for internet providers; accounted for 13% of net revenue for the six-month period ended July 3, 2026.

Shedding Segments to Grow

• Finalized the sale of the Video business to MediaKind for $145 million on June 16, 2026.
• Allocated $137.9 million in closing proceeds toward strategic growth initiatives and share repurchases.
• Adopted distributed access architecture, which moves network functions closer to the user, to support faster data speeds.
• Continued a $200 million share repurchase program with $78.0 million remaining as of July 3, 2026.

Better Software for Better Networks

The company replaces traditional hardware with software-based systems to save space and power for internet providers. This approach helps operators upgrade to faster speeds without frequent and expensive equipment replacements.

The Financial Scoreboard

• Total net revenue was $133.5 million in the quarter ended July 3, 2026, up 54% year over year.
• Gross margin reached 52.4% in the quarter ended July 3, 2026, compared to 45.8% year over year.
• Cash and cash equivalents reached $231.9 million as of July 3, 2026, following the sale of the Video business.
• Market cap stood at $1.5 billion for the second quarter of 2026, up 42.1% year over year.

Bottom Line

Harmonic has evolved from a video-focused firm into a specialist in software-defined broadband infrastructure. By shedding its legacy video segment, the company is focusing entirely on the global transition to high-speed fiber and data services.