Slide 1: Earnings Conference Call Second Quarter 2025
EARNINGS CONFERENCE CALL SECOND QUARTER 2025 Nimrod Ben-Natan, President & CEO Walter Jankovic, CFO July 28, 2025 1 1
Slide 2: Forward-Looking Statements
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 repu
Slide 3: At-a-Glance
AT-A-GLANCE BROADBAND & VIDEO SILICON VALLEY Two market-leading Headquarters business units Q2 2025 REVENUE CLOUD NATIVE $138.0M INNOVATION Broadband: $86.9M Video: $51.1M LEADER MARKET MARKET-LEADING CAPITALIZATION1 CUSTOMERS $1.0B Worldwide Revolutionizing Broadband Networks and Cloud Streaming 1
Slide 4: Overview: Executing Towards Our Long-Term Growth Plan
OVERVIEW EXECUTING TOWARDS OUR LONG-TERM GROWTH PLAN Delivered on Navigating Tariffs & Q2 2025 Commitments Shift to Unified DOCSIS 4.0 in 2025 • Broadband revenues and profitability exceeded • Below revenue trend year expected in Broadband due expectations with strong execution and bookings to Unifi
Slide 5: Broadband Vision
BROADBAND VISION POSITIONED TO GROW Accelerate the adoption of next- generation, virtualized broadband networks for speed, reliability, and simplicity, over DOCSIS and Fiber 5
Slide 6: Broadband Strategic Imperatives Update
BROADBAND STRATEGIC IMPERATIVES UPDATE Customer Diversification Technology Leadership • Four new customer wins and several past • cOS orchestrating DOCSIS and Fiber wins starting to deploy in Q2 • DOCSIS 4.0 Unified speed breakthrough (14G) • Strong Rest of World (ROW) bookings in Q2 • Recent innova
Slide 7: Video Market Trends
VIDEO MARKET TRENDS HARMONIC IS WELL POSITIONED TO LEAD Leading Video Appliances Leading Agnostic Video SaaS Provider TRANSFORMING BROADCAST TV ENABLING PREMIUM STREAMING PRODUCTION & DISTRIBUTION SPORTS TV VOD STREAMING EVERYWHERE PLAYOUT • Unified signal for all viewers • Dedicated stream per view
Slide 8: Video Strategic Imperatives Update
VIDEO STRATEGIC IMPERATIVES UPDATE Appliance Profitability SaaS Transformation • Winning and executing on primary • Q2 SaaS record revenue $15.4M distribution and takeout deals • Expansion of sports streaming • Strong pipeline and backlog • Strong and growing Tier 1 Pipeline entering Q3’25 • Akamai
Slide 9: Financial Results and Outlook
SECOND QUARTER 2025 FINANCIAL RESULTS AND OUTLOOK Walter Jankovic, CFO 9
Slide 10: Q2 2025 Financial Highlights
Q2 2025 FINANCIAL HIGHLIGHTS* CONSOLIDATED RESULTS BROADBAND RESULTS VIDEO RESULTS • Revenue of $138.0 million, • Revenue of $86.9 million, • Revenue $51.1 million, up down 0.5% from prior year down 6.5% from prior year 11.6% from prior year • EPS of $0.09, up $0.01 from • Adj. EBITDA of $10.8 milli
Slide 11: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES $200M Stock Inorganic Organic Repurchase Expansion Growth Authorization Opportunities • ROW growth investments • $14M in stock repurchases • Leverage our growing • Working capital for growth during Q2 2025 footprint in Broadband • Additional service offerings • Expect s
Slide 12: Q2 2025 Revenue & Gross Margin Highlights
Q2 2025 REVENUE & GROSS MARGIN HIGHLIGHTS* Financial Metric Q2 Q1 Q2 Q2/Q1 Q2 Y/Y ($ Millions) 2025 2025 2024 Change 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%
Slide 13: Q2 2025 Earnings and Bookings Highlights
Q2 2025 EARNINGS AND BOOKINGS HIGHLIGHTS* Financial Metric Q2 Q1 Q2 Q2/Q1 Q2 Y/Y $ Millions (except EPS) 2025 2025 2024 Change 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 $6.
Slide 14: Q2 2025 Balance Sheet & Cash Flow Highlights
Q2 2025 BALANCE SHEET & CASH FLOW HIGHLIGHTS Financial Metric Q2 Q1 Q2 ($ Millions) 2025 2025 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 $84.
Slide 15: Q3 2025 Financial Guidance
Q3 2025 FINANCIAL GUIDANCE* Financial Metric Broadband Video Consolidated Net Revenue ($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 *
Slide 16: Conclusion
CONCLUSION MARKET LEADER POSITIONED FOR GROWTH Navigating 2025 Q2 2025 Exceeded Growth Rebound Broadband & Tariff Expectations Expected in 2026 Headwinds • Technology leadership positions KEY LONG-TERM • Strong operating model CATALYSTS • Proven execution 16
Slide 17: Wrap-Up & Q&A
WRAP-UP & Q&A 17 17
Slide 18: Use of Non-GAAP Financial Measures
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
Slide 19: Q2 2025 GAAP to Non-GAAP Reconciliations
Q2 2025 GAAP TO NON-GAAP RECONCILIATIONS (UNAUDITED, IN THOUSANDS, EXCEPT EPS AND PERCENTAGES) 19
Slide 20: Q1 2025 GAAP to Non-GAAP Reconciliations
Q1 2025 GAAP TO NON-GAAP RECONCILIATIONS (UNAUDITED, IN THOUSANDS, EXCEPT EPS AND PERCENTAGES) 20
Slide 21: Q2 2024 GAAP to Non-GAAP Reconciliations
Q2 2024 GAAP TO NON-GAAP RECONCILIATIONS (UNAUDITED, IN THOUSANDS, EXCEPT EPS AND PERCENTAGES) 21
Slide 22: Adj. EBITDA Calculations
ADJ. EBITDA CALCULATIONS (UNAUDITED, IN THOUSANDS) 22
Slide 23: Adj. EBITDA Reconciliations
ADJ. EBITDA RECONCILIATIONS (UNAUDITED, IN THOUSANDS) 23
Slide 24: Guidance GAAP to Non-GAAP Reconciliations
GUIDANCE GAAP TO NON-GAAP RECONCILIATIONS (UNAUDITED, IN MILLIONS, EXCEPT EPS AND PERCENTAGES) 24
Slide 25: Guidance Adj. EBITDA Calculations
GUIDANCE ADJ. EBITDA CALCULATIONS (UNAUDITED, IN MILLIONS) 25
Slide 26: Guidance Adj. EBITDA Reconciliations
GUIDANCE ADJ. EBITDA RECONCILIATIONS (UNAUDITED, IN MILLIONS) 26
Slide 27: Thank You.
THANK YOU. 27 27