Business
Harmonic Announces Second Quarter 2026 Results
Harmonic Announces Second Quarter 2026
About this update from Harmonic Inc.
Broadband revenue increased 54% year over year, including 44% growth in Rest-of-Market Company raises full-year outlook to reflect Broadband revenue of $505 million - $525 million Cash increased to $232 million with the completed sale of the Video business SAN JOSE, Calif. , Aug. 12, 2026 /PRNewswire/ -- Harmonic Inc. (Nasdaq: HLIT) today announced its unaudited results for the second quarter ended July 3, 2026. "Our strong business momentum continued in the second quarter, with Broadband revenue growth accelerating to 54% year over year, including 44% growth in Rest-of-Market," said Nimrod Ben-Natan, president and chief executive officer of Harmonic. "Equally important, it was another quarter of strong bookings, led by Rest-of-Market, enabling us to once again raise our full-year 2026 outlook. With the sale of the Video business now complete, we have the capital and focus to further accelerate our broadband growth." Financial and Business Highlights Total Company Financial Results Q2 2026 GAAP Non-GAAP (Unaudited, in millions, except per share data) Net revenue $ 173.0 $ n/a Operating profit 18.4 35.6 Net income (loss) per share $ (0.02) $ 0.24 Continuing Operations Financial Results - Broadband Q2 2026 GAAP Non-GAAP (Unaudited, in millions, except per share data) Net revenue $ 133.5 $ n/a Operating profit (1) 23.6 31.3 Net income per share (1) $ 0.16 $ 0.21 Backlog and deferred revenue of $587.6 million, an increase of 71%, compared to $344.2 million last year Cash: $231.9 million at July 3, 2026, compared to $124.1 million at December 31, 2025 Continuing Operations Business Highlights - Broadband Commercially deployed our cOS™ solution with 161 customers, serving 48.2 million CPE devices, with ongoing expansion across all tier-1 accounts and new customer wins Rest-of-Market bookings represented approximately 60% of total Q2 bookings, reflecting meaningful progress in customer diversification Achieved first SeaStar MDU deployment and secured multi-million dollar orders for the recently announced Pearl-1XL and Oyster+ fiber products __________________________________ (1) Includes approximately $2.3 million of stranded costs associated with the Video divestiture for Q2 2026. Discontinued Operations - Video Business The results of the Company's Video Business are presented as held-for-sale and discontinued operations in the condensed consolidated statements of operations and condensed consolidated balance sheets for all periods presented in this press release. As previously announced, on December 8, 2025, the Company entered into a Put Option Agreement to sell its Video business to Leone Media Inc. (d/b/a MediaKind) for a purchase price of $145 million in cash (the "Disposition"). On March 20, 2026, MediaKind and the Company executed the Asset Purchase Agreement (the "APA") for the Disposition. On June 16, 2026, the Company and MediaKind completed the Disposition. Proceeds from the sale were $137.9 million paid at closing, subject to final post-closing adjustments under the terms of the APA. Following the Disposition, Harmonic operates as a pure-play broadband company with a single reportable segment: Broadband. As such, and unless stated otherwise, all results presented in the following table reflect those of continuing operations. Select Financial Information from Continuing Operations - Broadband GAAP Non-GAAP Key Financial Results Q2 2026 Q1 2026 Q2 2025 Q2 2026 Q1 2026 Q2 2025 (Unaudited, in millions, except per share data) Net revenue $ 133.5 $ 121.7 $ 86.9 n/a n/a n/a Operating profit (loss) (1) $ 23.6 $ 20.4 $ (0.8) $ 31.3 $ 26.0 $ 7.0 Net income (loss) per share $ 0.16 $ 0.09 $ (0.01) $ 0.21 $ 0.17 $ 0.03 Other Financial Information Q2 2026 Q1 2026 Q2 2025 (Unaudited, in millions) Bookings for the quarter $ 144.3 $ 115.9 $ 131.0 Backlog and deferred revenue as of quarter end $ 587.6 $ 582.1 $ 344.2 Cash and cash equivalents as of quarter end $ 231.9 $ 109.0 $ 123.9 Explanations regarding our use of Non-GAAP financial measures and related definitions, and reconciliations of our GAAP and Non-GAAP measures, are provided in the sections below entitled "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations." ___________________________________ (1) Includes stranded costs of approximately $2.3 million in Q2 2026, $2.3 million in Q1 2026, and $1.7 million in Q2 2025. GAAP Financial Guidance for Continuing Operations - Broadband Q3 2026 GAAP Financial Guidance (1) (Unaudited, in millions, except percentages and per share data) Low High Net revenue $ 125 $ 135 Gross margin % 51.0 % 52.0 % Operating profit (2) $ 17 $ 22 Tax rate 30.0 % 30.0 % Net income per share $ 0.10 $ 0.14 Shares (3) 110.4 110.4 2026 GAAP Financial Guidance (1) (Unaudited, in millions, except percentages and per share data) Low High Net revenue $ 505 $ 525 Gross margin % 50.9 % 51.8 % Operating profit (2) $ 74 $ 86 Tax rate 30.0 % 30.0 % Net income per share $ 0.44 $ 0.53 Shares (3) 110.4 110.4 Non-GAAP Financial Guidance for Continuing Operations - Broadband Q3 2026 Non-GAAP Financial Guidance (1) (Unaudited, in millions, except percentages and per share data) Low High Gross margin % 51.0 % 52.0 % Gross profit $ 64 $ 70 Operating profit (2) $ 23 $ 28 Tax rate 23.0 % 23.0 % Net income per share $ 0.15 $ 0.19 Shares (3) 110.4 110.4 2026 Non-GAAP Financial Guidance (1) (Unaudited, in millions, except percentages and per share data) Low High Gross margin % 51.0 % 52.0 % Gross profit $ 258 $ 273 Operating profit (2) $ 99 $ 111 Tax rate 23.0 % 23.0 % Net income per share $ 0.67 $ 0.75 Shares (3) 110.4 110.4 ________________________________ (1) Refer to "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations on Financial Guidance" below. Components may not sum to total due to rounding. (2) Includes approximately $2.3 million and $10.0 million of stranded costs associated with the Video business divestiture for Q3 and FY 2026, respectively. (3) Diluted shares assumes stock price of $12.95 (Q2 2026 average price). Conference Call Information Harmonic will host a conference call to discuss its financial results at 2:00 p.m. PT (5:00 p.m. ET) on Wednesday, August 12, 2026. The live webcast will be available on the Harmonic Investor Relations website at http://investor.harmonicinc.com . To participate via telephone, please register in advance using this link, https://register-conf.media-server.com/register/BI6b44bd6531a743fb82a359cc25e46844 . A replay will be available after 5:00 p.m. PT on the same website. About Harmonic Inc. Harmonic (NASDAQ: HLIT), the worldwide leader in virtualized broadband solutions, is transforming multi-gigabit connectivity. The company's industry-leading cOS™ virtualized broadband platform, suite of solutions for fiber and DOCSIS, and a growing portfolio of AI-powered network intelligence solutions, enable broadband service providers to simplify operations, deliver exceptional subscriber experiences and expand revenue streams. With thousands of vCMTS servers and hundreds of thousands of RPDs deployed globally, Harmonic powers next-generation broadband services with five-nines reliability. Anchored with a customer-first approach and driven by a legacy of innovation, Harmonic supports broadband service providers at every stage of their network evolution. More information is available at www.harmonicinc.com . Legal Notice Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements related to our expectations regarding: net revenue; gross margins; operating expenses; operating income (loss), including stranded costs associated with the disposition of the Video business; tax expense and tax rate, and net income (loss) per diluted share. Our expectations regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, but are not limited to, in no particular order, the following: customer concentration and consolidation; loss of one or more key customers; delays or decreases in capital spending in the cable or telco industries; the possibility that our products will not generate sales that are commensurate with our expectations or that our cost of revenue or operating expenses may exceed our expectations; the market and technology trends underlying our Broadband business will not continue to develop in their current direction or pace; the impact of tariffs and general economic conditions on our sales and operations; the mix of products and services sold in various geographies and the effect it has on gross margins; our ability to develop new and enhanced products in a timely manner and market acceptance of our new or existing products; risks associated with our international operations; exchange rate fluctuations of the currencies in which we conduct business; risks associated with our cOS™ product solutions; dependence on various broadband industry trends; inventory management; the lack of timely availability or the impact of increases in the prices of parts or raw materials necessary to produce our products; the effect of competition, on both revenue and gross margins; difficulties associated with rapid technological changes in our markets; risks associated with unpredictable sales cycles; our dependence on contract manufacturers and sole or limited source suppliers; stock repurchases may not be conducted in the timeframe or in the manner we expect, or at all; and the impact on our business of natural disasters. In some cases, you can identify forward-looking statements by terminology such as, "may," "will," "should," "expects," "plans," "anticipates," "could," "believes," "intends," "estimates," "predicts," "potential," or "continue" or the negative of these terms or other comparable terminology. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Harmonic's filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K for the year ended December 31, 2025, our most recent Quarterly Report on Form 10-Q and our Current Reports on Form 8-K. The forward-looking statements in this press release are based on information available to the Company as of the date hereof, and Harmonic disclaims any obligation to update any forward-looking statements . Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP" or referred to herein as "reported"). However, management believes that certain Non-GAAP financial measures provide management and other users with additional meaningful financial information that should be considered when assessing our ongoing performance. Our management regularly uses our supplemental Non-GAAP financial measures internally to understand, manage and evaluate our business, establish operating budgets, set internal measurement targets and make operating decisions. These Non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from Non-GAAP measures used by other companies. In addition, these Non-GAAP measures are not based on any comprehensive set of accounting rules or principles. The Company believes that Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Harmonic's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Harmonic's results of operations in conjunction with the corresponding GAAP measures. The Company believes that the presentation of Non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provide useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the Company's reported results prepared in accordance with GAAP. The Non-GAAP measures presented here are: Gross profit, operating expenses, income (loss) from operations, non-operating expenses and 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 Non-GAAP financial measures discussed in this press release to the most directly comparable historical GAAP financial measures is included with the financial statements provided with this press release. The Non-GAAP adjustments described below have historically been excluded from our GAAP financial measures. Our Non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects: Stock-based compensation - Although stock-based compensation is a key incentive offered to our employees, we continue to evaluate our business performance excluding stock-based compensation expenses. We believe that management is limited in its ability to project the impact stock-based compensation would have on our operating results. In addition, for comparability purposes, we believe it is useful to provide a Non-GAAP financial measure that excludes stock-based compensation in order to better understand the long-term performance of our core business and to facilitate the comparison of our results to the results of our peer companies. Non-recurring advisory fees - There were non-recurring costs that we excluded from Non-GAAP results relating to professional accounting, tax and legal fees associated with strategic corporate initiatives. Divestiture related employee compensation costs - There were non-recurring costs that we excluded from Non-GAAP results relating to employee compensation costs resulting from the divestiture. Discrete tax items and tax effect of Non-GAAP adjustments - The income tax effect of Non-GAAP adjustments relates to the tax effect of the adjustments that we incorporate into Non-GAAP financial measures in order to provide a more meaningful measure of Non-GAAP net income. This non-recurring adjustment has been excluded from the Company's non-GAAP tax rate and non-GAAP financial measures, as management believes exclusion of this item provides more meaningful period-to-period comparisons of ongoing operating performance Harmonic Inc. Preliminary Condensed Consolidated Balance Sheets (Unaudited, in thousands, except par value) July 3, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 231,862 $ 124,105 Accounts receivable, net of allowances for credit losses of $136 and $227 as of July 3, 2026 and December 31, 2025, respectively 89,906 85,935 Inventories 66,473 47,840 Prepaid expenses and other current assets 28,948 12,530 Assets held for sale — 223,961 Total current assets 417,189 494,371 Property and equipment, net 23,478 25,648 Operating lease right-of-use assets 13,142 13,687 Goodwill 61,092 60,900 Deferred income taxes, net 99,425 104,043 Other non-current assets 18,319 19,834 Total assets $ 632,645 $ 718,483 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 2,944 $ 2,944 Accounts payable 39,263 23,093 Deferred revenue 20,775 31,519 Operating lease liabilities 5,988 6,433 Other current liabilities 67,962 48,288 Liabilities to be disposed of — 85,671 Total current liabilities 136,932 197,948 Long-term debt 107,667 109,140 Operating lease liabilities, non-current 13,524 14,664 Other non-current liabilities 14,176 13,485 Total liabilities 272,299 335,237 Stockholders' equity: Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding — — Common stock, $0.001 par value, 150,000 shares authorized; 109,024 and 111,186 shares issued and outstanding at July 3, 2026 and December 31, 2025, respectively 109 111 Additional paid-in capital 2,483,251 2,466,177 Accumulated deficit (2,114,668) (2,076,406) Accumulated other comprehensive loss (8,346) (6,636) Total stockholders' equity 360,346 383,246 Total liabilities and stockholders' equity $ 632,645 $ 718,483 Harmonic Inc. Preliminary Condensed Consolidated Statements of Operations (Unaudited, in thousands, except per share data) Three Months Ended Six Months Ended July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025 Revenue: Appliance and integration $ 117,016 $ 72,601 $ 220,775 $ 144,126 SaaS and service 16,446 14,317 34,382 27,670 Total net revenue 133,462 86,918 255,157 171,796 Cost of revenue: Appliance and integration 56,413 41,652 107,271 74,086 SaaS and service 7,161 5,480 14,383 11,444 Total cost of revenue 63,574 47,132 121,654 85,530 Total gross profit 69,888 39,786 133,503 86,266 Operating expenses: Research and development 21,199 17,992 42,080 37,656 Selling, general and administrative 24,630 20,483 46,915 40,263 Asset impairment and related charges 428 1,637 428 1,637 Restructuring and related charges — 428 — 428 Total operating expenses 46,257 40,540 89,423 79,984 Income from operations 23,631 (754) 44,080 6,282 Interest expense, net (1,082) (1,090) (2,161) (2,401) Other expense, net (579) (1,192) (621) (1,813) Income before income taxes 21,970 (3,036) 41,298 2,068 Provision for income taxes 4,919 (2,179) 14,599 556 Income (loss) from continuing operations, net of tax 17,051 (857) 26,699 1,512 Income (loss) from discontinued operations, net of tax (19,375) 3,728 (21,714) 7,299 Net income (loss) $ (2,324) $ 2,871 $ 4,985 $ 8,811 Net income (loss) per share: Basic: Continuing operations $ 0.16 $ (0.01) $ 0.24 $ 0.01 Discontinued operations (0.18) 0.04 (0.19) 0.07 Basic net income (loss) per share $ (0.02) $ 0.03 $ 0.05 $ 0.08 Diluted: Continuing operations $ 0.16 $ (0.01) $ 0.24 $ 0.01 Discontinued operations (0.18) 0.04 (0.19) 0.07 Diluted net income (loss) per share $ (0.02) $ 0.03 $ 0.05 $ 0.08 Weighted average common shares: Basic 108,654 113,392 109,186 114,855 Diluted 109,682 113,392 110,176 115,256 Harmonic Inc. Preliminary Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands) Six Months Ended July 3, 2026 June 27, 2025 Cash flows from Continuing and Discontinued Operations Cash flows from operating activities: Net income $ 4,985 $ 8,811 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 5,193 5,392 Asset impairment and related charges 428 1,637 Stock-based compensation 21,467 16,162 Foreign currency remeasurement (88) 596 Deferred income taxes, net 2,917 (2,718) Loss on divestiture 6,251 — Provision for excess and obsolete inventories 1,441 1,988 Other 18 (9) Changes in operating assets and liabilities: Accounts receivable, net (8,152) 58,067 Inventories (23,567) (6,607) Prepaid expenses and other assets (4,334) (492) Accounts payable 16,729 3,030 Deferred revenues (5,979) 2,202 Other liabilities 8,951 (16,151) Net cash provided by operating activities 26,260 71,908 Cash flows from investing activities: Proceeds from divestiture, net of cash retained and transaction costs (1) 131,963 — Purchases of property and equipment (3,005) (5,672) Net cash provided by (used in) investing activities 128,958 (5,672) Cash flows from financing activities: Proceeds from long-term debt 170,000 40,000 Repayment of long-term debt and other borrowings (171,519) (42,466) Repurchase of common stock (42,950) (50,102) Proceeds from other borrowings — 3,835 Proceeds from common stock issued to employees 4,534 3,056 Taxes paid related to net share settlement of equity awards (6,025) (3,206) Net cash used in financing activities (45,960) (48,883) Effect of exchange rate changes on cash and cash equivalents and restricted cash (1,479) 5,132 Net increase (decrease) in cash and cash equivalents and restricted cash 107,779 22,485 Cash and cash equivalents and restricted cash at beginning of period (2) 124,461 101,789 Cash and cash equivalents and restricted cash at end of period $ 232,240 $ 124,274 Cash and cash equivalents and restricted cash at end of period Cash and cash equivalents $ 231,862 $ 123,918 Restricted cash included in other current assets 378 356 Total cash, cash equivalents and restricted cash as shown in the condensed consolidated statement of cash flows $ 232,240 $ 124,274 __________________________ 1 Proceeds from divestiture includes transaction costs of $3.8 million and cash retained in the business sold of $2.1 million. 2 Restricted cash included in other current assets was $356 and $332 as of December 31, 2025 and 2024 respectively. Harmonic Inc. Preliminary Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands) Six Months Ended July 3, 2026 June 27, 2025 Supplemental cash flow disclosure: Income tax payments, net $ 4,914 $ 13,764 Interest payments, net $ 2,162 $ 2,715 Supplemental schedule of non-cash investing activities: Capital expenditures incurred but not yet paid $ 591 $ 1,141 Harmonic Inc. Preliminary GAAP Revenue Information (Unaudited, in thousands, except percentages) Three Months Ended July 3, 2026 April 3, 2026 June 27, 2025 Geography Americas $ 120,603 91 % $ 106,430 87 % $ 80,283 92 % EMEA 8,421 6 % 10,459 9 % 5,776 7 % APAC 4,438 3 % 4,806 4 % 859 1 % Total $ 133,462 100 % $ 121,695 100 % $ 86,918 100 % Customer Top 2 customers (1) $ 84,053 63 % $ 71,101 58 % $ 52,611 61 % Rest-of-Market 49,409 37 % 50,594 42 % 34,307 39 % Total $ 133,462 100 % $ 121,695 100 % $ 86,918 100 % Six Months Ended July 3, 2026 June 27, 2025 Geography Americas $ 227,033 89 % $ 155,306 91 % EMEA 18,880 7 % 14,396 8 % APAC 9,244 4 % 2,094 1 % Total $ 255,157 100 % $ 171,796 100 % Customer Top 2 customers (1) $ 155,154 61 % $ 109,114 64 % Rest-of-Market 100,003 39 % 62,682 36 % Total $ 255,157 100 % $ 171,796 100 % __________________________________ (1) Based on largest subscriber footprint Harmonic Inc. GAAP to Non-GAAP Reconciliations (Unaudited) (in thousands, except percentages and per share data) Three Months Ended July 3, 2026 Revenue Gross Profit Total Operating Expense Operating Profit Total Non- operating Expense, net Net Income GAAP $ 133,462 $ 69,888 $ 46,257 $ 23,631 $ (1,661) $ 17,051 Stock-based compensation — 808 (6,476) 7,284 — 7,284 Lease-related asset impairment and other charges (1) — — (428) 428 — 428 Discrete tax items and tax effect of Non- GAAP adjustments — — — — — (1,908) Total adjustments — 808 (6,904) 7,712 — 5,804 Non-GAAP $ 133,462 $ 70,696 $ 39,353 $ 31,343 $ (1,661) $ 22,855 As a % of revenue (GAAP) 52.4 % 34.7 % 17.7 % (1.2) % 12.8 % As a % of revenue (Non-GAAP) 53.0 % 29.5 % 23.5 % (1.2) % 17.1 % Diluted net income per share: GAAP $ 0.16 Non-GAAP $ 0.21 Shares used in per share calculation: GAAP and Non-GAAP 109,682 (1) Includes impairment charges of $0.1 million for right-of-use assets and $0.3 million related to the fair value of other unrecoverable facility costs. Three Months Ended April 3, 2026 Revenue Gross Profit Total Operating Expense Operating Profit Total Non- operating Expense, net Net Income GAAP $ 121,695 $ 63,615 $ 43,166 $ 20,449 $ (1,121) $ 9,648 Stock-based compensation — 265 (5,299) 5,564 — 5,564 Discrete tax items and tax effect of Non- GAAP adjustments — — — — — 3,581 Total adjustments — 265 (5,299) 5,564 — 9,145 Non-GAAP $ 121,695 $ 63,880 $ 37,867 $ 26,013 $ (1,121) $ 18,793 As a % of revenue (GAAP) 52.3 % 35.5 % 16.8 % (0.9) % 7.9 % As a % of revenue (Non-GAAP) 52.5 % 31.1 % 21.4 % (0.9) % 15.4 % Diluted net income per share: GAAP $ 0.09 Non-GAAP $ 0.17 Shares used in per share calculation: GAAP and Non-GAAP 110,617 Harmonic Inc. GAAP to Non-GAAP Reconciliations (Unaudited) (in thousands, except percentages and per share data) Three Months Ended June 27, 2025 Revenue Gross Profit Total Operating Expense Operating Profit (Loss) Total Non- operating Expense, net Net Income (Loss) GAAP $ 86,918 $ 39,786 $ 40,540 $ (754) $ (2,282) $ (857) Stock-based compensation — 358 (5,297) 5,655 — 5,655 Restructuring and related charges — — (428) 428 — 428 Asset impairment and related charges (1) — — (1,637) 1,637 — 1,637 Discrete tax items and tax effect of Non- GAAP adjustments — — — — — (3,163) Total adjustments — 358 (7,362) 7,720 — 4,557 Non-GAAP $ 86,918 $ 40,144 $ 33,178 $ 6,966 $ (2,282) $ 3,700 As a % of revenue (GAAP) 45.8 % 46.6 % (0.9) % (2.6) % (1.0) % As a % of revenue (Non-GAAP) 46.2 % 38.2 % 8.0 % (2.6) % 4.3 % Diluted net income (loss) per share: GAAP $ (0.01) Non-GAAP $ 0.03 Shares used in per share calculation: GAAP 113,392 Non-GAAP 113,493 (1) Includes impairment charges of $0.4 million for right-of-use assets, $0.3 million for leasehold improvements, and $0.9 million related to the fair value of other unrecoverable facility costs. Six Months Ended July 3, 2026 Revenue Gross Profit Total Operating Expense Income from Operations Total Non- operating Expense, net Net Income GAAP $ 255,157 $ 133,503 $ 89,423 $ 44,080 $ (2,782) $ 26,699 Stock-based compensation — 1,073 (11,775) 12,848 — 12,848 Lease-related asset impairment and other charges (2) — — (428) 428 — 428 Discrete tax items and tax effect of non- GAAP adjustments — — — — — 1,673 Total adjustments — 1,073 (12,203) 13,276 — 14,949 Non-GAAP $ 255,157 $ 134,576 $ 77,220 $ 57,356 $ (2,782) $ 41,648 As a % of revenue (GAAP) 52.3 % 35.0 % 17.3 % (1.1) % 10.5 % As a % of revenue (Non-GAAP) 52.7 % 30.3 % 22.5 % (1.1) % 16.3 % Diluted net income per share: GAAP $ 0.24 Non-GAAP $ 0.38 Shares used in per share calculation: GAAP and Non-GAAP 110,176 (2) Includes impairment charges of $0.1 million for right-of-use assets and $0.3 million related to the fair value of other unrecoverable facility costs. Six Months Ended June 27, 2025 Revenue Gross Profit Total Operating Expense Income from Operations Total Non- operating Expense, net Net Income GAAP $ 171,796 $ 86,266 $ 79,984 $ 6,282 $ (4,214) $ 1,512 Stock-based compensation — 618 (10,054) 10,672 — 10,672 Restructuring and related charges — — (428) 428 — 428 Asset impairment and related charges (1) — — (1,637) 1,637 — 1,637 Discrete tax items and tax effect of non- GAAP adjustments — — — — — (2,552) Total adjustments — 618 (12,119) 12,737 — 10,185 Non-GAAP $ 171,796 $ 86,884 $ 67,865 $ 19,019 $ (4,214) $ 11,697 As a % of revenue (GAAP) 50.2 % 46.6 % 3.7 % (2.5) % 0.9 % As a % of revenue (Non-GAAP) 50.6 % 39.5 % 11.1 % (2.5) % 6.8 % Diluted net income per share: GAAP $ 0.01 Non-GAAP $ 0.10 Shares used in per share calculation: GAAP and Non-GAAP 115,256 (1) Includes impairment charges of $0.4 million for right-of-use assets, $0.3 million for leasehold improvements, and $0.9 million related to the fair value of other unrecoverable facility costs. Three Months Ended Three Months Ended July 3, 2026 June 27, 2025 Continuing Operations Discontinued Operations Total Company Continuing Operations Discontinued Operations Total Company Net income (loss) - GAAP $ 17,051 $ (19,375) $ (2,324) $ (857) $ 3,728 $ 2,871 Stock-based compensation 7,284 4,373 11,657 5,655 2,042 7,697 Restructuring and related charges — — — 428 222 650 Asset impairment and related charges 428 — 428 1,637 — 1,637 Loss on held for sale and disposal of discontinued operations — 6,251 6,251 — — — Non-recurring advisory fees — 3,359 3,359 — 78 78 Divestiture related employee compensation costs — 1,765 1,765 Discrete tax items and tax effect of Non- GAAP adjustments (1,908) 6,790 4,882 (3,163) 530 (2,633) Total adjustments 5,804 22,538 28,342 4,557 2,872 7,429 Net income - Non-GAAP $ 22,855 $ 3,163 $ 26,018 $ 3,700 $ 6,600 $ 10,300 As a % of revenue (GAAP) 12.8 % (49.1) % (1.3) % (1.0) % 7.3 % 2.1 % As a % of revenue (Non-GAAP) 17.1 % 8.0 % 15.0 % 4.3 % 12.9 % 7.5 % Diluted net income (loss) per share: GAAP $ 0.16 $ (0.18) $ (0.02) $ (0.01) $ 0.04 $ 0.03 Non-GAAP $ 0.21 $ 0.03 $ 0.24 $ 0.03 $ 0.06 $ 0.09 Shares used in per share calculation: GAAP 109,682 109,682 109,682 113,392 113,392 113,392 Non-GAAP 109,682 109,682 109,682 113,493 113,493 113,493 Six Months Ended Six Months Ended July 3, 2026 June 27, 2025 Continuing Operations Discontinued Operations Total Company Continuing Operations Discontinued Operations Total Company Net income (loss) - GAAP $ 26,699 $ (21,714) $ 4,985 $ 1,512 $ 7,299 $ 8,811 Stock-based compensation 12,848 8,619 21,467 10,672 5,490 16,162 Restructuring and related charges — — — 428 222 650 Non-recurring advisory fees — 7,343 7,343 — 78 78 Asset impairment and related charges 428 — 428 1,637 — 1,637 Divestiture related employee compensation costs — 1,765 1,765 — — — Loss on held for sale and disposal of discontinued operations — 6,251 6,251 — — — Discrete tax items and tax effect of Non- GAAP adjustments 1,673 4,993 6,666 (2,552) (1,099) (3,651) Total adjustments 14,949 28,971 43,920 10,185 4,691 14,876 Net income - Non-GAAP $ 41,648 $ 7,257 $ 48,905 $ 11,697 $ 11,990 $ 23,687 As a % of revenue (GAAP) 10.5 % (24.2) % 1.4 % 0.9 % 7.3 % 3.2 % As a % of revenue (Non-GAAP) 16.3 % 8.1 % 14.2 % 6.8 % 12.1 % 8.7 % Diluted net income (loss) per share: GAAP $ 0.24 $ (0.19) $ 0.05 $ 0.01 $ 0.07 $ 0.08 Non-GAAP $ 0.38 $ 0.06 $ 0.44 $ 0.10 $ 0.11 $ 0.21 Shares used in per share calculation: GAAP and Non-GAAP 110,176 110,176 110,176 115,256 115,256 115,256 Harmonic Inc. GAAP to Non-GAAP Reconciliations on Financial Guidance for Continuing Operations (Unaudited) (1) (In millions, except percentages and per share data) Q3 2026 Financial Guidance Revenue Gross Profit Total Operating Expense Operating Profit Net Income GAAP $ 125 to $ 135 $ 64 to $ 70 $ 47 to $ 48 $ 17 to $ 22 $ 11 to $ 15 Stock-based compensation — — (6) 6 6 Total adjustments — — (6) 6 6 to 6 Non-GAAP $ 125 to $ 135 $ 64 to $ 70 $ 41 to $ 42 $ 23 to $ 28 $ 17 to $ 21 As a % of revenue (GAAP) 51.0 % to 52.0 % 37.6 % to 35.6 % 13.6 % to 16.3 % 8.8 % to 11.1 % As a % of revenue (Non- GAAP) 51.0 % to 52.0 % 32.8 % to 31.1 % 18.4 % to 20.7 % 13.6 % to 15.6 % Diluted net income per share: GAAP $ 0.10 to $ 0.14 Non-GAAP $ 0.15 to $ 0.19 Shares used in per share calculation: GAAP and Non-GAAP 110.4 FY 2026 Financial Guidance Revenue Gross Profit Total Operating Expense Operating Profit Net Income GAAP $ 505 to $ 525 $ 257 to $ 272 $ 183 to $ 186 $ 74 to $ 86 $ 49 to $ 58 Stock-based compensation — 1 (24) 25 25 Tax effect of Non-GAAP adjustments — — — — (1) to — Total adjustments — 1 (24) 25 24 to 25 Non-GAAP $ 505 to $ 525 $ 258 to $ 273 $ 159 to $ 162 $ 99 to $ 111 $ 73 to $ 83 As a % of revenue (GAAP) 50.9 % to 51.8 % 36.2 % to 35.4 % 14.7 % to 16.4 % 9.7 % to 11.0 % As a % of revenue (Non- GAAP) 51.0 % to 52.0 % 31.5 % to 30.9 % 19.6 % to 21.1 % 14.5 % to 15.8 % Diluted net income per share: GAAP $ 0.44 to $ 0.53 Non-GAAP $ 0.67 to $ 0.75 Shares used in per share calculation: GAAP and non-GAAP 110.4 ____________________________________ (1) Components may not sum to total due to rounding. View original content to download multimedia: https://www.prnewswire.com/news-releases/harmonic-announces-second-quarter-2026-results-302849112.html SOURCE Harmonic Inc.