Vecima Reports Q2 Fiscal 2026 Results

About this update from Vecima Networks Inc.

Revenue of $73.7M; Gross Margin 44.9%; Adjusted EBITDA of $10.6M VICTORIA, British Columbia, February 12, 2026 --( BUSINESS WIRE )--Vecima Networks Inc. (TSX: VCM) today reported financial results for the three and six months ended December 31, 2025. FINANCIAL HIGHLIGHTS "This was a rewarding second quarter that delivered significant customer progress and improved operating performance across our business," said Sumit Kumar, Vecima's President and Chief Executive Officer. "Consolidated second quarter sales of $73.7 million were up 3.5% compared to Q2 fiscal 2025 and 3.7% sequentially from Q1 fiscal 2026, reflecting solid performance in our VBS segment and significantly higher results in our CDS segment. Year-over-year profitability also rose sharply, with gross margin increasing 850 basis points to 44.9%, driven by a higher-margin product mix and increased operating efficiency with adjusted EBITDA climbing $10.9 million to 14.4% of sales. Our strategy, close collaboration with customers, and patient approach to deployment timing not only drove this strong second quarter performance, but have also laid the groundwork for significant new growth." "Based on customer developments and market dynamics, we believe deployments of our next-generation technology are approaching a major growth inflection. With a lead North American Tier 1 BSP (Broadband Service Provider) customer on the verge of ramping up its large-scale rollout of our next-generation DAA technologies, another North American Tier 1 customer preparing for a broad upgrade to our new TerraceIQ commercial video platform, demand expected to remain strong for our high-margin, market-leading Entra Optical line of fiber-access solutions, and new products continuing to roll out, our visibility and confidence in forward growth has sharpened as we enter calendar 2026." "Based on customer indications, we now expect next-twelve-month revenue to increase in the range of 20% to 30%, compared to calendar 2025, driven by Vecima's portfolio strength, major customer design wins, and essential DAA-based gigabit upgrades globally. The anticipated demand profile also positions adjusted EBITDA margins to break through 20% for the same period, driving adjusted EBITDA growth of 70% to 85% compared to calendar 2025." "While recent industry consolidation activity, as previously discussed, could still constrain deliveries in the third quarter of fiscal 2026, the impact is now expected to be modest and further mitigated by a favorable product mix in the quarter. Demand is expected to ramp up sharply beginning in the fourth quarter." "The anticipated growth and profitability expansion build on our recent achievements," added Mr. Kumar. "In our VBS segment, our solid second quarter revenue performance was paired with significantly improved gross margins. The segment's topline continued to benefit from strong uptake of our EN9000, the industry's only Generic Access Platform (GAP) Node, while improved bottom-line performance reflected ongoing strength in our Entra Optical platforms for fiber-to-the-home, as well as our roll out of new DAA products, including our EN3400 compact GAP node and innovative new Entra Power Holdover Modules driving a more favorable product mix. Highlights of the quarter included continued excellent progress with our new vCMTS solutions as we move closer to deployments with our lead customer and continue to significantly increase vCMTS program engagements with customers worldwide." "In our CDS segment, a significant increase in managed IPTV network expansions and early rollout of our new Dynamic Ad Insertion (DAI) solutions contributed to a 20.7% year-over-year improvement in segment sales paired with a very strong 65.1% gross margin. And as always, our Telematics segment was a consistent, highly profitable contributor to our Q2 results." "As we move forward, Vecima is performing strongly and sharply focused on responding to the demand growth our customers are forecasting. While our next-generation Entra DAA cable-access products, Entra Optical fiber-access products and TerraceIQ Commercial Video solutions are expected to be at the forefront of near-term growth, we see additional multi-year opportunities for vCMTS, and in our CDS segment, IPTV and DAI. Our strategy of building the industry's broadest and deepest portfolio of innovative, interoperable next-generation fiber and cable access products and IPTV solutions, paired with our growing focus on software-centric products and platforms that will prepare customers for the 50G future, has positioned Vecima for upcoming sustained growth and strong profitability," concluded Mr. Kumar. Financial and Corporate Video and Broadband Solutions (VBS) DAA (Entra Family) Commercial Video (Terrace Family) Content Delivery and Storage (CDS) Telematics Trade and Tariffs CONFERENCE CALL A conference call and live audio webcast will be held today, Thursday, February 12, 2026 at 1 p.m. ET to discuss the Company’s second quarter results. Vecima’s unaudited interim consolidated financial statements and management’s discussion and analysis for the three and six months ended December 31, 2025 are available under the Company’s profile at www.sedarplus.ca , and at https://vecima.com/investor-relations/financial-reports/ . To participate in the Q2FY26 teleconference, dial 1-833-752-3965 or 1-647-849-3105. The webcast will be available in real time at https://event.choruscall.com/mediaframe/webcast.html?webcastid=SBviZJrm and will be archived on the Vecima website at https://vecima.com/investor-relations/earnings-call-archive/ . About Vecima Networks Vecima Networks Inc. (TSX: VCM) is leading the global evolution to the multi-gigabit, content-rich networks of the future. Our talented people deliver future-ready software, services, and integrated platforms that power broadband and video streaming networks, monitor and manage transportation, and transform experiences in homes, businesses, and everywhere people connect. We help our customers evolve their networks with cloud-based solutions that deliver ground-breaking speed, superior video quality, and exciting new services to their subscribers. There is power in connectivity – it enables people, businesses, and communities to grow and thrive. Learn more at www.vecima.com . Adjusted EBITDA and Adjusted Earnings (Loss) Per Share Adjusted EBITDA and Adjusted Earnings (Loss) Per Share do not have a standardized meaning under IFRS and therefore may not be comparable to similar measures provided by other issuers. Accordingly, investors are cautioned that Adjusted EBITDA or Adjusted Earnings Per Share should not be construed as an alternative to net income, determined in accordance with IFRS, as an indicator of the Company’s financial performance or as a measure of its liquidity and cash flows. For a reconciliation of Adjusted EBITDA or Adjusted Earnings (Loss) Per Share, investors should refer to Vecima’s Management’s Discussion and Analysis for the second quarter of fiscal 2026. Forward-Looking Statements This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes", "may", "plans", "will", "anticipates", "intends", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release includes the following statements: Our strategy, close collaboration with customers, and patient approach to deployment timing not only drove this strong second quarter performance, but have also laid the groundwork for significant new growth; based on customer developments and market dynamics, we believe deployments of our next-generation technology are approaching a major growth inflection; with a lead North American Tier 1 BSP (Broadband Service Provider) customer on the verge of ramping up its large-scale rollout of our next-generation DAA technologies, another North American Tier 1 customer preparing for a broad upgrade to our new TerraceIQ commercial video platform, demand expected to remain strong for our high-margin, market-leading Entra Optical line of fiber-access solutions, demand expected to remain strong or our high-margin, market-leading EntraOptical line of fiber-access solutions, and new products continuing to roll out, our visibility and confidence in forward growth has sharpened as we enter calendar 2026; we now expect next-twelve-month revenue to increase in the range of 20 to 30%, compared to calendar 2025; additionally, based on customer indications, we now expect next-twelve-month revenue to increase in the range of 20% to 30%, compared to calendar 2025, driven by Vecima's portfolio strength, major customer design wins, and essential DAA-based gigabit upgrades globally; the anticipated demand profile also positions adjusted EBITDA margins to break through 20% for the same period, driving adjusted EBITDA growth of 70% to 85% compared to calendar 2025; while recent industry consolidation activity, as previously discussed, could still constrain deliveries in the third quarter of fiscal 2026, the impact is now expected to be modest and further mitigated by a favorable product mix in the quarter; demand is expected to ramp up sharply beginning in the fourth quarter; the anticipated growth and profitability expansion build on our recent achievements; as we move forward, Vecima is performing strongly and sharply focused on responding to the demand growth our customers are forecasting; while our next-generation Entra DAA cable-access products, Entra Optical fiber-access products and TerraceIQ Commercial Video solutions are expected to be at the forefront of near-term growth, we see additional multi-year opportunities for vCMTS, and in our CDS segment, IPTV and DAI; our strategy of building the industry's broadest and deepest portfolio of innovative, interoperable next-generation fiber and cable access products and IPTV solutions, paired with our growing focus on software-centric products and platforms that will prepare customers for the 50G future, has positioned Vecima for upcoming sustained growth and strong profitability; Dell'Oro Group forecasts the global market for vCMTS will be worth approximately $350 million annually by calendar 2029; TerraceIQ Commercial Video solution continued to gain traction with key customers in the Americas, setting the stage for significant anticipated growth in the next twelve months; the Tier 1 customer expects to carry out a significant evolution of its commercial video footprint nationally, encompassing both the upgrade of Terrace QAM platforms deployed within thousands of commercial properties today, along with rollouts for new commercial video services contracts going forward; renegotiation of the USMCA could, in an unlikely case, result in the introduction of new tariffs affecting Vecima's products. A more complete discussion of the risks and uncertainties facing Vecima is disclosed under the heading "Risk Factors" in the Company’s Annual Information Form dated September 25, 2025, as well as the Company’s continuous disclosure filings with Canadian securities regulatory authorities available at www.sedarplus.ca . All forward-looking information herein is qualified in its entirety by this cautionary statement, and Vecima disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260212188388/en/ Contacts Vecima Networks Investor Relations - 250-881-1982 [email protected]

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