Harmonic

HLIT · Nasdaq · Information Technology · Financials, fiscal 2016 to 2025

HLIT · Last close · November 6, 2026

$9.51

Harmonic's revenue fell 26.1% to $360 million in fiscal 2025. Its operating margin was 3.9%, down from 15.3% a year earlier. Free cash flow was $97 million, up 83.7%. It paid out $79 million in dividends and buybacks, 82% of free cash flow. The diluted share count fell 2.8%.

HARMONIC INC. Latest fiscal year ended December 31, 2025 10-K filed February 24, 2026 · 0001193125-26-067506 Updated November 7, 2026

Revenue

$360M

26.1%

Operating margin

3.9%

11.4 pts

Net income

−$43M

$39M a year earlier

Free cash flow

$97M

83.7%

Return on capital

1.6%

11.0 pts

Market cap

$1.0B

Nov 6 close

P/E

—

Loss: no P/E

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. Harmonic's filings from 2026 restate earlier revenue (2023 went from US$607.9 million to US$388.5 million and 2024 from US$678.7 million to US$488.2 million), while the quarters of those years stay as first reported. Quarters and years are therefore on different bases: fourth-quarter revenue for 2023 and 2025 is left blank, and the 2024 fourth quarter (US$31.6 million) is the restated year minus the three quarters first reported, so it is not a reliable figure.

Charts show fiscal years, from the 10-K filings.

What Harmonic does

Harmonic sells equipment and software that cable and telephone companies use to deliver high-speed internet to homes. Its main product, cOS, is software that runs on standard servers instead of custom hardware. It also sells support and a subscription service that bundles technical help with a customer success team.

Harmonic reports its continuing business as Broadband. About 89% of its revenue came from the Americas in 2025. It sells through its own sales staff, resellers and systems integrators, and contract manufacturers build its products. Its customers are cable and telecom operators such as Comcast, Charter, Vodafone and Tele2. A few of them matter a great deal: one customer made up 54% of net revenue in 2025.

In December 2025 Harmonic agreed to sell its Video business to MediaKind, so the report treats Video as discontinued. Harmonic had 534 full-time employees at the end of 2025, many of them in Israel.

Its biggest risks, as it describes them

Losing a key customer, since a few operators account for most of its revenue.
Falling spending by cable and telecom operators, its main customers.
Not getting the intended benefits from the planned sale of its Video business.
Relying on sole or limited suppliers and contract manufacturers for key parts.
Having employees in Israel and outsourced engineers in Ukraine during regional conflicts.

From Harmonic's annual report on Form 10-K, filed February 24, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2021 to 2024, earnings per share grew 40.1% a year and net income 43.4% a year, as new shares raised the share count by 11% and diluted each share's earnings. Harmonic then lost money in fiscal 2025.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	133	90	84	102	124
Debt incl. finance leases	18	16	5	119	112
Net debt (negative means net cash)	−115	−74	−79	18	−12
Net debt to EBITDA	−3.6x	−1.3x	−1.9x	0.2x	−0.5x
Debt to equity	0.1x	0.1x	0.0x	0.3x	0.3x
Interest coverage	1.8x	9.0x	11.1x	11.6x	3.7x
Current ratio	1.4x	1.1x	1.2x	2.9x	2.5x
Quick ratio	1.1x	0.7x	0.9x	2.7x	2.3x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project Harmonic's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open Harmonic's projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, 1 insider bought $499,044 of Harmonic shares on the open market, and 2 insiders sold $791,443.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
May 14, 2026	Stephanie CopelandDirector	Sold	4,300	$13.31	$57,233	Form 4
May 13, 2026	Neven HaltmayerSVP & Gm, Video Business	Sold	31,766	$13.24	$420,582	Form 4
Dec 15, 2025	Neven HaltmayerSVP & Gm, Video Business	Sold	23,835	$10.41	$248,217	Form 4
Dec 12, 2025	Neven HaltmayerSVP & Gm, Video Business	Sold	6,165	$10.61	$65,411	Form 4
Dec 11, 2025	David KrallDirector	Bought	47,528	$10.50	$499,044	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	5 of 9	6 of 9	4 of 9
Rule of 40	−38.2%	36.5%	0.7%
Altman Z''	−6.18	−2.82	−5.38
Accruals ratio	10.4%	−2.9%	−20.0%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Fail
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Fail	Fail
Cash from operations exceeds net income	Fail	Pass	Pass
Debt fell relative to assets	Pass	Fail	Pass
Current ratio rose	Pass	Pass	Fail
Share count didn't rise	Fail	Fail	Pass
Gross margin rose	Fail	Pass	Fail
Revenue rose relative to assets	Fail	Pass	Fail
F-score	5 of 9	6 of 9	4 of 9

Companies that report no gross profit are scored on the other eight.

Compare

Put Harmonic side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Harmonic	FY25	−26.1%	3.9%	26.9%	1.6%	−0.5x	4
Digi International	FY25	1.5%	13.1%	24.5%	6.3%	1.5x	6	Compare
Aviat Networks	FY26	1.2%	4.4%	1.4%	3.3%	1.1x	5	Compare
Powerfleet	FY26	22.4%	4.4%	2.0%	2.2%	3.1x	—	Compare
Arlo Technologies	FY25	3.6%	1.1%	—	—	—	—	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	406	358	404	403	379	507	625	388	488	360
Revenue growth	7.7%	−11.7%	12.7%	−0.2%	−6.0%	33.9%	23.2%	−37.8%	25.7%	−26.1%
Gross profit	201	170	209	223	195	260	316	178	240	175
Research and development	98	96	89	85	82	102	120	70	73	76
Operating income	−67	−71	−5	13	−12	19	46	30	75	14
Net income	−72	−83	−21	−6	−29	13	28	84	39	−43
Diluted EPS (US$)	−0.93	−1.02	−0.25	−0.07	−0.30	0.12	0.25	0.72	0.33	−0.38
Diluted shares (millions)	78	81	86	90	97	106	112	117	118	114
Cash flow
Cash from operations	0	3	12	31	39	41	6	7	62	108
Capital expenditure	15	11	7	10	32	13	9	8	9	11
Free cash flow	−15	−8	5	21	7	28	−4	−1	53	97
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	0	0	0	0	0	0	5	0	30	79
Acquisitions	74	0	0	0	0	0	0	0	0	0
Stock-based compensation	13	17	17	12	18	24	25	27	28	32
Balance sheet at fiscal year end
Cash and short-term investments	56	57	66	93	99	133	90	84	102	124
Debt incl. finance leases	19	22	20	17	22	18	16	5	119	112
Total assets	554	508	511	587	592	694	710	768	796	718
Total liabilities	283	290	283	332	333	397	386	331	331	335
Shareholders' equity	271	230	228	252	258	296	324	437	465	383
Margins and ratios
Gross margin	49.5%	47.4%	51.8%	55.4%	51.5%	51.2%	50.5%	45.9%	49.2%	48.5%
Operating margin	−16.5%	−19.8%	−1.2%	3.2%	−3.3%	3.7%	7.3%	7.7%	15.3%	3.9%
Net margin	−17.8%	−23.2%	−5.2%	−1.5%	−7.7%	2.6%	4.5%	21.6%	8.0%	−12.0%
Free cash flow margin	−3.6%	−2.3%	1.3%	5.2%	1.8%	5.5%	−0.6%	−0.4%	10.8%	26.9%
Rule of 40 (growth + FCF margin)	4.0%	−14.1%	13.9%	5.0%	−4.1%	39.4%	22.6%	−38.2%	36.5%	0.7%
Return on capital	−24.3%	−26.1%	−2.1%	5.8%	−5.5%	10.4%	13.4%	9.9%	12.6%	1.6%
Return on equity	−24.1%	−33.1%	−9.2%	−2.5%	−11.5%	4.8%	9.1%	22.1%	8.7%	−10.2%
Return on assets	−13.4%	−15.6%	−4.1%	−1.1%	−5.0%	2.1%	4.0%	11.4%	5.0%	−5.7%
Net debt to EBITDA	—	—	−2.8x	−2.3x	−23.6x	−3.6x	−1.3x	−1.9x	0.2x	−0.5x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Harmonic's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Harmonic.