Exhibit 99.1
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FOR IMMEDIATE RELEASE
Harmonic Announces Second Quarter 2025 Results
Surpassed top end of revenue and profitability guidance for both Broadband and Video
SAN JOSE, California, July 28, 2025 - Harmonic Inc. (NASDAQ: HLIT) today announced its unaudited results for the second quarter of 2025.
“Our team delivered strong second quarter results with revenue and profitability in both our Video and Broadband businesses exceeding the high end of our guidance,” said Nimrod Ben-Natan, president and chief executive officer of Harmonic. “We are seeing further momentum in Video and while we expect Broadband upgrade activity to persist at a moderate pace in 2025, we are beginning to see positive indicators, with improving customer ramp readiness and progress on Unified DOCSIS 4.0, which we expect will turn into tailwinds for us in 2026.”
Q2 Financial and Business Highlights
Financial
•Revenue: $138.0 million, compared to $138.7 million in the prior year period
◦Broadband segment revenue: $86.9 million, compared to $92.9 million in the prior year period
◦Video segment revenue: $51.1 million, compared to $45.8 million in the prior year period
•Gross margin: GAAP 53.5% and Non-GAAP 54.1%, both higher compared to GAAP 52.9% and Non-GAAP 53.1% in the prior year period
◦Broadband segment Non-GAAP gross margin: 46.5% compared to 47.6% in the prior year period
◦Video segment Non-GAAP gross margin: 67.0% compared to 64.4% in the prior year period
•Operating income (loss): GAAP income $3.9 million and Non-GAAP income $13.9 million, compared to GAAP loss $15.6 million and Non-GAAP income $12.2 million in the prior year period
•Net income (loss): GAAP net income $2.9 million and Non-GAAP net income of $10.3 million, compared to GAAP net loss $12.5 million and Non-GAAP net income $9.3 million in the prior year period
•Non-GAAP adjusted EBITDA: $17.0 million compared to $16.1 million in the prior year period
•Net income (loss) per share: GAAP net income per share of $0.03 and Non-GAAP net income per share of $0.09, compared to GAAP net loss per share of $0.11 and Non-GAAP net income per share of $0.08 in the prior year period
•Backlog and deferred revenue of $504.5 million
•Cash: $123.9 million, compared to $45.9 million in the prior year period
•Repurchased approximately 1.6 million shares of common stock for an aggregate amount of $14.0 million
Business
•Commercially deployed our cOSTM solution with 136 customers, serving 35.3 million cable modems
•Won four new broadband customers including two fiber customers
•Announced the introduction of SeaStarTM Optical Node, which redefines broadband connectivity for low density multiple dwelling units
•Recently announced a record-breaking DOCSIS 4.0 demonstration of 14 Gbps downstream across a multi-vendor network at the CableLabs® Interop event
•Record Video SaaS revenue of $15.4 million in Q2 reflects continued growth, especially in sports streaming
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Select Financial Information
GAAPNon-GAAP
Key Financial ResultsQ2 2025Q1 2025Q2 2024Q2 2025Q1 2025Q2 2024
(Unaudited, in millions, except per share data)
Net revenue$138.0 $133.1 $138.7 ***
Net income (loss)$2.9 $5.9 $(12.5)$10.3 $13.4 $9.3 
Net income (loss) per share$0.03 $0.05 $(0.11)$0.09 $0.11 $0.08 
Other Financial InformationQ2 2025Q1 2025Q2 2024
(Unaudited, in millions)
Adjusted EBITDA for the quarter (1)
$17.0 $21.1 $16.1 
Bookings for the quarter$158.4 $113.7 $72.4 
Backlog and deferred revenue as of quarter end$504.5 $485.1 $613.1 
Cash and cash equivalents as of quarter end$123.9 $148.7 $45.9 
(1) Adjusted EBITDA is a Non-GAAP financial measure. Refer to "Preliminary Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation" below for a reconciliation to net income (loss), the most comparable GAAP measure.
* Not applicable
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.”
Financial Guidance
 Q3 2025 GAAP Financial Guidance
(Unaudited, in millions, except percentages and per share data)LowHigh
BroadbandVideoTotal GAAPBroadbandVideoTotal GAAP
Net revenue$75 $45 $120 $85 $50 $135 
Gross margin % 52.5 %53.8 %
Gross profit (1)
$63 $73 
Tax rate43 %43 %
Net income (loss)$(4)$— 
Net income (loss) per share$(0.04)$— 
Shares (2)
113.9 114.7 
(1) Includes estimated tariff impacts of approximately $1 million
(2) Diluted shares assumes stock price at $9.13 (Q2 2025 average price).
Q3 2025 Non-GAAP Financial Guidance (1)
(Unaudited, in millions, except percentages and per share data)LowHigh
BroadbandVideoTotal BroadbandVideoTotal
Gross margin %45.0 %65.0 %52.5 %46.0 %67.0 %53.8 %
Gross profit (2)
$34 $29 $63 $39 $34 $73 
Adjusted EBITDA(3)
$5 $2 $7 $9 $5 $14 
Tax rate21 %21 %
Net income per share$0.02 $0.07 
Shares (4)
114.7114.7
(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 estimated tariff impacts of approximately $1 million
(3) Refer to “Net Income (Loss) to Consolidated Adjusted EBITDA Reconciliation on Financial Guidance” below for a reconciliation to net income (loss), the most comparable GAAP measure.
(4) Diluted shares assumes stock price at $9.13 (Q2 2025 average price).
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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 Monday, July 28, 2025. 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/BIb056948f450247ab97d84d9326ae54f8. 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 and video delivery solutions, enables media companies and service providers to deliver ultra-high-quality video streaming and broadcast services to consumers globally. The company revolutionized broadband networking via the industry’s first virtualized broadband solution, enabling operators to more flexibly deploy gigabit internet service to consumers’ homes and mobile devices. Whether simplifying OTT video delivery via innovative cloud and software platforms, or powering the delivery of gigabit internet services, Harmonic is changing the way media companies and service providers monetize live and on-demand content on every screen. 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 statements related to anticipated customer purchases and deployments of our Unified DOCSIS 4.0 solutions and our expectations regarding: net revenue, gross margins, operating expenses, operating income (loss), Adjusted EBITDA, 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, 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, satellite telco, broadcast and media 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 and Video businesses 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 cOSTM and VOS product solutions; dependence on various broadband and video 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. 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, 2024, 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.
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The Company believes that the presentation of Non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides 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), Adjusted EBITDA (including those amounts as a percentage of revenue) 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.
Restructuring and related charges - Harmonic from time to time incurs restructuring charges which primarily consist of employee severance, one-time termination benefits related to the reduction of its workforce, and other costs. These charges are associated with material business shifts. We exclude these items because we do not believe they are reflective of our ongoing long-term business and operating results.
Non-cash interest expense related to convertible notes - We record the amortization of issuance costs as non-cash interest expense. We believe that excluding these costs provides meaningful supplemental information regarding operational performance and liquidity, along with enhancing investors’ ability to view the Company’s results from management’s perspective. In addition, we believe excluding these costs from the Non-GAAP measures facilitates comparisons to our historical operating results and comparisons to peer company operating results.
Depreciation - Depreciation expense is excluded from Adjusted EBITDA as this is a non-cash item unrelated to the ordinary course of our business and not reflective of our underlying business performance.
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.
Asset impairment and related charges - We exclude asset impairment and related charges due to the nature of such expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of impairments of fixed assets, right-of-use assets and related leasehold improvements, and other unrecoverable facility costs due to the intended change in use of certain leased space.
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.
CONTACTS:
Walter JankovicDavid Hanover
Chief Financial OfficerInvestor Relations
Harmonic Inc.Harmonic Inc.
+1.408.490.6152+1.212.896.1220
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Harmonic Inc.
Preliminary Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except par value)
 June 27, 2025December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents$123,918 $101,457 
Restricted cash356 332 
Accounts receivable, net of allowances for credit losses of $1,771 and $2,528 as of June 27, 2025 and December 31, 2024, respectively120,665 178,013 
Inventories71,138 64,004 
Prepaid expenses and other current assets26,780 22,270 
Total current assets342,857 366,076 
Property and equipment, net28,027 26,823 
Operating lease right-of-use assets11,817 12,411 
Goodwill241,718 236,876 
Deferred income taxes, net121,364 121,028 
Other non-current assets37,564 33,292 
Total assets$783,347 $796,506 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt2,694 2,194 
Current portion of other borrowings5,561 4,941 
Accounts payable40,666 35,250 
Deferred revenue51,188 47,069 
Operating lease liabilities5,794 5,675 
Other current liabilities66,306 72,440 
Total current liabilities172,209 167,569 
Long-term debt110,611 112,084 
Other borrowings12,141 8,694 
Operating lease liabilities, non-current14,156 14,727 
Other non-current liabilities27,828 28,174 
Total liabilities336,945 331,248 
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; 113,389 and 116,735 shares issued and outstanding at June 27, 2025 and December 31, 2024, respectively
113 117 
Additional paid-in capital2,448,446 2,432,733 
Accumulated deficit(1,995,193)(1,953,495)
Accumulated other comprehensive loss(6,964)(14,097)
Total stockholders’ equity446,402 465,258 
Total liabilities and stockholders’ equity$783,347 $796,506 

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Harmonic Inc.
Preliminary Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
 Three Months EndedSix Months Ended
 June 27, 2025June 28, 2024June 27, 2025June 28, 2024
Revenue:
Appliance and integration$94,067 $94,184 $185,608 $175,779 
SaaS and service43,960 44,556 85,554 85,021 
Total net revenue138,027 138,740 271,162 260,800 
Cost of revenue:
Appliance and integration50,578 50,878 92,242 93,952 
SaaS and service13,656 14,405 26,553 30,310 
Total cost of revenue64,234 65,283 118,795 124,262 
Total gross profit73,793 73,457 152,367 136,538 
Operating expenses:
Research and development29,442 28,784 60,791 59,489 
Selling, general and administrative38,194 39,821 75,292 78,686 
Asset impairment and related charges1,637 9,000 1,637 9,000 
Restructuring and related charges650 11,482 650 14,519 
Total operating expenses69,923 89,087 138,370 161,694 
Income (loss) from operations3,870 (15,630)13,997 (25,156)
Interest expense, net(1,253)(1,424)(2,727)(2,147)
Other income, net359 619 187 330 
Income (loss) before income taxes2,976 (16,435)11,457 (26,973)
Provision for (benefit from) income taxes105 (3,903)2,646 (6,352)
Net income (loss)$2,871 $(12,532)$8,811 $(20,621)
Net income (loss) per share:
Basic$0.03 $(0.11)$0.08 $(0.18)
Diluted$0.03 $(0.11)$0.08 $(0.18)
Weighted average shares outstanding:
Basic113,392 115,030 114,855 113,705 
Diluted113,493 115,030 115,256 113,705 

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Harmonic Inc.
Preliminary Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
 Six Months Ended
 June 27, 2025June 28, 2024
Cash flows from operating activities:
Net income (loss)$8,811 $(20,621)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation5,392 6,311 
Asset impairment and related charges1,637 9,000 
Stock-based compensation16,162 13,877 
Foreign currency remeasurement596 2,469 
Deferred income taxes, net(2,718)(8,897)
Provision for excess and obsolete inventories1,988 2,152 
Other adjustments(9)354 
Changes in operating assets and liabilities:
Accounts receivable, net58,067 20,765 
Inventories(6,607)(3,929)
Prepaid expenses and other assets(492)(6,761)
Accounts payable3,030 (8,680)
Deferred revenues2,202 6,179 
Other liabilities(16,151)(7,553)
Net cash provided by operating activities71,908 4,666 
Cash flows from investing activities:
Purchases of property and equipment(5,672)(3,856)
Net cash used in investing activities(5,672)(3,856)
Cash flows from financing activities:
Proceeds from long-term debt40,000 115,000 
Repayment of convertible debt— (115,500)
Repayment of long-term debt and other borrowings(42,466)(1,334)
Payments for debt issuance costs— (332)
Repurchase of common stock(50,102)(30,047)
Proceeds from other borrowings3,835 — 
Proceeds from common stock issued to employees3,056 3,542 
Taxes paid related to net share settlement of equity awards(3,206)(6,252)
Net cash used in financing activities(48,883)(34,923)
Effect of exchange rate changes on cash and cash equivalents and restricted cash5,132 (1,391)
Net increase (decrease) in cash and cash equivalents and restricted cash22,485 (35,504)
Cash and cash equivalents and restricted cash at beginning of period101,789 84,269 
Cash and cash equivalents and restricted cash at end of period$124,274 $48,765 
Cash and cash equivalents and restricted cash at end of period
Cash and cash equivalents$123,918 $45,850 
Restricted cash356 2,827 
Restricted cash included in other non-current assets— 88 
Total cash, cash equivalents and restricted cash as shown in the condensed consolidated statement of cash flows$124,274 $48,765 
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Harmonic Inc.
Preliminary Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Six Months Ended
June 27, 2025June 28, 2024
Supplemental cash flow disclosure:
Income tax payments, net$13,764 $11,407 
Interest payments, net$2,715 $1,895 
Supplemental schedule of non-cash investing activities:
Capital expenditures incurred but not yet paid$1,141 $282 
Supplemental schedule of non-cash financing activities:
Shares of common stock issued upon redemption of the 2024 Notes— 4,578 


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Harmonic Inc.
Preliminary GAAP Revenue Information
(Unaudited, in thousands, except percentages)
Three Months Ended
June 27, 2025March 28, 2025June 28, 2024
Geography
Americas$108,205 79 %$101,681 76 %$109,597 79 %
EMEA19,888 14 %23,172 18 %22,680 16 %
APAC9,934 7 %8,282 6 %6,463 5 %
Total$138,027 100 %$133,135 100 %$138,740 100 %
Market
Service Provider$94,851 69 %$94,202 71 %$104,429 75 %
Broadcast and Media43,176 31 %38,933 29 %34,311 25 %
Total$138,027 100 %$133,135 100 %$138,740 100 %
Six Months Ended
June 27, 2025June 28, 2024
Geography
Americas$209,886 77 %$202,628 78 %
EMEA43,060 16 %46,240 18 %
APAC18,216 7 %11,932 4 %
Total$271,162 100 %$260,800 100 %
Market
Service Provider$189,053 70 %$191,122 73 %
Broadcast and Media82,109 30 %69,678 27 %
Total$271,162 100 %$260,800 100 %

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Harmonic Inc.
Preliminary Segment Information
(Unaudited, in thousands, except percentages)
Three Months Ended June 27, 2025
BroadbandVideoTotal Segment Measures
Adjustments (1)
Consolidated GAAP Measures
Net revenue$86,918 $51,109 $138,027 $— $138,027 
Gross profit40,412 
(1)
34,249 
(1)
74,661 
(1)
(868)73,793 
Gross margin %46.5 %
(1)
67.0 %
(1)
54.1 %
(1)
53.5 %
Three Months Ended March 28, 2025
BroadbandVideoTotal Segment Measures
Adjustments (1)
Consolidated GAAP Measures
Net revenue$84,878 $48,257 $133,135 $— $133,135 
Gross profit47,080 
(1)
32,055 
(1)
79,135 
(1)
(561)78,574 
Gross margin %55.5 %
(1)
66.4 %
(1)
59.4 %
(1)
59.0 %
Three Months Ended June 28, 2024
BroadbandVideoTotal Segment Measures
Adjustments (1)
Consolidated GAAP Measures
Net revenue$92,937 $45,803 $138,740 $— $138,740 
Gross profit44,236 
(1)
29,494 
(1)
73,730 
(1)
(273)73,457 
Gross margin %47.6 %
(1)
64.4 %
(1)
53.1 %
(1)
52.9 %
Six Months Ended June 27, 2025
BroadbandVideoTotal Segment Measures
Adjustments (1)
Consolidated GAAP Measures
Net revenue$171,796 $99,366 $271,162 $— $271,162 
Gross profit87,492 
(1)
66,304 
(1)
153,796 
(1)
(1,429)152,367 
Gross margin %50.9 %
(1)
66.7 %
(1)
56.7 %
(1)
56.2 %
Six Months Ended June 28, 2024
BroadbandVideoTotal Segment Measures
Adjustments (1)
Consolidated GAAP Measures
Net revenue$171,834 $88,966 $260,800 $— $260,800 
Gross profit81,730 
(1)
56,063 
(1)
137,793 
(1)
(1,255)136,538 
Gross margin %47.6 %
(1)
63.0 %
(1)
52.8 %
(1)
52.4 %
(1) Segment gross margin and segment gross profit are Non-GAAP financial measures. Refer to “Use of Non-GAAP Financial Measures” above and “GAAP to Non-GAAP Reconciliations" below.
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Harmonic Inc.
GAAP to Non-GAAP Reconciliations (Unaudited)
(in thousands, except percentages and per share data)
Three Months Ended June 27, 2025
RevenueGross ProfitTotal Operating ExpenseIncome from OperationsTotal Non-operating Expense, netNet Income
GAAP$138,027 $73,793 $69,923 $3,870 $(894)$2,871 
Stock-based compensation— 868 (6,829)7,697 — 7,697 
Restructuring and related charges— — (650)650 — 650 
Non-recurring advisory fees— — (78)78 — 78 
Lease-related asset impairment and other charges (1)
— — (1,637)1,637 — 1,637 
Discrete tax items and tax effect of Non-GAAP adjustments— — — — — (2,633)
Total adjustments— 868 (9,194)10,062 — 7,429 
Non-GAAP $138,027 $74,661 $60,729 $13,932 $(894)$10,300 
As a % of revenue (GAAP)53.5 %50.7 %2.8 %(0.6)%2.1 %
As a % of revenue (Non-GAAP)54.1 %44.0 %10.1 %(0.6)%7.5 %
Diluted net income per share:
GAAP$0.03 
Non-GAAP$0.09 
Shares used in per share calculation:
GAAP and Non-GAAP113,493 
(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.
Three Months Ended March 28, 2025
RevenueGross ProfitTotal Operating ExpenseIncome from OperationsTotal Non-operating Expense, netNet Income
GAAP$133,135 $78,574 $68,447 $10,127 $(1,646)$5,940 
Stock-based compensation— 561 (7,904)8,465 — 8,465 
Discrete tax items and tax effect of Non-GAAP adjustments— — — — — (1,018)
Total adjustments— 561 (7,904)8,465 — 7,447 
Non-GAAP $133,135 $79,135 $60,543 $18,592 $(1,646)$13,387 
As a % of revenue (GAAP)59.0 %51.4 %7.6 %(1.2)%4.5 %
As a % of revenue (Non-GAAP)59.4 %45.5 %14.0 %(1.2)%10.1 %
Diluted net income per share:
GAAP$0.05 
Non-GAAP$0.11 
Shares used in per share calculation:
GAAP and Non-GAAP117,021 

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Three Months Ended June 28, 2024
RevenueGross ProfitTotal Operating ExpenseIncome (Loss) from OperationsTotal Non-operating Expense, netNet Income (Loss)
GAAP$138,740 $73,457 $89,087 $(15,630)$(805)$(12,532)
Stock-based compensation— 273 (6,681)6,954 — 6,954 
Restructuring and related charges— — (11,482)11,482 — 11,482 
Non-recurring advisory fees— — (406)406 — 406 
Lease-related asset impairment and other charges (1)
— — (9,000)9,000 — 9,000 
Non-cash interest expense related to convertible notes— — — — 338 338 
Discrete tax items and tax effect of Non-GAAP adjustments— — — — — (6,369)
Total adjustments— 273 (27,569)27,842 338 21,811 
Non-GAAP $138,740 $73,730 $61,518 $12,212 $(467)$9,279 
As a % of revenue (GAAP)52.9 %64.2 %(11.3)%(0.6)%(9.0)%
As a % of revenue (Non-GAAP)53.1 %44.3 %8.8 %(0.3)%6.7 %
Diluted net income (loss) per share:
GAAP$(0.11)
Non-GAAP$0.08 
Shares used in per share calculation:
GAAP115,030 
Non-GAAP116,690 
(1) Includes impairment charges of $2.9 million for right-of-use assets, $4.2 million for leasehold improvements, and $1.9 million related to the fair value of other
unrecoverable facility costs.
Six Months Ended June 27, 2025
RevenueGross ProfitTotal Operating ExpenseIncome from OperationsTotal Non-operating Expense, netNet Income
GAAP$271,162 $152,367 $138,370 $13,997 $(2,540)$8,811 
Stock-based compensation— 1,429 (14,733)16,162 — 16,162 
Restructuring and related charges— — (650)650 — 650 
Non-recurring advisory fees— — (78)78 — 78 
Lease-related asset impairment and other charges (1)
— — (1,637)1,637 — 1,637 
Discrete tax items and tax effect of non-GAAP adjustments— — — — — (3,651)
Total adjustments— 1,429 (17,098)18,527 — 14,876 
Non-GAAP $271,162 $153,796 $121,272 $32,524 $(2,540)$23,687 
As a % of revenue (GAAP)56.2 %51.0 %5.2 %(0.9)%3.2 %
As a % of revenue (Non-GAAP)56.7 %44.7 %12.0 %(0.9)%8.7 %
Diluted net income per share:
GAAP$0.08 
Non-GAAP$0.21 
Shares used in per share calculation:
GAAP and Non-GAAP115,256 
(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.
12

Six Months Ended June 28, 2024
RevenueGross ProfitTotal Operating ExpenseIncome (Loss) from OperationsTotal Non-operating Expense, netNet Income (Loss)
GAAP$260,800 $136,538 $161,694 $(25,156)$(1,817)$(20,621)
Stock-based compensation— 795 (13,082)13,877 — 13,877 
Restructuring and related charges— 460 (14,519)14,979 11 14,990 
Non-recurring advisory fees— — (755)755 — 755 
Lease-related asset impairment and other charges (1)
— — (9,000)9,000 — 9,000 
Non-cash interest expense related to convertible notes— — — — 567 567 
Discrete tax items and tax effect of non-GAAP adjustments— — — — — (8,907)
Total adjustments— 1,255 (37,356)38,611 578 30,282 
Non-GAAP $260,800 $137,793 $124,338 $13,455 $(1,239)$9,661 
As a % of revenue (GAAP)52.4 %62.0 %(9.6)%(0.7)%(7.9)%
As a % of revenue (Non-GAAP)52.8 %47.7 %5.2 %(0.5)%3.7 %
Diluted net income per share:
GAAP$(0.18)
Non-GAAP$0.08 
Shares used in per share calculation:
GAAP and Non-GAAP113,705 
Non-GAAP117,419 
(1) Includes impairment charges of $2.9 million for right-of-use assets, $4.2 million for leasehold improvements, and $1.9 million related to the fair value of other unrecoverable facility costs.
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Harmonic Inc.
Calculation of Adjusted EBITDA by Segment (Unaudited)
(In thousands, except percentages)
Three Months Ended June 27, 2025
BroadbandVideo
Income from operations$8,585 $5,347 
Depreciation1,929 743 
Other non-operating income, net255 104 
Adjusted EBITDA(1)
$10,769 $6,194 
Revenue$86,918 $51,109 
Adjusted EBITDA margin % (1)
12.4 %12.1 %
Three Months Ended March 28, 2025
BroadbandVideo
Income from operations$14,021 $4,571 
Depreciation1,964 756 
Other non-operating expense, net(124)(48)
Adjusted EBITDA(1)
$15,861 $5,279 
Revenue$84,878 $48,257 
Adjusted EBITDA margin % (1)
18.7 %10.9 %
Three Months Ended June 28, 2024
BroadbandVideo
Income (loss) from operations$13,781 $(1,569)
Depreciation2,133 1,093 
Other non-operating income, net406 213 
Adjusted EBITDA(1)
$16,320 $(263)
Revenue$92,937 $45,803 
Adjusted EBITDA margin % (1)
17.6 %(0.6)%
Six Months Ended June 27, 2025
BroadbandVideo
Income from operations (1)
$22,606 $9,918 
Depreciation3,893 1,499 
Other non-operating income, net131 56 
Adjusted EBITDA(1)
$26,630 $11,473 
Revenue$171,796 $99,366 
Adjusted EBITDA margin % (1)
15.5 %11.5 %
Six Months Ended June 28, 2024
BroadbandVideo
Income (loss) from operations (1)
$22,375 $(8,920)
Depreciation4,119 2,192 
Other non-operating income, net227 114 
Adjusted EBITDA(1)
$26,721 $(6,614)
Revenue$171,834 $88,966 
Adjusted EBITDA margin % (1)
15.6 %(7.4)%
(1) Adjusted EBITDA and Adjusted EBITDA margin are Non-GAAP financial measures. Refer below for the "Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation."
14

Harmonic Inc.
Preliminary Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation (Unaudited)
(In thousands, except percentages)
Three Months Ended
June 27, 2025March 28, 2025June 28, 2024
Net income (loss) (GAAP)$2,871 $5,940 $(12,532)
Provision for (benefit from) income taxes105 2,541 (3,903)
Interest expense, net1,253 1,474 1,424 
Depreciation2,672 2,720 3,226 
EBITDA6,901 12,675 (11,785)
Adjustments
Stock-based compensation7,697 8,465 6,954 
Restructuring and related charges650 — 11,482 
Non-recurring advisory fees78 — 406 
Lease-related asset impairment and other charges1,637 — 9,000 
Total consolidated segment adjusted EBITDA (Non-GAAP)$16,963 $21,140 $16,057 
Revenue$138,027 $133,135 $138,740 
Net income (loss) margin (GAAP)2.1 %4.5 %(9.0)%
Consolidated segment Adjusted EBITDA margin (Non-GAAP)12.3 %15.9 %11.6 %
Six Months Ended
June 27, 2025June 28, 2024
Net income (loss) (GAAP)$8,811 $(20,621)
Provision for (benefit from) income taxes2,646 (6,352)
Interest expense, net2,727 2,147 
Depreciation5,392 6,311 
EBITDA19,576 (18,515)
Adjustments
Stock-based compensation16,162 13,877 
Restructuring and related charges650 14,990 
Non-recurring advisory fees78 755 
Lease-related asset impairment and other charges1,637 9,000 
Total consolidated segment adjusted EBITDA (Non-GAAP)$38,103 $20,107 
Revenue$271,162 $260,800 
Net income (loss) margin (GAAP)3.2 %(7.9)%
Consolidated segment Adjusted EBITDA margin (Non-GAAP)14.1 %7.7 %

15

Harmonic Inc.
GAAP to Non-GAAP Reconciliations on Financial Guidance (Unaudited)
(In millions, except percentages and per share data)
Q3 2025 Financial Guidance (1)
RevenueGross ProfitTotal Operating ExpenseIncome from OperationsNet Income (Loss)
GAAP$120 to$135 $63 to$73 $68 to$70 $(5)to$3 $(4)to$— 
Stock-based compensation expense——(8)88
Restructuring and related charges——(1)11
Tax effect of Non-GAAP adjustments————(3)to(1)
Total adjustments——(9)96 to8 
Non-GAAP$120 to$135 $63 to$73 $59 to$61 $4 to$11 $2 to$8 
As a % of revenue (GAAP)52.5 %to53.8 %56.7 %to51.9 %(4.2)%to2.2 %(3.3)%to— %
As a % of revenue (Non-GAAP)52.5 %to53.8 %49.2 %to45.2 %3.3 %to8.1 %1.7 %to5.9 %
Diluted net income (loss) per share:
GAAP$(0.04)to$— 
Non-GAAP$0.02 to$0.07 
Shares used in per share calculation:
GAAP113.9 to114.7 
Non-GAAP114.7
(1) Components may not sum to total due to rounding.

Harmonic Inc.
Calculation of Adjusted EBITDA by Segment on Financial Guidance (Unaudited) (1)
(In millions)
Q3 2025 Financial Guidance
BroadbandVideo
Income from operations$3 to$7 $1 to$4 
Depreciation2 2 1 1 
Segment adjusted EBITDA(2)
$5 to$9 $2 to$5 
(1) Components may not sum to total due to rounding.
(2) Segment Adjusted EBITDA is a Non-GAAP financial measure. Refer below for the "Net Income (Loss) to Consolidated Segment Adjusted EBITDA reconciliation on Financial Guidance."

16

Harmonic Inc.
Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation on Financial Guidance (Unaudited) (1)
(In millions)
Q3 2025 Financial Guidance
Net income (loss) (GAAP)$(4)to$— 
Provision for (benefit from) income taxes(2)1 
Interest expense, net1 1 
Depreciation3 3 
EBITDA(2)to5 
Adjustments
Stock-based compensation8 8 
Restructuring and related charges1 1 
Total consolidated segment adjusted EBITDA (Non-GAAP)$7 to$14 
(1) Components may not sum to total due to rounding.
17