Here are 1-3 brief analogies to describe Harmonic (HLIT):

• Harmonic is like AWS for video streaming and traditional TV delivery.
• Harmonic is like VMware for cable TV networks.

• Video Processing Appliances: Hardware and software solutions designed for video processing, production, and playout services.
• Streaming SaaS Solutions: Software-as-a-service platforms enabling the packaging, delivery, and monetization of live and on-demand streaming video services.
• CableOS Software-Based Cable Access Solutions: A virtualized, software-defined cable access solution for broadband delivery to cable operators.
• CableOS Central Cloud Services: Cloud-native services that complement CableOS solutions, offering centralized management and operational insights for cable access networks.
• Professional and Technical Services: A range of services including maintenance, support, consulting, implementation, and training for their video and cable access products.

Harmonic Inc. (HLIT) primarily sells its products and services to other companies, not directly to individuals. The background information describes the following major categories of customers:

• Cable Operators: These companies utilize Harmonic's video processing, production, playout solutions, and CableOS software-based cable access solutions.
• Satellite and Telecommunications Pay-TV Service Providers: These providers leverage Harmonic's video processing, production, and playout solutions and services.
• Broadcast and Media Companies (including streaming media companies): This category of customers uses Harmonic's video processing, production, and playout solutions, as well as its SaaS solutions for packaging and delivery of streaming services.

The provided background information does not specify the names of individual customer companies within these categories.

Nimrod Ben-Natan, President & Chief Executive Officer

Nimrod Ben-Natan has been a pivotal figure in Harmonic's evolution, joining the company in 1996 as a software engineer where he helped design and develop its first-generation video transmission platform. Throughout his career at Harmonic, he has held various strategic positions, including General Manager of the cOS™ virtualized broadband business and Senior Vice President of the Broadband business. As CEO, he drives the company's CableOS™ virtualized cable access business.

Walter Jankovic, Chief Financial Officer

Walter Jankovic leads Harmonic's financial strategy, overseeing finance, operational excellence, and business transformation. He brings over 30 years of executive experience from a range of publicly-listed technology companies. Prior to joining Harmonic, he served as senior vice president and general manager of the datacom business unit at Lumentum, and as president of optical connectivity at Oclaro, Inc., which was acquired by Lumentum. His career also includes senior finance and leadership roles during his 13-year tenure at Celestica Inc., and finance leadership positions at Nortel Networks and as an engagement manager at Deloitte.

Timothy Chu, General Counsel, SVP Human Resources & Corporate Secretary

Timothy Chu serves as Harmonic's General Counsel, Senior Vice President of Human Resources, and Corporate Secretary.

Jeffrey Glahn, SVP Global Sales

Jeffrey Glahn is responsible for the strategic direction of Harmonic's global broadband sales business. With 20 years of experience in the broadband and telecommunications industries, his background includes product development and management roles at companies such as Comcast, Motorola, Google, and TE Connectivity. Before joining Harmonic, he led sales at Xperi/TiVo.

Neven Haltmayer, Senior Vice President and General Manager, Video Business

Neven Haltmayer holds the position of Senior Vice President and General Manager for Harmonic's Video Business.

1. Customer Concentration Risk: Harmonic Inc. faces significant customer concentration, particularly with its broadband solutions segment. In 2024 and 2023, Comcast accounted for 44% of the company's net revenue, and 39% in 2022. More broadly, the top 10 customers represented 84% of net revenue in 2025, with one customer alone accounting for 54%. The loss of any major customer, or a material reduction in orders from them, especially Comcast, could severely impact Harmonic's operating results, financial condition, and cash flows. This risk is amplified by the divestiture of the Video segment, as the remaining Broadband business will have an even greater reliance on a concentrated customer base.
2. Increased Reliance on Broadband Segment and Divestiture of Video Business: Harmonic is in the process of divesting its Video segment, which historically contributed approximately 37% of its 2025 revenue, to focus primarily on its Broadband business. While this move aims to sharpen the company's strategic focus, it means that future revenue and results will depend almost entirely on the performance of the Broadband segment. This creates a sector concentration risk and increases the pressure on Harmonic to continuously innovate and develop new products within the broadband market, without the financial cushion previously provided by the Video segment. There is also inherent uncertainty surrounding the successful closure of the divestiture transaction.
3. Geopolitical Tensions and Supply Chain Disruptions: Harmonic is exposed to operational risks arising from global geopolitical tensions and potential supply chain disruptions. Specifically, macroeconomic headwinds and geopolitical issues, including conflicts in the Middle East, the Russia-Ukraine war, and tensions between China, Taiwan, and the United States, can impact Harmonic's international operations, particularly those in China and Taiwan. These factors can lead to supply chain interruptions, affecting the company's ability to manufacture and deliver its products and solutions.

Harmonic (HLIT) is expected to drive future revenue growth over the next 2-3 years through several key initiatives, primarily stemming from its strategic transformation into a pure-play broadband leader.

1. DOCSIS 4.0 Adoption and Deployment: The acceleration of Unified DOCSIS 4.0 deployments is a significant growth driver. Harmonic has achieved successful field validation and is ramping up initial node shipments, which is anticipated to fuel strong broadband revenue growth throughout 2026.
2. Expansion of Fiber Business: The company is focused on scaling its fiber business, including securing multiyear fiber expansion deals. Harmonic highlights the convergence of fiber and DOCSIS within its cloud-native architecture as a key differentiator.
3. Customer Diversification and International Growth: Harmonic is experiencing significant growth in its "rest-of-world" revenue, with a 33% year-over-year increase, and is expanding platform relationships through major new deployments, particularly in Europe and with operators like Telia in Norway. This geographical and customer base expansion is expected to contribute to future revenue.
4. Growth in SaaS and Intelligence-Driven Solutions: Harmonic anticipates an increase in recurring revenue from its Software-as-a-Service (SaaS) solutions and other intelligence-driven tools within its broadband offerings. This focus on software-centric solutions enhances recurring revenue streams.

Share Repurchases

• In February 2025, Harmonic authorized a new stock repurchase program allowing for the repurchase of up to $200 million of its common stock through February 2028.
• This new program superseded a prior authorization of $100 million for share repurchases through February 2025, which was announced in February 2022.
• As of December 2025, approximately $101 million had been repurchased under the expanded $200 million buyback program.

Share Issuance

• In June 2025, shareholders approved the 2025 Equity Incentive Plan, reserving 6,799,081 shares for issuance, with 6,775,531 shares remaining available for future grants as of June 27, 2025.
• An amendment to the 2002 Employee Stock Purchase Plan (ESPP) was also approved in June 2025, increasing the number of shares reserved for issuance by 500,000.

Outbound Investments

• Harmonic announced a binding offer from MediaKind to acquire its Video Business segment for approximately $145 million in cash, with the transaction expected to close in the first half of 2026.
• In May 2022, Harmonic sold its investment in Encoding.com, Inc. for total consideration of up to approximately $10.7 million.

Capital Expenditures

• Capital expenditures incurred but not yet paid were approximately $1.075 million in 2023, $751k in 2022, and $1.155 million in 2021.
• The company's asset-light business model, emphasizing cloud-native software solutions, helps control capital expenditure by focusing on intellectual property and software development rather than physical infrastructure.