Harmonic Inc. (HLIT) SEC Filings & Earnings Calls

Customer Concentration

“During the three months ended July 3, 2026, two of our customers accounted for approximately 45% and 18%, respectively, of our net revenue” · word for word

Tariff Cost Pressure

“During the fiscal year 2025, we experienced a moderate increase in tariff-related costs due to U.S. tariff policies.” · word for word

Supply Chain Disruption

“We purchase several key components, subassemblies and modules used in the manufacture or integration of our products from sole or limited sources” · word for word

Geopolitical Risk (Israel)

“As of July 3, 2026, we maintained facilities in Israel with a total of 195 employees, or approximately 36% of our worldwide workforce.” · word for word

Post-Sale Execution Risk

“If we are unsuccessful in executing our business plan and necessary transition activities following the sale of our Video business, our business and results of operations may be adversely affected” · word for word

Stranded costs from Video divestiture (~$2.3M/quarter) will continue through FY2026, impacting profitability.

“Includes approximately $2.3 million of stranded costs associated with the Video divestiture for Q2 2026.” · word for word

Customer concentration risk: large tier-1 accounts still significant, though Rest-of-Market diversification progressing.

“ongoing expansion across all tier-1 accounts and new customer wins... Rest-of-Market bookings represented approximately 60% of total Q2 bookings” · word for word

Loss of Video Business revenue stream; non-compete clause limits future re-entry.

“Company agreed not to compete with the Business for three years.”

Transaction closing risk remains if conditions not met.

“subject to satisfaction of the remaining customary closing conditions” · word for word

Customer concentration risk

“Sales to our top 10 customers in the three months ended April 3, 2026 accounted for approximately 88% of our net revenue.” · word for word

Tariff cost exposure

“During the fiscal year 2025, we experienced a moderate increase in tariff-related costs due to U.S. tariff policies.” · word for word

Geopolitical operational risk (Israel/Ukraine)

“As of April 3, 2026, we maintained facilities in Israel with a total of 198 employees, or approximately 38% of our worldwide workforce.” · word for word

Debt covenant compliance risk

“Our Credit Agreement contains covenants that limit our ability and the ability of our subsidiaries to... incur debt.” · word for word

Tariff impacts on gross margin; estimated $2.3M for FY2026.

“Includes approximately $0.6 million and $2.3 million of estimated tariff impacts for Q2 and FY 2026, respectively.” · word for word

Video divestiture execution risk; closing conditions not yet satisfied.

“The Disposition is expected to close in the second quarter of 2026. Conditions include regulatory approvals.” · word for word

Loss of board member with audit and compensation committee experience.

“Mr. Whalen has served as a member of the Board since 2024, after previously serving from 2021 to 2023, and also served as a member of the Audit Committee and Compensation Committee.” · word for word

Transaction subject to regulatory approvals; non-compete for 3 years

“Conditions include regulatory approvals; termination rights if not closed by Sep 8, 2026”

Discontinued operations loss of $55M in Q4 2025 due to Video business impairment.

“Income (loss) from discontinued operations, net of tax $(55,034)” · word for word

Customer concentration risk

“During the fiscal year ended December 31, 2025, one customer accounted for 54% of our net revenue.” · word for word

Video business sale execution risk

“We may not achieve the intended benefits of the sale of our Video business.” · word for word

Geopolitical exposure (Israel/Ukraine)

“We face risks associated with having employees and operations in Israel and outsourced engineering resources located in Ukraine.” · word for word

Tariff impacts on gross margin estimated at $4M for FY2026.

“Includes approximately $1.0 million and $4.0 million of estimated tariff impacts for Q1 and FY 2026, respectively.” · word for word

Stranded costs from Video divestiture continue to impact profitability.

“Includes approximately $2.0 million and $10.0 million of stranded costs associated with Video divestiture for Q1 and FY 2026, respectively.” · word for word

Transaction subject to regulatory approvals and works council consultation; may not close.

“subject to a French employee works council consultation process and customary closing conditions and regulatory approvals.” · word for word

Customer concentration (Comcast 43% of revenue)

“During the three and nine months ended September 26, 2025, Comcast accounted for approximately 43% and 39%, respectively, of our net revenue.” · word for word

Tariff cost pressure

“During the second quarter of fiscal year 2025, we experienced a moderate increase in tariff-related costs due to U.S. tariff policies, primarily in our Broadband business.” · word for word

Geopolitical risk (Israel and Ukraine operations)

“We face risks associated with having facilities and employees located in Israel. We outsource a portion of our research and development and product support activities to our third-party partner, GlobalLogic, a Hitachi group company. Through GlobalLogic, we have a significant number of engineering resources located in Kyiv, Ukraine.” · word for word

Technology transition risk (cOS long sales cycles)

“The sales cycle for our cOS solutions tends to be long.” · word for word

Revenue declined significantly YoY due to Broadband segment slowdown.

“Revenue: $142.4 million, compared to $195.8 million in the prior year period.” · word for word

Backlog and deferred revenue decreased YoY.

“Backlog and deferred revenue as of quarter end $494.5 million vs $584.7 million in Q3 2024.” · word for word