Accelerated Adoption of Unified DOCSIS 4.0 and Industry Milestones
Harmonic's Unified DOCSIS 4.0 solution is rapidly moving towards real-world deployment, with volume shipments of unified RPDs and early field trials of the RF front-end tray.
Demonstrated a 14 Gbps throughput milestone at CableLabs Interop, exceeding the 10 Gbps fiber-to-the-home speeds, reinforcing the technological leadership in broadband performance.
Mediacom has been announced as a customer for DOCSIS 4.0, with deployment strategies shared, indicating tangible progress and industry validation.
Progress on ecosystem readiness, including interop activities and partnerships, with ongoing testing in customer labs and field trials planned for Q4.
Adjusted EBITDA was $10.8 million for Broadband and $6.2 million for Video.
Backlog and deferred revenue totaled $504.5 million, with 51% expected to ship within 12 months.
Book-to-bill ratio improved to 1.1 in Q2 from 0.9 in Q1 and 0.5 in Q2 2024, driven by strong Broadband bookings.
Broadband revenue was $86.9 million with a gross margin of 46.5%, down 110 basis points year-over-year mainly due to tariff costs.
EPS rose from $0.08 to $0.09 year-over-year.
Free cash flow was negative $15.5 million, with a cash balance of $123.9 million at quarter end, up $78 million year-over-year net of $50 million stock repurchases.
Harmonic reported Q2 2025 revenue of $138 million, exceeding guidance in both Broadband and Video segments.
One customer, Comcast, represented 39% of total revenue.
Video revenue was $51.1 million, up 11.6% year-over-year, with a gross margin of 67%, up 260 basis points year-over-year.
LiveRamp's Data Collaboration Network and Sales Momentum
LiveRamp's data collaboration network is experiencing strong sales momentum, with above-average pipeline conversion, shorter sales cycles, and larger deal sizes in Q1.
The momentum is driven by solutions like Cross-Media Intelligence, Commerce Media Networks, and CTV, which are gaining traction among high-profile customers.
Cross-Media Intelligence, launched in Q1, is surpassing expectations by connecting ecosystem participants with privacy-preserving data sharing and interoperability across cloud environments.
Commerce Media Networks remain a key growth driver, with clients like Walgreens and a leading U.S. department store leveraging the technology for ad personalization and insights.
Partnerships with airlines, casinos, automotive, and real estate sectors are expanding, with a focus on establishing more industry-specific networks.
The momentum is validated by independent reports from Forrester and IDC, highlighting ROI and leadership in data clean room technology.
Wavelength Service Expansion and Market Share Goals
Cogent offers wavelength services in 938 data centers with 10G, 100G, and 400G models, aiming to capture 25% of the North American wavelength market.
The company has a backlog of 4,687 wavelength opportunities and has installed wavelengths in 418 locations.
Management emphasizes the quality of wavelength services, claiming 7x fewer outages than competitors, and expects to install 400-500 circuits per month by year-end.
The move away from bulk hardware sales is part of a broader effort to align revenue with customer buying cycles, which should benefit revenue predictability starting in 2026.
This transition has caused a temporary decline in hardware margins but is expected to improve overall margin profile as SaaS and recurring revenues grow.
The company booked over 24,000 new units in Q2, the highest in over a year, indicating early positive traction from the new sales approach.
Accelerated Fiber Deployment and 2030 Growth Targets
AT&T plans to accelerate fiber deployment to 4 million new locations annually by the end of 2026, supporting a target of approximately 50 million customer locations by 2030.
The company aims to reach over 60 million fiber locations including acquisitions and joint ventures, doubling its fiber reach from over 30 million locations.
This expansion is supported by pro-investment provisions in the One Big Beautiful Bill Act, which also facilitates spectrum pipeline development.
Dafinchi
