Broadband growth exceeded expectations: Second-quarter broadband revenue rose 54% year over year to $133.5 million, prompting Harmonic to raise its full-year outlook to $505 million–$525 million. The company completed the sale of its video business to MediaKind and is now focused solely on broadband. Bookings and backlog strengthened: Quarterly bookings reached $144 million, with approximately 60% from rest-of-market customers, while backlog and deferred revenue increased 71% to a record $587.6 million.
Growth is being supported by DOCSIS 4.0, fiber deployments and expanding adoption among smaller and regional operators. Profitability and cash investments remain key considerations: Second-quarter non-GAAP operating profit was $31.3 million and EPS was $0.21, but free cash flow was negative $7 million due mainly to higher memory inventory purchases. Harmonic also expects about $10 million in full-year stranded costs related to the video-business sale while continuing share repurchases and broadband investments.
Harmonic (NASDAQ:HLIT) reported second-quarter 2026 broadband revenue of $133.5 million, up 54% from a year earlier and above its prior guidance range of $115 million to $125 million, as deployment activity expanded among customers outside of its two largest accounts. The company also raised its full-year broadband revenue outlook to $505 million to $525 million, from a prior range of $475 million to $495 million. Harmonic completed the sale of its video business to MediaKind on June 16, leaving the company as a pure-play broadband provider with a single reportable segment. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Chief Executive Officer Nimrod Ben-Natan said the quarter reflected continued demand across the company's "rest of market" customer base, accelerating fiber deployments and early adoption of its network intelligence products.
Rest-of-market revenue, which Harmonic defines as revenue not derived from its two largest customers by subscriber count, increased 44% year over year to nearly $50 million and represented 37% of total quarterly revenue. For the first six months ended July 3, rest-of-market revenue exceeded $100 million, approximately 60% above the prior-year period. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Quarterly bookings reached $144 million, with rest-of-market customers contributing about 60% of bookings. Harmonic reported a total book-to-bill ratio of 1.1, while rest-of-market book-to-bill was above 1.5.
Backlog and deferred revenue rose 71% year over year to a record $587.6 million, with 73% expected to convert into revenue within the next 12 months. Chief Financial Officer Walter Jankovic said two customers each represented more than 10% of second-quarter revenue, and together accounted for 63% of total revenue. Still, he said the company's rest-of-market revenue base is becoming increasingly diversified across a wider set of customers. → Nebius' Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Ben-Natan said operators are using Harmonic's cOS platform to support multiple network architectures, including DOCSIS 3.1+, DOCSIS 4.0, centralized and distributed deployments, and fiber.
He said this flexibility allows operators to pursue higher upstream capacity through a range of approaches without having to settle on a single network topology in advance. During the question-and-answer session, Ben-Natan said demand from smaller and regional operators has advanced beyond laboratory trials and is now moving into ramping deployments. He said customers are adopting a mix of DOCSIS 4.0, extended DOCSIS 3.1 and fiber strategies, though they are at different stages of rollout.
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