Harmonic (HLIT) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: N/A
• Average Volume (3M): 709.70K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 1.37
• Revenue Growth: 1.93%
• EPS Growth: -43.22%
• Country: US
• Employees: 901
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.12
• Shares Outstanding: 113,759,520
• 10 Day Avg. Volume: 633,403
• 30 Day Avg. Volume: 709,696
• PEG Ratio: -0.71
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 2.24
• P/FCF Ratio: 28.88
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 3.12
• Enterprise Value/Ebitda: 11.76
• 1Y Price Target: $14.00
• Price Target Upside: 32.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $11.50 ▲(9.00% Upside)

Harmonic's strong earnings call performance and strategic corporate event significantly boost its stock score. Solid financial performance and technical indicators support the score, though valuation concerns and reliance on a single large customer pose risks.

Positive Factors

Strategic Focus

The sale allows Harmonic to concentrate on its core Broadband business, enhancing financial flexibility and supporting growth initiatives.

Cash Generation

Strong cash generation indicates efficient operations, providing resources for investment and strategic initiatives, supporting long-term stability.

Partnership Expansion

This partnership strengthens Harmonic's position in next-gen broadband, enhancing market reach and supporting sustained growth through innovation.

Negative Factors

Revenue Growth Decline

Declining revenue growth could indicate market saturation or competitive pressures, potentially impacting long-term earnings potential.

Customer Concentration

High reliance on a single customer poses risks to revenue stability and bargaining power, affecting long-term business resilience.

DOCSIS 4.0 Transition Challenges

Transition challenges could delay revenue realization and strain resources, impacting growth prospects and operational efficiency.

Harmonic Business Overview & Revenue Model

Company Description

Harmonic Inc. (HLIT) is a leading technology company specializing in video delivery and cable access solutions. The company operates primarily in the media and entertainment sector, providing a range of products and services that enable the delivery of high-quality video content over various networks. Harmonic's core offerings include video streaming solutions, broadcast and OTT (over-the-top) services, as well as software-defined cable access technologies that enhance the efficiency and performance of broadband networks.

How the Company Makes Money

Harmonic generates revenue through multiple channels, primarily by selling hardware and software solutions for video processing and delivery. Key revenue streams include licensing fees from its software solutions, sales of proprietary hardware for video encoding and streaming, and ongoing service and support contracts. Additionally, Harmonic benefits from strategic partnerships with major telecommunications and media companies, which provide a steady customer base for its products. The company also engages in subscription-based models for its cloud services, allowing for consistent revenue generation as clients pay for ongoing access to its technology. Overall, Harmonic's earnings are bolstered by its focus on innovation, enabling it to capture emerging market opportunities in the evolving landscape of media consumption.

Harmonic Financial Statement Overview

Summary

Harmonic demonstrates solid financial health with strong profitability and cash flow metrics. Despite a decline in revenue growth, the company maintains efficient operations and a stable balance sheet.

Income Statement

Harmonic's income statement shows a strong gross profit margin of 55.4% TTM, indicating efficient cost management. However, the revenue growth rate has declined by 7.7% TTM, which is a concern. The net profit margin improved to 9.96% TTM, showing better profitability compared to previous years. EBIT and EBITDA margins have also improved, reflecting enhanced operational efficiency.

Balance Sheet

The balance sheet reveals a stable financial structure with a debt-to-equity ratio of 0.30 TTM, indicating manageable leverage. Return on equity stands at 11.02% TTM, showing decent profitability for shareholders. The equity ratio is strong, suggesting a solid asset base backed by equity.

Cash Flow

Cash flow analysis highlights a positive free cash flow growth rate of 12.95% TTM, indicating improved cash generation. The operating cash flow to net income ratio of 0.75 TTM suggests strong cash conversion. Free cash flow to net income ratio is high at 0.91 TTM, reflecting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	635.71M	678.72M	607.91M	624.96M	507.15M	378.83M
Gross Profit	354.15M	365.92M	312.55M	315.88M	259.74M	195.00M
EBITDA	93.89M	77.40M	34.09M	61.65M	32.55M	999.00K
Net Income	49.63M	39.22M	83.99M	28.18M	13.25M	-29.27M
Balance Sheet
Total Assets	758.60M	796.51M	768.21M	710.02M	693.69M	591.52M
Cash, Cash Equivalents and Short-Term Investments	127.38M	101.46M	84.27M	89.59M	133.43M	98.64M
Total Debt	146.56M	148.31M	156.05M	160.78M	190.21M	184.79M
Total Liabilities	315.58M	331.25M	331.33M	385.51M	396.89M	333.22M
Stockholders Equity	443.01M	465.26M	436.87M	324.51M	296.80M	258.30M
Cash Flow
Free Cash Flow	133.46M	52.73M	-1.42M	-3.77M	28.04M	6.96M
Operating Cash Flow	144.21M	61.92M	7.06M	5.48M	41.02M	39.16M
Investing Cash Flow	-10.75M	-9.19M	-8.47M	-1.29M	-12.97M	-32.20M
Financing Cash Flow	-67.92M	-33.27M	-4.99M	-43.13M	7.94M	-2.11M

Harmonic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLIT, the sentiment is Positive. The current price of 10.55 is above the 20-day moving average (MA) of 9.58, above the 50-day MA of 10.05, and above the 200-day MA of 9.58, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.70 is Neutral, neither overbought nor oversold. The STOCH value of 82.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLIT.

Harmonic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITRN	79 Outperform	$817.23M	14.46	28.62%	4.49%	5.20%	9.14%
DGII	77 Outperform	$1.68B	42.36	6.71%	―	1.46%	78.77%
HLIT	74 Outperform	$1.19B	24.62	11.38%	―	1.93%	-43.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COMM	60 Neutral	$4.25B	―	―	―	9.86%	99.11%
CLFD	53 Neutral	$397.74M	―	2.37%	―	-9.94%	30.96%
ADTN	50 Neutral	$683.39M	―	-48.44%	―	14.33%	83.32%

Harmonic Corporate Events

Harmonic Announces Sale of Video Business to MediaKind

On December 8, 2025, Harmonic Inc. announced a binding offer from MediaKind to acquire its Video Business for approximately $145 million in cash. This strategic transaction aims to sharpen Harmonic’s focus on its core Broadband business, providing financial flexibility and advancing growth initiatives. The acquisition is expected to close in the first half of 2026, subject to regulatory approvals and a French employee works council consultation process. The deal is anticipated to enhance MediaKind’s product solutions and innovation capabilities, positioning it as a leading independent streaming infrastructure company.