Vecima Networks Inc. (TSE:VCM)
TSX:VCM
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Vecima Networks
(TSX:VCM)
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Rating:64Neutral
Price Target:
C$14.00
▲(6.38% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by a mixed financial base (TTM losses and margin pressure despite positive cash flow) balanced by a strong, guidance-led earnings-call outlook for accelerating growth and materially higher EBITDA margins. Technicals are constructive but overbought, while valuation is constrained by the negative P/E with only moderate support from the dividend yield.
Positive Factors
Guidance & Margin Target
Management's explicit guidance for 20%–30% revenue growth and adjusted EBITDA >20% implies a structural shift toward higher operating leverage. If realized, this sustains cash generation, accelerates deleveraging, and supports reinvestment in product development and customer deployments over the next several quarters.
Negative Factors
Profitability Volatility
The swing to a TTM net loss and sharply lower margins vs. prior years signals unstable profitability. Persistent margin pressure would limit internal funding for growth, weaken returns on equity, and make sustaining the targeted leverage reduction and dividend more challenging over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Guidance & Margin Target
Management's explicit guidance for 20%–30% revenue growth and adjusted EBITDA >20% implies a structural shift toward higher operating leverage. If realized, this sustains cash generation, accelerates deleveraging, and supports reinvestment in product development and customer deployments over the next several quarters.
Read all positive factors
Vecima Networks (VCM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$319.98M
Dividend Yield2.14%
Average Volume (3M)3.67K
Price to Earnings (P/E)565.4
Beta (1Y)0.30
Revenue Growth-11.70%
EPS Growth-199.55%
CountryCA
Employees590
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.04
Shares Outstanding24,314,594
10 Day Avg. Volume5,544
30 Day Avg. Volume3,670
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)1.05
Price to Sales (P/S)0.78
P/FCF Ratio4.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$18.50Price Target Upside40.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.34
Revenue Forecast (FY)C$303.50M
Vecima Networks Business Overview & Revenue Model
Company Description
Vecima Networks Inc. provides technology solutions that empower network service providers and content providers to connect people and enterprises to information and entertainment worldwide. It offers products for the cable and broadcast industries...
How the Company Makes Money
Vecima makes money primarily by selling communications network products and related software to service providers, typically through (1) product revenue from equipment and systems sales and (2) recurring and non-recurring revenue tied to software ...
Vecima Networks Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Positive
The call conveyed a clearly positive outlook driven by tangible product wins (Entra Remote PHY, TerraceIQ), improved Q2 profitability (strong gross margin expansion and adjusted EBITDA), expanding customer engagements, and downward progress on net debt. Short‑term risks include lumpy CDS shipments, modest Q3 timing effects from industry consolidation, elevated cash R&D and sales/marketing spend, and a notable drop in operating cash flow due to working capital swings. On balance the fundamental operational and margin improvements plus multiyear customer programs and forward guidance materially outweigh the short‑term cash and timing challenges.Positive Updates
Strong Forward Guidance — Major Growth Inflection
Management expects 20%–30% revenue growth over the next 12 months versus the prior 12 months and anticipates adjusted EBITDA margin to break through 20%, implying a 70%–85% increase in next 12‑month adjusted EBITDA versus calendar 2025.
Negative Updates
Operating Cash Flow Decline
Cash flow provided by operations fell to $6.8M in Q2 from $15.2M in the same period last year, primarily due to working capital swings and lumpy product shipments.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Forward Guidance — Major Growth Inflection
Management expects 20%–30% revenue growth over the next 12 months versus the prior 12 months and anticipates adjusted EBITDA margin to break through 20%, implying a 70%–85% increase in next 12‑month adjusted EBITDA versus calendar 2025.
Read all positive updates
Company Guidance
Vecima guided to strong near-term expansion, expecting next‑12‑month revenue growth of 20%–30% versus the prior 12 months, with adjusted EBITDA margin “breaking through” 20% (driving a 70%–85% increase in next‑12‑month adjusted EBITDA versus calendar 2025); management said demand should ramp sharply beginning in Q4 (with only modest Q3 timing lumpiness), did not yet bake vCMTS contribution into the outlook, and noted continued focus on deleveraging (net debt was $66.9M at Q2) while paying a quarterly dividend of $0.055 per share (record Feb 22, payable Mar 23).Vecima Networks Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
70
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 277.53M | 285.86M | 291.05M | 303.44M | 186.81M | 124.18M |
| Gross Profit | 106.47M | 109.42M | 136.66M | 141.97M | 89.96M | 56.64M |
| EBITDA | 21.42M | -851.00K | 49.81M | 55.89M | 29.05M | 10.77M |
| Net Income | -11.71M | -17.76M | 19.39M | 27.21M | 8.69M | -331.00K |
Balance Sheet | ||||||
| Total Assets | 330.17M | 332.07M | 387.82M | 331.69M | 262.61M | 214.73M |
| Cash, Cash Equivalents and Short-Term Investments | 3.12M | 3.44M | 2.14M | 2.28M | 12.90M | 28.91M |
| Total Debt | 73.41M | 62.20M | 69.56M | 36.90M | 16.90M | 5.72M |
| Total Liabilities | 118.01M | 118.50M | 152.86M | 114.03M | 82.88M | 39.81M |
| Stockholders Equity | 212.15M | 213.57M | 234.96M | 217.65M | 179.73M | 174.92M |
Cash Flow | ||||||
| Free Cash Flow | 10.02M | 51.95M | -27.34M | -37.36M | -19.94M | 1.44M |
| Operating Cash Flow | 28.51M | 54.63M | 2.71M | -11.01M | 3.33M | 20.05M |
| Investing Cash Flow | -35.60M | -37.87M | -26.19M | -26.35M | -23.27M | -5.00M |
| Financing Cash Flow | 9.18M | -14.68M | 23.62M | 26.84M | 4.99M | -4.61M |
Vecima Networks Technical Analysis
Positive
13.16
Price Trends
11.70
Positive
10.79
Positive
10.40
Positive
Market Momentum
0.39
Positive
74.56
Negative
47.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VCM, the sentiment is Positive. The current price of 13.16 is above the 20-day moving average (MA) of 12.87, above the 50-day MA of 11.70, and above the 200-day MA of 10.40, indicating a bullish trend. The MACD of 0.39 indicates Positive momentum. The RSI at 74.56 is Negative, neither overbought nor oversold. The STOCH value of 47.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:VCM.
Vecima Networks Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | C$1.22B | 14.79 | 24.24% | 5.97% | 2.96% | 11.50% | |
64 Neutral | C$319.98M | 565.37 | -5.37% | 2.14% | -11.70% | -199.55% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
47 Neutral | C$40.14M | -88.13 | -4.10% | 1.52% | -46.11% | -149.26% | |
| ― | C$19.86M | 0.77 | ― | ― | 37.33% | -7.55% | |
47 Neutral | C$4.78M | -7.04 | ― | ― | 0.73% | ― | |
40 Underperform | C$10.28M | -12.41 | ― | ― | ― | -716.67% |
* Technology Sector Average
TSE:VCM
Vecima Networks
13.16
4.35
49.31%
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Vecima Networks Corporate Events
Business Operations and StrategyProduct-Related Announcements
Vecima Expands Spectrum Partnership With DOCSIS 4.0 and 50G-PON Deal
Positive
Mar 19, 2026
Vecima Networks has signed a strategic multi-year agreement with Spectrum to support the U.S. cable operator’s transition to next-generation DOCSIS/HFC and fiber access networks. Under the deal, Spectrum will deploy Vecima’s Entra ERM4...
Business Operations and StrategyFinancial Disclosures
Vecima Lifts Margins and Eyes Strong Growth on Next-Gen Broadband Rollouts
Positive
Feb 12, 2026
Vecima Networks reported second-quarter fiscal 2026 revenue of $73.7 million, up 3.5% year over year, with gross margin strengthening to 44.9% and adjusted EBITDA rising to $10.6 million as a higher-margin product mix and operational efficiencies ...
Business Operations and StrategyDividends
Vecima Networks Declares Quarterly Dividend in Line With Ongoing Policy
Positive
Feb 10, 2026
Vecima Networks Inc. has declared a quarterly dividend of $0.055 per common share, payable on March 23, 2026, to shareholders of record as of February 27, 2026, and has designated the payment as an eligible dividend for Canadian income tax purpose...
Financial Disclosures
Vecima Schedules Q2 Fiscal 2026 Earnings Call for February 12
Neutral
Jan 29, 2026
Vecima Networks announced it will host a conference call and live audio webcast on February 12, 2026, to discuss its financial and operational results for the second quarter of fiscal 2026, covering the three and six months ended December 31, 2025...
Business Operations and StrategyFinancial Disclosures
Vecima Sets February 12 Call to Review Q2 Fiscal 2026 Results
Neutral
Jan 29, 2026
Vecima Networks announced it will hold a conference call and live audio webcast on February 12, 2026, to discuss its financial and operational results for the second quarter of fiscal 2026, covering the three and six months ended December 31, 2025...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.