Haivision Announces Results for the Three Months and Nine Months Ended July 31, 2025

Executive Summary

• Haivision Systems Inc. reported financial results for the third quarter and nine months ended July 31, 2025, showing a 14.2% year-over-year revenue increase in Q3 but a decline in profitability metrics due to increased expenses and non-recurring legal costs.
• The company highlighted significant operational milestones, including a major $61.2 million production agreement with the U.S. Navy and new product launches, while noting a transition away from the legacy integrator model in the control room space.
• Adjusted EBITDA decreased significantly for the nine-month period, dropping from $14.4 million to $5.8 million, driven by a $2.2 million decline in gross profit and an $8.1 million increase in total expenses, including a $1.7 million non-recurring legal settlement.

Key Details

• Q3 2025 Financials (Three Months Ended July 31, 2025):
  • Revenue: $35.0 million (up 14.2% or $4.4 million from prior year).
  • Gross Margin: 72.0% (down from 75.0% in prior year).
  • Total Expenses: $24.9 million (up $3.1 million from prior year).
  • Operating Profit: $0.3 million (down from $1.1 million in prior year).
  • Adjusted EBITDA: $3.5 million (down from $4.1 million in prior year).
  • Adjusted EBITDA Margin: 10.1% (down from 13.5% in prior year).
  • Net Income: $0.2 million (down from $0.4 million in prior year).
• Nine Months 2025 Financials (Ended July 31, 2025):
  • Revenue: $97.5 million (down $1.9 million from prior year).
  • Gross Margin: 72.3% (down from 73.1% in prior year).
  • Total Expenses: $75.6 million (up $8.1 million from prior year).
    • Includes $1.9 million impact from exchange rate fluctuations.
    • Includes $1.7 million non-recurring expense for legal settlement, interest, and fees.
  • Operating Loss: $5.1 million (compared to operating income of $4.5 million in prior year).
  • Adjusted EBITDA: $5.8 million (down from $14.4 million in prior year).
  • Adjusted EBITDA Margin: 5.9% (down from 14.5% in prior year).
  • Net Loss: $3.3 million (compared to net income of $2.6 million in prior year).
• Expense Breakdown (Nine Months):
  • Sales and Marketing: Increased by $1.7 million.
  • Research and Development: Increased by $1.4 million.
  • Share-based payments: Increased by $0.8 million.
  • Currency impact: $1.9 million increase in expenses.
• Operational Highlights & Contracts:
  • Awarded a US$61.2 million (CAD$82 million) production agreement by the U.S. Navy for next-generation combat visualization and video distribution systems.
  • Announced new products: Kraken X1 Rugged and Falkon X2 (5G video transmission).
  • Won ISE Best in Show award for Haivision Command 360 video wall solutions.
  • Awarded IBC Innovation Award for live video contribution solution over private 5G networks at the Paris Summer Games.
  • Joined consortium with Airbus Defense and Space to develop new technologies for rapid, secure, and reliable communications.
  • Collaborated with Shield AI to integrate full-motion video with AI object detection for defense and ISR applications.
  • France Television used Haivision’s private 5G ecosystem for exclusive coverage of the Paris 2024 Olympic surfing competition.
• Balance Sheet Highlights (As of July 31, 2025):
  • Cash: $10.88 million (down from $16.47 million at Oct 31, 2024).
  • Total Assets: $139.1 million.
  • Total Liabilities: $47.0 million (current) + $8.0 million (long-term).
  • Share Capital: $86.3 million.
  • Deficit: $(10.5) million.