Vecima Reports Q2 Fiscal 2026 Results

Executive Summary

• Vecima Networks reported Q2 FY26 consolidated revenue of $73.7 M, up 3.5% YoY and 3.7% QoQ, with gross margin improving to 44.9%.
• Adjusted EBITDA reached $10.6 M (14.4% of sales), a turnaround from an adjusted EBITDA loss in Q2 FY25; net income was $0.1 M.
• Management forecast next‑twelve‑month revenue growth of 20–30% and adjusted EBITDA margin expansion to >20%, driven by design wins and ramp‑up of next‑generation DAA, Entra Optical, and TerraceIQ solutions.

Key Details

• Financial Highlights (Three months ended Dec 31, 2025):
• Revenue: $73.7 M (vs. $71.2 M Q2 FY25, $71.1 M Q1 FY26)
• Gross margin: 44.9% (up from 36.4% YoY, 42.1% QoQ)
• Adjusted gross margin: 46.4%
• Net income: $0.1 M ($0.00 per share) vs. a loss of $7.9 M YoY
• Adjusted EBITDA: $10.6 M (14.4% of sales) vs. a $0.3 M loss YoY
• Segment Performance:
• Video & Broadband Solutions (VBS): $59.6 M revenue, gross margin 39.9% (adjusted 41.6%).
  • Entra DAA deployments generated $56.3 M; customer engagements rose to 147 MSOs.
  • New EN3400 platform deliveries commenced; Power Holdover Modules sales increased.
  • vCMTS solution advanced with lead Tier‑1 trial expansion; first U.S. XGS‑PON customer secured.
• Commercial Video (TerraceIQ): $3.2 M revenue, selected by a lead U.S. Tier‑1 BSP for multi‑year rollout; additional awards in the U.S. and Mexico.
• Content Delivery & Storage (CDS): $12.3 M revenue (+20.7% YoY), gross margin 65.1%; IPTV expansion and Dynamic Ad Insertion deployment ongoing.
• Telematics: $1.8 M revenue, 11 new NERO asset‑tracking customers, total tags >106 k; gross margin 71.4%.
• Guidance & Outlook:
• Anticipates 20–30% revenue growth YoY for the next twelve months (calendar 2025 vs. 2026).
• Adjusted EBITDA margin expected to exceed 20%; adjusted EBITDA growth projected at 70–85% YoY.
• Growth drivers: major design wins with Tier‑1 broadband service providers, rollout of Entra DAA and Optical platforms, TerraceIQ commercial video adoption, vCMTS market expansion (global $350 M opportunity by 2029).
• Balance Sheet Highlights (Dec 31, 2025):
• Cash & equivalents: $3.1 M; working capital $49.3 M.
• Net debt reduced to $66.9 M from a high of $92.0 M in Q3 FY24.
• Conference Call: Hosted Feb 12, 2026 at 1 p.m. ET; webcast available live and archived on Vecima’s website.

Notable Quotes

• “This was a rewarding second quarter that delivered significant customer progress and improved operating performance across our business,” – Sumit Kumar, President & CEO.
• “We now expect next‑twelve‑month revenue to increase in the range of 20% to 30%, driven by portfolio strength, major design wins, and essential DAA‑based gigabit upgrades globally.” – Sumit Kumar.