Harmonic Inc.

Welcome to the third quarter 2025 Harmonic Earnings Conference Call. My name is Cherie, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please note that this conference is being recorded. I will now turn the call over to Scott Eckstein, Investor Relations. You may begin, Scott.

Thank you, Operator. Hello, everyone, and thank you for joining us today for Harmonix's third quarter 2025 Financial Results Conference call. With me today are Nimrod Van Naden, President and CEO, and Walter Jankovic, Chief Financial Officer. Before we begin, I'd like to point out that in addition to the audio portion of the webcast, We've also provided slides for this webcast, which you may view by going to our webcast on our Investor Relations website. Now turning to slide two, during this call, we will provide projections and other forward-looking statements regarding future events or future financial performance of the company. Such statements are only current expectations and actual events or results may differ materially. We refer you to documents, harmonic files with the SEC, including our most recent 10Q and 10K reports. and the forward-looking statement section of today's preliminary results press release. These documents identify important risk factors, which can cause actual results that differ materially from those contained in our projections and forward-looking statements. And please note that, unless otherwise indicated, the financial metrics we provide you on this call are determined on a non-GAAP basis. These metrics, together with corresponding GAAP numbers and a reconciliation to GAAP, are contained in today's press release, which we have posted on our website and filed with the FCC on Form 8-K. We will also discuss historical, financial, and other statistical information regarding our business and operation, and some of this information is included in the press release. The remainder of the information will be available on a recorded version of this call or on our website. And now, I'll turn the call over to our CEO, Nimrod Ben-Nadid. Nimrod?

Thanks, Scott, and welcome everyone to our third quarter 2025 earnings quarter. Today, we shared strong third quarter results that exceeded our guidance and reflect both focused execution and growing market momentum across our broadband and video businesses. Revenue was $142.4 million driven by strong unified RPD and fiber product shipments, along with year-over-year growth in broadband rest of world, and continued strong video performance across both appliances, and SaaS streaming. In addition to these operational achievements, we return capital to shareholders by repurchasing an additional $16 million of our outstanding common shares, bringing total repurchases under the current program to $66.1 million. We close the quarter with backlog and deferred revenue of $495 million, underscoring consistent customer demand and visibility into future deployments as operators accelerate network modernization. Earlier today, we announced an expanded partnership with Charter to extend our COS virtualized broadband platform and advanced operational tools across their entire footprint, including the deployment of DOCSIS 4.0 unified RPDs. This expansion reinforces Harmonix leadership in virtualized broadband and our ability to scale next-generation architectures for the world's largest operators. Turning to slide five, across the industry, broadband operators are making significant investments to modernize their networks for higher speeds and to deliver better economics and improve subscriber satisfaction. Network evolution has become a strategic imperative. Elevating quality of experience, reducing churn, and lowering operating costs are no longer optional. They are core business goals. Harmonix Virtual Virtualized broadband platform, cloud services, and operational tools together with our portfolio of compact, energy-efficient, and feature-rich DOCSIS and fiber access devices are driving this industry transformation. Our customers rely on us to simplify network modernization, accelerate deployments, and continuously optimize performance at scale. These capabilities make the business case for transformation both compelling and sustainable. Turning to slide six, building on our broadband growth strategy, revenue in this segment reached $90.5 million for the quarter, with gross margin of 47.3%. We now have 142 COS deployments in production, serving over 37 million cable modems and ONUs worldwide, reflecting our unmatched scale and reliability in virtualized broadband. At this scale, the gap between Harmonic and the rest of the market has become extraordinary. Our field-proven consistency, operational depth, and nearly decade-long production maturity place our platform in a class of its own. In addition to these results, this quarter we also achieved several important milestones with key customers that highlight our leadership in unified DOCSIS 4.0 and fiber convergence. Together with Mediacom, the fifth largest cable operator in the US, we completed the industry's first production deployment of a unified DOCSIS 4.0 on a live extended spectrum network. This deployment, showcased at SCTE Tech Expo, demonstrated symmetric multi-gig performance and live analytics with real subscribers, a breakthrough moment for the broadband industry. We are also powering GCI's modernization program with our COS platform and unified DOCSIS 4.0 nodes, enabling them to bring multi-gigabit broadband to some of the most remote regions in North America. This collaboration highlights how our technology helps operators extend the reach and longevity of existing HFC infrastructure. Additionally, Midco, a leading operator in the Midwest, continued its rollout of virtual CMTS and DAA nodes, selecting Harmonic to upgrade its HFC network and prepare for future 4.0 upgrades. Also among recent highlights is a multi-million dollar RFP award from a leading Europe operator in Europe, along with another win with an international tier one operator. Both partnered with Harmonic to power their next generation broadband transformation. Our fiber business delivered another strong quarter, demonstrating both robust year over a year growth and accelerating customer momentum. We continue to win new projects and follow on orders across North America and international markets. A major highlight this quarter is our expanding collaboration with Comcast, which is deploying our fiber solution, including our virtual BNG and remote OLTs as part of its network expansion program. Comcast is adding roughly 1 million new fiber passing per year leveraging our technology to deliver multi-gigabit symmetrical broadband with ultra-low latency. This expansion extends connectivity to new and remote communities and demonstrates how our solution accelerates fiber reach while simplifying operation and reducing cost. The fiber segment remains a key growth driver supported by record booking and expanding global adoption. Our unified DOCSIS 4.0 strategy continues to gain momentum, marked this quarter by the first commercial extended spectrum rollouts. These live deployments validate the maturity of the technology and are fueling growing operator interest as the ecosystem advances through ongoing interoperability work and increasing readiness of modems and smart amplifiers. Unified RPD shipments remain strong, and our new unified RF front-end tray is on track for initial shipments late in the fourth quarter. Innovation continues to be a defining strength for Harmonic, and this quarter we expanded our capabilities of our broadband cloud platform to drive higher network intelligence and operational automation. We introduced new tools that allow operators to detect and resolve service issues in real time down to micro-outage levels, improving subscriber satisfaction and reducing churn. These capabilities leverage our advanced streaming telemetry to provide instant root cause analysis and to automate corrective options and optimize field resources to dispatch with exceptional precision. At SCTE, we also unveiled Pathfinder, a patent pending new self-healing capability within our broadband platform. Pathfinder enables the rapid mitigation of localized spectrum interference that could otherwise affect quality of experience for any group of subscribers. This functionality complements our beacon speed maximizer technology, which dynamically adapts RF network configuration to maintain peak throughput, even in challenging and dynamic conditions. Together, these innovations mark a new level of adaptive intelligence for Harmonix broadband platform, reinforcing our leadership and unique differentiation. To summarize, our broadband business continues to perform, fueled by new deployments, expanding fiber adoption, and advances in unified DOCSIS 4.0. Our converged DOCSIS and fiber architecture is proven at scale, enabling operators to deliver multi-gigabit services with higher quality of experience and lower total cost of ownership. Fiber continues as a high priority as we execute successfully across a growing number of deployments. It stands out as a major growth engine for Harmonic, with rising customer wins, expanding use cases, and consistently increasing revenue. Meanwhile, the successful launch of LiveDox's 4.0 services and a maturing ecosystem are driving momentum and giving more operators the confidence to advance their own deployments. Combined with growing intelligence of our cloud-based capabilities, Harmonic is positioned as partner of choice for operators seeking to elevate broadband performance, simplify operations, and maximize value from their network investments. These dynamics give us confidence in our long-term growth trajectory as Unified Access 4.0 and fiber deployments scale through 2026 and beyond. Turning to slide seven. The video market continues to transform rapidly, shaped by new audience experiences and rising expectations for reliability. Broadcast-grade availability is now essential to streaming success, specifically for live sports, where even a brief disruption carries immediate business impact. The recent widespread cloud outages that took down major streaming, gaming, and messaging services worldwide was a clear reminder of how dependent the industry remains on a few cloud providers. Our VOS streaming platform was designed from the ground up to avoid this single point dependency. It is fully cloud agnostic, geo-redundant, and capable of seamless failover across cloud providers. This architecture enables our customers to maintain continuity and deliver uninterrupted service. even when a major cloud experiences downtime. At the same time, sports streaming is evolving rapidly with new innovation and differentiation. Leading platforms are competing to offer more immersive and personalized fan experiences. A major streaming platform is expanding its involvement in live sports through Formula One coverage, designed to offer a data-driven and immersive experience by integrating live race telemetry multiple in-car camera views, and special audio to make viewers feel like they are inside the action. Meanwhile, Peacock recently introduced Dolby Atmos to Sunday Night Football, bringing viewers closer to the action than ever before. Such experiences highlight the next frontier of sports engagement, immersive, interactive, and powered by real-time data. Our strategy aligns closely with that trend. VOS 360 Media SaaS and VOS 360 Ed SaaS now deliver sub-five-second synchronized low-latency streaming, multi-view experiences, AI-based highlights creation, and dynamic in-stream advertising. These capabilities position Harmonic as a critical enabler of next-generation live sports streaming services. In the third quarter, video segment delivered $51.9 million in revenue up sequentially and reflecting solid execution across both appliances and SAS streaming. Our appliance business delivered solid execution through continued Tier 1 refresh programs, competitive takeouts, and primary distribution wins, while SAS streaming once again achieved record performance with $16.1 million and quarterly revenue driven by global live sports deployments and new Tier 1 opportunities moving into scale. We also expanded our ecosystem of technology partners, including AI-specific EdTech integrations with Google Ad Manager and other leading monetization platforms. These advancements, combined with our unique advertising capabilities, are driving strong momentum and wins for our VOS Ed solutions and redefining how live sports is delivered, monetized, and experienced. Looking ahead, our combination of appliance strengths, accelerating SaaS growth, and differentiated multi-cloud resiliency provide a strong foundation for continued profitable expansion in 2026 and beyond. Now I will turn to Walter for a deeper review of our financials.