Harmonic Inc Investor Day 2026

All right. Good morning, and welcome to Harmonic's 2026 Investor Day. I'm Walter Jankovic, Chief Financial Officer. For you all that are joining us here in New York and over the webcast, thanks for being with us. Today's a special and exciting day for us. It's been 12 years since we've done an in-person investor day. More exciting, this is the first time as the new Harmonic, a pure-play broadband company with a larger market opportunity, a sharper strategy, and a growth framework that we're really excited to talk to you about today. Today, you're going to hear from our leadership team. Nimrod will walk us through vision and strategy. Asaf and Yaniv will talk about the markets we serve today and the markets we'll serve in the future.

I'll provide a brief financial overview. Then Jeff will host a customer panel. Then we'll wrap it up with a Q&A. Some housekeeping. We're going to make forward-looking statements today. Actuals may materially differ. Therefore, please review our SEC filings for risk factors. Now, with that, I would like to introduce our President and Chief Executive Officer, Nimrod Ben-Natan.

Thanks, Walter, and thanks, everybody, for joining us here today and online. October, next month, 30 years ago, I joined Harmonic. Quite a journey. When I look back, what I really see is a series of transformations that we've gone through. We started as an analog optics company. We transitioned into digital video. We were at the forefront of that. We moved the industry to high definition, digital ad insertion, and more recently, the transformation to virtualized broadband access. Today, we're excited to talk to you about the new Harmonic and the road ahead. Let's jump right into it. Many of you really know us about what we do in cable. You may remember we started with CableOS, and the leadership that we've got in the DOCSIS cable market. Today, we're really going to talk about the broader vision of how we see the opportunity ahead.

In cable, the market is expanding and we're as well with fiber to the home. Lots of cable operators are doing fiber for edge out, for new development, and surgically in competitive markets and MDUs. I'm excited to share with you that this year, in 2026, we're going to end the year with $70 million of revenue just in this category. With the momentum that we have, with the maturity of the product line, we feel ready to go after the broader opportunity of the telco fiber. Same technology, different customer base, but we are at the point where we are really ready to tackle that market.

We announced last week our cOS SensAI, which is our intelligence platform to serve the broadband operators, cable and telco, DOCSIS and fiber, to really address the opportunity, which is the toughest challenge that they have right now to maintain customer satisfaction, reduce churn, while maintaining their operating cost. Another very interesting development in the market related to the fiber technology is a new market, we call it PON beyond fiber to the home, which is using the PON technology in data center markets and in the enterprise market to really connect devices. In data center, you have tens of thousands of devices to manage what is called out-of-band management, and in the enterprise market, this is an alternative to a point-to-point ethernet. Very interesting market that the market started to follow, and we will talk more about that.

That is rounding up the connectivity, cable, fiber markets, as well as the intelligence. The wheel is effectively complete, but there is one other thing that is very interesting that we started to focus on, which is really the edge compute opportunity in the AI market. This is really a very interesting opportunity where both cable and telco are going through the modernization of their architecture, where they free up a lot of space across their network. Facilities that used to be central offices or cable hubs with legacy equipment now become empty. They have power, they have space, they have fiber connectivity, and they have very strategic location in the network, milliseconds away from businesses and customers. We are not the first to talk about that. I think last week at Goldman Sachs, Verizon talked about that. Sievert talked about that the other day.

What we really want to do in this market, which we have not sized yet, is really enable that through the longer tail of customers and the opportunity, and we will talk more about that, is really how to leverage cOS as an orchestration platform and help customers to bring that to the edge of the network. When we look at the opportunity, we see clearly the connectivity is the biggest market opportunity, about $5.4 billion, including cable, fiber and cable, telco, as well as the PON in the data center and enterprise. We will break that down as we go through the day today. The intelligence opportunity as we define it, a market between $1 billion and $2 billion, and yet to be sized opportunity across the edge AI compute. By 2030, we see an opportunity of about $7 billion ahead of us.

When we look into the future, one of the things that we believe is that everything that we see AI today that is generated in data centers will get experienced, consume and experience in the home, obviously on the go. But when you go home, you offload into your Wi-Fi, and lots of connected devices will evolve with the way we see AI, agentic AI, everything that is every day we read about, will clearly change the way the network is performing. Will really change the shape of the network. We see growing demand for intelligence, and we see growing demand for fiber, both in cable and clearly, as we go into the telco market. We talked about the compute opportunity, which again, is an opportunity in development.

Really what we want to achieve is to be the broadband platform of this transformation across the connectivity, the intelligence, and the compute based on the cOS platform. You know what, this is not the first time that we do identify an opportunity and work towards bringing that to market. Quite often, we do it in collaboration with key customers. We've called it before, the way we did it about 10 years ago with the virtualization of the broadband cable, we really pioneered that. We identified the opportunity, and we executed on that. We did it even before with those of you who remember the EdgeQAM market that enabled video on demand over cable networks. I think this will be a good opportunity to hear from one of our customers, how is it to collaborate and partner with Harmonic.

The partnership that we have with Harmonic is strategic and critical to everything that we want to do going forward. My name is Elad Nafshi. I am the Executive Vice President and Chief Network Officer for Comcast. In 2018, we really started to partner together on creating the blueprint for how do we, as an industry, scale broadband services into the future, and that led to the creation of the DAA, Distributed Access Architecture, and the vCMTS, the virtualized CMTS project, which we've been working on with Harmonic ever since. We have been operating as one company, and we have been innovating as one company for the past eight, nine years. We would have not been able to deliver this much innovation in such a short period of time without that complete partnership.

About four years ago, we were able to be recognized with a technical Emmy Award, that we were very happy to jointly receive, both Comcast and Harmonic, for the creation of the DAA architecture and the vCMTS. That just signifies just how critical and how transformational this relationship has been to the industry. With DOCSIS 4.0 FDX rolling out across our footprint, delivering multi-gig symmetrical services in great scale, and we're super excited with our accomplishments. We're just getting started. How do we continue to scale seamless fiber delivery and continue to grow the network at the scale that we are. We're adding 1.2 million homes to our network today. All of that is fed with our joint development, DAA platform, and we're very, very excited to do even more. We connect 65 million homes. We serve 39 different states. Our network is huge. It's over 1 million miles of fiber and cable, and how we bring all of that together and leverage the technology that we're inventing for the industry in order to deliver even faster, even more reliable, and even more scalable services, is what this partnership is about.

It's what we've delivered over the course of the last eight years, and is what I cannot wait to continue to expand across the footprint.

Thanks, Comcast. Thanks, Elad. When I took over about two years ago, the CEO position, we set four strategic imperatives for the business that we kept updating you on the progress. Diversification, leading the DOCSIS market on cable, growing the fiber, and getting into the intelligence. I am happy to update. While this is not a victory, this is a great milestone to indicate we have grown the diversification percentage of what we call rest-of-market customers from 20% to 37%. We continued the leadership on the DOCSIS market. We have the 90-plus percent market share, and we were the first to introduce the unified architecture. We got J.R. from Mediacom on the customer panel here, and he will talk more about that. On the fiber, I am very excited with the update we are sharing with you today on the revenue. We will achieve $70 million in 2026 on that product line.

Number of customers have grown. On the intelligence, we gave you updates along the way. Elements of the solution, like the Beacon and the Ampli. We got more than 30 customers now using the technology. Last week we announced the cOS SensAI, which is our intelligence platform, a very comprehensive intelligence platform, and we are going to expand on that in more details. That execution got reflected on the financial performance. We achieved record revenue, record backlog. We executed on the share buyback. With the sale of the video, we are in a good position to keep funding our growth initiatives as we execute on that. When we look at the market itself, hypercompetitive. It used to be cable fiber. There is a fixed wireless, there is satellite, and every day there is reports on how challenging this is for the customers.