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Harmonic Announces Fourth Quarter and Fiscal 2024 Results

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Record total quarterly revenue, up 33% year over year, and record quarterly Adjusted EBITDA

Doubles previous stock repurchase program to $200 million

SAN JOSE, Calif., Feb. 10, 2025 /PRNewswire/ — Harmonic Inc. (NASDAQ: HLIT) today announced its unaudited results for the fourth quarter and fiscal year ended December 31, 2024.

“Harmonic achieved record quarterly total company revenue and Adjusted EBITDA, with both Broadband and Video revenue exceeding expectations,” said Nimrod Ben-Natan, president and chief executive officer of Harmonic. “The strong performance in Broadband demonstrates our ability to scale to our customers’ needs and our technology leadership has never been stronger, leaving us well-positioned to take advantage of expected long-term growth in broadband DOCSIS 4.0 and Fiber.”

“Our prudent 2025 Broadband revenue guidance reflects shifts in customer deployment timing as operators transition to Unified DOCSIS 4.0. These trends are industry-wide and we believe they are short-term in nature,” said Walter Jankovic, chief financial officer of Harmonic. “We remain confident in our long-term outlook and expect to resume above market growth in 2026 as adoption of DOCSIS 4.0 accelerates and cable capital spending returns to its long-term growth trajectory. Additionally, our board of directors has authorized a new three-year, $200 million share repurchase program, reflecting our confidence in the Company’s strong continued profitability and free cash flow generation. We intend to opportunistically repurchase our shares when we believe that our stock is undervalued relative to the strength of our business, thereby creating value for our long-term shareholders.”

Q4 Financial and Business Highlights

Financial

Revenue: $222.2 million, compared to $167.1 million in the prior year periodBroadband segment revenue: $171.0 million, compared to $115.2 million in the prior year periodVideo segment revenue: $51.1 million, compared to $51.9 million in the prior year periodGross margin: 56.1% for both GAAP and non-GAAP, compared to GAAP 49.0% and non-GAAP 49.3% in the prior year periodBroadband segment non-GAAP gross margin: 52.7% compared to 42.4% in the prior year periodVideo segment non-GAAP gross margin: 67.4% compared to 64.6% in the prior year periodOperating income: GAAP income $52.9 million and non-GAAP income $63.1 million, compared to GAAP income $9.6 million and non-GAAP income $18.9 million in the prior year periodNet income: GAAP net income $38.1 million and non-GAAP net income of $52.4 million, compared to GAAP net income $83.8 million and non-GAAP net income $14.7 million in the prior year periodNon-GAAP adjusted EBITDA: $71.8 million income compared to $21.7 million income in the prior year periodNet income per share: GAAP net income per share of $0.32 and non-GAAP net income per share of $0.45, compared to GAAP net income per share of $0.72 and non-GAAP net income per share of $0.13 in the prior year periodCash: $101.5 million, compared to $84.3 million in the prior year period

Business

Commercially deployed our cOS™ solution with 127 customers, serving 33.3 million cable modemsLargest installed base of DOCSIS 4.0 and now engaged with 10 Tier 1 operators on Unified DOCSIS 4.0Increased Q4 2024 rest-of-world Broadband sales by over 50% from prior quarter, and won five new customers including Blue Stream Fiber (USA) and IPKO (Europe)Formed exclusive technology collaboration with Sercomm to advance DOCSIS 4.0 unified technologiesVideo SaaS (VOS360) is now qualified on a fourth cloud platform with Akamai Cloud Computing; additionally, Akamai has selected Harmonic as the technology vendor for one of their video streaming services

Share Repurchase Program

Harmonic also announced today that its board of directors has terminated the Company’s existing stock repurchase program and authorized a new program under which the Company may repurchase up to $200 million of its outstanding shares of common stock through February 2028. The Company intends to fund the share repurchases from cash on hand and cash generated from operations. Repurchases under the program may be made from time to time through open market purchases and 10b5-1 trading plans, in accordance with applicable securities laws. The timing and amount of any repurchases will depend on a variety of factors, including the price of Harmonic’s common stock, business and market conditions, corporate regulatory requirements, strategic opportunities and other factors. The stock repurchase program does not commit Harmonic to acquire any particular amounts of its common stock, and the program may be amended, suspended or discontinued at any time at the Company’s discretion.

Select Financial Information

GAAP

Non-GAAP

Key Financial Results

Q4 2024

Q3 2024

Q4 2023

Q4 2024

Q3 2024

Q4 2023

(Unaudited, in millions, except per share data)

Net revenue

$         222.2

$         195.8

$         167.1

*

*

*

Net income

$           38.1

$           21.7

$           83.8

$           52.4

$           29.9

$           14.7

Net income per share

$           0.32

$           0.19

$           0.72

$           0.45

$           0.26

$           0.13

Other Financial Information

Q4 2024

Q3 2024

Q4 2023

(Unaudited, in millions)

Adjusted EBITDA for the quarter (1)

$           71.8

$           43.4

$           21.7

Bookings for the quarter

$         150.0

$         171.4

$         196.5

Backlog and deferred revenue as of quarter end

$         496.3

$         584.7

$         653.2

Cash and cash equivalents as of quarter end

$         101.5

$           58.2

$           84.3

(1) Adjusted EBITDA is a Non-GAAP financial measure. Refer to “Preliminary Net Income to Consolidated Segment Adjusted EBITDA Reconciliation” below for a reconciliation to net income, the most comparable GAAP measure.

* Not applicable

Explanations regarding our use of non-GAAP financial measures and related definitions, and reconciliations of our GAAP and Non-GAAP measures, are provided in the sections below entitled “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations.”

Financial Guidance 

 Q1 2025 GAAP Financial Guidance

(Unaudited, in millions, except
percentages and per share data)

Low

High

Broadband

Video

Total

Broadband

Video

Total

Net revenue

$                  80

$                  40

$             120

$                  90

$                  45

$             135

Gross margin %

55.8 %

57.0 %

Gross profit

$               67

$               77

Tax rate

19 %

19 %

Net income (loss)

$                (6)

$                 1

Net income (loss) per share

$           (0.05)

$            0.01

Shares (1)

117.4

118.5

(1) Diluted shares assumes stock price at $13.07 (Q4 2024 average price).

 2025 GAAP Financial Guidance

(Unaudited, in millions, except
percentages and per share data)

Low

High

Broadband

Video

Total

Broadband

Video

Total

Net revenue

$                400

$                185

$             585

$                450

$                195

$             645

Gross margin %

54.5 %

57.1 %

Gross profit

$             319

$             368

Tax rate

19 %

19 %

Net income

$               22

$               53

Net income per share

$            0.19

$            0.45

Shares (1)

119.1

119.1

(1) Diluted shares assumes stock price at $13.07 (Q4 2024 average price).

Q1 2025 Non-GAAP Financial Guidance (1)

(Unaudited, in millions, except
percentages and per share data)

Low

High

Broadband

Video

Total

Broadband

Video

Total

Gross margin %

52.0 %

64.0 %

56.0 %

54.0 %

65.0 %

57.7 %

Gross profit

$                  42

$                 26

$               68

$                  49

$                  29

$               78

Adjusted EBITDA(2)

$                    9

$                 —

$                 9

$                  15

$                    2

$               17

Tax rate

20 %

20 %

Net income per share

$            0.02

$            0.08

Shares (3)

118.5

118.5

(1) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations on Financial Guidance” below. Components may not sum to total due to rounding.

(2) Refer to “Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation on Financial Guidance” below for a reconciliation to net income (loss), the most comparable GAAP measure.

(3) Diluted shares assumes stock price at $13.07 (Q4 2024 average price).

 2025 Non-GAAP Financial Guidance (1)

(Unaudited, in millions, except
percentages and per share data)

Low

High

Broadband

Video

Total

Broadband

Video

Total

Gross margin %

51.0 %

63.0 %

54.8 %

54.0 %

65.0 %

57.3 %

Gross profit

$                 204

$             117

$             321

$                243

$                127

$             370

Adjusted EBITDA(2)

$                   77

$                 8

$               85

$                106

$                  17

$             123

Tax rate

20 %

20 %

Net income per share

$            0.43

$            0.68

Shares (3)

119.1

119.1

(1) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations on Financial Guidance” below. Components may not sum to total due to rounding.

(2) Refer to “Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation on Financial Guidance” below for a reconciliation to net income (loss), the most comparable GAAP measure.

(3) Diluted shares assumes stock price at $13.07 (Q4 2024 average price).

Conference Call Information

Harmonic will host a conference call to discuss its financial results at 2:00 p.m. PT (5:00 p.m. ET) on Monday, February 10, 2025. The live webcast will be available on the Harmonic Investor Relations website at http://investor.harmonicinc.com. To participate via telephone, please register in advance using this link, https://register-conf.media-server.com/register/BI2f09f965b0ef4108b66aaee0197cd4f5. A replay will be available after 5:00 p.m. PT on the same website.

About Harmonic Inc.

Harmonic (NASDAQ: HLIT), the worldwide leader in virtualized broadband and video delivery solutions, enables media companies and service providers to deliver ultra-high-quality video streaming and broadcast services to consumers globally. The company revolutionized broadband networking via the industry’s first virtualized broadband solution, enabling operators to more flexibly deploy gigabit internet service to consumers’ homes and mobile devices. Whether simplifying OTT video delivery via innovative cloud and software platforms, or powering the delivery of gigabit internet services, Harmonic is changing the way media companies and service providers monetize live and on-demand content on every screen. More information is available at www.harmonicinc.com.

Legal Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements related to our stock repurchase program and our expectations regarding net revenue, gross margins, operating expenses, operating income (loss), Adjusted EBITDA, tax expense and tax rate, and net income (loss) per diluted share. Our expectations regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, in no particular order, the following: stock repurchases may not be conducted in the timeframe or in the manner we expect, or at all; customer concentration and consolidation; loss of one or more key customers; delays or decreases in capital spending in the cable, satellite telco, broadcast and media industries; the possibility that our products will not generate sales that are commensurate with our expectations or that our cost of revenue or operating expenses may exceed our expectations; the market and technology trends underlying our Broadband and Video businesses will not continue to develop in their current direction or pace; the impact of general economic conditions on our sales and operations; the mix of products and services sold in various geographies and the effect it has on gross margins; our ability to develop new and enhanced products in a timely manner and market acceptance of our new or existing products; risks associated with our international operations; exchange rate fluctuations of the currencies in which we conduct business; risks associated with our cOS™ and VOS product solutions; dependence on various broadband and video industry trends; inventory management; the lack of timely availability or the impact of increases in the prices of parts or raw materials necessary to produce our products; the effect of competition, on both revenue and gross margins; difficulties associated with rapid technological changes in our markets; risks associated with unpredictable sales cycles; our dependence on contract manufacturers and sole or limited source suppliers; and the impact on our business of natural disasters. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Harmonic’s filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K for the year ended December 31, 2023, our most recent Quarterly Report on Form 10-Q and our Current Reports on Form 8-K. The forward-looking statements in this press release are based on information available to the Company as of the date hereof, and Harmonic disclaims any obligation to update any forward-looking statements.

Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or referred to herein as “reported”). However, management believes that certain non-GAAP financial measures provide management and other users with additional meaningful financial information that should be considered when assessing our ongoing performance. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, establish operating budgets, set internal measurement targets and make operating decisions.

These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. The Company believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Harmonic’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Harmonic’s results of operations in conjunction with the corresponding GAAP measures.

The Company believes that the presentation of non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the Company’s reported results prepared in accordance with GAAP.

The non-GAAP measures presented here are: Gross profit, operating expenses, income (loss) from operations, non-operating expenses and net income (loss), Adjusted EBITDA (including those amounts as a percentage of revenue) and net income (loss) per diluted share. The presentation of non-GAAP information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP, and is not necessarily comparable to non-GAAP results published by other companies. A reconciliation of the historical non-GAAP financial measures discussed in this press release to the most directly comparable historical GAAP financial measures is included with the financial statements provided with this press release. The non-GAAP adjustments described below have historically been excluded from our GAAP financial measures.

Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

Stock-based compensation – Although stock-based compensation is a key incentive offered to our employees, we continue to evaluate our business performance excluding stock-based compensation expenses. We believe that management is limited in its ability to project the impact stock-based compensation would have on our operating results. In addition, for comparability purposes, we believe it is useful to provide a non-GAAP financial measure that excludes stock-based compensation in order to better understand the long-term performance of our core business and to facilitate the comparison of our results to the results of our peer companies. 

Restructuring and related charges – Harmonic from time to time incurs restructuring charges which primarily consist of employee severance, one-time termination benefits related to the reduction of its workforce, and other costs. These charges are associated with material business shifts. We exclude these items because we do not believe they are reflective of our ongoing long-term business and operating results. 

Non-cash interest expense related to convertible notes – We record the amortization of issuance costs as non-cash interest expense. We believe that excluding these costs provides meaningful supplemental information regarding operational performance and liquidity, along with enhancing investors’ ability to view the Company’s results from management’s perspective. In addition, we believe excluding these costs from the non-GAAP measures facilitates comparisons to our historical operating results and comparisons to peer company operating results. 

Discrete tax items and tax effect of non-GAAP adjustments – The income tax effect of non-GAAP adjustments relates to the tax effect of the adjustments that we incorporate into non-GAAP financial measures in order to provide a more meaningful measure of non-GAAP net income.

Depreciation – Depreciation expense, along with interest, tax and stock-based compensation expense, and restructuring charges, is excluded from Adjusted EBITDA because we do not believe depreciation and the other items relate to the ordinary course of our business or are reflective of our underlying business performance.

Non-recurring advisory fees – There were non-recurring costs that we excluded from non-GAAP results relating to professional accounting, tax and legal fees associated with strategic corporate initiatives.

Asset impairment and related charges- We exclude asset impairment and related charges due to the nature of such expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of impairments of fixed assets, right-of-use assets and related leasehold improvements, and other unrecoverable facility costs due to the intended change in use of certain leased space.

Harmonic Inc.

Preliminary Condensed Consolidated Balance Sheets

(Unaudited, in thousands, except par value)

December 31, 2024

December 31, 2023

ASSETS

Current assets:

   Cash and cash equivalents

$                  101,457

$                    84,269

   Restricted cash

332

—

   Accounts receivable, net

178,013

141,531

   Inventories

64,004

83,982

   Prepaid expenses and other current assets

22,270

20,950

Total current assets

366,076

330,732

Property and equipment, net

26,823

36,683

Operating lease right-of-use assets

12,411

20,817

Goodwill

236,876

239,150

Deferred income taxes

121,028

104,707

Other non-current assets

33,292

36,117

Total assets

$                  796,506

$                  768,206

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Convertible debt

$                           —

$                  114,880

Current portion of long-term debt

2,194

—

Current portion of other borrowings

4,941

4,918

Accounts payable

35,250

38,562

Deferred revenue

47,069

46,217

Operating lease liabilities

5,675

6,793

Other current liabilities

72,440

61,024

Total current liabilities

167,569

272,394

Long-term debt

112,084

—

Other long-term borrowings

8,694

10,495

Operating lease liabilities, non-current

14,727

18,965

Other non-current liabilities

28,174

29,478

Total liabilities

331,248

331,332

Stockholders’ equity:

Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding

—

—

Common stock, $0.001 par value, 150,000 shares authorized; 116,735 and 112,407 shares
issued and outstanding at December 31, 2024 and December 31, 2023, respectively

117

112

Additional paid-in capital

2,432,733

2,405,043

Accumulated deficit

(1,953,495)

(1,962,575)

Accumulated other comprehensive loss

(14,097)

(5,706)

Total stockholders’ equity

465,258

436,874

Total liabilities and stockholders’ equity

$                  796,506

$                  768,206

 

Harmonic Inc.

Preliminary Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share data)

Three Months Ended

Year Ended

December 31, 2024

December 31, 2023

December 31, 2024

December 31, 2023

Revenue:

Appliance and integration

$                  177,914

$                  125,197

$              507,378

$                  435,878

SaaS and service

44,252

41,895

171,344

172,029

Total net revenue

222,166

167,092

678,722

607,907

Cost of revenue:

Appliance and integration

84,072

70,596

255,707

236,773

SaaS and service

13,443

14,629

57,094

58,589

Total cost of revenue

97,515

85,225

312,801

295,362

Total gross profit

124,651

81,867

365,921

312,545

Operating expenses:

Research and development

31,413

30,252

120,975

126,282

Selling, general and administrative

38,587

41,982

153,124

163,282

Asset impairment and related charges

610

—

12,713

—

Restructuring and related charges

1,173

—

15,973

809

Total operating expenses

71,783

72,234

302,785

290,373

Income from operations

52,868

9,633

63,136

22,172

Interest expense, net

(2,493)

(571)

(7,326)

(2,696)

Other income (expense), net

5,725

(249)

2,123

(335)

Income before income taxes

56,100

8,813

57,933

19,141

Provision for (benefit from) income taxes

17,980

(75,028)

18,716

(64,853)

Net income

$                    38,120

$                    83,841

$                39,217

$                    83,994

Net income per share:

Basic

$                        0.33

$                        0.75

$                    0.34

$                        0.75

Diluted

$                        0.32

$                        0.72

$                    0.33

$                        0.72

Weighted average shares outstanding:

Basic

116,619

112,294

115,120

111,651

Diluted

117,699

115,691

117,482

117,359

 

Harmonic Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

Year Ended

December 31, 2024

December 31, 2023

Cash flows from operating activities:

Net income

$                    39,217

$                    83,994

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

12,139

12,255

Asset impairment and related charges

12,036

—

Stock-based compensation

28,073

27,329

Foreign currency remeasurement

315

1,453

Deferred income taxes, net

(16,436)

(92,856)

Provision for excess and obsolete inventories

10,971

7,396

Other adjustments

569

1,920

Changes in operating assets and liabilities:

Accounts receivable, net

(38,241)

(32,695)

Inventories

8,374

35,403

Other assets

3,199

25,483

Accounts payable

(3,107)

(29,358)

Deferred revenues

(2,210)

(20,823)

Other liabilities

7,018

(12,442)

Net cash provided by operating activities

61,917

7,059

Cash flows from investing activities:

Purchases of investments

—

(6,305)

Proceeds from maturities of investments

—

6,305

Purchases of property and equipment

(9,186)

(8,475)

Net cash used in investing activities

(9,186)

(8,475)

Cash flows from financing activities:

Proceeds from long-term debt

115,000

—

   Repayment of convertible debt

(115,500)

—

Payments for debt issuance costs

(332)

(1,025)

   Proceeds from other borrowings

3,943

3,835

   Repayment of other borrowings

(5,447)

(4,865)

Repurchase of common stock

(30,047)

—

   Proceeds from common stock issued to employees

6,628

6,558

Taxes paid related to net share settlement of equity awards

(7,514)

(9,493)

Net cash used in financing activities

(33,269)

(4,990)

Effect of exchange rate changes on cash and cash equivalents

(1,942)

1,089

Net increase (decrease) in cash and cash equivalents

17,520

(5,317)

Cash and cash equivalents at beginning of period

84,269

89,586

Cash and cash equivalents at end of period

$                  101,789

$                    84,269

Cash and cash equivalents and restricted cash at end of period

Cash and cash equivalents

$                  101,457

$                    84,269

Restricted cash

332

—

Total cash, cash equivalents and restricted cash as shown in the condensed consolidated
statement of cash flows

$                  101,789

$                    84,269

 

Harmonic Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

Year Ended

December 31, 2024

December 31, 2023

Supplemental cash flow disclosure:

Income tax payments, net

$                    27,308

$                    18,128

Interest payments, net

$                      6,283

$                      1,626

Supplemental schedule of non-cash investing activities:

Capital expenditures incurred but not yet paid

$                         488

$                         618

Supplemental schedule of non-cash financing activities:

Shares of common stock issued upon redemption of the 2024 Notes

4,578

—

 

Harmonic Inc.

Preliminary GAAP Revenue Information

(Unaudited, in thousands, except percentages)

Three Months Ended

December 31, 2024

September 27, 2024

December 31, 2023

Geography

Americas

$         186,907

84 %

$         167,720

86 %

$         129,406

77 %

EMEA

26,044

12 %

20,269

10 %

30,041

18 %

APAC

9,215

4 %

7,767

4 %

7,645

5 %

Total

$         222,166

100 %

$         195,756

100 %

$         167,092

100 %

Market

Service Provider

$         178,266

80 %

$         159,993

82 %

$         128,566

77 %

Broadcast and Media

43,900

20 %

35,763

18 %

38,526

23 %

Total

$         222,166

100 %

$         195,756

100 %

$         167,092

100 %

Twelve Months Ended

December 31, 2024

December 31, 2023

Geography

Americas

$         557,255

82 %

$         447,700

74 %

EMEA

92,553

14 %

127,689

21 %

APAC

28,914

4 %

32,518

5 %

Total

$         678,722

100 %

$         607,907

100 %

Market

Service Provider

$         529,381

78 %

$         443,005

73 %

Broadcast and Media

149,341

22 %

164,902

27 %

Total

$         678,722

100 %

$         607,907

100 %

 

Harmonic Inc.

Preliminary Segment Information

(Unaudited, in thousands, except percentages)

Three Months Ended December 31, 2024

Broadband

Video

Total Segment
Measures

Adjustments (1)

Consolidated
GAAP
Measures

Net revenue

$      171,028

$        51,138

$      222,166

$                  —

$      222,166

Gross profit

90,200

(1)

34,451

(1)

124,651

(1)

—

124,651

Gross margin %

52.7 %

(1)

67.4 %

(1)

56.1 %

(1)

56.1 %

Three Months Ended September 27, 2024

Broadband

Video

Total Segment
Measures

Adjustments (1)

Consolidated
GAAP
Measures

Net revenue

$      145,338

$        50,418

$      195,756

$                  —

$      195,756

Gross profit

70,256

(1)

34,770

(1)

105,026

(1)

(294)

104,732

Gross margin %

48.3 %

(1)

69.0 %

(1)

53.7 %

(1)

53.5 %

Three Months Ended December 31, 2023

Broadband

Video

Total Segment
Measures

Adjustments (1)

Consolidated
GAAP
Measures

Net revenue

$      115,229

$        51,863

$      167,092

$                  —

$      167,092

Gross profit

48,803

(1)

33,491

(1)

82,294

(1)

(427)

81,867

Gross margin %

42.4 %

(1)

64.6 %

(1)

49.3 %

(1)

49.0 %

Twelve Months Ended December 31, 2024

Broadband

Video

Total Segment
Measures

Adjustments (1)

Consolidated
GAAP
Measures

Net revenue

$      488,200

$      190,522

$      678,722

$                  —

$      678,722

Gross profit

242,186

(1)

125,284

(1)

367,470

(1)

(1,549)

365,921

Gross margin %

49.6 %

(1)

65.8 %

(1)

54.1 %

(1)

53.9 %

Twelve Months Ended December 31, 2023

Broadband

Video

Total Segment
Measures

Adjustments (1)

Consolidated
GAAP
Measures

Net revenue

$      388,482

$      219,425

$      607,907

$                  —

$      607,907

Gross profit

181,932

(1)

133,649

(1)

315,581

(1)

(3,036)

312,545

Gross margin %

46.8 %

(1)

60.9 %

(1)

51.9 %

(1)

51.4 %

(1) Segment gross margin and segment gross profit are Non-GAAP financial measures. Refer to “Use of Non-GAAP Financial
Measures” above and “GAAP to Non-GAAP Reconciliations.”

 

Harmonic Inc.

GAAP to Non-GAAP Reconciliations (Unaudited)

(in thousands, except percentages and per share data)

Three Months Ended December 31, 2024

Revenue

Gross Profit

Total
Operating
Expense

Income from
Operations

Total Non-
operating
Income, net

Net Income

GAAP

$     222,166

$ 124,651

$   71,783

$   52,868

$        3,232

$   38,120

Stock-based compensation

—

—

(8,486)

8,486

—

8,486

Restructuring and related charges

—

—

(1,173)

1,173

—

1,173

Asset impairment and related charges (1)

—

—

(610)

610

—

610

Discrete tax items and tax effect of non-GAAP adjustments

—

—

—

—

—

4,043

Total adjustments

—

—

(10,269)

10,269

—

14,312

Non-GAAP

$     222,166

$ 124,651

$   61,514

$   63,137

$        3,232

$   52,432

As a % of revenue (GAAP)

56.1 %

32.3 %

23.8 %

1.5 %

17.2 %

As a % of revenue (Non-GAAP)

56.1 %

27.7 %

28.4 %

1.5 %

23.6 %

Diluted net income per share:

GAAP

$       0.32

Non-GAAP

$       0.45

Shares used in per share calculation:

GAAP and Non-GAAP

117,699

(1) Includes impairment charges of $0.2 million for right-of-use assets and $0.4 million related to the fair value of other unrecoverable facility costs.

Three Months Ended September 27, 2024

Revenue

Gross Profit

Total
Operating
Expense

Income from
Operations

Total Non-
operating
Expense, net

Net Income

GAAP

$     195,756

$ 104,732

$   69,308

$   35,424

$      (6,618)

$   21,718

Stock-based compensation

—

294

(5,416)

5,710

—

5,710

Restructuring and related charges

—

—

(281)

281

—

281

Asset impairment and related charges (1)

—

—

(3,103)

3,103

—

3,103

Discrete tax items and tax effect of non-GAAP adjustments

—

—

—

—

—

(871)

Total adjustments

—

294

(8,800)

9,094

—

8,223

Non-GAAP

$     195,756

$ 105,026

$   60,508

$   44,518

$      (6,618)

$   29,941

As a % of revenue (GAAP)

53.5 %

35.4 %

18.1 %

(3.4) %

11.1 %

As a % of revenue (Non-GAAP)

53.7 %

30.9 %

22.7 %

(3.4) %

15.3 %

Diluted net income per share:

GAAP

$       0.19

Non-GAAP

$       0.26

Shares used in per share calculation:

GAAP and Non-GAAP

117,358

(1) Includes write-off of $1.8 million for internally capitalized software, and impairment charges of $0.8 million for right-of-use assets, $0.1 million for leasehold improvements and $0.4 million related to the fair value of other unrecoverable facility costs.

Three Months Ended December 31, 2023

Revenue

Gross Profit

Total
Operating
Expense

Income from
Operations

Total Non-
operating
Expense, net

Net Income

GAAP

$167,092

$81,867

$72,234

$9,633

$(820)

$83,841

Stock-based compensation

—

454

(6,151)

6,605

—

6,605

Restructuring and related charges

—

(27)

—

(27)

—

(27)

Non-recurring advisory fee

—

—

(2,702)

2,702

—

2,702

Non-cash interest expense related to convertible notes

—

—

—

—

233

233

Discrete tax items and tax effect of non-GAAP adjustments

—

—

—

—

—

(78,693)

Total adjustments

—

427

(8,853)

9,280

233

(69,180)

Non-GAAP

$167,092

$82,294

$63,381

$18,913

$(587)

$14,661

As a % of revenue (GAAP)

49.0 %

43.2 %

5.8 %

(0.5) %

50.2 %

As a % of revenue (Non-GAAP)

49.3 %

37.9 %

11.3 %

(0.4) %

8.8 %

Diluted net income per share:

GAAP

$0.72

Non-GAAP

$0.13

Shares used in per share calculation:

GAAP and Non-GAAP

115,691

 

Twelve Months Ended December 31, 2024

Revenue

Gross Profit

Total
Operating
Expense

Income from
Operations

Total Non-
operating
Expense, net

Net Income

GAAP

$     678,722

$ 365,921

$ 302,785

$   63,136

$      (5,203)

$   39,217

Stock-based compensation

—

1,089

(26,984)

28,073

—

28,073

Restructuring and related charges

—

460

(15,973)

16,433

11

16,444

Non-recurring advisory fees

—

—

(755)

755

—

755

Asset impairment and related charges (1)

—

—

(12,713)

12,713

—

12,713

Non-cash interest expense related to convertible notes

—

—

—

—

567

567

Discrete tax items and tax effect of non-GAAP adjustments

—

—

—

—

—

(5,736)

Total adjustments

—

1,549

(56,425)

57,974

578

52,816

Non-GAAP

$     678,722

$ 367,470

$ 246,360

$ 121,110

$      (4,625)

$   92,033

As a % of revenue (GAAP)

53.9 %

44.6 %

9.3 %

(0.8) %

5.8 %

As a % of revenue (Non-GAAP)

54.1 %

36.3 %

17.8 %

(0.7) %

13.6 %

Diluted net income per share:

GAAP

$       0.33

Non-GAAP

$       0.78

Shares used in per share calculation:

GAAP and Non-GAAP

117,482

(1) Includes write-off of $1.8 million for internally capitalized software, and impairment charges of $3.9 million for right-of-use assets, $4.3 million for leasehold improvements, and $2.7 million related to the fair value of other unrecoverable facility costs.

Twelve Months Ended December 31, 2023

Revenue

Gross Profit

Total
Operating

 Expense

Income from
Operations

Total Non-
operating
Expense, net

Net Income

GAAP

$     607,907

$ 312,545

$ 290,373

$   22,172

$      (3,031)

$   83,994

Stock-based compensation

—

2,349

(24,980)

27,329

—

27,329

Restructuring and related charges

—

687

(445)

1,132

—

1,132

Non-recurring advisory fees

—

—

(5,201)

5,201

—

5,201

Non-cash interest expense related to convertible notes

—

—

—

—

905

905

Discrete tax items and tax effect of non-GAAP adjustments

—

—

—

—

—

(75,595)

Total adjustments

—

3,036

(30,626)

33,662

905

(41,028)

Non-GAAP

$     607,907

$ 315,581

$ 259,747

$   55,834

$      (2,126)

$   42,966

As a % of revenue (GAAP)

51.4 %

47.8 %

3.6 %

(0.5) %

13.8 %

As a % of revenue (Non-GAAP)

51.9 %

42.7 %

9.2 %

(0.3) %

7.1 %

Diluted net income per share:

GAAP

$       0.72

Non-GAAP

$       0.37

Shares used in per share calculation:

GAAP and Non-GAAP

117,359

 

Harmonic Inc.

Calculation of Adjusted EBITDA by Segment (Unaudited)

(In thousands)

Three Months Ended December 31, 2024

Broadband

Video

Income from operations

$                 57,787

$                   5,350

Depreciation

2,133

835

Other non-operating expenses, net

4,130

1,595

Adjusted EBITDA(1)

$                 64,050

$                   7,780

Revenue

$               171,028

$                 51,138

Adjusted EBITDA margin % (1)

37.5 %

15.2 %

Three Months Ended September 27, 2024

Broadband

Video

Income from operations

$                 38,192

$                   6,326

Depreciation

2,001

859

Other non-operating expenses, net

(2,733)

(1,199)

Adjusted EBITDA(1)

$                 37,460

$                   5,986

Revenue

$               145,338

$                 50,418

Adjusted EBITDA margin % (1)

25.8 %

11.9 %

Three Months Ended December 31, 2023

Broadband

Video

Income (loss) from operations

$                 20,268

$                  (1,355)

Depreciation

1,794

1,283

Other non-operating expenses, net

(160)

(89)

Adjusted EBITDA(1)

$                 21,902

$                     (161)

Revenue

$               115,229

$                 51,863

Adjusted EBITDA margin % (1)

19.0 %

(0.3) %

 

Twelve Months Ended December 31, 2024

Broadband

Video

Income from operations

$               118,354

$                   2,756

Depreciation

8,253

3,886

Other non-operating expenses, net

1,624

510

Adjusted EBITDA(1)

$               128,231

$                   7,152

Revenue

$               488,200

$               190,522

Adjusted EBITDA margin % (1)

26.3 %

3.8 %

Twelve Months Ended December 31, 2023

Broadband

Video

Income (loss) from operations

$                 64,575

$                  (8,741)

Depreciation

6,855

5,400

Other non-operating expenses, net

(204)

(131)

Adjusted EBITDA(1)

$                 71,226

$                  (3,472)

Revenue

$               388,482

$               219,425

Adjusted EBITDA margin % (1)

18.3 %

(1.6) %

(1) Adjusted EBITDA and Adjusted EBITDA margin are Non-GAAP financial measures.
Refer below for the reconciliation of consolidated adjusted EBITDA to net income (loss), the most directly comparable GAAP measure.

 

Harmonic Inc.

Preliminary Net Income to Consolidated Segment Adjusted EBITDA Reconciliation (Unaudited)

(In thousands)

Three Months Ended

December 31, 2024

September 27, 2024

December 31, 2023

Net income (GAAP)

$               38,120

$               21,718

$               83,841

Provision for (benefit from) income taxes

17,980

7,088

(75,028)

Interest expense, net

2,493

2,686

571

Depreciation

2,968

2,860

3,077

EBITDA

61,561

34,352

12,461

Adjustments

Stock-based compensation

8,486

5,710

6,605

Restructuring and related charges

1,173

281

(27)

Non-recurring advisory fees

—

—

2,702

Asset impairment and related charges

610

3,103

—

Total consolidated segment adjusted EBITDA (Non-GAAP)

$               71,830

$               43,446

$               21,741

Revenue

$             222,166

$             195,756

$             167,092

Net income margin (GAAP)

17.2 %

11.1 %

50.2 %

Consolidated segment adjusted EBITDA margin (Non-GAAP)

32.3 %

22.2 %

13.0 %

 

Twelve Months Ended

December 31, 2024

December 31, 2023

Net income (GAAP)

$               39,217

$               83,994

Provision for (benefit from) income taxes

18,716

(64,853)

Interest expense, net

7,326

2,696

Depreciation

12,139

12,255

EBITDA

77,398

34,092

Adjustments

Stock-based compensation

28,073

27,329

Restructuring and related charges

16,444

1,132

Non-recurring advisory fees

755

5,201

Asset impairment and related charges

12,713

—

Total consolidated segment adjusted EBITDA (Non-GAAP)

$             135,383

$               67,754

Revenue

$             678,722

$             607,907

Net income margin (GAAP)

5.8 %

13.8 %

Consolidated segment adjusted EBITDA margin (Non-GAAP)

19.9 %

11.1 %

 

Harmonic Inc.

GAAP to Non-GAAP Reconciliations on Financial Guidance (Unaudited)

(In millions, except percentages and per share data)

Q1 2025 Financial Guidance (1)

Revenue

Gross Profit

Total Operating
Expense

Income (Loss)
from Operations

Net Income (Loss)

GAAP

$   120

to

$   135

$  67

to

$  77

$  71

to

$  73

$  (4)

to

$    4

$  (6)

to

$    1

Stock-based compensation expense

—

1

(9)

10

10

Tax effect of non-GAAP adjustments

—

—

—

—

(1)

to

(2)

Total adjustments

—

1

(9)

10

9

to

8

Non-GAAP

$   120

to

$   135

$  68

to

$  78

$  62

to

$  64

$    6

to

$  14

$    3

to

$    9

As a % of revenue (GAAP)

55.8 %

to

57.0 %

59.2 %

to

54.1 %

(3.3) %

to

3.0 %

(5.0) %

to

0.7 %

As a % of revenue (Non-GAAP)

56.0 %

to

57.7 %

51.7 %

to

47.4 %

5.0 %

to

10.4 %

2.5 %

to

6.7 %

Diluted net income (loss) per share:

GAAP

$(0.05)

to

$0.01

Non-GAAP

$0.02

to

$0.08

Shares used in per share calculation:

GAAP

117.4

to

118.5

Non-GAAP

118.5

(1) Components may not sum to total due to rounding.

2025 Financial Guidance (1)

Revenue

Gross Profit

Total Operating
Expense

Income from
Operations

Net Income

GAAP

$   585

to

$   645

$ 319

to

$ 368

$ 281

to

$ 292

$  38

to

$  76

$22

to

$53

Stock-based compensation expense

—

2

(34)

36

36

Tax effect of non-GAAP adjustments

—

—

—

—

(7)

to

(8)

Total adjustments

—

2

(34)

36

29

to

28

Non-GAAP

$   585

to

$   645

$ 321

to

$ 370

$ 247

to

$ 258

$  74

to

$ 112

$51

to

$81

As a % of revenue (GAAP)

54.5 %

to

57.1 %

48.0 %

to

45.3 %

6.5 %

to

11.8 %

3.8 %

to

8.2 %

As a % of revenue (Non-GAAP)

54.8 %

to

57.3 %

42.2 %

to

40.0 %

12.6 %

to

17.4 %

8.7 %

to

12.6 %

Diluted net income per share:

GAAP

$0.19

to

$0.45

Non-GAAP

$0.43

to

$0.68

Shares used in per share calculation:

GAAP and Non-GAAP

119.1

(1) Components may not sum to total due to rounding.

 

Harmonic Inc.

Calculation of Adjusted EBITDA by Segment on Financial Guidance (Unaudited) (1)

(In millions)

Q1 2025 Financial Guidance

Broadband

Video

Income (loss) from operations

$            7

to

$          13

$          (1)

to

$            1

Depreciation

2

2

1

1

Segment adjusted EBITDA(2)

$            9

to

$          15

$          —

to

$            2

2025 Financial Guidance

Broadband

Video

Income from operations

$          69

to

$          98

$            5

to

$          14

Depreciation

10

10

3

3

Other non-operating expenses

(2)

(2)

—

—

Segment adjusted EBITDA(2)

$          77

to

$        106

$            8

to

$          17

(1) Components may not sum to total due to rounding.

(2) Segment Adjusted EBITDA is a Non-GAAP financial measure. Refer below for the
“Net income (loss) to Consolidated Segment Adjusted EBITDA reconciliation on Financial Guidance.”

 

Harmonic Inc.

Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation on Financial Guidance (Unaudited) (1)

(In millions)

Q1 2025 Financial
Guidance

2025 Financial Guidance

Net income (loss) (GAAP)

$          (6)

to

$            1

$          22

to

$          53

Provision for (benefit from) income taxes

—

1

6

13

Interest expense, net

2

2

8

8

Depreciation

3

3

13

13

EBITDA

$          (1)

to

$            7

$          49

to

$          87

Adjustments

Stock-based compensation

10

10

36

36

Total consolidated segment adjusted EBITDA (Non-GAAP) (2)

$            9

to

$          17

$          85

to

$        123

(1) Components may not sum to total due to rounding.

(2) Consolidated Segment Adjusted EBITDA is a Non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” above.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/harmonic-announces-fourth-quarter-and-fiscal-2024-results-302372571.html

SOURCE Harmonic Inc.

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Technology

OASE+ and Elsevier Agree Next-Phase Read and Publish Agreement to Expand Open Access Publishing in Japan

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A new three-year term removes the annual cap on open access publishing under the Read and Publish agreement and extends eligibility beyond universities

TOKYO, Oct. 26, 2026 /PRNewswire/ — OASE+ (Open Access for Scholarly Empowerment +), the collective negotiating body established with Japanese government support to advance the country’s national open access policy, and Elsevier, a global leader in advanced information and decision support, have agreed a read-and-publish agreement covering 2027 to 2029.

The agreement further develops the framework established by Elsevier in partnership with the Japan Alliance of University Library Consortia for E-Resources (JUSTICE) for 2024 to 2026. Under this framework Japanese research institutions are able to expand open access publishing at a pace suited to their individual circumstances while maintaining access to scholarly journals.

From 2027, researchers at participating institutions will be able to publish open access in eligible Core Hybrid journals, subject to the terms of the agreement and without an annual cap on the number of open access articles. The decision to publish open access will rest with the researcher and the research itself, giving researchers greater flexibility in choosing open access publishing and greater certainty in meeting their funders’ and institutions’ open access requirements.             

A separate agreement applies the same approach to Cell Press. For institutions that subscribe to Cell Press Hybrid titles, reading access and open access publishing will cover the subscribed titles. The agreement will also have no annual cap on the number of open access articles and run from 2027 to 2029.

The agreement also extends eligibility for the first time beyond universities to national research and development agencies, opening participation to a substantial part of Japan’s publicly funded research base.

Japan is one of the world’s largest producers of scientific research. Wider open access publishing increases the international visibility of that research, supports collaboration across borders, and helps ensure Japanese findings inform science, practice and policy well beyond Japan. It also advances the objectives of the Japanese government’s National Policy on Promoting Open Access to Publicly Funded Scholarly Publications and Scientific Data.

The agreement follows extended discussions between OASE+ and Elsevier and reflects the findings of a survey of the needs of institutes that expressed interest in the Read and Publish agreement, as well as experience gained through the current framework.

Professor Yasuteru Shigeta of the University of Tsukuba, Chair of OASE+, said: “In 2024, OASE was established under the Japanese government’s ‘National Policy on Promoting Open Access to Publicly Funded Scholarly Publications and Scientific Data’. Through collaboration with JUSTICE, OASE has since strengthened its framework as OASE+. This enhanced structure enabled constructive negotiations with Elsevier, building upon the achievements and experience gained through the pilot proposal implemented for JUSTICE through 2026. As a result, we are pleased that researchers will be able to publish open access in Core Hybrid journals without any cap on the number of articles, and that Cell Press Hybrid journals are now also available under a Read and Publish agreement. While there should be multiple valid approaches to advancing open access, we hope that this agreement will serve as one of those pathways and help enhance the visibility of research from Japan to create positive impact.”

Gemma Hersh, Senior Vice President, Sales and Commercial Director, Primary Research, Elsevier, said: “We are delighted that this new agreement with OASE+ will enable us to further develop our long-standing partnership with the Japanese research community. We are grateful to OASE+ and the institutions that expressed interest in the agreement for the collaboration and pragmatism they brought to our discussions, and for helping to establish a framework with broader reach across Japan’s research base. Japan’s research is of global importance, and this agreement will help ensure more of it is openly available to researchers around the world.”

Further information is available from OASE+ and on Elsevier’s open access agreements page.

Notes to editors

A Read and Publish agreement combines, in a single contract, the subscription fees research institutions paid publishers for access to scholarly articles with the fees for publishing articles open access (article publishing charges, or APCs).

Core Hybrid journals are subscription-based journals that also give authors the option to publish individual articles open access. Under the 2027 to 2029 agreement, open access publishing in eligible Core Hybrid journals is available without an annual open access publishing limit.

Cell Press Hybrid journals are subscription-based Cell Press journals that also give authors the option to publish individual articles open access. A companion agreement covering 2027 to 2029 applies to Cell Press Hybrid journals, under which reading access and open access publishing are aligned to the Cell Press Hybrid journals an institution subscribes to, without an annual open access publishing limit.

Institutions that have expressed interest will not necessarily enter into the agreement immediately. Each institution reviews the terms and decides independently whether to participate, and contract commencement dates will vary. Institutions wishing to participate must submit an expression of interest through OASE+. As of October 21, 167 institutions have expressed interest in the agreement with Elsevier.

About OASE+

OASE+ (Open Access for Scholarly Empowerment +) is a team supported by the Japanese government working to establish a collective bargaining framework, led by universities and other research institutions, for negotiations with academic publishers. Through discussions with global academic publishers, OASE+ aims to contribute to the realization of the Japanese government’s National Policy on Promoting Open Access to Publicly Funded Scholarly Publications and Scientific Data.

OASE+ succeeds the activities of OASE, which was established in 2024, and operates as a joint initiative involving the Japan Alliance of University Library Consortia for E-Resources (JUSTICE) and OASE to promote open access to scholarly publications. For more information, visit the OASE+ website.

About Elsevier

Elsevier is a global leader in advanced information and decision support. For over a century, we have been helping advance science and healthcare to advance human progress. We support academic and corporate research communities, doctors, nurses, future healthcare professionals, and educators across 170 countries in their vital work. We help impact makers achieve better outcomes with research and clinical-grade solutions built on the world’s leading evidence-based scientific and medical content, precision AI, and expert human assessment. We champion inclusion and sustainability, working with the communities that we serve. The Elsevier Foundation supports research and health partnerships around the world.

Elsevier is part of RELX, a global provider of information-based analytics and decision tools for professional and business customers. For more information, visit www.elsevier.com and follow us on social media @elsevierconnect.

 

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uSMART and PIVOT Fintech Introduce GlobalSave Portfolios Balanced Strategy on FollowSmart

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SINGAPORE, Oct. 26, 2026 /PRNewswire/ — uSMART Securities (Singapore) Pte. Ltd. (“uSMART”) has announced the addition of the PIVOT- GlobalSave Portfolios Balanced Strategy to its FollowSmart platform. Managed by PIVOT Fintech Pte. Ltd. (“PIVOT”), the strategy is being made available through uSMART’s digital platform as part of the companies’ collaboration to provide investors with access to professionally managed investment strategies. Investors can find information about available strategies via the uSMART App at uSMART Securities. 

Streamlining Operations for Fund Management Companies

Offering professionally managed investment strategies to a wider investor base can involve significant technology, operational and client servicing requirements. FollowSmart provides a digital workflow supporting account onboarding, trade implementation, position monitoring, valuation and client reporting. The platform is designed to help investment managers handle these operational processes while focusing on portfolio management.

Empowering Investors with a Digital Marketplace

For individual investors, FollowSmart provides a digital platform for exploring professionally managed investment strategies. Available strategies span different asset classes, global markets and risk profiles. Users can review information such as investment philosophy, historical performance and the credentials of the management team, and monitor their portfolios over time. These features may help investors assess which available strategies are relevant to their own objectives and circumstances.

The PIVOT- GlobalSave Portfolios Balanced Strategy

uSMART is acting as an authorized distributor of the PIVOT- GlobalSave Portfolios Balanced Strategy, which is managed by MAS-regulated PIVOT Fintech. The investment team is led by Victor Lye. The strategy uses a quantitative investment approach informed by Modern Portfolio Theory (MPT). It invests in U.S.-listed ETFs across equities, fixed income, commodities and real estate to build globally diversified portfolios. Asset allocation weights are adjusted in response to macroeconomic trends, with the objective of balancing expected returns and risk for medium- to long-term investors.

Expanding the FollowSmart Ecosystem

The addition of PIVOT Fintech is part of uSMART’s ongoing development of the FollowSmart platform and its network of investment managers. Other strategies recently added to the platform include the Global Quantitative Core Growth Strategy by Sunova Capital Management and the JMC Absolute Return Strategy by JMC Capital Asset Management. Together, these offerings provide investors with access to a range of professionally managed investment approaches.

About uSMART Securities (Singapore) Pte Ltd – uSMART Securities (Singapore) Pte Ltd, established on March 22, 2021, is the Singapore entity under uSMART Group (uSmart Holding Ltd.). The company holds a Capital Markets Services (CMS) Licence (Licence No. CMS101161) regulated by the Monetary Authority of Singapore (MAS). Based in Singapore, it provides financial services through the uSMART platform. Its products include US, Hong Kong, Singapore, Japan and UK stocks, options, futures, ETFs, funds, Contracts for Difference (CFDs) and forex products. Its services include trading tools, client account services, risk management arrangements and segregated client fund accounts.

About PIVOT Fintech – PIVOT Fintech Pte. Ltd. (UEN 201716150D) holds a Capital Markets Services Licence (CMS100806) regulated by the Monetary Authority of Singapore and serves as the Investment Manager of the Strategy. PIVOT’s investment team is led by its founder, Victor Lye, who has over 35 years of senior leadership experience across wealth management, insurance, fintech, and artificial intelligence. He holds a First-Class Honours Degree in Economics and Accounting from the University of Adelaide and is a Chartered Financial Analyst (CFA) and Certified Financial Planner (CFP).

Risk Disclaimer – Investment involves risks. Past performance is not indicative of future performance. Investors should carefully consider their investment objectives, financial situation and risk tolerance before making any investment decision. This material is provided for information and reference purposes only and does not constitute an offer, solicitation, recommendation or investment advice. This advertisement has not been reviewed by the Monetary Authority of Singapore.

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SOURCE uSMART Securities (Singapore) Pte Ltd

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FFR to Hold Listing Ceremony and Investor Day on October 26; FFAI Announces Rescheduling of YT Jia’s Investor Weekly Report to October 26

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Faraday Future announced that this week’s Investor Weekly Report from FF Founder and Global CEO YT Jia has been rescheduled to October 26.FF EAI Robotics Ecosystem Inc. (NASDAQ: FFR) will hold its Listing Ceremony and Investor Day on October 26.FFR management will outline the company’s future strategic direction and business plans and engage with investors in attendance.The full event video will be available at 5:00 p.m. ET on October 26 at: https://www.ff.com/us/

LOS ANGELES, Oct. 25, 2026 /PRNewswire/ — FF EAI Robotics Ecosystem Inc. (NASDAQ: FFR) (“FFR” or the “Company”), a U.S.-listed Embodied AI (“EAI“) robotics ecosystem company, today highlighted an update from Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) (“Faraday Future” or “FF“) that this week’s Investor Weekly Report from FF Founder and Global CEO YT Jia has been rescheduled to October 26.

FF EAI Robotics Ecosystem Inc. (NASDAQ: FFR) will hold its Listing Ceremony and Investor Day on October 26, 2026. During the event, FFR management will outline the company’s future strategic direction and business plans and engage with investors in attendance.

The full event video will be available at 5:00 p.m. ET on October 26 at: https://www.ff.com/us/

About FF EAI Robotics Ecosystem Inc.  

FF EAI Robotics Ecosystem Inc. (NASDAQ: FFR) (renamed from AIxCrypto Holdings, Inc. and AIXC, effective September 30, 2026) is a U.S.-based Embodied AI (EAI) robotics company that is in the process of acquiring the FF EAI Robotics business. Upon completion of the acquisition, the Company will focus on the research and development, manufacturing, commercialization, and deployment of intelligent robotic technologies, products, and industry solutions.    

The Company is committed to building a “Four-Core Full-Stack” AI ecosystem covering the full lifecycle of robotics, consisting of EAI Brain & Developer Platform, EAI Devices, Industry Productivity Solutions, and EAI Data Factory. Guided by the technology and product philosophy of “One Brain, Multi-forms, Multi-capabilities,” the Company aims to empower humanoid, biomimetic, and other robotic form factors through a unified EAI Brain, while continuously expanding their multi-task and multi-scenario capabilities. The ecosystem is designed to support the full robotics lifecycle, including R&D, deployment, data collection and training, operations, and commercial applications.    

The FF EAI Robotics business has already achieved commercial deliveries of humanoid and biomimetic robotic products. Through its multi-form-factor robotic products, EAI technology platform, closed-loop data capabilities, and industry solutions, the business continues to advance the scaled adoption of robotics across real-world applications. The Company also operates RoboShare, a robot-sharing and services platform designed to connect robotic assets, service capabilities, customer demand, and ecosystem partners, further strengthening its robotics commercialization and service ecosystem.   

For more information, visit www.ff.com.   

ABOUT FARADAY FUTURE

Founded in 2014, Faraday Future (FF) is a U.S.-based Physical AI ecosystem company dedicated to reshaping the future of robotics and mobility solutions through AI innovation and technologies. FF focuses on two major product strategies within the Embodied AI (EAI) robotics business: EAI humanoid and bionic robots, and EAI automotive-focused robots. By building a “Four-Core Full-Stack AI” ecosystem of EAI Brain and Developer Platform, EAI Devices, Industry Productivity Solutions and EAI Data Factory, FF aims to create an evolutionary flywheel: scaled device delivery, data collection and training, continuous evolution of the EAI Brain, stronger product capability, and even larger-scale delivery and deployment. Through this flywheel, FF seeks to maximize its commercial value and lead to the advancement of Physical AI. For more information, please visit Faraday Future’s official website: https://www.ff.com/

FFR Forward-Looking Statements 

This communication, including any presentation, press release, investor materials or other document of which it forms a part (this “Communication”), contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended, and other securities laws, regarding FF EAI Robotics Ecosystem Inc. (“FFR,” the “Company,” “us,” “our,” or “we”) and our industry. All statements, whether written or oral, other than statements of historical fact, including any financial projections and any statements regarding future events, our strategy, our transition to robotics operations, our plans for RoboShare, our digital asset disposition plans, the proposed acquisition of the FF EAI Robotics business, the projections referenced in this communication, our name and ticker change, any related financing, and the anticipated benefits and timing of the foregoing, our objectives, expectations, or anticipated actions or results, are forward-looking statements. You can often identify forward-looking statements by words such as “may,” “might,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “goal,” “objective,” “seeks,” “likely,” or “continue,” or the negative of these terms or other similar expressions; the absence of these words does not mean a statement is not forward-looking. These statements reflect our current expectations and projections about future events as of the date of this Communication and are necessarily based on estimates and assumptions that, while considered reasonable by management, are inherently uncertain. FFR can give no assurance that such forward-looking statements or financial projections will prove to be correct.

Actual results may differ materially from those expressed or implied by these forward-looking statements as a result of numerous risks and uncertainties, both general and specific, including, but not limited to: 

The proposed acquisition transaction and PIPE. The definitive agreements may be terminated in accordance with their terms, and the proposed transactions may not be completed on the terms described or at all; the conditions to closing, including the completion of FFAI’s internal restructuring of the robotics business, the execution of key employee agreements and other customary conditions, and the parties’ ability to satisfy them; the risk that the stockholder approval required under Nasdaq listing rules for the conversion of the preferred stock issued as consideration is not obtained or is delayed, and the effect of the conversion restrictions and the information statement process on the timing of conversion; the timing of the transaction and the costs of pursuing it; the issuance of a substantial number of shares as consideration and the resulting dilution to existing stockholders; the fact that the counterparty is our controlling stockholder, that it will hold a substantial majority of our outstanding shares following closing, that certain members of management serve both companies, and the conflicts of interest inherent in the transaction; the risk that the agreed valuations do not reflect the market value of our shares or of the acquired business; our dependence on the counterparty for transition, supply and support following any closing; the scope and enforceability of the non-competition and governance arrangements; the consequences of the transaction under Nasdaq listing rules, including the possibility that Nasdaq determines that the transaction requires us to satisfy initial listing requirements in connection with a business combination, change of control or change in the nature of our business; the risk that the PIPE financing, on which the transaction is not conditioned, is not completed on the anticipated terms or at all; the risk of litigation relating to the transaction; our ability to integrate and operate the acquired business; and the risk that the acquired business performs differently than anticipated. 

Projections. The projections referenced in this communication were prepared by FFAI management for the FF EAI Robotics business on a standalone basis and do not reflect our existing business, transaction-related expenses or the combined company. We have not independently verified them or adopted them as guidance. They were not prepared with a view toward public disclosure or toward compliance with the published guidelines of the Securities and Exchange Commission or the American Institute of Certified Public Accountants regarding prospective financial information, and no independent registered public accounting firm has examined, compiled or performed any procedures with respect to them, and none expresses an opinion or any other form of assurance with respect to them. The projections reflect estimates and assumptions that are inherently uncertain and subject to change, including through due diligence and the review of our special committee and its financial advisor. Actual results are likely to differ, and may differ materially. 

Liquidity, capital and going concern. Our limited cash and liquidity position and our history of operating losses and negative operating cash flow; substantial doubt regarding our ability to continue as a going concern, as described in our periodic reports; our need to obtain additional financing on acceptable terms or at all, and the substantial dilution to existing stockholders that additional financing may cause, including any financing completed in connection with the proposed transaction, which may not be completed or may be on less favorable terms than anticipated; our ability to fund operations pending and following the disposition of our digital asset positions; and our ability to satisfy the continued listing requirements of The Nasdaq Stock Market, including stockholders’ equity, minimum bid price and other applicable standards. 

Our strategic transition and the disposition of digital assets. Risks associated with a fundamental shift in our business strategy and the redeployment of resources from a digital asset treasury strategy to robotics operations; our ability to execute the disposition of our digital asset positions in an orderly manner and on acceptable terms; the risk that amounts realized on disposition are materially less than carrying value as a result of price volatility, market depth, execution timing, custody or transfer constraints, or other limitations; tax, accounting and regulatory consequences of the dispositions; the continued volatility and regulatory uncertainty associated with digital assets and cryptocurrencies during the wind-down period; the concentration of a substantial portion of our assets in a single equity investment, including an investment in a related party, and the illiquidity, valuation uncertainty, holding-period and transfer restrictions associated with that investment; and risks arising from our relationships and agreements with related parties and significant stockholders.  

Our robotics operations business. Our limited operating history in robotics operations and commercialization and the absence of a meaningful revenue history; the early stage of RoboShare and the risk that customer demand, repeat demand, pricing, utilization or unit economics do not develop as anticipated; our dependence on a small number of customers, on a single initial geographic market, and on individual events or engagements, and the risk that the loss of, or a change in the terms of, any such relationship has a disproportionate effect; our dependence on third-party robot owners, operators, suppliers, original equipment manufacturers and local partners, and on their willingness to make robots available on our platform; risks relating to the availability, cost, quality, maintenance, transport, insurance and technological obsolescence of robots and related equipment, and to supply chains, tariffs and trade measures affecting them; and our ability to expand into additional markets and to attract and retain participants on both sides of our marketplace. 

Operations, safety and liability. Risks of property damage, personal injury or death arising from the operation of humanoid robots, quadrupeds and other autonomous or semi-autonomous machines in proximity to performers, employees, guests and the public, including at live events and in uncontrolled environments; product liability, premises liability, negligence and related claims and the adequacy, scope, availability and cost of our insurance coverage and of contractual indemnities from customers, owners and suppliers; the allocation of responsibility among us, robot owners, venues, event producers and customers; permitting, licensing, occupational safety and event-specific regulatory requirements; and the reputational consequences of any safety incident. 

Technology, data and intellectual property. Systems, network, telecommunications or service disruptions, failures, defects or cyber-attacks; the performance, reliability and autonomy limitations of robotic systems and of the software, models and networks that support them; our collection, use, storage, transmission and protection of personal information, including images and any biometric or biometric-adjacent data captured in the course of robot deployments, and evolving privacy, biometric and artificial intelligence laws and regulations across the jurisdictions in which we operate or intend to operate; our ability to obtain, maintain, protect and enforce our intellectual property rights and to defend against third-party claims of infringement or misappropriation; and our reliance on third-party technology, platforms and licenses. 

Legal, regulatory and general. The regulated industries and jurisdictions in which we operate; current or future laws or regulations and new interpretations of existing laws or regulations, including those applicable to digital assets, robotics, autonomous systems, consumer protection, advertising and endorsements; the risk that our marketplace arrangements, or the manner in which they are described, are characterized differently than we intend by regulators or courts; the failure of counterparties to perform their contractual obligations; litigation, regulatory inquiries, investigations and enforcement actions, and their costs and outcomes; business, economic, market and capital-market conditions; competition in our industry; changes in market demand for, and the pricing of, our products and services; our ability to define, design and release new products and services in a timely manner that meet customer needs; our ability to attract, retain and motivate qualified personnel, including key management; our ability to manage our growth and our transition; and our ability to maintain effective internal control over financial reporting and disclosure controls and procedures. 

This list of factors is not exhaustive. Additional risks and uncertainties are described more fully in our filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2025, our Quarterly Reports on Form 10-Q, and our subsequent filings, which are available on the SEC’s website at www.sec.gov. Investors are urged to review the liquidity, capital resources and going concern disclosures contained in those reports.  

The forward-looking statements in this Communication speak only as of the date hereof. Except as required by law, neither FFR nor any other person undertakes any obligation to update or revise any forward-looking statement or financial projection set out herein, whether as a result of new information, future events or otherwise. This Communication is provided for informational purposes only, does not constitute an offer to sell or the solicitation of an offer to buy any security, and does not constitute investment, tax or legal advice or any investment recommendation, and does not take into account the investment objectives or financial situation of any person. FFR reserves the right to amend or replace the information contained herein, in whole or in part, at any time, and undertakes no obligation to notify any recipient thereof. Readers are cautioned not to place undue reliance on these forward-looking statements. This caution is made under, and these forward-looking statements are intended to be covered by, the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.

FFAI FORWARD LOOKING STATEMENTS 

Important factors that may affect actual results or outcomes include, among others: the Company’s ability to continue as a going concern and improve its liquidity and financial position; the Company’s ability to pay its outstanding obligations, which it currently lacks; the availability of sufficient share capital to meet its current obligations and execute on its strategy; the willingness of convertible debt investors to fund the Company; demand for the Company’s robotics products; competition in the robotics industry, which includes companies with far superior experience, funding and name recognition; the ability of the Company to build an EAI education ecosystem that serves both the B2C consumer market and the B2B institutional education market; the acceptance by teachers and students of the Company’s robotics products in the education market; the ability of the Company to expand into additional markets for its robotics products; the Company’s reliance on a single OEM for most of its robotics products; the Company’s reliance on Chinese OEMs for all of its robotics products; the possibility of the federal government banning imports of Chinese robotics products; the Company’s ability to get the planned robotics products to comply with all applicable U.S. rules and regulations; the ability of the robotics OEM to timely supply robotics to the Company; tariff uncertainty for imported products, particularly from China; the ability of the Company to close its transaction with FF EAI Robotics Ecosystem Inc. (FFR) for the sale of its robotics business; demand from automobile dealers for robotics products; the Company’s ability to homologate FX vehicles for sale; the Company’s ability to secure the necessary funding to execute on the FX strategy, which is substantial; the Company’s ability to secure an occupancy certificate covering all of its Hanford facility; the Company’s ability to remediate its material weaknesses in internal control over financial reporting and the risks related to the restatement of previously issued consolidated financial statements; the Company’s limited operating history and the significant barriers to growth it faces; the Company’s history of substantial losses and expectation of continued losses; the success of the Company’s payroll expense reduction plan; the Company’s ability to execute on its plans to develop and market its vehicles and the timing of these development programs; the Company’s ability to execute on its plans to enter the robotaxi and cybercab industries; the Company’s estimates of the size of the markets for its vehicles and cost to bring those vehicles to market; the rate and degree of market acceptance of the Company’s vehicles; the Company’s ability to cover future warranty claims; the success of other competing manufacturers; the performance and security of the Company’s vehicles; current and potential litigation involving the Company; the Company’s ability to receive funds from, satisfy the conditions precedent of and close on the various financings described elsewhere by the Company; the result of future financing efforts, the failure of any of which could result in the Company seeking protection under the Bankruptcy Code; the Company’s indebtedness; the Company’s ability to use its “at-the-market” program; insurance coverage; general economic and market conditions impacting demand for the Company’s products; potential negative impacts of a reverse stock split; potential cost, headcount and salary reduction actions may not be sufficient or may not achieve their expected results; circumstances outside of the Company’s control, such as natural disasters, climate change, health epidemics and pandemics, terrorist attacks, and civil unrest; risks related to the Company’s operations in China; the success of the Company’s remedial measures taken in response to the Special Committee findings; the Company’s dependence on its suppliers and contract manufacturer; the Company’s ability to develop and protect its technologies; the Company’s ability to protect against cybersecurity risks; and the ability of the Company to attract and retain employees, any adverse developments in existing legal proceedings or the initiation of new legal proceedings; the volatility of the Company’s stock price; the ability of the Company to maintain its stock price above $1.00; and the ability of the Company to maintain compliance with Nasdaq regulations for continued listing. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the Company’s Form 10-Q for the quarter ended June 30, 2026, filed with the SEC on August 13, 2026; the quarter ended March 31, 2026, filed with the SEC on May 14, 2026; and Form 10-K filed with the SEC on March 31, 2026, and other documents filed by the Company from time to time with the SEC.  

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SOURCE FF EAI Robotics Ecosystem Inc.

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