Technology

Harmonic Announces Fourth Quarter and Fiscal 2024 Results

Published

1 year ago

February 10, 2025

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 %

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 %

Net income

$ 22

$ 53

Net income per share

$ 0.19

$ 0.45

Shares (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 %

Net income per share

$ 0.02

$ 0.08

Shares (3)

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 %

Net income per share

$ 0.43

$ 0.68

Shares (3)

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

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

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

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

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

$ 135

$ 67

$ 77

$ 71

$ 73

$ (4)

$ 4

$ (6)

$ 1

Stock-based compensation expense

—

(9)

Tax effect of non-GAAP adjustments

—

(1)

(2)

Total adjustments

—

(9)

Non-GAAP

$ 120

$ 135

$ 68

$ 78

$ 62

$ 64

$ 6

$ 14

$ 3

$ 9

As a % of revenue (GAAP)

55.8 %

57.0 %

59.2 %

54.1 %

(3.3) %

3.0 %

(5.0) %

0.7 %

As a % of revenue (Non-GAAP)

56.0 %

57.7 %

51.7 %

47.4 %

5.0 %

10.4 %

2.5 %

6.7 %

Diluted net income (loss) per share:

GAAP

$(0.05)

$0.01

Non-GAAP

$0.02

$0.08

Shares used in per share calculation:

GAAP

117.4

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

$ 645

$ 319

$ 368

$ 281

$ 292

$ 38

$ 76

$22

$53

Stock-based compensation expense

—

(34)

Tax effect of non-GAAP adjustments

—

(7)

(8)

Total adjustments

—

(34)

Non-GAAP

$ 585

$ 645

$ 321

$ 370

$ 247

$ 258

$ 74

$ 112

$51

$81

As a % of revenue (GAAP)

54.5 %

57.1 %

48.0 %

45.3 %

6.5 %

11.8 %

3.8 %

8.2 %

As a % of revenue (Non-GAAP)

54.8 %

57.3 %

42.2 %

40.0 %

12.6 %

17.4 %

8.7 %

12.6 %

Diluted net income per share:

GAAP

$0.19

$0.45

Non-GAAP

$0.43

$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

$ 13

$ (1)

$ 1

Depreciation

Segment adjusted EBITDA(2)

$ 9

$ 15

$ —

$ 2

2025 Financial Guidance

Broadband

Video

Income from operations

$ 69

$ 98

$ 5

$ 14

Depreciation

Other non-operating expenses

(2)

—

Segment adjusted EBITDA(2)

$ 77

$ 106

$ 8

$ 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)

$ 1

$ 22

$ 53

Provision for (benefit from) income taxes

—

Interest expense, net

Depreciation

EBITDA

$ (1)

$ 7

$ 49

$ 87

Adjustments

Stock-based compensation

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

$ 9

$ 17

$ 85

$ 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.

Technology

Kuaishou Technology to Report 2026 First Quarter Financial Results on May 27, 2026

Published

7 minutes ago

May 6, 2026

HONG KONG, May 6, 2026 /PRNewswire/ — Kuaishou Technology (“Kuaishou” or the “Company”; HKD Counter Stock Code: 01024 / RMB Counter Stock Code: 81024), a leading content community and social platform, today announced that it will report its unaudited consolidated first quarterly results for the three months ended March 31, 2026, after the Hong Kong market closes on Wednesday, May 27, 2026.

The Company’s management will host a conference call on Wednesday, May 27, 2026, at 7:00 PM Beijing Time (7:00 AM U.S. Eastern Time) to discuss the results.

Participants are required to pre-register for the conference call at:

Chinese Line (Mandarin):
https://s1.c-conf.com/diamondpass/10054245-xi6ksd.html

English Simultaneous Interpretation Line (listen-only mode):
https://s1.c-conf.com/diamondpass/10054246-wl3yqp.html

Participants can choose between the Chinese and English simultaneous interpretation options for pre-registration above. Please note that the English simultaneous interpretation option will be in listen-only mode. Upon registration, participants will receive an email containing conference call dial-in details, event passcode, and a unique registrant ID. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.

Additionally, live, and archived webcasts of the conference call, for both Chinese and English simultaneous interpretation, will be available on the Company’s investor relations website at https://ir.kuaishou.com.

Replays of the conference call will be available until June 3, 2026 via the following dial-in details:

Dial-in Numbers

Mainland China:

400 1209 216

Hong Kong:

800 930 639

US/Canada:

1855 883 1031

Chinese conference ID:

10054245

English simultaneous interpretation conference ID:

10054246

About Kuaishou

Kuaishou is a leading content community and social platform in China and globally, committed to becoming the most customer-obsessed company in the world. Kuaishou uses its technological backbone, powered by cutting-edge AI technology, to continuously drive innovation and product enhancements that enrich its service offerings and application scenarios, creating exceptional customer value. Through short videos and live streams on Kuaishou’s platform, users can share their lives, discover goods and services they need and showcase their talent. By partnering closely with content creators and businesses, Kuaishou provides technologies, products, and services that cater to diverse user needs across a broad spectrum of entertainment, online marketing services, e-commerce, local services, gaming, and much more. For more information, please visit https://ir.kuaishou.com.

For investor and media inquiries, please contact:

Kuaishou Technology
Investor Relations
Email: ir@kuaishou.com

View original content:https://www.prnewswire.com/news-releases/kuaishou-technology-to-report-2026-first-quarter-financial-results-on-may-27-2026-302763955.html

SOURCE Kuaishou Technology

Technology

Mox Breaks Even in Q1 2026 amid Strengthening Profitability Outlook, Launches Mox+ Wealth Solutions and Mox Invest Upgrades

Published

1 hour ago

May 6, 2026

Bringing Wealth Within Reach of all in Hong Kong

HONG KONG, May 6, 2026 /PRNewswire/ — Mox Bank Limited (“Mox” or “the Bank”), on the back of delivering a financial breakeven quarter for Q1 2026, today announced the launch of Mox+. This wealth solution is engineered for Hong Kong’s young professionals and emerging affluent and will be a driver of sustainable profitability for the Bank. Mox+ combines wealth capabilities with curated lifestyle benefits, marking Mox’s evolution from everyday banking to a comprehensive wealth partnership.

The financial achievement was driven by robust momentum across all business lines and achieving a significant milestone demonstrates the success of the accessible business model which after 5 years is now used and valued by over 750,000 customers in Hong Kong.

Barbaros Uygun, CEO of Mox, said, “Achieving financial breakeven for the first quarter of 2026 on the back of a strong 2025 set of results, shows our direction of travel. We have the momentum to drive positive change, providing wealth opportunities to all in Hong Kong and do so in a profitable manner. Our client-centric business model is proving that it is the right one for sustainable profitability.

Our digital wealth management platform serves as a trusted partner for our over 750,000 customers at every stage of life, empowering them to manage their finances with confidence and unlock new possibilities. We are entering a new chapter of growth as we continue to expand our product portfolio and wealth management offerings, with the launch of Mox+ being one such initiative.”

He continued, “To support this evolution, we are evolving into an AI-native bank, doubling our operational capacity through a strategic human-bot partnership, equipping every staff member with a personalised AI assistant to deliver even greater service and efficiency.”

Mox+ members enjoy preferential fees and charges on Mox Invest and preferential pricing on foreign exchange, enhanced deposit rates (3.5% p.a. up to HKD5 million), as well as priority customer support and early access to experiences and new products. These benefits can be gained simply by maintaining an average daily balance of HKD 600,000 or above across all deposits and investments which will lead to automatic qualification for Mox+ for the following month. The programme integrates financial advantages with lifestyle benefits—including curated dining rebates, free hotel stays, Starbucks coffee vouchers, health benefits and exclusive member experiences—reflecting Mox’s belief that wealth building should be both strategic and rewarding.

Jayant Bhatia, Chief Business Officer of Mox, commented, “At Mox, we are dedicated to establishing the financial well-being of Hongkongers. Designed and tailored for Hong Kong’s young professionals and emerging affluent segment, which is underserved in Hong Kong, Mox+ offers solutions for daily savings and preferential wealth management service fees for long-term wealth creation as well as rewarding lifestyle benefits. This is strategically significant as one of our key initiatives to drive business growth and make Wealth Within Reach for Hongkongers.”

Throughout 2025, Mox has already strengthened its product portfolio with new solutions in Mox Invest. The Mox Invest platform saw trading volumes increasing to 2.4 times and assets under management (AUM) growing to 2.6 times that of last year. More than 10% of Mox customers have opened a Mox Invest account, reflecting strong demand for its wealth solutions driven by new products and services. In 2026, we will continue our momentum in launching new and innovative products and services and are already scaling up to serve the next generation of wealth builders in Hong Kong. Having already recently launched a crypto trading service, Mox Invest is set to introduce an IPO subscription service later this year.

The Bank has clear reasons for continuing to develop wealth management products. The “Wealth Behaviours: Insights into how individuals are saving and investing” survey conducted by Mox in collaboration with Ipsos revealed that Hongkongers continue to take a conservative approach to investing, with 63% of their liquid assets kept in cash and deposits – a trend that contributes to “cash drag” and limits potential wealth growth. More than two-thirds of respondents indicated they require an average of 5.6 months to save up to their desired investment threshold and typically delay investing their savings by a further 2.75 months on average, resulting in missed opportunities for long-term wealth accumulation[1]. This survey will continue as an ongoing research initiative to deepen our understanding of Hongkonger’s wealth management behaviours and enable the Bank to develop tailored solutions that puts wealth within reach.

After Mox was amongst the first wave of banks in Asia to offer a crypto trading service, Mox Invest now further offers One Click Investments (a simplified process for buying equities based on themes such as AI, technology, amongst others), Trading Signals, and gives customers access to professional fund strategies including Signature CIO funds developed in partnership between Standard Chartered Bank CIO office and Amundi. The Signature CIO funds offer four different type of funds based on individuals’ risk appetite which could be Conservative, Income, Balanced or Growth. Customers also have options amongst a wide range of funds offered by other world-class fund houses.

A Track Record of Rapid Scale and Adoption in the Last 5 Years

Since its launch in September 2020, Mox has brought to the market more than 15 market-first products or services and achieved significant scale with over 750,000 customers, reflecting the trust and growing preference of Hong Kong consumers for a seamless digital banking experience. To date, Mox customers have driven a cumulative spend of HKD70 billion, supported by a robust volume of 176 million card transactions and approximately 2 billion Asia Miles earned through Mox Card and other banking services. Its commitment to delivering tangible value to customers is further evidenced by the HKD2 billion distributed in cash rewards.

Beyond daily spending, Mox has become central to its customers’ financial lives, facilitating approximately 50 million outward FPS transfers and more than 5 million bill payments. As a preferred companion for travelers, the Mox Card has been used over 31 million times in overseas transactions, contributing to a total of 250 million app engagements as we continue to redefine digital banking for the Hong Kong community.

To learn more about Mox, please visit: mox.com.

About Mox Bank Limited (“Mox”)
Mox is a pioneering digital bank licensed in Hong Kong, and a registered institution (CE number: BNO808) powered by Standard Chartered in partnership with PCCW, HKT and Trip.com. Launched in September 2020, Mox is reimagining banking, unlock more of life’s possibilities, and setting global benchmarks for digital banking from Hong Kong.

Mox is well on track to be the number one digital bank for cards, lending and wealth. In 2026, it was awarded as Best Pure-Play Digital Bank for CX in Hong Kong and Outstanding Digital CX in Banking App/ Platform by The Digital Banker Digital CX Awards. It was also recognised as NeoBank of the Year, Retail Banking, Hong Kong and Best Retail Banking Experience, Hong Kong by The Asset Triple A Digital Finance Awards. In 2025, Mox is ranked as the number one digital bank in Hong Kong in Neobank Ranking 2025 by The Banker, a publication by Financial Times. It was also awarded the Best Digital Bank in Hong Kong by The Asian Banker for three consecutive years, and the Digital Bank of the Year in Hong Kong by Asian Banking & Finance for two years in a row. It was also recognised as one of Asia’s Top 5 mobile banking app and the number one Hong Kong digital banking app in Sia Partners’ 2025 International Mobile Banking Benchmark. Mox Credit Card held its position as the seventh-largest credit card portfolio among all retail banks in Hong Kong[2]. Through a scalable platform, lower cost-to-serve, top-notch customer experience and the unique promise of safe, simple, smart, and fun banking, Mox has found immense affinity among Hong Kong customers: Mox app is the top-rated Hong Kong digital banking app in Apple App Store in Hong Kong[3], scoring 4.8 out of 5. Mox’s influence extends beyond Hong Kong, as shown by the company’s technology and know-how being transferred to Trust Bank in Singapore.

Join us in shaping the future of banking.

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[1] The “Wealth Behaviours: Insights into how individuals are saving and investing” study was conducted in collaboration with Ipsos and it surveyed 2,500 working adults with a monthly household income above HKD15,000 in Hong Kong between August 2025 and April 2026.

[2] According to TransUnion’s Market Insights and Intelligence Dashboard (MIID) for the period from January to December 2025.

[3] As of the period from 28 January 2025 to 5 May 2026.

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SOURCE Mox Bank Limited

Technology

UK Students Recognised in National AI Investment Challenge

Published

1 hour ago

May 6, 2026

University teams apply AI to real-world investment problems, with Lancaster University team taking the top prize.

LONDON, May 6, 2026 /PRNewswire/ — CFA Institute, the global association of investment professionals, has announced the winner of its inaugural AI Investment Challenge, with the top prize awarded to a student team from Lancaster University.

Some 28 teams from 15 universities took part in the competition.

Delivered by CFA Institute and CFA Society UK, the competition brought together students from universities across the United Kingdom to tackle real investment challenges using artificial intelligence. The focus was on practical application, responsible use, and real-world relevance.

Finalists came from Durham University, Heriot-Watt University, Lancaster University, University of Exeter, and University of Manchester.

Teams presented AI-powered solutions to a range of industry challenges, from assessing how carbon pricing affects portfolio values to analysing large volumes of company disclosures and extracting insights from company earnings calls. The winning team from Lancaster University impressed judges with its design of a Disclosure Degradation Detection System – an early-alert tool for analysts that monitors upstream exposure to disclosure risk by analysing company and supplier filings for increasingly vague, complex, or weakening language.

Peter Watkins, Head of University Relations, CFA Institute, said:

“It’s encouraging to see how quickly students can apply technical skills to real investment problems. The strongest teams combined solid analysis with a clear understanding of how AI can be used responsibly in practice. This reflects where the investment industry is heading, with professionals expected to use new technologies effectively while continuing to apply sound human judgement.”

Nick Bartlett, CFA, ASIP, Chief Executive, CFA Society UK, adds:

“It’s been great to see students from across the UK take part. Opportunities like this help people build practical skills, make connections in the industry, and gain confidence in applying what they’ve learned. Bridging that gap between education and industry is increasingly important, as the skills needed for a career in the investment profession continue to evolve.”

The winning team members from Lancaster University are Connor O’Keeffe, Ebro Dossajee, and Bradley McCann.

Connor O’Keeffe, speaking on behalf of the winning team, said:

“The CFA Institute AI Investment Challenge gave us the chance to work on a real investment problem and engage directly with industry professionals. Presenting our work and receiving feedback has been invaluable, and we’re proud to bring first place back to Lancaster. It’s been a great experience for the whole team.”

Steve Young, Professor of Accounting at Lancaster University Management School, commented:

“The AI Investment Challenge is a fabulous initiative from CFA Institute that helps students formulate and execute artificial intelligence solutions to assist investment analysis professionals, and we are thrilled that Brad, Connor, and Ebro have been able to make such a positive contribution to the competition. Congratulations to all teams involved and thank you to CFA Institute and CFA Society UK for organising such an inspiring event.”

The competition was judged on practical relevance, quality of analysis, innovation in the use of AI, responsible use of technology, and clarity of presentation. The final was judged by a panel of six investment industry professionals based in the UK.

University representatives and students can opt-in to be the first to hear about future AI Investment Challenge events via Information Waitlist.

Notes to Editors

The AI Investment Challenge was held on Thursday 30 April 2026 in London.

First, second, and third-place teams received prizes of £2,000, £1,200, and £800, respectively. In addition, all finalist team members received a CFA Program Access Scholarship and the opportunity to showcase their work on CFA Institute platforms.

More information about the AI Investment Challenge is available here: CFA Institute AI Investment Challenge.

About CFA Institute
As the global association of investment professionals, CFA Institute sets the standard for professional excellence and credentials. We champion ethical behavior in investment markets and serve as the leading source of learning and research for the investment industry. We believe in fostering an environment where investors’ interests come first, markets function at their best, and economies grow. With more than 200,000 charterholders worldwide across 160 markets, CFA Institute has 8 offices and 157 local societies. Find us at www.cfainstitute.org or follow us on LinkedIn, and subscribe on YouTube.

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