📊 HLIT Key Takeaways
Is Harmonic Inc.. (HLIT) a Good Investment?
Harmonic exhibits strong financial fortitude with exceptional balance sheet health, excellent liquidity (2.26x current ratio), and robust free cash flow generation (24.9% FCF margin), but this is severely undermined by a devastating 26.2% YoY revenue decline and a 215.2% EPS collapse, indicating serious operational deterioration that warrants caution despite financial stability.
Harmonic shows strong liquidity, low leverage, and robust free cash flow despite a GAAP net loss, supported by solid gross margins. However, a steep revenue decline and negative net margin/ROE indicate weakening demand and thin operating leverage. Stabilization of sales and margin expansion are needed to validate the cash flow strength and return to durable profitability.
Why Buy Harmonic Inc.. Stock? HLIT Key Strengths
- Exceptional balance sheet strength with only 0.31x debt-to-equity ratio and $109M cash position
- Outstanding free cash flow generation of $30.3M (24.9% of revenue) with minimal capex requirements ($1.4M), indicating asset-light, efficient operations
- Fortress liquidity with 2.26x current ratio and 2.03x quick ratio, providing significant financial flexibility
- Very strong interest coverage of 28.3x indicating zero financial distress risk despite existing debt
- Stable gross margins at 52.3% and operating margins at 16.8% despite revenue headwinds
- Strong liquidity and low leverage (current ratio 2.5x, D/E 0.29x)
- Robust free cash flow and high interest coverage
- Healthy gross margin (48.5%) with positive operating income
HLIT Stock Risks: Harmonic Inc.. Investment Risks
- Severe revenue contraction of 26.2% YoY signals fundamental business challenges, market share loss, or industry headwinds with unknown trajectory
- Catastrophic 215.2% EPS decline indicates earnings per share turned negative or near-zero, suggesting structural profitability deterioration beyond revenue loss
- Abysmal return metrics (ROE 2.1%, ROA 1.0%) indicate capital is not being deployed efficiently despite balance sheet strength
- Unclear causation of revenue decline with no evidence of turnaround strategy or market recovery signals in available data
- Elevated insider activity (25 Form 4 filings in 90 days) may indicate uncertainty or shareholder concerns regarding company direction
- Sharp revenue contraction (-26.2% YoY) signaling demand pressure
- Negative net margin and ROE indicating weak profitability
- FCF sustainability risk if driven by working-capital unwind; thin operating margin (3.9%)
Key Metrics to Watch
- Quarterly revenue trend to identify stabilization or continued contraction in upcoming periods
- Gross margin sustainability under current business pressures and pricing dynamics
- Free cash flow conversion and cash depletion rate if revenue declines persist
- Return on equity improvement trajectory and management's capital allocation strategy
- Revenue YoY growth
- Operating margin
Harmonic Inc.. (HLIT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 24.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.26x current ratio provides a solid financial cushion.
HLIT Profit Margin, ROE & Profitability Analysis
HLIT vs Telecom Sector: How Harmonic Inc.. Compares
How Harmonic Inc.. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Harmonic Inc.. Stock Overvalued? HLIT Valuation Analysis 2026
Based on fundamental analysis, Harmonic Inc.. has mixed fundamental signals relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Harmonic Inc.. Balance Sheet: HLIT Debt, Cash & Liquidity
HLIT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Harmonic Inc..'s revenue has remained relatively flat over the 5-year period, with a 4% decline. The most recent EPS of $0.72 reflects profitable operations.
HLIT Revenue Growth, EPS Growth & YoY Performance
HLIT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $142.4M | $1.1M | $0.01 |
| Q2 2025 | $138.0M | $2.9M | $0.03 |
| Q1 2025 | $84.9M | $5.9M | $0.05 |
| Q3 2024 | $127.2M | $153.0K | $0.00 |
| Q2 2024 | $138.7M | $1.6M | $0.01 |
| Q1 2024 | $122.1M | $5.1M | $0.04 |
| Q3 2023 | $127.2M | $153.0K | $0.00 |
| Q2 2023 | $156.0M | $1.6M | $0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Harmonic Inc.. Dividends, Buybacks & Capital Allocation
HLIT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Harmonic Inc.. (CIK: 0000851310)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HLIT
What is the AI rating for HLIT?
Harmonic Inc.. (HLIT) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HLIT's key strengths?
Claude: Exceptional balance sheet strength with only 0.31x debt-to-equity ratio and $109M cash position. Outstanding free cash flow generation of $30.3M (24.9% of revenue) with minimal capex requirements ($1.4M), indicating asset-light, efficient operations. ChatGPT: Strong liquidity and low leverage (current ratio 2.5x, D/E 0.29x). Robust free cash flow and high interest coverage.
What are the risks of investing in HLIT?
Claude: Severe revenue contraction of 26.2% YoY signals fundamental business challenges, market share loss, or industry headwinds with unknown trajectory. Catastrophic 215.2% EPS decline indicates earnings per share turned negative or near-zero, suggesting structural profitability deterioration beyond revenue loss. ChatGPT: Sharp revenue contraction (-26.2% YoY) signaling demand pressure. Negative net margin and ROE indicating weak profitability.
What is HLIT's revenue and growth?
Harmonic Inc.. reported revenue of $121.7M.
Does HLIT pay dividends?
Harmonic Inc.. does not currently pay dividends.
Where can I find HLIT SEC filings?
Official SEC filings for Harmonic Inc.. (CIK: 0000851310) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HLIT's EPS?
Harmonic Inc.. has a diluted EPS of $0.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HLIT a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Harmonic Inc.. has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HLIT stock overvalued or undervalued?
Valuation metrics for HLIT: ROE of 2.1% (sector avg: 15%), net margin of 6.0% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
Should I buy HLIT stock in 2026?
Our dual AI analysis gives Harmonic Inc.. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HLIT's free cash flow?
Harmonic Inc..'s operating cash flow is $31.7M, with capital expenditures of $1.4M. FCF margin is 24.9%.
How does HLIT compare to other Telecom stocks?
Vs Telecom sector averages: Net margin 6.0% (avg: 14%), ROE 2.1% (avg: 15%), current ratio 2.26 (avg: 1).