CommScope Holding Company, Inc.

Vistance Networks continuing operations net sales were $320 million, down $4 million or 1% year over year. Adjusted EPS was $0.12 versus $0.13 in the second quarter of 2025. Aurora Networks net sales were $319 million and adjusted EBITDA was $46 million, down 43% year over year; Vistance Networks including Ruckus adjusted EBITDA was $76 million, down 40%. The company ended the quarter with $152 million of cash on hand and no outstanding debt. For the full year, Aurora adjusted EBITDA guidance is now $200 million to $225 million, down $25 million from prior expectations. Management said memory chip issues are expected to impact 2026 by approximately $40 million and stranded G&A costs by approximately $20 million. The company closed the Ruckus sale for $1.846 billion, expects about $1.75 billion in net proceeds, and approved a $5 per-share special distribution, or $1.15 billion, to be paid by the end of August. Management also expects to end 2026 with $700 million to $750 million of cash and receive a $160 million tax refund in the second half of 2027.

Chuck Treadway framed the quarter around the strategic reset following the Ruckus divestiture, emphasizing that the sale unlocked significant value and leaves the company with substantial cash and an unlevered balance sheet. He said Vistance will focus on Aurora, especially the DOCSIS 4.0 upgrade cycle, while also investing in non-DOCSIS areas such as PON, vBNG, and security solutions. His tone was optimistic and opportunistic, but disciplined on capital allocation, with repeated references to organic investment, selective acquisitions, and potential buybacks.

Kyle Lorentzen focused on the financial drag from memory chips, legacy license declines, and stranded costs. He said second-quarter cash flow from operations was a use of $73 million and free cash flow was a use of $75 million, and that the company ended the quarter with $152 million of cash, above plan, plus no debt. He also quantified the outlook impacts: approximately $40 million from memory chip issues in 2026, approximately $20 million from stranded costs, and a lowered full-year Aurora EBITDA guide of $200 million to $225 million; after the Ruckus sale and special distribution, he expects year-end 2026 cash of $700 million to $750 million and a total of about $850 million to $900 million of cash by the end of 2027 before 2027 cash generation.

Analysts asked for more detail on customer concentration and the revenue mix across legacy, DOCSIS 4.0, video, PON, and PKI. Management said the top 3 customers represent about 70% of revenue, about the same as last year, and that legacy revenue is about 15% of Aurora revenue while DOCSIS 4.0 products are about 70%. Another question focused on product strategy outside DOCSIS, and management said it will invest in PON, PKI, and vBNG because those areas were underfocused while the company was dealing with leverage and divestitures. On customer upgrade delays, management said the issue is more customer-specific timing and technology-choice decisions than a broad demand problem.