Vecima Networks Inc.

Q4 consolidated revenue was CAD 91 million, up 36% year over year and 45% sequentially. Adjusted EBITDA was CAD 18.9 million, more than 3x higher than a year ago, with adjusted EBITDA margin of 20.8%. Gross margin was 45.4% versus 26.3% in Q4 fiscal 2025; adjusted gross margin was 45.0% versus 36.7%. Operating income was CAD 12.3 million versus a loss of CAD 17.1 million last year. Net income was CAD 5.4 million, or CAD 0.22 per share, versus a net loss of CAD 13.3 million, or CAD 0.55 per share, last year; adjusted EPS was CAD 0.21 versus a loss of CAD 0.06. VBS revenue was CAD 80.1 million, up 38% year over year, and CDS revenue was CAD 10.8 million, up 26%. Entra revenue was CAD 77.3 million, up 42% year over year. Operating cash flow was CAD 24.8 million. Working capital was CAD 62.9 million, up from CAD 51.2 million a year ago, and net debt was CAD 40.7 million, down from CAD 54.4 million at the end of Q3. Guidance was raised: calendar 2026 revenue growth is now expected at 27%-32%, and fiscal 2027 revenue growth at 30%-35%. Management also expects adjusted EBITDA margin of approximately 20% in both calendar 2026 and fiscal 2027.

Sumit Kumar framed Q4 as a breakthrough quarter and said the results are only the early returns from Vecima's long-term strategy in DAA and fiber access. He emphasized broadening customer adoption, with 150 broadband engagements by year-end, seven vCMTS wins, and growing traction in Terrace IQ and other new products. His tone was confident and expansive, stressing that the industry transition to multi-gig broadband is still early and that Vecima is well positioned for several years of growth.

Judd Schmid highlighted the financial inflection: revenue rose to CAD 91 million, gross margin improved to 45.4%, operating income reached CAD 12.3 million, and cash from operations was CAD 24.8 million. He said OPEX was CAD 29 million, down year over year, and noted that cash R&D investment was CAD 16.9 million, or 19% of revenue, while the company expects lower interest expense in 2027 as debt declines. He also said there were virtually no cash taxes in fiscal 2026, though some U.S. cash taxes could appear in fiscal 2027, and reiterated that the board approved a quarterly dividend of CAD 0.055 per share.

Analysts focused on manufacturing capacity, tariff exposure, working capital needs, BEAD, and whether growth is too dependent on a few customers. Management said production capacity is already set up for the growth outlook, with room to add more manufacturing shifts, and that tariff impacts are narrow and already mostly addressed. On BEAD, management said some contribution could show up in fiscal 2027 but likely not be material until later, while vCMTS is still early with only limited contribution expected in fiscal 2027 and more meaningful impact in fiscal 2028 and beyond.