Vecima Networks Inc.

Consolidated revenue in Q2 fiscal 2026 was $73.7 million, up 3.5% year over year and 3.7% sequentially. Gross margin was 44.9%, compared with 36.4% in the prior-year quarter and 42.1% in Q1 fiscal 2026; adjusted gross margin was 46.4% versus 35.6% last year and 43.9% in Q1. Adjusted EBITDA was $10.6 million, or 14.4% of sales, and adjusted EPS was $0.04 versus an adjusted loss per share of $0.30 a year ago. Net income was $100,000, or $0 per share, versus a net loss of $7.9 million, or a $0.32 loss per share, in Q2 fiscal 2025. For the next 12 months, management expects revenue growth of 20% to 30% versus the last 12 months, adjusted EBITDA margin to break through 20%, and next-12-month adjusted EBITDA to increase 70% to 85% versus calendar 2025.

Sumit Kumar framed the quarter as an inflection point, saying Vecima is nearing a major growth phase as wide-scale DAA adoption and commercial video upgrades begin to broaden. He highlighted two major wins: expected ramp in Entra Remote PHY demand starting in Q4 from a lead Tier 1 customer, and selection of TerraceIQ by a lead North American Tier 1 for a national commercial video upgrade. His tone was notably optimistic, emphasizing that these wins, plus fiber access strength and new products like EN3400, create sustained visibility over the next 12 months and beyond.

Judd Schmid said Q2 revenue reached $73.7 million, gross margin improved to 44.9%, and operating income turned positive at $3.3 million versus a $3.4 million loss a year ago. He walked through segment trends: VBS revenue was $59.6 million, CDS revenue was $12.3 million, and Telematics revenue was $1.8 million; he also noted CDS gross margin of 65.1% and Telematics gross margin of 71.4% as signs of portfolio profitability. Operating expenses were $29.8 million, cash from operations was $6.8 million, working capital was $49.3 million, and net debt was $66.9 million; he said the company continues to focus on paying down debt and does not foresee significant OpEx increases near term. The board also approved a quarterly dividend of $0.055 per share payable March 23, 2026.

Analysts focused on what drives customers to choose GAP nodes, and management said the appeal is the platform’s modular, future-proof design, thermal efficiency, and ability to support multiple access technologies within one standard, which Vecima says it uniquely manufactures. Questions also centered on whether growth can persist beyond the lead customer upgrade cycle; management argued that ongoing segmentation, broader customer diversification, fiber expansion, and vCMTS can sustain growth after the current large program ramps. On capital allocation, management said debt reduction remains the first priority, but stronger EBITDA and lower leverage could later open the door to share repurchases or M&A.