HARMONIC INC. Segments Disclosure
NOTE 13: SEGMENT INFORMATION, GEOGRAPHIC INFORMATION AND CUSTOMER CONCENTRATION
Segment Information
Historically, the Company had been managed and operated under two reportable segments: Broadband and Video. As a result of the separation and disposition (as defined in Note 3, Discontinued Operations) of the Video segment, the Company’s continuing operations now consist of a reportable segment, Broadband. The , who is the Company’s Chief Operating Decision Maker (“CODM”), now evaluates the performance of the Company and makes decisions regarding the allocation of resources based on the Company’s consolidated results. Our CODM does not evaluate operating results using asset or liability information.
The following table is a reconciliation of the Company's measure of segment profit or loss, significant segment expenses and other segment items:
|
Year Ended December 31, |
|||||||
(in thousands) |
2025 |
|
2024 |
|
2023 |
|||
Total net revenue |
$ |
360,523 |
|
$ |
488,200 |
|
$ |
388,482 |
Less significant expenses and other segment items: |
|
|
|
|
|
|
|
|
Cost of revenue |
|
184,817 |
|
|
247,588 |
|
|
209,384 |
Research and development expense |
|
71,575 |
|
|
68,115 |
|
|
66,092 |
Selling, general and administrative |
|
65,458 |
|
|
64,808 |
|
|
66,435 |
Segment operating income |
|
38,673 |
|
|
107,689 |
|
|
46,571 |
Stock-based compensation |
|
(21,641) |
|
|
(19,325) |
|
|
(16,419) |
Restructuring and related charges |
|
(1,315) |
|
|
(2,741) |
|
|
(123) |
Asset impairment and related charges |
|
(1,637) |
|
|
(10,889) |
|
|
— |
Segment income from operations |
|
14,080 |
|
|
74,734 |
|
|
30,029 |
Non-operating expense, net |
|
(5,219) |
|
|
(3,198) |
|
|
(2,184) |
Income from continuing operations before income taxes |
$ |
8,861 |
|
$ |
71,536 |
|
$ |
27,845 |
Together with stock-based compensation, the Company does not allocate restructuring and related charges, lease-related and other charges, asset impairment charges and other non-recurring expenses to the operating income of its reportable segment because management does not include this information in the measurement of the performance of the operating segment.
Disaggregation of Revenue
The following table provides a summary of total revenues disaggregated by type:
|
Year Ended December 31, |
|||||||
(in thousands) |
2025 |
|
2024 |
|
2023 |
|||
Product sales |
$ |
267,048 |
|
$ |
410,939 |
|
$ |
298,559 |
Professional services |
|
35,739 |
|
|
22,856 |
|
|
35,470 |
Total Appliance and integration |
|
302,787 |
|
|
433,795 |
|
|
334,029 |
Total SaaS and service |
|
57,736 |
|
|
54,405 |
|
|
54,453 |
Total revenue |
$ |
360,523 |
|
$ |
488,200 |
|
$ |
388,482 |
The following table provides a summary of total net revenues by geographic region:
Net revenue: |
Year Ended December 31, |
|||||||
(in thousands) |
2025 |
|
2024 |
|
2023 |
|||
United States (1) |
$ |
277,049 |
|
$ |
421,679 |
|
$ |
307,614 |
Other countries (1) |
|
83,474 |
|
|
66,521 |
|
|
80,868 |
Total |
$ |
360,523 |
|
$ |
488,200 |
|
$ |
388,482 |
|
|
|
|
|
|
|
|
|
Americas |
$ |
320,570 |
|
$ |
449,346 |
|
$ |
335,154 |
EMEA |
|
33,894 |
|
|
36,420 |
|
|
50,994 |
APAC |
|
6,059 |
|
|
2,434 |
|
|
2,334 |
Total |
$ |
360,523 |
|
$ |
488,200 |
|
$ |
388,482 |
(1) Revenue is attributed to countries based on the location of the customer.
No single country other than the United States, accounted for 10% or more of the Company’s net revenues for the years ended December 31, 2025, 2024 and 2023.
Property and equipment, net: |
|
|
|
As of December 31, |
||||
(in thousands) |
|
|
|
2025 |
|
2024 |
||
United States |
|
|
|
$ |
14,817 |
|
$ |
15,476 |
Israel |
|
|
|
|
5,926 |
|
|
7,257 |
France |
|
|
|
|
4,656 |
|
|
2,182 |
Other countries |
|
|
|
|
249 |
|
|
247 |
Total |
|
|
|
$ |
25,648 |
|
$ |
25,162 |
Customer Concentration
Net revenue: |
Year Ended December 31, |
|||||||
(in thousands) |
2025 |
|
2024 |
|
2023 |
|||
Top 2 customers (2) |
$ |
221,787 |
|
$ |
393,234 |
|
$ |
284,178 |
Rest-of-world |
|
138,736 |
|
|
94,966 |
|
|
104,304 |
Total |
$ |
360,523 |
|
$ |
488,200 |
|
$ |
388,482 |
(2) Based on largest subscriber footprint
One customer accounted for 54% of the Company’s total net revenues during the years ended December 31, 2025. Two customers accounted for 57% and 24% of the Company’s total net revenues during the year ended December 31, 2024, respectively. One customer accounted for 64% of the Company’s total net revenues during the years ended December 31, 2023.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.