Harmonic Inc. (HLIT): Business Model Canvas [Dec-2025 Updated]

You're looking at a company like Harmonic Inc. right in the middle of a massive pivot, shifting hard from traditional gear to software-driven virtualized broadband and cloud video. Honestly, seeing their cOS platform already supporting 37.6 million cable modems while their Video SaaS revenue hits a record $16.1 million in Q3 2025 tells a story of calculated, high-stakes transformation. If you want to see exactly how they are balancing significant R&D expenditure against major customer dependencies-like Comcast making up 43% of their Q3 revenue-you need to map out the nine building blocks of their new model. Dive into the full Business Model Canvas below to see the precise structure driving this change.

Harmonic Inc. (HLIT) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel Harmonic Inc.'s market position as of late 2025. These aren't just vendor agreements; they are foundational to their virtualized broadband and video strategy.

Expanded strategic partnership with Charter/Spectrum on cOS and DOCSIS 4.0.

Harmonic Inc. announced an expanded partnership with Spectrum on November 3, 2025, to deploy its cOS™ Virtualized CMTS (vCMTS) and advanced tools across Spectrum's entire service area, specifically including the deployment of DOCSIS 4.0 Unified Pebble-2 RPDs. This move solidifies Harmonic Inc.'s position as a supplier to the number one and number two cable operators globally. As of the Q3 2025 earnings call, Harmonic Inc.'s cOS platform was commercially deployed with 142 customers, serving 37.6 million cable modems.

The technology enables Spectrum to support DOCSIS 4.0 services, promising faster, more reliable internet with symmetrical and multi-gigabit capabilities. The platform also offers superior network visibility via an Open API for streaming telemetry.

Collaboration with Comcast on fiber-to-the-home solutions.

The ongoing collaboration with Comcast centers on expanding fiber broadband access using Harmonic Inc.'s cOS™ platform for a converged solution. Comcast is leveraging this technology to deliver multi-gigabit symmetrical broadband with low-lag. Comcast expanded its network to more than one million new locations in 2024 and planned for more than 1.2 million new locations by the end of 2025. In Q3 2025, Harmonic Inc. specifically noted Comcast is leveraging its fiber-to-the-home solutions for more than 1.2 million new locations planned in 2025.

This joint effort demonstrates how DOCSIS and fiber can coexist on the same virtualized platform. The cOS platform powers next-gen broadband services through more than 35 million customer CPE devices worldwide as of late September 2025.

Normann Engineering for European broadband deployments and technical expertise.

In Europe, Harmonic Inc. works with Normann Engineering to execute broadband rollouts. A specific milestone was announced on December 3, 2025, noting that Harmonic Inc. and Normann Engineering achieved a major milestone with 20 Broadband Deployments Across Europe.

Akamai partnership to drive growth in the Video SaaS business.

Harmonic Inc.'s Video SaaS business is significantly bolstered by its qualification of VOS360 Media SaaS and VOS360 Ad SaaS on Akamai's cloud platform. This collaboration powers Akamai Media Services Live 5 (MSL5).

The financial performance of the Video SaaS component is tracked closely:

The MSL5 platform, powered by Harmonic Inc., offers technical improvements that support this growth, including:

• Low-latency HLS delivery end-to-end of 5-7 seconds.
• Live DVR window extended from 30 minutes to 12 hours.
• Streams provisioned in just five seconds.

For context on the overall business health supporting these partnerships, Harmonic Inc.'s Q3 2025 Broadband revenue was $90.5 million, and Video revenue was $51.9 million, for a total revenue of $142.4 million.

Finance: draft Q1 2026 partnership revenue projections by next Wednesday.

Harmonic Inc. (HLIT) - Canvas Business Model: Key Activities

You're looking at the core engine of Harmonic Inc. (HLIT) operations as of late 2025, focusing on what the company actually does to create value. This isn't about the balance sheet yet; it's about the work being done day-to-day to keep the technology ahead.

Research and development (R&D) for Unified DOCSIS 4.0 and fiber solutions

Harmonic Inc. historically dedicates significant resources to R&D. For instance, Research and development expenses in 2024 were approximately $121.0 million. The company is actively driving the industry evolution, showcasing innovations that support evolutionary paths to Unified DOCSIS 4.0, which includes both Full Duplex (FDX) and Frequency Division Duplex (FDD) variants. This R&D focus supports key customer deployments, such as the first production deployment of Unified DOCSIS 4.0 with Mediacom and GCI's modernization program. Furthermore, R&D underpins the fiber business, exemplified by the collaboration with Comcast to add roughly one million new fiber passing per year using Harmonic technology.

The financial impact of R&D is also seen through tax adjustments; management expects a cumulative total reduction of approximately $50 million in cash income taxes for both 2025 and 2026 following the passage of the One Big Beautiful Bill Act and Section 174 R&D adjustments.

Continuous development of the cOS virtualized broadband platform

The cOS virtualized broadband platform is central to Harmonic Inc.'s strategy, enabling operators to manage DOCSIS 3.1, BoostD 3.1, DOCSIS 4.0, and fiber technologies from a single interface. This activity involves continuous enhancement, including the integration of new features like the cOS Central AI Assistant, which was announced in August 2025 to simplify operations. The scale of this platform's deployment is a key metric of this activity.

The platform's success is also measured by customer wins; Harmonic Inc. won six new broadband customers in Q3 2025, including two fiber customers and one international Tier 1 operator.

Software-as-a-Service (SaaS) platform operation and enhancement (VOS360)

Operation and enhancement of the Software-as-a-Service (SaaS) platform, which is part of the Video segment, is a high-growth activity. This involves running and improving the VOS360 platform for video delivery and processing. The revenue generated from this specific activity shows consistent upward momentum, which is a key focus for the company.

• Video segment revenue in Q3 2025 was $51.9 million.
• SaaS revenue specifically reached $16.1 million in Q3 2025.
• This Q3 2025 SaaS revenue represented a 13.6% year-over-year increase.
• In Q2 2025, Video SaaS revenue hit a record of $15.4 million.
• Growth in this area is particularly strong in sports streaming.

The Video segment's Non-GAAP gross margin in Q3 2025 stood at 66.7%, reflecting the efficiency gains from these software operations.

Manufacturing and supply chain management for network devices

This key activity covers the production and logistics for the physical network edge devices, such as Unified DOCSIS 4.0 unified Remote Physical Devices (RPDs) and fiber access devices. While direct manufacturing costs aren't broken out, the output is reflected in the Broadband segment revenue and overall bookings. The company's Q3 2025 total company operating expenses were $58.4 million, down 3.5% year-over-year, partly due to prior restructuring initiatives in the Video segment, which implies ongoing cost management in operations.

Supply chain health and customer commitment are tracked via bookings and backlog.

The Broadband segment, which relies heavily on these manufactured devices, generated revenue of $90.5 million in Q3 2025. This shows the direct financial output of the manufacturing and supply chain activities, even while navigating a temporary industry-wide broadband modernization transition.

Harmonic Inc. (HLIT) - Canvas Business Model: Key Resources

You're looking at the core assets Harmonic Inc. (HLIT) relies on to execute its strategy as of late 2025. These aren't just abstract concepts; they are tangible deployments and balance sheet strength that you need to track.

The cOS virtualized broadband platform is definitely a cornerstone. As of the third quarter of 2025, this platform was commercially deployed with 142 customers, serving a massive 37.6 million cable modems. That's the scale of the installed base you are looking at right now. Also, Harmonic is pushing forward with next-generation standards, evidenced by customer announcements regarding DOCSIS 4.0 Unified RPDs and fiber expansion plans.

On the video side, the VOS360 cloud-native video SaaS platform is driving segment growth. For instance, Q3 2025 saw Video segment revenue hit $51.9 million. Within that, the SaaS component is showing strong traction, with SaaS revenue increasing 13.6% year-over-year to reach $16.1 million in that same quarter. This platform is key for customers like OSN, who are using the VOS360 Ad SaaS for personalized ad delivery.

The company's Intellectual Property (IP) is centered around its leadership in virtualized CMTS (Cable Modem Termination System) and Distributed Access Architecture (DAA). This IP underpins the software-based network infrastructure that customers like Telia Norway are adopting to modernize their broadband networks and reduce hardware needs.

Here's a quick look at the hard financial numbers underpinning these resources as of Q3 2025. This balance sheet strength gives them flexibility, so you should definitely keep an eye on the cash flow generation.

Also, remember the backlog is a key indicator of future resource utilization. The backlog and deferred revenue stood at $494.5 million, with about 63% scheduled for shipment or service within the next twelve months. Finance: draft 13-week cash view by Friday.

Harmonic Inc. (HLIT) - Canvas Business Model: Value Propositions

You're looking at how Harmonic Inc. (HLIT) delivers tangible benefits to its customers right now, late in 2025. It's not just about selling hardware; it's about selling operational transformation and future-proofing their networks.

Virtualized broadband (cOS) for lower OpEx and network modernization.

The core value here is moving from rigid systems to a software-based, virtualized broadband platform, which is their cOS solution. This shift directly impacts the bottom line. For instance, total company operating expenses (OpEx) in the third quarter of 2025 were $58.4 million, which was down 3.5% year-over-year, a result management attributed to prior restructuring and additional cost actions. This platform is widely adopted; as of the third quarter of 2025, the cOS platform was commercially deployed with 142 customers, serving 37.6 million cable modems. Furthermore, specific components like Beacon are cited as enabling up to 25% faster speeds while simultaneously reducing operator support costs. In European deployments with a key partner, the agility of the cOS platform helped reduce time-to-market for new fiber services by over 70%.

Accelerated time-to-market for next-gen services like DOCSIS 4.0.

Getting new standards like DOCSIS 4.0 deployed quickly is a major value driver. Harmonic has moved this technology out of the lab and into live operations. They announced a production deployment of Unified DOCSIS 4.0 with Mediacom Communications, the fifth-largest cable operator in the U.S., showcasing readiness for widescale adoption. This move supports the shift to a distributed access architecture (DAA) for faster, lower-latency experiences. On the fiber side, Comcast is leveraging Harmonic's fiber-to-the-home solutions to add roughly one million new fiber passings per year, using Harmonic's technology to deliver multi-gigabit symmetrical broadband.

Cloud-agnostic, low-latency video streaming for live sports (VOS360).

For video, the value is in delivering premium, engaging experiences reliably and cost-effectively. The VOS360 Media SaaS and VOS360 Ad SaaS solutions are engineered for high-stakes events like live sports. They enable synchronized delivery of low-latency streams, achieving sub-five-second latency while maintaining a geo-redundant architecture. To manage bandwidth costs, the platform's EyeQ content-aware encoding achieves up to 50% bandwidth and storage savings without sacrificing video quality. The financial success of this focus is evident: Video SaaS revenue hit a record $16.1 million in the third quarter of 2025.

Here's a quick look at the operational scale and financial performance underpinning these value propositions as of the end of Q3 2025:

Unified platform for managing DOCSIS and fiber deployments.

Operators don't want two separate management silos for their legacy DOCSIS and new fiber buildouts. Harmonic's Unified DOCSIS 4.0 solution is designed to support both technologies on the cOS platform, giving customers like Mediacom the optionality to add fiber services while modernizing their DOCSIS infrastructure. This unification simplifies network evolution and accelerates the rollout of next-generation services. The expanded partnership with Charter, for example, covers cOS, DOCSIS 4.0 Unified RPDs, and advanced operational tools across their entire footprint. The company's leadership in this space is backed by market share data; Harmonic is the market share leader in cable broadband equipment, virtual CMTS, and DAA, according to Dell'Oro Group.

You should definitely review the Q4 2025 guidance to see management's near-term expectations for broadband revenue, which is forecasted between $85 million to $95 million for that quarter.

Finance: draft 13-week cash view by Friday.

Harmonic Inc. (HLIT) - Canvas Business Model: Customer Relationships

You're looking at how Harmonic Inc. keeps its major service provider customers engaged, which is critical given its customer concentration. Honestly, the relationship model is deeply technical and relies on embedding its software platforms directly into the customer's core network and video delivery chain.

High-touch, strategic engagement with Tier 1 MSOs (Managed Services).

Harmonic Inc. maintains very close ties with its largest cable operator customers, often referred to as Tier 1 MSOs. This involves deep integration and strategic planning, as evidenced by the continuous expansion of its cOS™ platform deployments.

• In Q3 2025, Harmonic Inc. reported commercially deploying its cOS™ solution with 142 customers, managing 37.6 million cable modems.
• This represents growth from Q2 2025, when the platform served 136 customers and managed 35.3 million cable modems.
• The Q1 2025 figures showed 129 customers and 33.9 million cable modems under management.
• Strategic wins in Q3 2025 included securing one international Tier 1 customer among six new broadband customers.
• This follows Q1 2025 wins that included two US Tier 1s and one LATAM Tier 1 customer.
• Comcast, a key relationship, represented 39% of total revenue in Q2 2025.

Here's the quick math on the platform's customer base growth through the first three quarters of 2025:

What this estimate hides is the revenue impact of the transition; sales to the 10 largest customers in 2024 still accounted for approximately 72% of net revenue.

Dedicated professional services for cOS platform deployment and support.

The deployment of the cOS platform, which virtualizes broadband networking, requires significant, dedicated engineering support. This is not just a software sale; it's a network transformation project. Comcast announced it is leveraging Harmonic Inc.'s fiber-to-the-home solutions for more than 1.2 million new locations planned in 2025. Also, in Q2 2025, Harmonic Inc. secured four new broadband wins, two of which were specifically for fiber networks, indicating direct, high-touch professional services engagement for network build-outs.

SaaS subscription model for the VOS360 video platform.

The Video segment relies heavily on the recurring revenue from the VOS360 SaaS offering, which is seeing consistent, though sometimes uneven, growth. The company has a long-term goal of achieving $100 million in video SaaS sales by the end of 2028. The recent performance shows this model in action:

• In Q3 2025, Video SaaS revenue hit a record of $16.1 million, reflecting a 13.6% increase for the quarter.
• This followed Q2 2025, where Video SaaS revenue was $15.4 million, a 10.1% year-over-year growth.
• However, Q1 2025 saw a quarterly dip to $14.8 million from $15.1 million in Q4 2024.
• Total Video segment revenue for Q3 2025 was $51.9 million.

The VOS360 solutions are enhanced through strategic partnerships, such as leveraging Akamai's infrastructure for cost efficiency and scalability.

Direct sales and engineering support for complex network transitions.

Complex transitions, like the shift to Unified DOCSIS 4.0, necessitate direct engineering involvement. Harmonic Inc. announced an expanded partnership with Spectrum (Charter) covering DOCSIS 4.0 Unified RPDs and advanced operational tools in Q3 2025. This level of support is essential for customers migrating to next-generation standards. The company's focus on hybrid business models, integrating VOS360 in the cloud with on-premises software for fresh content, also requires direct engineering consultation to optimize total cost of ownership for service providers. You'll want Finance to track the bookings pipeline closely, as management noted projected customer spending slowdowns through 2025 in the prior year.

Harmonic Inc. (HLIT) - Canvas Business Model: Channels

You're looking at how Harmonic Inc. (HLIT) gets its solutions-the virtualized broadband and video delivery tech-into the hands of its customers as of late 2025. The channel strategy clearly splits between the capital expenditure-heavy Broadband segment and the increasingly recurring revenue-focused Video segment, which houses the VOS360 SaaS offering.

Direct sales force targeting Tier 1 cable and broadband operators is the backbone for the Broadband segment. This direct approach is necessary because the deals involve complex, large-scale network transformations, like the rollout of Unified DOCSIS 4.0. While Q3 2025 saw Broadband revenue at $90.5 million, down year-over-year, management noted stronger momentum with customer orders being realized earlier than anticipated, suggesting the direct sales team is closing significant, albeit sometimes lumpy, infrastructure deals with major players like Charter and Comcast.

For channel partners and integrators for international and regional deployments, the focus appears to be on expanding the global footprint. The company explicitly mentioned anticipating Broadband revenue growth momentum to increase in 2026 based on Rest of World accelerated adoption. This international push likely relies heavily on local partners and integrators who understand regional regulatory environments and customer needs better than a purely centralized direct team could. The Q3 2025 results already reflected this with growth in broadband rest of world shipments.

The push toward recurring revenue is channeled through cloud marketplaces and direct sales for VOS360 SaaS. This is where the Video segment shines, with growth led by SaaS. In Q3 2025, Video revenue hit $51.9 million, with the SaaS component specifically reaching $16.1 million, marking a 13.6% year-over-year increase. The VOS360 platform is the key offering here, enabling cloud-based workflows. The commercial deployment of the cOS solution, which supports this software-driven approach, reached 136 customers as of Q2 2025.

Finally, direct sales of hardware appliances for video and broadband remain a core channel, especially within the Video segment for on-premise encoding and for the Broadband segment's physical network components. The Video segment's $51.9 million revenue in Q3 2025 was supported by both appliance strength and SaaS streaming. The direct sales force manages the transfer of control for these physical and licensed products. Here's a quick look at the segment revenue scale for Q3 2025, which illustrates the relative size of the markets served by these channel mixes:

The success of the direct sales motion for the Broadband segment is tied to major customer readiness, as seen by the mention of large customer deployment plans for 2026. For the Video side, the channel strategy is clearly pivoting to emphasize the growth engine, which is the recurring SaaS model. If onboarding takes 14+ days, churn risk rises, so the direct and partner sales teams need streamlined activation for VOS360.

• Broadband revenue in Q3 2025 was $90.5 million.
• Video revenue in Q3 2025 was $51.9 million.
• Video SaaS revenue growth was 13.6% year-over-year in Q3 2025.
• The company reported $21.0 million in free cash flow for Q3 2025.
• Sales to the 10 largest customers accounted for approximately 72% of net revenue in 2024.

Harmonic Inc. (HLIT) - Canvas Business Model: Customer Segments

You're looking at the core groups Harmonic Inc. sells its virtualized broadband and video delivery solutions to as of late 2025. This isn't a broad-based customer list; it's segmented by the specific technology needs they have, which directly impacts Harmonic's revenue mix.

The company's Q3 2025 total revenue came in at $142.4 million, split between its Broadband segment revenue of $90.5 million and Video segment revenue of $51.9 million. This split shows where the immediate financial focus lies, though the Video segment, driven by SaaS, saw growth.

Tier 1 North American Cable/Broadband Operators

This group represents the largest, most concentrated revenue source for Harmonic Inc.'s Broadband segment. These operators are deep into upgrading their networks to meet escalating consumer demand for multi-gigabit services.

• Comcast was cited as representing 43% of Q3 2025 revenue.
• Comcast is leveraging Harmonic's fiber-to-the-home solutions, with plans for more than 1.2 million new locations in 2025.
• Harmonic also announced an expanded partnership with Spectrum (Charter) for cOS, DOCSIS 4.0 Unified RPDs, and operational tools.

International MSOs and Regional Broadband Service Providers

This segment is crucial for global expansion and diversification away from the heavy reliance on a few large North American players. Harmonic's cOS platform is the key enabler here.

Here's a look at the scale of the cOS deployment across these operators:

The company won six new broadband customers during Q3 2025, including one international Tier 1 operator.

Media Companies and Broadcasters Transitioning to OTT Streaming

This group falls primarily under Harmonic's Video segment, where the focus is on software-as-a-service (SaaS) offerings for video processing and delivery. They need solutions that handle everything from traditional broadcast quality to internet-delivered streaming.

• Video segment revenue for Q3 2025 was $51.9 million.
• SaaS revenue within the Video segment grew 13.6%, reaching $16.1 million in Q3 2025.
• Harmonic is showcasing hybrid cloud and on-premises streaming solutions, plus AI-driven workflows.

Live Sports Streaming Platforms Requiring Ultra-Low Latency

This is a specialized, high-value sub-segment within the media customer base. These platforms demand the absolute best performance for live events, where even small delays mean lost viewer engagement or advertising revenue.

• Harmonic is highlighting groundbreaking advancements in live sports streaming.
• The company enables automatic insertion of in-stream ad formats using AI to detect relevant moments in live sports action.
• Harmonic is collaborating with Enghouse Networks to drive direct-to-consumer sports innovation.

Finance: draft 13-week cash view by Friday.

Harmonic Inc. (HLIT) - Canvas Business Model: Cost Structure

You're looking at the cost side of Harmonic Inc.'s business as of late 2025. This structure is heavily influenced by the cost of the physical goods they sell, the ongoing investment in next-generation network technology, and the overhead required to run the operation.

The Cost of Goods Sold (COGS) is a direct driver of the gross margin for the hardware-heavy Broadband segment. For the third quarter of 2025, the Broadband segment gross margin landed at 47.3%. This is a key area to watch, as the company guides for Q4 2025 Broadband gross margins to be in the range of 48% to 50%, reflecting product mix changes.

Research and development expenditure remains significant, underpinning the push for future technology like Unified DOCSIS 4.0, which is central to their 2026 growth strategy. While a direct R&D spend figure for Q3 2025 isn't itemized here, the financial impact of R&D-related tax law changes is notable; Harmonic expects to realize a cumulative cash income tax reduction of approximately $50 million across both 2025 and 2026 due to the One Big Beautiful Bill Act and Section 174 adjustments. This highlights the financial interplay between innovation investment and tax structure.

The general overhead, or Operating Expenses (OpEx), for the total company in Q3 2025 was reported at $58.4 million. This figure reflected a 3.5% year-over-year decrease, resulting from prior restructuring actions in the video business and other cost controls. Still, management noted they expect OpEx to increase in Q4 2025 due to seasonality.

External trade costs also factor in. Specifically, costs associated with U.S. import tariffs are a current headwind. For the fourth quarter of 2025 guidance, Harmonic estimated the tariff impact on margins to be less than $1 million, similar to the impact seen in Q3. This is a tangible, near-term cost pressure point.

Here's a quick look at the key financial metrics that define the cost structure for the third quarter of 2025 and the immediate outlook:

The cost structure is clearly bifurcated between the lower-margin, hardware-dependent Broadband business and the higher-margin Video segment, which benefits from recurring SaaS revenue growth. The company's ability to manage COGS against the backdrop of DOCSIS 4.0 deployment costs is defintely central to margin performance.

• Focus on Unified DOCSIS 4.0 deployment readiness.
• Prior restructuring initiatives reduced year-over-year OpEx by 3.5% in Q3 2025.
• Comcast accounted for 43% of total Q3 2025 revenue.
• Video SaaS revenue reached a record $16.1 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

Harmonic Inc. (HLIT) - Canvas Business Model: Revenue Streams

You're looking at how Harmonic Inc. actually brings in the money as of late 2025, specifically focusing on the third quarter results. It's a mix of selling big hardware/software packages and recurring software services, which is key to understanding their current financial structure.

Here's the quick math on the major components that made up their total revenue of $142.4 million in Q3 2025. You can see the split between the Broadband and Video segments clearly in the breakdown below.

The Video segment as a whole brought in $51.9 million in Q3 2025, so that appliance and product sales figure is derived by taking the total Video revenue and subtracting the SaaS component.

When mapping out the streams, you see a clear focus on both upfront sales and recurring software revenue:

• Broadband product revenue (hardware and software licenses) hit $90.5 million in Q3 2025.
• Video SaaS subscription revenue achieved a record $16.1 million in Q3 2025, marking a 13.6% year-over-year increase.
• Video appliance and product sales accounted for approximately $35.8 million in Q3 2025.
• Professional services and support contracts for platform deployment contribute to the overall Video segment revenue and support the recurring SaaS base.

To be fair, the Video segment's Non-GAAP gross margin was 66.7% for the quarter, which is quite strong, even if it was down slightly from the prior year's 69.0%. Finance: draft 13-week cash view by Friday.