Viavi Solutions Inc. (VIAV): Business Model Canvas [Dec-2025 Updated]

You're looking for the real story behind Viavi Solutions Inc.'s numbers, and honestly, it's a fascinating pivot from where they were. As an analyst who's seen a few cycles, I can tell you their Business Model Canvas shows a company doubling down on the future-think quantum security and 6G R&D-while still banking on solid, established lines; for instance, their Network and Service Enablement products alone pulled in $776.6 million in Fiscal Year 2025, contributing to a total net revenue of $1.08 billion that year. This isn't just about selling hardware anymore; it's about owning the assurance layer for tomorrow's networks and critical infrastructure, so you'll want to see how their key partnerships and value propositions map to that aggressive strategy below.

Viavi Solutions Inc. (VIAV) - Canvas Business Model: Key Partnerships

Key Partnerships

The Key Partnerships block for Viavi Solutions Inc. centers on strategic alliances that drive technology validation, standards development, and market reach across next-generation network infrastructure.

QNu Labs for quantum-safe network security and standards development.

This alliance, announced December 4, 2025, focuses on developing test cases, frameworks, and standards for quantum-safe technologies, including quantum key distribution (QKD), quantum random number generation (QRNG), and post-quantum cryptography (PQC) systems in hybrid configurations. The partnership represents the first phase in establishing a global industry consortium to accelerate quantum-safe communication. As of the announcement, Viavi Solutions Inc. shares had surged nearly 88.5% over the preceding six months. Viavi Solutions Inc.'s fiscal first quarter 2026 revenue reached $299 million, a 25.6% year-over-year increase.

Calnex Solutions for integrated Open RAN conformance and performance testing.

The partnership, formalized in November 2025, delivers a suite of test solutions for Open RAN products across protocol, signal, and timing domains, aiming to simplify pre-certification validation. The collaboration immediately offers three ready-to-use testbeds: an end-to-end and cybersecurity test solution for fronthaul and midhaul, an O-RU and O-DU test solution with S-plane testing, and core network emulation test bundles for backhaul. At the time of the announcement, Viavi Solutions Inc. had a market capitalization of approximately $3.9 billion.

Telecom ecosystem partners like Ericsson, Samsung, and Nokia Bell Labs for 5G/6G and AI-RAN.

Viavi Solutions Inc. showcased advances at MWC Barcelona in March 2025 with over 20 companies, reinforcing the importance of the telecom ecosystem. Collaborations on AI-RAN and 6G featured partners including Nokia Bell Labs and Samsung. The fiscal year 2025 net revenue for Viavi Solutions Inc. totaled $1.08 billion, marking an 8.4% year-over-year increase.

System integrators and distributors for global product reach and deployment.

The global reach is supported by a broad network of system integrators and distributors, essential for deploying test and measurement solutions worldwide. For the fiscal year ended June 28, 2025, Viavi Solutions Inc.'s net revenue distribution by geography was:

The company held $429.0 million in total cash, short-term investments and short-term restricted cash as of June 28, 2025.

Hanyang University for collaborative 6G research and development.

A Memorandum of Understanding was signed on June 10, 2025, to collaborate on AI-RAN, 5G, and 6G research at the Beyond-G Global Innovation Center. Viavi Solutions Inc. contributes the NITRO Wireless test and optimization suite, including a 6G testbed. The university's center is part of a national project that grants over KRW 5 billion annually for 10 years. At the time of this partnership announcement, Viavi Solutions Inc.'s annual revenue was reported as $1.05 billion.

The following table summarizes key financial and partnership metrics as of late 2025:

The company's focus areas within these partnerships are detailed below:

• QNu Labs: Delivering test cases and badging mechanisms for PQC, QKD, and QRNG systems.
• Calnex Solutions: Integrated testbeds cover O-RAN conformance for WG4, WG5, and TIFG specifications.
• Hanyang University: Research focus on terahertz spectrum and AI-native radio networks.
• Ecosystem: Demonstrations included AI/ML for 6G beam management and Rate Splitting Multiple Access (RSMA) techniques.

Viavi Solutions Inc. (VIAV) - Canvas Business Model: Key Activities

You're looking at the core things Viavi Solutions Inc. does to bring in revenue and stay ahead in the tech space. It's a mix of deep research, manufacturing precision, and global service delivery. Honestly, the numbers from the end of fiscal year 2025 show a clear return to growth, which is what fuels these activities.

Advanced R&D in 6G, AI-RAN, and quantum-safe communications

Viavi Solutions Inc. is definitely pushing hard on future tech. Their 6G Forward program is focused on things like energy-efficient neuromorphic receivers and AI beam management technology. They are also active in testing security for the next generation of networks. For instance, when testing Post-Quantum Cryptography (PQC) algorithms, they found that a pure PQC approach on their TeraVM platform handled about 46,000 connections per second, down from the baseline of roughly 65,000 connections per second with traditional cryptography. This shows the real-world performance impact they are actively researching and helping customers navigate.

The company's focus on AI-RAN involves developing AI-based digital twin solutions for network optimization, which is a big deal for complex network simulations.

Manufacturing of high-performance thin-film optical coatings for 3D sensing and anti-counterfeiting

This activity falls under the Optical Security and Performance Products (OSPP) segment. It's about precision manufacturing, not just software. In the fourth quarter of fiscal year 2025, Viavi Solutions Inc. specifically noted growth in their anti-counterfeiting products as industry inventory levels normalized. This segment is key to their diversification strategy, which also includes the acquisition of Inertial Labs in FY25.

Here's a look at the overall financial results that support these ongoing activities for the full fiscal year 2025:

Development and maintenance of network test, monitoring, and assurance software/hardware

This is the bread and butter, covering the Network Enablement and Service Enablement segments. The overall business saw a return to growth in FY2025, with net revenue reaching $1.08 billion, an 8.4% increase year-over-year. The most recent reported quarter, Q1 FY2026 (ended September 27, 2025), showed net revenue of $299.1 million, which was up 25.6% year-over-year. This growth was fueled by strong demand in the data center ecosystem and aerospace & defense markets.

The core activities here involve:

• Testing and validation for 5G and Open RAN, including MU-MIMO and O-RAN testbeds.
• Developing AIOps solutions like NITRO AIOps for autonomous issue resolution.
• Providing Non-Terrestrial Network (NTN) digital twin testbed solutions.

Integration of acquired high-speed Ethernet and network security business lines

Viavi Solutions Inc. actively uses M&A to drive diversification. In fiscal year 2025, they prioritized capital allocation toward acquisitions, including the purchase of Inertial Labs and the pending acquisition of Spirent Communications plc's High-Speed Ethernet and Network Security Testing businesses. This integration activity is expected to be a growth driver for fiscal year 2026.

Also, they managed their capital structure by repurchasing approximately 2 million shares of common stock for about $16.4 million during FY25.

Global sales and technical support for complex network deployments

The sales and support structure is global, though the United States remains the largest market. For the first quarter of fiscal 2026 (ended September 27, 2025), the geographic revenue split was:

• Americas: 43.1% of total net revenue.
• Asia-Pacific: 30.8% of total net revenue.
• EMEA: 26.1% of total net revenue.

The company held $549.1 million in total cash, short-term investments, and short-term restricted cash as of September 27, 2025, which helps fund these global operations and support structures. Finance: draft 13-week cash view by Friday.

Viavi Solutions Inc. (VIAV) - Canvas Business Model: Key Resources

You're looking at the core assets Viavi Solutions Inc. (VIAV) relies on to deliver its value proposition. These aren't just things they own; they are the foundational elements that make the business model work, especially as they integrate recent strategic moves.

Financial Strength and Liquidity

The balance sheet provides a clear picture of immediate resources available for operations, investment, and strategic flexibility. As of the end of the fourth quarter of fiscal year 2025, which ended on June 28, 2025, Viavi Solutions Inc. held significant liquid assets.

This liquidity supports ongoing operations and strategic initiatives. For the full fiscal year 2025, the company generated $89.8 million in cash flows from operations for the year ended June 28, 2025. Also, during the fourth quarter ended June 28, 2025, cash flows from operations totaled $23.8 million.

Intellectual Property and R&D Foundation

Viavi Solutions Inc.'s competitive moat is heavily reliant on its proprietary technology, which is protected by an extensive Intellectual Property (IP) portfolio. This IP spans core areas critical to network and optical technology.

• Patents related to communications lead the portfolio, with 16% of grants in this area recorded in Q2 2024.
• The portfolio also includes significant patents in data science, artificial intelligence, and wireless access.
• The company's patent grants are geographically concentrated, with 45% in the United States (US), 30% in the European Patent Office (EPO), and 15% in China (CN) as of Q2 2024.

Investment in future capabilities is evident in R&D spending; for fiscal year 2025, Research and Development (R&D) expense was $208.7 million.

Specialized Capabilities and Strategic Acquisitions

The firm maintains specialized operational assets necessary for its high-precision offerings and has actively bolstered its portfolio through M&A. The company offers high-performance thin-film optical coatings, which are used in markets like anti-counterfeiting, 3D sensing, and automotive.

A key recent addition to expertise and product lines was the acquisition of Spirent Communications plc's High-Speed Ethernet and Network Security Testing businesses, which closed on October 17, 2025. This move was a priority in capital allocation for fiscal year 2025, aimed at strengthening the position in the data center ecosystem.

While the specific details of an 'Open RAN Lab-as-a-Service' are not explicitly quantified here, the focus on R&D and the acquisition of high-speed Ethernet testing capabilities point directly to maintaining specialized R&D facilities for industry validation in next-generation networking.

For the full fiscal year 2025, Viavi Solutions Inc. achieved total net revenue of $1.08 billion.

Viavi Solutions Inc. (VIAV) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Viavi Solutions Inc., and frankly, the numbers back up the strategy. It's about assuring the networks that run modern life and protecting high-value assets.

Assuring performance and reliability of complex 5G, fiber, and data center networks.

This is the bulk of the business. The Network and Service Enablement (NSE) segment brought in $776.6 million in fiscal year 2025, making up 72% of the total net revenue of $1.08 billion for that year. The demand from the data center ecosystem is a key driver here; for instance, the recent acquisition of Spirent's high-speed Ethernet business lines is anticipated to add about $200 million in annual revenue run rate, directly bolstering this high-growth area. You saw this momentum continue into the first quarter of fiscal 2026, where NSE segment revenue hit $216 million, a 35.5% jump year-over-year.

Here's a quick look at the segment contribution for the full fiscal year 2025:

Providing advanced light management solutions for 3D sensing in consumer electronics.

Viavi Solutions Inc. is a leader in light management technologies, which translates directly into physical units shipped for advanced applications like 3D sensing. The company has shipped over 3 billion 3D Filters. This expertise is also applied in automotive and industrial markets, showing diversification beyond just consumer electronics.

Offering anti-counterfeiting pigments used in over 100 global currencies.

This is a steady, high-value proposition within the Optical Security and Performance Products (OSP) segment. The anti-counterfeiting pigments are used in over 100 global currencies. The OSP segment itself generated $307.7 million in fiscal year 2025 revenue. The strength in these anti-counterfeiting products helped OSP revenue grow to $83.1 million in Q1 fiscal 2026.

Delivering quantum-safe security frameworks and test cases for critical infrastructure.

While the specific revenue or adoption rate for quantum-safe frameworks isn't broken out, the company's overall focus on security validation is clear, as evidenced by the inclusion of Spirent's network security business lines. The overall strategy supports critical infrastructure by ensuring security validation is part of the testing process.

Enabling assured Position, Navigation, and Timing (PNT) in GPS-denied environments.

The value proposition here centers on providing solutions for Government, Aerospace and Defense customers, specifically for mission-critical and secure/reliable communications. This capability is essential for ensuring PNT when GPS signals are unavailable, a non-negotiable requirement for defense applications.

• The company holds over 3100 patents issued.
• Viavi Solutions Inc. had an annual revenue of $1.08B for Fiscal Year 2025.
• Non-GAAP net income for FY 2025 was $105.4 million.

Viavi Solutions Inc. (VIAV) - Canvas Business Model: Customer Relationships

You're looking at how Viavi Solutions Inc. manages its diverse customer base, which spans from massive telecom operators to specialized government agencies. The relationships are segmented by the value proposition they require, which is clearly reflected in the financial performance of their business units as of late 2025.

Dedicated account management is clearly focused on the Network Enablement (NE) and Service Enablement (SE) segments, which together form the Network and Service Enablement (NSE) group. This group represented 72% of total net revenue in the fourth quarter of fiscal 2025, generating $209.1 million. For the first quarter of fiscal 2026, the total net revenue hit $299.1 million, showing a 25.6% year-over-year growth, much of which is driven by these core network customers.

Collaborative R&D with key network equipment manufacturers (OEMs) is a major driver, particularly in the fiber and data center buildout space. The NSE segment's growth in fiscal 2025 was mainly fueled by strong demand from the data center ecosystem for field, lab, and production products. The company's CTO mentioned that Viavi works with all vendors in a multi-vendor environment, which builds trust for delivering complete solutions that meet the expected return on investment.

For enterprise and field technicians, the relationship is supported by digital resources. While direct revenue figures for portal usage aren't broken out, the overall enterprise customer base contributes significantly. For the fiscal year ended June 28, 2025, the Americas region, which includes a large portion of enterprise business, accounted for 39.2% of total net revenue.

Long-term contracts anchor the Optical Security and Performance Products (OSP) segment, which serves government and other specialized sectors. In Q4 FY2025, the OSP segment delivered $81.4 million in revenue, marking a 16.6% year-over-year increase. Viavi Solutions Inc. supplies specialized testing and measurement equipment to the U.S. Department of Defense, particularly the Navy. Individual contract values for items like optical digital time reflectometers (ODTRs) supplied to the Naval Supply Systems Command have ranged from $4,500 to over $200,000. Furthermore, Viavi is actively partnering to develop quantum-safe technologies for the banking, aerospace, defense, and government sectors.

Professional services are bundled within the Service Enablement (SE) segment, which includes maintenance, support, extended warranty, and professional services for network assurance and deployment. In Q2 FY2025, the SE segment generated $20.9 million in revenue. The company's overall strategy is to bring expertise from lab to deployment to optimization, giving customers confidence in the solution delivery.

Here's a look at the segment revenue mix from recent quarters, which shows where customer relationship focus translates to dollars:

The customer relationship structure is supported by the geographic distribution of sales, showing where the primary focus lies:

• Americas customers represented 43.1% of total net revenue for the quarter ended September 27, 2025.
• Asia-Pacific customers accounted for 30.8% of total net revenue for the quarter ended September 27, 2025.
• EMEA customers made up 26.1% of total net revenue for the quarter ended September 27, 2025.

Finance: review the Q2 FY2026 guidance for NSE and OSP revenue projections by end of next week.

Viavi Solutions Inc. (VIAV) - Canvas Business Model: Channels

You're looking at how Viavi Solutions Inc. gets its products and services into the hands of customers, which is a mix of direct effort and a broad network. For the full fiscal year ended June 28, 2025, Viavi Solutions Inc. booked total net revenue of $1.08 billion. This revenue was distributed across key geographic theaters, which gives you a sense of where the direct sales force and channel efforts are concentrated.

The company's direct sales force definitely targets the major players, as evidenced by the strong performance in segments like the data center ecosystem and aerospace & defense, which accelerated recovery in Fiscal Year 2025. The Network and Service Enablement (NSE) segment, which includes much of the core test and measurement business, represented 72% of total revenue in the fourth quarter of fiscal 2025, generating $209.1 million.

The geographic split for the most recent full fiscal year shows the Americas as the largest market:

For the first quarter of fiscal 2026, which ended September 27, 2025, total net revenue was $299.1 million. You can see the Americas share increased to 43.1% in that quarter, suggesting a strong direct or channel push there, while Asia-Pacific dipped to 30.8%.

Viavi Solutions Inc. maintains a global network of authorized partners, resellers, and distributors, which they refer to as their 'best-in-class partner program'. This network is designed to help partners build expertise and engage a broader range of customers. The company provides a Partner Resource Portal Login for existing partners.

The online presence is a clear component, offering access to support functions like:

• Technical Support Portal
• Software Downloads
• Partner Locator

Strategic channel partnerships are also actively developed, as seen by the recent acquisition of Spirent Communications plc's High-Speed Ethernet, Network Security and Channel Emulation Testing Business on October 16, 2025. Furthermore, Viavi Solutions Inc. announced a strategic partnership with QNu Labs to develop quantum-safe technologies, which will provide a solutions framework for enterprises, telecom operators, and government organizations worldwide.

The Optical Security and Performance Products (OSP) segment, which delivered $81.4 million in revenue in Q4 FY2025, up 16.6% year-over-year, also relies on these channels for distribution of its specialized optical coatings. Finance: draft 13-week cash view by Friday.

Viavi Solutions Inc. (VIAV) - Canvas Business Model: Customer Segments

You're looking at the customer base for Viavi Solutions Inc. as of late 2025. The company serves a mix of infrastructure builders, large enterprises, and specialized government/security clients. Honestly, the financial data shows a clear pivot toward data center buildouts, even as traditional telecom spend saw some pressure.

The overall picture for the trailing twelve months ending September 27, 2025, shows total net revenue at approximately $1.15B. For the most recently reported quarter, the first quarter of fiscal 2026 (ending September 27, 2025), net revenue hit $299.10M, marking a 25.57% growth quarter-over-quarter.

The customer base is segmented across the Network and Service Enablement (NSE) and Optical Security and Performance Products (OSP) segments. For the fourth quarter of fiscal 2025 (ending June 28, 2025), the NSE segment generated $209.1 million, representing 72% of total revenue for that quarter, while OSP brought in $81.4 million.

Here is a breakdown of the primary customer groups and the associated financial context:

The geographic distribution of revenue for the quarter ending September 27, 2025, gives you a sense of where these customers are located:

• Americas customers: 43.1% of total net revenue.
• Asia-Pacific customers: 30.8% of total net revenue.
• EMEA customers: 26.1% of total net revenue.

Within the NSE segment, the focus has clearly shifted. As the CEO noted regarding the Network and Service Enablement segment in Q4 FY2025, the theme was 'pretty much fiber fiber and more fiber,' specifically pointing to the data center ecosystem. The full fiscal year 2025 saw NSE revenue reach $776.6 million.

For the OSP segment, which houses the security and specialized optics customers, revenue in the fourth quarter of fiscal 2025 was $81.4 million, up 16.6% year-over-year. This segment's operating margin reached an impressive 39.4% in that quarter.

Viavi Solutions Inc. (VIAV) - Canvas Business Model: Cost Structure

You're looking at the major drains on Viavi Solutions Inc.'s operating cash flow as of late 2025. The cost structure is heavily weighted toward innovation and supporting the recently expanded footprint, especially following major acquisitions.

High investment in Research and Development (R&D) remains a core, non-negotiable cost, necessary to stay ahead in next-gen technologies like 6G and quantum applications. For the first quarter of fiscal year 2026, which ended September 27, 2025, Viavi Solutions reported GAAP Research and Development expenses of $56.0 million. This level of spend supports the engineering capabilities mentioned as a key upside of the Spirent integration, aiming to accelerate new technology development.

The Cost of Goods Sold (COGS) directly reflects the manufacturing of hardware, which is a significant component of the business, particularly in the Optical Security and Performance Products (OSP) segment, even as Network and Service Enablement (NSE) grows. The prompt specified a target Gross Margin, and Viavi Solutions reported a Non-GAAP Gross Margin of 60.0% for Q1 FY2026. This contrasts with the GAAP Gross Margin of 56.5% for the same period.

Supporting the expanded global reach, Sales, General, and Administrative (SG&A) expenses are substantial. For Q1 FY2026, GAAP Selling, General, and Administrative expenses were reported at $104.2 million. This cost base is essential for maintaining the global sales and partner network that services the Americas (43.1% of Q1 FY2026 revenue), Asia-Pacific (30.8%), and EMEA (26.1%).

Financing the growth strategy involves carrying debt, which results in an Interest Expense. As of September 27, 2025, Viavi Solutions reported a total net carrying value of its outstanding notes-comprising 1.625% Senior Convertible Notes, 0.625% Senior Convertible Notes, and 3.75% Senior Notes-amounting to $791.6 million. This debt load is a direct consequence of funding strategic moves.

Acquisition and integration costs are another major factor. The prompt highlights the Spirent deal; specifically, the acquisition of Spirent Communications plc's high-speed ethernet and network security business lines from Keysight Technologies, Inc. was for a $410 million base cash consideration plus an additional $15 million contingent cash consideration. To be fair, the larger, initial agreement to acquire Spirent Communications plc was valued at approximately $\pounds 1,005$ million, or $1,277 million. These transactions inherently carry integration costs that flow through the operating expenses.

Here's a quick look at the key operating expense components for Q1 FY2026 (GAAP, in millions):

The cost structure also includes other operating expenses that management often adjusts out for non-GAAP reporting, such as amortization of other intangibles, which was $1.5 million in Q1 FY2026, and restructuring charges, which were a net benefit of ($0.3 million). The overall GAAP operating margin for the quarter was 2.5%, but the Non-GAAP Operating Margin reached 15.7%, showing the impact of these excluded items.

You'll want to watch the leverage ratio; S&P Global Ratings noted that pro forma leverage was about 6x following the larger transaction, with a projection for steady deleveraging.

Finance: draft 13-week cash view by Friday.

Viavi Solutions Inc. (VIAV) - Canvas Business Model: Revenue Streams

You're looking at how Viavi Solutions Inc. (VIAV) actually brings in the money, and the numbers from the most recent full fiscal year give a clear picture of the scale. For the Fiscal Year 2025, which ended June 28, 2025, the Total Net Revenue was $1.08 billion, specifically reported as $1,084.3 million.

The revenue streams flow primarily through two major segments: Network and Service Enablement (NSE) and Optical Security and Performance Products (OSP). Here is a quick look at how those segments and the geographic split stacked up for FY 2025.

The Network and Service Enablement (NSE) product sales were the heavy lifter, generating $776.6 million in FY 2025. This segment is where you find the revenue from software and service assurance subscriptions/licenses, alongside field, lab, and production products. Growth in this area during FY 2025 was mainly fueled by strong demand from the data center ecosystem for fiber and data center buildouts, plus growth in aerospace and defense products. This is where the recurring revenue from software and service assurance definitely plays a role in stabilizing the top line, even if we don't have the exact subscription dollar amount separate from the total NSE sales.

Optical Security and Performance Products (OSP) sales contributed $307.7 million to the FY 2025 total. OSP performance saw a slight improvement year-over-year, driven by growth in Anti-Counterfeiting and Other products as inventory levels normalized. To give you a sense of the start of the next fiscal year, OSP revenue for the first quarter of FY 2026 (Q1 FY2026, ended September 27, 2025) was $83.1 million.

When you map the total net revenue for the full Fiscal Year 2025 by geography, the Americas was the largest contributor. Here's the breakdown of that $1.08 billion haul:

• Revenue from the Americas region accounted for 39.2% of total net revenue in FY 2025.
• Asia-Pacific customers represented 35.0% of total net revenue in FY 2025.
• EMEA customers accounted for 25.8% of total net revenue in FY 2025.

For a more current snapshot, the geographic mix shifted slightly in Q1 FY2026, which posted total net revenue of $299.1 million. The regional contribution for that quarter was:

• Americas customers represented 43.1% of total net revenue for Q1 FY2026.
• Asia-Pacific customers represented 30.8% of total net revenue for Q1 FY2026.
• EMEA customers represented 26.1% of total net revenue for Q1 FY2026.

NSE revenue for Q1 FY2026 was $216.0 million, up 35.5% year-over-year, while OSP revenue was $83.1 million, up 5.5% year-over-year. Strong demand from the data center ecosystem and aerospace & defense customers drove that NSE performance.