HLITHarmonic Inc.
Is the business good?
More warning than reassurance: thin cash backing (0.3×) and margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit outpaces operating cash flow, watch accruals and working capital. Conversion is worsening vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is HLIT?
Harmonic Inc. earns 15% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 5.6 points above what the capital costs: growth creates value
- Operating margin
- 10.0%
Operating margin · Communication Equipment median 5.2% · 12 months to Q2 2026
- Cash conversion
- 0.28×
Cash conversion · 1.68× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- −3.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −3.3% |
| FY2021 | 3.7% |
| FY2022 | 7.3% |
| FY2023 | 7.7% |
| FY2024 | 15% |
| FY2025 | 3.9% |
Details›
- Gross margin12 months to Q2 2026
- 35%
- Operating margin12 months to Q2 2026
- 10.0%
- Net margin12 months to Q2 2026
- −11%
- Free cash flow margin
- 0.31%
- R&D as % of revenue
- 13%
- Revenue, trailing twelve months
- $444M
- Free cash flow, trailing twelve months
- $1.4M
- Net income, trailing twelve months
- −$47M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 15%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from HLIT and who it buys from, as the companies report it.
- Customer one54%
Share of revenue · FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; HLIT’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.
Communication Equipment
Ranks #5 of 18 by RyuScore