{"id":5748,"date":"2026-05-14T15:00:00","date_gmt":"2026-05-14T13:00:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=5133f0e3340b3ff1df1c58e7f36a02f9"},"modified":"2026-05-14T15:00:00","modified_gmt":"2026-05-14T13:00:00","slug":"vecima-reports-strong-third-quarter-results-generating-expanding-gross-and-adjusted-ebitda-margins","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=5748","title":{"rendered":"Vecima Reports Strong Third Quarter Results Generating Expanding Gross and Adjusted EBITDA Margins"},"content":{"rendered":"

\nQ3 Revenue $64.8M; Gross Margin 47.3%; Adjusted EBITDA Margin 17.4%; Calendar 2026 Revenue Growth Outlook Increased to 22.5%-30.0% (previously 20%-30%)<\/b><\/p>

VICTORIA, British Columbia--(BUSINESS WIRE)--Vecima Networks Inc. (TSX: VCM) today reported financial results for the three and nine months ended March 31, 2026.<\/p><\/a><\/a>

\nFINANCIAL HIGHLIGHTS<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n

\n(Canadian dollars in millions except percentages, employees, and per share data)<\/i><\/b><\/p><\/td>

\nQ3 FY26<\/b><\/p><\/td>

\nQ2 FY26<\/b><\/p><\/td>

\nQ3 FY25<\/b><\/p><\/td><\/tr>\n

\nRevenue<\/p><\/td>

\n$64.8<\/p><\/td>

\n$73.7<\/p><\/td>

\n$64.0<\/p><\/td><\/tr>\n

\nGross Margin<\/p><\/td>

\n47.3%<\/p><\/td>

\n44.9%<\/p><\/td>

\n47.7%<\/p><\/td><\/tr>\n

\nNet Income (Loss)<\/p><\/td>

\n$(0.2)<\/p><\/td>

\n$0.1<\/p><\/td>

\n$1.2<\/p><\/td><\/tr>\n

\nEarnings (Loss) Per Share1<\/sup><\/p><\/td>

\n$(0.01)<\/p><\/td>

\n$0.00<\/p><\/td>

\n$0.05<\/p><\/td><\/tr>\n

\nAdjusted Gross Margin2,3<\/sup><\/p><\/td>

\n50.7%<\/p><\/td>

\n46.4%<\/p><\/td>

\n47.4%<\/p><\/td><\/tr>\n

\nAdjusted Earnings (Loss) Per Share1,2,4,5<\/sup><\/p><\/td>

\n$0.06<\/p><\/td>

\n$0.04<\/p><\/td>

\n$0.05<\/p><\/td><\/tr>\n

\nAdjusted EBITDA2<\/sup><\/p><\/td>

\n$11.3<\/p><\/td>

\n$10.6<\/p><\/td>

\n$10.3<\/p><\/td><\/tr>\n

\nEmployees<\/p><\/td>

\n612<\/p><\/td>

\n611<\/p><\/td>

\n582<\/p><\/td><\/tr>\n

\n1)<\/sup> Based on weighted average number of shares outstanding.<\/i><\/p><\/td><\/tr>\n

\n2)<\/sup> Adjusted Gross Margin, Adjusted Earnings Per Share and Adjusted EBITDA do not have a standardized meaning under IFRS and therefore may not be comparable to similar measures provided by other issuers. Starting in Q4 fiscal 2025, we have changed our definition and calculation of Adjusted EBITDA and Adjusted Earnings Per Share. For a reconciliation of Adjusted Earnings Per Share, investors should refer to Vecima\u2019s Management\u2019s Discussion and Analysis for the three and nine months ended March 31, 2026.<\/i><\/p><\/td><\/tr>\n

\n3)<\/sup> Adjusted gross margin adds back the impact of a non-cash write-down of inventories to net realizable value and warrant expense (recovery) of $1.8 million and $0.4 million, respectively, for the three months ended March 31, 2026, and $0.8 million and $(1.0) million, respectively, for the three months ended March 31, 2025.<\/i><\/p><\/td><\/tr>\n

\n4)<\/sup> Adjusted earnings per share includes non-cash share-based compensation of $0.4 million or $0.01 per share for the three months ended March 31, 2026, and $0.5 million or $0.02 per share for the three months ended March 31, 2025. The non-cash share-based compensation primarily reflects certain performance-based vesting thresholds achieved under the Company\u2019s Performance Share Unit Plan.<\/i><\/p><\/td><\/tr>\n

\n5)<\/sup> Adjusted earnings per share and Adjusted EBITDA include foreign exchange loss of $0.2 million or $0.01 per share for the three months ended March 31, 2026, and $0.3 million or $0.01 per share for the three months ended March 31, 2025.<\/i><\/p><\/td><\/tr>\n<\/table>

\n\"The third quarter fully aligned with our expectations as we prepared for a significant resurgence of growth in fiscal Q4 and beyond,\" said Sumit Kumar, Vecima's President and Chief Executive Officer. \"The customer forecast-driven visibility into robust upcoming demand across the next several periods has continued to be reinforced and began to materialize late in the third quarter, tied to scale network deployment programs. With increased demand coalescing, we are now increasing our revenue growth outlook for calendar 2026. We now anticipate 22.5% to 30.0% revenue growth in calendar 2026 as compared to calendar 2025, above our previous projection of 20% to 30% growth. Based on Management's projections, we continue to expect adjusted EBITDA margins to break through 20% for this same period, driving adjusted EBITDA growth of 74% to 85% compared to calendar 2025. Our confidence in our increased forecast further strengthened in the third quarter as our customers are providing purchase orders and forecasts with clear visibility into increased volumes in the near term. At the same time, we believe new design wins, deepening customer engagements, and achieving important product milestones underscore the long-term nature of our anticipated growth trajectory.\"<\/p>

\n\"Financially, we generated third quarter sales of $64.8 million, representing a year-over-year increase of 1.3% in a quarter in which we anticipated temporary and modest delivery constraints related to the short-term effects of industry consolidation activity, as well as the normal initiation phase in the lead up to major network evolution programs. Third quarter results reflected strengthening performance in our Video and Broadband Solution segment, partially offset by a lower revenue quarter for our Content Delivery and Storage segment year-over-year, related to the timing of orders and projects. Our Video and Broadband Solutions results included robust demand for our high-value, fiber-to-the home access solutions, which have grown to become a key component of Vecima's product mix and represented close to half of our Q3 Entra sales.\"<\/p>

\n\"Consolidated third quarter results included an impressive gross margin percentage of 47.3% (adjusted gross margin of 50.7%), representing our third consecutive quarter of margin improvement. Notably, Adjusted EBITDA climbed 9.2% year-over-year and 6.4% quarter-over-quarter to $11.3 million, reflecting operational efficiencies throughout the organization and resulting in a strong Adjusted EBITDA margin of 17.4%, as compared to 16.1% in the same period last year.\"<\/p>

\n\"Highlights of the quarter included the announcement of a major, multi-year DOCSIS 4.0 agreement with Charter Communications' Spectrum, one of North America's largest broadband service providers. The agreement further deepens our relationship with Charter and focuses on deployment of our new ENTRA ERM422, the world's first DOCSIS 4.0 Dual Downstream Service group RPD. The announcement also reaffirms the partnership related to Charter's continued nationwide fiber-to-the-home deployment of our global market-leading Entra SF-4X Remote OLT.\"<\/p>

\n\"In other parts of the Entra portfolio, we significantly advanced our vCMTS cloud solution, securing design wins and initial orders from four European customers, signing a paid proof-of-concept agreement with an international Tier 1 operator, and making important progress on vCMTS trial activity with our Lead Tier 1 North American customer. In our Commercial Video portfolio, we also progressed lab trials for TerraceIQ as our lead Tier 1 customer prepares for a major network-wide upgrade using the next-generation solution.\"<\/p>

\n\u201cAgainst the backdrop of accelerating, wide-scale DAA adoption, Vecima\u2019s decisive execution positions the company for substantial value creation. Our momentum is expected to begin ramping in Q4 fiscal 2026, helping to set the stage for new quarterly revenue records. We expect Entra fiber and cable-access products, including Entra RemotePHY, EN9000, and Entra Optical solutions, will lead our near-term performance gains. We also see a clear long-term growth trajectory as our high-value new DOCSIS 4.0 and vCMTS offerings, and in the CDS segment, IPTV and DAI solutions, become more significant contributors. Our strategy to build the industry's broadest and deepest portfolio of innovative, interoperable next-generation fiber and cable access products and IPTV solutions, paired with our expanding focus on software-centric products and platforms that will prepare customers for the 50G future, has positioned Vecima for upcoming sustained growth, with financial performance scaling to new heights,\" concluded Mr. Kumar.<\/p>

\nFinancial and Corporate<\/b><\/p>