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HLIT, Harmonic Inc.

Communications Equipment capital-intensive UnprofitableCyclical

We are a leading global provider of broadband access solutions that enable broadband operators to more efficiently and effectively deploy high-speed internet for data, voice and video services for their customers.

Our Broadband business provides broadband access solutions and related services, including our cOS software-based broadband access solution, to broadband operators globally.

Latest annual: FY2025 10-K

HLIT · Harmonic Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$361M

−26.2% YoY · −1% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $397M 5-yr avg $474M

Gross margin 48% 5-yr avg 49%

Operating margin 6.9% 5-yr avg 7.6%

Owner-earnings margin 11% 5-yr avg 8%

Free cash flow margin 11% 5-yr avg 8%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Products (74%), SaaSService (16%) and Professional Services (10%).
Situation: Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand. Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Gross margin has run about 49% and operating margin about 3.2% through the cycle, a spread the cycle sets more than the company does. The margin is cyclical, swinging between −20% and 15% over the years, so the through-cycle figure carries more than any single year — and the balance sheet at the trough more than the peak. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median 3%, above 15% in 0 of 8 years). Owner earnings, the cash-based check, have been thin too. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Products is 74% of revenue, with SaaSService the other meaningful line at 16%.

Revenue by product line, FY2025

Products74%$267M
SaaSService16%$58M
Professional Services10%$36M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMApr 2026
											Income statement
$406M	$358M	$404M	$403M	$379M	$507M	$625M	$388M	$488M	$361M	$397M	RevenueRevenue
49%	47%	52%	55%	51%	51%	51%	46%	49%	48%	48%	Gross marginGross mgn
36%	38%	29%	30%	32%	27%	23%	20%	16%	23%	21%	SG&A / revenueSG&A/rev
24%	27%	22%	21%	22%	20%	19%	18%	15%	21%	20%	R&D / revenueR&D/rev
($67M)	($71M)	($5M)	$13M	($12M)	$19M	$46M	$30M	$75M	$14M	$27M	Operating incomeOp. inc.
−16.5%	−19.8%	−1.2%	3.2%	−3.3%	3.7%	7.3%	7.7%	15.3%	3.9%	6.9%	Operating marginOp. mgn
($72M)	($83M)	($21M)	($6M)	($29M)	$13M	$28M	$84M	$39M	($43M)	($42M)	Net incomeNet inc.
											Cash flow & returns
$438K	$3M	$12M	$31M	$39M	$41M	$5M	$7M	$62M	$108M	$56M	Operating cash flowOp. cash
$19M	$15M	$13M	$11M	$12M	$13M	$12M	$12M	$12M	$11M	$11M	DepreciationDeprec.
$41M	$55M	$3M	$14M	$39M	($9M)	($60M)	($117M)	($18M)	$108M	$54M	Working capital & otherWC & other
$15M	$11M	$7M	$10M	$32M	$13M	$9M	$8M	$9M	$11M	$11M	CapexCapex
3.7%	3.2%	1.7%	2.6%	8.5%	2.6%	1.5%	2.2%	1.9%	3.1%	2.7%	Capex / revenueCapex/rev
($15M)	($8M)	$5M	$21M	$7M	$28M	($4M)	($1M)	$53M	$97M	$45M	Owner earningsOwner earn.
−3.6%	−2.3%	1.3%	5.2%	1.8%	5.5%	−0.6%	−0.4%	10.8%	26.9%	11.4%	Owner earnings marginOE mgn
($15M)	($8M)	$5M	$21M	$7M	$28M	($4M)	($1M)	$53M	$97M	$45M	Free cash flowFCF
−3.6%	−2.3%	1.3%	5.2%	1.8%	5.5%	−0.6%	−0.4%	10.8%	26.9%	11.4%	Free cash flow marginFCF mgn
$74M	$0	$0	—	—	—	—	—	—	—	$0	AcquisitionsAcquis.
—	—	$0	$0	$0	$0	$0	$0	$0	—	$0	Dividends paidDiv. paid
$0	$0	—	—	$0	$0	$5M	$0	$30M	$79M	—	BuybacksBuybacks
-17%	-20%	-1%	—	-3%	7%	11%	9%	10%	—	—	ROICROIC
-27%	-36%	-9%	-2%	-11%	4%	9%	19%	8%	-11%	-12%	Return on equityROE
−27%	−36%	−9%	−2%	−11%	4%	9%	19%	8%	−11%	−12%	Retained to equityRetained/eq
											Balance sheet
$56M	$57M	$66M	$93M	$99M	$133M	$90M	$84M	$101M	$124M	$115M	Cash & investmentsCash+inv
$87M	$70M	$82M	$89M	$66M	$89M	$108M	$142M	$144M	$86M	$83M	ReceivablesReceiv.
$41M	$26M	$26M	$29M	$35M	$71M	$121M	$84M	$43M	$48M	$51M	InventoryInvent.
$29M	$33M	$34M	$41M	$24M	$64M	$67M	$39M	$28M	$23M	$35M	Accounts payablePayables
$99M	$63M	$74M	$77M	$78M	$95M	$162M	$187M	$158M	$111M	$100M	Operating working capitalOper. WC
$217M	$172M	$197M	$251M	$238M	$323M	$345M	$331M	$565M	$494M	$485M	Current assetsCur. assets
$145M	$142M	$136M	$192M	$147M	$224M	$322M	$272M	$192M	$198M	$214M	Current liabilitiesCur. liab.
1.5×	1.2×	1.4×	1.3×	1.6×	1.4×	1.1×	1.2×	2.9×	2.5×	2.3×	Current ratioCurr. ratio
$237M	$243M	$241M	$240M	$244M	$240M	$238M	$61M	$61M	$61M	$61M	GoodwillGoodwill
$554M	$508M	$511M	$587M	$592M	$694M	$710M	$768M	$797M	$718M	$705M	Total assetsAssets
$103M	$109M	$115M	$89M	$130M	$99M	$16M	$0	$114M	$112M	$111M	Total debtDebt
$48M	$52M	$49M	($4M)	$31M	($34M)	($74M)	($84M)	$13M	($12M)	($4M)	Net debt / (cash)Net debt
—	—	-0.4×	1.1×	-1.1×	1.8×	9.0×	11.1×	11.6×	3.7×	7.7×	Interest coverageInt. cov.
$271M	$230M	$228M	$252M	$258M	$296M	$325M	$437M	$465M	$383M	$355M	Shareholders’ equityEquity
3.2%	4.6%	4.3%	3.0%	4.8%	4.7%	4.0%	7.0%	5.8%	8.8%	8.4%	Stock comp / revenueSBC/rev
											Per share
77.7M	81.0M	85.6M	89.6M	97.0M	106M	112M	117M	117M	114M	111M	Shares out (diluted)Shares
$5.22	$4.42	$4.71	$4.50	$3.91	$4.78	$5.56	$3.31	$4.16	$3.16	$3.59	Revenue / shareRev/sh
$-0.93	$-1.02	$-0.25	$-0.07	$-0.30	$0.12	$0.25	$0.72	$0.33	$-0.38	$-0.38	EPS (diluted)EPS
$-0.19	$-0.10	$0.06	$0.23	$0.07	$0.26	$-0.03	$-0.01	$0.45	$0.85	$0.41	Owner earnings / shareOE/sh
$-0.19	$-0.10	$0.06	$0.23	$0.07	$0.26	$-0.03	$-0.01	$0.45	$0.85	$0.41	Free cash flow / shareFCF/sh
—	—	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	—	$0.00	Dividends / shareDiv/sh
$0.19	$0.14	$0.08	$0.12	$0.33	$0.12	$0.08	$0.07	$0.08	$0.10	$0.10	Cap. spending / shareCapex/sh
$3.48	$2.84	$2.67	$2.82	$2.66	$2.79	$2.89	$3.72	$3.96	$3.36	$3.21	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	−5.4%/yr	−4.2%/yr
Owner earnings / share	—	+63.9%/yr
Capital spending / share	−7.4%/yr	−21.8%/yr
Book value / share	−0.4%/yr	+4.7%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

114Mpeak FY2024

ROIC

10%low FY2017

Gross margin

48%low FY2023

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$97Mowner earningsvs.($43M)net incomelow FY2016

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned a $43M loss into $97M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($43M)	$39M	$84M	$28M	$13M
Depreciation & amortizationnon-cash charge added back	+$11M	+$12M	+$12M	+$12M	+$13M
Stock-based compensationreal costnon-cash, but a real cost	+$32M	+$28M	+$27M	+$25M	+$24M
Working capital & othertiming of cash in and out, other non-cash items	+$108M	−$18M	−$117M	−$60M	−$9M
Cash from operations	$108M	$62M	$7M	$5M	$41M
Capital expenditurecash put back in to keep running and to grow	−$11M	−$9M	−$8M	−$9M	−$13M
Owner earnings	$97M	$53M	($1M)	($4M)	$28M
Owner-earnings marginowner earnings ÷ revenue	27%	11%	0%	-1%	6%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $32M), owner earnings is nearer $65M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 3.7×

Adequate

Operating income $14M ÷ interest expense $4M

What this means
Comfortable in a normal year, but below the margin of safety Graham looked for. Worth checking how stable the coverage has been across a full cycle.
How heavy is the debt, net of cash? +$83M

Net cash

Cash $124M + ST investments $71M − debt $112M

What this means
Cash and short-term investments exceed every dollar of debt by $83M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 136d

Long (60+ days)

DSO 87 + DIO 94 − DPO 45 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital -1%

Below average through the cycle

8-yr median, range -20%–11%; the latest year is left out — large non-operating charges put its operating line well above pretax profit

Industry peers: median -30%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 8 years, so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 1%

Thin through the cycle

10-yr median margin, range -4%–27%; latest $97M = operating cash $108M − maintenance capex $11M

Industry peers: median -9%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 27% of revenue this year, a 1% median across 10 years. Treating stock comp as the real expense it is (less $32M of SBC) leaves $65M.
Are earnings backed by cash? $108M

Loss, but cash-generative

Net income ($43M) · cash from operations $108M

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? 82%

Returns about half

Dividends + buybacks $79M ÷ Owner Earnings $97M

What this means
Of $97M Owner Earnings, $79M (82%) went back to shareholders, $0 dividends, $79M buybacks. Net of $32M stock comp, the real buyback was about $47M. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 1.00×

Maintaining

Capex $11M ÷ depreciation $11M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $361M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 2.50×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $112M vs $296M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 6 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.25/share (latest year $-0.40), the averaged base the calculator's gate runs on, and book value is $3.53/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 4 of 10

What this means
Lost money in 6 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −13% → 9% (3-yr avg ends)

In the filing’s words The margin widened even though the filing names price competition — the gain came from volume or cost, not pricing power. Read where.

What this means
Through the cycle the operating margin widened — about −13% early to 9% lately, median 3% — pricing power intact or improving.
Reinvestment, incremental ROIC —

What this means
The reinvested base moved too little against the change in profit to read a reliable return on it here — the figure would be a small-denominator artifact, not a moat. Judge this one on the owner-earnings record and the cash it returns instead.
Worst year 2017 · −19.8% op. margin

What this means
Operations went underwater in 2017, understand why before trusting the good years.
Share count +4.4%/yr

What this means
The share count is rising, dilution works against you on a per-share basis.
How management talks about it Promotional

What this means
The record is compounding, but the filing leans on a promoter’s vocabulary rather than the per-share, return-on-capital terms an owner uses. The results back the talk here; the register is still worth noting.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Framed as a capability

The filing positions AI as something the company uses, not something it fears.

“Our components may be subject to price fluctuations, shortages or interruptions of supply, including as a result of geopolitical instability and the use and evolution of AI.”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Apr 3, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$485M

Cash & short-term investments$115M
Receivables$83M
Inventory$51M
Other current assets$235M

Current liabilities$214M

Debt due within a year$3M
Accounts payable$35M
Other current liabilities$176M

Current ratio2.26×all current assets ÷ what's due · Graham looked for 2×

Quick ratio2.03×stricter: inventory excluded

Cash ratio0.54×strictest: cash alone against what's due

Working capital$271Mthe cushion left after near-term bills

Debt due this year vs. cash$3M due · $115M cash covered by cash on hand, no refinancing forced · both figures from the Apr 3, 2026 balance sheet

Revenue, latest quarter vs. a year ago+43.4%the freshest read on whether the business is still growing

Current ratio, recent quarters1.9× → 2.3×

Deeper floors

Tangible book value$294Mequity stripped of goodwill & intangibles

Net current asset value$135MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$131M$20M of it operating leases

Deferred revenue$37Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $310M of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$127M · 41%
Buybacks$114M · 37%
Retained (debt / cash)$68M · 22%

Returned to owners$114M
63% of the owner earnings the business produced over the span, $0 as dividends and $114M as buybacks.
Average price paid for buybacks$10.29
Across the years where the filing reports a share count, 11M shares were bought for $114M, about $10.29 each. Year to year the price paid ranged from $8.55 (2022) to $12.52 (2024); its heaviest year, 2025, paid $9.76 ($79M).
Net change in share count42.4%
The diluted count rose from 78M to 111M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record$0.00/sh
Paid no dividend over the span; it returns cash through buybacks or retains it.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Pay, as filed	“Actually paid”	Owner earnings
2021	$1.6M	$2.3M	$28M
2022	$4.8M	$7.7M	($4M)
2022	$1.5M	$1.8M	($4M)
2023	$5.1M	$5.0M	($1M)
2023	$1.9M	$1.9M	($1M)
2024	$7.0M	$6.4M	$53M
2024	$8.4M	$9.2M	$53M
2025	$6.2M	$1.8M	$97M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership1.7%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio35:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$32M
The slice of the business handed to employees in shares this year, 9% of revenue, equal to 226% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Harmonic Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

1 of the 5 tests turned up something to look into; the other 4 came back clean.

Look hereDid the share count rise anyway?42.4%
Diluted shares grew 42.4% over 2016–2025, even as the company spent $114M on buybacks. The repurchases were a treadmill: stock issued to staff outran them, so owners' slice still shrank. Read the buyback line beside this one, not on its own.

And these came back clean

Is it less profitable than it was?
Did debt outgrow the business?
Did receivables and inventory outpace sales?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

How much of the revenue rides on one buyer?
≈$215M · 54% of revenue on the largest customer (TTM)
“During the fiscal year ended December 31, 2025, one customer accounted for 54% of our net revenue.”verify →
Which reported numbers are a judgment call?
Management names Income taxes, Inventory as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Communications Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
AIOTPowerFleet Inc.	$444M	50%	-7.1%	-8%	-2%
MVSTMicrovast Holdings Inc.	$428M	10%	-34.8%	-30%	-9%
HLITHarmonic Inc.	$361M	50%	3.5%	3%	2%
PLPlanet Labs PBC	$308M	49%	-77.3%	-40%	-40%
AMSCAmerican Superconductor Corporation	$299M	15%	-23.0%	-31%	-15%
NSSCNAPCO Security Technologies Inc.	$182M	43%	13.4%	23%	9%
CLFDClearfield Inc.	$150M	40%	8.1%	9%	6%
BKSYBlackSky Technology Inc.	$107M	—	-95.8%	-36%	-64%
Group median	—	43%	-15.1%	-19%	-6%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Harmonic Inc. has delivered.

Harmonic Inc.’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Harmonic Inc. earns about $6M on its 1.6% median owner-earnings margin. This year’s 26.9% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($6M) Net of stock comp (−$33M)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+58%/yr

Owner-earnings growth · since FY2024+84%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $45M on 108M shares outstanding, per the 10-Q cover, as of 2026-05-04; net cash $4M. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh HLIT against another business →

The owners of HLIT: the meeting and the votes →

Cite: Owner Scorecard, "Harmonic Inc. (HLIT), the owner's record," https://ownerscorecard.com/c/HLIT, data as of 2026-07-09.

Manual order: ← HLIO its page in the Manual HLLY →

Industry order: ← GILT the Communications Equipment chapter JNPR →