Vecima Networks (VCM) Q2 2026 earnings summary

Executive summary

• Achieved Q2 FY26 revenue of $73.7M, up 3.5% year-over-year and 3.7% sequentially, with gross margin rising to 44.9% from 36.4% a year ago.

• Adjusted EBITDA reached $10.6M, a significant improvement from a loss of $0.3M in Q2 FY25.

• Nearing a major growth inflection, driven by industry-wide transition to next-generation DAA technology and large-scale customer deployments.

• Achieved 128% top-line revenue growth from Q1 2022 to Q2 2026, with 78% of revenue attributed to Distributed Access (Fiber + Cable Broadband).

• Over $1.3B in sales since FY 2021, accumulating market share in both fiber and cable access segments.

Financial highlights

• Q2 FY26 revenue grew 3.5% year-over-year to $73.7M; gross margin improved 850 basis points year-over-year to 44.9%.

• Adjusted EBITDA reached $10.6M (14.4% margin); net income was $0.1M, up from a net loss of $7.9M last year.

• Working capital at $49.3M, net debt reduced to $66.9M.

• $58.6M returned to shareholders in dividends since October 2014.

• Market cap approximately $255.5M CAD as of December 31, 2025.

Outlook and guidance

• Expects 20%-30% revenue growth and Adjusted EBITDA margin above 20% for the next 12 months.

• Adjusted EBITDA growth of 70%-85% year-over-year anticipated.

• Positioned to benefit from $65B+ in North American broadband subsidies, with significant growth expected in fiber deployments through 2029.

• Q3 FY26 may see modest delivery constraints due to industry consolidation, but demand expected to ramp sharply in Q4.

• vCMTS not yet factored into guidance, representing further upside.