Vecima Networks (VCM) Q4 2025 earnings summary

Executive summary

• Achieved 112% top-line revenue growth from Q1 2022 to Q4 2025, with FY 2025 revenue at $303.4M CAD and major product advancements, new contracts, and the FalconV Systems acquisition positioning for future growth.

• Maintains #1 global market share in Remote OLTS and Remote MACPHY for the fourth consecutive year, serving over 100 operators and 100 million people globally.

• Q4 marked the first revenue from the new vCMTS solution and significant customer rollouts of next-generation platforms.

• Faced temporary gross margin pressures due to product mix, FX volatility, and non-cash charges, including $15 million in Q4 deferred development impairments and inventory write-downs.

• Adjusted EBITDA for FY25 was $60.5M CAD, reflecting resilience amid operational headwinds.

Financial highlights

• FY 2025 revenue reached $303.4M CAD, up from $291.0M in FY 2024; Q4 revenue was $68.8M, up 7.5% sequentially but down 21% year-over-year.

• Gross margin for FY 2025 was $147.0M CAD (48%); Q4 gross margin was 27.3% (adjusted: 37.4%).

• Adjusted EBITDA for FY25 was $60.5M CAD; Q4 adjusted EBITDA was $6.7M.

• Q4 net loss was $13.2M (EPS: -$0.54); full-year net loss was $17.8M (EPS: -$0.73).

• Year-end working capital was $51.2M; net debt reduced to $53.6M from $92M in Q3 FY24.

Outlook and guidance

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

• Anticipates strong top-line growth and improved gross margins in fiscal 2026, driven by new product rollouts, normalization of FX, and higher-margin products.

• VBS segment expected to lead FY26 growth as network upgrades accelerate and new products launch.

• Cox VCMTS agreement expected to drive significant TAM growth from 2025-2029.

• Multiple growth engines identified, including DAA and IPTV, with global DAA adoption ramping up.