On Thursday, Vecima Networks (TSX:VCM) discussed third-quarter financial results during its earnings call. The full transcript is provided below.
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View the webcast at https://event.choruscall.com/mediaframe/webcast.html?webcastid=euEs4EjY
Summary
Vecima Networks reported expectations for significant revenue growth in calendar 2026, with an anticipated year-over-year increase of 22.5% to 30% and adjusted EBITDA growth of 74% to 85%.
The company has signed a major multi-year DOCSIS 4.0 agreement with Charter Communications, expanding its collaborative partnership and driving demand for its fiber access solutions.
Third-quarter financial performance showed a slight year-over-year revenue increase to $64.8 million, with improved gross margins and adjusted EBITDA climbing to $11.3 million.
Vecima Networks achieved its highest quarterly revenue for Entra optical products in over three years, driven by strong demand for fiber-to-the-home solutions.
Management emphasized a strong long-term growth trajectory, bolstered by network upgrades and expanding customer relationships, particularly in broadband and IPTV solutions.
Full Transcript
OPERATOR
Hello, this is the Course Call Conference Operator welcome to Vecima Networks’s third quarter fiscal 2026 results conference call and Webcast. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. Analysts and institutional investors who wish to join the question queue, simply press Star and one on your touchtone phone. You will hear a tone acknowledging your request. If you’re using a speakerphone, please pick up the handset before pressing any keys. Should you need assistance during the conference call, you may reach an operator by pressing Star and zero Presenting today on behalf of Vecima Networks are Sumit Kumar, President and CEO and Judge, Mid Chief Financial Officer. Today’s call will begin with executive commentary on Vecima’s financial and operational performance for the third quarter fiscal 2026 results. Lastly, the call will finish with a question and answer period for analysts and institutional investors. The press release announcing the company’s third quarter fiscal 2026 results as well as detailed supplemental investor information are posted on Vecima’s website at www.vecima.com under the Investor Relations heading. The highlights provided in this call should be understood in conjunction with the Company’s unaudited, interim, condensed consolidated financial statements and accompanying notes for the three and nine months ended March 31, 2026 and 2025. Certain statements in this conference call and webcast may constitute forward looking statements within the meaning of applicable securities law from which Vecima’s actual results could differ. Consequently, attendees should not place undue reliance on such forward looking statements. All statements, other than statements of historical fact are forward looking statements. These statements include, but are not limited to, statements regarding management’s intentions, beliefs or current expectations with respect to market and general economic conditions, future sales and revenue expectations, future costs, and operating performance. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and or are beyond our control. Vecima disclaims any intention or obligation to update or revise any forward looking statements as a result of new information, future events or otherwise, except as required by law. Please review the cautionary language in the Company’s third quarter earnings report and press release of fiscal 2026, as well as its annual information form dated September 25, 2025 regarding the various factors, assumptions and risks that could cause actual results to differences. These documents are available on Vecima’s website at www.vesima.com under the Investor Relations heading and on SEDAR at www.sedarplus.ca at this time I would like to turn the conference over to Mr. Kumar to proceed with his remarks. Please go ahead.
Sumit Kumar (President and CEO)
Good morning and welcome everyone. Thank you for joining us in our third quarter earnings release this morning we not only reiterated our expectation of a near term resurgence of growth, but we also increased our outlook. I’m going to start today’s call with some comments on our updated outlook before moving on to an overview of our third quarter highlights. Judd will provide our financial review and then I’ll return to wrap up. Before we take questions, you’ll recall that in our last outlook we were anticipating major growth momentum for calendar 2026 with revenue increases of between 20 to 30% compared to calendar 2025. I’m pleased to report that expectations for near term customer demand have not only been confirmed, but they’ve also expanded leading to today’s upward revision. We’re now anticipating year over year revenue growth for calendar 26 in the range of 22.5 to 30% and together with an expected adjusted EBITDA margin of 20%, we’re anticipating year over year adjusted EBITDA growth of between 74 and 85% for the same period. With increased demand coalescing, a raised outlook is underpinned by customer purchase orders and forecasts with clear visibility into increased volumes in the near term. We’re already seeing this start to materialize. As we move into Q4, we continue to see strong revenue momentum that positions us to reach a new quarterly high in the near term with sustained growth expected thereafter. And that’s Q4 fiscal 26. On the broadband side, there are multiple growth drivers supporting this outlook. First, we’re broadly supplying one of our largest customers Charter Communications, as they expand their wide scale DAA network deployment using our next gen cable and fiber access technologies. These are major multi year upgrade programs encompassing our Entra Remote 5 products including our EN9000 Gap node and ERM RPD platforms, and our Entra Optical Fiber Access portfolio centered around Fiber to the Home Remote OLT nodes. As of Q3, this rollout is fully underway and it’s driving significant long term waves of demand. At the same time, we’re building on our revenue base with the launch of several new Entra products across multiple customers. Those include the EN3400, a new smaller version of the EN9000 gap node, the EEM210 standalone 2 port 10 gig EPAN module, and our Power Holdover modules. On the commercial video side of the portfolio, we’re also preparing to roll out our next generation TERRIS IQ platform as Our Lead Tier 1 customer undertakes the wholesale upgrade of its national commercial video network. This multiyear program includes upgrades to thousands of existing commercial property accounts and supports new commercial video properties and accounts added by the operator on an ongoing basis. I want to emphasize that while our outlook currently focuses on calendar 2026, the growth trajectory we see for Vecima extends well beyond that. During the third quarter we signed a major multi year DOCSIS 4.0 agreement with Charter for its Spectrum operations. That’s in addition to the major network upgrade program we’re already working on. The new agreement again expands our collaborative partnership with Chartered and covers deployment of our high value next gen Entra ERM422, which is the world’s first DOCSIS …
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