Vecima Networks reported fiscal fourth-quarter revenue of CAD 91 million ($90.97 million), beating Wall Street estimates of CAD 84.8 million by roughly 7.3% and setting a company record.
The result, for the quarter ended June 30, 2026, came with a caveat. Adjusted earnings per share of CAD 0.21 missed the consensus forecast of $0.255 by about 17.7%, a gap driven in part by product mix and one-time charges that depressed the bottom line despite the strong top-line showing.
Revenue climbed 36% year over year and 45% sequentially, powered by the company's broadband access unit. Sales within the Video and Broadband Solutions segment rose 38% to CAD 80.1 million, with Entra DAA products generating CAD 77.3 million — up 42% annually and 57% from the prior quarter. New wins for the vCMTS solution included two tier-one accounts, among them Videotron. Commercial video sales contributed CAD 2.8 million after Terrace IQ was selected by a major North American operator for network modernization.
The Content Delivery and Storage segment grew 26% to CAD 10.8 million, split between CAD 4.9 million in product sales and CAD 5.9 million in services, including continued deployment of Phase 2 dynamic ad insertion with Hotwire Communications.
Margin expansion was the standout operational theme. Gross profit jumped to 45.4% from 26.3% a year earlier, and adjusted gross margin rose to 45% from 36.7%. Chief Financial Officer Judd Schmid attributed the improvement primarily to the absence of a large inventory write-down in the prior-year period and a shift toward higher-margin Entra Optical and software revenue.
Adjusted EBITDA more than tripled year over year to an all-time high of CAD 18.9 million, carrying a margin of 20.8%. Operating income swung from a CAD 17.1 million loss a year earlier to a CAD 12.3 million profit. Net income reached CAD 5.4 million, or CAD 0.22 per share, versus a CAD 13.3 million loss, or CAD 0.55 per share, in the year-ago period. Operating cash flow improved to CAD 24.8 million from CAD 18.9 million, and working capital stood at CAD 62.9 million as of June 30.
R&D spending accounted for CAD 12.6 million, or 14% of sales, while actual cash research investment was CAD 16.9 million, or 19% of revenue.
Shares rose 1.92% to $12.74 in extended trading following the report. The stock trades about 16.6% above its 52-week low of $9.31 and 12.1% below its 52-week high of $14.49.
Looking ahead, Vecima guided for fiscal 2027 revenue growth of 30% to 35% compared with fiscal 2026, with adjusted EBITDA margins expected to hold near 20%. Newer product lines including vCMTS are expected to become more material revenue contributors in fiscal 2028 and beyond.
The company also noted it divested its telematics business in July 2026 and announced new executive leadership appointments in August.
