Haivision Q3 2026 revenue drops 1.4% as tariffs weigh on margins

Haivision reported a revenue decline of 1.4% in its third quarter of fiscal 2026, recording CAD 34.5 million in sales—down from CAD 35.0 million a year earlier. The figure fell short of analyst expectations by approximately CAD 620,000, reflecting a 1.8% miss. Over the first nine months of the fiscal year, revenue rose 5.0% to CAD 102.3 million, though the year-over-year growth rate contrasts with the quarter’s downturn. Adjusted EBITDA plummeted 57.1% year-over-year to CAD 1.5 million, with margins contracting from 10.1% to 4.3%, while gross margins slipped 260 basis points to 69.4%. Operating losses widened to CAD 1.7 million in Q3, compared with a small profit of CAD 300,000 in the prior quarter, and the nine-month cumulative loss expanded to CAD 4.1 million from CAD 3.3 million the year before. Net losses also increased, reaching CAD 2.1 million in Q3 and CAD 4.1 million over the first nine months of the year. Total expenses averaged CAD 25.3 million over the last five quarters, with quarter-end expenses at CAD 25.7 million and nine-month expenses at CAD 76.3 million. Cash reserves rose to CAD 19.7 million at quarter-end, up from CAD 17.2 million at fiscal year-end 2025, while the company’s line of credit stood at CAD 13.9 million, within its CAD 35 million facility capacity, which remains committed through August 2028 and expandable to CAD 65 million for acquisitions. Inventory levels climbed to CAD 19.5 million, up from CAD 13.3 million at fiscal year-end 2025. Share repurchases totaled 990,000 shares for CAD 4.4 million in fiscal 2026, with 850,000 shares bought back through July 31. The company’s balance sheet showed total assets of CAD 149.5 million and liabilities of CAD 57.6 million. A 50% tariff on its Makito line—accounting for about 30% of U.S. sales—is pressuring gross margins, with management estimating a near-term impact of roughly 3%. The company is shifting fulfillment operations from Montreal to the U.S. to mitigate tariff exposure. Full-year revenue guidance remains between CAD 140 million and CAD 142 million, though executives noted it is likely closer to the lower end. Haivision’s stock fell 7.6% in after-hours trading, closing at $3.91 after a previous close of $4.23, near the bottom of its 52-week range of $3.91 to $10.40. The company’s current ratio stands at 1.64, with a P/E ratio of 83.41 and a PEG ratio of 0.29. The IBC show, scheduled for the following day, will feature Haivision’s new JPEG XS platform, Makito ONE, its first single-board/blade solution supporting JPEG XS, H.264, and H.265 encoding and decoding. The company’s recent acquisitions—including the five-year anniversary of the Haivision MCS and Haivision France (formerly Aviwest) deals—have reduced amortization expenses by CAD 600,000 and CAD 350,000 per quarter, respectively, with term loans expected to be repaid by mid-2027.