Haivision (HAI) reported its second quarter earnings for fiscal 2026.
The company says the operating environment became “meaningfully more complex” after their last call, with Middle East conflict, the Strait of Hormuz blockade, supply-chain volatility, and longer customer approval cycles all pushing revenue timing later. They stressed that none of their backlog has been cancelled, merely pushed out.
As a result, revenue came in at $32.5 million, a 5.1% decline from the prior year.
Gross margins also took a hit in Q2, falling to 68.9% (down 410 bps YoY), largely due to product mix. A large defence customer drove the biggest volume of deliveries in the quarter, but those shipments were heavily weighted toward lower-margin third-party components rather than Haivision’s own high-margin products.
About $3 million of proprietary product deliveries slipped into Q3 because of supply constraints, which would have improved Q2’s margin mix if they had shipped on time. The company expects near-term gross margins to sit closer to 70%. The reason: component costs for memory, GPUs, CPUs and other inputs continue to rise due to AI buildout elsewhere in the economy. Their cost is rising faster than customer price adjustments, so margins are squeezed.
The share price fell 25% on the headline numbers. Evidently, Mr Market wasn't looking under the hood. He can be myopic on occasions like this.
Despite the quarterly dip, first-half revenue was $76.8 million, up 8.5% year over year, and management is confident that long-term demand in defence, public safety, cybersecurity and enterprise security remains intact.
On the cost side, total expenses were $25.6 million, down $2.6 million from last year, and broadly flat with the previous quarter, keeping the company on track for its goal of maintaining expenses around this level. This suggests that as revenue picks up, operating leverage will kick in.
Operating loss was $3.1 million, flat YoY, but the half improved to a $3.3 million loss versus $5.4 million last year, a $2.1 million improvement. Adjusted EBITDA for H1 was $2.9 million, up 31% YoY.
From August onward, amortisation on the MCS acquisition will end, cutting expenses by about $600k per quarter, and a further $350k per quarter will drop out next April when AVIWEST technology amortisation ends. These are non-cash expenses but they are depressing short-term earnings. When they disappear, expect a step change to the upside.
The company ended the quarter with $18.1 million in cash, a $1.1 million increase from the prior quarter, and its credit facility remains strong at $35 million with only $5.1 million drawn, recently extended to August 2028 and expandable to $65 million.
Inventory rose to $15.1 million, up $3.2 million this quarter, as Haivision is deliberately building stock to protect against tight supply and rising component prices. When the supply pressures ease, this cycle will reverse.
In response to cost pressures, they’ve decoupled hardware from software in their server offerings (servers are now quoted as a separate line item), which protects margins but could reduce reported revenue by up to around $2 million if customers source servers independently.
Pricing increases on servers and other products have been announced and will start flowing through in Q3 and become more visible in Q4 and next fiscal year.
Notably, the company renewed its NCIB in January 2026, allowing it to purchase up to 1.8 million shares (almost 10% of shares outstanding at today's depressed price), and in May alone acquired over 200,000 shares for $1.2 million. While some of this activity is offset by stock based compensation grants, the share count is likely to reduce significantly in the year ahead which will be hugely accretive to shareholder returns.
Management lowered its full-year FY2026 revenue guidance to $140–$142 million and expects some continued volatility quarter to quarter, but they reaffirmed a long-term target of consistent double-digit revenue growth and a path to roughly 20% EBITDA margins by fiscal 2028–2029.
They reported no programme cancellations, only timing shifts, and highlighted a pipeline of multimillion-dollar opportunities, especially in NATO and Five Eyes markets.
The next 12–18 months will see a wave of new products: KX1, Kobra, Play ISR Premium, new transmitters and the Makito ONE platform, along with ecosystem software like HUB 360 designed to increase stickiness and margin.
For investors, the key watch points are whether pricing actions and the shift to software-only VM options restore gross margins, how the large defence programme ramps in FY28, and whether supply-chain pressures ease enough to reduce the need for further inventory builds.
Today's large drawdown may be Mr Market offering another wonderful buying opportunity. Short term volatility is priced in. The long-term investment thesis is still in tact.
Strong top line growth is anticipated to continue for years to come (high single digit to low teen percent annual increases).
For FY25, Q1 and Q2 were soft, as per guidance due to the drag of restructuring factors, but Q3 and Q4 demonstrated the benefits of the restructuring beginning to flow through strongly.
FY26 guiding to $150m top line revenue, ultimately trending towards the long-term target of 20% EBITDA margin (hope to achieve this in FY27).
Share repurchases continue as the management consider the company undervalued.
Higher revenues, stronger margins, lower share count and scope for a re-rating of the earning multiple means that all four engines of shareholder return (which have a multiplicative effect) are present.
Space is a new growth area. SpaceX, Blue Origin and NASA are all clients
Investment thesis still very much in tact.
If we assume, conservatively, FY27 top line is $160m (vs FY25 $138m)
And we assume that target adjusted EBITDA margin of 20% is achieved (vs Q4 25 at 17.6%)
That gives adjusted EBITDA of $32m (vs FY25 £12.8m and FY24 $17.3m - targeted investments in sales and marketing and in product realization to support sustained revenue growth has resulted in short term pain for long term gain)
Are these assumptions realistic?
Q4 25 saw revenue reach a record of $40.2 million (+33% YoY), and adjusted EBITDA of $7.0 million, marking a second consecutive quarter of double-digit revenue growth and double digit Adjusted EBITDA margins. Although Q4 is typically the strongest quarter and should not be used to extrapolate annualized numbers, with another two years of strong growth until FY27, so the assumptions above appear to be entirely realistic.
The company remains focused on maintaining disciplined expense management to strengthen its operating leverage, and the shift to a capital light model makes the 20% adjusted EBITDA margin also entirely realistic.
Something else to note is that management is offering forward guidance for FY26 at a time when Q1 26 is almost at an end. So they have visibility on one quarter of the year already. We are not yet privy to Q1 numbers, but reading between the lines, management clearly likes what is is seeing.
The business is capitalized at $155m CAD and has an EV of $159m CAD. This implies a FY27 forward EV/EBITDA of 4.9x.
How does that compare to its competitors? Many are not publicly listed (e.g. Wowza Media and Telestream), but Akamai Technology trades at 9x. Brightcove was taken private by Bending Spoons in February 2025 at 11x.
The current Haivision valuation looks absurd to me. I'll leave you to decide for yourself.
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VERBATIM EXCERPT FROM THE PRESS RELEASE
"We are experiencing significant global momentum, reflected in a strong opportunity pipeline, rising core-product revenue, and major wins in defense, ISR, control-room environments, and private 5G networking," said Mirko Wicha, President and CEO of Haivision. "New products such as the KX1, our AI enabled high-performance edge processor for the defense and ISR markets and the Falkon X2 began shipping this last quarter and are already driving excitement and growth opportunities. Our Falkon platform also marks the beginning of fully transitioning our entire transmitter product line to our next generation advanced private 5Gtechnologity, further enhancing our price competitiveness."
"In 2025, we made targeted investments in sales and marketing and in product realization to support sustained revenue growth, and those initiatives are clearly delivering results," said Dan Rabinowitz, EVP and Chief Financial Officer. "Our fourth quarter revenue reached a record of $40.2 million—up 33% over last year. Adjusted EBITDA of $7.0 million and margins of 17.6%, marking our second consecutive quarter of double-digit revenue growth and double digit Adjusted EBITDA* margins. As we move forward, we remain focused on maintaining disciplined expense management to strengthen our operating leverage."
Financial Results for Q4 FY25
Three months ended October 31, 2025. Revenue for the three months ending October 31, 2025 was $40.2 million, an increase of $10.0 million or 33.3% from the prior year comparable period. Strong growth in our sales pipeline in the second half of the year and timely introduction of new products have translated to significantly higher revenues. Gross Margin* for the quarter was 73.0%, comparable to the prior year. Total expenses for the quarter were $25.4 million, representing an increase of $3.7 million when compared to the prior year comparative period. The year-over-year increase is largely related to increases in compensation related expenses most of which was invested in sales personnel to support revenue growth and Research and development to support our new products introductions and to a lesser extent Operations and Support to support the growth.
For the three months ended October 31, 2025, the $10.0 million increase in revenue translated to $7.3 million in incremental gross profits which more than offset the $3.7 million increase in total expenses. The results was an Operating profit of $3.9 million, an increase of $3.6 million from the prior year comparative period. Similarly, Adjusted EBITDA* for the three months ended October 31, 2025 was $7.1 million, an increase of $4.1 million when compared to the prior year comparative period. The Adjusted EBITDA margin* for the three months ending October 31, 2025 was 17.6% compared to 9.8% for the prior year comparative period.
Net income for the three months ended October 31, 2025, was $3.4 million compared to $2.1 million for the prior year comparative period.
Recent Company Highlights
- Haivision & France Télévisions push the boundaries of Private 5G for Live Production with IBC2025 Accelerator Media Innovation Programme.
- Haivision Command 360 Video Wall Solution Now Listed on the US Department of Veterans Affairs TRM.
- Haivision wins NAB Product of the Year 2025 and Best In Show for IBC 2025 for the Falkon X2 video transmitter.
- Haivision announced the new Kraken X1 Rugged which unleashes uncompromising power and AI-driven intelligence in tough operational environments.
- Haivision unveils Falkon X2: Pushing the Boundaries of 5G Video Transmission for Live Broadcasting.
- Published its sixth annual Broadcast Transformation Report, highlighting the state of technology adoption in the broadcast industry.
- Haivision wins ISE Best in Show award for Haivision Command 360 video wall solutions for operations centers.
- Awarded the IBC Innovation Award for its live video contribution solution over private 5G networks at the summer games in Paris.
- Haivision joins consortium with Airbus Defense and Space to develop new technologies for rapid, secure, and reliable communications.
I thought that the recent earnings release was very positive. The turnaround to a capital light model is all but complete and the benefits will now start to flow through the numbers. I think the first time we see a significant uptick will be in the next quarterly numbers (January). The only thing that made me a little uneasy was the jump in stock based compensation - I don't like that, but it seems to be prevailant in the market these days. SBC isn't egregious at Haivision, but I like to see executives investing their own capital rather than being gifted stock. Contrary to popular belief, it doesn't align interests.
All in all I am exceptionally bullish. This is such an undervalued stock that I expect it will 2x to 3x over the next 12-18 months.
I agree with you that the turnaround is as good as complete and that Haivision will publish further improved figures in January. Thanks to the high gross margin and improved efficiency, there is still plenty of room for EBITDA margins to grow. I think we can move towards 20%, as promised by management. Miroslav Wicha seems to be a good ‘jockey’ and has already proven in the past that he can increase company value.
It truly would be much more positive if SBCs did not continue to rise at this rate. Real commitment comes when you put your own money on the line and buy shares, not at the expense of other shareholders. It is always easy to buy something with other people's money. They are buying back shares, but I am not a fan of buybacks if they only serve to offset the SBCs. In my view, this is something to keep an eye on.
I was a little surprised by the few questions from analysts during the earnings call. I would have liked to see a question about the SBC increase in particular.
Nevertheless, I am also confident that Haivision will surprise us positively in the future and I am also very bullish given the real undervaluation. They are in the market at the right time with the right product, a committed management team and a vision to achieve great things. That makes me positive in the long term.
I agree with all that you have said. It is also worth pointing out that they are also ripe to be acquired. It seems odd that no one has tried to do so already.
In 2023, Haivision rejected an unsolicited non-binding indication of interest from Evertz Technologies. The board rejected the offer because it wasn't in the best interests of the company and its holders. It truly was a bad offer.
Perhaps the future will bring better offers from someone else. Autumn is known to be harvest time, when ripe fruit is harvested ;)
Haivision encountered headwinds this quarter stemming from trade policy developments and foreign exchange volatility. The imposition of broad-based U.S. tariffs, particularly a 10% tariff on transmitter products manufactured in France, created a degree of uncertainty. While the impact so far has been contained, largely because Haivision’s French-made transmitters are only just beginning to scale in the U.S., the company has already taken steps to mitigate future risk. As a Canadian company, Haivision benefits from tariff-free treatment under the USMCA for its domestically manufactured proprietary products sold into the U.S., putting it at a relative advantage compared to international competitors. Nonetheless, the company recorded $1.8 million in extra expenses this quarter due to currency fluctuations. A significant portion of this, approximately $1 million, came from the Canadian dollar’s drop during tariff uncertainty and its subsequent rebound, with an additional $800,000 posted as a foreign exchange loss related to asset and liability revaluation. Despite the noise, management is confident that its current supply chain, pricing structure, and customer receptivity will help buffer any ongoing tariff-related risks.
Business Momentum and Strategic Growth Outlook
Q2 2025 marks a turning point in Haivision’s business transformation. Revenue reached $34.3 million, up 22% sequentially, reflecting early benefits of the company’s strategic shift away from its historical role as a systems integrator toward a focus on proprietary product manufacturing. This transition has begun to show in margin performance, with gross margins improving to 73% from 71.7% a year ago. Recurring revenue, driven by maintenance, support, and cloud services, rose 11% year over year to $7.2 million in the quarter and now accounts for over 21% of total revenue.
With the operational efficiency phase now behind it, Haivision is focused squarely on growth. The company is investing in next-generation product development across both its mission and broadcast verticals. On the mission side, Haivision launched the Kraken X1, a rugged AI-enabled video processing device tailored to defense and ISR (intelligence, surveillance, reconnaissance) applications, developed in partnership with Shield AI. On the broadcast side, Haivision unveiled the Falcon X2, its next-generation 5G-enabled transmitter platform, which supports private networking and is designed to undercut competitor pricing while delivering superior performance.
Another important product launch is scheduled for later this year: the next-generation Makito (NGX), which will offer full Genlock synchronization and new codecs aimed at the sports broadcasting market. These innovations are expected to open up additional revenue streams beginning in the second half of fiscal 2026, with full momentum anticipated in 2027 and beyond.
The CNN Win: A Game-Changer in Wireless Broadcasting
The highlight of the quarter was a $5.5 million contract win with Warner Bros. Discovery to replace CNN’s entire LiveU-based electronic newsgathering infrastructure with Haivision’s wireless ecosystem. The deal includes more than 300 transmission units across Haivision’s Pro Series 300 and 400, Air 300s, RAC 400 systems, Makito encoders, Mojo Pro mobile player licenses, Live Guest software, and the StreamHub control system, fully integrated with Haivision’s Hub360 cloud platform.
Most of the hardware was shipped at the end of April or is in transit now, meaning the bulk of the revenue will be recognized in Q3 2025. A significant service and data usage component will be recognized over the next 12 months as systems are activated, contributing to deferred revenue.
Strategically, this win is transformative. CNN had used LiveU products exclusively for over 18 years. According to management, CNN made the switch due to Haivision’s technological superiority, especially the seamless orchestration offered by Hub360, transparent pricing (a particular pain point with the prior vendor), and high levels of customer service and reliability. Perhaps most crucially, this deal has triggered fresh interest from other Tier 1 broadcasters, many of whom already use Haivision’s wired solutions but had not previously considered its wireless offerings. Management believes this contract could act as a catalyst for broader market adoption, predicting strong transmitter segment growth over the next 18–24 months.
Investor Questions and Management Commentary
Analyst questions on the call focused on gross margin improvements, pipeline visibility, and the CNN deal’s strategic ramifications.
Management attributed higher margins to the completed shift away from low-margin third-party integrator components and the spreading of fixed production costs over growing revenue. They also reported that the sales pipeline is the strongest in the company’s 21-year history, with a growing list of large-scale, multimillion-dollar opportunities across both the mission and broadcast segments.
Analysts probed the timing of revenue conversion from these opportunities. Management clarified that while broadcast sales typically convert within one or two quarters, mission sales can take three to four quarters, sometimes longer, to turn into revenue, due to the complexity of defense and control room deployments. Nevertheless, the second half of fiscal 2025 is expected to outperform the first, and the ramp-up from new product introductions and large wins like CNN should drive sustained growth into fiscal 2026 and 2027.
Other topics raised included the health of U.S. government spending, which management characterized as stable to positive, with no cancellations or delays in defense programs. There was also discussion around the company’s international growth strategy, particularly in the control room space. Haivision has begun expanding its global partner training initiatives and expects international momentum to build through the back half of 2025 and into 2026.
On the leasing side, the company acknowledged that long-term rental of transmitter products is more developed in Europe than in North America. However, Haivision remains committed to this model and is actively exploring expansion through inventory investment and channel partnerships.
In summary, a very positive earnings call demonstrating that on a discounted future cash flow basis, the company looks exceptionally cheap.
Haivision Update following Q1 2025 earnings release 13th March 2025
The key points are not in the headline numbers but in reading between the lines.
The news was good, but the market has reacted badly creating yet another interesting entry opportunity.
Strategic Developments
- Completed two-year strategic plan for EBITDA and profitability transformation
- Investing in AI technology, including partnership with Shield AI
- Developing next-generation 5G transmitters and antennas. Expanding into new markets with small lightweight two-antenna private 5G solution
- Introducing new Makito product for broadcast and sports market, due H2 2025. The company is still investing in product development and there will be introductions of new products and services throughout the year
- Transitioning from integrator to manufacturer model in control room market - the negative impact of this on short-term revenues is the price that the company accepted. It is short-term pain for long-term gain. The pain is largely behind us now and the benefits are beginning to show through and will accelerate through 2025 and become very visible in 2026
Market Outlook
- Q1 FY2025 marked the bottom of the revenue curve - although figures for Q2 were not provided, the company is half way through Q2 and has visibility internally on how revenues are improving. Reading between the lines, the company knows that Q2 onwards will be strong - not only sequentially against a weak Q1, but also on a year on year basis.
- Expecting significant revenue increase in second half of fiscal year and throughout FY2026
- Strong order and revenue increase observed in control room market
- Projecting return to long-term CAGR of approximately 20% per year
- Anticipating high growth for fiscal 2026 and beyond, driven by control room sales and US Navy program augmented by revenue from other initiatives
Conclusion
Revenues strengthening, as are margins, which bodes well for the business. Management reiterates that the market valuation significantly undervalues the company and so it will continue repurchasing stock. As such, the normal course issuer bid has been renewed for share repurchases. If you value a company based on the discounted value of future cash flows, the intrinsic value of this business is unaffected by the earnings of a single quarter, which were largely expected to be soft. This reminds me of the comment Steve Jobs once made on an earnings call to an analyst, "this quarters earnings were baked in a year or two ago, I am currently working on earnings 5 years from now."
Investment thesis is still intact, the myopic viewpoint of the market based on a single quarter's earnings creates a very attractive entry opportunity.
Annual revenue for 2024 was $129.6 million, reflecting a $10.3 million decrease from 2023, which was largely anticipated. The decline stems from the company’s strategic shift from systems integration to manufacturing and its decision to exit certain markets, such as the house of worship sector.
The house of worship segment alone accounted for over $8 million of the revenue decrease. Management deliberately exited this low-margin market, where solutions like Zoom, Google Meet, or Microsoft Teams are more cost-effective and sufficient for customer needs. Competing in a commoditized space like this wasn’t viable for Haivision, and exiting it was a sound decision. Similarly, the low-margin systems integration segment is now managed by channel partners.
With this restructuring completed, Haivision has positioned itself for growth by focusing on high-margin business lines, bolstered by recent acquisitions. A short-term revenue delay due to U.S. federal budget approvals and government procurement issues—exacerbated by the ongoing administration change—was noted. Importantly, this is a timing issue, with delayed revenue expected to flow into 2025.
Gross Margins
Despite revenue challenges, gross margins improved to 73.1%, up from 70.5%, driven by supply chain efficiencies and cost-saving measures.
Profitability
Operating profit surged 345% to $5.5 million, while adjusted EBITDA grew 17% to $17.3 million, underscoring the success of restructuring efforts that reduced annual expenses by $8.2 million.
Net income reached $4.7 million, a significant turnaround from a $1.3 million loss in 2023. Adjusted EBITDA margins improved to 13.4% from 10.6% last year, with a near-term target of 20%, signaling significant upside potential.
However, Q4 challenges from delayed government revenues impacted adjusted EBITDA margins, which dipped to 9.8% compared to 15.9% in Q4 2023. This short-term headwind dragged on annual improvement but is expected to reverse in 2025, supported by new product launches and cross-selling opportunities from recent acquisitions.
Achievements in 2024
In addition to the completion of the two year strategic transition of the business, Haivision achieved several milestones in 2024, including receiving a $61.2 million U.S. Navy production agreement for advanced combat visualization systems and winning industry awards for innovation in live video and cloud-based production solutions. It also joined the Panasonic Partner Alliance for live video production workflows with Kairos; joined the Sony Cloud Production Platform for low latency live video in the cloud; and partnered with Grabyo, a London-based live cloud production platform, enabling integrated solution for live multi-camera productions. The company is also at the forefront of technology for transmitting live video over 5G networks as was showcased at the Paris Olympics. France Television provided exclusive coverage of the Paris 2024 Olympic surfing competition utilizing Haivision's private 5G video transmission ecosystem, for which it was awarded the IBC Innovation Award.
Future Outlook
Management remains optimistic about returning to historical revenue growth rates exceeding 15% by 2026. CEO Mirko Wicha emphasized Haivision’s strategic repositioning and readiness to capitalize on growth opportunities in 2025 through product innovation and increased demand in key markets.
While no major M&A activity is planned for 2025 (barring exceptional opportunities), the company is building cash reserves for potential acquisitions in 2026 and beyond. Haivision maintains access to a $35 million revolving credit facility (expandable to $60 million), with minimal utilization to date.
The company spent $3.6 million on share buybacks during the period but prioritizes cash accumulation to support its growth strategy and consolidate its position as a market leader.
My View
I remain incredibly bullish. This is a great market leading company in a growing market with great management available at a great price. It's exactly what I look for. It is a large position in my portfolio.
Please make your own investment decisions - this is not to be construed as investment advice. It is for information purposes only.
16 Jan 2025 - Unbelievable market reaction today to the Haivision numbers published last night. Looks like a knee jerk reaction to the headline numbers without an understanding of the fundamentals. Interesting entry opportunity today.
I am not comparing Haivision to Apple. I simply said that Haivision's equipment was not the cheapest but people are prepared to pay for quality just as they do with an iPhone.
Here's the thing. If you are the US Navy, or NASA or the NYSE or Riot Games or ESPN and having a reliable, secure, real time video service is mission critical, why would you switch from someone who has always delivered that service exceptionally well and is considered a market leader? There is no cost incentive to switch. The cost of the Haivision service is tiny relative to the opportunity cost associated with the risk of switching. This makes the service incredibly sticky with good recurring revenue and repeat custom. The high gross margin is evidence of this.
As you point out, the high gross margin is durable and even climbing, yet in recent years the EBITDA margin has been way off (your 9.8% is a cherry picked single quarter, look at the trend - single digit has increased to mid-teens and is forecast to breach 20%). There is lots of operating leverage in the business, it is also increasing its software/cloud segment which offers higher profit margins, and as it scales it will enjoy economies of scale. This is at the heart of my investment thesis. Gradually the EBITDA margins will be pulled higher and higher. Akamai, a competitor, enjoys EBITDA margins in the mid 20s and only has gross margins in the 60s. Haivision ought to be able to achieve mid 20s and perhaps even 30s in time.
There is a great deal of value in this business. It will start to show in the numbers in H2 2025 and FY25 numbers. 2026 will be even better.
With margins improving, and top line growing at 15-20%, that's a powerful combination for organic growth. The company also wants to continue with accretive acquisitions, so another avenue for growth (did you watch the video embedded in the analysis under the acquisitions heading?)
Haivision (HAI) reported its second quarter earnings for fiscal 2026.
The company says the operating environment became “meaningfully more complex” after their last call, with Middle East conflict, the Strait of Hormuz blockade, supply-chain volatility, and longer customer approval cycles all pushing revenue timing later. They stressed that none of their backlog has been cancelled, merely pushed out.
As a result, revenue came in at $32.5 million, a 5.1% decline from the prior year.
Gross margins also took a hit in Q2, falling to 68.9% (down 410 bps YoY), largely due to product mix. A large defence customer drove the biggest volume of deliveries in the quarter, but those shipments were heavily weighted toward lower-margin third-party components rather than Haivision’s own high-margin products.
About $3 million of proprietary product deliveries slipped into Q3 because of supply constraints, which would have improved Q2’s margin mix if they had shipped on time. The company expects near-term gross margins to sit closer to 70%. The reason: component costs for memory, GPUs, CPUs and other inputs continue to rise due to AI buildout elsewhere in the economy. Their cost is rising faster than customer price adjustments, so margins are squeezed.
The share price fell 25% on the headline numbers. Evidently, Mr Market wasn't looking under the hood. He can be myopic on occasions like this.
Despite the quarterly dip, first-half revenue was $76.8 million, up 8.5% year over year, and management is confident that long-term demand in defence, public safety, cybersecurity and enterprise security remains intact.
On the cost side, total expenses were $25.6 million, down $2.6 million from last year, and broadly flat with the previous quarter, keeping the company on track for its goal of maintaining expenses around this level. This suggests that as revenue picks up, operating leverage will kick in.
Operating loss was $3.1 million, flat YoY, but the half improved to a $3.3 million loss versus $5.4 million last year, a $2.1 million improvement. Adjusted EBITDA for H1 was $2.9 million, up 31% YoY.
From August onward, amortisation on the MCS acquisition will end, cutting expenses by about $600k per quarter, and a further $350k per quarter will drop out next April when AVIWEST technology amortisation ends. These are non-cash expenses but they are depressing short-term earnings. When they disappear, expect a step change to the upside.
The company ended the quarter with $18.1 million in cash, a $1.1 million increase from the prior quarter, and its credit facility remains strong at $35 million with only $5.1 million drawn, recently extended to August 2028 and expandable to $65 million.
Inventory rose to $15.1 million, up $3.2 million this quarter, as Haivision is deliberately building stock to protect against tight supply and rising component prices. When the supply pressures ease, this cycle will reverse.
In response to cost pressures, they’ve decoupled hardware from software in their server offerings (servers are now quoted as a separate line item), which protects margins but could reduce reported revenue by up to around $2 million if customers source servers independently.
Pricing increases on servers and other products have been announced and will start flowing through in Q3 and become more visible in Q4 and next fiscal year.
Notably, the company renewed its NCIB in January 2026, allowing it to purchase up to 1.8 million shares (almost 10% of shares outstanding at today's depressed price), and in May alone acquired over 200,000 shares for $1.2 million. While some of this activity is offset by stock based compensation grants, the share count is likely to reduce significantly in the year ahead which will be hugely accretive to shareholder returns.
Management lowered its full-year FY2026 revenue guidance to $140–$142 million and expects some continued volatility quarter to quarter, but they reaffirmed a long-term target of consistent double-digit revenue growth and a path to roughly 20% EBITDA margins by fiscal 2028–2029.
They reported no programme cancellations, only timing shifts, and highlighted a pipeline of multimillion-dollar opportunities, especially in NATO and Five Eyes markets.
The next 12–18 months will see a wave of new products: KX1, Kobra, Play ISR Premium, new transmitters and the Makito ONE platform, along with ecosystem software like HUB 360 designed to increase stickiness and margin.
For investors, the key watch points are whether pricing actions and the shift to software-only VM options restore gross margins, how the large defence programme ramps in FY28, and whether supply-chain pressures ease enough to reduce the need for further inventory builds.
Today's large drawdown may be Mr Market offering another wonderful buying opportunity. Short term volatility is priced in. The long-term investment thesis is still in tact.
Great write up! Thank you
Haivision Announces Results for Q4 2025, ended October 31, 2025
Jan 14, 2026, 17:02 ET
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Summary of salient points followed by verbatim excerpt from the press release
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SUMMARY
Restructuring is now complete.
Strong top line growth is anticipated to continue for years to come (high single digit to low teen percent annual increases).
For FY25, Q1 and Q2 were soft, as per guidance due to the drag of restructuring factors, but Q3 and Q4 demonstrated the benefits of the restructuring beginning to flow through strongly.
FY26 guiding to $150m top line revenue, ultimately trending towards the long-term target of 20% EBITDA margin (hope to achieve this in FY27).
Share repurchases continue as the management consider the company undervalued.
Higher revenues, stronger margins, lower share count and scope for a re-rating of the earning multiple means that all four engines of shareholder return (which have a multiplicative effect) are present.
Space is a new growth area. SpaceX, Blue Origin and NASA are all clients
Investment thesis still very much in tact.
If we assume, conservatively, FY27 top line is $160m (vs FY25 $138m)
And we assume that target adjusted EBITDA margin of 20% is achieved (vs Q4 25 at 17.6%)
That gives adjusted EBITDA of $32m (vs FY25 £12.8m and FY24 $17.3m - targeted investments in sales and marketing and in product realization to support sustained revenue growth has resulted in short term pain for long term gain)
Are these assumptions realistic?
Q4 25 saw revenue reach a record of $40.2 million (+33% YoY), and adjusted EBITDA of $7.0 million, marking a second consecutive quarter of double-digit revenue growth and double digit Adjusted EBITDA margins. Although Q4 is typically the strongest quarter and should not be used to extrapolate annualized numbers, with another two years of strong growth until FY27, so the assumptions above appear to be entirely realistic.
The company remains focused on maintaining disciplined expense management to strengthen its operating leverage, and the shift to a capital light model makes the 20% adjusted EBITDA margin also entirely realistic.
Something else to note is that management is offering forward guidance for FY26 at a time when Q1 26 is almost at an end. So they have visibility on one quarter of the year already. We are not yet privy to Q1 numbers, but reading between the lines, management clearly likes what is is seeing.
The business is capitalized at $155m CAD and has an EV of $159m CAD. This implies a FY27 forward EV/EBITDA of 4.9x.
How does that compare to its competitors? Many are not publicly listed (e.g. Wowza Media and Telestream), but Akamai Technology trades at 9x. Brightcove was taken private by Bending Spoons in February 2025 at 11x.
The current Haivision valuation looks absurd to me. I'll leave you to decide for yourself.
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VERBATIM EXCERPT FROM THE PRESS RELEASE
"We are experiencing significant global momentum, reflected in a strong opportunity pipeline, rising core-product revenue, and major wins in defense, ISR, control-room environments, and private 5G networking," said Mirko Wicha, President and CEO of Haivision. "New products such as the KX1, our AI enabled high-performance edge processor for the defense and ISR markets and the Falkon X2 began shipping this last quarter and are already driving excitement and growth opportunities. Our Falkon platform also marks the beginning of fully transitioning our entire transmitter product line to our next generation advanced private 5Gtechnologity, further enhancing our price competitiveness."
"In 2025, we made targeted investments in sales and marketing and in product realization to support sustained revenue growth, and those initiatives are clearly delivering results," said Dan Rabinowitz, EVP and Chief Financial Officer. "Our fourth quarter revenue reached a record of $40.2 million—up 33% over last year. Adjusted EBITDA of $7.0 million and margins of 17.6%, marking our second consecutive quarter of double-digit revenue growth and double digit Adjusted EBITDA* margins. As we move forward, we remain focused on maintaining disciplined expense management to strengthen our operating leverage."
Financial Results for Q4 FY25
Three months ended October 31, 2025. Revenue for the three months ending October 31, 2025 was $40.2 million, an increase of $10.0 million or 33.3% from the prior year comparable period. Strong growth in our sales pipeline in the second half of the year and timely introduction of new products have translated to significantly higher revenues. Gross Margin* for the quarter was 73.0%, comparable to the prior year. Total expenses for the quarter were $25.4 million, representing an increase of $3.7 million when compared to the prior year comparative period. The year-over-year increase is largely related to increases in compensation related expenses most of which was invested in sales personnel to support revenue growth and Research and development to support our new products introductions and to a lesser extent Operations and Support to support the growth.
For the three months ended October 31, 2025, the $10.0 million increase in revenue translated to $7.3 million in incremental gross profits which more than offset the $3.7 million increase in total expenses. The results was an Operating profit of $3.9 million, an increase of $3.6 million from the prior year comparative period. Similarly, Adjusted EBITDA* for the three months ended October 31, 2025 was $7.1 million, an increase of $4.1 million when compared to the prior year comparative period. The Adjusted EBITDA margin* for the three months ending October 31, 2025 was 17.6% compared to 9.8% for the prior year comparative period.
Net income for the three months ended October 31, 2025, was $3.4 million compared to $2.1 million for the prior year comparative period.
Recent Company Highlights
- Haivision & France Télévisions push the boundaries of Private 5G for Live Production with IBC2025 Accelerator Media Innovation Programme.
- Haivision Command 360 Video Wall Solution Now Listed on the US Department of Veterans Affairs TRM.
- Haivision wins NAB Product of the Year 2025 and Best In Show for IBC 2025 for the Falkon X2 video transmitter.
- Haivision announced the new Kraken X1 Rugged which unleashes uncompromising power and AI-driven intelligence in tough operational environments.
- Haivision unveils Falkon X2: Pushing the Boundaries of 5G Video Transmission for Live Broadcasting.
- Published its sixth annual Broadcast Transformation Report, highlighting the state of technology adoption in the broadcast industry.
- Haivision wins ISE Best in Show award for Haivision Command 360 video wall solutions for operations centers.
- Awarded the IBC Innovation Award for its live video contribution solution over private 5G networks at the summer games in Paris.
- Haivision joins consortium with Airbus Defense and Space to develop new technologies for rapid, secure, and reliable communications.
What do you think about the newest update (Q3 2025)?
I thought that the recent earnings release was very positive. The turnaround to a capital light model is all but complete and the benefits will now start to flow through the numbers. I think the first time we see a significant uptick will be in the next quarterly numbers (January). The only thing that made me a little uneasy was the jump in stock based compensation - I don't like that, but it seems to be prevailant in the market these days. SBC isn't egregious at Haivision, but I like to see executives investing their own capital rather than being gifted stock. Contrary to popular belief, it doesn't align interests.
All in all I am exceptionally bullish. This is such an undervalued stock that I expect it will 2x to 3x over the next 12-18 months.
What were your views?
I agree with you that the turnaround is as good as complete and that Haivision will publish further improved figures in January. Thanks to the high gross margin and improved efficiency, there is still plenty of room for EBITDA margins to grow. I think we can move towards 20%, as promised by management. Miroslav Wicha seems to be a good ‘jockey’ and has already proven in the past that he can increase company value.
It truly would be much more positive if SBCs did not continue to rise at this rate. Real commitment comes when you put your own money on the line and buy shares, not at the expense of other shareholders. It is always easy to buy something with other people's money. They are buying back shares, but I am not a fan of buybacks if they only serve to offset the SBCs. In my view, this is something to keep an eye on.
I was a little surprised by the few questions from analysts during the earnings call. I would have liked to see a question about the SBC increase in particular.
Nevertheless, I am also confident that Haivision will surprise us positively in the future and I am also very bullish given the real undervaluation. They are in the market at the right time with the right product, a committed management team and a vision to achieve great things. That makes me positive in the long term.
I agree with all that you have said. It is also worth pointing out that they are also ripe to be acquired. It seems odd that no one has tried to do so already.
In 2023, Haivision rejected an unsolicited non-binding indication of interest from Evertz Technologies. The board rejected the offer because it wasn't in the best interests of the company and its holders. It truly was a bad offer.
Perhaps the future will bring better offers from someone else. Autumn is known to be harvest time, when ripe fruit is harvested ;)
We’ll see.
Haivision Inc (TXE: HAI), Q2 2025 earnings summary
Tariff Disruptions and Currency Impacts
Haivision encountered headwinds this quarter stemming from trade policy developments and foreign exchange volatility. The imposition of broad-based U.S. tariffs, particularly a 10% tariff on transmitter products manufactured in France, created a degree of uncertainty. While the impact so far has been contained, largely because Haivision’s French-made transmitters are only just beginning to scale in the U.S., the company has already taken steps to mitigate future risk. As a Canadian company, Haivision benefits from tariff-free treatment under the USMCA for its domestically manufactured proprietary products sold into the U.S., putting it at a relative advantage compared to international competitors. Nonetheless, the company recorded $1.8 million in extra expenses this quarter due to currency fluctuations. A significant portion of this, approximately $1 million, came from the Canadian dollar’s drop during tariff uncertainty and its subsequent rebound, with an additional $800,000 posted as a foreign exchange loss related to asset and liability revaluation. Despite the noise, management is confident that its current supply chain, pricing structure, and customer receptivity will help buffer any ongoing tariff-related risks.
Business Momentum and Strategic Growth Outlook
Q2 2025 marks a turning point in Haivision’s business transformation. Revenue reached $34.3 million, up 22% sequentially, reflecting early benefits of the company’s strategic shift away from its historical role as a systems integrator toward a focus on proprietary product manufacturing. This transition has begun to show in margin performance, with gross margins improving to 73% from 71.7% a year ago. Recurring revenue, driven by maintenance, support, and cloud services, rose 11% year over year to $7.2 million in the quarter and now accounts for over 21% of total revenue.
With the operational efficiency phase now behind it, Haivision is focused squarely on growth. The company is investing in next-generation product development across both its mission and broadcast verticals. On the mission side, Haivision launched the Kraken X1, a rugged AI-enabled video processing device tailored to defense and ISR (intelligence, surveillance, reconnaissance) applications, developed in partnership with Shield AI. On the broadcast side, Haivision unveiled the Falcon X2, its next-generation 5G-enabled transmitter platform, which supports private networking and is designed to undercut competitor pricing while delivering superior performance.
Another important product launch is scheduled for later this year: the next-generation Makito (NGX), which will offer full Genlock synchronization and new codecs aimed at the sports broadcasting market. These innovations are expected to open up additional revenue streams beginning in the second half of fiscal 2026, with full momentum anticipated in 2027 and beyond.
The CNN Win: A Game-Changer in Wireless Broadcasting
The highlight of the quarter was a $5.5 million contract win with Warner Bros. Discovery to replace CNN’s entire LiveU-based electronic newsgathering infrastructure with Haivision’s wireless ecosystem. The deal includes more than 300 transmission units across Haivision’s Pro Series 300 and 400, Air 300s, RAC 400 systems, Makito encoders, Mojo Pro mobile player licenses, Live Guest software, and the StreamHub control system, fully integrated with Haivision’s Hub360 cloud platform.
Most of the hardware was shipped at the end of April or is in transit now, meaning the bulk of the revenue will be recognized in Q3 2025. A significant service and data usage component will be recognized over the next 12 months as systems are activated, contributing to deferred revenue.
Strategically, this win is transformative. CNN had used LiveU products exclusively for over 18 years. According to management, CNN made the switch due to Haivision’s technological superiority, especially the seamless orchestration offered by Hub360, transparent pricing (a particular pain point with the prior vendor), and high levels of customer service and reliability. Perhaps most crucially, this deal has triggered fresh interest from other Tier 1 broadcasters, many of whom already use Haivision’s wired solutions but had not previously considered its wireless offerings. Management believes this contract could act as a catalyst for broader market adoption, predicting strong transmitter segment growth over the next 18–24 months.
Investor Questions and Management Commentary
Analyst questions on the call focused on gross margin improvements, pipeline visibility, and the CNN deal’s strategic ramifications.
Management attributed higher margins to the completed shift away from low-margin third-party integrator components and the spreading of fixed production costs over growing revenue. They also reported that the sales pipeline is the strongest in the company’s 21-year history, with a growing list of large-scale, multimillion-dollar opportunities across both the mission and broadcast segments.
Analysts probed the timing of revenue conversion from these opportunities. Management clarified that while broadcast sales typically convert within one or two quarters, mission sales can take three to four quarters, sometimes longer, to turn into revenue, due to the complexity of defense and control room deployments. Nevertheless, the second half of fiscal 2025 is expected to outperform the first, and the ramp-up from new product introductions and large wins like CNN should drive sustained growth into fiscal 2026 and 2027.
Other topics raised included the health of U.S. government spending, which management characterized as stable to positive, with no cancellations or delays in defense programs. There was also discussion around the company’s international growth strategy, particularly in the control room space. Haivision has begun expanding its global partner training initiatives and expects international momentum to build through the back half of 2025 and into 2026.
On the leasing side, the company acknowledged that long-term rental of transmitter products is more developed in Europe than in North America. However, Haivision remains committed to this model and is actively exploring expansion through inventory investment and channel partnerships.
In summary, a very positive earnings call demonstrating that on a discounted future cash flow basis, the company looks exceptionally cheap.
Haivision Update following Q1 2025 earnings release 13th March 2025
The key points are not in the headline numbers but in reading between the lines.
The news was good, but the market has reacted badly creating yet another interesting entry opportunity.
Strategic Developments
- Completed two-year strategic plan for EBITDA and profitability transformation
- Investing in AI technology, including partnership with Shield AI
- Developing next-generation 5G transmitters and antennas. Expanding into new markets with small lightweight two-antenna private 5G solution
- Introducing new Makito product for broadcast and sports market, due H2 2025. The company is still investing in product development and there will be introductions of new products and services throughout the year
- Transitioning from integrator to manufacturer model in control room market - the negative impact of this on short-term revenues is the price that the company accepted. It is short-term pain for long-term gain. The pain is largely behind us now and the benefits are beginning to show through and will accelerate through 2025 and become very visible in 2026
Market Outlook
- Q1 FY2025 marked the bottom of the revenue curve - although figures for Q2 were not provided, the company is half way through Q2 and has visibility internally on how revenues are improving. Reading between the lines, the company knows that Q2 onwards will be strong - not only sequentially against a weak Q1, but also on a year on year basis.
- Recurring revenue increased 12% year-over-year despite overall revenue decline in Q1
- Expecting significant revenue increase in second half of fiscal year and throughout FY2026
- Strong order and revenue increase observed in control room market
- Projecting return to long-term CAGR of approximately 20% per year
- Anticipating high growth for fiscal 2026 and beyond, driven by control room sales and US Navy program augmented by revenue from other initiatives
Conclusion
Revenues strengthening, as are margins, which bodes well for the business. Management reiterates that the market valuation significantly undervalues the company and so it will continue repurchasing stock. As such, the normal course issuer bid has been renewed for share repurchases. If you value a company based on the discounted value of future cash flows, the intrinsic value of this business is unaffected by the earnings of a single quarter, which were largely expected to be soft. This reminds me of the comment Steve Jobs once made on an earnings call to an analyst, "this quarters earnings were baked in a year or two ago, I am currently working on earnings 5 years from now."
Investment thesis is still intact, the myopic viewpoint of the market based on a single quarter's earnings creates a very attractive entry opportunity.
Haivision FY24 Earnings Release (15 Jan 2025)
Revenue
Annual revenue for 2024 was $129.6 million, reflecting a $10.3 million decrease from 2023, which was largely anticipated. The decline stems from the company’s strategic shift from systems integration to manufacturing and its decision to exit certain markets, such as the house of worship sector.
The house of worship segment alone accounted for over $8 million of the revenue decrease. Management deliberately exited this low-margin market, where solutions like Zoom, Google Meet, or Microsoft Teams are more cost-effective and sufficient for customer needs. Competing in a commoditized space like this wasn’t viable for Haivision, and exiting it was a sound decision. Similarly, the low-margin systems integration segment is now managed by channel partners.
With this restructuring completed, Haivision has positioned itself for growth by focusing on high-margin business lines, bolstered by recent acquisitions. A short-term revenue delay due to U.S. federal budget approvals and government procurement issues—exacerbated by the ongoing administration change—was noted. Importantly, this is a timing issue, with delayed revenue expected to flow into 2025.
Gross Margins
Despite revenue challenges, gross margins improved to 73.1%, up from 70.5%, driven by supply chain efficiencies and cost-saving measures.
Profitability
Operating profit surged 345% to $5.5 million, while adjusted EBITDA grew 17% to $17.3 million, underscoring the success of restructuring efforts that reduced annual expenses by $8.2 million.
Net income reached $4.7 million, a significant turnaround from a $1.3 million loss in 2023. Adjusted EBITDA margins improved to 13.4% from 10.6% last year, with a near-term target of 20%, signaling significant upside potential.
However, Q4 challenges from delayed government revenues impacted adjusted EBITDA margins, which dipped to 9.8% compared to 15.9% in Q4 2023. This short-term headwind dragged on annual improvement but is expected to reverse in 2025, supported by new product launches and cross-selling opportunities from recent acquisitions.
Achievements in 2024
In addition to the completion of the two year strategic transition of the business, Haivision achieved several milestones in 2024, including receiving a $61.2 million U.S. Navy production agreement for advanced combat visualization systems and winning industry awards for innovation in live video and cloud-based production solutions. It also joined the Panasonic Partner Alliance for live video production workflows with Kairos; joined the Sony Cloud Production Platform for low latency live video in the cloud; and partnered with Grabyo, a London-based live cloud production platform, enabling integrated solution for live multi-camera productions. The company is also at the forefront of technology for transmitting live video over 5G networks as was showcased at the Paris Olympics. France Television provided exclusive coverage of the Paris 2024 Olympic surfing competition utilizing Haivision's private 5G video transmission ecosystem, for which it was awarded the IBC Innovation Award.
Future Outlook
Management remains optimistic about returning to historical revenue growth rates exceeding 15% by 2026. CEO Mirko Wicha emphasized Haivision’s strategic repositioning and readiness to capitalize on growth opportunities in 2025 through product innovation and increased demand in key markets.
While no major M&A activity is planned for 2025 (barring exceptional opportunities), the company is building cash reserves for potential acquisitions in 2026 and beyond. Haivision maintains access to a $35 million revolving credit facility (expandable to $60 million), with minimal utilization to date.
The company spent $3.6 million on share buybacks during the period but prioritizes cash accumulation to support its growth strategy and consolidate its position as a market leader.
My View
I remain incredibly bullish. This is a great market leading company in a growing market with great management available at a great price. It's exactly what I look for. It is a large position in my portfolio.
Please make your own investment decisions - this is not to be construed as investment advice. It is for information purposes only.
16 Jan 2025 - Unbelievable market reaction today to the Haivision numbers published last night. Looks like a knee jerk reaction to the headline numbers without an understanding of the fundamentals. Interesting entry opportunity today.
Thank you for the question.
I am not comparing Haivision to Apple. I simply said that Haivision's equipment was not the cheapest but people are prepared to pay for quality just as they do with an iPhone.
Here's the thing. If you are the US Navy, or NASA or the NYSE or Riot Games or ESPN and having a reliable, secure, real time video service is mission critical, why would you switch from someone who has always delivered that service exceptionally well and is considered a market leader? There is no cost incentive to switch. The cost of the Haivision service is tiny relative to the opportunity cost associated with the risk of switching. This makes the service incredibly sticky with good recurring revenue and repeat custom. The high gross margin is evidence of this.
As you point out, the high gross margin is durable and even climbing, yet in recent years the EBITDA margin has been way off (your 9.8% is a cherry picked single quarter, look at the trend - single digit has increased to mid-teens and is forecast to breach 20%). There is lots of operating leverage in the business, it is also increasing its software/cloud segment which offers higher profit margins, and as it scales it will enjoy economies of scale. This is at the heart of my investment thesis. Gradually the EBITDA margins will be pulled higher and higher. Akamai, a competitor, enjoys EBITDA margins in the mid 20s and only has gross margins in the 60s. Haivision ought to be able to achieve mid 20s and perhaps even 30s in time.
There is a great deal of value in this business. It will start to show in the numbers in H2 2025 and FY25 numbers. 2026 will be even better.
With margins improving, and top line growing at 15-20%, that's a powerful combination for organic growth. The company also wants to continue with accretive acquisitions, so another avenue for growth (did you watch the video embedded in the analysis under the acquisitions heading?)
I hope this answers your question.