Revenue of $73.7M; Gross Margin 44.9%; Adjusted EBITDA of $10.6M
-- Consolidated revenue grew 3.5% YoY and 3.7% QoQ
-- Gross margin percentage strengthened to 44.9%, from 36.4% in Q2 fiscal
2025 and 42.1% in Q1 fiscal 2026
-- CDS sales of $12.3M up 20.7% YoY and 9.7% QoQ
-- Consolidated revenue momentum forecast to ramp in next twelve months as
larger scale adoption of Vecima's next-generation Broadband solutions
gets underway and expands
VICTORIA, British Columbia--(BUSINESS WIRE)--February 12, 2026--
Vecima Networks Inc. (TSX: VCM) today reported financial results for the three and six months ended December 31, 2025.
FINANCIAL HIGHLIGHTS
(Canadian dollars in millions except percentages, employees, and per share data) Q2 FY26 Q1 FY26 Q2 FY25 --------------------------------------------------- ------- ------- ------- Revenue $73.7 $71.1 $71.2 --------------------------------------------------- ------- ------- ------- Gross Margin 44.9% 42.1% 36.4% --------------------------------------------------- ------- ------- ------- Net Income (Loss) $0.1 $0.2 $(7.9) --------------------------------------------------- ------- ------- ------- Earnings (Loss) Per Share(1) $0.00 $0.01 $(0.32) --------------------------------------------------- ------- ------- ------- Adjusted Gross Margin(2,3) 46.4% 43.9% 35.6% --------------------------------------------------- ------- ------- ------- Adjusted Earnings (Loss) Per Share(1,2,4,5) $0.04 $0.05 $(0.30) --------------------------------------------------- ------- ------- ------- Adjusted EBITDA(2) $10.6 $11.5 $(0.3) --------------------------------------------------- ------- ------- ------- Employees 611 600 590 --------------------------------------------------- ------- ------- ------- (1) Based on weighted average number of shares outstanding. (2) Adjusted Gross Margin, Adjusted Earnings Per Share and Adjusted EBITDA do not have a standardized meaning under IFRS and therefore may not be comparable to similar measures provided by other issuers. Starting in Q4 fiscal 2025, we have changed our definition and calculation of Adjusted EBITDA and Adjusted Earnings Per Share. For a reconciliation of Adjusted Earnings Per Share, investors should refer to Vecima's Management's Discussion and Analysis for the three and six months ended December 31, 2025. (3) Adjusted gross margin adds back the impact of a non-cash write-down of inventories to net realizable value and warrant expense (recovery) of $1.0 million and nil, respectively, for the three months ended December 31, 2025, and $0.3 million and ($0.9) million, respectively, for the three months ended December 31, 2024. (4) Adjusted earnings per share includes non-cash share-based compensation of $0.4 million or $0.02 per share for the three months ended December 31, 2025, and $0.5 million or $0.02 per share for the three months ended December 31, 2024. The non-cash share-based compensation primarily reflects certain performance-based vesting thresholds achieved under the Company's Performance Share Unit Plan. (5) Adjusted earnings per share and Adjusted EBITDA include foreign exchange loss of $1.4 million or $0.06 per share for the three months ended December 31, 2025, and $4.3 million or $0.18 per share for the three months ended December 31, 2024. ------------------------------------------------------------------------------
"This was a rewarding second quarter that delivered significant customer progress and improved operating performance across our business," said Sumit Kumar, Vecima's President and Chief Executive Officer. "Consolidated second quarter sales of $73.7 million were up 3.5% compared to Q2 fiscal 2025 and 3.7% sequentially from Q1 fiscal 2026, reflecting solid performance in our VBS segment and significantly higher results in our CDS segment. Year-over-year profitability also rose sharply, with gross margin increasing 850 basis points to 44.9%, driven by a higher-margin product mix and increased operating efficiency with adjusted EBITDA climbing $10.9 million to 14.4% of sales. Our strategy, close collaboration with customers, and patient approach to deployment timing not only drove this strong second quarter performance, but have also laid the groundwork for significant new growth."
"Based on customer developments and market dynamics, we believe deployments of our next-generation technology are approaching a major growth inflection. With a lead North American Tier 1 BSP (Broadband Service Provider) customer on the verge of ramping up its large-scale rollout of our next-generation DAA technologies, another North American Tier 1 customer preparing for a broad upgrade to our new TerraceIQ commercial video platform, demand expected to remain strong for our high-margin, market-leading Entra Optical line of fiber-access solutions, and new products continuing to roll out, our visibility and confidence in forward growth has sharpened as we enter calendar 2026."
"Based on customer indications, we now expect next-twelve-month revenue to increase in the range of 20% to 30%, compared to calendar 2025, driven by Vecima's portfolio strength, major customer design wins, and essential DAA-based gigabit upgrades globally. The anticipated demand profile also positions adjusted EBITDA margins to break through 20% for the same period, driving adjusted EBITDA growth of 70% to 85% compared to calendar 2025."
"While recent industry consolidation activity, as previously discussed, could still constrain deliveries in the third quarter of fiscal 2026, the impact is now expected to be modest and further mitigated by a favorable product mix in the quarter. Demand is expected to ramp up sharply beginning in the fourth quarter."
"The anticipated growth and profitability expansion build on our recent achievements," added Mr. Kumar. "In our VBS segment, our solid second quarter revenue performance was paired with significantly improved gross margins. The segment's topline continued to benefit from strong uptake of our EN9000, the industry's only Generic Access Platform $(GAP)$ Node, while improved bottom-line performance reflected ongoing strength in our Entra Optical platforms for fiber-to-the-home, as well as our roll out of new DAA products, including our EN3400 compact GAP node and innovative new Entra Power Holdover Modules driving a more favorable product mix. Highlights of the quarter included continued excellent progress with our new vCMTS solutions as we move closer to deployments with our lead customer and continue to significantly increase vCMTS program engagements with customers worldwide."
"In our CDS segment, a significant increase in managed IPTV network expansions and early rollout of our new Dynamic Ad Insertion (DAI) solutions contributed to a 20.7% year-over-year improvement in segment sales paired with a very strong 65.1% gross margin. And as always, our Telematics segment was a consistent, highly profitable contributor to our Q2 results."
"As we move forward, Vecima is performing strongly and sharply focused on responding to the demand growth our customers are forecasting. While our next-generation Entra DAA cable-access products, Entra Optical fiber-access products and TerraceIQ Commercial Video solutions are expected to be at the forefront of near-term growth, we see additional multi-year opportunities for vCMTS, and in our CDS segment, IPTV and DAI. Our strategy of building the industry's broadest and deepest portfolio of innovative, interoperable next-generation fiber and cable access products and IPTV solutions, paired with our growing focus on software-centric products and platforms that will prepare customers for the 50G future, has positioned Vecima for upcoming sustained growth and strong profitability," concluded Mr. Kumar.
Financial and Corporate
-- Increased second quarter consolidated sales to $73.7 million, up 3.5%
from $71.2 million in Q2 fiscal 2025 and 3.7% from $71.1 million in Q1
fiscal 2026.
-- Second quarter gross margin increased to 44.9% (adjusted gross margin
of 46.4%), from 36.4% (adjusted gross margin of 35.6%) in Q2 fiscal 2025
and 42.1% (adjusted gross margin of 43.9%) in Q1 fiscal 2026.
-- Generated strong adjusted EBITDA (non-IFRS) of $10.6 million, compared
to an adjusted EBITDA loss of $0.3 million in Q2 fiscal 2025, and
adjusted EBITDA of $11.5 million in Q1 fiscal 2026.
-- Net income of $0.1 million or $0.00 cents per share (adjusted net
income of $0.9 million or $0.04 cents per share) improved significantly
from a net loss of $7.9 million or $0.32 cents per share (adjusted net
loss of $7.3 million or $0.30 cents per share) in Q2 fiscal 2025, and was
slightly lower than net income of $0.2 million or $0.01 cents per share
(adjusted net income of $1.2 million or $0.05 cents per share) in Q1
fiscal 2026.
-- Ended the second quarter in a strong financial position with working
capital of $49.3 million at December 31, 2025, compared to $51.2 million
at June 30, 2025. Continued focus on debt reduction lowered net debt to
$66.9 million in Q2 fiscal 2026, from a high of $92.0 million in Q3
fiscal 2024.
Video and Broadband Solutions (VBS)
-- Second quarter Video and Broadband Solutions segment sales of $59.6
million were slightly higher than the $59.3 million achieved in Q2 fiscal
2025, and up 2.8% from $58.0 million in Q1 fiscal 2026.
-- VBS gross margin strengthened significantly to 39.9% (adjusted gross
margin of 41.6%), from gross margin of 32.0% (adjusted gross margin of
30.9%) in Q2 fiscal 2025 and 37.6% (adjusted gross margin of 39.7%) in Q1
fiscal 2026, reflecting the start of anticipated gross margin
improvements based on Vecima's modelled product mix.
DAA (Entra Family)
-- Second quarter deployments of Entra DAA products generated revenue of
$56.3 million, similar to $56.2 million in Q2 fiscal 2025 and up 2.3%
from $55.0 million in Q1 fiscal 2026.
-- Total customer engagements increased to 147 MSOs worldwide at
quarter-end, from 123 a year earlier, with customer engagements
continuing to deepen. Seventy of these customers have ordered
Entra products as broader DAA deployment progresses.
-- Continued strong demand for the EN9000, the industry's only GAP
node. The EN9000 continues to gain broad adoption with customers,
widely seeding broadband networks with a future-proof platform
capable of being upgraded with multiple successive generations of
DOCSIS or FTTH technology.
-- Commenced deliveries of Entra EN3400 platforms to the lead
customer in Q2, providing a robust contribution to VBS sales. The
EN3400 builds on the success of the Entra EN9000 with a compact,
standardized multi-services GAP node with a unique form factor
optimized for enterprise and MDU (multi-dwelling unit)
applications. The EN3400 offers both line-powered and AC-powered
options, as well as an assortment of RPD (Remote PHY Devices) and
R-OLT (Remote Optical Line Terminal) options.
-- Significantly increased sales of the recently launched Entra PHM
(Power Holdover Modules). Entra PHMs provide protection from
network power fluctuations to Vecima's cable and fiber access
platforms in the field, considerably enhancing access network
resiliency and reliability.
-- Vecima's new vCMTS solution continued to advance with the lead
Tier 1 customer broadening trial activity while preparing to
modernize and enhance its DOCSIS network using Entra vCMTS.
Engagement with additional customers also continued to expand
during the quarter. Vecima's vCMTS solution is part of the Entra
Cloud platform which enables operators to transform their networks
for next-generation broadband access, including DOCSIS 4.0.
Dell'Oro Group forecasts the global market for vCMTS will be worth
approximately $350 million annually by calendar 2029. Currently,
Vecima is just one of three vendors worldwide offering a vCMTS
solution.
-- Secured first XGS-PON customer in the U.S. while continuing to
expand engagement around the globe.
-- Closed order for the EXS1610 All-PON solution with a new
European customer.
-- Continued growth in Remote MACPHY deployed base in Europe.
-- Expanded engagements for Vecima's Entra Access Test and
Automations platforms in North America and Europe.
-- Demand continued to increase across key customers for Vecima's
industry-leading SF-4X remote optical line terminals for fiber to
the home.
Commercial Video (Terrace Family)
-- Commercial Video product sales were in line with expectations and
included second quarter sales of $3.2 million (Q2 fiscal 2025: $3.0
million; Q1 fiscal 2026: $2.9 million). These results reflect the
continued transition to next-generation platforms, together with some of
Vecima's newer DAA-driven Commercial Video solutions now being accounted
for as part of Entra family sales.
-- TerraceIQ Commercial Video solution continued to gain traction with key
customers in the Americas, setting the stage for significant anticipated
growth in the next twelve months.
-- Selected by a lead Tier 1 U.S. customer to support its major
network upgrade with Vecima's TerraceIQ solution. As part of a
multi-year program, the Tier 1 customer expects to carry out a
significant evolution of its commercial video footprint nationally,
encompassing both the upgrade of Terrace QAM platforms deployed
within thousands of commercial properties today, along with
rollouts for new commercial video services contracts going
forward.
-- Secured additional TerraceIQ awards with a fiber Broadband
Service Provider in the U.S. and a Tier 1 MSO in Mexico.
Content Delivery and Storage (CDS)
-- The Content Delivery and Storage segment grew second quarter sales to
$12.3 million, up 20.7% from $10.2 million in Q2 fiscal 2025 and an
increase of 9.7% from $11.2 million in Q1 fiscal 2026.
-- Achieved strong second quarter CDS gross margin performance of 65.1%
(Q2 fiscal 2025: 56.5%; Q1 fiscal 2026: 60.7%).
-- Acceleration of IPTV customer subscriber growth, together with
significant further migration from QAM to IPTV across multiple
customers. Migration to IPTV using Vecima's MediaScale platform
offers significant advantages for both service providers and users,
including superior bandwidth efficiency, increased flexibility for
viewers, and reduced infrastructure maintenance costs.
-- Continued deployment of Vecima's Targeted Dynamic Ad Insertion
(DAI) solution which enables operators to deliver personalized
experiences and increase video average revenue per user (ARPU)
without increasing rates to customers.
Telematics
-- The Telematics segment generated second quarter sales of $1.8 million,
an increase of 5.5% from $1.7 million in Q2 fiscal 2025, and 3.2% lower
than the $1.9 million achieved in Q1 fiscal 2026.
-- Added 11 new customers for the NERO asset tracking platform
during the second quarter, booking an additional 345 new
subscriptions and bringing total asset tags under management to
over 106,000.
-- Achieved strong gross margin percentage of 71.4% (Q2 fiscal
2025: 66.5%; Q1 fiscal 2026: 67.6%).
Trade and Tariffs
-- Trade actions had a negligible impact on the 91% of Vecima's sales made
to the US in Q2 fiscal 2026. The Company's manufacturing is predominantly
domiciled in Canada, exempting that portion of its production from tariff
actions under the United States-Mexico-Canada Agreement (USMCA). While
renegotiation of the USMCA could, in an unlikely case, result in the
introduction of new tariffs affecting Vecima's products, the Company is
one of the few competitors in the industry that fully "owns" its
manufacturing process. This provides significant flexibility to adapt
quickly to changing macroeconomic conditions, including the ability to
rapidly transition manufacturing to different countries as Vecima has
demonstrated in the past.
CONFERENCE CALL
A conference call and live audio webcast will be held today, Thursday, February 12, 2026 at 1 p.m. ET to discuss the Company's second quarter results. Vecima's unaudited interim consolidated financial statements and management's discussion and analysis for the three and six months ended December 31, 2025 are available under the Company's profile at www.sedarplus.ca, and at https://vecima.com/investor-relations/financial-reports/.
To participate in the Q2FY26 teleconference, dial 1-833-752-3965 or 1-647-849-3105. The webcast will be available in real time at https://event.choruscall.com/mediaframe/webcast.html?webcastid=SBviZJrm and will be archived on the Vecima website at https://vecima.com/investor-relations/earnings-call-archive/.
About Vecima Networks
Vecima Networks Inc. (TSX: VCM) is leading the global evolution to the multi-gigabit, content-rich networks of the future. Our talented people deliver future-ready software, services, and integrated platforms that power broadband and video streaming networks, monitor and manage transportation, and transform experiences in homes, businesses, and everywhere people connect. We help our customers evolve their networks with cloud-based solutions that deliver ground-breaking speed, superior video quality, and exciting new services to their subscribers. There is power in connectivity -- it enables people, businesses, and communities to grow and thrive. Learn more at www.vecima.com.
Adjusted EBITDA and Adjusted Earnings (Loss) Per Share
Adjusted EBITDA and Adjusted Earnings (Loss) Per Share do not have a standardized meaning under IFRS and therefore may not be comparable to similar measures provided by other issuers. Accordingly, investors are cautioned that Adjusted EBITDA or Adjusted Earnings Per Share should not be construed as an alternative to net income, determined in accordance with IFRS, as an indicator of the Company's financial performance or as a measure of its liquidity and cash flows. For a reconciliation of Adjusted EBITDA or Adjusted Earnings (Loss) Per Share, investors should refer to Vecima's Management's Discussion and Analysis for the second quarter of fiscal 2026.
Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes", "may", "plans", "will", "anticipates", "intends", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release includes the following statements: Our strategy, close collaboration with customers, and patient approach to deployment timing not only drove this strong second quarter performance, but have also laid the groundwork for significant new growth; based on customer developments and market dynamics, we believe deployments of our next-generation technology are approaching a major growth inflection; with a lead North American Tier 1 BSP (Broadband Service Provider) customer on the verge of ramping up its large-scale rollout of our next-generation DAA technologies, another North American Tier 1 customer preparing for a broad upgrade to our new TerraceIQ commercial video platform, demand expected to remain strong for our high-margin, market-leading Entra Optical line of fiber-access solutions, demand expected to remain strong or our high-margin, market-leading EntraOptical line of fiber-access solutions, and new products continuing to roll out, our visibility and confidence in forward growth has sharpened as we enter calendar 2026; we now expect next-twelve-month revenue to increase in the range of 20 to 30%, compared to calendar 2025; additionally, based on customer indications, we now expect next-twelve-month revenue to increase in the range of 20% to 30%, compared to calendar 2025, driven by Vecima's portfolio strength, major customer design wins, and essential DAA-based gigabit upgrades globally; the anticipated demand profile also positions adjusted EBITDA margins to break through 20% for the same period, driving adjusted EBITDA growth of 70% to 85% compared to calendar 2025; while recent industry consolidation activity, as previously discussed, could still constrain deliveries in the third quarter of fiscal 2026, the impact is now expected to be modest and further mitigated by a favorable product mix in the quarter; demand is expected to ramp up sharply beginning in the fourth quarter; the anticipated growth and profitability expansion build on our recent achievements; as we move forward, Vecima is performing strongly and sharply focused on responding to the demand growth our customers are forecasting; while our next-generation Entra DAA cable-access products, Entra Optical fiber-access products and TerraceIQ Commercial Video solutions are expected to be at the forefront of near-term growth, we see additional multi-year opportunities for vCMTS, and in our CDS segment, IPTV and DAI; our strategy of building the industry's broadest and deepest portfolio of innovative, interoperable next-generation fiber and cable access products and IPTV solutions, paired with our growing focus on software-centric products and platforms that will prepare customers for the 50G future, has positioned Vecima for upcoming sustained growth and strong profitability; Dell'Oro Group forecasts the global market for vCMTS will be worth approximately $350 million annually by calendar 2029; TerraceIQ Commercial Video solution continued to gain traction with key customers in the Americas, setting the stage for significant anticipated growth in the next twelve months; the Tier 1 customer expects to carry out a significant evolution of its commercial video footprint nationally, encompassing both the upgrade of Terrace QAM platforms deployed within thousands of commercial properties today, along with rollouts for new commercial video services contracts going forward; renegotiation of the USMCA could, in an unlikely case, result in the introduction of new tariffs affecting Vecima's products.
A more complete discussion of the risks and uncertainties facing Vecima is disclosed under the heading "Risk Factors" in the Company's Annual Information Form dated September 25, 2025, as well as the Company's continuous disclosure filings with Canadian securities regulatory authorities available at www.sedarplus.ca. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Vecima disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
VECIMA NETWORKS INC.
Interim Condensed Consolidated Statements of Financial Position
(unaudited - in thousands of Canadian dollars)
---------------------------------------------------------------------------
December 31, June 30,
As at 2025 2025
------------------------------------------------- -------------- --------
Assets
Current assets
Cash and cash equivalents $ 3,123 $ 3,441
Accounts receivable 25,394 23,916
Income tax receivable 1,692 1,690
Inventories 101,244 110,631
Prepaid expenses and other current assets 6,738 6,685
Contract assets 2,274 1,159
------------------------------------------------- --- --------- -------
Total current assets 140,465 147,522
Non-current assets
Property, plant and equipment 11,318 10,935
Right-of-use assets 4,021 4,824
Goodwill 16,588 16,934
Intangible assets 105,260 101,610
Investment tax credits 23,045 22,157
Deferred tax assets 29,009 27,656
Other long-term assets 460 431
------------------------------------------------- --- --------- -------
Total assets $ 330,166 $332,069
------------------------------------------------- --- --------- -------
Liabilities and shareholders' equity
Current liabilities
Revolving line of credit $ 33,322 $ 33,938
Accounts payable and accrued liabilities 35,281 37,694
Provisions 1,089 874
Deferred revenue 9,073 15,226
Current portion of financial liability 462 290
Current portion of long-term debt 11,986 8,336
------------------------------------------------- --- --------- -------
Total current liabilities 91,213 96,358
Non-current liabilities
Provisions 509 460
Deferred revenue 1,540 1,755
Long-term debt 24,752 19,927
------------------------------------------------- --- --------- -------
Total liabilities 118,014 118,500
------------------------------------------------- --- --------- -------
Shareholders' equity
Share capital 24,152 24,152
Reserves 6,917 5,966
Retained earnings 179,500 181,857
Accumulated other comprehensive income 1,583 1,594
------------------------------------------------- --- --------- -------
Total shareholders' equity 212,152 213,569
------------------------------------------------- --- --------- -------
Total liabilities and shareholders' equity $ 330,166 $332,069
------------------------------------------------- --- --------- -------
VECIMA NETWORKS INC. Interim Condensed Consolidated Statements of
Comprehensive Income (Loss) (unaudited - in thousands of Canadian
dollars, except per share amounts)
-------------------------------------------------------------------------
Three months Six months
-------------------------- ----------------------------
Periods ended
December 31, 2025 2024 2025 2024
--------------- ---------- ---------- ---------- ----------
Sales $ 73,722 $ 71,223 $ 144,796 $ 153,128
Cost of sales:
Cost of
product and
services 39,577 44,981 79,575 92,366
Write-down
of
inventory
to net
realizable
value 1,052 326 2,223 675
--------------- ---------- ---------- ---------- ----------
Total cost of
sales 40,629 45,307 81,798 93,041
--------------- ---------- ---------- ---------- ----------
Gross profit 33,093 25,916 62,998 60,087
--------------- ---------- ---------- ---------- ----------
Operating
expenses
Research and
development 13,176 11,288 25,308 22,912
Sales and
marketing 9,398 7,257 18,205 16,699
General and
administrative 6,738 7,320 13,295 15,040
Restructuring
costs -- 2,798 -- 2,798
Share-based
compensation 434 462 951 1,008
Other expense 39 194 25 487
--------------- ---------- ---------- ---------- ----------
Total operating
expenses 29,785 29,319 57,784 58,944
--------------- ---------- ---------- ---------- ----------
Operating
income (loss) 3,308 (3,403) 5,214 1,143
Finance expense (2,133) (2,345) (5,034) (4,718)
Foreign
exchange loss (1,360) (4,272) (471) (3,764)
--------------- ---------- ---------- ---------- ----------
Loss before
income taxes (185) (10,020) (291) (7,339)
Income tax
recovery (298) (2,135) (608) (1,599)
--------------- ---------- ---------- ---------- ----------
Net income
(loss) $ 113 $ (7,885) $ 317 $ (5,740)
--------------- ---------- ---------- ---------- ----------
Other
comprehensive
income (loss)
Item that may
be subsequently
reclassified to
net income
Exchange
differences on
translation of
foreign
operations $ (1,173) $ 6,001 $ (11) $ 5,089
--------------- ---------- ---------- ---------- ----------
Comprehensive
income (loss) $ (1,060) $ (1,884) $ 306 $ (651)
--------------- ---------- ---------- ---------- ----------
Net income
(loss) per
share
Continuing
operations --
basic $ 0.00 $ (0.32) $ 0.01 $ (0.24)
Discontinued
operations --
basic $ 0.00 $ (0.32) $ 0.01 $ (0.24)
--------------- ---------- ---------- ---------- ----------
Weighted
average number
of common
shares
Shares
outstanding --
basic 24,314,594 24,311,812 24,314,594 24,312,185
Shares
outstanding --
diluted 24,314,594 24,311,812 24,315,025 24,312,185
--------------- ---------- ---------- ---------- ----------
VECIMA NETWORKS INC.
Interim Condensed Consolidated Statements of Changes in Equity
(unaudited - in thousands of Canadian dollars)
-------------------------------------------------------------------------------
Accumulated
other
comprehensive
Share Retained income
capital Reserves earnings (loss) Total
-------------- ------- ---------- --------- ------------------ -----------
Balance as at
June 30,
2024 $24,117 $ 4,120 $204,968 $ 1,755 $234,960
Net loss -- -- (5,740) -- (5,740)
Other
comprehensive
income -- -- -- 5,089 5,089
Dividends -- -- (2,674) -- (2,674)
Shares issued
by exercising
options 23 (6) -- -- 17
Share-based
payment
expense -- 1,008 -- -- 1,008
-------------- ------ ----- ------- --- ------- ---- -------
Balance as at
December 31,
2024 $24,140 $ 5,122 $196,554 $ 6,844 $232,660
-------------- ------ ----- ------- --- ------- ---- -------
Balance as at
June 30,
2025 $24,152 $ 5,966 $181,857 $ 1,594 $213,569
Net income -- -- 317 -- 317
Other
comprehensive
loss -- -- -- (11) (11)
Dividends -- -- (2,674) -- (2,674)
Share-based
payment
expense -- 951 -- -- 951
-------------- ------ ----- ------- --- ------- ---- -------
Balance as at
December 31,
2025 $24,152 $ 6,917 $179,500 $ 1,583 $212,152
-------------- ------ ----- ------- --- ------- ---- -------
VECIMA NETWORKS INC.
Interim Condensed Consolidated Statements of Cash Flows
(unaudited - in thousands of Canadian dollars)
--------------------------------------------------------------
Three months Six months
-------------------- ----------------------
Periods ended
December 31, 2025 2024 2025 2024
---------------- ------- ------- ------- -------
OPERATING
ACTIVITIES
Net income
(loss) $ 113 $ (7,885) $ 317 $ (5,740)
Adjustments for
non-cash items:
Loss on sale
of property,
plant and
equipment 22 79 34 99
Depreciation
and
amortization 7,163 6,158 14,071 11,728
Share-based
compensation 434 462 951 1,008
Warrant
expense
(recovery) 49 (871) 181 (765)
Write-down
(recovery)
of inventory
to net
realizable
value 979 (1,340) 2,092 (829)
Income tax
expense (1,106) 983 401 2,923
Deferred
income tax
recovery 808 (3,118) (1,009) (4,522)
Interest
expense 2,134 2,105 5,041 4,505
Interest
income (1) -- (7) (27)
Net change in
working
capital (2,548) 20,559 (4,297) 36,213
Decrease in
other long-term
assets 460 106 456 182
Increase in
provisions 255 707 264 814
Increase in
investment tax
credits (42) (45) (78) (94)
Income tax paid -- (526) (3) (1,113)
Interest
received 1 -- 7 27
Interest paid (1,940) (2,164) (4,878) (4,751)
---------------- ------- ------- ------- -------
Cash provided by
operating
activities 6,781 15,210 13,543 39,658
---------------- ------- ------- ------- -------
INVESTING
ACTIVITIES
Capital
expenditures (1,405) (395) (2,249) (1,480)
Proceeds from
sale of
property, plant
and equipment -- 56 -- 153
Business
acquisitions,
net of cash
acquired -- (3,881) -- (3,881)
Deferred
development
costs (8,615) (8,426) (15,787) (15,102)
---------------- ------- ------- ------- -------
Cash used in
investing
activities (10,020) (12,646) (18,036) (20,310)
---------------- ------- ------- ------- -------
FINANCING
ACTIVITIES
Net repayments
(draws) from
revolving line
of credit 1,574 (3,853) (616) (19,620)
Principal
repayments of
lease
liabilities (395) (418) (812) (655)
Repayment of
short and
long-term debt (400) (406) (820) (860)
Proceeds from
short and
long-term debt -- -- 10,000 --
Proceeds from
shareholder
loan -- 5,000 -- 5,000
Dividends paid (2,674) (2,674) (2,674) (2,674)
Issuance of
shares through
exercised
options -- 14 -- 23
---------------- ------- ------- ------- -------
Cash provided by
(used in)
financing
activities (1,895) (2,337) 5,078 (18,786)
---------------- ------- ------- ------- -------
Net increase
(decrease) in
cash and cash
equivalents (5,134) 227 585 562
Effect of change
in exchange
rates on cash (309) (91) (903) (342)
Cash and cash
equivalents,
beginning of
period 8,566 2,220 3,441 2,136
---------------- ------- ------- ------- -------
Cash and cash
equivalents,
end of period $ 3,123 $ 2,356 $ 3,123 $ 2,356
---------------- ------- ------- ------- -------
View source version on businesswire.com: https://www.businesswire.com/news/home/20260212188388/en/
CONTACT: Vecima Networks
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(END) Dow Jones Newswires
February 12, 2026 06:00 ET (11:00 GMT)