Is Harmonic (HLIT) Quietly Building a European Moat With Its XOS Streaming Platform?

• Harmonic announced that Czech Television, the Czech Republic’s public broadcaster, has adopted Harmonic’s software-based XOS Advanced Media Processor to bring transcoding in-house and upgrade its streaming workflow with AI-powered encoding, multi-profile outputs, and inclusive audio features.
• This collaboration highlights growing adoption of Harmonic’s cloud-native XOS platform in Europe, reinforcing the company’s positioning in premium, broadcast-grade streaming solutions.
• We’ll now explore how this European XOS deployment, which brings transcoding operations in-house for Czech Television, influences Harmonic’s broader investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Harmonic Investment Narrative Recap

To own Harmonic, you need to believe its broadband and cloud video software can offset customer concentration and technology change risks while it reshapes the portfolio. The Czech Television XOS win supports the video SaaS and streaming catalyst, but it is unlikely to materially change the near term risk from reliance on a few large broadband customers.

The most relevant nearby development is Harmonic’s pending sale of its Video Business to MediaKind for about US$145 million in cash, which could sharpen the focus on broadband access and SaaS. Against that backdrop, the Czech TV deployment underlines that Harmonic’s cloud native video capabilities still matter as it transitions, but the financial and execution impact will sit within a broader mix of broadband wins and potential revenue lumpiness.

Yet investors should also be aware that concentration in customers like Comcast could quickly magnify any slowdown in...

Read the full narrative on Harmonic (it's free!)

Harmonic's narrative projects $695.5 million revenue and $70.6 million earnings by 2028. This implies a 0.3% yearly revenue decline and a $2.0 million earnings increase from $68.6 million today.

Uncover how Harmonic's forecasts yield a $11.79 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community range widely, from about US$11.79 up to roughly US$175.33 per share. Against this spread of opinions, Harmonic’s dependence on a handful of major customers may have a meaningful influence on how revenue stability and long term performance actually play out.

Explore 3 other fair value estimates on Harmonic - why the stock might be a potential multi-bagger!

Build Your Own Harmonic Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Harmonic research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Harmonic research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Harmonic's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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