Canada's Vecima Networks Q2 revenue rises 3.5%

Vecima Networks

12/02/2026 11:09

Overview

Canada broadband solutions provider's fiscal Q2 revenue grew 3.5% yr/yr, beating analyst expectations

Adjusted EPS for fiscal Q2 missed analyst expectations

Company forecasts strong growth driven by next-gen technology deployments

Outlook

Vecima expects next-twelve-month revenue growth of 20% to 30% compared to calendar 2025

Company anticipates adjusted EBITDA margins to exceed 20% in the next twelve months

Demand expected to ramp up sharply beginning in the fourth quarter of fiscal 2026

Result Drivers

CDS SEGMENT GROWTH - Vecima's CDS segment sales rose 20.7% YoY, contributing significantly to overall revenue growth

HIGHER MARGIN PRODUCTS - Gross margin increased to 44.9% due to a higher-margin product mix and operational efficiencies

NEXT-GEN TECHNOLOGY - Anticipated growth driven by deployment of next-gen Broadband solutions and major customer design wins

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$73.70 mln
C$72.43 mln (2 Analysts)
Q2 Adjusted EPS
Miss
C$0.04
C$0.07 (3 Analysts)
Q2 EPS
C$0
Q2 Net Income
C$100,000
Q2 Adjusted EBITDA
C$10.60 mln
Q2 Gross Margin
44.90%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the communications & networking peer group is "buy"

Wall Street's median 12-month price target for Vecima Networks Inc is C$18.00, about 79.1% above its February 11 closing price of C$10.05

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBw54s9Zqa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)