Canadian telecom gear provider Vecima misses Q4 revenue estimates

Vecima Networks

25/09/2025 11:10

Overview

Vecima reports Q4 revenue of C$68.8 mln, missing analysts' expectations, per LSEG data

Adjusted EPS for Q4 missed estimates

Company achieved first revenue from new vCMTS solution in Q4

Outlook

Vecima expects strong top-line growth in Q1 fiscal 2026

Company anticipates improved gross margins in fiscal 2026

Vecima sees fiscal 2026 revenue growth from new technologies

EN9000 and EN3400 platforms to boost fiscal 2026 revenues

Result Drivers

VBS SEGMENT - Video and Broadband Solutions segment sales grew 22% QoQ, driven by Entra DAA product deployments

vCMTS REVENUE - Achieved first revenue from new vCMTS solution, part of Entra Cloud platform

EN9000 IMPACT - EN9000 platform rollout affected margins due to lower initial implementation phase margins

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
C$68.80 mln
C$69.20 mln (2 Analysts)
Q4 Adjusted EPS
Miss
-C$0.05
C$0.1 (2 Analysts)
Q4 EPS
-C$0.54
Q4 Net Income
-C$13.20 mln
Q4 Adjusted EBITDA
C$6.70 mln
Q4 Gross Margin
27.3%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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$15.00, about 27% above its September 24 closing price of C$10.95

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBw8zgRJSa

(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.)