Vecima Networks (TSE:VCM) Issues Quarterly Earnings Results

Vecima Networks (TSE:VCM) posted its quarterly earnings results on Thursday. The company reported C$0.04 EPS for the quarter, FiscalAI reports. Vecima Networks had a net margin of 6.35% and a return on equity of 8.62%. The business had revenue of C$73.72 million during the quarter.

Here are the key takeaways from Vecima Networks’ conference call:

• Vecima now expects 20%–30% revenue growth over the next 12 months and forecasts 12?month Adjusted EBITDA margin to break through 20%, implying a 70%–85% increase in next?12?month Adjusted EBITDA versus calendar 2025.
• A lead tier?one broadband customer has signaled widescale deployment beginning in Q4, driving anticipated sharp demand for Entra products (including the EN9000 GAP platform and ERM RPDs) as part of a multiyear upgrade program.
• The company’s Terrace IQ commercial video platform won a national wholesale upgrade with a North American Tier?1, representing a multiyear opportunity to upgrade thousands of commercial accounts and support ongoing rollouts.
• Q2 results showed steady momentum with revenue up 3.5% YoY, gross margin improving to 44.9% (up 850 bps YoY), and Adjusted EBITDA of CAD 10.6M (14.4% margin), driven by a higher?margin product mix and cost efficiencies.
• Management cautioned about some near?term Q3 timing lumpiness from industry consolidation that could modestly affect quarterly timing before the expected Q4 ramp, while continuing to prioritize debt reduction (net debt ~CAD 66.9M) and returning cash via a CAD 0.055/share quarterly dividend.

Vecima Networks Stock Performance

Shares of VCM stock traded up C$1.00 during mid-day trading on Friday, reaching C$11.15. The stock had a trading volume of 12,977 shares, compared to its average volume of 4,135. Vecima Networks has a 1-year low of C$8.43 and a 1-year high of C$11.79. The firm has a market cap of C$271.11 million, a price-to-earnings ratio of -13.77 and a beta of 0.42. The company has a current ratio of 1.73, a quick ratio of 0.83 and a debt-to-equity ratio of 22.94. The business’s fifty day moving average is C$10.03 and its 200-day moving average is C$10.10.

Analyst Upgrades and Downgrades

Separately, Acumen Capital lifted their price target on shares of Vecima Networks from C$15.00 to C$16.00 and gave the stock a “buy” rating in a report on Friday. One analyst has rated the stock with a Buy rating, Based on data from MarketBeat.com, Vecima Networks has an average rating of “Buy” and a consensus price target of C$16.50.

About Vecima Networks

Vecima Networks Inc delivers scalable software, services, and integrated technologies for broadband access, content delivery, and telematics. The company operates in three segments: Video & Broadband Solutions, Content Delivery & Storage, and Telematics. The Video & Broadband Solutions segment delivers scalable, flexible broadband and video networks for cable and telecommunications operators to meet tomorrow’s bandwidth demands. The Content Delivery & Storage segment develops advanced applications that protect, transform, and deliver visual media.