Vecima Networks expects revenues to surge over the following 12 months as operators, together with Constitution Communications, begin to ramp up distributed entry structure (DAA) upgrades of their broadly deployed hybrid fiber/coax (HFC) networks.
Mixed with some elevated exercise in its video portfolio, Canada-based Vecima now expects income progress within the vary of 20% to 30% within the coming 12 months in comparison with the prior 12-month interval. Vecima additionally expects this to translate to a 70% to 85% enhance in 12-month earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) in 2026 versus 2025.
“Vecima is nearing the cusp of a serious progress inflection,” Vecima President and CEO Sumit Kumar stated February 12 on the corporate’s fiscal Q2 2026 earnings name. “Whereas it is taken time to succeed in this level, a vital new part of adoption is approaching.”
Vecima’s forecast is a transparent sign that the cable tech sector is about to enter a interval of rejuvenation following a few sluggish years as operators mulled when to tug the set off on HFC upgrades. Integration of recent “unified” DOCSIS 4.0 silicon has additionally contributed to this non permanent slowdown.
The seller’s forecast jibes with expectations of Dell’Oro Group, which expects cable entry community spending to perk up this 12 months. Dell’Oro additionally anticipates broadband entry spending to peak at about $18.8 billion in 2028 amid DOCSIS and fiber upgrades and expansions.
Vecima’s up to date outlook is basically primarily based on gross sales of nodes and distant PHY gadgets linked to a community improve ramp-up by its “lead tier 1 buyer.” That buyer, which is Constitution, is within the midst of a multi-year, multi-phased improve that features DAA upgrades and the deployment of DOCSIS 4.0 to a portion of its footprint.
vCMTS a long term progress driverÂ
Constitution can be within the technique of merging with Cox Communications, which chosen Vecima’s digital cable modem termination (vCMTS) final 12 months. vCMTS trials with Cox are ongoing and Vecima is partaking with different operators about their vCMTS plans.
Constitution has chosen Harmonic for its vCMTS (Constitution is additionally shopping for Harmonic nodes for its HFC upgrades) and has not introduced if it intends to supply vCMTSs from a further vendor.
For now, Vecima sees the vCMTS as an incremental income contributor. Harmonic, the vCMTS market chief, Vecima and the newly named Aurora Networks (previously CommScope) will all be battling for share as extra operators decide their improve paths. Dell’Oro’s newest forecast sees the vCMTS market pulling in about $346 million in revenues in 2029.
On the fiber entrance, Vecima stated it secured its first XGS-PON buyer within the US, complementing its conventional give attention to 10-Gig EPON. Kumar stated Vecima’s help for XGS-PON will enhance the corporate’s complete addressable market in PON.
Teleste, one other competitor within the cable entry and outdoors plant sector, disclosed final week that it returned to progress in This fall 2025, and that 30% of its revenues at the moment are coming from North America.Â
Harmonic is scheduled to publish This fall 2025 outcomes on February 19. Vistance Networks, the mother or father of Aurora, has not introduced when it’s going to publish This fall outcomes.
Monetary snapshotÂ
Vecima posted fiscal Q2 2026 revenues of $73.7 million Canadian {dollars} (US$54.11 million), versus C$71.1 million ($52.2 million) within the year-ago quarter.
Q2 deployments of DAA merchandise clocked in at C$56.3 million ($41.33 million), about the identical because it was within the year-ago interval.