Vecima Networks Posts Record C$95.1 Million Quarter, Adjusted EPS Up Sevenfold

Vecima Networks (TSX:VCM) reported quarterly revenue of C$95.11 million, up 37.5% year over year — a company record — with adjusted EPS (earnings per share from continuing operations, excluding one-time items) climbing to C$0.29 from C$0.04 a year earlier. The company released the results on Thursday.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) rose 72% to C$18.7 million. The gains came despite a net margin of just 1.06% and a return on equity of 1.49% for the quarter.

What drove the record quarter?

Two engines did the work, and both accelerated.

Broadband access revenue grew 39%, powered by Entra deployments — continued demand from lead customer Charter plus a widening customer base. Management counted 162 broadband customer engagements on the call.

Content delivery revenue rose 32% year over year. TerraceIQ shipments have begun for a major North American operator's modernization program, which is expected to cover thousands of locations.

The Charter rollout remains early in a long-term network upgrade, management said — though the business stays significantly exposed to that single lead customer. Management also flagged vCMTS, XGS-PON and other newer products as potential growth drivers, particularly from fiscal 2028 onward.

What happened to margins?

Adjusted gross margin fell to 41.9% from 45.0% in the prior quarter. Product mix and elevated memory costs did the damage. Management expects fiscal 2027 margins to stay below the company's 45%–49% long-term target, though greater software and fiber-product contributions could support improvement over time.

What's the forward outlook?

Management kept its fiscal 2027 guidance: 30%–35% revenue growth with an adjusted EBITDA margin of about 20%. But it shifted some Entra deliveries from late Q2 into early Q3, and it cut its calendar 2026 revenue-growth outlook to about 20%.

How did the stock and the balance sheet look?

Shares slipped C$0.03, or 0.2%, to C$13.16 on Friday, on volume of just 293 shares versus an average of 4,733. Other market data points:

• Market capitalization: C$319.99 million
• Price-to-earnings ratio: 101.23; beta of 0.26
• 52-week range: C$9.31 to C$14.49
• Fifty-day moving average: C$12.92; 200-day average: C$12.72
• Current ratio of 1.71; quick ratio of 0.83; debt-to-equity of 22.55

Dividend and insider activity

The company paid a quarterly dividend of C$0.0550 per share on Monday, November 9th, to stockholders of record that same day; the ex-dividend date was Friday, October 16th. That annualizes to C$0.22, a 1.7% yield — with a payout ratio of 169.23%, meaning dividends currently exceed reported earnings.

Insider Colin Howlett sold 5,500 shares on Wednesday, October 14th, at an average of C$13.50, for C$74,250.00 total. He retained 16,158 shares worth C$218,133, a 25.39% cut in his position. Insiders have sold 11,800 shares valued at C$159,232 over the past 90 days; corporate insiders own 57.14% of the stock.

Vecima builds intelligent infrastructure for broadband access, content delivery, cloud-native software, automation and AI-enabled solutions, helping service providers modernize cable and fiber networks.

Record revenue and a sevenfold EPS jump, but thinner margins and a trimmed 2026 outlook keep the story two-sided.