Vecima Reports Breakout Q4 and Fiscal 2026 Results, Achieving Record Quarterly Revenue and Adjusted EBITDA

Q4 Revenue $91.0M; Adjusted EBITDA $18.9M; Adjusted EBITDA Margin 20.8%

Full-Year Revenue $295.0M; Adjusted EBITDA $50.4M; Adjusted EBITDA Margin 17.1%

VICTORIA, BC – (September 24, 2026) – Vecima Networks Inc. (TSX: VCM) today reported financial results for the three months and full year ended June 30, 2026.

FINANCIAL HIGHLIGHTS

“We delivered the strongest quarter in Vecima’s history with wide-scale DAA rollouts gaining momentum as a major, multi-year cycle of demand continues to build,” said Sumit Kumar, Chief Executive Officer of Vecima.

“Our fourth quarter results, which included record quarterly highs for revenue, adjusted EBITDA, and adjusted EBITDA margin, were driven by the anticipated surge in orders and record sales levels for our next-generation Entra DAA products. This included a ramp-up in shipments of our ERM3xx Remote-PHY modules, record sales for our Entra SF-4X Optical fiber-access platform, and continued market growth for our highly successful EN9000 GAP node.”

“The fourth quarter also marked significant progress for our new vCMTS cloud-based solution, as we moved into deeper trials and commercialization. During the quarter, we advanced trial activity with our lead Tier 1 customer while also signing new agreements with additional customers, including a large Tier 1 operator in Canada. With customer engagements rapidly increasing across North America and Europe, we expect vCMTS to become a more significant contributor to our fiscal 2027 results, on the path to becoming a major growth driver for Vecima in the future.”

“Our Commercial Video business added to the momentum as we signed an agreement with a major Tier 1 North American customer for TerraceIQ and secured additional design wins for this next-generation platform. And in our Content Delivery and Storage segment, we delivered double-digit growth, with fourth quarter revenue climbing 26% and full-year revenue up 12% year-over-year as managed IPTV uptake continued to expand.”

“With broad-based demand now coalescing across multiple product lines, we have greater visibility into the near-term growth trajectory for our business,” added Mr. Kumar. “Supported by customer orders and forecasts, we have again increased our outlook for calendar 2026 and now anticipate 27% to 32% revenue growth compared to calendar 2025, up from our previous forecast of 22.5% to 30.0%. Looking further ahead, we expect fiscal 2027 revenue to grow 30% to 35% compared to fiscal 2026 and we anticipate an adjusted EBITDA margin of approximately 20% in both calendar 2026 and fiscal 2027.”

“After years of disciplined and sustained strategic execution, it is deeply satisfying to be realizing the rewards of our investments in the industry’s deepest and broadest portfolio of innovative, interoperable, and increasingly software-centric cable and fiber access products and IPTV solutions. And we are simultaneously leading the way forward with new investments in a comprehensive, highly innovative, cloud-native portfolio that pave the way to the 50G future,” concluded Mr. Kumar.

BUSINESS HIGHLIGHTS 

Financial and Corporate

• Achieved record quarterly consolidated sales results with revenue climbing 36% to $91.0 million in Q4 fiscal 2026 from $66.7 million in Q4 fiscal 2025, and 45% from $62.9 million in Q3 fiscal 2026. Full-year sales grew to $295.0 million, from $278.1 million in fiscal 2025, an increase of 6%.
• Fourth quarter gross margin and adjusted gross margin (non-IFRS) climbed sharply to 45.4% and 45.0%, from 26.3% and 36.7%, respectively, in Q4 fiscal 2025. Full-year gross margin and adjusted gross margin increased to 44.4% and 45.8%, respectively, from 37.5% and 39.9%, respectively, in fiscal 2025.
• Fourth quarter adjusted EBITDA (non-IFRS) more than tripled to a record $18.9 million, from $6.2 million in Q4 fiscal 2025 and increased 78% from $10.6 million in Q3 fiscal 2026. Full-year adjusted EBITDA grew 91% to $50.4 million, from $26.4 million in fiscal 2025.
• Increased fourth quarter earnings per share to $0.22, from a loss per share of $0.55 in Q4 fiscal 2025. Full-year earnings per share increased to $0.20, from a loss per share of $0.76 in fiscal 2025.
• Ended the year in a strong financial position with working capital of $62.6 million at June 30, 2026, compared to $51.2 million at June 30, 2025. The continued focus on debt reduction lowered total net debt (non-IFRS) to $40.7 million in Q4 fiscal 2026, from $54.4 million in Q3 fiscal 2026. Longer term, total net debt has decreased significantly from a high of $92.0 million in Q3 fiscal 2024.

Video and Broadband Solutions (VBS)

• The Video and Broadband Solutions segment achieved all-time record quarterly sales of $80.1 million in the fourth quarter, an increase of 38% from $58.1 million in Q4 fiscal 2025, and up 53% from $52.2 million in Q3 fiscal 2026. Full-year VBS sales grew to a record $249.9 million, an increase of 5% from $237.9 million in fiscal 2025.

DAA (Entra Family)

• • • Increased deployments of Entra DAA products generated record quarterly Entra revenue of $77.3 million in Q4 fiscal 2026, up 42% from $54.6 million in Q4 fiscal 2025 and an increase of 57% from $49.3 million in Q3 fiscal 2026. Full-year Entra sales increased 7% year-over-year to a record $237.9 million, from $222.7 million in fiscal 2025.
      • Record quarterly sales of EntraOptical, driven by growing SF-4X R-OLT demand
      • ERM3xx RPD module shipments continued to gain momentum
    • Ramped up product deliveries under the multi-year agreement signed with Charter Communications in Q3 fiscal 2026. The agreement has expanded demand for Vecima’s DOCSIS 4.0 Remote PHY Devices (RPD), while also broadening the Company’s longstanding partnership with Charter across fiber access.
    • Secured first purchase order from a top-ten cable operator in the U.S., for the EN9000/ERM324 platform. This expands Vecima’s broadband access relationship with this North American operator and continues to drive the broad penetration of the EN9000 GAP Node in the North American market.
    • Achieved significant commercial momentum with vCMTS, Vecima’s next-generation, cloud-based DOCSIS core solution. Ended fiscal 2026 with six committed, purchasing, and/or deployed vCMTS customers, including Cox (recently acquired by Charter), Videotron, and four operators in Europe. Subsequent to the year-end, won an additional European customer, bringing total number of customers for our vCMTS solution to seven.
      • Continued to progress trial activity deployment with Cox, Vecima’s initial Tier 1 North American vCMTS customer, in preparation for upcoming field trials.
      • Signed a vCMTS agreement with Canadian telecommunications leader, Videotron, to advance the evolution of its next-generation DOCSIS network in Canada.
      • In May 2026, announced an open, interoperable DAA partnership with Teleste for European operators, extending Vecima’s vCMTS addressable market across Teleste’s operator base.
    • Total DAA customer engagements grew to 150 worldwide by year-end, an increase of 14 customers year-over-year. Seventy-seven of these customers have ordered Entra products, underscoring increased deployment of Vecima’s DAA solutions.
    • Subsequent to the year-end, announced a partnership with Furukawa Electric to deliver next-generation fiber-to-the-home (FTTH) products for Japan’s broadband market (July 23, 2026).

Commercial Video (Terrace Family)

• • • Commercial Video results were in line with expectations and included fourth quarter sales of $2.8 million and full-year sales of $11.8 million (Q4 fiscal 2025: $3.4 million; Q3 fiscal 2026: $2.9 million; fiscal 2025: $15.0 million). These results reflect the continued transition to next-generation platforms, together with some of Vecima’s newer DAA-driven Commercial Video solutions now being accounted for as part of Entra family sales.
    • Vecima’s next-generation TerraceIQ Commercial Video solution continued to gain broad traction with customers in the Americas.
      • Subsequent to year-end, signed a TerraceIQ agreement with a major Tier 1 North American operator. The customer expects to deploy TerraceIQ across its networks.
      • Secured multiple TerraceIQ design wins with customers, including three Tier 1 and one Tier 2 operators.

Content Delivery and Storage (CDS)

• The Content Delivery and Storage segment achieved fourth quarter sales of $10.8 million, an increase of 26% from $8.6 million in Q4 fiscal 2025 and slightly higher than the $10.7 million generated in Q3 fiscal 2026. Full-year sales grew to $45.1 million, up 12% from $40.1 million in fiscal 2025.
• Achieved strong full-year CDS gross margin performance of 64.3% (fiscal 2025 – 60.8%).
  • • Successfully deployed Phase 2 of Vecima’s targeted Dynamic Ad Insertion (DAI) solution with Hotwire Communications during the quarter. Vecima’s DAI solution enables operators to deliver targeted and personalized advertising experiences, increasing video average revenue per user (ARPU), without necessitating customer rate increases. The Phase 2 deployment included the first production launch of Vecima’s advertising asset workflow manager, replacing third-party systems with a more dynamic, feature-rich solution, driving higher product margins.
    • Completed the rollout of next-generation MediaScale storage solutions with four operators.
    • Selected by a Tier 2 customer for MediaScale Origin to replace a competitor’s solution during the second half.
    • Continued to modernize a key Tier 1 customer’s video infrastructure by implementing modern on-demand video control plane software
    • Expanded Vecima’s ad insertion platform with an in-house advertising workflow manager, improving DAI product margin and establishing a platform for future development.

Telematics

On July 31, 2026, Vecima closed the sale of its Telematics business to Lantronix Inc. for total cash consideration of $16.5M, subject to customary working capital adjustments. The purchase price includes $14.5M that was paid at closing and an additional $2.0M payable by the end of calendar 2026.

Vecima has met the criteria for presenting Telematics as a discontinued operation as at June 30, 2026 and as such, the results of the Telematics business segment have been classified as assets held for sale and discontinued operations. Telematics results have been removed from consolidated results and presented separately as discontinued operations in current and comparative results, except for the comparative periods in the consolidated statement of financial position. Unless otherwise indicated, all financial information represents the results from continuing operations.

Trade and Tarrifs 

While trade actions had a negligible impact on the 89% of Vecima’s sales made to the US in fiscal 2026, the Company continues to closely monitor developments in an unpredictable trade environment. Vecima is one of the few competitors in the industry that fully “owns” its manufacturing process. This provides the flexibility to adapt quickly to changing macroeconomic conditions, including the ability to rapidly transition manufacturing to different countries when needed, an agility Vecima has demonstrated in the past.

Trade policy adjustments between the US and Canada introduced in summer 2026 have had minimal impact on Vecima’s margins or competitive position, and the Company’s forward outlook reflects the present trade landscape.

CONFERENCE CALL

A conference call and live audio webcast will be held today, Thursday, September 24, 2026 at 1:00 p.m. ET to discuss the Company’s fourth quarter results. Vecima’s audited annual consolidated financial statements and management’s discussion and analysis for the three months and full year ended June 30, 2026 are available under the Company’s profile at www.sedarplus.ca, and at https://vecima.com/investor-relations/financial-reports/.

To participate in the Q4FY26 teleconference, dial 1-833-752-3965 or 1-647-849-3105. The webcast will be available in real time at https://event.choruscall.com/mediaframe/webcast.html?webcastid=3P1KR0uc and will be archived on the Vecima website at https://vecima.com/investor-relations/earnings-call-archive/.

About Vecima Networks

Vecima Networks builds the intelligent infrastructure powering the next generation of connectivity. Through broadband access, content delivery, cloud-native software, automation, and AI-enabled solutions, Vecima helps service providers modernize cable and fiber networks, deliver exceptional broadband and video experiences, and operate more intelligent, efficient networks. As operators evolve toward AI-enabled, software-driven architectures, Vecima’s platforms simplify operations, accelerate innovation, and enable the reliable, high-performance networks that connect homes, businesses, and communities around the world. Learn more at vecima.com.

Forward-Looking Statements

This news release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words and phrases such as “believes,” “may,” “plans,” “will,” “anticipates,” “intends,” “could,” “estimates,” “expects,” “forecasts,” “projects,” “outlook,” “future,” “growth,” “trajectory,” “momentum,” “visibility,” and similar expressions, including the negative of such expressions, although not all forward-looking information contains these identifying words.

Forward-looking information in this news release includes, without limitation, statements regarding: the Company’s expectations for a significant resurgence of growth in fiscal Q4 and beyond; the customer forecast-driven visibility into demand across the next several periods; the Company’s increased revenue growth outlook for calendar 2026; the Company’s expectation of 27% to 32% revenue growth in calendar 2026 as compared to calendar 2025; the Company’s expectation of an adjusted EBITDA margin of approximately 20% in both calendar 2026 and fiscal 2027; the timing, volume and impact of customer purchase orders and forecasts; anticipated increases in customer volumes in the near term; the expected impact of new design wins, customer engagements and product milestones; the Company’s anticipated growth trajectory; the anticipated impact of accelerating and wide-scale DAA adoption; the Company’s positioning for substantial value creation; the expectation that momentum will set the stage for new quarterly revenue records; the expectation that Entra fiber and cable-access products, including Entra RemotePHY, EN9000 and Entra Optical solutions, will lead near-term performance gains; the expected contribution of DOCSIS 4.0, vCMTS, IPTV and DAI solutions; the Company’s strategy to build an innovative, interoperable portfolio of next-generation fiber and cable access products and IPTV solutions; the Company’s expanding focus on software-centric products and platforms and preparation for the 50G future; expected sustained growth and financial performance scaling to new heights; the expected effect of tariffs, trade restrictions and CUSMA treatment on the Company’s manufacturing and products; and the Company’s ability to benefit from owning its manufacturing process.

Certain forward-looking information in this news release, including the Company’s expected calendar 2026 revenue growth, adjusted EBITDA margin and adjusted EBITDA growth, constitutes a “financial outlook” within the meaning of applicable securities laws. This financial outlook is provided to assist readers in understanding management’s current expectations regarding the Company’s prospective financial performance for calendar 2026 and may not be appropriate for other purposes. For purposes of this news release, “calendar 2026” refers to the twelve-month period ending December 31, 2026, and “calendar 2025” refers to the twelve-month period ended December 31, 2025. Except for non-IFRS and other financial measures expressly identified as such, the financial outlook has been prepared using accounting policies that are generally consistent with those expected to be used by the Company in preparing its historical financial statements for the applicable period.

The forward-looking information and financial outlook in this news release are based on management’s current expectations, estimates, forecasts and projections, as well as assumptions that management believes are reasonable as of the date of this news release. These assumptions include, without limitation, assumptions regarding: the timing, volume and conversion of customer purchase orders and forecasts into shipments and revenue; the absence of material cancellations, deferrals or reductions in anticipated customer orders; continued customer investment in DAA, DOCSIS 4.0, vCMTS, IPTV and DAI deployments; customer deployment schedules and purchasing patterns; the timing and success of design wins, product qualifications and customer engagements; demand for the Company’s Entra RemotePHY, EN9000, Entra Optical, DOCSIS 4.0, vCMTS, IPTV and DAI solutions; the Company’s ability to meet product development, interoperability, manufacturing, quality, supply chain and delivery milestones; expected product mix, pricing, gross margins, adjusted EBITDA margins and operating expense levels; the availability and cost of components, labour, materials and manufacturing capacity; foreign exchange rates; the Company’s ability to maintain effective supplier and customer relationships; competitive conditions in the Company’s markets; industry adoption of next-generation access and video technologies; the absence of material adverse changes in macroeconomic conditions, customer capital spending, industry consolidation, applicable laws, tariffs, trade restrictions, customs treatment, CUSMA treatment or geopolitical conditions; and the continued performance of the Company’s products and platforms in line with customer requirements.

Actual results, performance or achievements may differ materially from those expressed or implied by the forward-looking information and financial outlook in this news release. Important risks and uncertainties that could cause actual results to differ materially include, among others: customer forecasts or purchase orders may be delayed, reduced, cancelled or not converted into revenue as expected; customer network upgrade projects and capital spending may be delayed, reprioritized or reduced; new products or platforms may not achieve expected market adoption, qualification, interoperability or performance milestones; manufacturing, quality, component availability, supply chain, delivery, product mix, pricing, margin or operating expense outcomes may differ from management’s expectations; demand for DAA, DOCSIS 4.0, vCMTS, IPTV, DAI or other next-generation solutions may develop more slowly than expected; and competitive, foreign exchange, tariff, trade, geopolitical, cybersecurity, intellectual property, regulatory, litigation, customer concentration or general business risks may adversely affect the Company. A more complete discussion of the risks and uncertainties facing Vecima is disclosed under the heading “Risk Factors” in the Company’s Annual Information Form dated September 24, 2026 and in the Company’s other continuous disclosure filings with Canadian securities regulatory authorities, including the Company’s Management’s Discussion and Analysis for the three months and full year ended June 30, 2026 and 2025, available under the Company’s profile at www.sedarplus.ca.

Forward-looking information and financial outlook is not a guarantee of future performance, and readers should not place undue reliance on them. All forward-looking information and financial outlooks in this news release are qualified in their entirety by this cautionary statement as of the date of this news release. The Company disclaims any obligation to revise or update any forward-looking information or financial outlook, or to publicly announce the result of any revisions to any such information, to reflect future results, events or developments, except as required by law.

Vecima Networks

Investor Relations – 250-881-1982

invest@vecima.com

Non-IFRS measures

This news release contains references to certain Non-IFRS measures that do not have standardized meanings prescribed by IFRS Accounting Standards. Readers should not consider these measures in isolation or as a substitute for analysis of the company’s results as reported under IFRS Accounting Standards. These measures are defined differently by different companies and, therefore, might not be comparable to similar measures presented by other issuers. For information on the composition of these measures, as well as an explanation of how the company uses these measures, refer to Vecima’s MD&A for the periods ended June 30, 2026 and 2025 (available on SEDAR+ at www.sedarplus.ca, and on Vecima’s website at https://vecima.com/investor-relations/financial-reports/, which is incorporated by reference into this news release.