Haivision lowers FY26 outlook as Q2 sales fall 5.1%
Haivision Systems Inc. reported a 5.1% year-over-year decline in Q2 revenue to $32.5 million, impacted by geopolitical tensions and supply chain constraints, while net loss improved to $1.8 million. The company lowered its fiscal 2026 revenue guidance to $140-$142 million but maintained a positive long-term outlook, targeting 20% EBITDA margins by fiscal 2028.
*this image is generated using AI for illustrative purposes only.
Haivision Systems Inc. reported second-quarter revenue of $32.5 million for the period ended April 30, 2026, a decrease of 5.1% from the prior year, citing geopolitical tensions and supply chain disruptions. The company posted a net loss of $1.8 million, an improvement from a net loss of $2.4 million in the same period last year, while Adjusted EBITDA fell to $0.3 million from $1.7 million. Despite the sales decline, which beat analyst estimates of $32.116 million, the company lowered its full fiscal year 2026 revenue guidance to a range of $140 million to $142 million.
Financial Performance
The sales decline was attributed to macro uncertainty, shifting enterprise IT priorities, and delays in a large defense program. Gross margin for the quarter was 68.9%, down from 73.0% in the prior year, driven by a revenue mix weighted toward lower-margin third-party components and higher costs for memory and GPUs. Total expenses decreased to $25.6 million from $28.2 million in the prior year.
For the six months ended April 30, 2026, revenue increased by 8.5% to $67.8 million. Adjusted EBITDA for the six-month period was $2.9 million, an increase of $0.7 million from the prior year, with an Adjusted EBITDA margin of 4.3%. The company noted that AI infrastructure demand has tightened component supply, leading to temporary margin compression as cost increases flow through faster than customer price adjustments.
Balance Sheet and Guidance
Haivision ended the quarter with $18.1 million in cash, an increase of $1.1 million from the previous quarter. The company extended its credit facility to August 2028, with $5.1 million outstanding against a total facility of $35 million. Management stated that while near-term volatility is expected due to procurement cycles and supply chain normalization, they remain confident in long-term growth prospects, targeting double-digit revenue growth and 20% EBITDA margins by fiscal 2028.
Financial Highlights
| Metric | Three months ended April 30, 2026 | Three months ended April 30, 2025 | Six months ended April 30, 2026 | Six months ended April 30, 2025 |
|---|---|---|---|---|
| Revenue ($) | 32,535 | 34,290 | 67,765 | 62,451 |
| Gross Profit ($) | 22,408 | 25,016 | 47,243 | 45,300 |
| Total Expenses ($) | 25,556 | 28,184 | 50,588 | 50,651 |
| Net Loss ($) | (1,818) | (2,391) | (1,997) | (3,469) |
| Adjusted EBITDA ($) | 319 | 1,675 | 2,935 | 2,233 |
Operational Updates
Haivision introduced several new products during the period, including Kobra, a compact, backpack-portable video operations platform for tactical missions, and Falkon X4, a 5G mobile video transmitter for remote production. The company also unveiled Makito ONE, a live contribution platform with configurable encoding and decoding. Additionally, Haivision was named the official video encoder of Minor League Baseball, supporting live streaming across 120 teams.
What specific strategies will management employ to navigate supply chain constraints and restore gross margins to previous levels?
How will the delayed defense program impact revenue timing in the second half of the fiscal year?
What is the expected timeline for passing increased memory and GPU costs on to customers to alleviate margin compression?
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