Quarterly Revenue of $68.8M, Full-Year Revenue of $285.9M

• Sequential quarterly consolidated revenue increases 7.5% in Q4 compared to Q3, VBS Q4 segment sales grow 22% QoQ to $58.1 million
• Full-year Entra DAA sales increase 5% YoY and 26% QoQ to $222.7 million
• First revenue from Vecima's new vCMTS solution achieved in Q4

Vecima Networks Inc. (TSX: VCM) today reported financial results for the three months and year ended June 30, 2025.

FINANCIAL HIGHLIGHTS

“Fiscal 2025 was a pivotal year for our industry generally and for Vecima specifically as we achieved technology and program milestones that are driving momentum going forward. Across the cable industry, MSOs have been preparing for major network upgrades as part of their transition to next-generation technologies like DOCSIS 4.0. While system-level changes of this magnitude are complex and challenging for operators, once field-level qualifications are complete, the stage is set for significant product uptake as rollouts commence and projects reach their expected deployment cadence,” said Sumit Kumar, Vecima’s President and Chief Executive Officer.

“By the end of fiscal 2025, a number of our customers had begun their network upgrade programs supported by Vecima's next-generation solutions. With more platforms being deployed, our customers' existing product inventories also started to come into better balance. These developments translated into a 7.5% sequential strengthening of our quarterly sales pace in Q4 fiscal 2025, as compared to Q3.”

“While the year culminated with these important rollouts getting underway, we faced and worked through the timing headwinds we anticipated and detailed in our recent earnings releases. We also managed through expected temporary pressures on gross margins due to product mix as we broadly rolled out our new EN9000 platform, which carries lower margins in the stand-alone implementation phase, but pays long-term dividends by housing successive generations of higher margin software-driven modules in later periods. In spite of this, the strong contribution from EN9000 uptake, combined with ongoing strength in our Entra Optical platforms for fiber to the home, led to the achievement of another new annual record in Entra family sales.”

“Reported fourth quarter results also reflect the unusually sharp weakening of the U.S. dollar versus Q3 that reduced both revenues and margins in Canadian dollars. Additionally, lumpy CDS sales sequentially due to project timing and a less favorable product mix affected consolidated margins in the period compared to the third quarter. Reported bottom line results also carried one-time non-cash charges relating to an impairment of deferred development costs and an additional inventory reserve taken for certain cable and fiber access solutions that have since evolved to alternative solutions developed or acquired by Vecima.”

“After managing through the year’s anticipated challenges, our positive outlook going forward is strongly supported by the customer rollouts that are now underway and by our many future-focused achievements of fiscal 2025,” added Mr. Kumar.

“In our Video and Broadband Solutions segment, development and demonstration of our next-generation DOCSIS 4.0 and vCMTS technologies have resulted in important design wins, including our multi-year vCMTS contract with Cox Communications, which we announced in the fourth quarter. These new technologies are expected to be significant growth drivers for Vecima for the next several years. The market success of our new EN9000, while a factor in last year's lower margins, has seeded the industry with a standardized platform that is expected to house successive generations of technology for years to come. Our recent launch of the EN3400 builds on this with a more compact version of the EN9000 specifically designed for multi-unit dwellings and enterprise markets, and is expected to be a meaningful contributor to fiscal 2026 revenues.”

“In our Entra Optical family, Vecima now boasts the industry's most complete offering of fiber access solutions giving operators unprecedented choice and flexibility in configuring their fiber access networks. We built on this in fiscal 2025 with the launch of vPON Manager, Vecima's cloud-based XGS-PON orchestration platform and more recently, the EEM210, a stand-alone 10G EPON module that fits both new and existing nodes and ideally supports incremental FTTH expansion.”

“Further enhancing our outlook, the fiscal 2025 acquisition of Falcon V has added new cloud-based control and testing technologies to our portfolio, and our recent introduction of Power Holdover Modules (PHMs) adds a high-value, high-demand new line of super-capacitor-based add-on products to our roster in fiscal 2026.”

“Our CDS segment is likewise poised for revenue growth in fiscal 2026 supported by compelling new technologies including Dynamic Ad Insertion, open CDN and the new KeyFrame technology we are marketing under a distribution agreement signed with Digital Harmonic in Q2, as well as customer execution of Managed IPTV expansions.”

“As we approach the conclusion of the first quarter of fiscal 2026, we are tracking another strong quarter on the top line. We also anticipate a return to strong annual growth while achieving new record quarterly run rates as we exit the year. We expect to pair this sales growth with improved gross margins throughout the year, reflecting an expected normalization of foreign exchange volatility and a more typical product mix. Moreover, as we add additional higher-margin products to the mix through the year, we anticipate a further gradual strengthening of gross profit margins.”

“Moving forward, we are highly confident in Vecima's future. Having built the industry's broadest and deepest portfolio of innovative, interoperable cable and fiber access products, we now have multiple growth engines driving our momentum as global adoption of DAA definitively ramps up. Our significant investments in both DAA and IPTV have laid the foundation for growth and improved profitability not just in fiscal 2026, but for multiple years to come,” concluded Mr. Kumar.

BUSINESS HIGHLIGHTS

Financial and Corporate

• Achieved full-year consolidated sales of $285.9 million, compared to $291.0 million in fiscal 2024, a year-over-year decrease of 2%. Fourth quarter revenue of $68.8 million was an increase of 7% from $64.0 million in Q3 fiscal 2025.
• Full-year gross margin and adjusted gross margin (non IFRS) of 38.3% and 40.6%, respectively, compared to 48.7% and 49.2%, respectively, in fiscal 2024. Fourth quarter gross margin and adjusted gross margin of 27.3% and 37.4%, respectively. Transitory decline in Q4 gross margin was impacted by foreign exchange volatility, an atypically unfavorable product mix, and a non-cash inventory write-down taken in the fourth quarter.
• Generated full-year adjusted EBITDA (non IFRS) of $28.9 million, compared to $53.2 million in fiscal 2024. Reported fourth quarter adjusted EBITDA of $6.7 million (Q4FY2024: $14.5 million, Q3FY25: $10.2 million).
• Full-year loss per share of $(0.73), compared to net income per share of $0.80 in fiscal 2024. Fourth quarter loss per share of $(0.54), compared to net income per share of $0.34 in Q4 fiscal 2024.
• Ended the fourth quarter in a solid financial position with working capital of $51.2 million at June 30, 2025, compared to $73.1 million at June 30, 2024. Our net debt position has decreased from a high of $92.0 million in Q3 fiscal 2024 to $53.6 million in Q4 fiscal 2025.

Video and Broadband Solutions (VBS)

• The Video and Broadband Solutions segment achieved full-year sales of $237.9 million on par with the $236.1 million in fiscal 2024. Fourth quarter VBS segment sales of $58.1 million decreased 22.2% year-over-year, but climbed 22% from $47.7 million in Q3 fiscal 2025.

DAA (Entra Family)

• Full-year deployments of next-generation Entra DAA products increased 5% year-over-year to a record $222.7 million; fourth quarter sales of $54.6 million decreased 20% year-over-year from Q4FY24 Entra sales, but grew 26% from $43.5 million in Q3 fiscal 2025.
  • Total customer engagements increased to 136 MSOs worldwide at year-end, from 115 a year earlier, with customer engagements deepening significantly during the year. Sixty-seven of these customers have ordered Entra products as broader DAA deployment progresses.
  • Furthered lab trials with additional operators in North America and globally in the fourth quarter and achieved first revenue from Vecima's new vCMTS solution, part of the Entra Cloud platform which enables operators to transform their networks for next-generation broadband access, including DOCSIS 4.0. During the fourth quarter, Cox Communications, a leading Tier 1 North American MSO, chose Entra vCMTS to modernize and enhance its DOCSIS network and will begin migrating to this platform in fiscal 2026. The multi-year agreement firmly positions Vecima in the rapidly growing global market for vCMTS, which Dell'Oro Group forecasts will be worth approximately $350 million annually by calendar 2028. Currently Vecima is just one of three vendors worldwide offering a vCMTS solution.
  • Made significant forward progress on the Entra DOCSIS 4.0 RPD platform which provides a critical pathway to unlocking next-generation multi-gigabit speed on our customers' platforms.
  • Building on the success of the Entra EN9000 GAP node, announced the launch of the EN3400, a compact, standardized multi-services GAP node with a unique form factor optimized for enterprise and multi-dwelling unit (MDU) applications. The EN3400 offers both line-powered and AC-powered options, as well as an assortment of RPD are R-OLT options. Subsequent to the year-end, Vecima secured initial orders for the EN3400 with a Tier 1 operator with deliveries expected to commence in Q2 fiscal 2026.
  • Announced availability of vPON Manager, Vecima's cloud-based XGS-PON orchestration platform, which offers operators robust XGS-PON subscriber management and service provisioning capability plus back-office management integration with telemetry support.
  • Deployed our new Entra Power Holdover Modules (PHM) in the field with our lead Tier 1 customer. Entra PHMs provide reliable protection from power fluctuations to Vecima's cable and fiber access platforms in the field and are expected to provide a significant contribution to revenues in fiscal 2026.
  • Continued growth in the R-MACPHY product category with a new operator win in the US Northwest and expansion with a Tier 1 customer in the CALA region.
  • Following our Q2 acquisition of Falcon V Systems, increased license uptake for our new Principal Core product, a virtual orchestration technology that aims to enable operators to converge cable, fiber and even mobile networks onto a single access platform. Achieved early contribution from our new Falcon V Test Suite technology, which accelerates DAA deployments by ensuring customers can fully test new software in a multi-core, multi-vendor environment.
  • Subsequent to the year-end, Vecima will demonstrate significant new innovations at the SCTE Tech Expo September 29 to October 1, 2025, further entrenching our technology leadership in the global cable and fiber access market. Planned demonstrations include:
    • Industry's first-ever 50G-PON migration solution, supporting 50G ITU PON and 10-G EPON on the same port for maximum investment protection and simplified next-gen PON migration
    • World's first Dual Downstream Service Group DOCSIS 4.0 Remote PHY device, the ERM422.
    • Live demonstrations of ENTRA vCMTS driving DOCSIS 4.0 Remote PHY devices

Commercial Video (Terrace Family)

• Commercial Video product sales were in line with expectations and included full-year sales of $15.0 million and fourth quarter sales of $3.4 million (fiscal 2024: $23.8 million, Q4 fiscal 2024: $5.9 million, Q3 fiscal 2025: $4.2 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.

Content Delivery and Storage (CDS)

• The Content Delivery and Storage segment generated full-year sales of $40.1 million, compared to $48.2 million in fiscal 2024, a decrease of 17%. Fourth quarter CDS sales of $8.6 million were 22% lower year-over-year (Q4 fiscal 2024: $11.1 million; Q3 fiscal 2025: $14.1 million).
• Achieved strong full-year gross margin performance of 60.8%, compared to 59.9% in fiscal 2024. Generated fourth quarter gross margin of 51.6% (Q4 fiscal 2024: 56.7%; Q3 fiscal 2025: 70.0%).
• Deployed Vecima's targeted Dynamic Ad Insertion (DAI) solutions with multiple customers, enabling operators to monetize their video platforms more effectively; in Q4 expanded DAI with a key customer.
• Continued progress and development of the standards-driven MediaScale Open CDN platform in preparation for deployments in fiscal 2026.
• Following Q2 agreement with Digital Harmonic to exclusively resell its innovative dh/KeyFrame Media Optimization Solution, showcased the technology's ability to significantly elevate video quality while reducing content bit rates at the NAB Show in April 2025.
• Subsequent to the year-end, Blue Stream Fiber, Florida's fastest-growing fiber-optic telecommunication provider, announced its deployment of our KeyFrame Media Optimization Solution to enhance video quality streaming experience for its Blue Stream Fiber TV service.

Telematics

• The Telematics segment grew full-year sales to $7.8 million, an increase of 16% from the $6.7 million achieved in fiscal 2024. Fourth quarter fiscal 2025 sales increased 18% year-over-year to $2.1 million (Q4 fiscal 2024: $1.8 million; Q3 fiscal 2025: $2.2 million).
  • Added 10 new customers for the NERO asset tracking platform during the fourth quarter, adding over 18,000 tags and bringing total asset tags under management to over 100,000.
  • Added 1,045 vehicle subscriptions to the quarter, with a total of 21,500 vehicles now being monitored.
  • Achieved strong gross margin percentage of 59.4%.

Trade and Tariffs

• Trade actions had a negligible impact on the 90% of Vecima's sales made to the US in fiscal 2025. The Company's manufacturing is predominantly domiciled in Canada, exempting that portion of its production from tariff actions under the United States-Mexico-Canada Agreement (USMCA). While renegotiation of the USMCA could, in an unlikely case, result in the introduction of new tariffs affecting Vecima's products, the Company is one of the few competitors in the industry that fully “owns” its manufacturing process. This provides significant flexibility to adapt quickly to changing macroeconomic conditions, including the ability to rapidly transition manufacturing to different countries as Vecima has demonstrated in the past.

CONFERENCE CALL

A conference call and live audio webcast will be held today, Thursday, September 25, 2025 at 1 p.m. ET to discuss the Company’s fourth quarter and full-year results. Vecima’s audited annual consolidated financial statements and management’s discussion and analysis for the three months and year ended June 30, 2025 are available under the Company’s profile at www.sedarplus.ca, and at https://vecima.com/investor-relations/financial-reports/.

To participate in the Q4FY25 teleconference, dial 1-844-763-8274 or 1-647-484-8814. The webcast will be available in real time at https://event.choruscall.com/mediaframe/webcast.html?webcastid=Uyxn75It and will be archived on the Vecima website at https://vecima.com/investor-relations/earnings-call-archive/.

About Vecima Networks

Vecima Networks Inc. (TSX: VCM) is leading the global evolution to the multi-gigabit, content-rich networks of the future. Our talented people deliver future-ready software, services, and integrated platforms that power broadband and video streaming networks, monitor and manage transportation, and transform experiences in homes, businesses, and everywhere people connect. We help our customers evolve their networks with cloud-based solutions that deliver ground-breaking speed, superior video quality, and exciting new services to their subscribers. There is power in connectivity – it enables people, businesses, and communities to grow and thrive. Learn more at www.vecima.com.

Adjusted EBITDA and Adjusted Earnings (Loss) Per Share

Adjusted EBITDA and Adjusted Earnings (Loss) Per Share do not have a standardized meaning under IFRS and therefore may not be comparable to similar measures provided by other issuers. Accordingly, investors are cautioned that Adjusted EBITDA or Adjusted Earnings Per Share should not be construed as an alternative to net income, determined in accordance with IFRS, as an indicator of the Company’s financial performance or as a measure of its liquidity and cash flows. For a reconciliation of Adjusted EBITDA or Adjusted Earnings (Loss) Per Share, investors should refer to Vecima’s Management’s Discussion and Analysis for the fourth quarter of fiscal 2025.

Forward-Looking Statements

This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words “believes”, “may”, “plans”, “will”, “anticipates”, “intends”, “could”, “estimates”, “expects”, “forecasts”, “projects” and similar expressions, and the negative of such expressions. Forward-looking information in this news release includes the following statements: fiscal 2025 was a pivotal year for our industry generally and for Vecima specifically as we achieved technology and program milestones that are driving momentum going forward; the stage is set for significant product uptake as rollouts commence and projects reach their expected deployment cadence; our positive outlook going forward is strongly supported by the customer rollouts that are now underway and by our many future-focused achievements of fiscal 2025; new technologies are expected to be significant growth drivers for Vecima for the next several years; our CDS segment is likewise poised for revenue growth in fiscal 2026 supported by compelling new technologies; As we approach the conclusion of the first quarter of fiscal 2026, we are tracking another strong quarter on the top line. We also anticipate a return to strong annual growth while achieving new record quarterly run rates as we exit the year. We expect to pair this sales growth with improved gross margins throughout the year, reflecting an expected normalization of foreign exchange volatility and a more typical product mix. Moreover, as we add additional higher-margin products to the mix through the year, we anticipate a further gradual strengthening of gross profit margins forward, we are highly confident in Vecima's future; having built the industry's broadest and deepest portfolio of innovative, interoperable cable and fiber access products, we now have multiple growth engines driving our momentum as global adoption of DAA definitively ramps up; our significant investments in both DAA and IPTV have laid the foundation for growth and improved profitability not just in fiscal 2026, but for multiple years to come.

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 25, 2025, as well as the Company’s continuous disclosure filings with Canadian securities regulatory authorities available at www.sedarplus.ca. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Vecima disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

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