MONTREAL, June 10, 2026 /PRNewswire/ - Haivision Systems Inc. ("Haivision" or the "Company") (TSX: HAI), a leading global provider of mission critical, real-time video networking and visual collaboration solutions, today announced its results for the second quarter ended April 30, 2026.

"During the first half of fiscal 2026, we saw customers become more deliberate in their purchasing decisions as macro uncertainty, tariff-related cost pressure, and shifting enterprise IT priorities lengthened approval cycles." said Mirko Wicha, President and CEO of Haivision Systems Inc.  "While demand for secure, mission-critical video remains intact, budgets in several market verticals are being reprioritized toward immediate defense readiness, AI infrastructure, and other urgent operational needs, which created timing pressure on sales in the second quarter."

Q2 2026 Financial Results

• Revenue of $32.5 million declined by $1.8 million or 5.1%
• Gross Margins* were 68.9%, compared to 73.0% for the same prior year quarter.
• Total expenses were $25.5 million, a decrease of $2.6 million from the same prior year quarter.
• Operating loss for the quarter was $3.1 million comparable to the prior year quarter.
• Adjusted EBITDA* was $0.3 million, a decrease of  $1.3 million improvement from the prior year quarter.
• Adjusted EBITDA Margins* were 1.0% compared to 4.9% for the same prior year quarter.

Financial Results for the six months ended April 30, 2026

• Revenue is $67.8 million, an increase of $5.3 million or 8.5%.   
• Gross Margins* are 69.7%, compared to 72.5% in the same prior year period.
• Total expenses were $50.6 million, comparable to the prior to the prior year period.
• Operating loss was $3.3 million compared a $2.0 improvement from the same prior year period.
• Adjusted EBITDA* was $2.9 million, a $0.7 million improvement from the same prior year period.
• Adjusted EBITDA Margins* are 4.3% compared to 3.6% for the same prior year period.

Recent Company Highlights

• Haivision introduced Kobra, a compact, backpack portable, video operations platform built for tactical, time-critical missions and combines live video, visual feeds and contextual metadata for display in a single operational view.
• Haivision launches Falkon X4, the newest addition to its Falkon family of 5G mobile video transmitters, purpose-built for remote production for live sports and 24/7 news.
• Haivision unveils the Makito ONE, a live contribution platform with H.264, HEVC, JPEG XS and configurable encoding/decoding on a single compact blade.
• Haivision named the official video encoder of Minor League Baseball, supporting live streaming and video distribution across 120 teams and more than 8,000 games each season.
• Haivision releases seventh annual Broadcast Transformation Report, showcasing key industry shifts and emerging technologies.  
• Haivision unveils Falkon X2: Pushing the Boundaries of 5G Video Transmission for Live Broadcasting.
• Haivision wins NAB Product of the Year 2025 and Best In Show for IBC 2025 for the Falkon X2 video transmitter.
• Haivision announced the new Kraken X1 Rugged which unleashes uncompromising power and AI-driven intelligence for us in tough operational environments.
• Haivision Command 360 video wall solution wins 4-Star Award in the Real-Time Data Sharing category for Best In Show awards at DSEI UK 2025. 
• Haivision and France Télévisions push the Boundaries of Private 5G for Live Production with the IBC2025 Accelerator Media Innovation Program.  

"Gross margin pressure in the quarter reflects significant third-party component deliveries tied to one of our larger defense programs, as well as higher costs and constrained availability across memory, GPUs, and other compute-related inputs," said Dan Rabinowitz, EVP and Chief Financial Officer of Haivision Systems Inc. "AI infrastructure demand has tightened supply across these categories, creating allocation dynamics and upward pricing pressure. While we are taking pricing, sourcing, and design actions, cost increases are flowing through faster than customer price adjustments, creating temporary margin compression."

Financial Results

Revenue for the three months ended April 30, 2026 was $32.5 million, a decrease of $1.8 million or 5.1% from the prior year comparable period.  Revenue for the six months ended April 30, 2026 was $67.8 million, an increase of $5.3 million of 8.5% from the prior year comparable period. Sales have softened in all our verticals.  Weakness in broadcast reflects constrained media-technology budgets and increased scrutiny of ROI for cloud, IP, remote production and infrastructure upgrades. Enterprise customer budgets exist, but concentrated in AI/Data-center priorities rather than broad enterprise video refreshes.

Gross Margin* for the quarter was 68.9%, compared with 73.0% in the prior-year period. Deliveries to a large programmatic customer remained strong, but supply chain constraints delayed shipments of higher-margin proprietary products. In addition, AI infrastructure demand is tightening component supply and putting pressure on gross margins across downstream technology hardware companies that cannot immediately pass through higher costs. For the six months ended April 30, 2026, Gross Margin* was 69.7%, compared with 72.5% in the prior-year period.

Total expenses for the three months ended April 30, 2026 were $25.6 million, down $2.6 million from the prior-year period. For the six months ended April 30, 2026, total expenses were $50.6 million, in line with the prior-year period. Total expenses for the three- and six-month periods ended April 30, 2025 included legal settlement and related fees of $1.5 million and $1.7 million, respectively. Over the last four quarters, total expenses averaged $25.2 million, supporting our view that expenses have stabilized at this level.

Net loss for the three months ended April 30, 2026 was $1.8 million, compared with a net loss of $2.4 million in the prior-year period. The year-over-year decline in revenue and gross margin reduced Gross Profit* by $2.6 million, but this was offset by a comparable reduction in total expenses. As a result, the improvement in net loss was driven by lower income taxes year over year. Net loss for the six months ended April 30, 2026 was $2.0 million, compared with $3.5 million in the prior-year period. Despite lower Gross Margins*, higher revenue year over year increased gross profit by $1.9 million and improved operating loss by $2.0 million. However, income taxes increased by $0.4 million, resulting in a net loss improvement of $1.5 million.

Adjusted EBITDA* for the three months ended April 30, 2026 was $0.3 million, a decrease of $1.4 million from the prior year comparative period. The Adjusted EBITDA margin* for the three months ending April 30, 2026 was 1.0% compared to 4.9% for the prior year comparative period.   Adjusted EBITDA* for the six months ended April 30, 2026 was $2.9 million, an increase of $0.7 million from the prior year comparative period.  The $1.5 million improvement in net loss and $0.5 million reduction in income taxes was offset by the reclassification of the $1.7 million non-recurring expense related to the litigation.  The Adjusted EBITDA margin* for the six months ended April 30, 2026 was 4.3% compared to 3.6% for the prior year comparative period. 

 *Measures followed by the suffix "*" in this press release are non-IFRS measures. For the relevant definition, see "Non-IFRS Measures" below. As applicable, a reconciliation of this non-IFRS measure to the most directly comparable IFRS financial measure is included in the tables at the end of this press release and in the Company's management's discussion and analysis for the three months and six months ended April 30, 2026.

Conference Call Notification

Haivision will hold a conference call to discuss its second quarter and full year financial results on Thursday, June 11, 2026 at 8:30 am (ET). To register for the call, please use this link https://events.q4inc.com/analyst/171986058?pwd=KUXai2FG. After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry.

Financial Statements, Management's Discussion and Analysis and Additional Information

Haivision's consolidated financial statements for the second quarter ended April 30, 2026 (the "Q2 Financial Statements"), the management's discussion and analysis thereon and additional information relating to Haivision and its business can be found under Haivision's profile on SEDAR+ at www.sedarplus.ca. The financial information presented in this release was derived from the Q1 Financial Statements.

Forward-Looking Statements

This release includes "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable securities laws, including, without limitation, statements regarding the Company's growth opportunities and its ability to execute on its growth strategy. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements. Forward-looking statements are not historical facts, nor guarantees or assurances of future performance but instead represent management's current beliefs, expectations, estimates and projections regarding future events and operating performance.

Forward-looking statements are necessarily based on opinions, assumptions and estimates that, while considered reasonable by Haivision as of the date of this release, are subject to inherent uncertainties, risks and changes in circumstances that may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, the risk factors identified under "Risk Factors" in the Company's latest annual information form, and in other periodic filings that the Company has made and may make in the future with the securities commissions or similar regulatory authorities in Canada, all of which are available under the Company's SEDAR+ profile at www.sedarplus.ca. These factors are not intended to represent a complete list of the factors that could affect Haivision. However, such risk factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. You should not place undue reliance on forward-looking statements, which speak only as of the date of this release. Haivision undertakes no obligation to publicly update any forward-looking statement, except as required by applicable securities laws.

Non-IFRS Measures

Haivision's consolidated financial statements for the second quarter ended April 30, 2026 are prepared in accordance with International Financial Reporting Standards – Accounting Standards ("IFRS^® Accounting Standards").  As a compliment to results provided in accordance with IFRS Accounting Standards, this press release makes reference to certain (i) non-IFRS financial measures, including "EBITDA", and "Adjusted EBITDA", (ii) non-IFRS ratios including "Adjusted EBITDA Margin", and (iii) supplementary financial measures including "Gross Margins" (collectively "non-IFRS measures"). These non-IFRS measures are not recognized measures under IFRS Accounting Standards and do not have a standardized meaning prescribed by IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, these measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS Accounting Standards. Rather, these non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS Accounting Standards measures. We also believe that securities analysts, investors, and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. For information on the most directly comparable financial measure disclosed in the primary financial statements of Haivision, composition of the non-IFRS measures, a description of how Haivision uses these measures and an explanation of how these measures provide useful information to investors, refer to the "Non-IFRS Measures" section of the Company's management's discussion and analysis for the three months and six months ended April 30, 2026, dated June 10, 2026, available on the Company's SEDAR+ profile at www.sedarplus.ca, which is incorporated by reference into this press release. As applicable, the reconciliations for each non-IFRS measure are outlined below. Non-IFRS measures should not be considered as alternatives to net income or comparable metrics determined in accordance with IFRS Accounting Standards as indicators of the Company's performance, liquidity, cash flow and profitability.

About Haivision

Haivision is a leading global provider of mission-critical, real-time video streaming and visual collaboration solutions. Our connected cloud and intelligent edge technologies enable organizations globally to engage audiences, enhance collaboration, and support decision making. We provide high quality, low latency, secure, and reliable live video at a global scale. Haivision open sourced its award-winning SRT low latency video streaming protocol and founded the SRT Alliance to support its adoption. Awarded four Emmys® for Technology and Engineering from the National Academy of Television Arts and Sciences, Haivision continues to fuel the future of IP video transformation. Founded in 2004, Haivision is headquartered in Montreal and Chicago with offices, sales, and support located throughout the Americas, Europe, and Asia. Learn more at haivision.com. 

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SOURCE Haivision Systems Inc.