Haivision Q3 Revenue Slips Amid Tariff Headwinds

Haivision Systems reported third-quarter fiscal 2026 revenue of CAD 34.5 million, a 1.4% decrease from the same period last year. The decline was driven by timing issues in customer purchases and deployment schedules, particularly within the broadcast sector. The company’s adjusted EBITDA dropped significantly to CAD 1.5 million, representing a 4.3% margin, compared to CAD 3.5 million and a 10.1% margin in the prior-year quarter.

The quarter resulted in a net loss of CAD 2.1 million, reversing a prior-year net income of CAD 200,000. This profitability swing was pressured by gross margins falling to 69.4% from 72.0% a year earlier. According to GN markets/earnings (en-US), the margin compression stems from higher component prices, sole-source exposure, and increased expedite costs associated with supply chain disruptions.

Tariffs Impact U.S. Gross Margins

Management identified tariffs and supply chain instability as significant headwinds. A 50% tariff applies to products accounting for approximately 30% of U.S. sales, which management estimates could reduce consolidated gross margins by roughly three percentage points. In response, Haivision has increased inventory levels and shifted some fulfillment operations to a U.S. facility to mitigate logistics risks and protect delivery timelines.

CFO Dan Rabinowitz noted that while enterprise demand for secure video remains healthy, broadcast customers have become more disciplined in their purchasing decisions. There is a greater emphasis on return on investment and operating efficiencies. Defense revenue remained relatively stable, though procurement has slowed as spending prioritizes readiness areas such as air defense and counter-drone capabilities.

Conservative Guidance for Fiscal 2026

Despite the quarterly dip, CEO Mirko Wicha stated that customer engagement remains healthy and the opportunity pipeline is growing. The company continues to focus on mission-critical applications in defense, public safety, and enterprise markets, avoiding commodity video segments. However, project timing remains uncertain due to government procurement cycles and supply chain conditions.

For the full fiscal year 2026, Haivision expects revenue to land closer to the lower end of its CAD 140 million to CAD 142 million forecast. Total expenses have stabilized at approximately CAD 25.3 million over the past five quarters. The company is increasing research and development spending to support its product release schedule while reducing costs in sales, marketing, and support through organizational changes.

Expense Structure Stabilizes Amid R&D Push

Third-quarter operating loss stood at CAD 1.7 million, compared to operating income of CAD 300,000 in the prior-year quarter. Total quarterly expenses rose by CAD 800,000 year over year to CAD 25.7 million. Rabinowitz indicated that these levels are now stable, allowing the company to direct resources toward product development while maintaining operational discipline.