Montreal – September 15, 2026 -- Haivision Systems Inc. (TSX: HAI) reported third-quarter revenue of $34.5 million, down 1.4% year-over-year, as gross margins compressed to 69.4% from 72.0% amid escalating component costs and supply-chain disruptions.
Operating loss widens to $1.7 million in the quarter
The video networking provider swung to an operating loss of $1.7 million in Q3, compared with operating income of $0.3 million in the prior-year period. Total expenses rose to $25.7 million, up $0.8 million year-over-year. Adjusted EBITDA fell $2.0 million to $1.5 million, with the margin dropping to 4.3% from 10.1%.
Net loss hits $2.1 million versus prior-year profit
Haivision posted a net loss of $2.1 million for the three months ended July 31, 2026, reversing net income of $0.2 million a year earlier. Management attributed the swing to a $1.2 million decline in gross profit combined with higher operating costs.
Nine-month revenue climbs 5.0% to $102.3 million
Despite the quarterly softness, revenue for the nine months ended July 31, 2026 rose $4.8 million to $102.3 million. Gross margins for the period slipped to 69.6% from 72.3%, while adjusted EBITDA fell $1.3 million to $4.4 million, with margins at 4.3% versus 5.9% a year earlier. Net loss for the nine-month period was $4.1 million, compared with $3.3 million in the prior-year period, partly due to a $0.9 million reduction in income tax benefit.
CFO cites tariffs and sole-source component exposure
Chief Financial Officer Dan Rabinowitz said input costs are rising faster than customer price adjustments can offset, driving continued near-term margin compression. He cited sole-source component exposure, extended lead times, supplier de-commitments and expedite fees as key pressures, adding that tightening AI-driven demand for memory and components is compounding the strain. Haivision has increased inventory investment to safeguard product availability for mission-critical customers.
CEO points to extended procurement cycles, not weakening demand
President and CEO Mirko Wicha attributed the quarterly revenue dip to timing shifts in customer purchasing and deployment cycles, particularly within the Broadcast segment. He said customer engagement remains healthy and the company holds a pipeline that includes several larger strategic projects, though extended procurement timelines can shift revenue recognition between quarters.
Company expands product lineup across broadcast and tactical markets
Haivision's Makito ONE video transport platform won NAB's Product of the Year 2026, TV Tech's Best of Show, TVB Europe's Best of Show and an AV Technology Best of Show award at InfoComm 2026. The company also launched Kobra, a backpack-portable video operations platform for tactical missions, and introduced the Falkon X4, a 5G mobile video transmitter for live sports and news production. Haivision was named the official video encoder for Minor League Baseball, supporting streaming across 120 teams and more than 8,000 games annually.
Expense base stabilizes near $25.3 million per quarter
Total expenses for the nine-month period reached $76.3 million, up $0.7 million year-over-year. Management noted that expenses have averaged $25.3 million over the trailing five quarters, indicating a stabilized cost structure heading into the next reporting period.