Topic: 2026 customer mix and gross margin impact from memory costs
Key points:
Rest-of-World (ROW) revenue expected to continue growing at 30%+ in 2026; ROW share of total revenue will vary quarter-to-quarter but trend upward long-term.
Gross margin guidance includes a net $6 million impact from memory pricing (net of customer price adders); all 2026 memory supply is committed with largely fixed pricing.
Management took a “prudent” view on full-year guidance due to risk of delivery delays or knock-on effects from customer ecosystem disruptions.
In 2025, ROW Broadband revenue was $138 million, up from under $95 million in 2024.
Mgmt stance: Neutral – cautious on guidance due to memory cost headwinds and supply chain timing risks, but bullish on ROW growth trajectory.
Q2 — Ryan Koontz
Topic: Q4 bookings strength and Broadband margin drivers
Key points:
Q4 bookings were “very strong” in both large customers and ROW; included multiyear bookings; customers placing orders sooner, improving visibility.
Broadband gross margin step-up in 2026 is driven by higher cOS software mix and scaling broader customer base.
Memory cost is a headwind factored into margin guidance; higher connected modem/ONU volumes correlate with more cOS license recognition as subscribers connect.
New customer ramp-up (announced in 2025) is driving higher connectivity rates as integration phases complete.
Mgmt stance: Bullish – software mix and scaling are tailwinds; bookings and visibility support growth.
Q3 — Taran Katta
Topic: Confirmation of memory cost impact and pricing actions
Key points:
Confirmed net $6 million memory cost impact built into guidance (net of pricing actions).
Pricing actions are being taken on products with higher memory content; management declined to specify details but noted the impact is industry-wide.
Mgmt stance: Neutral – acknowledges headwind but has taken mitigating pricing actions.
Q4 bookings were a mix of both large customers and ROW; ROW growth expected at 30%+.
Memory as a percentage of BOM is at the “lower end of the spectrum” compared to CPE equipment (e.g., modems have much higher memory content).
In 2025, SaaS and service revenue of $58 million was “large majority” from SLA/maintenance contracts; growing component from tools and network intelligence (recurring).
Multiyear bookings in Q4 included a mix of hardware, software, and tools/intelligence offerings.
Mgmt stance: Bullish – ROW growth and recurring SaaS/tools revenue are key growth areas; multiyear agreements span all product categories.