Vistance Networks (CM9) Q2 2026 Earnings Report

Balanced: the call highlighted a transformational corporate milestone—sale of Ruckus yielding large cash proceeds, elimination of debt, significant shareholder distributions, and strong strategic optionality to invest in growth areas (DOCSIS 4.0, PON, vBNG, PKI). Offsetting these positives were notable operational headwinds: substantial year-over-year declines in adjusted EBITDA across segments, severe memory chip supply/pricing pressures (quantified at ~ $40 million), stranded divestiture costs (~ $20 million), order/backlog volatility (Q2 orders down 55%, backlog down 15%), and near-term cash flow uses. Management pointed to post-quarter order momentum (~$200 million) and product wins, but downside risks to guidance remain if memory conditions worsen. Overall, positive strategic and liquidity developments are balanced by meaningful near-term execution and margin challenges.

Management lowered full‑year Aurora adjusted EBITDA guidance by $25 million to $200–225 million, citing worsening memory pricing/availability (impacting the forecast by ~ $40 million) and stranded G&A costs (~ $20 million in 2026), with most stranded costs gone by 2027 and all by 2028 and a caution that results could fall to the low end or below the range if conditions worsen. In Q2 Aurora reported net sales of $319 million and adjusted EBITDA of $46 million (down 43% YoY, in line with expectations); Vistance continuing ops posted net sales of $320 million, adjusted EBITDA of $36 million (down 32%) and adjusted EPS of $0.12 (vs. $0.13); including Ruckus, adjusted EBITDA was $76 million (down 40%). Operational and liquidity metrics included Aurora order rates down 55% in Q2 (but ~ $200 million of orders received in July), Q2 backlog of $470 million (down $82 million or 15%), Q2 cash of $152 million and post‑Ruckus cash of about $1.9 billion (Ruckus sale proceeds ≈ $1.75 billion), a Board‑approved $5/share special distribution (~ $1.15 billion) payable by end‑August as part of $15/share returned after CCS and Ruckus, no outstanding debt, ABL availability of $137 million, and a $100 million buyback authorization; management expects year‑end 2026 cash of $700–750 million and a ~$160 million tax refund in H2 2027, implying roughly $850–900 million of cash at the end of 2027 before 2027 cash generation.