Aug. 12 at 10:02 PM
$ITG $HLIT $OMER $SPY
Good report on these 3 small caps
1. OMER — Omeros
Very strong headline beat, but the story is more about YARTEMLEA and the Novo Nordisk transaction than traditional recurring revenue.
* EPS:
$0.02 vs. -
$0.32 expected — huge beat.
* The quarter benefited substantially from the company’s strategic transactions/licensing economics.
* Omeros’ key commercial asset is YARTEMLEA (narsoplimab), now FDA-approved for TA-TMA.
* The bigger long-term catalyst remains the Novo Nordisk acquisition of global rights to zaltenibart (formerly OMS906) and the resulting economics for Omeros.
* Takeaway: Strong quarter, but I would characterize OMER as a catalyst/biotech monetization story rather than a clean “beat-and-raise” operating-revenue story.
Verdict: 🟢 Bullish, but read the details of the guidance/cash economics carefully.
2. HLIT — Harmonic
This is the cleanest “beat + raise” of the three.
* Revenue:
$133.46M vs.
$120.89M expected — ~10% beat.
* Adjusted EPS:
$0.24 vs.
$0.17 expected — ~41% beat.
* Q3 guidance: revenue
$125M–
$135M, adjusted EPS
$0.15–
$0.19, both above consensus.
* FY2026 guidance: revenue
$505M–
$525M, adjusted EPS
$0.67–
$0.75. Consensus was only ~
$486.8M revenue and
$0.40 EPS.
* Broadband revenue grew 54% YoY, accelerating from Q1’s already strong growth.
* Backlog + deferred revenue jumped 71% YoY to
$587.6M.
* The Video business sale is complete, providing
$137.9M cash and allowing management to concentrate on broadband.
Verdict: 🟢🟢 Strongest report.
The important part isn’t merely the EPS beat. It’s accelerating broadband growth + backlog growth + higher FY guidance + cleaner balance sheet after the Video divestiture.
3. ITG delivered a strong Q2 and gave an aggressive initial 2026 outlook.
* Revenue:
$404.6M, +38% YoY
* Adjusted EBITDA:
$52.2M, +21% YoY
* Free cash flow:
$44.8M, +66% YoY
* FCF conversion: 85.7%
* NTM backlog:
$1.517B, up from
$1.259B a year ago and
$1.43B in Q1.
* 2026 revenue outlook: ~
$1.556B, +35% YoY
* 2026 Adjusted EBITDA: ~
$202M, +36% YoY
* Expected 2026 EBITDA margin: ~13%.
🚀 Why the report is bullish
1. Growth is substantial.
ITG is forecasting 35% revenue growth and 36% EBITDA growth for its first full-year outlook as a public company.
2. Backlog provides visibility.
The
$1.517B NTM backlog is almost equal to the entire
$1.556B FY2026 revenue outlook, giving investors considerable visibility into future revenue.
3. Cash generation is impressive.
FCF jumped 66%, much faster than revenue, with 85.7% conversion of adjusted EBITDA to FCF in Q2.
4. IPO helps the balance sheet.
The IPO was completed after quarter-end, with proceeds primarily used to repay debt, which should help reduce the heavy interest burden going forward.
Bottom line
ITG: 🟢🟢🟢 Strong report
38% revenue growth + 66% FCF growth +
$1.52B backlog + 35% FY revenue growth guidance + 36% EBITDA growth guidance.
