Evertz crosses half-billion as recurring software hits 47% of revenue

The 47% recurring revenue share signals that Evertz's business model is steadily shifting from hardware sales cycles toward software-driven annuity streams — a transition the broader broadcast infrastructure market is undergoing as operators move from SDI to IP and cloud architectures. International growth (16%) outpacing North American contraction (-2%) mirrors the geographic demand shift seen across the sector, where European and Asian broadcasters are accelerating IP fabric investments. Watch whether the $237 million backlog converts at historical gross margins (~59%) in fiscal 2027, and whether the cash position rebuilds after the large special dividend payout.

Evertz has been expanding its software and cloud-based service offerings as broadcasters migrate from baseband SDI to IP-based architectures. At IBC 2026 in September, Evertz announced the addition of DreamCatcher and BRAVO live production engines to its evertz.io SaaS platform, enabling broadcasters to spin up switching, replay, and graphics capabilities on a per-event basis without dedicated on-premises infrastructure. This cloud-deployment model directly supports the recurring revenue trajectory reported in fiscal 2026, where software and services now represent 47% of total revenue.

The international growth Evertz reported in fiscal 2026 aligns with concrete deployment activity in its North American customer base as well. In April 2026, Mobile TV Group deployed an IP-based playout and digital distribution architecture built on Evertz Mediator, OvertureRT-LIVE, and evertz.io XChange, replacing traditional satellite-based delivery with a scalable IP model over Lumen's multicast-enabled network. The deployment illustrates the type of software-defined, hybrid-cloud architecture that Evertz is positioning as its core recurring revenue engine.

Evertz's fiscal 2027 first quarter, reported in September 2026, shows continued momentum. Revenue reached $118.3 million, up from $112.1 million in the prior year quarter, with order backlog climbing to $259 million, a 9% sequential increase from the $237 million backlog reported at fiscal year-end. Gross margin held at 58.6%, consistent with the company's historical profile, suggesting that the transition toward software-heavy revenue has not yet pressured unit economics.