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.

At NAB 2026 in April, Evertz introduced several products that underpin its software and services growth trajectory. The ENX media core, designed to unify SDI and IP facilities, won a TV Tech Future Best of Show Award alongside BRAVO Studio, X-CALIBER (a 1RU high-density encoding platform supporting up to 64 HEVC paths), and the MMA/NUCLEUS IPMX gateway. Per Content+Technology (April 2026), BRAVO-BLADE brings production switching directly into the ENX and NEXX platforms, eliminating the need for separate production switchers. On the Q4 earnings call, EVP Brian Campbell attributed the company's performance to "channel and video services proliferation" and the "ongoing technical transition to IP, IT, and cloud-based architectures," noting over 600 SDN deployments to date.

The broader broadcast infrastructure market reached $5.77 billion in 2025 and is forecast to grow to $8.27 billion by 2030 at a 7.47% CAGR, per Mordor Intelligence. The services segment is expanding faster at 9.89% CAGR as stations shift from capital purchases to subscription-based models — a trend visible in Evertz's own recurring revenue mix, which moved from 44% to 47% of total revenue in one year. Separately, the Software Defined Video Networking market is sized at $4.7 billion in 2026 with a projected 16.4% CAGR through 2035, per MarkWide Research.

Competitor Harmonic reported an 18% increase in Video SaaS bookings in 2024, per Mordor Intelligence, illustrating the same recurring revenue shift across the vendor landscape. Haivision's 2026 Broadcast Transformation Report (March 2026), based on a survey of 1,300+ broadcast professionals, found that 41% prioritize remote production as their top technology initiative and SRT adoption has reached 78%, while 82% still rely on SDI infrastructure — underscoring the hybrid SDI/IP opportunity Evertz targets with ENX. On the analyst side, BMO Capital Markets and Canaccord Genuity both raised price targets to C$17.50 in March 2026 with Buy/Outperform ratings, while RBC Capital maintained a Sector Perform at C$15.00, per The Fly. Evertz also disclosed on its earnings call that defense and aerospace sales rose 12% YoY, bolstered by partnerships with Thales-led ATHORA and Babcock's Team INSPIRE for Canadian defense modernization programs.