Revenue Grew 17% to $122.7 Million; GAAP Operating Income was $4.7 Million; Adjusted EBITDA Increased 31% to $15.4 Million
Comtech Acquisition on Track for Expected Year-End Closing
Reiterates 2026 Financial Guidance
PETAH TIKVA, Israel, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the second quarter, ended June 30, 2026.
Second Quarter 2026 Financial Highlights
-- Revenues increased to $122.7 million, compared with $105 million in Q2
2025;
-- GAAP operating income of $4.7 million, compared with GAAP operating
income of $5.7 million in Q2 2025;
-- Non-GAAP operating income increased 35% to $12.6 million, compared with
$9.3 million in Q2 2025;
-- GAAP net income of $8.1 million, or $0.10 per diluted share, compared
with GAAP net income of $9.8 million, or $0.17 per diluted share, in Q2
2025;
-- Non-GAAP net income of $15.6 million, or $0.20 per diluted share,
compared with $12.0 million, or $0.21 per diluted share, in Q2 2025;
-- Adjusted EBITDA increased 31% to $15.4 million, significantly improving
margins compared with $11.8 million in Q2 2025
Forward-Looking Expectations(1)
Management reiterates guidance for 2026 for revenue between $500 to $520 million, representing a revenue growth rate of approximately 13% at the midpoint. Adjusted EBITDA for 2026 is expected to be between $61 to $66 million, representing a growth rate of approximately 19% at the midpoint.
Management Commentary
Adi Sfadia, Gilat's CEO, commented: "Gilat delivered another strong quarter, with revenues increasing 17% and Adjusted EBITDA increasing 31%. The combination of growth and margin expansion reflects solid execution across our Defense, Commercial, and Peru segments and the continued strength of our underlying business."
Mr. Sfadia added, "During the quarter and in recent weeks, momentum remained broad-based. Gilat Defense continued to expand its activity in both the United States and in Europe, reflecting increasing demand for advanced communications solutions that support mobility, rapid deployment, and operational continuity in complex operating environments. We introduced the Viper Ka ESA terminal, broadening our support for unmanned and autonomous missions, and we also advanced work on certifications that will position us to better support next-generation defense communications architectures.
"The announced Comtech acquisition is progressing well and is the next major step in Gilat's transformation into a scaled defense, space, and mission-critical communications technology company. The acquisition is expected to create a company with more than $700 million in pro forma annual revenues, more than double Gilat Defense revenues, expand our U.S. engineering and manufacturing footprint, and improve access to larger U.S. and allied defense and space programs.The acquisition is anticipated to close toward year-end, subject to regulatory approvals and customary closing conditions."
Mr. Sfadia concluded, "Our first-half performance, recent awards, backlog, and strong pipeline support our full-year 2026 outlook and positions us well to fully capitalize on the Comtech acquisition."
Key Recent Announcements
-- Gilat to Acquire Comtech's Satellite & Space Communications
Segment Creating a Leading Provider of Advanced Defense and Satellite
Communications Solutions
-- Leading Global Satellite Operator Awards Gilat Over $20 Million in
SkyEdge Orders
-- Gilat Receives $11 Million in U.S. Department of War Orders, Reinforcing
Role in Mission-Critical Defense Connectivity
-- Gilat Receives $43 Million of Additional Sidewinder ESA Orders from
Leading In-flight Connectivity Service Provider
-- Gilat Receives Multi-Million Dollar Order for Customized SATCOM Terminals
Supporting European Defense Communications
-- Gilat Presents Expanded Portfolio for Tactical Unmanned Platforms at
Eurosatory 2026
-- Boeing and Gilat Achieve Key In-Cabin Offerability Milestone for
Sidewinder Line-fit Multi--Orbit Solution
Conference Call Details
Gilat's management will discuss its second quarter 2026 results and business achievements and participate in a question-and-answer session:
In English:
Date: Wednesday, August 5, 2026 Start: 09:30 AM EDT / 16:30 IST
A simultaneous webcast of the conference call will be available on the Gilat website at www.gilat.com and through this link: https://www.veidan-conferencing.com/gilat
Or Dial-in:
US: 1-888-407-2553 International: +972-3-918-0609
The webcast will also be archived for a period of 30 days on the Company's website and through the link above.
In Hebrew:
Date: Thursday, August 6, 2026 Start: 10:00 AM IST
A simultaneous webcast of the conference call will be available on the Gilat website at www.gilat.com and through this link:
https://gk-biz.zoom.us/webinar/register/WN_Ij3ddmS9RqWUXweNlBeJsw
Non-GAAP Measures
The attached unaudited summary consolidated financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). To supplement the summary consolidated financial statements presented in accordance with GAAP, the Company presents non-GAAP measurements of gross profit, operating expenses, operating income, income before taxes on income, net income, Adjusted EBITDA, and earnings per share. The adjustments to the Company's GAAP results are made with the intent of providing both management and investors with a more complete understanding of the Company's underlying operational results, trends, and performance. Non-GAAP financial measures mainly exclude, if and when applicable, the effect of stock-based compensation, amortization of purchased intangibles, lease incentive amortization, other non-recurring expenses, other integration expenses, other operating expenses (income), net, and the income tax effect on the relevant adjustments.
Adjusted EBITDA is presented to compare the Company's performance to that of prior periods and evaluate the Company's financial and operating results on a consistent basis from period to period. The Company also believes this measure, when viewed in combination with the Company's financial results prepared in accordance with GAAP, provides useful information to investors to evaluate ongoing operating results and trends. Adjusted EBITDA, however, should not be considered as an alternative to operating income or net income for the period and may not be indicative of the historical operating results of the Company; nor is it meant to be predictive of potential future results. Adjusted EBITDA is not a measure of financial performance under GAAP and may not be comparable to other similarly titled measures for other companies. A reconciliation between the Company's net income and Adjusted EBITDA is presented in the attached summary consolidated financial statements.
Non-GAAP presentations of gross profit, operating expenses, operating income, income before taxes on income, net income, Adjusted EBITDA and earnings per share should not be considered in isolation or as a substitute for any of the consolidated statements of operations prepared in accordance with GAAP, or as an indication of Gilat's operating performance or liquidity.
About Gilat
Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With over 35 years of experience, we develop and deliver deep technology solutions for satellite, ground, and new space connectivity, offering next-generation solutions and services for critical connectivity across commercial and defense applications. We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world.
Together with our wholly owned subsidiaries Gilat Wavestream, Gilat DataPath, and Gilat Stellar Blu, we offer integrated, high-value solutions supporting multi-orbit constellations, Very High Throughput Satellites (VHTS), and Software-Defined Satellites $(SDS)$ via our Commercial and Defense Divisions. Our comprehensive portfolio is comprised of a software-defined platform and modems, high-performance satellite terminals, advanced Satellite On-the-Move (SOTM) antennas and Electronically Steered Antennas (ESAs), highly efficient, high-power Solid State Power Amplifiers (SSPAs) and Block Upconverters (BUCs) and includes integrated ground systems for commercial and defense markets, field services, network management software, and cybersecurity services.
Gilat's products and tailored solutions support multiple applications including government and defense, IFC and mobility, cellular backhaul, enterprise, aerospace and critical infrastructure clients all while meeting the most stringent service level requirements. For more information, please visit: https://www.gilat.com
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and can generally be identified by the use of forward-looking terminology such as "estimate," "project," "intend," "expect," "believe, " "anticipate," "plan," "may," "will," "seek," "could," "should," or similar expressions. These forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements of Gilat to differ materially from those expressed in, or implied by, such statements. These risks and uncertainties include, among others, changes in general economic, market and business conditions; failure to maintain market acceptance of Gilat's products; failure to timely develop and introduce new technologies, products and applications; rapid changes in the markets in which Gilat operates; increased competition, loss of market share or pressure on prices; loss of key OEM partners; inability to attract and retain qualified personnel; inability to protect proprietary technology; and risks associated with Gilat's international operations and its location in Israel, including those arising from regional military conflicts and geopolitical instability. For additional information regarding these and other risks and uncertainties, please refer to Gilat's filings with the U.S. Securities and Exchange Commission. Gilat undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contact:
Gilat Satellite Networks
Hagay Katz, Chief Products and Marketing Officer
PublicRelations@gilat.com
Alliance Advisors
GilatIR@allianceadvisors.com
Phone: +1 212 838 3777
__________________________________
(1) We do not provide forward-looking guidance on a GAAP basis because we are unable to reasonably provide forward-looking guidance for certain financial data, such as earnout-based expenses related to recent acquisitions. As a result, we are not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward looking data without unreasonable effort.
GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except share and per share
data)
Six months ended Three months ended
June 30, June 30,
-------------------------- -----------------------
2026 2025 2026 2025
Unaudited Unaudited
Revenues $ 233,137 $ 197,007 $ 122,663 $ 104,970
Cost of
revenues 158,231 136,682 85,406 73,043
Gross profit 74,906 60,325 37,257 31,927
Research and
development
expenses, net 23,718 23,930 11,601 12,309
Selling and
marketing
expenses 19,211 16,467 9,504 8,265
General and
administrative
expenses 22,618 13,027 12,220 6,243
Other operating
expenses
(income), net 281 3,964 (760) (574)
Total operating
expenses 65,828 57,388 32,565 26,243
Operating
income 9,078 2,937 4,692 5,684
Financial
income
(expenses),
net 3,462 (2,186) 2,167 (1,250)
Income before
taxes on
income 12,540 751 6,859 4,434
Taxes on income 841 3,083 1,288 5,396
Net income $ 13,381 $ 3,834 $ 8,147 $ 9,830
Basic earnings
per share $ 0.18 $ 0.07 $ 0.11 $ 0.17
Diluted
earnings per
share $ 0.17 $ 0.07 $ 0.10 $ 0.17
Weighted
average number
of shares used
in
computing
earnings
per share
Basic 75,766,488 57,081,120 77,007,203 57,124,568
Diluted 78,341,256 57,189,406 79,427,208 57,341,141
GILAT SATELLITE NETWORKS LTD.
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED
STATEMENTS OF INCOME
FOR COMPARATIVE PURPOSES
U.S. dollars in thousands (except share and per share
data)
Three months ended Three months ended
June 30, 2026 June 30, 2025
GAAP Adjustments (*) Non-GAAP GAAP Adjustments (*) Non-GAAP
Unaudited Unaudited
Gross profit $ 37,257 1,662 $ 38,919 $ 31,927 2,557 $ 34,484
Operating
expenses 32,565 (6,218) 26,347 26,243 (1,043) 25,200
Operating
income 4,692 7,880 12,572 5,684 3,600 9,284
Income
before
taxes on
income 6,859 7,880 14,739 4,434 3,600 8,034
Net income $ 8,147 7,491 $ 15,638 $ 9,830 2,131 $ 11,961
Basic
earnings
per share $ 0.11 $ 0.09 $ 0.20 $ 0.17 $ 0.04 $ 0.21
Diluted
earnings
per share $ 0.10 $ 0.10 $ 0.20 $ 0.17 $ 0.04 $ 0.21
Weighted average number
of shares used in
computing
earnings
per share
Basic 77,007,203 77,007,203 57,124,568 57,124,568
Diluted 79,427,208 79,924,184 57,341,141 58,041,043
(*) Adjustments reflect the effect of stock-based
compensation as per ASC 718, amortization of purchased
intangibles, other operating income, net,
other integration expenses and income tax effect on
such adjustments which is calculated using the relevant
effective tax rate.
Three months Three months
ended ended
June 30, 2026 June 30, 2025
Unaudited Unaudited
--------------- ---------------
GAAP net
income $ 8,147 $ 9,830
Gross profit
Stock-based compensation
expenses 199 228
Amortization of purchased
intangibles 1,443 2,302
Other
integration
expenses 20 27
1,662 2,557
------- -------
Operating
expenses
Stock-based compensation
expenses 1,523 1,084
Stock-based compensation
related to business
combination 4,258 (920)
Amortization of purchased
intangibles 1,103 1,269
Other operating income,
net (760) (574)
Other integration
expenses 94 184
6,218 1,043
------- -------
Taxes on
income (389) (1,469)
Non-GAAP net
income $ 15,638 $ 11,961
GILAT SATELLITE NETWORKS LTD.
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED
STATEMENTS OF INCOME
FOR COMPARATIVE PURPOSES
U.S. dollars in thousands (except share and per share
data)
Six months ended Six months ended
June 30, 2026 June 30, 2025
---------------------------------------- ----------------------------------------
Adjustments Adjustments
GAAP (*) Non-GAAP GAAP (*) Non-GAAP
Unaudited Unaudited
---------------------------------------- ----------------------------------------
Gross profit $ 74,906 3,306 78,212 $ 60,325 3,368 $ 63,693
Operating
expenses 65,828 (12,686) 53,142 57,388 (8,132) 49,256
Operating
income 9,078 15,992 25,070 2,937 11,500 14,437
Income before
taxes on
income 12,540 15,992 28,532 751 11,500 12,251
Net income $ 13,381 15,844 $ 29,225 $ 3,834 9,954 $ 13,788
======== ============ === ======= ======== ============ ========
Basic
earnings per
share $ 0.18 $ 0.21 0.39 $ 0.07 $ 0.17 $ 0.24
Diluted
earnings per
share $ 0.17 $ 0.20 0.37 $ 0.07 $ 0.17 $ 0.24
======== =========== ============ ======== =========== ========
Weighted average number of shares used in
computing earnings per share
Basic 75,766,488 75,766,488 57,081,120 57,081,120
============ ============ ============ ============
Diluted 78,341,256 78,833,628 57,189,406 58,023,137
============ ============ ============ ============
(*) Adjustments reflect the effect of stock-based
compensation as per ASC 718, amortization of purchased
intangibles, other operating expenses, net,
other integration expenses and income tax effect on
such adjustments which is calculated using the relevant
effective tax rate.
Six months ended Six months ended
June 30, 2026 June 30, 2025
Unaudited Unaudited
------------ ------------
GAAP net
income $ 13,381 $ 3,834
Gross profit
Stock-based
compensation
expenses 398 402
Amortization
of purchased
intangibles 2,871 2,902
Other
integration
expenses 37 64
------------ ------------
3,306 3,368
------------ ------------
Operating
expenses
Stock-based
compensation
expenses 3,004 1,984
Stock-based
compensation
related to
business
combination 7,000 (313)
Amortization
of purchased
intangibles 2,196 2,153
Other
operating
expenses,
net 281 3,964
Other
integration
expenses 205 344
12,686 8,132
------------ ------------
Taxes on
income (148) (1,546)
------------ ------------
Non-GAAP net
income $ 29,225 $ 13,788
=========== ===========
GILAT SATELLITE NETWORKS LTD.
SUPPLEMENTAL INFORMATION
U.S. dollars in thousands
ADJUSTED EBITDA:
Six months ended Three months ended
June 30, June 30,
2026 2025 2026 2025
-------- -------- ------------ --------
Unaudited Unaudited
------------------ ----------------------
GAAP net income $ 13,381 $ 3,834 $ 8,147 $ 9,830
Adjustments:
Financial expenses
(income), net (3,462) 2,186 (2,167) 1,250
Taxes on income (841) (3,083) (1,288) (5,396)
Stock-based
compensation
expenses 3,402 2,386 1,722 1,312
Stock-based
compensation related
to business
combination 7,000 (313) 4,258 (920)
Depreciation and
amortization (*) 10,530 10,046 5,414 6,084
Other operating
expenses (income),
net 281 3,964 (760) (574)
Other integration
expenses 242 408 114 211
-------- -------- ------------ --------
Adjusted EBITDA $ 30,533 $ 19,428 $ 15,440 $ 11,797
======= ======= ======== =======
(*) Including
amortization of
lease incentive
SEGMENT REVENUES:
Six months ended Three months ended
June 30, June 30,
2026 2025 2026 2025
-------- -------- ------------ --------
Unaudited Unaudited
------------------ ----------------------
Commercial $155,771 $133,277 $ 82,986 $ 69,057
Defense 47,890 43,004 22,463 19,993
Peru 29,476 20,726 17,214 15,920
-------- -------- ------------ --------
Total revenues $233,137 $197,007 $ 122,663 $104,970
======= ======= ======== =======
GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
June 30, December 31,
2026 2025
Unaudited Audited
----------- ----------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 144,805 $ 168,907
Short-term deposits 14,350 16,433
Restricted cash 64 88
Trade receivables, net 107,656 85,929
Contract assets 32,792 36,987
Inventories 65,490 45,430
Other current assets 34,583 37,406
--------- ---------
Total current assets 399,740 391,180
--------- ---------
LONG-TERM ASSETS:
Long-term contract assets 7,193 7,890
Severance pay funds 7,269 6,941
Deferred taxes, net 17,923 15,558
Operating lease right-of-use assets 7,510 5,922
Other long-term assets 28,696 19,871
--------- ---------
Total long-term assets 68,591 56,182
--------- ---------
PROPERTY AND EQUIPMENT, NET 74,309 75,172
--------- ---------
INTANGIBLE ASSETS, NET 48,994 53,986
--------- ---------
GOODWILL 169,534 169,534
--------- ---------
TOTAL ASSETS $ 761,168 $ 746,054
----------------------------------------- ========= =========
GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS (Cont.)
U.S. dollars in thousands
June 30, December 31,
2026 2025
--------- ---------
Unaudited Audited
----------- ----------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term loan $ 2,000 $ 2,000
Trade payables 45,443 31,614
Accrued expenses 73,352 58,878
Advances from customers and deferred
revenues 50,215 78,499
Operating lease liabilities 3,251 2,957
Other current liabilities 28,914 41,529
--------- ---------
Total current liabilities 203,175 215,477
--------- ---------
LONG-TERM LIABILITIES:
Accrued severance pay 7,818 7,508
Long-term advances from customers and
deferred revenues 71 67
Operating lease liabilities 4,364 3,102
Other long-term liabilities 1,131 19,622
--------- ---------
Total long-term liabilities 13,384 30,299
--------- ---------
SHAREHOLDERS' EQUITY:
Share capital - ordinary shares of NIS
0.2 par value 3,970 3,765
Additional paid-in capital 1,148,171 1,115,030
Accumulated other comprehensive loss (6,164) (3,768)
Accumulated deficit (601,368) (614,749)
--------- ---------
Total shareholders' equity 544,609 500,278
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 761,168 $ 746,054
----------------------------------------- ========= =========
GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Six months ended Three months ended
June 30, June 30,
--------------------- ----------------------
2026 2025 2026 2025
Unaudited Unaudited
--------------------- ----------------------
Cash flows from
operating activities:
-----------------------
Net income $ 13,381 $ 3,834 $ 8,147 $ 9,830
Adjustments required to
reconcile net income
to net cash provided by
(used in) operating
activities:
Depreciation and
amortization 10,423 9,942 5,344 6,037
Stock-based
compensation expenses 10,402 2,073 5,980 392
Accrued severance pay,
net (17) (76) (111) (54)
Deferred taxes, net (2,365) (4,233) (2,162) (6,217)
Increase in trade
receivables, net (22,202) (9,234) (7,423) (13,762)
Decrease in contract
assets 4,891 16,552 8,868 24,350
Decrease (increase) in
other assets and other
adjustments (including
short-term, long-term
and effect of exchange
rate changes on cash,
cash equivalents and
restricted cash) 1,485 11,754 11,285 (6,636)
Decrease (increase) in
inventories (20,212) 96 (20,705) 11,552
Increase (decrease) in
trade payables 13,860 (14,690) 11,409 (6,862)
Increase (decrease) in
accrued expenses 14,153 (4,587) 17,567 1,771
Decrease in advances
from customers and
deferred revenues (28,292) (15,426) (27,371) (14,330)
Increase (decrease) in
other liabilities (9,592) 2,526 (12,739) (928)
Net cash provided by
(used in) operating
activities (14,085) (1,469) (1,911) 5,143
------- -------- ------- -------
Cash flows from
investing activities:
-----------------------
Purchase of property,
equipment and
intangible assets (4,175) (4,256) (1,662) (2,766)
Investment in other
asset - (3,500) - (1,000)
Investment in
short-term deposits (14,350) - - -
Proceeds from
short-term deposits 16,433 - 16,433 -
Acquisitions of
subsidiaries, net of
cash acquired (10,000) (104,943) (10,000) -
Net cash provided by
(used in) investing
activities (12,092) (112,699) 4,771 (3,766)
------- -------- ------- -------
Cash flows from
financing activities:
-----------------------
Proceeds from long-term
loan, net of
associated costs - 58,970 - -
Repayment of long-term
loan - (750) - (750)
Proceeds from exercise
of stock options 46 - 32 -
Net cash provided by
(used in) financing
activities 46 58,220 32 (750)
------- -------- ------- -------
Effect of exchange rate
changes on cash, cash
equivalents and
restricted cash 2,005 1,116 1,759 524
------- -------- ------- -------
Increase (decrease) in
cash, cash equivalents
and restricted cash (24,126) (54,832) 4,651 1,151
Cash, cash equivalents
and restricted cash at
the beginning of the
period 168,995 120,249 140,218 64,266
------- -------- ------- -------
Cash, cash equivalents
and restricted cash at
the end of the period $144,869 $ 65,417 $144,869 $ 65,417
======= ======== ======= =======