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 Expectations1
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, 2026Start:09:30 AM EDT / 16:30 ISTA 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: 1-888-407-2553International:+972-3-918-0609The 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, 2026Start:10:00 AM ISTA 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
[email protected]
Alliance Advisors
[email protected]
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.
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except share and per share data)
Six months ended
June 30,
Three months ended
June 30,
2026 2025 2026 2025 Unaudited Unaudited Revenues$233,137 $197,007 $122,663 $104,970Cost of revenues158,231 136,682 85,406 73,043 Gross profit74,906 60,325 37,257 31,927 Research and development expenses, net23,718 23,930 11,601 12,309Selling and marketing expenses19,211 16,467 9,504 8,265General and administrative expenses22,618 13,027 12,220 6,243Other operating expenses (income), net281 3,964 (760) (574) Total operating expenses 65,828 57,388 32,565 26,243Operating income 9,078 2,937 4,692 5,684 Financial income (expenses), net3,462 (2,186) 2,167 (1,250) Income before taxes on income12,540 751 6,859 4,434 Taxes on income841 3,083 1,288 5,396 Net income$ 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 Basic75,766,488 57,081,120 77,007,203 57,124,568Diluted78,341,256 57,189,406 79,427,208 57,341,141
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 $34,484Operating expenses 32,565 (6,218) 26,347 26,243 (1,043) 25,200Operating income 4,692 7,880 12,572 5,684 3,600 9,284Income before taxes on income 6,859 7,880 14,739 4,434 3,600 8,034Net income$ 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 57,124,568Diluted 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 ended Three months 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
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 GAAP Adjustments (*) Non-GAAP GAAP Adjustments (*) Non-GAAP Unaudited Unaudited Gross profit$74,906 3,306 78,212 $60,325 3,368 $63,693Operating expenses65,828 (12,686) 53,142 57,388 (8,132) 49,256Operating income9,078 15,992 25,070 2,937 11,500 14,437Income before taxes on income12,540 15,992 28,532 751 11,500 12,251Net 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
Basic75,766,488 75,766,488 57,081,120 57,081,120Diluted78,341,256 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
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 $9,830Adjustments: Financial expenses (income), net(3,462) 2,186 (2,167) 1,250Taxes on income(841) (3,083) (1,288) (5,396)Stock-based compensation expenses3,402 2,386 1,722 1,312Stock-based compensation related to business combination7,000 (313) 4,258 (920)Depreciation and amortization (*)10,530 10,046 5,414 6,084Other operating expenses (income), net281 3,964 (760) (574)Other integration expenses242 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 $69,057Defense47,890 43,004 22,463 19,993Peru29,476 20,726 17,214 15,920 Total revenues$ 233,137 $ 197,007 $ 122,663 $ 104,970
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Six months ended
June 30,
Three months ended
June 30,
2026 2025 2026 2025 Unaudited UnauditedCash 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