Revenues Grew 20%, GAAP Operating Income Increased to $4.4 Million, Adjusted EBITDA Doubled to $15.1 Million
Reiterates Guidance for 2026
PETAH TIKVA, Israel, May 13, 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 first quarter, ended March 31, 2026.
First Quarter 2026 Financial Highlights
- Revenues of $110.5 million, compared with $92 million in Q1 2025;
- GAAP operating income of $4.4 million, compared with GAAP operating loss of $2.7 million in Q1 2025;
- Non-GAAP operating income of $12.5 million, compared with $5.2 million in Q1 2025;
- GAAP net income of $5.2 million, or $0.07 per diluted share, compared with GAAP net loss of $6 million, or $0.11 loss per diluted share, in Q1 2025;
- Non-GAAP net income of $13.6 million, or $0.18 per diluted share, compared with $1.8 million, or $0.03 per diluted share, in Q1 2025;
- Adjusted EBITDA of $15.1 million, compared with $7.6 million in Q1 2025.
Forward-Looking Expectations
Management’s financial guidance for 2026 is 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 midpoint1.
Management Commentary
Adi Sfadia, Gilat's CEO, commented: “Gilat began 2026 with strong execution and momentum across our key growth initiatives. Our first quarter results reflected the strength of our broad solutions portfolio, continued expansion in defense and commercial markets, and improving profitability.”
Mr. Sfadia added, “During the quarter, we expanded our defense footprint into additional countries and strengthened strategic commercial relationships in India. We also saw growing interest in our virtualized, software-based network solutions following the successful demonstration conducted with Amazon AWS and SES Space & Defense. In-flight connectivity demand remains robust as next-generation aviation connectivity deployments continue to scale.
We are also experiencing increased demand for our defense portable gateway solutions, driven by the growing need for resilient, location-independent communications capabilities in contested operational environments. In parallel, we introduced a new category of high-power solid-state power amplifiers designed to replace traditional TWTAs across both defense and commercial applications.
Adoption of LEO and multi-orbit architectures continues to drive demand for electronically steered antennas, aligning well with our ESA portfolio strategy and creating additional growth opportunities for Gilat.”
Mr. Sfadia concluded, “Looking ahead, our backlog and pipeline remain strong. Based on our current visibility and execution confidence, we are reaffirming our full-year outlook for 2026. In addition, supported by our strong balance sheet and cash position, we continue to actively evaluate strategic opportunities to accelerate growth and further strengthen our market position.”
Key Recent Announcements
- Gilat Signs Strategic Multimillion Partnership with Nelco in India to Deploy SkyEdge IV
- Gilat Awarded over $7 Million for its New EnduroStream Solution to Support the U.S. Department of War
- Gilat Defense, AWS, SES Space & Defense and WAVE Consortium Demonstrate Virtualized SATCOM Gateway Modem Architecture at Satellite 2026
- Gilat Receives Approximately $6 Million in Orders Supporting U.S. Army Global Communications Operations
- Gilat Secures Multi-Million Dollar IFC Order to Power Commercial Aviation Connectivity
- Gilat Demonstrates 5G NTN End-to-End Connectivity over GEO Satellite
- Gilat Receives $39 Million in Orders for Sidewinder ESA Terminals
- Gilat Receives Over $16 Million Order to Supply SATCOM Systems to a European Ministry of Defense
Conference Call Details
Gilat’s management will discuss its first quarter 2026 results and business achievements and participate in a question-and-answer session:
In English:
Date:Wednesday, May 13, 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:International:
1-888-407-2553
+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:Start:
Thursday, May 14, 2026
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_6i326qdWSvSx8NMDdM3QIw
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 (SSPA) and Block Upconverters (BUC) 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
Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words “estimate”, “project”, “intend”, “expect”, “believe” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to Gilat’s products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat’s products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect the Company’s proprietary technology and risks associated with Gilat’s international operations and its location in Israel, including those related to the hostilities between Israel and Iran and the Hezbollah in Lebanon. For additional information regarding these and other risks and uncertainties associated with Gilat’s business, reference is made to Gilat’s reports filed from time to time with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements for any reason.
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 (LOSS)
U.S. dollars in thousands (except share and per share data)
Three months ended
March 31,
2026
2025
Unaudited Revenues $110,474 $92,037 Cost of revenues 72,825 63,639 Gross profit 37,649 28,398 Research and development expenses, net 12,117 11,621 Selling and marketing expenses 9,707 8,202 General and administrative expenses 10,398 6,784 Other operating expenses, net 1,041 4,538 Total operating expenses 33,263 31,145 Operating income (loss) 4,386 (2,747) Financial income (expenses), net 1,295 (936) Income (loss) before taxes on income 5,681 (3,683) Taxes on income (447) (2,313) Net income (loss) $ 5,234 $ (5,996) Earnings (losses) per share (Basic and Diluted) $ 0.07 $ (0.11) Weighted average number of shares used in computing earnings (losses) per share Basic 74,525,773 57,037,671 Diluted 77,188,106 57,037,671
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME (LOSS)
FOR COMPARATIVE PURPOSES
U.S. dollars in thousands (except share and per share data)
Three months ended Three months ended March 31, 2026 March 31, 2025 GAAP Adjustments (*) Non-GAAP GAAP Adjustments (*) Non-GAAP Unaudited Unaudited Gross profit $37,649 1,644 $39,293 $28,398 810 $29,208Operating expenses 33,263 (6,468) 26,795 31,145 (7,090) 24,055Operating income (loss) 4,386 8,112 12,498 (2,747) 7,900 5,153Income (loss) before taxes on income 5,681 8,112 13,793 (3,683) 7,900 4,217Net income (loss) 5,234 8,353 13,587 (5,996) 7,823 1,827 Earnings (losses) per share (Basic and Diluted) $0.07 $0.11 $0.18 $(0.11) $0.14 $0.03 Weighted average number of shares used in computing earnings (losses) per share Basic 74,525,773 74,525,773 57,037,671 57,037,671Diluted 77,188,106 77,265,072 57,037,671 58,005,232 (*) 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.
Three months ended Three months ended March 31, 2026 March 31, 2025 Unaudited Unaudited GAAP net income (loss) $5,234 $(5,996) Gross profit Stock-based compensation expenses 199 173 Amortization of purchased intangibles 1,428 600 Other integration expenses 17 37 1,644 810 Operating expenses Stock-based compensation expenses 1,481 901 Stock-based compensation related to business combination 2,742 607 Amortization of purchased intangibles 1,093 884 Other operating expenses, net 1,041 4,538 Other integration expenses 111 160 6,468 7,090 Taxes on income 241 (77) Non-GAAP net income $13,587 $1,827
SUPPLEMENTAL INFORMATION
U.S. dollars in thousands
ADJUSTED EBITDA: Three months ended
March 31,
2026
2025
Unaudited GAAP net income (loss)$5,234 $(5,996)Adjustments: Financial expenses (income), net (1,295) 936 Taxes on income 447 2,313 Stock-based compensation expenses 1,680 1,074 Stock-based compensation related to business combination 2,742 607 Depreciation and amortization (*) 5,116 3,962 Other operating expenses, net 1,041 4,538 Other integration expenses 128 197 Adjusted EBITDA$15,093 $7,631 (*) Including amortization of lease incentive SEGMENT REVENUES: Three months ended
March 31,
2026
2025
Unaudited Commercial$72,785 $64,220 Defense 25,427 23,011 Peru 12,262 4,806 Total revenues$ 110,474 $ 92,037
2025
Unaudited Audited ASSETS CURRENT ASSETS: Cash and cash equivalents $140,154 $168,907 Short-term deposits 30,860 16,433 Restricted cash 64 88 Trade receivables, net 100,632 85,929 Contract assets 41,660 36,987 Inventories 44,794 45,430 Other current assets 46,639 37,406 Total current assets 404,803 391,180 LONG-TERM ASSETS: Long-term contract assets 7,193 7,890 Severance pay funds 6,825 6,941 Deferred taxes 15,761 15,558 Operating lease right-of-use assets 5,349 5,922 Other long-term assets 19,877 19,871 Total long-term assets 55,005 56,182 PROPERTY AND EQUIPMENT, NET 74,962 75,172 INTANGIBLE ASSETS, NET 51,452 53,986 GOODWILL 169,534 169,534 TOTAL ASSETS $755,756 $746,054 GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS (Cont.)
U.S. dollars in thousands
March 31, December 31, 2026
2025
Unaudited Audited LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities of long-term loan $2,000 $2,000 Trade payables 33,776 31,614 Accrued expenses 55,452 58,878 Advances from customers and deferred revenues 77,476 78,499 Operating lease liabilities 2,620 2,957 Other current liabilities 28,915 41,529 Total current liabilities 200,239 215,477 LONG-TERM LIABILITIES: Accrued severance pay 7,485 7,508 Long-term advances from customers and deferred revenues 180 67 Operating lease liabilities 2,849 3,102 Other long-term liabilities 8,847 19,622 Total long-term liabilities 19,361 30,299 SHAREHOLDERS' EQUITY: Share capital - ordinary shares of NIS 0.2 par value 3,967 3,765 Additional paid-in capital 1,146,418 1,115,030 Accumulated other comprehensive loss (4,714) (3,768)Accumulated deficit (609,515) (614,749) Total shareholders' equity 536,156 500,278 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $755,756 $746,054
U.S. dollars in thousands
Three months ended
March 31,
2026
2025
UnauditedCash flows from operating activities: Net income (loss)$5,234 $(5,996)Adjustments required to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 5,079 3,905 Stock-based compensation expenses 4,422 1,681 Accrued severance pay, net 94 (22)Deferred taxes, net (203) 1,984 Decrease (increase) in trade receivables, net (14,779) 4,528 Increase in contract assets (3,977) (7,798)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) (9,800) 18,390 Decrease (increase) in inventories 493 (11,456)Increase (decrease) in trade payables 2,451 (7,828)Decrease in accrued expenses (3,414) (6,358)Decrease in advances from customers and deferred revenues (921) (1,096)Increase in other liabilities 3,147 3,454 Net cash used in operating activities (12,174) (6,612) Cash flows from investing activities: Purchase of property, equipment and intangible assets (2,513) (1,490)Investment in other asset - (2,500)Investments in short-term deposits (14,350) - Acquisitions of subsidiary, net of cash acquired - (104,943)Net cash used in investing activities (16,863) (108,933) Cash flows from financing activities: Proceeds from long-term loan, net of associated costs - 58,970 Proceeds from exercise of stock options 14 - Net cash provided by financing activities 14 58,970 Effect of exchange rate changes on cash, cash equivalents and restricted cash 246 592 Decrease in cash, cash equivalents and restricted cash (28,777) (55,983) Cash, cash equivalents and restricted cash at the beginning of the period 168,995 120,249 Cash, cash equivalents and restricted cash at the end of the period$140,218 $64,266