Revenues Grew 20%, GAAP Operating Income Increased to
Reiterates Guidance for 2026
PETAH TIKVA,
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
Management Commentary
Mr. Sfadia added, “During the quarter, we expanded our defense footprint into additional countries and strengthened strategic commercial relationships in
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
Key Recent Announcements
Gilat Signs Strategic Multimillion Partnership with Nelco inIndia to Deploy SkyEdge IV- Gilat Awarded over
$7 Million for its New EnduroStream Solution to Support theU.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 SupportingU.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 aEuropean 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: | |
| Start: | |
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: 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: | |
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
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
Together with our wholly owned subsidiaries Gilat Wavestream, Gilat DataPath, and
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
Contact:
PublicRelations@gilat.com
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.
| CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||||||||
| Three months ended | |||||||||
| 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 | ||||||||||||||||||||||
| Three months ended | Three months ended | |||||||||||||||||||||
| GAAP | Adjustments (*) | Non-GAAP | GAAP | Adjustments (*) | Non-GAAP | |||||||||||||||||
| Unaudited | Unaudited | |||||||||||||||||||||
| Gross profit | $ | 37,649 | 1,644 | $ | 39,293 | $ | 28,398 | 810 | $ | 29,208 | ||||||||||||
| Operating expenses | 33,263 | (6,468 | ) | 26,795 | 31,145 | (7,090 | ) | 24,055 | ||||||||||||||
| Operating income (loss) | 4,386 | 8,112 | 12,498 | (2,747 | ) | 7,900 | 5,153 | |||||||||||||||
| Income (loss) before taxes on income | 5,681 | 8,112 | 13,793 | (3,683 | ) | 7,900 | 4,217 | |||||||||||||||
| Net 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 | 57,037,671 | ||||||||||||||||||
| Diluted | 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 | |||||||||||||||||||||
| 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 | |||||||
| ADJUSTED EBITDA: | |||||||
| Three months ended | |||||||
| 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 | |||||||
| 2026 | 2025 | ||||||
| Unaudited | |||||||
| Commercial | $ | 72,785 | $ | 64,220 | |||
| Defense | 25,427 | 23,011 | |||||
| 12,262 | 4,806 | ||||||
| Total revenues | $ | 110,474 | $ | 92,037 | |||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| 2026 | 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 | ||||||
| 169,534 | 169,534 | |||||||
| TOTAL ASSETS | $ | 755,756 | $ | 746,054 | ||||
| CONSOLIDATED BALANCE SHEETS (Cont.) | ||||||||
| 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 | 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 | ||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| Three months ended | ||||||||
| 2026 | 2025 | |||||||
| Unaudited | ||||||||
| Cash 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 | ||||
